Home  »  Company  »  Orient Beverages  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Orient Beverages Ltd. Company

Mar 31, 2015

1.01. System of Accounting :

Financial Statements have been prepared in accordance with the historical cost convention following accrual system of Accounting, Accepted Accounting Principles, Accounting Standards issued by I.C.A.I and relevant provisions of the Companies Act, 2013.

1.02. Revenue Recognition :

Sales : Sales are recognised in the accounts on passing the title of the goods.

Rental Income : Rental Income have been shown in the accounts as per the terms of Agreements with the tenants.

Other Income / Expenses : Other Income including sale of services and expenses are accounted for on accrual basis.

1.03. Investment :

Investments are stated at cost including the share stamp charges.

1.04. Fixed Assets :

Fixed Assets are stated at cost including direct expenses related thereto net of depreciation.

1.05. Depreciation :

The Company is providing depreciation on assets on straight line method based on useful lives of assets as specified under Schedule II to the Companies Act, 2013 on pro-rata basis with effect from 1st April 2014.No depreciation has been provided on the Silver Idol as no useful life for silver has been prescribed under Schedule II to the Companies Act, 2013. Silver being a precious metal and generally subject to appreciation, management considers no need for provision of depreciation on the same. Depreciation on properties on leasehold land has been charged on proportionate basis over the remaining period of Lease as under: Building at 225C, A. J. C. Bose Road, Kolkata – 5 Years Building at 50, Chowringhee Road, Kolkata – 1.5 years

1.06. Inventories :

Real Estate - Valued at lower of cost including other attributable expenses or market realisable value.

Shares - Valued at lower of cost or market value in case of quoted shares and at lower of cost or book value in case of unquoted shares.

Finished Goods - Finished goods has been valued at lower of cost or market realisable value.

Work-in- Progress - Work-in-progress has been valued at cost incurred up to the stage of completion.

Raw/ Packing Material - Valued at cost.

1.07. Amortisation of Pre-Operative and Deferred Revenue Expenses :

The pre-operative expenses are being amortised by 10 equal installments. The deferred revenue expenses are being amortised by 5 equal installments.

1.08. Employee Benefits :

I. Short Term Employee Benefits - All employee benefits payable within twelve months of rendering the service are recognised in the period in which the employee renders the related service.

II. Post Employment Benefits - Defined Contribution Plans :

a) Gratuity Plans :

Gratuity is payable to all eligible employees of the Company on death, permanent disablement and resignation in terms of the provisions of the Payment of Gratuity Act, 1972 or as per the Company's Scheme, whichever is more beneficial. Benefit would be paid at the time of separation based on the last drawn basic salary.

b) Leave Encashment :

Eligible employees can carry forward and encash leave up to death, permanent disablement and resignation subject to maximum accumulation allowed as applicable to the concerned division of the Company or individual employee, highest being up to 88 days.

Leave over and above accumulation allowed is liable to be encashed in the next year based on gross salary drawn in the last year.

III. Termination Benefits :

Termination Benefits are charged to the statement of Profit and Loss in the year in which they are incurred.


Mar 31, 2014

1.01. System of Accounting :

Financial Statements have been prepared in accordance with the historical cost convention following accrual system of Accounting, Accepted Accounting Principles, Accounting Standards issued by I.C.A.I and relevant provisions of the Companies Act, 1956.

1.02. Revenue Recognition :

Sales : Sales are recognised in the accounts on passing the title of the goods.

Rental Income : Rental Income have been shown in the accounts as per the terms of Agreements with the tenants.

Other Income / Expenses : Other Income including sale of services and expenses are accounted for on accrual basis.

1.03. Investment :

Investments are stated at cost including the share stamp charges.

1.04. Fixed Assets :

Fixed Assets are stated at cost including direct expenses related thereto net of depreciation.

1.05. Depreciation :

The Company is providing depreciation on assets including assets acquired in amalgamation on written down value method on pro-rata basis as per the rates prescribed under Schedule XIV to the Companies Act, 1956. No depreciation has been provided on Silver Idol as rate of depreciation has not been prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on Building on Leasehold Land (Shown under the head Non-Current Investments) has been charged on proportionate basis over the period of Lease.

1.06. Inventories :

Real Estate - Valued at lower of cost including other attributable expenses or market realisable value.

Shares - Valued at lower of cost or market value in case of quoted shares and at lower of cost or book value in case of unquoted shares.

Finished Goods - Finished goods has been valued at lower of cost or market realisable value.

Work-in-Progress - Work-in-progress has been valued at cost incurred up to the stage of completion.

Raw/ Packing Material - Valued at cost.

1.07. Amortisation of Deferred Revenue Expenses :

The deferred revenue expenses are being amortised by 5 equal installments.

1.08. Employee Benefits :

I. Short Term Employee Benefits - All employee benefits payable within twelve months of rendering the service are recognised in the period in which the employee renders the related service.

II. Post Employment Benefits - Defined Contribution Plans :

a) Gratuity Plans :

Gratuity is payable to all eligible employees of the Company on death, permanent disablement and resignation in terms of the provisions of the Payment of Gratuity Act, 1972 or as per the Company''s Scheme, whichever is more beneficial. Benefit would be paid at the time of separation based on the last drawn basic salary.

b) Leave Encashment :

Eligible employees can carry forward and encash leave up to death, permanent disablement and resignation subject to maximum accumulation allowed up to 88 days or as per terms of employment with the individual employee.

In case of employees of Kolkata and Ranchi Division, the leave over and above accumulation allowed is liable to be lapsed. Benefits would be paid only at the time of separation based on the last drawn gross salary.

In case of employees of Howrah Division, accumulated leave in excess of 42 days or as per terms of employment with the individual employee are encashed in the next year based on gross salary drawn in the last year.

III. Termination Benefits :

Termination Benefits are charged to the statement of Profit and Loss in the year in which they are incurred.

2.3.1 Loan of " 19,96,889/- (Previous year " 37,50,000/-) from United Bank of India is Secured by assignment of rent receivable from the lender Bank itself and personal guarantee of a Director of the Company up to " 37,50,000/-. The loan is repayable in 84 installments. The last installment is payable on 20th March, 2020.

2.3.3 Loans from entities other than banks includes :

(a) " 44,44,187/- (Previous year " 23,76,550/-) from Reliance Capital Ltd. is secured by hypothecation of certain machineries financed by them. Loans are repayable in equated monthly installments. Last installment is payable on 10th January, 2017.

(b) " 3,42,68,074/- (Previous year " 4,92,12,799/-) from L&T Finance Ltd. is secured by mortgage of immovable properties of the Company situated at NH- 6, Salap More, Howrah, portion of premises Nos. 50, Chowringhee Road, Kolkata and 225C, A. J. C. Bose Road, Kolkata, hypothecation of raw materials, work-in-progress, finished goods, movable properties such as plant and machinery, equipments etc., book debts and personal guarantee of two Directors of the Company up to " 6,00,00,000/-. Last installment is payable on 5th September, 2016.

(c) " 1,34,05,840/- (Previous year " NIL) from Magma Fincorp Ltd. is secured by pledge of 8,25,000 equity shares of the Company held by Directors/ Promoters and personal guarantee of Director/ Promoters of the Company. The loan is repayable in equated monthly installments. Last installment is payable on 7th August, 2017.

2.28 Estimated amount of contracts remaining to be executed on capital account is "11,22,76,870/- (Previous Year " 26,52,688/-) against which " 49,72,360/-(Previous Year " 4,63,149/-) has been paid as advance.

2.29 Contingent Liabilities not provided for:

(a) Additional Excise Duty amounting to " 26,98,597/- (Previous Year " 26,98,597/-) demanded by the Excise Authorities has not been provided in the Books of Account although an amount of " 20,46,303/- (Previous Year " 20,46,303/-) has been deposited with the Central Excise Authorities as per High Court Order. The matter is subjudiced pending decision by the Central Excise Tribunal, neither adjustment for the amount deposited nor provision for additional Excise Duty has been made.

(b) Interest and penalty of " 82,23,782/- (Previous Year " 58,53,873/-) of Kolkata Municipal Corporation taxes of premises no. 50, Chowringhee Road, Kolkata, the valuation of which has been disputed by the Company and the matter is pending before Hon''ble High Court at Calcutta.

(c) Interest and penalty of " 4,83,525/- (Previous Year " 3,07,698/-) of Kolkata Municipal Corporation taxes of premises no. 225C, A. J. C. Bose Road, Kolkata, which has been disputed with Kolkata Municipal Corporation as the Company has paid certain amount in waiver scheme and decision of the same is pending.

2.30 (a) One of the tenants of the Company namely M/s Income Tax Appellate Tribunal is not paying Service Tax on Rent since the same has came in to effect. The Company is liable to collect a sum of " 46,84,664/- (Previous Year " 39,43,202/-) from said M/s Income Tax Appellate Tribunal towards Service Tax on Rent for the period 01.06.2007 to 31.03.2014 and remit the same to the Government account. The Company has duly provided the said Service Tax liability in its books of account. The Company has filed a writ petition before the Hon''ble High Court at Calcutta for recovery of Service Tax on Rent from M/s Income Tax Appellate Tribunal. The matter is subjudiced pending decision by the Hon''ble High Court at Calcutta.

(b) Annual Value of one property of the Company situated at 50, Chowringhee Road, Kolkata was revised by the Kolkata Municipal Corporation with retrospective effect from 1st July, 2006 on 15.06.2010. The Company has disputed the said valuation by filing a writ petition before the Hon''ble High Court at Calcutta praying for a fresh valuation. The Company is not paying municipal tax and liability on this account of " 1,25,42,889/- (Previous Year " 1,06,00,390/-) up to 31.03.2014 has been duly provided in the books of account. The matter is subjudiced, pending decision by the Hon''ble High Court at Calcutta.


Mar 31, 2013

1.01. System of Accounting :

Financial Statements have been prepared in accordance with the historical cost convention following accrual system of Accounting, Accepted Accounting Principles, Accounting Standards issued by I.C.A.I and relevant provisions of the Companies Act, 1956.

1.02. Revenue Recognition :

Sales : Sales are recognised in the accounts on passing the title of the goods.

Rental Income : Rental Income have been shown in the accounts as per the terms of Agreements with the tenants.

Other Income / Expenses : Other Income including sale of services and expenses are accounted for on accrual basis.

1.03. Investment :

Investments are stated at cost including the share stamp charges.

1.04. Fixed Assets :

Fixed Assets are stated at cost including direct expenses related thereto net of depreciation.

1.05. Depreciation :

The Company is providing depreciation on assets including assets acquired in amalgamation on written down value method on pro-rata basis as per the rates prescribed under Schedule XIV to the Companies Act, 1956. No depreciation has been provided on Silver Idol as rate of depreciation has not been prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on Building on Leasehold Land (Shown under the head Non-Current Investments) has been charged on proportionate basis over the period of Lease.

1.06. Inventories :

Real Estate - Valued at lower of cost including other attributable expenses or market realisable value.

Shares - Valued at lower of cost or market value in case of quoted

Shares otherwise at cost or book value wherever applicable.

Finished Goods - Finished goods has been valued at lower of cost or market realisable value.

Work-in-Progress - Work-in-progress has been valued at cost incurred up to the stage of completion.

Raw/ Packing Material - Valued at cost.

1.07. Amortisation of Deferred Revenue Expenses :

The deferred revenue expenses are being amortised by 5 equal installments.

1.08. Employee Benefits :

I. Short Term Employee Benefits - All employee benefits payable within twelve months of rendering the service are recognised in the period in which the employee renders the related service.

II. Post Employment Benefits - Defined Contribution Plans :

a) Gratuity Plans :

Gratuity is payable to all eligible employees of the Company on death, permanent '' disablement and resignation in terms of the provisions of the Payment of Gratuity Act, 1972 or as per the Company''s Scheme, whichever is more beneficial. Benefit would be paid at the time of separation based on the last drawn basic salary.

-b) Leave Encashment:

Eligible employees can carry forward and encash leave up to death, permanent disablement and resignation subject to maximum accumulation allowed up to 88 days or as per terms of employment with the individual employee.

In case of employees of Real Estate Division, the leave over and above accumulation allowed is liable to be lapsed. Benefits would be paid only at the time of separation based on the last drawn gross salary.

In case of employees of Packaged Drinking Water Division, accumulated leave in excess of 42 days or as per terms of employment with the individual employee are encashed in the next year based on gross salary drawn in the last year.

III. Termination Benefits :

Termination Benefits are charged to the statement of Profit and Loss in the year in which they are incurred.


Mar 31, 2012

1.01. System of Accounting :

Financial Statements have been prepared in accordance with the historical cost convention following accrual system of Accounting' Accepted Accounting Principles' Accounting Standards issued by I.C.A.I and relevant provisions of the Companies Act' 1956.

1.02. Revenue Recognition :

Sales : Sales are recognised in the accounts on passing the title of

the goods.

Rental Income : Rental Income have been shown in the accounts as per The terms of Agreements with the tenants.

Other Income / Expenses : Other Income including sale of services and expenses are accounted for on accrual basis.

1.03. Investment :

Investments are stated at cost including the share stamp charges.

1.04. Fixed Assets :

Fixed Assets are stated at cost including direct expenses related thereto net of depreciation.

1.05. Depreciation :

The Company is providing depreciation on assets including assets acquired in amalgamation on written down value method on pro-rata basis as per the rates prescribed under Schedule XIV to the Companies Act' 1956. No depreciation has been provided on Silver Idol as rate of depreciation has not been prescribed in Schedule XIV to the Companies Act' 1956. Depreciation on Building on Leasehold Land (Shown under the head Investments) has been charged on proportionate basis over the period of Lease.

1.06. Inventories :

Real Estate - Valued at lower of costlncluding other attributable expenses or market realisable value.

Shares - Valued at lower of cost or market value in case of quoted

Shares otherwise at cost or book value wherever applicable.

Finished Goods - Finished goods has been valued at lower of cost or market

realisable value.

Work-in-Progress - Work-in-progress has been valued at cost incurred up to the

stage of completion.

Raw/ Packing Material - Valued at cost.

1.07. Amortisation of Deferred Revenue Expenses :

The deferred revenue expenses are beind' amortised by 5 equal installments.

1.08. Employee Benefits :

I. Short Term Employee Benefits - All employee benefits payable within twelve months of rendering the service are recognised in the period in which the employee renders the related service.

II. Post Employment Benefits - Defined Contribution Plans :

a) Gratuity Plans :

Gratuity is payable to all eligible employees of the Company on death' permanent disablement and resignation in terms of the provisions of the Payment of Gratuity Act or as per the Company's Scheme' whichever is more beneficial. Benefit would be paid at the time of separation based on the last drawn basic salary.

b) Leave Encashment :

Eligible employees can carry forward and encash leave up to death' permanent disablement and resignation subject to maximum accumulation allowed up to 88 days or as per terms of employment with the individual employee.

In case of employees of Real Estate Division' the leave over and'above acpumulation allowed is liable to be lapsed. Benefits would be paid ohly'at the'time'of separation based on the last drawn gross salary.

In case of employees of Packaged Drinking Water Division' accumulated leave in excess of 42 days or as per terms of employment with the individual employee are encashed in the next year based on gross salary drawn in the last year.

III. Termination Benefits :

Termination Benefits are charged to the statement of Profit and Loss in the year in which they are incurred.


Mar 31, 2010

1.01. System of Accounts:

Financial Statements have been prepared in accordance with the thistorical cost convernlion following accrual system of Accounting Principlos, Accounting Stanrdards issued I.C.A.I and relenvant provisions of the Companies Act, 1956.

1.02 Revenue Recognition :

Sales : Sales are recognized in the accounts on passing title of the goods.

Rental Income : Rental Income have been shown in the accounts as per the terms of Agreements with the tenants.

Other Income/ Expenses : Other Income including sale of sevires and expenses are accounted for on accrual basis.

1.03. Investments :

Investments are stated at cost including the share stamp charges.

1.04. Fixed Assete :

Fixed Asseis are stated at cost including direct expenses related thereto of depreciation.

1.05. Depreciation :

The Company is providing depreciation on assets including assets acquired in amalgamation on writen down value method on pro-rala basis as per the rates prescribed under Schedule XIV to the Companies Act, 1956. No depreciation has been provided on Silver [do] as rate of depreciation has not been prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on Building on Leasehold Land (Shown under the head Investments ) has been charged on proportionate basis over the period of Lease.

1.06. Inventories

Real Estate - Valued at lower of cost including other attributable expernses or market realizable value.

Shares - Valued at lower of cost or market value in case of quoted Shares otherwise at cost or book value wherever applicable.

Finished Goods - Finished goods has been valued at lower of cost or market realisable value.

Work in Progress - Work in progress has been valued at cost incurred up to the stage of completion.

Raw/Packing Materail - Valued at cost.

1.07 Amortisation of Deferred Revenue Expenses :

The deferred revenue expenses are being amorlised by 5 equal installments .

1.08. Employee Benefits :

I. Short Term employee benefits:- All employee benefits payable with in twelve months of rendering the service are recognized in the peroid in which the employee renders the related service.

II. Post Employment Benefits:-

Defined Contribution pians:

a) Gratuity Plans:

Gratuity is payable to all eligible employees of the Company on death, permanent disablement and refignation in terms of the provisions of the Payment of Gratuity Act or as per the Companys Scheme, whichever is more beneficial. Benefit would at the time of separalion based on the last drawn basic salary.

b) Leave Encashment :

Eligible employees can carry forward and encash leave up to death, permanent disablement and resignation subject to maximum accumulation allowed up to 88 days or as per terms of employment with the individual employee. The leave over and above accumulation allowed is liable to be lapsed. Benefits would be paid only at the time of separation based on the last drawn gross salary.

III. Termination Benefits :

Termination Benefits are changed to the Profit and Loss Account In the year in which they are incurred.

 
Subscribe now to get personal finance updates in your inbox!