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Notes to Accounts of Norben Tea & Exports Ltd.

Mar 31, 2015

1 Remission of Sales Tax was granted to the Company upto 30th October, 2004 in view of eligible certificate issued under West Bengal State Incentives Schemes. Remission of sales tax amounting to Rs.1,109 thousands (previous year Rs.1,109 thousands) on tea sold in Auction by the Auctioneer Agents has not yet been received and has not been accounted for as it is under appeal.

2 Term Loan from State Bank of India is secured by way of Equitable Mortgage of Company's Tea Estate at Nagar Berubari, Jalpaiguri, West Bengal, Building created out of Bank's Finance, extension of charge on Hypothecation of Plant & Machineries and other Fixed Assets and Lien on SBI Life/SBI MF of Rs. 500 thousands and further secured by personal guarantee of Promoter Director.

3 The aggregate amount of loan guaranteed by Director is Rs.1,211 thousands (Previous Year Rs.2,018 thousands)

4 Deferred payment credits from Bank and Financial Institutions are secured against hypothecation of respective vehicles.

5 Term Loan from State Bank of India is repayable within 5 years starting from 30th Sept, 2011 and the applicable rate of interest is 10.95% p.a.

6 The Short Term Borrowings from State Bank of India are secured by way of hypothecation of stocks of tea crops, green leaves, stores & spares, book debts and other current assets, EQM on Company's Tea Estate at Nagar Berubari Jalpaiguri, West Bengal extension of charge on hypothecation of Plant and Machinery, other Fixed Assets & Lien on SBI Life / SBI MF for Rs.500 thousand and further secured by personal guarantee of Promoter Director.

7 The aggregate amount of loan guaranteed by Director is Rs. 20,700 thousands (Previous Year Rs. 18,000 thousands)

8 The present applicable rate of interest for Cash Credit loan is 10.95% p.a.

9 The present applicable rate of interest for SLC is 13.75% p.a.

10 Sundry Creditors do not include any dues to micro, small and medium enterprises on account of principal amount together with interest and accordingly no additional disclosures have been made. The above information regarding micro, small and medium enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

Notes :

a) Land includes Rs.5,559 thousands (previous year Rs.5,559 thousands) in respect of which Conveyance Deed has not been executed in the name of the Company.

b) During the year expenses relating to maintenance & plantation of young tea amounting to Rs.1,125 thousands (previous year Rs.1,339 thousands)which are of revenue in nature, has been capitalised. The cost of deployment of labour for young tea plantation in nursery division and maintenance thereof till to the commencement of commercial production have been capitalised on prudent consideration of accepted accounting principles, simultaneously availing the permissible tax incentives and reliefs.

c) Deduction from gross block of assets include subsidy of Rs.289 thousands received from Tea Board of India under quality upgradation and product diversification scheme 2009-10.

d) Consequent to the applicability of the Companies Act, 2013 with effect from April 01, 2014, during the year ended March 31, 2015, the management reassessed the remaining useful life of the assets based on internal and external technical evaluation. The useful life of the assets adopted is linger than that referred to in Schedule II to the Companies Act, 2013 in respect of all depreciable assets except office equipments and computers. Persuant to the charge of depreciation keeping in force with the Schedule II to the Companies Act, 2013 and adopting longer useful lives in respect of assets as stated, the depreciation charged for the year is lower by Rs.9385 thousands with the corresponding favourable impact on the profit from ordinary activities before tax and higher networth and balance of tangible assets to the same extent as at the end of the year.

e) During the year, some assets have been regrouped / rearranged in the appropriate block of assets, however it has no impact on gross block of assets, accumulated depreciation and WDV of the assets as at April 1, 2014.

11 Other advances include Rs. 345 thousands (previous year Rs. 418 thousands) due since long. Keeping the nature of advance and relationship with the parties in view the management is of the opinion that these are good and recoverable.

12 The company has defined gratuity plan. Every employee who has completed five years of more of service in entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972.

13 a) Contingent Liabilities not provided for :

Disputed Income Tax liabilities for the Assessment Years 1995-96 Rs.2,465 thousands (Previous year Rs.2,465 thousands). The Company filed rectification petition u/s.154 for the demand and the same is pending with DCIT.

b) Claim against the company not acknowledged as debt:

The W.B.R.E. & PE. Cess of Rs.278 thousand was not acknowledged by the company as debt and had been written back to the accounts in the year 2013-14. The management is confident that no liability would arise on W.B.R.E. & PE. Cess.

14 In view of brought forward losses, no provision for Tax has been made both under normal provision of I.T. Act and Minimum Alternate Tax (MAT) under section 115JB.

15 Balance confirmation from some Sundry Creditors and Sundry Debtors are still awaited.

16 In terms of the Accounting Standard (AS)-17, issued by the ICAI, neither a business segment nor a geographical segment has been identified as reportable segment during the year.

17 Total value of stores & spare parts and packing material consumed. Indigenous - 100% - Rs. 1,235 thousands (Previous year - Indigenous - 100% - Rs.843 thousands).

18 Previous year's figures have been regrouped, rearranged and recast wherever necessary.


Mar 31, 2013

1.1 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.

2.1 Remission of Sales Tax was granted to the Company upto 30th October, 2004 in view of eligible certificate issued under West Bengal State Incentives Schemes. Remission of sales tax amounting to Rs.1109 thousands (previous year Rs.1109 thousands) on tea sold in Auction by the Auctioneer Agents has not yet been received and has not been accounted for as it is under appeal.

3.1 Term Loan from State Bank of India is secured by way of Equitable Mortgage on Plant & Machinery, Building created out of Bank''s Finance and it''s extension on Company''s Tea Estate and Land at Nagar Berubari.Jalpaiguri. West Bengal, extension of charge on SBI Life/SBI MF of Rs.500 thousands and personal guarantee of Promoter Director.

3.2 The aggregate amount of loan guaranteed by Director is Rs.2,824 thousands (Previous Year Rs.3,654 thousands)

3.3 Hire Purchase loan from HDFC Bank is secured against hypothecation of vehicles.

3.4 Term Loan from State Bank of India is repayable within 5 years starting from 30th Sept,2011 and the present applicable rate of interest is 10.25% p.a.

4.1 The loan is secured by way of hypothecation of stocks of tea crops, green leaves, stores & spares, book debts and other current assets, EQM on Company''s Tea Estate at Nagar Berubari Jalpaiguri, West Bengal extension of charge on hypothecation of Rant and Machinery.other Fixed Assets & SBI Life/SBI MFfor Rs.500 thousands and personal guarantee of Promoter Director.

4.2 The aggregate amount of loan guaranteed by Director is Rs.14,952 thousands (Previous Year Rs.12,478 thousands)

4.3 The present applicable rate of interest for cash credit loan is 10.25% p.a.

5.1 Sundry Creditors both under long term and short term trade payables do not include any dues to micro, small and medium enterprise on account of principal amount together with interest and accordingly no additional disclosures have been made.The above information regarding micro,small and medium enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

6.1 The aggregate amount of term loan guaranteed by Director is Rs.2,824 thousands(Previous Year Rs.3.654 thousands)

7. Contingent Liabilities not provided for (a) Disputed Income Tax liabilities for the Assessment Years 1995-96 Rs.2,465 thousands (Previous year Rs.4,625 thousands). The Company filed rectification petition u/s.154 for the demand and the same is pending with ACIT, (b) Bank Guarantee Rs.920 thousands (Previous year Rs.920 thousands) (Fixed Deposit of Rs. 641 thousands pledged as margin).

8. In view of brought forward losses, no provision for Tax has been made both under normal provision of IT. Act and Minimum Alternate Tax (MAT) under section 115JB.

9. Balance confirmation from some Sundry Creditors and Sundry Debtors are still awaited.

10. In respect of W.B.R.E. & RE. Cess payable the tea industry has disputed the cess liability;pending the outcome of the dispute the management is of the opinion that it is not payable.

11. Prior period item consist of following expenses/fmcome) :

12. Total value of stores & spare parts and packing material consumed. Indigenous - 100% - Rs.1,478 thousands (Previous year - Indigenous - 100% - Rs.950 thousands).

13. Income and Expenditure in Foreign Currency :

14. Previous year''s figures have been regrouped, rearranged and recast wherever necessary.


Mar 31, 2012

1.1 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.

2.1 Remission of Sales Tax was granted to the Company upto 30th October, 2004 under West Bengal State Incentives Schemes and the Eligibility Certificate was issued for remission of sales tax. Remission of sales tax amounting to Rs.1109 Thousand (previous year Rs.1109 Thousand) on tea sold in Auction by the Auctioneer. Agents has not yet been received and has not been accounted for as it is under appeal .

3.1 Term Loan from State Bank of India is secured by way of Equitable Mortgage on plant & machinery, building created out of Bank's finance and it's extension on Company's Tea Estate and Land at Nagar Berubari, Jalpaiguri, West Bengal, extension of charge on SBI Life/SBI MF of Rs. 500 thousand and personal guarantee of Promoter Director.

3.2 The aggregate amount of loan guaranteed by Director is Rs.3654 thousands (Previous Year Rs. 4090 Thousand)

3.3 Hire Purchase loan from HDFC Bank is secured against hypothecation of vehicles.

4.1 The loan is secured by way of hypothecation of stocks of tea crops, green leaves, stores & spares, book debts and other current assets, EQM on Company's Tea Estate at Nagar Berubari Jalpaiguri, West Bengal extension of charge on hypothecation of Plant and Machinery, other Fixed Assets & Fresh SBI Life/SBI MF for Rs. 500 thousand and personal guarantee of Promoter Director.

4.2 The aggregate amount of loan guaranteed by Director is Rs.12478 thousands (Previous Year Rs.12409 Thousand)

5.1 Sundry Creditors do not include any dues to micro, small and medium enterpries on account of principal amount together with interest and accordingly no additional disclosures have been made. The above information regarding micro, small and medium enterprises has been determined to the extent such parties have been indentified on the basis of information available with the Company.

a) Land includes Rs.5559 thousands (previous year 5559 thousands) in respect of which conveyance Deed has not been executed in the name of the Company.

b) During the year expenses relating to maintenance & plantation of young tea amounting to Rs.4060 Thousand (Previous year Rs.3011 Thousand which are of revenue in nature, has been capitalized. As a result the profit for the year .fixed asssets and reserve and surplus at the year end have been overstated by Rs.4060 Thousands.Tea Plantations and their maintenance costs till comencement of commercial production have been capitalised on prudent consideration of accepted accounting principles, simultaneously availing the permissible tax incentives and reliefs .

6.1 Sundry Debtors includes Rs.228 Thousand(Previous year Rs.244 Thousand)due since long . Pending the persuasive and other steps taken by the Company, these are considered good and recoverable.

7.1 Value of consumption of raw materials represents only green leaf purchaesd from third parties.

8.1 No provision has been made in the accounts for the present liability for future payment of gratuity to the employees of the Company in terms of the payment of Gratuity Act 1972 - amount unascertained, as the Company follows the practice of accounting for gratuity as and when paid

9.1 Prior Period Expense is the payment of Service Tax for month of March 2011.

9.2 The Department of Biotecnology, Government of West Bengal has sanctioned project for Biotechnological Studies in tea for Demonstration of New Tea Plants Genotypes in Company's site at Jalpaiguri District. During the year company has spend Rs.NIL (Previous year Rs.11 Thousand) on that project.

10.0 Contingent Liabilities not provided for (a) Disputed Income Tax liabilities for the Assessment Years 1995- 96 Rs.2465 thousands (Previous year Rs.4625 thousands). The Company filed rectification petition u/s.154 for the demand of Assessment Year 1995-96 and the same is pending with ACIT., (b) Bank Guarantee Rs.920 thousands (Previous year 920 thousands) (Fixed Deposit of Rs.604 thousands pledged as margin).(c) Interest claim of Rs.2197 thousand by Employees' Provident Fund Authority not acknowledged by the company as debt.However, the company has disposed of Rs. 1010 thousand (Rs.600 thousand as per the order of the H'onble High Court , Kolkata and Rs.410 thousand of its own.)

11.0 In view of brought forward losses, no provision for Tax has been made both under normal provision of I.T.Act and Minimum Alternate Tax (MAT) under section 115JB.

12.0 Balance confirmation from some Sundry Creditors and Sundry debtors are still awaited.

13.0 In respect of W.B.R.E. & P.E. Cess payable the Government of West Bengal has given opportunity to clear up the dues within 31.03.2013

14.0 Prior period item consist of following expenses/(income) :

Particulars of transactions and closing balances during the year: (Rs.in '000)

* Green leaf are harvested in the company's own garden as agricultural produce involving integrated activities of nursery, cultivation, growth etc. and utilized in the manufacture of tea and the value at the intermediate stages could not be ascertained.

Note : The remuneration paid/payable to Managing Director is the minimum remuneration in terms of Schedule XIII to the Companies Act, 1956.

15.0 Previous year's figures have been regrouped, rearranged and recast wherever necessary. As per our report of even date attached.

Note : 1. Cash & Cash Equivalents represents Cash and Bank Balances.

2. Figures shown in bracket shows cash outflow.

3. Adjustment for depreciation is net of excess depreciation of earlier years.

4. Previous year's Figures have been regrouped/rearranged wherever necessary.


Mar 31, 2010

1. Land includes Rs. 55.59 lacs (Previous year Rs. 55.25 lacs) in respect of which conveyance Doed has not been executed in the name of the Company.

2. No provision has been made in the accounts for the presant liability for future payment of grataity to the employees of the Company in terms of the payment of Gratuity Act, 1972 - amount unsscertained, as the Company follows the practice of accounting for gratulty as and when paid.

3. Total expenditure on salaries, wages & bonus (other than those mentioned in the Profit & Loss Account) Included under varuious heads in the Profit and Loss Account is Rs. 74.42 lacs (Previous year Rs. 50.35 lacs).

4. Contingent Liabilities not provided for (a) Disputed income Tax liabilities for the Assessment Year 1995-96 & 1998-99 Rs.4625 Lacs (previous year Rs. 46.25 lacs). The Company filed reclification petition u/s. 154 for the demand of Assessment year 1995-96 and the same is pending with ACIT. Further an appeal is being preferred against the demand for the Assessmant Year 1996-99 and the same is pending with CIT (Appeal), (b) Bank Guarantee Rs. 9.20 lacs (Previous year 9.20 lacs) (Fixed Deposit of Rs. 4.02 lacs Pledged as margin).

5.Sundry Creditors do not include any dues to micro, small and medium enterprises on account of principal amount together with interrest and accordingly no additional discolsures have been made. The above information regarding micre, small and medium enterprises has detemined to the extent such partles have been identified on the basis of information available with the company.

6.(a) Remission of Sales Tax was granted to the Company upto 30th October, 2004 under West Bengat State incontives Schemes and the Eligbility Cerrificate was issued for remission of Sales Rax. Remission of Sales Tax amounting to Rs. 11.09 lacs (Previous Year Rs.11.09 lacs) on tes sold in Auction by the Auctioneer Agents has not yet been received and has not been accounted for as it is under appeal.

(b) The Department of Biatechnology, Government of West Bengal has sanctioned Project for Blotechnological Studies in tea for Demonstration of New Tea Plants Genotypes in our site at Jaipaiguri District. Duting the year Company has spent Rs.3.81 lacs (previous year Rs. 4.37 lacs) on that project.

7. In view of brought toward losses, no prevision for Tax has been made noth under normal provision of T. Act and Minimum Altemate Tax (MAT) under section 115JB.

8. In respect of Provident & Alsled comprises of two Business segment namely cultivation. manufacture and sale of lea and and saling Agency market, Since two primary segments are identified, the segment report is finishing in terms of Accounting Standard 17 issued by CAI.

9. The Agency income of Rs. 170.02 lacs is shown net of expenses of Rs. 10.80 lacs directly attributable to the Agency Operation.

10. The calcuation of eamings per share is based on the profit/(loss) alter taxation of Rs. 105.24 lacs (previous year Rs. 42.66 lacs) and on 1,17,50,000 (previous year 1,17,50,000) nos. of fully paid Equity Shares.

11. Balance confirmation from some of the Sunday Creditors and Sundry Debtors are still awaited.

12. During the year expenses relating to maintenapce & plantation of young tea amounting to Rs. 16.16 lacs (Previous year Rs. 42.85 lacs), which are of revenue in narure, have been capotalized. As a result the profit for the year fixed assets and resorve and surpius at the year end have been overslated by Rs. 16.16 lacs. Tea Plantations and their maintenance colls still commencement of Commercial production have been capitalised on prudent consideration of accepted accounting principles, slmultaneously avalling the parmissible tax incentives and reliefs.

13. No provision has been made for diminution in value of long term investments, since such a decine is temporaty in nature in the opinion of the management.

14. Sundry Debtors and Advances include Rs. 2.32 lacs (Previous year Rs. 2.45 lacs) due since long are sonsidered good & receivable, against which necessary stpes for recovery are ponding.

15. Due to degerment of AMGR claim, Rs. 1.34 lacs (Previous year Rs 1.34 lacs) has been amortised to the Profit & Loss a/c for the year and consequently the profit for the year has been underateted to that exient.

16. In respect of W,B,R,E. & P,E Cess the Government of West Bengal vide gazetto. granted instatments to be paid within 31st March, 2011 in respect of dues of Rs. 2.25 lacs upto 31.03.2004 alongwith interest thorson which is not yet ascartained. Lavy of cass was withdrawn w.e.t 9th April, 2004 subject to the complance of the provisions.

17. Ralated Party Transactions

Relationship Name

Enterprises over which Key Management

Personnel have significant influence Tongant Tea Company Ltd.

Key Management Peraconet Mr. M.K. Daga

18. Total valued of stores & spare parts and pacing own garden as aricultural produce involving integrated activities of nursery. Cultivation, growth etc. and used in the manufacture of rea and the value at the intermadiate image could not be nacartained.

19. Previous years figures have been regrouped, rearranged and rocast wherever necessary.

As per our report of even date attached.


Mar 31, 2009

1. Land includes Rs.55.25 lacs (Previous year Rs.56.08 lacs) in respect of which conveyance Deed has not been executed in the name of the Company.

2. No provision has been made in the accounts for the present liability for future payment of gratuity to the employees o1 the Company in terms of the payment of Gratuity Act, 1972 - amount unascertained, as the Company follows the practice of accounting for gratuity as and when paid.

As regards Gratuity Liability, the Company is newly established in tea industry. Its Gratuity Liability, if any, during the year is being ascertained. However the Gratuity is contemplated to be accounted for on cash basis.

3. Total expenditure on salaries, wages & bonus (other than those mentioned in the Profit & Loss Account) included under various heads in the Profit and Loss Account is Rs.50.35 lacs (Previous year Rs.40.69 lacs).

4. Contingent Liabilities not provided for (a) Disputed Income Tax liabilities for the Assessment Years 1995-96 & 1998-99 Rs.46.25 Lacs (previous year Rs.26.32 lacs). The Company filed rectification petition u/s. 154 for the demand of Assessment Year 1995-96 and the same is pending with ACIT. Further an appeal is being preferred against the demand for the Assessment Year 1998-99 and the same is pending with CIT (Appeal), (b) Bank Guarantee Rs.9.20 lacs (Previous year 6.90 lacs)(Fixed Deposit of Rs.4.02 lacs pledged as margin).

5. Sundry Creditors do not include any dues to micro, small and medium enterprises on account of principal amount together with interest and accordingly no additional disclosures have been made. The above information regarding micro, small and medium enterprises has been determined to the extent such parties have been identified on the basis of information available with the company.

6. (a) Remission of Sales Tax was granted to the Company upto 30th October, 2004 under West Bengal State Incentives Schemes and the Eligibility Certificate was issued for remission of Sales Tax. Remission of Sales Tax amounting to Rs.11.09 lacs (Previous Year Rs.11.09 lacs) on tea sold in Auction by the Auctioneer Agents has not yet been received and has not been accounted for as it is under appeal. (b) 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. During the year Company has spent Rs.4.37 lacs on that project.

7. In view of brought forward losses, no provision for Tax has been made both under normal provision of I.T. Act and Minimum Alternate Tax (MAT) under section 115JB.

8. In respect of Provident & Allied Fund dues upto February, 2008, the instalment was granted by the Honble High Court, Kolkata.

9. The Companys operation comprises of only one Business segment namely cultivation, manufacture and sale of tea and one geographical segment namely sale of tea in the domestic market. Therefore, no separate segment is identifiable as required by Accounting Standard 17 issued by ICAI.

10. The calculation of earnings per share is based on the profit/(loss) after taxation of Rs.42.66 lacs {previous year Rs. 19.38 lacs} and on 1,17,50,000 (previous year 1,17,50,000) nos. of fully paid Equity Shares.

11. Balance confirmation from some of the Sundry Creditors and Sundry Debtors are still awaited.

12. During the year expenses relating to maintenance & plantation of young tea amounting to Rs.42.85 lacs (Previous year Rs.36.35 lacs) and interest of Rs.Nil (Previous year Rs.10.19 lacs), which are of revenue in nature, have been capitalized. As a result the profit for the year has been overstated by Rs.42.85 lacs. Tea Plantations and their maintenance costs till commencement of Commercial production have been capitalised on prudent consideration of accepted accounting principles, simultaneously availing the permissible tax incentives and reliefs.

13. No provision has been made for diminution in value of long term investments, since such a decline is temporary in nature in the opinion of the management.

14: Sundry Debtors and Advances include Rs.2.45 lacs (Previous year Rs.2.62 lacs) due since long are considered good, aganist which necessary steps for recovery are pending.

15. Due to deferment of AMGR claim Rs.1.34 lacs (Previous year Rs.1.34lacs) has been amortised to the Profit & Loss A/c for the year and consequently the profit for the year has been understated to that extent.

16. In respect of W.B.R.E. & RE. Cess the Government of West Bengal vide gazette, granted instalments to be paid within 31st March, 2009 in respect of dues of Rs.2.25 lacs upto 31.03.2004 alongwith interest thereon which is not yet ascertained. Levy of cess was withdrawn w.e.f. 9th April, 2004 subject to the compliance of the provisions.

17. Related Party Transactions -

Names of related parties and description of relationship

Relationship Name

Enterprises over which Key Management

Personnel have significant influence Tongani Tea Company Ltd.

Key Management Personnel Mr. M. K. Daga

18. Total value of stores & spare parts and packing material consumed. Indigenous -100% - Rs.3.97 lacs (Previous year - Indigenous - 100% - Rs.4.20 lacs).

19. Previous years figures have been regrouped, rearranged and recast wherever necessary. As per our report of even date attached.

 
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