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Accounting Policies of Peria Karamalai Tea & Produce Company Ltd. Company

Mar 31, 2015

1. Basis of Accounting

The financial statements are prepared under historical cost convention and on accrual basis and going concern basis.

2. Revenue Recognition

Revenue from sale transaction is recognized as and when significant risks and rewards attached to the ownership in the goods is transferred to the buyer. Revenue from other sources and expenses are recognized on accrual basis.

3. Fixed Assets

Fixed assets are stated at cost of acquisition or construction less accumulated depreciation. All costs relating to acquisition / installation are capitalized. Expenditure on development and new planting are capitalized.

4. Depreciation

Depreciation is provided on Straight Line Method adopting the period of useful life and residual value as prescribed under Schedule II to the Companies Act, 2013 in respect of Plant and Machinery, Wind Energy Generators and other assets.

In respect of fixed assets where the remainder of useful life is nil, no depreciation is considered since in all such cases the carrying value is less than 5% of its respective cost as on 31.03.2014.

5. Investments

Investments are recorded at cost inclusive of brokerage and stamp duty. Long Term investments are not adjusted for diminution in their market value if, in the opinion of the management, such diminution is temporary in nature.

6. Inventories

Stock of plantation produces of tea and pepper are valued at lower of cost and net realizable value. Other inventories are valued at average cost.

7. Sale of Trees

Sale of trees given on contract is accounted on realization.

8. Employee benefits:

I. Short Term

Short term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

II. Post Retirement

Post Retirement benefits comprise of Provident Fund, Superannuation Fund and Gratuity which are accounted as follows:

A. Provident Fund

This is defined contribution plan, and contributions are made to the Fund are charged to revenue. The Company has no further obligations for future provident fund benefits other than annual contributions.

B. Superannuation Fund

This is a defined contribution plan. The company contributes a sum equivalent to defined contribution plan for eligible employees' salary towards superannuation fund administered by the Trustees and managed by Life Insurance Corporation of India. The Company has no further obligations for future superannuation benefits other than its annual contributions and recognizes such contributions as expense in the year incurred.

C. Gratuity Fund

This is a defined contribution plan. The Company makes annual contributions to a Gratuity Fund administrated by Life Insurance Corporation of India through the trust.

III. Long Term

Leave Encashment

This is a defined contribution plan. The Company makes annual contribution to the Fund administered by Life Insurance Corporation of India. The Company has no further obligations for future leave encashment other than its annual contribution and recognizes such contributions as expense in the year incurred.

9. Current Tax

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of Income Tax Act 1961.

10. Deferred Tax

Deferred tax is recognized on timing differences being difference between the taxable income and the accounting income that originates in one period and capable of reversal in one or more subsequent periods.

11. Impairment of Assets

Impairment is recognized to the extent that the recoverable amount of assets is less than the carrying value and is charged to Profit & Loss Account.

12. Wind Power

The value of power generated by Wind Energy Generators and exported to the Grid is treated as reduction in the power charges to the extent it is adjusted in the bills by TNEB and the surplus, if any, as sale of electricity.

B. OTHER NOTES TO FINANCIAL STATEMENTS

a) The Company has obtained a stay of proceedings from the Honorable High Court of Madras on 24th March 2006 against a proposition notice from the Commercial Tax Department for levy of sales tax on export sales effected through auction centers. The matter is pending and in common with the other tea planting companies, no account has been taken of the contingent liability.


Mar 31, 2014

1. Basis of Accounting

The financial statements are prepared under historical cost convention and on accrual basis and going concern basis.

2. Revenue Recognition

Revenue from sale transaction is recognized as and when significant risks and rewards attached to the ownership in the goods is transferred to the buyer. Revenue from other sources and expenses are recognized on accrual basis.

3. Own Fixed Assets

Fixed assets are stated at cost of acquisition or construction less accumulated depreciation. All costs relating to acquisition / installation are capitalized. Expenditure on development and new planting are capitalized.

4. Depreciation

Depreciation is provided on Straight Line basis in accordance with Schedule XIV of Companies Act, 1956 except field machineries which are depreciated over two year period.

5. Investments

Investments are recorded at cost inclusive of brokerage and stamp duty. Long Term investments are not adjusted for diminution in their market value if, in the opinion of the management, such diminution is temporary in nature.

6. Inventories

Stock of plantation produces of tea and pepper are valued at lower of cost and net realizable value. Other inventories are valued at average cost.

7. Sale of Trees

Sale of trees given on contract is accounted on realization.

8. Employee benefits:

I. Short Term

Short term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

II. Post Retirement

Post Retirement benefits comprise of Provident Fund, Superannuation Fund and Gratuity which are accounted as follows:

A. Provident Fund

This is defined contribution plan, and contributions are made to the Fund are charged to revenue. The Company has no further obligations for future provident fund benefits other than annual contributions.

B. Superannuation Fund

This is a defined contribution plan. The company contributes a sum equivalent to defined contribution plan for eligible employees'' salary towards superannuation fund administered by the Trustees and managed by Life Insurance Corporation of India. The Company has no further obligations for future superannuation benefits other than its annual contributions and recognizes such contributions as expense in the year incurred.

C. Gratuity Fund

This is a defined contribution plan. The Company makes annual contributions to a Gratuity Fund administrated by Life Insurance Corporation of India through the trust.

III. Long Term

Leave Encashment

This is a defined contribution plan. The Company makes annual contribution to the Fund administered by Life Insurance Corporation of India. The Company has no further obligations for future leave encashment other than its annual contribution and recognizes such contributions as expense in the year incurred.

9. Current Tax

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of Income Tax Act 1961.

10. Deferred Tax

Deferred tax is recognized on timing differences being difference between the taxable income and the accounting income that originates in one period and capable of reversal in one or more subsequent periods.

11. Impairment of Assets

Impairment is recognized to the extent that the recoverable amount of assets is less than the carrying value and is charged to Profit & Loss Account.

12. Wind Power

The value of power generated by Wind Energy Generators and exported to the Grid is treated as reduction in the power charges to the extent it is adjusted in the bills by TNEB and the surplus, if any, as sale of electricity.


Mar 31, 2013

1. Basis of Accounting

The financial statements are prepared under historical cost convention and on accrual basis and going concern basis.

2. Revenue Recognition

Revenue from sale transaction is recognized as and when significant risks and rewards attached to the ownership in the goods is transferred to the buyer. Revenue from other sources and expenses are recognized on accrual basis.

3. Own Fixed Assets

Fixed assets are stated at cost of acquisition or construction less accumulated depreciation. All costs relating to acquisition / installation are capitalized. Expenditure on development and new planting are capitalized.

4. Depreciation

Depreciation is provided on Straight Line basis in accordance with Schedule XIV of Companies Act, 1956 except field machineries which are depreciated over two year period.

5. Investments

Investments are recorded at cost inclusive of brokerage and stamp duty. Long Term investments are not adjusted for diminution in their market value if, in the opinion of the management, such diminution is temporary in nature.

6. Inventories

Stock of plantation produces of tea and pepper are valued at lower of cost and net realizable value. Other inventories are valued at average cost.

7. Sale of Trees

Sale of trees given on contract is accounted on realization.

8. Employee benefits:

I. Short Term

Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of profit and loss of the year in which the related service is rendered.

II. Post Retirement

Post Retirement benefits comprise of Provident Fund, Superannuation Fund and Gratuity which are accounted as follows:

A. Provident Fund

This is a defined contribution plan, and contributions made to the Fund are charged to revenue. The Company has no further obligations for future provident fund benefits other than annual contributions.

B. Superannuation Fund

This is a defined contribution plan. The company contributes a sum equivalent to defined contribution plan for eligible employees'' salary towards superannuation fund administered by the Trustees and managed by Life Insurance Corporation of India. The Company has no further obligations for future superannuation benefits other than its annual contributions and recognizes such contributions as expense in the year incurred.

C. Gratuity Fund

This is a defined contribution plan. The Company makes annual contributions to a Gratuity Fund administrated by Life Insurance Corporation of India through the trust.

III. Long Term

Leave Encashment

This is a defined contribution plan. The Company makes annual contribution to the Fund administered by Life Insurance Corporation of India. The Company has no further obligations for future leave encashment other than its annual contribution and recognizes such contributions as expense in the year incurred.

9. Current Tax

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of Income Tax Act 1961.

10. Deferred Tax

Deferred tax is recognized on timing differences being difference between the taxable income and the accounting income that originates in one period and capable of reversal in one or more subsequent periods.

11. Impairment of Assets

Impairment is recognized to the extent that the recoverable amount of assets is less than the carrying value and is charged to Statement of Profit & Loss.

12. Wind Power

The value of power generated by Wind Energy Generators and exported to the Grid is treated as reduction in the power charges to the extent it is adjusted in the bills by TNEB and the surplus, if any, as sale of electricity.


Mar 31, 2012

1. Basis of Accounting

The financial statements are prepared under historical cost convention and on accrual basis and going concern basis.

2. Revenue Recognition

Revenue from sale transaction is recognized as and when significant risks and rewards attached to the ownership in the goods is transferred to the buyer. Revenue from other sources and expenses are recognized on accrual basis.

3. Own Fixed Assets

Fixed assets are stated at cost of acquisition or construction less accumulated depreciation. Ail costs relating to acquisition / installation are capitalized. Expenditure on development and new planting are capitalized.

4. Depreciation

Depreciation is provided on Straight Line basis in accordance with Schedule XIV of Companies Act, 1956 except field machineries which are depreciated over three year period.

5. Investments

Investments are recorded at cost inclusive of brokerage and stamp duty. Long Term investments are not adjusted for diminution in their market value if, in the opinion of the management, such diminution is temporary in nature.

6. Inventories

Stock of plantation produces of tea and pepper are valued at lower of cost and net realizable value. Other inventories are valued at average cost.

7. Sale of Trees

Sale of trees given on contract is accounted on realization.

8. Employee benefits:

I. Short Term

Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of profit and loss of the year in which the related service is rendered.

II. Post Retirement

Post Retirement benefits comprise of Provident Fund, Superannuation Fund and Gratuity which are accounted as follows:

A. Provident Fund

This is defined contribution plan, and contributions are made to the Fund are charged to revenue. The Company has no further obligations for future provident fund benefits other than annual contributions.

B. Superannuation Fund

This is a defined contribution plan. The company contributes a sum equivalent to defined contribution plan for eligible employees' salary towards superannuation fund administered by the Trustees and managed by Life Insurance Corporation of India. The Company has no further obligations for future superannuation benefits other than its annual contributions and recognizes such contributions as expense in the year incurred.

C. Gratuity Fund '

This is a defined contribution plan. The Company makes annual contributions to a Gratuity Fund administrated by Life Insurance Corporation of India through the trust.

III. Long Term

Leave Encashment

This is defined contribution plan. The Company makes annual contribution to the Fund administered by Life Insurance Corporation of India. The Company has no further obligations for future leave encashment other than its annual contribution and recognizes such contributions as expense in the year incurred.

9. Current Tax

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of Income Tax Act 1961.

10. Deferred Tax

Deferred tax is recognized on timing differences being difference between the taxable income and the accounting income that originates in one period and capable of reversal in one or more subsequent periods.

11. Impairment of Assets

Impairment is recognized to the extent that the recoverable amount of assets is less than the carrying value and is charged to Statement of Profit & Loss.

12. Wind Power

The value of power generated by Wind Energy Generators and exported to the Grid is treated as reduction in the power charges to the extent it is adjusted in the bills by TNEB and the surplus, if any, as sale of electricity.

 
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