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Accounting Policies of Longview Tea Company Ltd. Company

Mar 31, 2014

A. Accounting Convention :

Income and expenditure except otherwise stated are recognised on accrual basis. The accounts have been prepared on the basis of the historical cost and on the accounting principles of a going concern.

b. Fixed Assets :

Fixed Assets are stated at cost less depreciation. Cost includes freight, duties, taxes and all other related costs including cost of financing of borrowed funds upto the date of installation identified/allocated for the assets.

c. Depreciation :

Depreciation is provided on written down value method for assets acquired up to 31.03.1983. In respect of the assets acquired on or after 01.04.1983 depreciation has been provided on straight line method in the following manner:

For assets acquired from 01.04.1983 to 15.12.1993 at the rates specified in schedule XIV to the Companies Act, 1956. For assets acquired on or after 16.12.1993 at the rates specified in schedule XIV to the Companies Act, 1956.

d. Investments :

Long Term Investments are stated at cost. Provision for diminution in value of such investments is made if the same is permanent in nature.

e. Employee Benefits :

Employee benefits are accrued in the year services are rendered by the employees.

Contributions to defined contribution scheme such as Provident Fund etc. are recognized as and when incurred.

Long term and short term employee benefits under defined scheme such as contribution to gratuity is determined at close of the year at present value of the amount payable using actuarial valuation techniques.

Actuarial gain and losses are recognized in the year when they arise.

f. Taxation :

Income Tax expense comprises current tax and deferred tax charge or release. The deferred tax charge or credit is recognised using current tax rates. Deferred tax assets on account of unabsorbed depreciation and carry forward losses as per Income Tax Act are recognized only if there is virtual certainty of realisation of such assets. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future.

g. Contingent Liabilities :

Contingent liabilities have not been provided for and have been disclosed by way of notes.

2.1 The Company has only one class of equity shares having a par value of Rs. 10.each. Each share has one voting right.

2.2 The Company has only one class of preference shares having a par value of Rs. 100 each. Dividend on such preference shares are non-cumulative.

These preference shares are redeemable on or before 31.3.2020. Such Preference share has no voting right.

2.3 There is no movement in the number of equity shares and preference shares outstanding and amount of equity share capital and preference share capital as at 31st March 2014.

2.4 In the year 2011-12, 8300 shares (each Rs. 5 paid) were forfeited after duly called for payment.

2.5 Shares in the company held by each shareholder holding more than 5 percent shares specifying the number of shares held is mentioned below :


Mar 31, 2013

A. Accounting Convention :

Income and expenditure except otherwise stated are recognised on accrual basis. The accounts have been prepared on the basis of the historical cost and on the accounting principles of a going concern.

b. Fixed Assets :

Fixed Assets are stated at cost less depreciation. Cost includes freight, duties, taxes and all other related costs including cost of financing of borrowed funds upto the date of installation identified/ allocated for the assets.

c. Depreciation :

Depreciation is provided oh written down value method for assets acquired up to 31.03.1983. In respect of the assets acquired on or after 01.04.1983 depreciation has been provided on straight line method in the following manner:

For assets acquired from 01.04.1983 to 15.12.1993 at the rates specified in schedule XIV to the Companies Act, 1956. For assets acquired on or after 16.12.1993 at the rates specified in schedule XIV to the Companies Act, 1956.

d. investments :

Long Term Investments are stated at cost. Provision for diminution in value of such investments is made if the same is permanent in nature.

e. Employee Benefits :

Employee benefits are accrued in the year services are rendered by the employees.

Contributions to defined contribution scheme such as Provident Fund etc. are recognized as and when incurred.

Long term employee benefits under defined scheme such as contribution to gratuity is determined at close of the year at present value of the amount payable using actuarial valuation techniques.

Actuarial gain & losses are recognized in the year when they arise.

f. Taxation:

Income Tax expense comprises current tax and deferred tax charge or release. The deferred tax charge or credit is recognised using current tax rates. Deferred tax assets on account of unabsorbed depreciation and carry forward losses as per Income Tax Act are recognized only if there is virtual certainty of realisation of such assets. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future.

g. Contingent Liabilities :

Contingent liabilities have not been provided for and have been disclosed by way of notes.


Mar 31, 2012

A. Accounting Convention :

Income and expenditure except otherwise stated are recognised on accrual basis. The accounts have been prepared on the basis of the historical cost and on the accounting principles of a going concern.

b. Fixed Assets :

Fixed Assets are stated at cost less depreciation. Cost includes freight, duties, taxes and all other related costs including cost of financing of borrowed funds upto the date of installation identified/ allocated for the assets.

c. Depreciation :

Depreciation is provided on written down value method for assets acquired up to 31.03.1983. In respect of the assets acquired on or after 01.04.1983 depreciation has been provided on straight line method in the following manner:

For assets acquired from 01.04.1983 to 15.12.1993 at the rates specified in schedule XIV to the Companies Act, 1956. For assets acquired on or after 16.12.1993 at the rates specified in schedule XIV to the Companies Act, 1956.

d. Investments :

Long Term Investments are stated at cost. Provision for diminution in value of such investments is made if the same is permanent in nature.

e. Employee Benefits:

Employee benefits are accrued in the year services are rendered by the employees.

Contributions to defined contribution scheme such as Provident Fund etc. are recognized as and when incurred.

Long term employee benefits under defined scheme such as contribution to gratuity is determined at close of the year at present value of the amount payable using actuarial valuation techniques.

Actuarial gain & losses are recognized in the year when they arise.

f. Taxation :

Income Tax expense comprises current tax and deferred tax charge or release. The deferred tax charge or credit is recognised using current tax rates. Deferred tax assets on account of unabsorbed depreciation and carry forward losses as per Income Tax Act are recognized only if there is virtual certainty of realisation of such assets. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future.

g. Contingent Liabilities :

Contingent liabilities have not been provided for and have been disclosed by way of notes.


Mar 31, 2010

1) Accounting Convention:

Income and expenditure except otherwise stated are recognised on accrual basis. The accounts have been prepared on the basis of the historical cost and on the accounting principles of a going concern.

2) Fixed Assets:

Fixed Assets are stated at cost less depreciation. Cost includes freight, duties, taxes and all other related costs including cost of financing of borrowed funds upto the date of installation identified/allocated for the assets.

3) Depreciation:

Depreciation is provided on straight line method at the rates specified in Schedule XIV to the Companies Act, 1956.

4) Investments:

Long Term Investments are stated at cost. Provision for diminution in value of such investments is made if the same is permanent in nature.

5) Employee Benefits:

Employee benefits are accrued in the year services are rendered by the employees.

Contributions to defined contribution scheme such as Provident Fund etc. are recognized as and when incurred.

Long term employee benefits under defined scheme such as contribution to gratuity is determined at close of the year at present value of the amount payable using actuarial valuation techniques.

Actuarial gain & losses are recognized in the year when they arise.

6) Taxation:

Income Tax expense comprises current tax and deffered tax. The deffered tax charge or credit is recognised using current tax rates. Deffered tax assets on account of unabsorbed depreciation and carry forward losses as per Income Tax Act are recognized only if there is virtual certainty of realisation of such assets. Other deffered tax assets are recognised only to the extent there is reasonable certainty of realisation in future.

7) Miscellaneous Expenditure:

Advance against capital goods transferred from amalgamating Company is written off in ten equal installments as per Scheme of amalgamation sanctioned by the Hon'bie High Court at Kolkata.

8) Contingent Liabilities:

Contingent liabilities have not been provided for and have been disclosed by way of notes.

 
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