Home  »  Company  »  Norben Tea & Exp  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Norben Tea & Exports Ltd. Company

Mar 31, 2015

1.1 Basis of Presentation

The accounts have been prepared using historical cost convention and on the basis of going concern concept. Accounting policies not referred to otherwise are consistent with generally accepted accounting policies.

1.2 Fixed Assets

Tangible Fixed Assets are stated at cost less accumulated depreciation. Cost includes cost of acquisition and all direct expenses relating thereto.

1.3 Depreciation

Depreciation on Fixed Assets are provided on Straight Line Method, on pro-rata basis and estimating the useful life of the assets keeping in force with the Schedule II to the Companies Act, 2013.

Depreciable amount of an asset is the cost of an asset as reduced by its residual value of five percent of such asset.

1.4 Investments

Current investments are carried at lower of cost and fair value. Long Term Investments are stated at cost. Provision for diminution in the value of investments is made only if such a decline is other than temporary.

1.5 Inventories

Inventories are valued at lower of cost or net value since realized/estimated net realizable value.

1.6 Recognition of Revenue

i) Sales represent invoice value of goods sold and are exclusive of Sales Tax but inclusive of discount, rebate and all incidental expenses relating thereto.

ii) Income & Expenditure are recognized on accrual basis, except rates and taxes and certain petty items which can not be estimated with reasonable certainty.

1.7 Borrowing Cost

Interest and other costs on borrowed funds used to finance the acquisition of fixed assets, upto the date the assets are ready for use are capitalised under respective fixed assets on a rational basis.

Other interest and costs incurred on borrowed funds are recognized as expenses in the year in which they are incurred.

1.8 Excise Duty and Cess

Excise Duty payable on Black Tea has been accounted for on the basis of both, payments made in respect of tea cleared from factory and also provision made for tea made lying at factory.

1.9 Accounting for Taxes on Income

Current tax is recognized as per Income Tax Act, 1961 based on applicable tax rates & laws. Deferred Tax is recognized subject to consideration of prudence on timing differences being differences between taxable and accounting income/expenditure that originate in one period and are capable of reversal in one or more subsequent period(s) and is measured using tax rates and laws that have been enacted or substantially enacted as at the balance sheet date. Deferred Tax assets are recognized unless there is virtual certainty that sufficient future taxable income will be available against which such Deferred Tax assets will be realized.

1.10 Employee Benefits

i) Short-term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the period when the employee renders the service except leave encashment.

Leave Encashment: Liability for leave is treated as short term liability. For Internal control, leave as per management's policy is not to be accumulated but availed of during the year. Accordingly the employees have been advised to plan their leave in advance while in service and immediately before superannuation. Leave not availed is not encashable.

ii) Post employment benefits plans

a) Defined Contribution Plan

Contribution under defined contribution plans payable in keeping with the related schemes are recognized as expenses for the year.

b) Defined Benefit Plan

Gratuity liability, being a defined benefit obligation, is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

1.11 Government Grants

Remission of Sales Tax under State Incentive Scheme is being credited to reserves.

Government grants related to revenue are recognized on a systematic basis in the profit & loss account over the periods necessary to match them with their related cost.

Government grant related to a specific asset is subtracted from the gross value of the asset concerned and accordingly depreciation has been calculated on the remaining value.

1.12 Impairments

An Asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.13 Contingent liabilities

Provision of contingent liabilities are not made, unless & until the demand raised by statutory authorities, against which the company has preferred an appeal which is pending with the different forum of the said authorities are ascertained.

2.3 The Company has only one class of equity share having a par value of Rs.10 per share. Each holder of equity share will be entitled to one vote per share. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the no. of equity shares held by the shareholders.


Mar 31, 2013

1.1 Basis of Presentation

The accounts have been prepared using historical cost convention and on the basis of going concern concept. Accounting policies not referred to otherwise are consistent with generally accepted accounting policies.

1.2 Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. Cost includes cost of acquisition and all direct expenses relating thereto.

1.3 Depreciation

Depreciation on Fixed Assets are provided on the basis of Straight Line Method and at the rates specified in Schedule XIV to the Companies Act, 1956.

1.4 Investments

Current investments are carried at lower of cost and fair value. Long Term Investments are stated at cost. Provision for diminution in the value of investments is made only if such a decline is other than temporary.

1.5 Inventories

Inventories are valued at lower of cost or net value since realized/estimated net realizable value.

1.6 Recognition of Revenue

i) Sales represent invoice value of goods sold and are exclusive of Sales Tax but inclusive of discount, rebate and all incidental expenses relating thereto.

ii) Income & Expenditure are recognized on accrual basis, except rates and taxes and certain petty items which can not be estimated with reasonable certainty.

1.7 Borrowing Cost

Interest and other costs on borrowed funds used to finance the acquisition of fixed assets, upto the date the assets are ready for use are capitalised under respective fixed assets on a rational basis.

Other interest and costs incurred on borrowed funds are recognized as expenses in the year in which they are incurred.

1.8 Excise Duty and Cess

Excise Duty payable on Black Tea has been accounted for on the basis of both, payments made in respect of tea cleared from factory and also provision made for tea made lying at factory.

1.9 Accounting for Taxes on Income

Current tax is recognized as per Income Tax Act, 1961 based on applicable tax rates & laws. Deferred Tax is recognized subject to consideration of prudence on timing differences being differences between taxable and accounting income/expenditure that originate in one period and are capable of reversal in one or more subsequent period(s) and is measured using tax rates and laws that have been enacted or substantially enacted as at the balance sheet date. Deferred Tax assets are recognized unless there is virtual certainty that sufficient future taxable income will be available against which such Deferred Tax assets will be realized.

1.10 Employee Benefits

i) Short-term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the period when the employee renders the service except leave encashment.

Leave Encashment: For Internal control, leave as per management''s policy is notto be accumulated but availed of and the employees have been advised to plan their leave in advance while in service and immediately before superannuation. Leave not availed is not encashable.

ii) Post employment benefits plans

Contribution under defined contribution plans payable in keeping with the related schemes are recognized as expenses for the year.

For defined benefit plans, the cost of providing benefit is recognized as and when paid.

ii) Other long-term employment benefits (Unfunded)

The cost of providing long-term employee benefits is generally recognized on cash basis.

1.11 Government Grants

Remission of Sales Tax Under State Incentive Scheme, had been credited to reserves.

Government grants related to revenue are recognized on a systematic basis in the profit & loss account

over the periods necessary to match them with their related cost.

The Department of Biotechnology, Government of West Bengal has sanctioned Project for Biotechnological Studies in tea for Demonstration of New Tea Plants Genotypes in our site at Jalpaiguri District.

1.12 ImpairmentsAn Asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss is recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.13 Contingent liabilities

Provision of contingent liabilities are not made, unless & until the demand raised by statutory authorities, against which the company has preferred an appeal which is pending with the different forum of the said authorities are ascertained.


Mar 31, 2012

1. Basis of Presentation

The accounts have been prepared using historical cost convention and on the basis of going concern concept. Accounting policies not referred to otherwise are consistent with generally accepted accounting policies.

2. Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. Cost includes cost of acquisition and all direct expenses relating thereto.

3. Depreciation

Depreciation on Fixed Assets are provided on the basis of Straight Line Method and at the rates specified in Schedule XIV to the Companies Act, 1956.

4. Investments

Current investments are carried at lower of cost and quoted value. Long Term Investments are stated at cost.Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.

5. Inventories

Inventories are valued at lower of cost or net value since realized/estimated net realizable value.

6. Recognition of Revenue

i) Sales represent invoice value of goods sold and are exclusive of Sales Tax but inclusive of discount, rebate and all incidental expenses relating thereto.

ii) Income & Expenditure are recognized on accrual basis, except rates and taxes and certain petty items which can not be estimated with reasonable certainty.

7. Borrowing Cost

Interest and other costs on borrowed funds used to finance the acquisition of fixed assets, upto the date the assets are ready for use are capitalised under respective fixed assets on a rational basis.

Other interest and costs incurred on borrowed funds are recognized as expenses in the year in which they are incurred.

8. Excise Duty and Cess

Excise Duty payable on Black Tea has been accounted for on the basis of both, payments made in respect of tea cleared from factory and also provision made for tea made lying at factory.

9. Accounting for Taxes on Income

Current tax is recognized as per Income Tax Act, 1961 based on applicable tax rates & laws. Deferred Tax is recognized subject to consideration of prudence on timing differences being differences between taxable and accounting income/expenditure that originate in one period and are capable of reversal in one or more subsequent period(s) and is measured using tax rates and laws that have been - enacted or substantially enacted as at the balance sheet date. Deferred Tax assets are recognized unless there is virtual certainty that sufficient future taxable income will be available against which such Deferred Tax assets will be realized.

10. Employee Benefits

i) Short-term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the period when the employee renders the service except leave encashment.

Leave Encashment: For Internal control, leave as per management's policy is not to be accumulated but availed of and the employees have been advised to plan their leave in advance while in service and immediately before superannuation. Leave not availed is not encashable.

ii) Post employment benefits plans

Contribution under defined contribution plans payable in keeping with the related schemes are recognized as expenses for the year. For defined benefit plans, the cost of providing benefit is recognized as and when paid.

iii) Other long-term employment benefits (Unfunded)

The cost of providing long-term employees benefits is generally recognised on cash basis.

11. Government Grants

Remission of Sales Tax Under State Incentive Scheme, had been credited to reserves.

Government grants related to revenue are recognized on a systematic basis in the profit & loss account over the periods necessary to match them with their related cost.

The Department of Biotechnology, Government of West Bengal has sanctioned Project for Biotechnological Studies in tea for Demonstration of New Tea Plants Genotypes in our site at Jalpaiguri District.

12. Impairments

An Asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired .The impairment loss is recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

13. Contingent liabilities

Provision of contingent liabilities are not made, unless & until the demand raised by statutory authorities, against which the company has preferred an appeal which is pending with the different forum of the said authorities are ascertained.


Mar 31, 2010

1. Basis of Presantation

The accounts have been prepared using historical cost convention and on the basis of going concern concept. Accounting policles not referred to otherwise are consistant with generally accepted accounting policies.

2. Fixed Assets

Fixed Assests are stated at cost less accumulated depreslation. Cost includes cost of acquisition and all direct expenses ralating thereto.

3. Deprecistion

Depreclation on Fixed Assts are provided on the basis of Stralght Line Method and at she rates specilled in Schedule XIV to the Companues Act, 1956.

4. Investments

Long Term Invesments are stated at cost.

5. Inventorles

Inventorles are valued at lower of cost or net value since realised/estimated net realisable value.

6. Recognision of Revenus.

i) Sales represent Invoice value of goods sold and are exclusive of Sales Tax but taxes and certain petty them which can not be estimated with reasonable certainty.

7. Borrowing Cost

Excise Duty payable on Black Tea has been accounted for on the basis of both, payments made in respect of tea cleared from factoru and also provision made for tea made fying at factory.

9. Accoounting for Taxes on Income

Current tax is recognized as per income Tax Act, 1961 based on applicable tax rates & laws. Detterred Tax is recognized subject to consideration of prudence on timing differences being differences between taxable and accouting income/expenditure that originale in one period and are capable of reversal in one or more subsequent period(s) and is measured using tax rates and laws that have been enacted or substantially enacted as at the balance sheet date. Defarrd Tax assets are recognized uniess there is vilual certainly that sufficiant future taxable income will be available against which such Deterred Tax assets will be realized.

10. Employes Benefits

i) Shortterm Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recofnized during the period when the employee renders the service except leave encashment.

Leave Encashment : For Internal control, leave as per managements policy is not to be accoumuisted but availed of and the employees have been advised to plan their leave in advance white in service and immedistely before suporannuation, Leave not availed is not encashable.

ii) Post emplyment benefits plans

Contribution under defined contribution plans payable in keeping with the related schemes are recognized as expensea for the year.

iii) Other long-term employment benefits (Unfunded)

The cost of providing longterm employee benefits is generally racognized on cash basis.

11. Government Granis

Remission of Sales Tax under State incertive Schams, had been credited to resarves.

Governmen grants related to ravanue are recognized on a systematic basis in the profit & loss account over the periods neceasary to match them with their related cost.

The Department of Biotechnology, Government of West Bangal has sanclioned Project for Blotechnological Studies in tea for Demonetration of New Tea Plants Genotypes in our sits at Jaipaiguri District.

12. Impalinents:

At each Balance Sheet date, the Company reviews the carrying amount of its Fixed Assets to determine whether there is any indication that those assets suffered any impalmentloss. It any such indication exists, the recoverable amount of the asset is estimated in order to determine the exlent of impalment loce. Recoverative amount is the higher of an assets net selfing price and value in use. In assessing value in use, the estimated future cash flows expected from the contineing use of the assets and from its disposat are discounted to they present value using a pre-determined rate that reflects the current market assessment of time value of money and the risks specific to the asset. Reversal of impaltment loss is recognized immediately as income in the Profit & Loss Account.

13. Contingent liabilities

Provision of contingent liabilities are not made, unless & until the demand raised by statutory authorities, against which the company has preferred an appeal which is pending with the different forum of the said authorities are ascertained.


Mar 31, 2009

1. Basis of Presentation

The accounts have been prepared using historical cost convention and on the basis of going concern concept. Accounting policies not referred to otherwise are consistent with generally accepted accounting policies.

2. Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. Cost includes cost of acquisition and all direct expenses relating thereto.

3. Depreciation

Depreciation on Fixed Assets are provided on the basis of Straight Line Method and at the rates specified in Schedule XIV to the Companies Act, 1956.

4. Investments

Long Term Investments are stated at cost.

5. Inventories

Inventories are valued at lower of cost or net value since realised/estimated net realisable value.

6. Recognition of Revenue

i) Sales represent invoice value of goods sold and are exclusive of Sales Tax but inclusive of discount, rebate and all incidental expenses relating thereto.

ii) Income & Expenditure are recognized on accrual basis, except rates and taxes and certain petty items which can not be estimated with reasonable certainty.

7. Borrowing Cost

Interest and other costs on borrowed funds used to finance the acquisition of fixed assets, upto the date the assets are ready for use are capitalised under respective fixed assets on a rational basis.

Other interest and costs incurred on borrowed funds are recognized as expenses in the year in which they are incurred.

8. Excise Duty and Cess

Excise Duty payable on Black Tea has been accounted for on the basis of both, payments made in respect of tea cleared from factory and also provision made for tea made lying at factory.

9. Accounting for Taxes on Income

Current tax is recognized as per Income Tax Act, 1961 based on applicable tax rates & laws. Defferred Tax is recognized subject to consideration of prudence on timing differences being differences between taxable and accounting income/expenditure that originate in one period and are capable of reversal in one or more subsequent period(s) and is measured using tax rates and laws that have been enacted or substantially enacted as at the balance sheet date. Deferred Tax assets are recognized unless there is virtual certainty that sufficient future taxable income will be available against which such Deferred Tax assets will be realized.

Fringe benefit tax is accounted for based on the estimated Fringe benefit for the period as per the related provision of the Income Tax Act, 1961.

10. Employee Benefits

i) Short-term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the period when the employee renders the service except leave encashment.

Leave Encashment: For Internal control, leave as per managements policy is not to be accoumulated but availed of and the employees have been advised to plan their leave in advance while in service and immediately before superannuation. Leave not availed is not encashable.

ii) Post employment benefits plans

Contribution under defined contribution plans payable in keeping with the related schemes are recognized as expenses for the year. For defined benefit plans, the cost of providing benefit is recognized as and when paid.

iii) Other long-term employment benefits (Unfunded)

The cost of providing long-term employee benefits is generally recognized on cash basis.

11. Government Grants

Remission of Sales Tax Under State Incentive Scheme, had been credited to reserves. Government grants related to revenue are recognized on a systematic basis in the profit & loss account over the periods necessary to match them with their related cost.

The Department of Biotechnology, Government of West Bengal has sanctioned Project for Biotechnological Studies in tea for Demonstration of New Tea Plants Genotypes in our site at Jalpaiguri District.

12. Impairments:

At each Balance Sheet date, the Company reviews the carrying amount of its Fixed Assets to determine whether there is any indication that those assets suffered any impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an assets net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the assets and from its disposal are discounted to their present value using a pre-determined rate that reflects the current market assessment of time value of money and the risks specific to the asset. Reversal of impairment loss is recognized immediately as income in the Profit & Loss Account.

13. Contingent liabilities

Provision of contingent liabilities are not made, unless & until the demand raised by statutory authorities, against which the company has preferred an appeal which is pending with the different forum of the said authorities are ascertained.

 
Subscribe now to get personal finance updates in your inbox!