Mar 31, 2014
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
a) The financial statements have been prepared to comply in all
material aspects with all the applicable accounting principles in
India, the applicable accounting standards under section 211(3C) of the
Companies Act, 1956 and the relevant provisions of the Companies Act,
1956. A summary of important accounting policies which have been
applied consistently are set out below. Financial Statements have also
been prepared in accordance with relevant presentational requirements
of the Companies Act, 1956.
b) The financial statements have been prepared under the historical
cost convention as modified by revaluation of certain fixed assets.
2. USE OF ESTIMATES
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liability at the date of
the financial statements and the results of operation during the
reporting period. Although these estimates are based upon managements''
best knowledge of current events and actions, actual results could
differ from these estimates.
3. FIXED ASSETS AND DEPRECIATION
a) Land, Building as at March 31, 2003 are stated at valuation made by
an approved valuer at the then current cost. Subsequent acquisition of
these assets and other fixed assets are stated at their purchase cost
together with any incidental expenses of acquisition/installation
including borrowing cost, wherever applicable, directly attributable to
the acquisition, construction and production of qualifying assets.
b) Leasehold land is being amortized over the lease period.
Depreciation on fixed assets other than Leasehold land is provided on
written down value and from April 01, 2006 in accordance with Schedule
XIV of the Companies Act 1956.
c) Profit or Loss on disposal of depreciable fixed assets is recognized
in the Statement of Profit and Loss.
d) An impairment loss is recognized wherever the carrying value of the
Fixed Assets of a cash generating unit exceeds its net selling price or
value in use, whichever is higher.
4. REVENUE RECOGNITION
a) Interest income is accounted on time proportion basis taking in to
account the amount outstanding and applicable interest rate.
b) Other Incomes are accounted for on confirmation provided by the
constituents.
5. EMPLOYEE BENEFITS
a) Short - term employee benefits are recognised as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related service has been rendered.
b) Contributions to Provident Fund & other Funds including under the
provisions of the Employees'' Provident Fund and Miscellaneous
Provisions Act, 1952, will be accounted for on an accrual basis
whenever applicable.
c) Leave encashment benefit had been determined on the basis of
actuarial valuation up to March 31, 2010. However, during the previous
year as well as in current year no Actuarial Valuation was considered
necessary in view of resignation of most of the employees.
d) Provision for Gratuity is not made in accounts and is accounted for
as and when paid.
6. BORROWING COST
Borrowing cost relating to (i) funds borrowed for
acquisition/construction of qualifying assets are capitalised up to the
date the assets are put to use, and (ii) funds borrowed for other
purposes are charged to the Statement of Profit and Loss.
7. TAXATION
a) Tax liability is estimated considering the provisions of the Income
Tax Act, 1961.
b) Deferred tax is recognised on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods. On prudent basis, deferred tax asset is recognised and carried
forward to the extent only when there is reasonable certainty that the
assets will be adjusted in future. There is no Deferred Tax Liability /
Asset at the year end.
8. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
a) Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
b) Contingent Liabilities are not recognised but are disclosed in the
notes.
c) Contingent Assets are neither recognised nor disclosed in the
financial statements.
9. PRIOR PERIOD ITEMS, EXTRA ORDINARY ITEMS, EXCEPTIONAL ITEMS &
CHANGES IN ACCOUNTING POLICIES
Prior period items, Extra-ordinary items, Exceptional items and Changes
in Accounting Policies having material impact, if any, on the financial
affairs of the company are disclosed, wherever applicable.
Mar 31, 2013
1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
a) The financial statements have been prepared to comply in all
material aspects with all the applicable accounting principles in
India, the applicable accounting standards under section 211 (3C) of
the Companies Act, 1956 and the relevant provisions of the Companies
Act, 1956. A summary of important accounting policies which have been
applied consistently are set out below. Financial Statements have also
been prepared in accordance with relevant presentational requirements
of the Companies Act, 1956.
b) The financial statements have been prepared under the historical
cost convention as modified by revaluation of certain fixed assets.
1.2 USE OF ESTIMATES
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liability at the date of
the financial statements and the results of operation during the
reporting period. Although these estimates are based upon managements''
best knowledge of current events and actions, actual results could
differ from these estimates.
1.3 FIXED ASSETS AND DEPRECIATION
a) Land, Building as at March 31, 2003 are stated at valuation made by
an approved valuer at the then current cost. Subsequent acquisition of
these assets and other fixed assets are stated at their purchase cost
together with any incidental expenses of acquisition/installation
including borrowing cost, wherever applicable, directly attributable to
the acquisition, construction and production of qualifying assets.
b) Leasehold land is being amortized over the lease period.
Depreciation on fixed assets other than Leasehold land is provided on
written down value and from April 01, 2006 in accordance with Schedule
XIV of the Companies Act 1956.
c) Profit or Loss on disposal of depreciable fixed assets is recognized
in the Statement of Profit and Loss.
d) An impairment loss is recognized wherever the carrying value of the
Fixed Assets of a cash generating unit exceeds its net selling price or
value in use, whichever is higher.
1.4 REVENUE RECOGNITION
a) Interest income is accounted on time proportion basis taking in to
account the amount outstanding and applicable interest rate.
b) Other Incomes are accounted for on confirmation provided by the
constituents.
1.5 EMPLOYEE BENEFITS
a) Short - term employee benefits are recognised as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related service has been rendered.
b) Contributions to Provident Fund & other Funds including under the
provisions of the Employees'' Provident Fund and Miscellaneous
Provisions Act, 1952, will be accounted for on an accrual basis
whenever applicable.
c) Leave encashment benefit had been determined on the basis of
actuarial valuation up to March 31, 2010. However, during the previous
year as well as in current year no Actuarial Valuation was considered
necessary in view of resignation of most of the employees.
d) Provision for Gratuity is not made in accounts and is accounted for
as and when paid.
1.6 BORROWING COST
Borrowing cost relating to (i) funds borrowed for
acquisition/construction of qualifying assets are capitalised up to the
date the assets are put to use, and (ii) funds borrowed for other
purposes are charged to the Statement of Profit and Loss.
1.7 TAXATION
a) Tax liability is estimated considering the provisions of the Income
Tax Act, 1961.
b) Deferred tax is recognised on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods. On prudent basis, deferred tax asset is recognised and carried
forward to the extent only when there is reasonable certainty that the
assets will be adjusted in future. There is no Deferred Tax Liability /
Asset at the year end.
1.8 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
a) Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
b) Contingent Liabilities are not recognised but are disclosed in the
notes.
c) Contingent Assets are neither recognised nor disclosed in the
financial statements.
1.9 PRIOR PERIOD ITEMS, EXTRA ORDINARY ITEMS, EXCEPTIONAL ITEMS &
CHANGES IN ACCOUNTING POLICIES
Prior period items, Extra-ordinary items, Exceptional items and Changes
in Accounting Policies having material impact, if any, on the financial
affairs of the company are disclosed, wherever applicable.
Mar 31, 2012
A. Convention
The financial statements have been prepared to comply in all material
aspects with all the applicable accounting principles in India, the
applicable accounting standards under section 211(3C) of the Companies
Act, 1956 and the relevant provisions of the Companies Act, 1956. A
summary of important accounting policies which have been applied
consistently are set out below. Financial Statements have also been
prepared in accordance with relevant presentational requirements of the
Companies Act, 1956.
B. Basis of Accounting
The financial statements have been prepared under the historical cost
convention as modified by revaluation of certain fixed assets.
C. Fixed Assets and Depreciation
Land, Building as at March 31, 2003 are stated at valuation made by an
approved valuer at the then current cost. Subsequent acquisition of
these assets and other fixed assets are stated at their purchase cost
together with any incidental expenses of acquisition/installation
including borrowing cost, wherever applicable, directly attributable to
the acquisition, construction and production of qualifying assets.
Leasehold land is being amortized over the lease period. Depreciation
on fixed assets other than Leasehold land is provided on written down
value and from 1st April 2006 in accordance with Schedule XIV of the
Companies Act 1956.
Profit or Loss on disposal of depreciable fixed assets is recognized in
the Statement of Profit and Loss.
An Impairment loss is recognized wherever the carrying value of the
Fixed Assets of a cash generating unit exceeds its net selling price or
value in use, whichever is higher.
D. Employee Benefits
i) Post Retirement Benefits
a) Provident Fund
The Company makes regular contributions to Provident Fund maintained
with the Regional Provident Fund Commissioner. Such contributions are
recognized in the Statement of Profit & Loss on accrual basis.
b) Leave Encashment
Leave encashment benefit had been determined on the basis of actuarial
valuation upto March 31,2010. However, during the previous year as well
as in current year no Acturial Valuation was considered necessary in
view of resignation of most of the employees.
ii) Other employee benefits are accounted for on accrual basis.
E. Deferred Taxation
Deferred Tax is recognised using the liability method, at the current
rate of taxation, on all timing differences to the extent it is
probable that a liability or asset will crystallize. Deferred Tax
Assets are recognised subject to consideration of prudence and to the
extent of deferred tax liability. These are periodically reviewed to
reassess realisation thereof. There is no Deferred Tax Liability/Asset
at the year end.
F. Borrowing Cost
Borrowing costs attributable to acquisition and/or construction of
qualifying assets are capitalized as a part of the cost of such assets
upto the date when such assets are ready for its intended use. Other
borrowing costs are recognized in the Statement of Profit & Loss on
accrual basis.
Mar 31, 2010
A. Convention
The financial statements have been prepared to comply in all material
aspects with all the applicable accounting principles in India, the
applicable accounting standards u/s 211(3C) of the Companies Act, 1956
and the relevant provisions of the Companies Act, 1956. A summary of
important accounting policies which have been applied consistently are
set out below. Financial Statements have also been prepared in
accordance with relevant presentational requirements of the Companies
Act, 1956 of India.
B. Basis of Accounting
The financial statements have been prepared underthe historical cost
convention as modified by revaluation of certain fixed assets.
C. Fixed Assets and Depreciation
Land, Building, Estate & Development and Plant & Machinery as at 31 st
March 2003 are stated at valuation made by an approved valuer at the
then current cost. Subsequent acquisition of these assets and other
fixed assets are stated at their purchase cost together with any
incidental expenses of acquisition/installation including borrowing
cost, wherever applicable, directly attributable to the acquisition,
construction and production of qualifying assets.
Leasehold land is being amortized over the lease period. Depreciation
on fixed assets other than Leasehold land is provided on written down
value and from 1 st April 2006 new factory building and plant &
machinery at Ooty is provided on Straight Line Method, in accordance
with Schedule XIV of the Companies Act 1956, of India.
Profit or Loss on disposal of fixed assets is recognized in the Profit
and Loss Account.
An Impairment loss is recognized wherever the carrying value of the
Fixed Assets of a cash generating unit exceeds its net selling price or
value in use, whichever is higher.
D. Investments
Long term investments are stated at cost. Provision is made for
diminution, other than temporary, in the value of investments, wherever
applicable.
E. Inventories
Inventories are stated at cost or net realizable value, whichever is
lower. Cost is determined on FIFO basis, except for manufactured tea,
which is valued at weighted average method and comprises of expenditure
incurred in the normal course of business in bringing such inventories
to their location and condition including appropriate overheads,
wherever applicable.
F. Foreign Currency Transactions
Transactions in foreign currency are recorded in rupee at the exchange
rate prevailing at the date of transactions. Gains/Losses arising out
of fluctuations in the exchange rates are recognised in Profit & Loss
Account in the period in which they arise. Premium or discounts on
forward contracts are amortized over the , life of the contract.
Foreign exchange forward contracts are revalued at the Balance Sheet
date and the exchange difference between the spot rate at the date of
the contract and the spot rate on the balance sheet -û.. * date is
recognized as gain/loss in the Profit & Loss Account.
G. Sales and Services
Sales and services represent the invoiced value of goods sold or
services rendered in accordance with the terms of the contract, net of
taxes and duties.
H. Grants and Subsidy
Grants/Subsidy, for acquiring specific fixed assets are deducted from
the cost of the asset concerned otherwise it is recognized as income in
Profit & Loss A/c .
I. Employee Benefits
i) Post Retirement Benefits
a) Provident Fund
The Company makes regular contributions to Provident Fund maintained
with the Regional Provident Fund Commissioner. Such contributions are
recognized in the Profit & Loss Account on accrual basis.
b) Superannuation Fund
The company operates a non-contributory Superannuation Scheme with Life
Insurance Corporation of India, towards future payments of pensions for
its eligible employees. The company contributes 15% of the employees
current salary to the above fund which is recognised in the profit and
loss.
c) Gratuity
The Company has Gratuity Fund administered by trustees which is
independent of the Companys Finance. The Gratuity Fund has taken a
Group Gratuity Policy which is maintained with Life Insurance
Corporation of India (LIC) for future payment of gratuity liability to
its employees. Consequent to the adoption of Accounting Standard 15 (
Revised) on "Employee "æ*"- Benefits", gratuity liability as on 31 st
March 2010 has been determined on the basis of actuarial valuation in
accordance with the method stated in the said standard and such
liability has been provided for in the accounts. Annual premium
determined by LIC has been contributed.
d) Leave Encashment
Leave encashment benefit has been determined on the basis of actuarial
valuation as at 31st March of each year and such liability is provided
for in the accounts. In the current year, consequent to the adoption of
AS-15 (Revised), such actuarial valuation has been done based on the
method prescribed in the said standard.
Actuarial gains and losses, wherever applicable, are recognized in the
Income & Expenditure Account.
ii) Other employee benefits are accounted for on accrual basis.
J. Deferred Taxation
Deferred Tax is recognised using the liability method, at the current
rate of taxation, on all timing differences to the extent it is
probable that a liability or asset will crystallize. Deferred Tax
Assets are recognised subject to consideration of prudence and to the
extent of deferred tax liability. These are periodically reviewed to
reassess realisation thereof.
K. Miscellaneous Expenditure
Prelirhinary and preoperative expenses are being amortized over a
period of ten years.
Public issue and amalgamation expenses are being amortized over a
period of five years.
L. Borrowing Cost
Borrowing costs attributable to acquisition and/or construction of
qualifying assets are capitalized as a part of the cost of such assets
upto the date when such assets are ready for its intended use. Other
borrowing costs are charged to Profit & loss Account.
M. Financial Instruments
In respect of Forward Contracts, premium paid provision for losses on
restatement and gains/ losses on settlement are recognised along with
the underlying transactions and charged to Profit and Loss Account.
The company follows the principles of prudence and assesses the losses,
if any, by marking to market all its forward contracts taken to cover
their foreign exchange risk in respect of future receivables by way of
firm commitments and highly probable forecast transactions outstanding
at the balance sheet date and provide for such losses.