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Notes to Accounts of Terai Tea Company Ltd.

Mar 31, 2015

1. EARNINGS AND EXPENDITURE IN FOREIGN EXCHANGE- (Rs, Lakhs)

i. Earnings : Sales (FOB Value): Rs, Nil (Rs, NIL)

ii. Expenditure (Others) (Rs, Lakhs): Rs, 5.60 (Rs, 9.45)

2. CAPITAL AND OTHER COMMITMENTS

At 31st March 2015, the Company has committed of Rs, Nil (Rs, NIL) relating to purchase of Plant & Machinery.

3. The Company has capitalized during the year the following expenses of revenue nature to the cost of fixed assets. Consequently expenses disclosed under the respective Notes are net of amounts capitalized by the company-

4. CONTINGENT LIABILITY NOT PROVIDED FOR-

a. In respect of Outstanding Bank Guarantees amounting to Rs, 97.68 lakhs (Rs, 115.807 Lakhs)

b. Demand for Agricultural Income Tax aggregating Rs, 8.70 Lakhs (Rs, 30.52 Lakhs) being disputed demand and appeals pending

c. VAT & Sales Tax Demand on Assessment aggregating Rs, 154.65 Lakhs (Rs, 154.65 Lakhs) amounts being disputed.

5. The Company acquired by way of purchase of Dharnipur Tea Estate as a "Going Concern" from its owner Sri Dhirendra Nath Bhowmick (since deceased) and Dharnipur Tea Industries (P) Ltd. as confirming party and the Deed of Conveyance was duly executed and registered in the name of the Company. The said Deed of Conveyance was cancelled in view of pending dispute between the seller and another party. However, the agreement for purchase of the said Tea Estate subsists and is subject matter of a specific performance suit pending before Hon'ble Calcutta High Court. The Company is not in possession of the said Tea estate and has accordingly not accounted for the profit and/or loss on account of the operation or ownership of the said Tea Estate. The value of Dharnipur Tea estate represents the costs paid at the time of purchase and the legal expenses incurred therefore.

6. The Company acquired certain interest in a plot of land at Bangalore for which registration in the name of the company has not been done. All expenses of litigation in respect of the said land are considered as deemed cost of land.

7. The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amounts unpaid as at the year- end together with interest paid / payable under this Act have not been given.


Mar 31, 2014

1. No provision for contingent liability in respect of the following has been made in the accounts- Outstanding Bank Guarantees amounting to - IIS.80 Lakhs (- 86.61 lakhs)

2. The company has accounted for Agricultural Income Tax on Cash Basis. Total Agricultural Income Tax liability including interest payable thereon not accounted for aggregate - 30.S2 lakhs. However, total demand is disputed and case is pending at West Bengal Tax Tribunal.

3. The Company acquired by way of purchase Dharnipur Tea Estate as a going concern from its owner Sri Dhirendra Nath Bhowmick (since deceased) and Dharnipur Tea Industries (P) Ltd. as confirming party and the Deed of conveyance was duly executed and registered in the name of the Company. The said Deed of Conveyance was cancelled in view of pendin g dispute between the seller and another party. However the agreement for purchase of the said Tea Estate subsists and is subject matter of a specific performance suit pending before Hon''ble Calcutta High Court. The Company is not in possession of the said Tea estate and has accordingly not accounted for the profit and/or loss on account of the operation or ownership of the said Tea Estate. The value of Dharnipur Tea estate represents the costs paid at the time of purchase and the legal expenses incurred therefore.

4. The Company acquired certain interest in a plot of Land at Bangalore for which registration in the name of the Co. has not been done. All expenses of litigation in respect of the said land are considered as deemed cost of land.

5. As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosure of transactions with the related parties as defined in the Accounting Standard are given below:

i) List of Related Parties with whom transactions have taken place and relationships :

Name of the Related Party Name of Relationship

1 East Indian Produce Limited

2 Jaldacca Tea Plantations Private Limited

3 Abhijit Tea Company Private Limited

4 Terai Infrastructures Limited

5 Terai Ispat & Trading Limited

6 Terai Dooars Tea Company Private Limited

7 Sayedabad Tea Company Limited Associate Companies

8 Terai Jute Private Limited

9 Terai Financial Services Private Limited

10 The Kharibari Tea Company Limited

11 Terai Overseas Limited

12 Terai Distilleries Ltd.

13 Terai Resorts & Country Club Pvt. Ltd.

14 New Darjeeling Union Tea Co. Ltd.

15 Amit Paridhan (P) Ltd

16 Kanchanview Tea Estate Enterprises of Key Management Persons

17 Ajit Kumar Agarwala & Others (HUF)

18 Sri Ajit Kumar Agarwala Key Management persons

19 Smt. Shashikala Agarwala

6. The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amounts unpaid as at the years- end together with interest paid / payable under this Act have not been given.


Mar 31, 2013

Note 1: Corporate information

Terai Tea Co Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange. The company is engaged in the manufacturing and selling of Tea trading in Merchandise.

Note 2: Basis of preparation

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis and under the historical cost convention except for land & plantations, building and plant & machinery acquired before 1st April, 1994 that are carried at revalued amounts. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except for change in the accounting policy explained below.

3. Earnings and expenditure in Foreign Exchange- (Rs. Lakhs)

i. Earnings: Sales (FOB Value) : Rs. Nil (Rs. NIL) ii. Expenditure (Others) : Rs. 15.47 (Rs.6.43)

4. Capital and Other Commitments

At 31 st March 2013, the company has commitment of Rs. 1.84 lakh relating to purchase of Plant & Machinery.

5. The Company has capitalized during the year the following expenses of revenue nature to the cost of fixed assets. Consequently expenses disclosed under the respective Notes are net of amounts capitalized by the company-

6. No provision for contingent liability in respect of the following has been made in the accounts- i. Outstanding Bank Guarantees amounting to Rs. 86.61 Lakhs (Rs. 70.61 Lakhs)

7. The company has accounted for Agricultural Income Tax on cash basis. Total Agricultural Income Tax liability including interest payable thereon not accounted for aggregate Rs. 30.52 lakhs. However, total demand is disputed and case is pending at West Bengal Tax Tribunal.

8. The Company acquired by way of purchase Dharnipur Tea Estate as a going concern from its owner Sri Dhirendra Nath Bhowmick (since deceased) and Dharnipur Tea Industries (P) Ltd. as confirming party and the Deed of conveyance was duly executed and registered in the name of the Company. The said Deed of Conveyance was cancelled in view of pending dispute between the seller and another party. However the agreement for purchase of the said Tea Estate subsists and is subject matter of a specific performance suit pending before Hon''ble Kolkata High Court. The Company is not in possession of the said Tea estate and has accordingly not accounted for the profit and/or loss on account of the operation or ownership of the said Tea Estate. The value of Dharnipur Tea estate represents the costs paid at the time of purchase and the legal expenses incurred therefore.

9. The Company acquired certain interest in a plot of land at Bangalore for which registration in the name of the company has not been done. All expenses of litigation in respect of the said land are considered as deemed cost of land.

10. As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosure of transactions with the related partie as defined in the Accounting Standard are given below:

11. Directors Remuneration

The increase in the remuneration of the Managing Director from Rs. 15 lacs to 25 lacs w.e.f 1st April, 2012. The said increased in the Managing Director remuneration is authorized by the Board of Directors in their meeting held on 2nd day of November, 2012 and appropriate form with MCA-21 have been filed. However the increase in remuneration is subject to approval of the shareholder in the ensuring Annual General Meeting.

12. The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid / payable under this Act have not been given.


Mar 31, 2012

Note 1: Corporate Information

Terai Tea Co Limited is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange. The company is engaged in the manufacturing and selling of Tea.

Note 2: Basis of Preparation

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis and under the historical cost convention except for land & plantations, building and plant & machinery acquired before 1st April, 1994 that are carried at revalued amounts. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except for change in the accounting policy explained below.

a. Terms/ Rights attached to Equity Shares

The Company has only one class of Equity Shares having a par value of R 10 per Share. Each holder of Equity Share is entitled to one vote per Share.The Company declares and pays dividends in Indian rupees.The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of the Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all Preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the Shareholders

As per the Records of the Company, including its Register of Shareholders/Members and other declarations received from Shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

Term Loan referred above to the extent of :

a. Term Loan from Central Bank of India of R 490 lakh carries interest @ Base Rate plus 1.75% p.a. The Loan is repayable in 20 equal quarterly installments after 24 months moratorium period. The Loan is secured by bank's charge on replantation on areas having tea bushes of age group 50 years and above in the Company's Bagdogra Tea Estate and also guaranteed by its Directors Mr. Ajit Kumar Agarwala and Mrs. Shashikala Agarwala.

b. Term Loan from Axis Bank of R 33.57 lakh is secured against hypothecation of Car and carries interest @ 10.43 p.a.on a monthly reducing basis and is repayable in 60 equal monthly installments including interest.

c. Unsecured Corporate Loan from UCO Bank of R 900 lakh carries interest @ BPLR minus 1.5% p.a. The loan is repayable at the end of two years moratorium period. The Loan is guaranteed by its Directors Mr. Ajit Kumar Agarwala and Mrs. Shashikaka Agarwala.

d. Unsecured Term Loan of R1418.83 lakhs from related parties and other are due for repayment after 3 years of deposit and carries no interest.

a. Working Capital loans are against Bank's exclusive 1st charge by Hypothecation of Stocks of Finished Goods, Raw Materials and Stores and Book Debts and Equitable Mortage of Land and Building in Tea Garden and Tea Factory and guaranteed by its Directors Mr. Ajit Kumar Agarwala and Mrs. Shashikala Agarwala. CC limit from Bank of India carries interest @ BR plus 1.75% and from Central Bank of India carries interest @ BR plus 1.75%. b Unsecured Term Loan of R 59.99 lakh from related parties and other are due for repayment within one year and carries no interest.

3. Capital and other commitments

As at 31st March 2012, the Company has committed of R 7.9 lakh relating to purchase of Plant & Machinery.

4. The Company has Capitalized during the year the following expenses of revenue nature to the cost of fixed assets. Consequently expenses disclosed under the respective Notes are net of amounts capital- ized by the Company-

5. No provision for contingent liability in respect of the following has been made in the accounts-

i. Outstanding Bank Guarantees amounting to r 70.61 Lacs (r 70.61 lacs)

6. The Company has accounted for Agricultural Income Tax on cash basis. Total Agricultural Income Tax liability including interest payable thereon not accounted for aggregate r 38.97 lakhs. However, total demand is disputed and cases are pending at West Bengal Tax Tribunal.

7. The Company acquired by way of purchase Dharnipur Tea Estate as a going concern from its owner Sri Dhirendra Nath Bhowmick (since deceased) and Dharnipur Tea Industries (P) Ltd. as confirming party and the Deed of conveyance was duly executed and registered in the name of the Company. The said Deed of Conveyance was cancelled in view of pending dispute between the seller and another party. However the agreement for purchase of the said Tea Estate subsists and is subject matter of a specific performance suit pending before Hon'ble Calcutta High Court. The Company is not in possession of the said Tea Estate and has accordingly not accounted for the profit and/or loss on account of the operation or ownership of the said Tea Estate. The value of Dharnipur Tea estate represents the costs paid at the time of purchase and the legal expenses incurred therefore.

8. The Company acquired certain interest in a plot of land at Bangalore for which registration in the name of the Company has not been done. All expenses of litigation in respect of the said land are considered as deemed cost of land.

9. As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclo- sure of transactions with the related parties as defined in the Accounting Standard are given below :

10. The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid / payable under this Act have not been given.


Mar 31, 2011

1. Gratuity:

The Company has provided for gratuity on the basis of actuarial valuation .

2. Quantitative information

Manufactured Item Tea Licensed Capacity Not Applicable Installed Capacity (In kg): 1,00,00,000 (1,00,00,000)

2. No provision for contingent liability in respect of the following has been made in the accounts-

i. Outstanding Bank Guarantees amounting to 70.61 Lakhs ( 74.76 lakhs) ii. Guarantees to Banks/ other institutions for limits in favour of associate companies 634.76 lakhs ( 581.51 lakhs).

iii. In respect of Capital Contracts Net of Advances NIL ( 49.90 Lakhs).

4. The company has accounted for Agricultural Income Tax on cash basis. Total Agricultural Income Tax liability including interest payable thereon not accounted for aggregate 54.39 lakhs. However, total demand is disputed and case is pending at West Bengal Tax Tribunal.

5. The Company acquired by way of purchase Dharnipur Tea Estate as a going concern from its owner Sri Dhirendra Nath Bhowmick (since deceased) and Dharnipur Tea Industries (P) Ltd. as confirming party and the Deed of conveyance was duly executed and registered in the name of the Company. The said Deed of Conveyance was cancelled in view of pending dispute between the seller and another party. However the agreement for purchase of the said Tea Estate subsists and is subject matter of a specific performance suit pending before Hon'ble Calcutta High Court. The Company is not in possession of the said Tea estate and has accordingly not accounted for the profit and/or loss on account of the operation or own- ership of the said Tea Estate. The value of Dharnipur Tea estate represents the costs paid at the time of purchase and the legal expenses incurred therefore.

6. The Company acquired certain interest in a plot of land at Bangalore for which registration in the name of the company has not been done. All expenses of litigation in respect of the said land are considered as deemed cost of land.

7. As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosure of transactions with the related parties as defined in the Accounting Standard are given below :

i) List of Related Parties with whom transactions have taken place and relationships :

Sl Name of Related Party Nature of Relationship No. 1 East Indian Produce Limited Associate Companies

2 Jaldacca Tea Plantations Private Limited

3 Abhijit Tea Company Private Limited

4 Terai Infrastructures Limited

5 Terai Ispat & Trading Limited

6 Terai Dooars Tea Company Private Limited

7 Sayedabad Tea Company Limited

8 Terai Jute Pvt. Limited

9 Terai Financial Services (P) Limited

10 The Kharibari Tea Company Limited

11 Terai Overseas Limited

12 Terai Distilleries Limited

13 Terai Resorts & Country Club (P) Limited

14 Amit Paridhan Private Limited

15 Kanchaanview Tea Estate Enterprises of Key Management Persons

16 Ajit Kumar Agarwala & Others (HUF)

17 Sri Ajit Kumar Agarwala Key Management Persons

18 Smt. Shashikala Agarwala

8. As the Company's business activity falls within a single primary business segment viz. Tea plantation and production, disclosure requirement of Accounting Standards (AS-17) "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

9. The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid / payable under this Act have not been given.

 
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