Accounting Policies of Jay Shree Tea & Industries Ltd. Company
Mar 31, 2018
NOTES to financial statements for the year ended 31st March, 2018
Note 1. Corporate Information
Jay Shree Tea & Industries Limited (''the Company'') is a public limited company domiciled in India and is incorporated under the provisions of the Companies Act. Its shares are listed on three stock exchanges in India. The Company is engaged in manufacture of tea and chemical & fertilisers.
The registered office of the Company is located at "Industry House", 10, Camac Street, Kolkata - 700 017, West Bengal, India.
The standalone financial statements were approved and authorised for issue in accordance with the resolution of the Company''s Board of Directors on 29 May, 2018.
Note 2. Basis of Preparation
The financial statements of the Company for the year ended 31 March, 2018 have been prepared in accordance with accounting principles generally accepted in India, including the Ind AS specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
For all periods up to and including the year ended 31 March, 2017, the Company prepared its financial statements in accordance with accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). These financial statements for the year ended 31 March, 2018 are the first the Company has prepared in accordance with Indian Accounting Standards ("Ind AS"). Refer to note 37 for information on how the Company adopted Ind AS.
The financial statements have been prepared on a historical cost basis, except for certain assets and liabilities which have been measured affair value
⢠Certain financial assets and liabilities which are measured at fair value/amortised cost
⢠Certain biological assets (including unplucked green leaves) which are measured at fair value less cost to sell.
These financial statements are the first financial statements of the Company under Ind AS. Refer Note 38 for an explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows.
Note 3. Summary of Significant Accounting Policies
3.1. Current and Non-Current classification
All 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 the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities. Deferred Tax assets and liabilities are classified as non-current only.
3.2. Foreign and Foreign Currencies Functional and presentation currency
The standalone financial statements are presented in INR, the functional currency of the Company. Items included in the financial statements of the Company are recorded using the currency of the primary economic environment in which the Company operates (the ''functional currency'').
Transaction and balances
Transactions in foreign currencies are initially recorded by the Company at their respective functional currency spot rates at the date the transaction first qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date.
Exchange differences arising on settlement or translation of monetary items are recognised in profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).
3.3. Property, Plant and Equipment
The Company has elected to use the fair value of certain items of property, plant and equipment on the date of transition and designate the same as deemed cost on the date of transition. For the remaining assets, the Company has applied Ind AS retrospectively, from the date of their acquisition.
Property, plant and equipment are carried at cost of acquisition, less accumulated depreciation and accumulated impairment, if any. Cost comprises purchase price and directly attributable cost of bringing the asset to its working condition for the intended use.
Bearer Plants which is used in the production or supply of agriculture produce and expected to bear produce for more than a period of twelve months are capitalized as a part of Property, Plant & Equipment. The cost of Bearer Plant includes all cost incurred till the plants are ready for commercial harvest. Bearer Plants are depreciated from the date when they are ready for commercial harvest.
Depreciation on property, plant and equipment assets other than land is provided on the Straight Line Method to allocate their cost, net of their residual values on the basis of useful lives prescribed in the Schedule II of the Companies Act, 2013. In respect of the following assets, useful lives different from Schedule II have been considered on the basis of technical evaluation, as under:-
⢠In case of asset "Plucking/Pruning/Power Spraying Machines", depreciation is provided on Straight Line Method at the rates determined considering the useful lives of 5 years which is based on internal assessment and the management believes that the useful lives as considered above best represent the period over which the respective assets shall be expected in use.
⢠Depreciation on Bearer Plants has been provided on Straight Line Basis at the rates determined considering useful lives of tea bushes of 45-70 years. The Residual Value in case of Bearer Plants has been considered as 1 % of Original Cost.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.
3.4. Capital Work in Progress
Capital Work-in-progress is stated at cost which includes expenses incurred during construction period, interest on amount borrowed for acquisition of qualifying assets and other expenses incurred in connection with project implementation in so far as such expenses relate to the period prior to the commencement of commercial production.
3.5. Investment Properties
Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any.
Though the Company measures investment property using cost based measurement, the fair value of investment property is disclosed in the notes.
3.6. Leases
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases.
For assets acquired under operating lease, rental payable are recognised as an expense in the statement of profit and loss. Assets acquired under finance lease are capitalized at lower of the fair value and the present value of minimum lease payment. Lease income from operating leases is recognised in the statement of profit and loss over the period of lease.
For arrangements entered into prior to 1 April, 2016, the Company has determined whether the arrangement contain lease on the basis of facts and circumstances existing on the date of transition.
3.7. Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost until the asset is ready for its intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred
3.8. Inventories
Raw materials in the form of harvested tea leaves, produced from own gardens are measured at fair value for the purpose of valuation of made tea.
Raw materials (including purchased tea leaves), Stores & Spare parts, Finished Goods and Stock in trade stated at the lower of cost and estimated net realisable value. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to their present location and condition and includes appropriate overheads (in case of Finished Goods). Cost is determined on weighted average basis. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold are at or above cost.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.
3.9. Biological Assets
Tea leaves growing on tea bushes are measured at fair value less cost to sell with changes in fair value recognised in Statement of Profit and Loss.
3.10. Cash and Cash Equivalents
Cash and cash equivalent comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
3.11. Trade Receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment, if any.
3.12. Equity Investments in subsidiaries, associates and joint ventures
Investments representing equity interest in subsidiaries, associates and joint ventures are carried at cost
3.13. Impairment of non-financial assets
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating units'' (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.
3.14. Government Grants
Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants/subsidy will be received.
When the grant or subsidy from the Government relates to revenue, it is accrued and shown as income in the period in which the right to receive grant is established.
Government grants relating to the acquisition/construction of property, plant and equipment are included in non-current liabilities as deferred government grant and are credited to profit or loss on a straight-line basis over the expected lives of the related assets and presented within other income.
3.15. Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of sales return, sales tax/ value added tax/GST, trade allowances and amount collected on behalf of third parties.
Excise duty is a liability of the manufacturer which forms part of the cost of production, irrespective of whether the goods are sold or not. Since the recovery of excise duty flows to Company on its own account, revenue includes excise duty.
The specific recognition criteria described below must also be met before revenue is recognised: Sale of goods
Revenue from sale of goods is recognised when all the significant risks and rewards of ownership of the goods have passed to the buyer, on delivery of the goods or as per buyer''s instruction.
Sale of services
Revenue from services rendered is recognised as the services are rendered and is booked based on agreements/ arrangements with the concerned parties.
Interest Income
Interest Income is recognised on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income from debt instruments is recognised using the effective interest rate method.
Dividends
Dividend income is recognised in the statement of profit and loss only when the right to receive payment is established, which is generally when shareholders approve the dividend
3.16. Employee Benefits Short term Employees Benefits:
The undiscounted amount of short term employee benefit expected to be paid in exchange for the services rendered by employee is recognized during the period when the employee renders the service. This benefit includes salary, wages, short term compensatory absences and bonus.
Long Term Employee Benefits:
Defined Contribution Scheme: This benefit includes contribution to Superannuation Scheme, ESIC (Employees'' State Insurance Corporation) and Provident Fund Schemes. The contribution is recognized during the period in which the employee renders service.
Defined Benefit Scheme: For defined benefit scheme the cost of providing benefit is determined using the projected unit credit method with actuarial valuation being carried out at each balance sheet date. The retirement benefit obligation recognized in the Balance Sheet represents value of defined benefit obligation as reduced by the fair value of planned assets. Actuarial gains and losses are recognized in full in Other Comprehensive Income during the period in which they occur.
In case of certain employees, the employer-established provident fund trusts are treated as Defined Benefit Plans since the Company is obligated to meet the interest shortfall, if any, with respect to covered employees.
Other Long Term Benefits: Long term compensated absence is provided for on the basis of an actuarial valuation, using the Projected Unit Credit Method as at the date of Balance Sheet.
3.17. Taxation
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Deferred tax is provided using the balance sheet method on deductible temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
⢠When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
⢠In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:
⢠When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
⢠In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
Current and Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current and Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.
Minimum alternate tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax for the year. The deferred tax asset is recognised for MAT credit available only to the extent that it is probable that the concerned company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the company recognizes MAT credit as an asset, it is created by way of credit to the Statement of Profit and Loss and shown as part of deferred tax asset. The company reviews the "MAT credit entitlement" asset at each reporting date and writes down the asset to the extent that it is no longer probable that it will pay normal tax during the specified period.
3.18. Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
The chief operating decision maker is responsible for allocating resources and assessing performance of the operating segments and has been identified as the Managing Director of the Company.
As per Ind AS 108 if a financial report contains both the consolidated financial statements of a parent that is within the scope of this Indian Accounting Standard as well as the parent''s separate financial statements, segment information is required only in the consolidated financial statements. Accordingly the company has presented segment only for consolidated financial statements.
3.19. Earnings per Share
Basic Earnings per Share is 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. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
3.20. Provisions and Contingencies
A provision is recognized when an enterprise has a present obligation (legal or constructive) as a result of past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the liability. The expense relating to a provision is presented in the statement of profit and loss.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. The Company does not recognize a contingent liability but discloses its existence in the financial statements.
3.21. Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial Assets
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
Subsequent measurement
Debt instruments at amortised cost
A ''debt instrument'' is measured at the amortised cost if both the following conditions are met:
⢠The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
⢠Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. The EIR amortisation is included in finance income in the Statement of Profit and Loss.
Equity investments
All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at Fair Value Through Profit and Loss (FVTPL). For all other equity instruments, the Company makes an irrevocable election to present in Other Comprehensive Income (OCI) subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.
If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to Statement of Profit and Loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Company''s balance sheet) when:
⢠The rights to receive cash flows from the asset have expired, or
⢠The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''pass-through'' arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Impairment of financial assets
In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:
⢠Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, trade receivables and bank balance
⢠Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 11 and Ind AS 18 (referred to as ''contractual revenue receivables'' in these financial statements)
The Company follows ''simplified approach'' for recognition of impairment loss allowance on Trade receivables or contract revenue receivables.
The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original Effective Interest Rate (EIR). Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date.
ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the Statement of Profit and Loss. This amount is reflected under the head ''other expenses'' (or ''other income'') in the Statement of Profit and Loss.
Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings or payables.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
Subsequent measurement Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the Statement of Profit and Loss.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.
3.22. Fair Value measurement
The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
⢠In the principal market for the asset or liability, or
⢠In the absence of a principal market, in the most advantageous market for the asset or liability
A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
⢠Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities
⢠Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
⢠Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
3.23. Standard issued but not yet effective
Ministry of Corporate Affairs ("MCA") through Companies (Indian Accounting Standards) Amendment Rules, 2018 has notified the following amendments to Ind AS''s which the Company has not applied as they are effective for annual periods beginning on or after 1 April, 2018:
Ind AS 115 - Revenue from Contracts with Customers
The Company is currently evaluating the impact of implementation of Ind AS 115 " Revenue from Contracts with Customers" which is applicable to it w.e.f 01.04.2018. However, based on the evaluation done so far and based on the arrangement that the Company has with its customers for sale of its products, the implementation of Ind AS 115 will not have any significant recognition and measurement impact. However, there will be additional presentation and disclosure requirement, which will be provided in the next year''s financial statements.
Ind AS 21 - The Effect of Changes in Foreign Exchange Rates
The amendment clarifies on the accounting of transactions that include the receipt or payment of advance consideration in a foreign currency. The appendix explains that the date of the transaction, for the purpose of determining the exchange rate, is the date of initial recognition of the non-monetary prepayment asset or deferred income liability. If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt. The Company is evaluating the impact of this amendment on its financial statements.
Ind AS 12 - Income Taxes
The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount. Entities are required to apply the amendments retrospectively. However, on initial application of the amendments, the change in the opening equity of the earliest comparative period may be recognised in opening retained earnings (or in another component of equity, as appropriate), without allocating the change between opening retained earnings and other components of equity. Entities applying this relief must disclose that fact. These amendments are effective for annual periods beginning on or after 1 April, 2018. These amendments are not expected to have any impact on the Company as the Company has no deductible temporary differences or assets that are in the scope of the amendments.
Ind AS 40 - Investment Property
The amendments clarify when an entity should transfer property, including property under construction or development into, or out of investment property. The amendments state that a change in use occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in use. A mere change in management''s intentions for the use of a property does not provide evidence of a change in use.
Entities should apply the amendments prospectively to changes in use that occur on or after the beginning of the annual reporting period in which the entity first applies the amendments. An entity should reassess the classification of property held at that date and, if applicable, reclassify property to reflect the conditions that exist at that date. Retrospective application in accordance with Ind AS 8 is only permitted if it is possible without the use of hindsight.
Ind AS 28 - Investments in Associates and Joint ventures
Clarification that measuring investees at fair value through profit or loss is an investmentâby investment choice:
⢠An entity that is a venture capital organisation, or other qualifying entity, may elect, at initial recognition on an investment-by-investment basis, to measure its investments in associates and joint ventures at fair value through profit or loss
⢠If an entity, that is not itself an investment entity, has an interest in an associate or joint venture that is an investment entity, the entity may, when applying the equity method, elect to retain the fair value measurement applied by that investment entity associate or joint venture to the investment entity associate''s or joint venture''s interests in subsidiaries. This election is made separately for each investment entity associate or joint venture, at the later of the date on which: (a) the investment entity associate or joint venture is initially recognised; (b) the associate or joint venture becomes an investment entity; and (c) the investment entity associate or joint venture first becomes a parent.
3.24. Rounding off amounts
All amounts disclosed in the standalone Financial Statements and notes have been rounded off to the nearest Lakhs (with two places of decimal) as per the requirement of Schedule III, unless otherwise stated.
Mar 31, 2017
i. Convention
The financial statements have been prepared in accordance with applicable Accounting Standards in India and in accordance with the relevant provisions of the Companies Act, 2013. A summary of important accounting policies which have been applied consistently is set out below.
ii. 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 the 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.
iii. Basis of Accounting
The financial statements have been prepared in accordance with historical cost convention. All income and expenses, unless specifically stated otherwise, have been accounted for on accrual basis.
iv. Change in Accounting Policy
a) Accounting for Proposed Dividend
As per the requirements of AS-4 (Revised with effective from 1st April, 2016) on "Contingencies and events occurring after the Balance Sheet date" proposed final dividend including distribution tax are recognized as liability in the period in which they are approved by the shareholders in the General Meeting unlike requirement of recognizing the same as liability in the period to which it relates. Had the Company continued with its current practice, surplus in the statement of Profit and Loss would have been lower Rs.156.14 lakh with a corresponding increase in the provision.
b) Bearer Plant Accounting
As per the requirement of AS - 10 (Revised with effective from 1st April, 2016) on
"Property, Plant & Equipment", expenditure incurred on "Bearer Plants" have been capitalized was hitherto charged to statement of Profit and Loss in case of existing area of cultivation. The impact of change in Accounting Policy has been given in Note No. 2.10.4.
v. Recognition of Revenue & Expenses
a) All revenue and expenses are accounted for on accrual basis except as otherwise stated.
b) Sales are net of returns, Sales Tax/VAT and trade discount.
vi. Government Grants
a) Government grants available to the company are considered for inclusion in accounts where there is reasonable assurance that the company will comply with the conditions attached to them and where such benefits have been earned by the company and it is reasonably certain that the ultimate collection will be made.
b) Government Grants related to specific assets are adjusted with value of fixed assets.
c) Government Grants in the nature of Promoter''s Contribution towards fixed assets are credited to Capital Reserve.
d) Government Grant related to revenue items are adjusted with the related expenditure/ taken in income.
vi i. Property, Plant and Equipment & Depreciation
A. Tangible Fixed Assets
a) Tangible Fixed assets are stated at cost less accumulated depreciation and accumulated impairment loss, if any.
b) Bearer Plants which is used in the production or supply of Agriculture produce and expected to bear produce for more than a period of twelve months are capitalized as a part of Property, Plant & Equipment. The cost of Bearer Plant includes uprooting cost, replantation cost and upkeep expenses of young bearer plants.
c) Depreciation on tangible fixed assets other than land is provided on the "Straight Line Method" at the rates determined based on useful lives of respective assets as prescribed in the Schedule II of the Companies Act, 2013 except (d) and (e) below.
d) In case of asset "Plucking/Pruning/ Power Spraying Machines", depreciation is provided on Straight Line Method at the rates determined considering the useful lives of 5 years which is based on internal assessment and the management believes that the useful lives as considered above best represent the period over which the respective assets shall be expected in use.
e) Depreciation on Bearer Plants is provided on "Straight Line Basis" at the rates determined considering useful lives of tea bushes of 45-70 years. The Residual Value in case of Bearer Plants has been considered as 1% of Original Cost.
f) Leasehold Land (Others) is amortized over the period of lease.
B. Intangible Fixed Assets
Intangible Assets are stated at cost on initial recognition after which the same are stated at cost less accumulated amortization and accumulated impairment loss, if any.
C. Capital Work in Progress
Capital Work-in-progress is stated at cost which includes expenses incurred during construction period, interest on amount borrowed for acquisition of qualifying assets and other expenses incurred in connection with project implementation in so far as such expenses relate to the period prior to the commencement of commercial production
D. Intangible assets under development
Intangible assets under development is stated at cost which includes expenses incurred during development period and all other expenses incurred in connection with development of Intangible Assets in so far as such expenses relate to the period prior to the getting the assets ready for use.
viii. Impairment of Assets
Impairment of Assets are assessed at each Balance Sheet date for each cash generating unit if any indicators of impairment exists and the same is assessed and provided for in accordance with the Accounting Standard 28. A previously recognized impairment loss is periodically assessed.
ix. Leases
For assets acquired under operating lease, rental payable are recognized as an expense in the statement of profit and loss. Assets acquired under finance lease are capitalized at lower of the fair value and the present value of minimum lease payment. Lease income from operating leases is recognized in the statement of profit and loss over the period of lease.
x. Investments
a) Investments which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments. The portion of long term investments expected to be realized within twelve months after the reporting date are disclosed under current investments.
b) On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees & duties.
c) Long-Term Investments are stated at cost. Provision for diminution is made if the decline in value, in the opinion of the management, is other than temporary.
d) Current Investments, other than the portion of long term investments disclosed under current investments, are stated at lower of cost or fair value.
xi. Inventories
Inventories are valued at cost or net realizable value whichever is lower. Cost is determined on weighted average/FIFO basis. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to their present location and condition and includes appropriate overheads. Provision is made for obsolete and slow moving stocks, wherever necessary.
Net realizable value is the estimated selling prices in the ordinary course of business less estimated cost necessary to make the sale. Materials and other items held for use in production of inventories are not written down below the cost if the finished products in which they will be incorporated are expected to be sold at or above cost.
Inventories do not include spare parts, servicing equipments and stand by equipments which meet the definition of Property, Plant & Equipment as per AS - 10. Such item are accounted for in accordance with Accounting Standard (AS - 10), Property, Plant & Equipment.
xii. Employment Benefits
a) Short term Employees Benefits
The undiscounted amount of short term employee benefit expected to be paid in exchange for the services rendered by employee is recognized during the period when the employee render the service. This benefit includes salary, wages, short term compensatory absences and bonus.
b) Long Term Employee Benefits
i) Defined Contribution Scheme:
This benefit includes contribution to Superannuation Scheme, ESIC (Employees'' State Insurance Corporation) and Provident Fund Schemes. The contribution is recognized during the period in which the employee renders service.
ii) Defined Benefit Scheme: For defined benefit scheme the cost of providing benefit is determined using the projected unit credit method with actuarial valuation being carried out at each balance sheet date. The retirement benefit obligation recognized in the Balance Sheet represents value of defined benefit obligation as reduced by the fair value of planned assets. Actuarial gains and losses are recognized in full during the period in which they occur.
iii) Other Long Term Benefits: Long term compensated absence is provided for on the basis of an actuarial valuation, using the Projected Unit Credit Method as at the date of Balance Sheet.
xiii. Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost until the asset is ready for its intended use. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred.
xiv. Foreign Currency Transactions
Transactions in foreign currencies are recorded at exchange rates prevailing on the date of the transaction. Monetary items denominated in foreign currency are restated at the exchange rate prevailing on the Balance Sheet date. Foreign currency non-monetary items carried in terms of historical cost are reported using the exchange rate at the date of the transactions. Exchange differences arising on settlement of transactions and/or restatements are dealt with in the statement of profit and loss.
Exchange difference arising on reporting / settlement of long term foreign currency monetary items (other than related to acquisition of depreciable Fixed Assets) at rates different from those at which they were initially recorded during the period or reported in previous financial statement which were until now being recognized in the statement of Profit & Loss are now being accumulated in "Foreign Currency Monetary Items Translation Difference Account" and amortized in the statement of Profit & Loss over the remaining life of the long term foreign currency monetary items.
xv. Derivative Transactions
The Company uses derivative financial instruments such as forward exchange contracts, currency swap etc. to hedge its risks associated with foreign currency fluctuations relating to the underlying transactions, highly probable forecast transactions and firm commitments. In respect of Forwards Exchange Contracts with underlying transactions, the premium or discount arising at the inception of such contract is amortized as expense or income over the life of 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 statement. Any profit or losses arising on cancellation of derivative instruments are recognized as income or expense for the period.
xvi. Taxes on Income
Current tax is determined on the basis of the amount of tax payable for the year under Income Tax Act, 1961 and Agriculture Income Tax of the respective states. Deferred tax is calculated at the applicable tax rate and is recognized on timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax assets subject to consideration of prudence, are recognized and carried forward only to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Tax Credit for Minimum Alternate Tax (MAT) is recognized when there is a convincing evidence of its reliability against future tax liability.
xvi. Proposed Dividend
Dividend recommended/declared after the Balance Sheet Date but before the Financial Statements are approved by Shareholders in the General Meeting are not recognized as a liability at the Balance Sheet Date because no obligation exists at the Balance Sheet Date. Such Dividend is disclosed in the Notes.
xvii. Provisions, Contingent Liabilities & Contingent Assets
Provisions are recognized in respect of present obligations arising out of past events where there are reliable estimates of the probable outflow of resources. Contingent liabilities are the possible obligation of the past events, the existence of which will be confirmed only by the occurrence or non-occurrence of a future event. These are not provided for but are disclosed by way of Notes on Accounts. Contingent Assets are not provided for or disclosed.
Mar 31, 2014
I. Convention
The financial statements have been prepared in accordance with
applicable Accounting Standards in India and in accordance with the
relevant provisions of the Companies Act, 1956. A summary of important
accounting policies which have been applied consistently is set out
below.
ii. 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 the
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.
iii. Basis of Accounting
The financial statements have been prepared in accordance with
historical cost convention. All income and expenses, unless
specifically stated otherwise, have been accounted for on accrual
basis.
iv. Recognition of Revenue & Expenses
a) All revenue and expenses are accounted for on accrual basis except
as otherwise stated.
b) Sales are net of returns, Sales Tax/VAT and trade discount.
v. Government Grants
a) Government Grants related to specific assets are adjusted with value
of fixed assets.
b) Government Grants in the nature of Promoter''s Contribution towards
fixed assets are credited to Capital Reserve.
c) Government Grant related to revenue items are adjusted with the
related expenditure/taken in income.
vi. Fixed Assets & Depreciation / Amortization
A. Tangible Fixed Assets :
a) Fixed assets are stated at cost less accumulated depreciation and
accumulated impairment loss, if any.
b) Depreciation on all assets, other than vehicles, is provided on the
"Straight Line Method", and on vehicles on the "Written Down Value
Method" in the manner and at the rates specified in Schedule XIV to the
Companies Act, 1956.
c) Items of machinery spares to be used in connection with an item of
fixed asset are amortized over the useful life of the asset.
d) Leasehold Land (Others) is amortized over the period of lease.
B. Intangible Fixed Assets : Intangible Assets are stated at cost on
initial recognition after which the same are stated at cost less
accumulated amortization and accumulated impairment loss, if any.
C. Capital Work in progress : Capital Work-in-progress is stated at
cost which includes expenses incurred during construction period,
interest on amount borrowed for acquisition of qualifying assets and
other expenses incurred in connection with project implementation in so
far as such expenses relate to the period prior to the commencement of
commercial production.
D. Intangible assets under development : Intangible assets under
development is stated at cost which includes expenses incurred during
development period and all other expenses incurred in connection with
development of Intangible Assets in so far as such expenses relate to
the period prior to the getting the assets ready for use.
vii. Impairment of Assets
Impairment of Assets are assessed at each Balance Sheet date for each
cash generating unit if any indicators of impairment exists and the
same is assessed and provided for in accordance with the Accounting
Standard 28. A previously recognized impairment loss is periodically
assessed.
viii. Leases
For assets acquired under operating lease, rental payable are
recognised as an expense in the statement of profit & loss. Assets
acquired under finance lease are capitalized at lower of the fair value
and the present value of minimum lease payment. Lease income from
operating leases is recognised in the statement of profit and loss over
the period of lease.
ix. Investments
a) Investments which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments. Te portion of long-term
investments expected to be realized within twelve months after the
reporting date are disclosed under current investments.
b) On initial recognition, all investments are measured at cost. Te
cost comprises purchase price and directly attributable acquisition
charges such as brokerage, fees & duties.
c) Long-Term Investments are stated at cost. Provision for diminution
is made if the decline in value, in the opinion of the management, is
other than temporary.
d) Current Investments, other than the portion of long term investments
disclosed under current investments, are stated at lower of cost or
fair value.
x. Inventories
Inventories are valued at cost or net realizable value whichever is
lower. Cost is determined on weighted average/ FIFO basis. Cost
comprises expenditure incurred in the normal course of business in
bringing such inventories to their present location and condition and
includes appropriate overheads. Provision is made for obsolete and slow
moving stocks, wherever necessary.
Net realizable value is the estimated selling prices in the ordinary
course of business less estimated cost necessary to make the sale.
Materials and other items held for use in production of inventories are
not written down below the cost if the finished products in which they
will be incorporated are expected to be sold at or above cost.
xi. Employment Benefits
a) Short term Employees Benefits
The undiscounted amount of short term employee benefit expected to be
paid in exchange for the services rendered by employee is recognized
during the period when the employee render the service. Tis benefit
includes salary, wages, short term compensatory absences and bonus.
b) Long Term Employee Benefits
i) Defined Contribution Scheme : Tis benefit includes contribution to
Superannuation Scheme, ESIC (Employees'' State Insurance Corporation)
and Provident Fund Schemes. Te contribution is recognized during the
period in which the employee renders service.
ii) Defined Benefit Scheme : For defined benefit scheme the cost of
providing benefit is determined using the projected unit credit method
with actuarial valuation being carried out at each balance sheet date.
Te retirement benefit obligation recognized in the Balance Sheet
represents value of defined benefit obligation as reduced by the fair
value of planned assets. Actuarial gains and losses are recognized in
full during the period in which they occur.
iii) Other Long Term Benefits : Long-term compensated absence is
provided for on the basis of an actuarial valuation, using the
Projected Unit Credit Method as at the date of Balance Sheet.
xii. Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
part of the cost until the asset is ready for its intended use. A
qualifying asset is an asset that necessarily requires a substantial
period of time to get ready for its intended use. Other borrowing costs
are recognized as an expense in the period in which they are incurred.
xiii. Foreign Currency Transactions
Transactions in foreign currencies are recorded at exchange rates
prevailing on the date of the transaction. Monetary items denominated
in foreign currency are restated at the exchange rate prevailing on the
Balance Sheet date. Foreign currency non-monetary items carried in
terms of historical cost are reported using the exchange rate at the
date of the transactions. Exchange differences arising on settlement of
transactions and/or restatements are dealt with in the statement of
profit & loss.
Exchange difference arising on reporting /settlement of long-term
foreign currency monetary items (other than related to acquisition of
depreciable Fixed Assets) at rates different from those at which they
were initially recorded during the period or reported in previous
financial statement which were until now being recognized in the
Statement of Profit & Loss are now being accumulated in "Foreign
Currency Monetary Items Translation Difference Account" and amortized
in the Statement of Profit & Loss over the remaining life of the
long-term foreign currency monetary items.
xiv. Derivative Transactions
The Company uses derivative financial instruments such as forward
exchange contracts, currency swap etc. to hedge its risks associated
with foreign currency fluctuations relating to the underlying
transactions, highly probable forecast transactions and firm
commitments. In respect of Forwards Exchange Contracts with underlying
transactions, the premium or discount arising at the inception of such
contract is amortized as expense or income over the life of 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 statement. Any profit or losses arising on cancellation of
derivative instruments are recognized as income or expense for the
period.
xv. Taxes on Income
Current tax is determined on the basis of the amount of tax payable for
the year under Income Tax Act and Agriculture Income Tax of the
respective states. Deferred tax is calculated at the applicable tax
rate and is recognized on timing differences between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent period. Deferred tax assets subject
to consideration of prudence, are recognized and carried forward only
to the extent that there is virtual certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized. Tax Credit for Minimum Alternate Tax (MAT) is
recognized when there is a convincing evidence of its realisability
against future tax liability.
xvi. Provisions, Contingent Liabilities & Contingent Assets
Provisions are recognized in respect of present obligations arising out
of past events where there are reliable estimates of the probable
outflow of resources. Contingent liabilities are the possible
obligation of the past events, the existence of which will be confirmed
only by the occurrence or non-occurrence of a future event. Tese are
not provided for but are disclosed by way of Notes on Accounts.
Contingent Assets are not provided for or disclosed.
b) The Company has only one class of issued shares i.e. Equity Shares
having par value of Rs. 5/- per share. Each holder of Ordinary Shares is
entitled to one vote per share and equal right for dividend. Te
dividend proposed by the Board of Directors is subject to the approval
of shareholders in the ensuing Annual General Meeting, except in case
of interim dividend. In the event of liquidation, the ordinary
shareholders are eligible to receive the remaining assets of the
Company after payment of all preferential amounts, in proportion to
their shareholding.
c) The Company does not have any Holding Company/ultimate Holding
Company.
e) No Equity Shares have been reserved for issue under options and
contracts/commitments for the sale of shares/disinvestment as at the
Balance Sheet date.
f) No shares have been bought back by the Company during the period of
5 years preceding the date as at which the Balance Sheet is prepared.
g) 7518810 (Previous year 7518810) Equity shares of Rs. 5/- each fully
paid up have been issued pursuant to scheme of amalgamation and
arrangement for consideration other than cash in preceeding five years.
h) No securities convertible into Equity/Preference shares issued by
the Company during the year.
i) No calls are unpaid by any director or officer of the Company during
the year.
i) Term Loan from Banks and External Commercial Borrowings are
secured/to be secured by equitable mortgage by deposit of title deeds
of tea estates along with all immovable properties thereon ranking
pari-passu, interse with working capital lenders for tea division.
ii) Term Loan from NBFC is secured by pledge of certain non current
investments.
iii) Sugar Development Loan Fund is secured/to be secured by way of
equitable mortgage of immovable/movable properties of Jay Shree Sugar
division ranking pari-passu.
Security :
i) Secured working capital loan and other secured loans are secured by
first charge by way of hypothecation over entire current assets of the
Company ranking pari-passu with other consortium banks as primary
security & second charge by way of hypothecation of entire movable
plant & machinery of the Company ranking pari-passu with other
consortium banks as collateral.
ii) Above secured loans are also secured by equitable Mortgage over the
immovable properties of Company''s 21 tea estates ranking pari-passu
with term lenders for tea division.
1) a) Land of Tribeni, West Bengal - Appeal for the final determination
of compensation was decided in favour of the
Company by the District Court of Hooghly and final compensation
determined at Rs. 8.33 (Including interest Rs. 0.50) against which a sum of
Rs. 2.05 was received in a previous year and credited to fixed assets. Rs.
6.28 including Rs. 1.50 released during the year 1967 against
hypothecation of Khardah Land by the District Court has been shown in
Current Liabilities. Te Hon''ble High Court at Calcutta has decided the
appeal against the Company in a previous year by reducing the amount of
compensation for which an appeal before the Hon''ble Supreme Court of
India was filed. Hon''ble Supreme Court has upheld the decision of the
Hon''ble High Court and accordingly the adjustments will be carried out
when the amount to be refunded is ascertained.
b) Land at Guwahati measuring 2 hectares and related building including
furniture & fixture and related equipment has been given on registered
lease to a Society for operating a School.
2) Includes estimated cost of New Extension of area under tea Rs. 46.16
(Previous Year Rs. 27.56) capitalized during the year as certified.
3) Excluding Rs. 11.47 (Previous Year Rs. 75.60) on account of subsidy
received from Tea Board under Tea Quality Upgradation & Product
Diversification Scheme, Rs. NIL (Previous Year Rs. 19.70) on account of
transport subsidy received against vehicles from Tea Board and Rs. NIL
(previous year Rs. 285.23) on account of capital subsidy received from
Cane Ministry, Bihar.
4) Land, Buildings and Plant & Machinery include Rs. 1.18, Rs. 6.43 and Rs.
0.81 respectively (Previous Year Rs. 1.18, Rs. 6.43, and Rs. 0.81
respectively) being 5.18% share of cost of Land, Buildings and Plant &
Machinery held on co-ownership by the Company with other parties.
5) Land & Plantation include Rs. 29.28 (Previous year Rs. 29.28) and
Building include Rs. 1.55 (Previous year Rs. 1.55) (being cost of floor of
a leasehold building) in the name of the nominees of the Company on
co-ownership basis, pending execution of conveyance deed.
6) Land & Plantation includes 2.431 Hectare of land at tea estates for
which possession handed over for construction of schools and 6 hectares
for which execution of conveyance deed in favour of the Company is
pending.
7) The Jayshree Sugar division of the Company is holding 1070.57 acre of
land which is in dispute under "Bihar Land Reforms (Fixation of Ceiling
Area and Acquisition of Surplus Land) Act, 1961 & Rules 1963" vide
order dated 29/12/2012, the Additional Collector, Bettiah had declared
970.57 acre of land as surplus and ordered for surrender of such land.
Te Company has filed an appeal against the order of the collector and
matter is subjudice. Further compensation of 146.92 acres of land which
was surrendered under the above Act in earlier years is yet to be
determined and shall be accounted for in the year of receipt.
8) Depreciation during the year includes of Rs. 1.27 (Previous year Rs.
0.43) towards assets of farm.
9) Borrowing cost capitalized in accordance with Accounting Standard
(AS) - 16 is Rs. NIL (Previous Year Rs. NIL).
Portion of long term investments, as defined by Accounting Standard-13
"Accounting for Investments", which are expected to be realised within
twelve months from the Balance Sheet date are disclosed as "Current
portion of long term investment".
Mar 31, 2013
I. Convention
The fnancial statements have been prepared in accordance with
applicable Accounting Standards in India and in accordance with the
relevant provisions of the Companies Act, 1956. A summary of important
accounting policies which have been applied consistently is set out
below.
ii. Use of Estimates
The preparation of fnancial 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 the
fnancial 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.
iii. Basis of Accounting
The fnancial statements have been prepared in accordance with
historical cost convention. All income and expenses, unless specifcally
stated otherwise, have been accounted for on accrual basis.
iv. Recognition of Revenue & Expenses
a) All revenue and expenses are accounted for on accrual basis except
as otherwise stated.
b) Sales are net of returns, Sales Tax/VAT and trade discount.
v. Government Grants
a) Government Grants related to specifc assets are adjusted with value
of fxed assets.
b) Government Grants in the nature of Promoter''s Contribution towards
fxed assets are credited to Capital Reserve.
c) Government Grant related to revenue items are adjusted with the
related expenditure/taken in income.
vi. Fixed Assets & Depreciation / Amortization
A. Tangible Fixed Assets
a) Fixed assets are stated at cost less accumulated depreciation and
accumulated impairment loss, if any.
b) Depreciation on all assets, other than vehicles, is provided on the
"Straight Line Method" and on vehicles on the "Written down value
method" in the manner and at the rates specifed in Schedule XIV to the
Companies Act, 1956.
c) Items of machinery spares to be used in connection with an item of
fxed asset are amortized over the useful life of the asset.
d) Leasehold Land (Others) is amortized over the period of lease.
B. Intangible Fixed Assets
Intangible Assets are stated at cost on initial recognition after which
the same are stated at cost less accumulated amortization and
accumulated impairment loss, if any.
C. Capital Work-In-progress
Capital Work-in-progress is stated at cost which includes expenses
incurred during construction period, interest on amount borrowed for
acquisition of qualifying assets and other expenses incurred in
connection with project implementation in so far as such expenses
relate to the period prior to the commencement of commercial
production.
D. Intangible assets under development
Intangible assets under development is stated at cost which includes
expenses incurred during development period and all other expenses
incurred in connection with development of Intangible Assets in so far
as such expenses relate to the period prior to the getting the assets
ready for use.
vii. Impairment of Assets
Impairment of Assets are assessed at each Balance Sheet date for each
cash generating unit if any indicators of impairment exists and the
same is assessed and provided for in accordance with the Accounting
Standard 28. A previously recognized impairment loss is periodically
assessed.
viii. Leases
For assets acquired under operating lease, rental payable are
recognised as an expense in the statement of proft and loss. Assets
acquired under fnance lease are capitalized at lower of the fair value
and the present value of minimum lease payment. Lease income from
operating leases is recognised in the statement of proft and loss over
the period of lease.
ix. Investments
a) Investments which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classifed as current investments. All other investments are
classifed as long-term investments. The portion of long term
investments expected to be realized within twelve months after the
reporting date are disclosed under current investments.
b) On initial recognition, all investments are measured at cost. The
cost comprises purchase price and directly attributable acquisition
charges such as brokerage, fees & duties.
c) Long-Term Investments are stated at cost. Provision for diminution
is made if the decline in value, in the opinion of the management, is
other than temporary.
d) Current Investments, other than the portion of long term investments
disclosed under current investments, are stated at lower of cost or
fair value.
x. Inventories
Inventories are valued at cost or net realizable value whichever is
lower. Cost is determined on weighted average/FIFO basis. Cost
comprises expenditure incurred in the normal course of business in
bringing such inventories to their location and condition and includes
appropriate overheads. Provision is made for obsolete and slow moving
stocks, wherever necessary.
Net realizable value is the estimated selling prices in the ordinary
course of business less estimated cost necessary to make the sale.
Materials and other items held for use in production of inventories are
not written down below the cost if the fnished products in which they
will be incorporated are expected to be sold at or above cost.
xi. Employment Benefts
a) Short term Employees Benefts
The undiscounted amount of short term employee beneft expected to be
paid in exchange for the services rendered by employee is recognized
during the period when the employee render the service. This beneft
includes salary, wages, short term compensatory absences and bonus.
b) Long Term Employee Benefts:
i) Defned Contribution Scheme: This beneft includes contribution to
Superannuation Scheme, ESIC
(Employees'' State Insurance Corporation) and Provident Fund Schemes.
The contribution is recognized during the period in which the employee
renders service. ii) Defned Beneft Scheme: For defned beneft scheme
the cost of providing beneft is determined using the projected unit
credit method with actuarial valuation being carried out at each
balance sheet date. The retirement beneft obligation recognized in the
Balance Sheet represents value of defned beneft obligation as reduced
by the fair value of planned assets. Actuarial gains and losses are
recognized in
full during the period in which they occur.
iii) Other Long Term Benefts: Long term compensated absence is provided
for on the basis of an actuarial valuation, using the Projected Unit
Credit Method as at the date of Balance Sheet.
xii. Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
part of the cost until the asset is ready for its intended use. A
qualifying asset is an asset that necessarily requires a substantial
period of time to get ready for its intended use. Other borrowing costs
are recognized as an expense in the period in which they are incurred.
xiii. Foreign Currency Transactions
Transactions in foreign currencies are recorded at exchange rates
prevailing on the date of the transaction. Monetary items denominated
in foreign currency are restated at the exchange rate prevailing on the
Balance Sheet date. Foreign currency non-monetary items carried in
terms of historical cost are reported using the exchange rate at the
date of the transactions. Exchange differences arising on settlement of
transactions and/or restatements are dealt with in the statement of
proft and loss. Exchange difference arising on reporting /settlement
of long term foreign currency monetary items (other than related to
acquisition of depreciable Fixed Assets) at rates different from those
at which they were initially recorded during the period or reported in
previous fnancial statement which were until now being recognized in
the statement of Proft & Loss are now being accumulated in "Foreign
Currency Monetary Translation Difference Account" and amortized in the
statement of Proft & Loss over the remaining life of the long term
foreign currency monetary items.
xiv. Derivative Transactions
The Company uses derivative fnancial instruments such as forward
exchange contracts, currency swap etc. to hedge its risks associated
with foreign currency fuctuations relating to the underlying
transactions, highly probable forecast transactions and frm
commitments. In respect of Forwards Exchange Contracts with underlying
transactions, the premium or discount arising at the inception of such
contract is amortized as expense or income over the life of contract.
Other Derivative contracts outstanding at the Balance Sheet date are
marked to market and resulting loss, if any, is provided for in the
fnancial statement. Any proft or losses arising on cancellation of
derivative instruments are recognized as income or expense for the
period.
xv. Taxes on Income
Current tax is determined on the basis of the amount of tax payable for
the year under Income Tax Act, and Agriculture Income Tax of the
respective states. Deferred tax is calculated at the applicable tax
rate and is recognized on timing differences between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent period. Deferred tax assets subject
to consideration of prudence, are recognized and carried forward only
to the extent that there is virtual certainty that suffcient future
taxable income will be available against which such deferred tax assets
can be realized. Tax Credit for Minimum Alternate Tax (MAT) is
recognized when there is a convincing evidence its realisability
against future tax liability.
xvi. Provisions, Contingent Liabilities & Contingent Assets
Provisions are recognized in respect of present obligations arising out
of past events where there are reliable estimates of the probable
outfow of resources. Contingent liabilities are the possible obligation
of the past events, the existence of which will be confrmed only by the
occurrence or non-occurrence of a future event. These are not provided
for but are disclosed by way of Notes on Accounts. Contingent Assets
are not provided for or disclosed.
Mar 31, 2012
I. Convention
The financial statements have been prepared in accordance with
applicable Accounting Standards in India and in accordance with the
relevant provisions of the Companies Act, 1956. A summary of important
accounting policies which have been applied consistently is set out
below.
The financial statements has been prepared and presented as per the
requirement of revised Schedule VI as notified under Companies Act 1956
with effect from current year. The adoption of revised schedule VI does
not have any impact on recognition and measurement principles as
consistently followed by the company.
ii. 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 the
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.
iii. Basis of Accounting
The financial statements have been prepared in accordance with
historical cost convention. All income and expenses, unless
specifically stated otherwise, have been accounted for on accrual
basis.
iv. Recognition of Revenue & Expenses
a) All revenue and expenses are accounted for on accrual basis except
as otherwise stated.
b) Sales are net of returns, Sales Tax/VAT and trade discount.
v. Government Grants
a) Government Grants related to specific assets are adjusted with value
of fixed assets.
b) Government Grants in the nature of Promoter's Contribution towards
fixed assets are credited to Capital
Reserve.
c) Government Grant related to revenue items are adjusted with the
related expenditure/taken in income.
vi. Fixed Assets & Depreciation / Amortization
A. Tangible Fixed Assets
a) Fixed assets are stated at cost less accumulated depreciation and
accumulated impairment loss, if any.
b) Depreciation on all assets, other than vehicles, is provided on the
"Straight Line Method", and on vehicles on the "Written down value
method" in the manner and at the rates specified in Schedule XIV to the
Companies Act, 1956.
c) Items of machinery spares to be used in connection with an item of
fixed asset are amortized over the useful life of the asset.
d) Leasehold Land (Others) is amortized over the period of lease.
B. Intangible Fixed Assets
Intangible Assets are stated at cost on initial recognition after which
the same are stated at cost less accumulated amortization and
accumulated impairment loss, if any.
C. Capital Work In progress
Capital Work-in-progress is stated at cost which includes expenses
incurred during construction period, interest on amount borrowed for
acquisition of qualifying assets and other expenses incurred in
connection with project implementation in so far as such expenses
relate to the period prior to the commencement of commercial
production.
D. Intangible assets under development
Intangible assets under development is stated at cost which includes
expenses incurred during development period and all other expenses
incurred in connection with development of Intangible Assets in so far
as such expenses relate to the period prior to the getting the assets
ready for use.
vii. Impairment of Assets
Impairment of Assets are assessed at each Balance Sheet date for each
cash generating unit if any indicators of impairment exists and the
same is assessed and provided for in accordance with the Accounting
Standard 28. A previously recognized impairment loss is periodically
assessed.
viii. Leases
For assets acquired under operating lease, rental payable are
recognized as an expense in the statement of profit and loss. Assets
acquired under finance lease are capitalized at lower of the fair value
and the present value of minimum lease payment. Lease income from
operating leases is recognized in the statement of profit and loss over
the period of lease.
ix. Investments
a) Investments which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments. The portion of long term
investments expected to be realized within twelve months after the
reporting date are disclosed under current investments.
b) On initial recognition, all investments are measured at cost. The
cost comprises purchase price and directly attributable acquisition
charges such as brokerage, fees & duties.
c) Long-Term Investments are stated at cost. Provision for diminution
is made if the decline in value, in the opinion of the management, is
other than temporary.
d) Current Investments, other than the portion of long term investments
disclosed under current investments, are stated at lower of cost or
fair value.
x. Inventories
Inventories are valued at cost or net realizable value whichever is
lower. Cost is determined on weighted average/ FIFO basis. Cost
comprises expenditure incurred in the normal course of business in
bringing such inventories to their location and condition and includes
appropriate overheads. Provision is made for obsolete and slow moving
stocks, wherever necessary.
Net realizable value is the estimated selling prices in the ordinary
course of business less estimated cost necessary to make the sale.
Materials and other items held for use in production of inventories are
not written down below the cost if the finished products in which they
will be incorporated are expected to be sold at or above cost.
xi. Employment Benefits
a) Short term Employees Benefits
The undiscounted amount of short term employee benefit expected to be
paid in exchange for the services rendered by employee is recognized
during the period when the employee render the service. This benefit
includes salary, wages, short term compensatory absences and bonus.
b) Long Term Employee Benefits:
i) Defined Contribution Scheme: This benefit includes contribution to
Superannuation Scheme, ESIC (Employees' State Insurance Corporation)
and Provident Fund Schemes. The contribution is recognized during the
period in which the employee renders service.
ii)Defined Benefit Scheme: For defined benefit scheme the cost of
providing benefit is determined using the projected unit credit method
with actuarial valuation being carried out at each balance sheet date.
The retirement benefit obligation recognized in the Balance Sheet
represents value of defined benefit obligation as reduced by the fair
value of planned assets. Actuarial gains and losses are recognized in
full during the period in which they occur.
iii)Other Long Term Benefits: Long term compensated absence is provided
for on the basis of an actuarial valuation, using the Projected Unit
Credit Method as at the date of Balance Sheet.
xii. Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
part of the cost until the asset is ready for its intended use. A
qualifying asset is an asset that necessarily requires a substantial
period of time to get ready for its intended use. Other borrowing costs
are recognized as an expense in the period in which they are incurred.
xiii. Foreign Currency Transactions
Transactions in foreign currencies are recorded at exchange rates
prevailing on the date of the transaction. Monetary items denominated
in foreign currency are restated at the exchange rate prevailing on the
Balance Sheet date. Foreign currency non-monetary items carried in
terms of historical cost are reported using the exchange rate at the
date of the transactions. Exchange differences arising on settlement of
transactions and/ or restatements are dealt with in the statement of
profit and loss.
Exchange difference arising on reporting /settlement of long term
foreign currency monetary items (other than related to acquisition of
depreciable Fixed Assets) at rates different from those at which they
were initially recorded during the period or reported in previous
financial statement which were until now being recognized in the
statement of Profit & Loss are now being accumulated in "Foreign
Currency Monetary Translation Difference Account" and amortized in the
statement of Profit & Loss A/c. over the remaining life of the long
term foreign currency monetary items.
xiv. Derivative Transactions
The Company uses derivative financial instruments such as forward
exchange contracts, currency swap etc. to hedge its risks associated
with foreign currency fluctuations relating to the underlying
transactions, highly probable forecast transactions and firm
commitments. In respect of Forwards Exchange Contracts with under-
lying transactions, the premium or discount arising at the inception of
such contract is amortized as expense or income over the life of
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 statement. Any profit or losses arising on cancellation of
derivative instruments are recognized as income or expense for the
period.
xv. Taxes on income
Current tax is determined on the basis of the amount of tax payable for
the year under Income Tax Act, and Agriculture Income Tax of the
respective states. Deferred tax is calculated at the applicable tax
rate and is recognized on timing differences between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent period. Deferred tax assets subject
to consideration of prudence, are recognized and carried forward only
to the extent that there is virtual certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized. Tax Credit for Minimum Alternate Tax (MAT) is
recognized when there is virtual certainty of its realisability against
future tax liability.
xvi. provisions, Contingent Liabilities & Contingent Assets
Provisions are recognized in respect of present obligations arising out
of past events where there are reliable estimates of the probable
outflow of resources. Contingent liabilities are the possible
obligation of the past events, the existence of which will be confirmed
only by the occurrence or non-occurrence of a future event. These are
not provided for but are disclosed by way of Notes on Accounts.
Contingent Assets are not provided for or disclosed.
b) The Company has only one class of issued shares i.e. Equity Shares
having par value of Rs 5 per share. Each holder of Ordinary
Shares is entitled to one vote per share and equal right for dividend.
The dividend proposed by the Board of Directors is subject to the
approval of shareholders in the ensuing Annual General Meeting, except
in case of interim dividend. In the event of liquidation, the ordinary
shareholders are eligible to receive the remaining assets of the
Company after payment of all pre fantail amounts, in proportion to their
shareholding.
c) The Company does not have any Holding Company/ultimate Holding
Company.
d) Details of shareholders holding more than 5% shares in the Company:
e) No Equity Shares have been reserved for issue under options and
contracts/commitments for the sale of shares/disinvestment as at the
Balance Sheet date.
f) No shares have been bought back by the Company during the period of
5 years preceding the date as at which the Balance Sheet is prepared.
g) 7541640 (Previous year 7541640 )Equity shares of Rs 5/-each fully
paid up have been issued pursuant to scheme of amalgamation and
arrangement for consideration other than cash.
h) No securities convertible into Equity/Preference shares issued by
the Company during the year.
i) No calls are unpaid by any Director or Officer of the Company during
the year.
Mar 31, 2011
1) Convention
The financial statements have been prepared in accordance with
applicable Accounting Standards in India and in accordance with the
relevant provisions of the Companies Act, 1956. A summary of important
accounting policies which have been applied consistently is set out
below.
2) Basis of Accounting
The financial statements have been prepared in accordance with
historical cost convention. All income and expenses, unless
specifically stated otherwise, have been accounted for on accrual
basis.
3) Sales
Sales are inclusive of sales tax/VAT and net of trade discount.
4) Government Grants
i) Government Grants related to specific assets are adjusted with value
of fixed assets.
ii) Government Grants in the nature of Promoters' Contribution towards
fixed assets are credited to capital reserve. iii) Government Grant
related to revenue items are adjusted with the related
expenditure/taken in income.
5) Fixed Assets & Depreciation/Amortisation
a) Fixed assets are stated at cost less accumulated depreciation and
accumulated impairment loss, if any.
b) Depreciation on all assets, other than vehicles, is provided on the
"Straight Line Method", and on vehicles on the "Written Down Value
Method" in the manner and at the rates specified in Schedule XIV to the
Companies Act, 1956.
c) Depreciation on residential building and ITI house of Sungma Tea
Estate as on 01.04.1997 has been charged @ 4.75% & 19% respectively as
per the residual useful life determined by the valuer.
d) Items of machinery spares to be used in connection with an item of
fixed asset are amortized over the useful life of the asset.
e) Leasehold Land (Others) is amortised over the period of lease.
6) Impairment of Assets
Impairment of Assets are assessed at each Balance Sheet date for each
cash generating unit and if any indicators of impairment exists, the
same is assessed and provided for in accordance with the Accounting
Standard 28. A previously recognized impairement loss is periodically
assessed.
7) Leases
For assets acquired under operating lease, rental payable are charged
to Profit & Loss Account. Assets acquired under finance lease are
capitalized at lower of the fair value and the present value of minimum
lease payment. Lease income from operating leases is recognized in the
Profit & Loss account over the period of lease.
8) Investments
Long Term Investments are stated at cost. Provision for diminution of
investment is made to recognize a decline, other than temporary, in the
value of the investments. Current Investments are stated at cost or
fair value which ever is lower.
22. Statement of Accounting Policies (Cont'd...) 9) Inventories
Inventories are valued at cost or net realisable value whichever is
lower. Cost is determined on weighted average/FIFO basis. Cost
comprises expenditure incurred in the normal course of business in
bringing such inventories to their location and condition and includes
appropriate overheads. Provision is made for obsolete and slow moving
stocks, wherever necessary. 10) Employment Benefits
i) Short term Employees Benefits:
The undiscounted amount of short term employee benefit expected to be
paid in exchange for the services rendered by employee is recognized
during the period when the employee render the service. This benefit
includes salary, wages, short term compensatory absences and bonus.
ii) Long Term Employee Benefits:
a) Defined Contribution Scheme: This benefit includes contribution to
Superannuation Scheme, ESIC (Employees' State Insurance Corporation)
and Provident Fund Schemes. The contribution is recognized during the
period in which the employee renders service.
b) Defined Benefit Scheme: For defined benefit scheme the cost of
providing benefit is determined using the projected unit credit method
with actuarial valuation being carried out at each balance sheet date.
The retirement benefit obligation recognized in the Balance Sheet
represents value of defined benefit obligation as reduced by the fair
value of planned assets. Actuarial gains and losses are recognized in
full during the period in which they occur.
c) Other Long Term Benefits: Long term Compensated absence is provided
for on the basis of an actuarial valuation, using the Projected Unit
Credit Method as at the date of Balance Sheet.
11) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
part of the cost until the asset is ready for its intended use. A
qualifying asset is an asset that necessarily requires a substantial
period of time to get ready for its intended use. Other borrowing costs
are recognised as an expense in the period in which they are incurred.
12) Foreign Currency Transactions
Transactions in foreign currencies are recorded at exchange rates
prevailing on the date of the transaction. Monetary items denominated
in foreign currency are restated at the exchange rate prevailing on the
Balance Sheet date. Foreign currency non-monetary items carried in
terms of historical cost are reported using the exchange rate at the
date of the transactions. Exchange differences arising on settlement of
transactions and/or restatements are dealt with in the Profit & Loss
Account.
13) Derivative Transactions
The Company uses derivative financial instruments such as forward
exchange contracts, currency swap etc. to hedge its risks associated
with foreign currency fluctuations relating to the underlying
transactions, highly probable forecast transactions and firm
commitments. In respect of Forwards Exchange Contracts with underlying
transactions, the premium or discount arising at the inception of such
contract is amortised as expense or income over the life of 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 statement. Any profit or losses arising on cancellation of
derivate instruments are recognized as income or expense for the
period.
14) Taxes on Income
Current tax is determined on the basis of the amount of tax payable for
the year under Income Tax Act, and Agriculture Income Tax of the
respective states. Deferred tax is calculated at the applicable tax
rate and is recognized on timing differences between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent period. Deferred tax assets subject
to consideration of prudence, are recognized and carried forward only
to the extent that there is virtual certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized. Tax Credit for Minimum Alternate Tax (MAT) is
recognised when there is virtual certainty of its realisability against
future tax liability.
15) Provisions, Contingent Liabilities & Contingent Assets
Provisions are recognized in respect of present obligations arising out
of past events where there are reliable estimates of the probable
outflow of resources. Contingent liabilities are the possible
obligation of the past events, the existence of which will be confirmed
only by the occurrence or non-occurrence of a future event. These are
not provided for but are disclosed by way of Notes on Accounts.
Contingent Assets are not provided for or disclosed.
Mar 31, 2010
1) Convention
The financial statements have been prepared in accordance with
applicable Accounting Standards in India and in accordance with the
relevant provisions of the Companies Act, 1956. A summary of important
accounting policies which have been applied consistently is set out
below.
2) Basis of Accounting
The financial statements have been prepared in accordance with
historical cost convention. All income and expenses, unless
specifically stated otherwise, have been accounted for on accrual
basis.
3) Sales
Sales are inclusive of sales tax/VAT and net of trade discount.
4) Government Grants
i) Government Rebate on sale of Superphosphate fertilizer is recognised
in the Profit & Loss Account on accrual basis.
ii) Replantation, Rejuvenation and Orthodox Tea Production Subsidies
are received in stages from the Tea Board and the same are recognised
in the Profit & Loss A/c upon stage wise inspection/approval. Eligible
Interest Subsidy under Central Interest Subsidy Scheme is considered on
the basis of claim filed and when the Company is reasonably certain of
recovery of the same. Capital Subsidy on new projects and Capital
Investment Subsidy is considered as Capital receipt and is credited to
Capital Reserve in the year of receipt. Other subsidy on Quality
upgradation and product diversification is credited to individual
assets to the extent applicable and the balance attributable to revenue
is credited to Profit & Loss A/c. Export incentives arising on exports
are accounted for on accrual basis.
5) Fixed Assets & Depreciation
a) Fixed assets are stated at cost less accumulated depreciation and
impairment loss, if any.
b) Depreciation on all assets, other than vehicles, is provided on the
"Straight Line Method", and on vehicles on the "Written Down Value
Method" in the manner and at the rates specified in Schedule XIV to the
Companies Act, 1956.
c) Depreciation on residential building and ITI house of Sungma Tea
Estate as on 01.04.1997 has been charged @ 4.75% & 19% respectively as
per the residual useful life determined by the valuer.
d) Items of machinery spares to be used in connection with an item of
fixed asset are amortised over the useful life of the asset.
6) Investments
Long Term Investments are stated at cost. Provision for diminution of
investment is made to recognize a decline, other than temporary, in the
value of the investments. Current Investments are stated at cost or
fair value which ever is lower.
7) Inventories
Inventories are valued at cost or net realisable value whichever is
lower. Cost is determined on weighted average/FIFO basis. Cost
comprises expenditure incurred in the normal course of business in
bringing such inventories to their location and condition and includes
appropriate overheads. Provision is made for obsolete and slow moving
stocks where necessary.
8) Foreign Currency Transactions
Transactions in foreign exchange are accounted for at the exchange
rates prevailing on the date of the transactions. All foreign currency
monetary items not covered by forward contracts are stated at the rates
prevailing at the year end and any exchange difference arising on such
transactions are recognised in the Profit and Loss Account. Foreign
currency non-monetary items are carried at historical cost and reported
at the exchange rate at the date of the transaction. Premium/discount
in respect of forward contracts is accounted for over the period of
contract. In respect of forward contracts, exchange differences between
rate at the inception of such contracts and rate on the reporting date
are recognised as income or expense for the period.
9) Derivative Transactions
Derivative contracts not qualifying as forward exchange contracts under
Accounting Standard 11 are Marked to Market at the reporting date and
resulting loss, if any, is provided in the financial statements.
10) Employment Benefits
i) Short term Employees Benefits: The undiscounted amount of short term
employee benefit expected to be paid in exchange for the services
rendered by employee is recognised during the period when the employee
render the service. This benefit includes salary, wages, short term
compensatory absences and bonus.
Long Term Employee Benefits:
a) Defined contribution Scheme: This benefit includes contribution to
Superannuation Scheme, ESIC (Employees State Insurance Corporation)
and Provident Fund Schemes. The contribution is recognised during the
period in which the employee renders service.
b) Defined benefit scheme: For defined benefit scheme the cost of
providing benefit is determined using the projected unit credit method
with actuarial valuation being carried out at each balance sheet date.
The retirement benefit obligation recognised in the Balance Sheet
represents value of defined benefit obligation as reduced by the fair
value of planned assets. Actuarial gains and losses are recognised in
full during the period in which they occur.
c) Other Long Term Benefits: Long term Compensated absence is provided
for on the basis of an actuarial valuation, using the Projected Unit
Credit Method as at the date of Balance Sheet.
11) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
part of the cost until the asset is ready for its intended use. A
qualifying asset is an asset that necessarily require a substantial
period of time to get ready for its intended use. Other borrowing costs
are recognised as an expense in the period in which they are incurred.
12) Impairment of Assets
Impairment of Assets are assessed at each Balance Sheet date and if any
indicators of impairment exists, the same is assessed and provided for
in accordance with the Accounting Standard 28. A previously recognised
impairement loss is periodically assessed.
13) Taxes on Income
Current tax is determined on the basis of the amount of tax payable for
the year under Income Tax Act, and Agriculture Income Tax of the
respective states. Deferred tax is calculated at the applicable tax
rate
22. Statement of Accounting Policies (Contd...)
and is recognised on timing differences between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent period. Deferred tax assets subject
to consideration of prudence, are recognised and carried forward only
to the extent that there is virtual certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized. Tax Credit for Minimum Alternate Tax (MAT) is
recognised when there is virtual certainty of its realisability against
future tax liability.
14) Provisions. Contingent Liabilities & Contingent Assets
Provisions are recognised in respect of present obligations arising out
of past events where there are reliable estimates of the probable
outflow of resources. Contingent liabilities are the possible
obligation of the past events, the existence of which will be confirmed
only by the occurrence or non-occurrence of a future event. These are
not provided for but are disclosed by way of Notes on Accounts.
Contingent Assets are not provided for or disclosed.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on Jay Shree Tea & Industries Ltd.
-
Jay Shree Tea & Industries Ltd. Tools
- Bulk Deals
-
Jay Shree Tea & Industries Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- BSE Price History
- NSE Price History
-
Jay Shree Tea & Industries Ltd. Key Financial Ratios
- Ratios
-
Jay Shree Tea & Industries Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Jay Shree Tea & Industries Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Jay Shree Tea & Industries Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Jay Shree Tea & Industries Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
