Accounting Policies of Harrisons Malayalam Ltd. Company
Mar 31, 2023
1. Background
Harrisons Malayalam Limited (âthe Companyâ) is a Public Company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. It''s shares are listed in two recognised stock exchanges in India (NSE and BSE). The registered office of the Company is located at 24/1624, Bristow Road, WiMingdon Island, Cochin. The Company is principally engaged in plantations having tea and rubber estates in Kerala and Tamil Nadu.
2. Summary of significant accounting policies
a) Basis of preparation and presentation of Standalone financial statements
i) Statement of compliance with Indian Accounting Standards (Ind AS)
The standalone financial statements have been prepared in accordance with the accounting principles generally accepted in India including Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and as amended. The aforesaid standalone financial statements have been approved by the Board of Directors in the meeting held on 26 May 2023.
ii) Basis of accounting and measurement
The Company has prepared these financial statements which comprise the Balance Sheet as at 31 March 2023, the Statement of Profit and Loss, the Statements of Cash Flows and the Statement of Changes in Equity for the year ended 31 March 2023, and accounting policies and other explanatory information (together hereinafter referred to as âstandalone financial statementsâ).
The standalone financial statements have been prepared using the significant accounting policies and measurement bases summarized below. These accounting policies have been used throughout all periods presented in these financial statements except for the changes below.
The standalone financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, unless otherwise stated. All amounts included in the standalone financial statements are reported in Indian Rupees (?) lakhs and have been rounded off to nearest decimal of '' lakhs.
The preparation of the standalone financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
The Company bases its estimates and assumptions on parameters available when the standalone financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
Significant management judgements
The following are significant management judgements in applying the accounting policies of the Company that have the most significant effect on the amounts recognised in the standalone financial statements or that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Classification of leases
The Company enters into leasing arrangements for various assets. The classification of the leasing arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at the end of lease term, lessee''s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialised nature of the leased asset.
Recoverability of advances / receivables
At each balance sheet date, based on historical default rates observed over expected life, the management assesses the expected credit loss on outstanding receivables and advances.
Useful lives of depreciable / amortisable assets
Management reviews its estimate of the useful lives of depreciable / amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of certain items of property, plant and equipment.
Contingent liability
Management reviews its estimate of the financial impact of the contingent liability at each reporting date, based on the demands received from various Departmental authorities.
Litigations
Management reviews its estimate of the impact of the litigations liability at each reporting date, based on the land matters pending with various Courts.
Defined benefit obligation (DBO)
Management''s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.
Fair value measurements
Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available) and non-financial assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument. Management bases its assumptions on observable data as far as possible but this is not always available. In that case management uses the best information available. Estimated fair values may vary from the actual prices that would be achieved in an arm''s length transaction at the reporting date.
Valuation of Agricultural Produce
Produce growing on Bearer plants are Biological Assets and are âfair valued'' based on biological transformations. As at the Balance Sheet date, the Management has determined that it can reliably measure the biological transformations of its growing produce and such growing produce and agricultural produce have been measured at âfair values'' based on the Management''s estimates of expected produce. âFair values'' have been assessed at market prices at the reporting date and adjusted for estimates of costs to be incurred from the reporting date until harvest. Considering the susceptibility of the estimates to variations, these estimates and assumptions are reviewed at every reporting date until harvest and revisions to the âfair values'' carried out on a cumulative basis. Such variations are considered as change in estimates and are presented as part of Changes in inventories of Finished Goods.
c) Current versus non-current classification
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.
An asset is treated as current when it is:
- Expected to be realised or intended to be sold or consumed in normal operating cycle;
- Held primarily for the purpose of trading;
- Expected to be realized within twelve months after the reporting period, or
- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
- It is expected to be settled in normal operating cycle;
- It is held primarily for the purpose of trading;
- It is due to be settled within twelve months after the reporting period, or
- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. All other liabilities are classified as non-current.
The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has evaluated and considered its operating cycle as 12 months.
d) Property, plant and equipment
Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalised until the property, plant and equipment are ready for use, as intended by management.
Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Cost includes inward freight, non refundable duties/ taxes and expenses incidental to acquisition/installation.
Expenses relating to new planting and further expenditure incurred at the replanted fields are capitalised.
Property, plant and equipment [other than freehold land and lease hold land (perpetual lease)] are depreciated under the written down value method [other than bearer plants (rubber trees and tea bushes) which are depreciated using straight line method] over the estimated useful lives of the assets, which are different from the lives prescribed under Schedule II to the Companies Act, 2013. The useful lives have been arrived at based on technical assessment of the management.
Freehold land and leasehold land (perpetual lease) are not depreciated.
Useful life adopted by the Company for various class of assets is as follows:
|
Asset category |
Useful lives (in years) |
|
Factory buildings |
30 |
|
Non factory buildings |
60 |
|
Plant and machinery (including agricultural assets) |
3/ 20 |
|
Furniture and fittings |
6 |
|
Water supply |
20/ 30/ 60 |
|
Vehicles |
10 |
|
Bearer plants - Rubber trees |
28 |
|
Bearer plants - Tea bushes |
80 |
Depreciation methods, useful lives and residual values are reviewed periodically and updated as required, including at each financial year end.
e) Bearer Plants
All the expenses incurred on replanting of rubber and new plantings in tea have been identified and capitalized.
f) Intangible assets
Computer software is capitalised in the period in which the software is implemented for use, where it is expected to provide future enduring economic benefits; such capitalisation costs include license fees and cost of implementation/ system integration services.
Computer software capitalised are amortised on a straight line basis over a period of five years from the date of capitalisation.
g) Impairment of property, plant and equipment and intangible assets
The carrying amounts of property, plant and equipment are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of property, plant and equipment exceeds the recoverable amount (i.e. higher of net selling price and value in use). In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amounts of the assets over their remaining useful lives.
h) Assets held for sale
Items of property, plant and equipment that have been retired from active use and are held for disposal are stated at the lower of their net carrying amount and net realisable value and are shown separately in the standalone financial statements under the head âAssets classified as held for sale''. Any write-down in this regard is recognised immediately in the Statement of Profit and Loss.
i) Revenue recognition
Revenue from contracts with customers is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made.
Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of various discounts and schemes offered by the Company as part of the contract.
The specific recognition criteria described below must also be met before revenue is recognised.
Revenue from sale of goods
Revenue from sale of tea at auction is recognized on receipt of the sale note from the brokers. Revenue from sale of tea other than at auction and sale of rubber is recognized on transfer of significant risks and rewards of ownership in goods in accordance with the terms of sale.
Revenue from contract with customers
The Company recognizes the amount as revenue from contracts with customers, which is received for the transfer of promised goods to customers in exchange for those goods. The relevant point in time or period of time is the transfer of control of the goods. Revenue is reduced for customer returns, taxes on sales, estimated rebates and other similar allowances. The transaction price is determined and allocated to the performance obligations according to the requirements of Ind AS 115. Performance obligations are deemed to have been met when the control of goods is transferred to the customer.
The Company has entered into a barter arrangement with vendors wherein the vendors are allowed to cultivate pineapple in few rubber estates with a condition that these vendors to bear the cost of replanting of rubber plants in these estates, in lieu of cultivation rent otherwise payable by vendors to the company. The transaction price in the above arrangement has been accounted at fair value as per Ind AS 115 Revenue from contracts with customers.
Interest income
Interest income is reported on an accrual basis using the effective interest method and is included under the head âOther incomeâ in the Statement of Profit and Loss.
Export Incentive
Income from Export incentives are recognised when right to receive credit as per the terms of the scheme is established and when there is certainty of realisation.
Valuation of inventory of finished products of tea and rubber have been done as per Ind AS 2 âInventories''. Inventories are stated at lower of cost and net realizable value. Cost is determined on weighted average basis and includes expenditure incurred in the normal course of business in bringing inventories to its location and condition, labour and overhead, where applicable. Inventories are written down for obsolete/slow moving/non moving items wherever necessary.
Ind AS 41 âAgriculture'' deals with the recognition and valuation of agricultural produce viz. standing crop of tea and rubber as biological assets. The Company has valued its standing crops for tea and rubber at the reporting date at their fair value less cost to sell at the point of harvest.The fair valuation so arrived at becomes the cost of Inventory under Ind AS-2.
Expenses and liabilities in respect of employee benefits are recorded in accordance with Ind AS 19, Employee Benefits. Defined contribution plan
(i) Provident fund
This is a defined contribution plan where contributions are remitted to provident fund authorities in accordance with the relevant statute and charged to the Statement of Profit and Loss in the period in which the related employee services are rendered. The Company has no further obligations for future provident fund benefits in respect of these employees other than its monthly contributions.
(ii) Superannuation
This is a defined contribution plan. The Company contributes as per the scheme to superannuation fund administered by Life Insurance Corporation of India (LIC). The Company has no further obligations for future superannuation benefits other than its annual contributions and recognises such contributions as expense in the period in which the related employee services are rendered.
Defined benefit plan
(i) Gratuity
This is a defined benefit plan. Provision is based on year-end actuarial valuation using projected unit credit method. Actuarial gains / losses are recognised immediately in the Statement of Profit and Loss as income or expense.
(ii) Compensated absences
This is a defined benefit plan. Provision is based on year-end actuarial valuation using projected unit credit method. Actuarial gains/ losses are recognised immediately in the Statement of Profit and Loss as income or expense.
The present value of the defined benefit obligation denominated in '' is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
Service cost on the Company''s defined benefit plan is included in employee benefits expense. Employee contributions, all of which are independent of the number of years of service, are treated as a reduction of service cost.
Gains and losses through re-measurements of the defined benefit plans are recognised in other comprehensive income, which are not reclassified to profit or loss in a subsequent period. Further, as required under Ind AS compliant Schedule III, the Company transfers those amounts recognised in other comprehensive income to retained earnings in the statement of changes in equity and balance sheet.
Short-term employee benefits
Short-term employee benefits comprise of employee costs such as salaries, bonus etc. is recognised on the basis of the amount paid or payable for the period during which services are rendered by the employee.
l) Foreign currency transactions
Functional and presentation currency
The functional currency of the Company is the Indian Rupee. These standalone financial statements are presented in Indian Rupees ('').
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in Statement of Profit or Loss.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.
n) Investments in subsidiaries
The Company''s investment in equity instruments in subsidiaries are accounted for at cost. Where the carrying amount of an investment is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount and the difference is transferred to the Statement of Profit and Loss.
Revenue subsidy receivable from Tea Board towards manufacture of orthodox tea is accrued on production of orthodox tea. Revenue subsidy receivable from Tea Board towards replanting activities undertaken is accounted on sanction of such subsidy by the Tea Board. Capital subsidy from Tea Board and Rubber Board is adjusted against the cost of specific depreciable assets on receipt of such subsidy.
Income tax expense comprises current and deferred income tax. Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.
Current income tax for current and prior periods is recognised at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.
Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.
Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognised as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilised. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to setoff the recognised amounts and where it intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
q) Provisions and contingencies
Provisions
A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.
Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or it cannot be measured with sufficient reliability. The Company does not recognise a contingent liability but discloses its existence in the standalone financial statements.
r) Financial instruments Financial assets
Initial recognition and measurement
Financial assets (other than trade receivables) are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs, except for those carried at fair value through statement of profit and loss which are measured initially at fair value. Subsequent measurement of financial assets is described below. Trade receivables are recognised at their transaction price as the same do not contain significant financing component.
Subsequent measurement
For the purpose of subsequent measurement, financial assets are classified and measured based on the entity''s business model for managing the financial asset and the contractual cash flow characteristics of the financial asset at:
a. Amortised cost
b. Fair value through other comprehensive income (FVTOCI) or
c. Fair value through profit or loss (FVTPL)â
All financial assets are reviewed for impairment at least at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Different criteria to determine impairment are applied for each category of financial assets, which are described below.
(i) Financial asset at amortised cost
Includes assets that are held within a business model where the objective is to hold the financial assets to collect contractual cash flows and the contractual terms gives rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
These assets are measured subsequently at amortised cost using the effective interest method. The loss allowance at each reporting period is evaluated based on the expected credit losses for next 12 months and credit risk exposure. The Company shall also measure the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition.
(ii) Financial assets at fair falue through other comprehensive income (FVTOCI)
Includes assets that are held within a business model where the objective is both collecting contractual cash flows and selling financial assets along with the contractual terms giving rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. At initial recognition, the Company, based on its assessment, makes an irrevocable election to present in other comprehensive income the changes in the fair value of an investment in an equity instrument that is not held for trading. These elections are made on an instrument-by instrument (i.e.., share-by-share) basis. If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, impairment gains or losses and foreign exchange gains and losses, are recognised in other comprehensive income. There is no recycling of the amounts from OCI to profit or loss, even on sale of investment. The dividends from such instruments are recognised in statement of profit and loss.
The fair value of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists.
The loss allowance at each reporting period is evaluated based on the expected credit losses for next 12 months and credit risk exposure. The Company shall also measure the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. The loss allowance shall be recognised in other comprehensive income and shall not reduce the carrying amount of the financial asset in the balance sheet.
(iii) Financial assets at fair falue through profit or loss (FVTPL)
Financial assets at FVTPL include financial assets that are designated at FVTPL upon initial recognition and financial assets that are not measured at amortised cost or at fair value through other comprehensive income. All derivative financial instruments fall into this category, except for those designated and effective as hedging instruments, for which the hedge accounting requirements apply. Assets in this category are measured at fair value with gains or losses recognised in statement of profit and loss. The fair value of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists.
The loss allowance at each reporting period is evaluated based on the expected credit losses for next 12 months and credit risk exposure. The Company shall also measure the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. The loss allowance shall be recognised in the statement of profit and loss.
De-recognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Company''s standalone balance sheet) when:
a. The rights to receive cash flows from the asset have expired, or
b. The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a âpass-through'' arrangement^ and either (i) the Company has transferred substantially all the risks and rewards of the asset, or (ii) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.â
When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109 Financial Instruments.
Gains or losses on liabilities held for trading are recognised in the profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognised in OCI. These gains/ loss are not subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The Company has not designated any financial liability as at fair value through profit and loss.
Loans and borrowings
This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.This category generally applies to borrowings.
Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
Derivative financial instruments
Initial recognition and subsequent measurement
The Company uses derivative financial instruments, such as forward currency contracts to hedge its foreign currency risks. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss, except for the effective portion of cash flow hedges, which is recognised in OCI and later reclassified to profit or loss when the hedge item affects profit or loss or treated as basis adjustment if a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-financial liability.
s) Impairment of financial assets
In accordance with Ind AS 109 Financial Instruments, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss for financial assets.
The Company tracks credit risk and changes thereon for each customer. For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR. When estimating the cash flows, an entity is required to consider:
- All contractual terms of the financial instrument over the expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, then the entity uses the remaining contractual term of the financial instrument.
- Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
The Company uses default rate for credit risk to determine impairment loss allowance on portfolio of its trade receivables. Trade receivables
The Company applies approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of receivables.
Other financial assets
For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition and if credit risk has increased significantly, impairment loss is provided.â
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
- In the principal market for the asset or liability, or
- In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
The Company is engaged in plantations having tea and rubber estates. The business segments identified for segment reporting are Tea, Rubber and Others as the Chief Operating Decision Maker (CODM), reviews business performance at these levels.The Company has considered business segments as the primary segment. The business segments are tea, rubber and others which have been identified taking into account the organisational structure as well as the differing risks and returns of these segments.
v) Earnings/ (loss) per share (EPS)
Basic EPS are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue that have changed the number of equity shares outstanding, without a corresponding change in resources.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company (after adjusting for interest on the convertible preference shares, if any) by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.
Effective from 1st April 2019, the Company adopted Ind AS 116 - Leases and applied the standard to all lease contracts existing as on 1st April 2019 using the modified retrospective method on the date of initial application i.e. 1st April 2019.
At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
i. As a lessee
The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company''s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. Subsequently, the lease liability is measured at amortised cost using the effective interest method.
It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company''s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
Short-term leases and leases of low-value assets
The Company has elected not to recognise right-of-use assets and lease liabilities for short term leases of real estate properties that have a lease term of 12 months. The Company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.
Operating Lease
In the comparative period, leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.
ii. /4s a lessor
Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature.
Cash and cash equivalent in the statement of financial position comprises of cash at banks and on hand, demand deposits, short-term deposits with an original maturity of three months or less and highly liquid investments that are readily convertible into known amounts of cash, which are subject to an insignificant risk of changes in value.
y) Recent accounting pronouncementsStandards issued but not effective on Balance Sheet date:
The Ministry of Corporate Affairs has vide notification dated 31 March 2023 notified Companies (Indian Accounting Standards) Amendment Rules, 2023 which amends certain accounting standards, and are effective 1 April 2023. These amendments are not expected to have a material impact on the Company in the current or future reporting periods and on foreseeable future transactions.
a) . Ind AS 1 - Presentation of Financial Statements
The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial statements.
b) . Ind AS 12 - Income Taxes
The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company does not expect this amendment to have any significant impact in its financial statements.
c) . Ind AS 8 Accounting policies, Changes in Acconting Estimates and Errors
The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are âmonetary amounts in financial statements that are subject to measurement uncertaintyâ. Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its financial statements
Mar 31, 2018
1. Summary of significant accounting policies
a) Basis of preparation and presentation of financial statements
i) Statement of compliance with Indian Accounting Standards (Ind AS)
The standalone financial statements have been prepared in accordance with the accounting principles generally accepted in India including Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Accounting Standards) Amendment Rules, 2016. The aforesaid financial statements have been approved by the Board of Directors in the meeting held on 25 May 2018.
For all periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with requirements of the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (Previous GAAP). These are the first Ind AS financial statements of the Company. The date of transition to Ind AS is 1 April 2016. Refer note 46 for the details of first-time adoption exemptions availed by the Company, reconciliations and descriptions of the effect of the transition. Amendments to the financial statements are permitted after approval.
ii) Basis of accounting and measurement
In accordance with the notification issued by the Ministry of Corporate Affairs, the Company is required to prepare its financial statements as per the Indian Accounting Standards (âInd AS'') prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Accounting Standards) Amendment Rules, 2016 with effect from 1 April 2017. Accordingly, the Company has prepared these financial statements which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss, the Statements of Cash Flows and the Statement of Changes in Equity for the year ended 31 March 2018, and accounting policies and other explanatory information (together hereinafter referred to as financial statements).
The financial Statements have been prepared using the significant accounting policies and measurement bases summarised below. These accounting policies have been used throughout all periods presented in these financial statements, except where the Company has applied certain accounting policies and exemptions upon transition to Ind AS.
The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, unless otherwise stated. All amounts included in the financial statements are reported in Indian Rupees (Rs.) lakhs and have been rounded off to nearest decimal of Rs. lakhs.
b) Use of estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
The Company bases its estimates and assumptions on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
Significant management judgements
The following are significant management judgements in applying the accounting policies of the Company that have the most significant effect on the amounts recognised in the financial statements or that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Classification of leases
The Company enters into leasing arrangements for various assets. The classification of the leasing arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at the end of lease term, lessee''s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialised nature of the leased asset.
Recognition of deferred tax assets
The extent to which deferred tax assets can be recognised is based on an assessment of the probability that future taxable income will be available against which the deductible temporary differences and tax loss carry forward can be utilised. In addition, significant judgement is required in assessing the impact of any legal or economic limits or uncertainties in various tax jurisdictions.
Capitalisation of internally developed intangible assets
Distinguishing the research and development phases of a new customised project and determining whether the recognition requirements for the capitalisation of development costs are met requires judgement. After capitalisation, management monitors whether the recognition requirements continue to be met and whether there any indicators that capitalised costs may be impaired.
Evaluation of indicators for impairment of assets
The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets. In assessing impairment, management estimates the recoverable amount of each asset or cash generating units based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate.
Recoverability of advances / receivables
At each balance sheet date, based on historical default rates observed over expected life, the management assesses the expected credit loss on outstanding receivables and advances.
Useful lives of depreciable / amortisable assets
Management reviews its estimate of the useful lives of depreciable / amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of certain items of property, plant and equipment.
Contingent Liability
Management reviews its estimate of the financial impact of the contingent liability at each reporting date, based on the demands received from various Departmental authorities.
Litigations
Management reviews its estimate of the impact of the litigations liability at each reporting date, based on the land matters pending with various Courts
Defined benefit obligation (DBO)
Management''s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.
Fair value measurements
Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available) and non-financial assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument. Management bases its assumptions on observable data as far as possible but this is not always available. In that case management uses the best information available. Estimated fair values may vary from the actual prices that would be achieved in an arm''s length transaction at the reporting date.
c) Current versus non-current classification
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.
An asset is treated as current when it is:
- Expected to be realised or intended to be sold or consumed in normal operating cycle;
- Held primarily for the purpose of trading;
- Expected to be realized within twelve months after the reporting period, or
- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
- It is expected to be settled in normal operating cycle;
- It is held primarily for the purpose of trading;
- It is due to be settled within twelve months after the reporting period, or
- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other liabilities are classified as non-current.
The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has evaluated and considered its operating cycle as 12 months.
d) Property, plant and equipment
The Company has opted to continue with the carrying value for all of its property, plant and equipment as recognised in its previous GAAP financial statements as deemed cost at the transition date, viz., 1 April 2016.
Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalised until the property, plant and equipment are ready for use, as intended by management.
Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Cost includes inward freight, non refundable duties/ taxes and expenses incidental to acquisition/ installation.
Expenses relating to new planting and further expenditure incurred at the replanted fields are capitalised.
Property, plant and equipment [other than freehold land and lease hold land (perpetual lease)] are depreciated under the written down value method [other than bearer plants (rubber trees and tea bushes) which are depreciated using straight line method] over the estimated useful lives of the assets, which are different from the lives prescribed under Schedule II to the Companies Act, 2013.
Freehold land and leasehold land (perpetual lease) are not depreciated.
e) Bearer Plants
Under the previous GAAP all the replanting expenses consequent to replacement were charged to revenue as and when incurred. No adjustments have been made to the value of bearer plants existing as at 31 March 2016 on account of the replanting expenses of prior years. However all the replanting expenses incurred from the Ind AS transition date (1 April 2016) have been identified and capitalised.
f) Intangible assets
The Company has elected to continue with the carrying value for all of its intangible assets as recognised in its previous GAAP financial statements as deemed cost at the transition date, viz., 1 April 2016.
Computer software is capitalised in the period in which the software is implemented for use, where it is expected to provide future enduring economic benefits; such capitalisation costs include license fees and cost of implementation/ system integration services.
Computer software capitalised are amortised on a straight line basis over a period of five years from the date of capitalisation. License Fees is amortised at lower of the license period and five years.
g) Impairment of property, plant and equipment and intangible assets
The carrying amounts of fixed assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of fixed assets of cash generating unit exceeds the recoverable amount (i.e. higher of net selling price and value in use). In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amounts of the assets over their remaining useful lives.
h) Assets held for sale
Items of Property, Plant and Equipment that have been retired from active use and are held for disposal are stated at the lower of their net carrying amount and net realisable value and are shown separately in the financial statements under the head âAssets classified as held for sale''. Any write-down in this regard is recognised immediately in the Statement of Profit and Loss.
i) Revenue recognition
Revenue from contracts with customers is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment.
The specific recognition criteria described below must also be met before revenue is recognised.
Sale of goods
Revenue from sale of tea at auction is recognised on receipt of the sale note from the brokers. Revenue from sale of tea other than at auction and sale of rubber is recognised on transfer of significant risks and rewards of ownership in goods in accordance with the terms of sale. Revenue from sale of rubber/ grevillea trees is recognised at the point of felling and removing the trees from the estates.
Interest income
Interest income is reported on an accrual basis using the effective interest method and is included under the head âOther incomeâ in the Statement of Profit and Loss.
j) Inventories
Inventories are stated at lower of cost and net realisable value. Cost is determined on weighted average basis and includes expenditure incurred in the normal course of business in bringing inventories to its location and condition, labour and overhead, where applicable. Inventories are written down for obsolete/slow moving/non moving items wherever necessary.
k) Standing crops
Ind AS 2 âInventories'' does not envisage any change in the existing system of valuation of Inventories of finished products of tea and rubber from Accounting Standard 2 âValuation of Inventories'' followed by the Company during prior years. However Ind AS 2 âInventories'' does not apply to valuation of Agricultural Produce, but will continue to apply to valuation of Inventory of finished products of Tea and rubber. Ind AS 41 âAgriculture'' deals with the recognition and valuation of Agricultural Produce viz. standing crop of tea and rubber as Biological assets. The Company has valued its standing crops for tea and rubber as at Ind AS transition date (1 April 2016) and adjusted the same in the retained earnings. Further movement in valuation at the reporting dates were routed through the Statement of Profit and Loss.
l) Employee benefits
Expenses and liabilities in respect of employee benefits are recorded in accordance with Ind AS 19, Employee Benefits.
Defined contribution plan
(i) Provident fund
This is a defined contribution plan where contributions are remitted to provident fund authorities in accordance with the relevant statute and charged to the Statement of Profit and Loss in the period in which the related employee services are rendered. The Company has no further obligations for future provident fund benefits in respect of these employees other than its monthly contributions.
(ii) Superannuation
This is a defined contribution plan. The Company contributes as per the scheme to superannuation fund administered by Life Insurance Corporation of India (LIC). The Company has no further obligations for future superannuation benefits other than its annual contributions and recognises such contributions as expense in the period in which the related employee services are rendered.
Defined benefit plan
(i) Gratuity
This is a defined benefit plan. Provision is based on year-end actuarial valuation using projected unit credit method. Actuarial gains / losses are recognised immediately in the Statement of Profit and Loss as income or expense.
(ii) Compensated absences
This is a defined benefit plan. Provision is based on year-end actuarial valuation using projected unit credit method. Actuarial gains/ losses are recognised immediately in the Statement of Profit and Loss as income or expense.
The present value of the defined benefit obligation denominated in Rs. is determined by discounting the estimated future cash outflowsbyreferencetomarketyieldsattheendofthereportingperiodongovernmentbondsthathavetermsapproximatingto the terms of the related obligation.
Service cost on the Company''s defined benefit plan is included in employee benefits expense. Employee contributions, all of which are independent of the number of years of service, are treated as a reduction of service cost.
Gains and losses through re-measurements of the defined benefit plans are recognised in other comprehensive income, which are not reclassified to profit or loss in a subsequent period.
Further, as required under Ind AS compliant Schedule III, the Company transfers those amounts recognised in other comprehensive income to retained earnings in the statement of changes in equity and balance sheet.
Short-term employee benefits
Short-term employee benefits comprise of employee costs such as salaries, bonus etc. is recognised on the basis of the amount paid or payable for the period during which services are rendered by the employee.â
m) Foreign currency transactions
Functional and presentation currency
The functional currency of the Company is the Indian Rupee. These financial statements are presented in Indian Rupees (Rs.).
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in Statement of Profit or Loss.
n) Investments in subsidiaries
The Company''s investment in equity instruments in subsidiaries are accounted for at cost. Where the carrying amount of an investment is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount and the difference is transferred to the Statement of Profit and Loss.
o) Government Grants
Revenue subsidy receivable from Tea Board towards manufacture of orthodox tea is accrued on production of orthodox tea. Revenue subsidy receivable from Tea Board towards replanting activities undertaken is accounted on sanction of such subsidy by the Tea Board. Capital subsidy from Tea Board and Rubber Board is adjusted against the cost of specific depreciable assets on receipt of such subsidy.
p) Income taxes
Income tax expense comprises current and deferred income tax. Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. Current income tax for current and prior periods is recognised at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.
Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.
Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognised as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilised. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to setoff the recognised amounts and where it intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
q) Provisions and contingencies
Provisions
A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.
Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or it cannot be measured with sufficient reliability. The Company does not recognise a contingent liability but discloses its existence in the financial statements.
r) Financial instruments
Financial assets
Initial recognition and measurement
Financial assets (other than trade receivables) are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs, except for those carried at fair value through statement of profit and loss which are measured initially at fair value. Subsequent measurement of financial assets is described below. Trade receivables are recognised at their transaction price as the same do not contain significant financing component.
Subsequent measurement
For the purpose of subsequent measurement, financial assets are classified and measured based on the entity''s business model for managing the financial asset and the contractual cash flow characteristics of the financial asset at:
a. Amortised cost
b. Fair Value Through Other Comprehensive Income (FVTOCI) or
c. Fair Value Through Profit or Loss (FVTPL)
All financial assets are reviewed for impairment at least at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Different criteria to determine impairment are applied for each category of financial assets, which are described below.
(i) Financial asset at amortised cost
Includes assets that are held within a business model where the objective is to hold the financial assets to collect contractual cash flows and the contractual terms gives rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
These assets are measured subsequently at amortised cost using the effective interest method. The loss allowance at each reporting period is evaluated based on the expected credit losses for next 12 months and credit risk exposure. The Company shall also measure the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition.
(ii) Financial assets at Fair Value Through Other Comprehensive Income (FVTOCI)
Includes assets that are held within a business model where the objective is both collecting contractual cash flows and selling financial assets along with the contractual terms giving rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. At initial recognition, the Company, based on its assessment, makes an irrevocable election to present in other comprehensive income the changes in the fair value of an investment in an equity instrument that is not held for trading. These elections are made on an instrument-by instrument (i.e., share-by-share) basis. If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, impairment gains or losses and foreign exchange gains and losses, are recognised in other comprehensive income. There is no recycling of the amounts from OCI to profit or loss, even on sale of investment. The dividends from such instruments are recognised in statement of profit and loss.
The fair value of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists.
The loss allowance at each reporting period is evaluated based on the expected credit losses for next 12 months and credit risk exposure. The Company shall also measure the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. The loss allowance shall be recognised in other comprehensive income and shall not reduce the carrying amount of the financial asset in the balance sheet.
(iii) Financial assets at Fair Value Through Profit or Loss (FVTPL)
Financial assets at FVTPL include financial assets that are designated at FVTPL upon initial recognition and financial assets that are not measured at amortised cost or at fair value through other comprehensive income. All derivative financial instruments fall into this category, except for those designated and effective as hedging instruments, for which the hedge accounting requirements apply. Assets in this category are measured at fair value with gains or losses recognised in statement of profit and loss. The fair value of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists.
The loss allowance at each reporting period is evaluated based on the expected credit losses for next 12 months and credit risk exposure. The Company shall also measure the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. The loss allowance shall be recognised in the statement of profit and loss.
De-recognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Company''s standalone balance sheet) when:
a. The rights to receive cash flows from the asset have expired, or
b. The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a âpass-through'' arrangement and either (i) the Company has transferred substantially all the risks and rewards of the asset, or (ii) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.
Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109 Financial Instruments.
Gains or losses on liabilities held for trading are recognised in the profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognised in OCI. These gains/ loss are not subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The Company has not designated any financial liability as at fair value through profit and loss.
Loans and borrowings
This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.
This category generally applies to borrowings.
Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
Derivative financial instruments
Initial recognition and subsequent measurement
The Company uses derivative financial instruments, such as forward currency contracts to hedge its foreign currency risks. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss, except for the effective portion of cash flow hedges, which is recognised in OCI and later reclassified to profit or loss when the hedge item affects profit or loss or treated as basis adjustment if a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-financial liability.
s) Impairment of financial assets
In accordance with Ind AS 109 Financial Instruments, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss for financial assets.
The Company tracks credit risk and changes thereon for each customer. For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR. When estimating the cash flows, an entity is required to consider:
- All contractual terms of the financial instrument over the expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, then the entity uses the remaining contractual term of the financial instrument.
- Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
The Company uses default rate for credit risk to determine impairment loss allowance on portfolio of its trade receivables.
Trade receivables
The Company applies approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of receivables.
Other financial assets
For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition and if credit risk has increased significantly, impairment loss is provided.
t) Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
- In the principal market for the asset or liability, or
- In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
u) Assets held for sale
Items of Property, Plant and Equipment that have been retired from active use and are held for disposal are stated at the lower of their net carrying amount and net realisable value and are shown separately in the financial statements under the head âAssets classified as held for sale''. Any write-down in this regard is recognised immediately in the Statement of Profit and Loss.
v) Segment reporting
The Company is engaged in plantations having tea and rubber estates. The business segments identified for segment reporting are Tea, Rubber and Others.
w) Earnings/ (Loss) per Share (EPS)
Basic EPS are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue that have changed the number of equity shares outstanding, without a corresponding change in resources.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company (after adjusting for interest on the convertible preference shares, if any) by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.
x) Recent accounting pronouncements
Appendix B to Ind AS 21, Foreign currency transactions and advance consideration:
On 28 March 2018, MCA has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.
This amendment will come into force from 1 April 2018.
Ind AS 115, Revenue from Contract with Customers:
On 28 March 2018, Ministry of Corporate Affairs has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognise revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers.
The standard permits two possible methods of transition:
- Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8 - Accounting policies, changes in accounting estimates and errors.
- Retrospectively with cumulative effect of initially applying the standard recognised at the date of initial application (Cumulative catch - up approach) The effective date for adoption of Ind AS 115 is financial periods beginning on or after 1 April 2018.
The Company will adopt the standard on 1 April 2018 by using the cumulative catch-up transition method and accordingly comparatives for the year ended 31 March 2018 will not be retrospectively adjusted.
Mar 31, 2017
1.1 Basis of Preparation of Financial Statements
These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Pursuant to section 133 of the Companies Act, 2013 read with rule 7 of Companies (Accounts) Rules, 2014, till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements has been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) of the Companies Act, 1956 [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 2013.
All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III (Division I) to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.
1.2 Use of estimates
The preparation of the financial statements in conformity with the generally accepted accounting principles in India requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the Balance Sheet date, reported amount of revenues and expenses for the year and disclosure of contingent liabilities as of the Balance Sheet date. The estimates and assumptions used in these financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results could differ from these estimates.
1.3 Fixed Assets and Depreciation
Tangible fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.
Computer Software is capitalized in the period in which the software is implemented for use, where it is expected to provide future enduring economic benefits; such capitalization costs include license fees and cost of implementation/ system integration services.
Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Cost includes inward freight, non refundable duties/ taxes and expenses incidental to acquisition/ installation.
Expenses relating to new planting of tea are capitalized. Expenses relating to other new plantings are capitalized except in case of some additional new planting in the unused portion of land where planting were done earlier but not covering the entire land area which is charged off when incurred.
Freehold land and leasehold land (perpetual lease) are not depreciated.
Tangible Fixed assets [other than freehold land and lease hold land (perpetual lease)] are depreciated under the written down value method [other than bearer plants (rubber trees and tea bushes) which are depreciated using straight line method] over the estimated useful lives of the assets, which are different from the lives prescribed under Schedule II to the Companies Act, 2013.
Items of Property, Plant and Equipment that have been retired from active use and are held for disposal are stated at the lower of their net carrying amount and net realizable value and are shown separately in the financial statements under the head âOther current assets''. Any write-down in this regard is recognized immediately in the Statement of Profit and Loss.
1.4 Impairment
The carrying amounts of fixed assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of fixed assets of cash generating unit exceeds the recoverable amount (i.e. higher of net selling price and value in use). In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amounts of the assets over their remaining useful lives.
1.5 Investments
Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline, other than temporary, in the value of the long term investments. Current investments are stated at lower of cost and fair value. Fair value is determined on the basis of realizable or market value.
1.6 Inventories
Inventories are stated at lower of cost and net realizable value. Cost is determined on weighted average basis and includes expenditure incurred in the normal course of business in bringing inventories to its location and condition, labour and overhead, where applicable. Inventories are written down for obsolete/slow moving/non moving items wherever necessary.
1.7 Foreign currency translation
Foreign currency transactions (covered under Accounting Standard 11 on â The effect of changes in Foreign Exchange Ratesâ) are recorded at rates prevailing on the date of the respective transactions. At the yearend monetary assets and liabilities denominated in foreign currencies are restated at the closing exchange rates. The resultant exchange differences arising from settlement of foreign currency transactions and from the year end restatement are recognized in the Statement of Profit and Loss.
1.8 Revenue Recognition
Revenue from sale of tea at auction is recognized on receipt of sale note from brokers. Revenue from sale of tea other than at auction and sale of rubber is recognized on transfer of significant risks and rewards of ownership in goods in accordance with the terms of sale. Revenue from sale of rubber/ grevillea trees is recognized at the point of felling and removing the trees from the estates.
Revenue from fixed price construction contracts is recognized on the percentage of completion method based on the proportion of contract cost incurred for work performed up to reporting date bears to the estimated total contract cost. Total cost of the contracts are estimated based on technical and other estimates. Profit on such contracts is recognized not exceeding the overall contract margin. All foreseeable losses on contracts are provided for.
1.9 Derivative Contracts
Forward exchange contracts (other than forward exchange contracts covered under Accounting Standard 11 on â The effect of changes in Foreign Exchange Ratesâ) outstanding as at the year end on account of firm commitments / highly probable forecast transactions are marked to market and the profit / losses (net) if any, are recognized in the statement of profit and loss in accordance with âGuidance Note on Accounting for Derivative Contractsâ with effect from April 1, 2016.
1.10 Accounting for Government Grants
Revenue subsidy receivable from Tea Board towards manufacture of orthodox tea is accrued on production of orthodox tea.
Revenue subsidy receivable from Tea Board towards replanting activities undertaken is accounted on sanction of such subsidy by the Tea Board.
Capital subsidy from Tea Board and Rubber Board is adjusted against the cost of specific depreciable assets on receipt of such subsidy
1.11 Employee Benefits
i) Short Term
Short term employee benefits (i.e., benefits falling due within one year after the end of the period in which the employees render the related service) are recognized as expense in the period in which employee services are rendered as per the Company''s schemes based on expected obligations on undiscounted basis.
ii) Post Retirement
Post-retirement benefits comprises of provident fund, superannuation and gratuity which are accounted for as follows:
a) Provident fund
This is a defined contribution plan where contributions are remitted to provident fund authorities in accordance with the relevant statute and charged to the Statement of Profit and Loss in the period in which the related employee services are rendered. The Company has no further obligations for future provident fund benefits in respect of these employees other than its monthly contributions.
b) Superannuation
This is a defined contribution plan. The Company contributes as per the scheme to superannuation fund administered by Life Insurance Corporation of India (LIC). The Company has no further obligations for future superannuation benefits other than its annual contributions and recognizes such contributions as expense in the period in which the related employee services are rendered.
c) Gratuity
This is a defined benefit plan. Provision is based on year-end actuarial valuation using projected unit credit method. Actuarial gains / losses are recognized immediately in the Statement of Profit and Loss as income or expense.
(iii) Other Long term :
Compensated absences
This is a defined benefit plan. Provision is based on year-end actuarial valuation using projected unit credit method. Actuarial gains/ losses are recognized immediately in the Statement of Profit and Loss as income or expense.
1.12 Replanting Expenses
Replanting expenses consequent to replacement are charged to revenue as and when incurred.
1.13 Current and Deferred tax
Current tax is provided as the amount of tax payable in respect of taxable income for the period, measured using the applicable tax rates and tax laws. Deferred tax is provided on timing differences between taxable income and accounting income, measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.
Deferred tax assets are recognized only if there is virtual/ reasonable certainty, as applicable, in keeping with Accounting Standard 22 on âAccounting for Taxes on Income'', that there will be sufficient future taxable income available to realise such assets. Deferred Tax assets are reviewed for the appropriateness of their respective carrying amount at each Balance Sheet date.
Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax in excess of MAT during the specified period. Such asset is reviewed at each balance sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax in excess of the MAT during the specified period.
1.14 Provisions and Contingent Liabilities
Provisions: Provisions are recognized when the Company has a present obligation as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when the Company has a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
Mar 31, 2016
1 Significant Accounting Policies
1.1 Basis of Preparation of Financial Statements
These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis, except for certain tangible fixed assets which are being carried at revalued amounts (refer note 1.3). Pursuant to section 133 of the Companies Act, 2013 read with rule 7 of Companies (Accounts) Rules, 2014, till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements has been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) of the Companies Act, 1956 [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 2013.
All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and noncurrent classification of assets and liabilities.
1.2 Use of estimates
The preparation of the financial statements in conformity with the generally accepted accounting principles in India requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the Balance Sheet date, reported amount of revenues and expenses for the year and disclosure of contingent liabilities as of the Balance Sheet date. The estimates and assumptions used in these financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results could differ from these estimates.
1.3 Fixed Assets and Depreciation
Revalued fixed assets (land and development) are stated at revalued amounts (market value as on June 30, 1990 and April 1,2009 based on revaluation carried out by independent values) and additions/deletions thereto since then at cost, less impairment losses, if any.
Other tangible fixed assets are stated at cost less accumulated depreciation and impairment losses, if any.
Computer Software is capitalized in the period in which the software is implemented for use, where it is expected to provide future enduring economic benefits; such capitalization costs include license fees and cost of implementation/ system integration services.
Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Cost includes inward freight, non refundable duties/ taxes and expenses incidental to acquisition/ installation.
Expenses relating to new planting of tea are capitalized. Expenses relating to other new plantings are capitalized except in case of some additional new planting in the unused portion of land where planting were done earlier but not covering the entire land area which is charged off when incurred.
Freehold land and leasehold land (perpetual lease) and land development are not depreciated.
Tangible Fixed assets other than land & development are depreciated under the written down value method over the estimated useful lives of the assets, which are different from the lives prescribed under Schedule II to the Companies Act, 2013. In order to reflect the actual usage of the assets, the estimates of useful lives of the depreciable tangible fixed assets were based on technical evaluation carried out by the Company''s expert in 2014-15 except in respect of certain agriculture assets included under Plant & Machinery which has been assessed to be 3 years. Aforesaid technical evaluation carried out in 2014-15 have been revisited by the Company''s management during the year and no change considered necessary.
Computer software capitalized are amortized on a straight line basis over a period of five years from the date of capitalization. License Fees is amortized at lower of the license period and five years.
1.4 Impairment
The carrying amounts of fixed assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of fixed assets of cash generating unit exceeds the recoverable amount (i.e. higher of net selling price and value in use). In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amounts of the assets over their remaining useful lives.
1.5 Investments
Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline, other than temporary, in the value of the long term investments. Current investments are stated at lower of cost and fair value. Fair value is determined on the basis of realizable or market value.
1.6 Inventories
Inventories are stated at lower of cost and net realizable value. Cost is determined on weighted average basis and includes expenditure incurred in the normal course of business in bringing inventories to its location and condition, labour and overhead, where applicable. Inventories are written down for obsolete/slow moving/non moving items wherever necessary.
1.7 Foreign currency translation
Foreign currency transactions are recorded at rates prevailing on the date of the respective transactions. At the yearend monetary assets and liabilities denominated in foreign currencies are restated at the closing exchange rates. The resultant exchange differences arising from settlement of foreign currency transactions and from the year end restatement are recognized in the Statement of Profit and Loss.
1.8 Revenue Recognition
Revenue from sale of tea at auction is recognized on receipt of sale note from brokers. Revenue from sale of tea other than at auction and sale of rubber is recognized on transfer of significant risks and rewards of ownership in goods in accordance with the terms of sale. Revenue from sale of rubber/ grevillea trees is recognized at the point of felling and removing the trees from the estates.
Revenue from fixed price construction contracts is recognized on the percentage of completion method based on the proportion of contract cost incurred for work performed up to reporting date bears to the estimated total contract cost. Total cost of the contracts are estimated based on technical and other estimates. Profit on such contracts is recognized not exceeding the overall contract margin. All foreseeable losses on contracts are provided for.
1.9 Derivative Contracts
Forward exchange contracts outstanding as at the year end on account of firm commitment / highly probable forecast transactions are marked to market and the losses (net), if any, are recognized in the Statement of Profit and Loss and gains (net) are ignored in accordance with the Announcement of Institute of Chartered Accountants of India on "Accounting for Derivatives" issued in March 2008.
1.10 Accounting for Government Grants
Revenue subsidy receivable from Tea Board towards manufacture of orthodox tea is accrued on production of orthodox tea.
Revenue subsidy receivable from Tea Board towards replanting activities undertaken is accounted on sanction of such subsidy by the Tea Board.
Capital subsidy from Tea Board and Rubber Board is adjusted against the cost of specific depreciable assets on receipt of such subsidy
1.11 Employee Benefits
i) Short Term
Short term employee benefits (i.e., benefits falling due within one year after the end of the period in which the employees render the related service) are recognized as expense in the period in which employee services are rendered as per the Company''s schemes based on expected obligations on undiscounted basis.
ii) Post Retirement
Post-retirement benefits comprises of provident fund, superannuation and gratuity which are accounted for as follows:
a) Provident fund
This is a defined contribution plan where contributions are remitted to provident fund authorities in accordance with the relevant statute and charged to the Statement of Profit and Loss in the period in which the related employee services are rendered. The Company has no further obligations for future provident fund benefits in respect of these employees other than its monthly contributions.
b) Superannuation
This is a defined contribution plan. The Company contributes as per the scheme to superannuation fund administered by Life Insurance Corporation of India (LIC). The Company has no further obligations for future superannuation benefits other than its annual contributions and recognizes such contributions as expense in the period in which the related employee services are rendered.
c) Gratuity
This is a defined benefit plan. Provision is based on year-end actuarial valuation using projected unit credit method. Actuarial gains / losses are recognized immediately in the Statement of Profit and Loss as income or expense.
(iii) Other Long term :
Compensated absences
This is a defined benefit plan. Provision is based on year-end actuarial valuation using projected unit credit method. Actuarial gains/ losses are recognized immediately in the Statement of Profit and Loss as income or expense.
1.12 Replanting Expenses
Replanting expenses consequent to replacement are charged to revenue as and when incurred.
1.13 Current and Deferred tax
Current tax is provided as the amount of tax payable in respect of taxable income for the period, measured using the applicable tax rates and tax laws. Deferred tax is provided on timing differences between taxable income and accounting income, measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.
Deferred tax assets are recognized only if there is virtual/ reasonable certainty, as applicable, in keeping with Accounting Standard 22 on ''Accounting for Taxes on Income'', that there will be sufficient future taxable income available to realize such assets. Deferred Tax assets are reviewed for the appropriateness of their respective carrying amount at each Balance Sheet date.
Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax in excess of MAT during the specified period. Such asset is reviewed at each balance sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax in excess of the MAT during the specified period.
1.14 Provisions and Contingent Liabilities
Provisions: Provisions are recognized when the Company has a present obligation as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when the Company has a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
(v) Rights, preferences and restrictions attached to Equity shares mentioned above :
The company has only one class of equity shares having a par value of '' 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, in proportion to their shareholding.
Term loan from banks
a Loan availed Rs, 6,000.00 Lacs during 2010-11 and 2011-12 repayable in 17 quarterly installments of Rs, 333.30 Lacs commencing from September 2012 and final quarterly installment of Rs, 333.90 Lacs is secured by equitable mortgage of immovable properties of the Company situated in Kumbazha estate. The loan carries an interest rate of base rate plus 3% per annum payable on a monthly basis from disbursement of the loan. During March 2014, the Company has revised the terms of repayment of the loan outstanding of Rs, 1,500 lacs (balance being paid) repayable in 5 quarterly installments commencing from December 2015 of Rs, 166.67 Lacs and Rs, 333.33 Lacs for the balance 4 installments upto December 2016. Yearend balance is Rs, 1,000.00 Lacs (Previous year Rs, 1,500.01 Lacs).
b Loan availed of Rs, 1,173.61 Lacs during 2012-2013 is repayable in 31 quarterly installments of Rs, 36.69 Lacs commencing from July 2014 and final quarterly installment of Rs, 36.22 Lacs, is secured by equitable mortgage to be created on immovable property of the Company situated in Mayfield Estate. The loan carries an interest rate of base rate plus 2.75% per annum payable on a monthly basis from disbursement of the loan. Yearend balance is Rs, 916.88 Lacs (Previous year Rs, 1,063.59 Lacs)
c Loan availed of Rs, 4,000.00 Lacs during the year 2013-14 is repayable in 24 quarterly installments repayable as 6 quarterly installments of Rs, 50.00 Lacs commencing from June 2015 upto September 2016, 4 quarterly installments of Rs, 100.00 Lacs from December 2016 to September 2017, 8 quarterly installment of Rs, 200.00 Lacs from December 2017 to September 2019, 4 quarterly installments of Rs, 250.00 Lacs from December 2019 to September 2020 and 2 quarterly final installments of Rs, 350 Lacs from December 2020 to March 2021, is secured by equitable mortgage of immovable properties of the Company situated in Kumbazha estate. The loan carries an interest rate of base rate plus 2% per annum payable on a monthly basis from disbursement of the loan. Yearend balance is Rs, 3,800.00 Lacs (Previous year Rs, 4,000.00 Lacs).
Term loan from others
d Term loan from others are secured by hypothecation of assets acquired out of these loans which are repayable in equated monthly installments (ranging between 3 to 5 years) along with the applicable interest rates (ranging between 10.75% to 15.01%).
Provision for contingency represents the potential exposure on account of legal dispute. However the nature of the provision has not been disclosed in detail on the grounds that it is expected to prejudice the interests of the Company.
Cash credit from banks
Secured by equitable mortgage of immovable properties of the Company situated in Arrapetta Estate, hypothecation of standing crop in Achoor, Arrapetta, Panniar, Mayfield , Lahai, Isfield and Nagamallay Estates and by hypothecation of stocks of tea, rubber, trading merchandise, stores and spares, book debts and other movable assets both present and future.
Mar 31, 2015
1.1 Basis of Preparation of Financial Statements
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis, except for certain tangible fixed
assets which are being carried at revalued amounts (refer note 1.3).
Pursuant to section 133 of the Companies Act, 2013 read with rule 7 of
Companies (Accounts) Rules, 2014, till the standards of accounting or
any addendum thereto are prescribed by Central Government in
consultation and recomendation of the National Financial Reporting
Authority, the existing Accounting Standards notified under the
Companies Act, 1956 shall continue to apply. Consequently, these
financial statements has been prepared to comply in all material
aspects with the accounting standards notified under Section 211(3C)
[Companies (Accounting Standards) Rules, 2006, as amended] and other
relevant provisions of the Companies Act, 2013.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in Schedule III to the Companies Act, 2013. Based on
the nature of products and the time between the acquisition of assets
for processing and their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle as 12 months for the
purpose of current and non current classification of assets and
liabilities.
1.2 Use of estimates
The preparation of the financial statements in conformity with the
generally accepted accounting principles in India requires the
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities as of the Balance Sheet date,
reported amount of revenues and expenses for the year and disclosure of
contingent liabilities as of the Balance Sheet date. The estimates and
assumptions used in these financial statements are based upon
management''s evaluation of the relevant facts and circumstances as of
the date of the financial statements. Actual results could differ from
these estimates.
1.3 Fixed Assets and Depreciation
Revalued fixed assets (land and development) are stated at revalued
amounts (market value as on June 30, 1990 and April 1,2009 based on
revaluation carried out by independent valuers) and additions/deletions
thereto since then at cost, less accumulated depreciation and
impairment losses, if any.
Other tangible fixed assets are stated at cost less accumulated
depreciation and impairment losses, if any.
Computer Software is capitalised in the period in which the software is
implemented for use, where it is expected to provide future enduring
economic benefits; such capitalisation costs include license fees and
cost of implementation/ system integration services.
Cost comprises the purchase price and any attributable cost of bringing
the asset to its working condition for its intended use. Cost includes
inward freight, non refundable duties/ taxes and expenses incidental to
acquisition/installation.
Expenses relating to new planting of tea are capitalised. Expenses
relating to other new plantings are capitalised except in case of some
additional new planting in the unused portion of land where planting
were done earlier but not covering the entire land area which is
charged off when incurred.
Freehold land and leasehold land (perpetual lease) and land development
are not depreciated.
Tangible Fixed assets other than land & development are depreciated
under the written down value method over the estimated useful lives of
the assets, which are different from the lives prescribed under
Schedule II to the Companies Act, 2013. In order to reflect the actual
usage of the assets, the estimates of useful lives of the depreciable
tangible fixed assets based on technical evaluation carried out by the
Company''s expert have not undergone a change on account of transition
to the Companies Act, 2013 except in respect of certain agriculture
assets included under Plant & Machinery which has been assessed to be 3
years.
Useful lives adopted by the Company for various class of assets is as
follows
Useful Lives
Factory Buildings 30 years
Non Factory Buildings 60 years
Plant and Machinery (including agricultural assets) 3/ 20 years
Furniture and Fittings 6 years
Water Supply 20/ 30/ 60 years
Vehicles 10 years
Computer software capitalised are amortised on a straight line basis
over a period of five years from the date of capitalisation. License
Fees is amortised at lower of the license period and five years.
1.4 Impairment
The carrying amounts of fixed assets are reviewed at each Balance Sheet
date if there is any indication of impairment based on internal/
external factors. An impairment loss is recognized wherever the
carrying amount of fixed assets of cash generating unit exceeds the
recoverable amount (i.e. higher of net selling price and value in use).
In assessing value in use, the estimated future cash flows are
discounted to their present value at the weighted average cost of
capital. After impairment, depreciation is provided on the revised
carrying amounts of the assets over their remaining useful lives.
1.5 Investments
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognise a decline, other than
temporary, in the value of the long term investments. Current
investments are stated at lower of cost and fair value. Fair value is
determined on the basis of realisable or market value.
1.6 Inventories
Inventories are stated at lower of cost and net realisable value. Cost
is determined on weighted average basis and includes expenditure
incurred in the normal course of business in bringing inventories to
its location and condition, labour and overhead, where applicable.
Inventories are written down for obsolete/slow moving/non moving items
wherever necessary.
1.7 Foreign currency translation
Foreign currency transactions are recorded at rates prevailing on the
date of the respective transactions. At the year end monetary assets
and liabilities denominated in foreign currencies are restated at the
closing exchange rates. The resultant exchange differences arising from
settlement of foreign currency transactions and from the year end
restatement are recognised in the Statement of Profit and Loss.
1.8 Revenue Recognition
Revenue from sale of tea at auction is recognised on receipt of sale
note from brokers. Revenue from sale of tea other than at auction and
sale of rubber is recognised on transfer of significant risks and
rewards of ownership in goods in accordance with the terms of sale.
Revenue from sale of rubber/ grevillea trees is recognised at the point
of felling and removing the trees from the estates.
Revenue from fixed price construction contracts is recognised on the
percentage of completion method based on the proportion of contract
cost incurred for work performed up to reporting date bears to the
estimated total contract cost. Total cost of the contracts are
estimated based on technical and other estimates. Profit on such
contracts is recognised not exceeding the overall contract margin. All
foreseeable losses on contracts are provided for.
1.9 Derivative Contracts
Forward exchange contracts outstanding as at the year end on account of
firm commitment / highly probable forecast transactions are marked to
market and the losses (net), if any, are recognised in the Statement of
Profit and Loss and gains (net) are ignored in accordance with the
Announcement of Institute of Chartered Accountants of India on "
Accounting for Derivatives" issued in March 2008.
1.10 Accounting for Government Grants
Revenue subsidy receivable from Tea Board towards manufacture of
orthodox tea is accrued on production of orthodox tea. Revenue subsidy
receivable from Tea Board towards replanting activities undertaken is
accounted on sanction of such subsidy by the Tea Board. Capital
subsidy from Tea Board and Rubber Board is adjusted against the cost of
specific depreciable assets on receipt of such subsidy.
1.11 Employee Benefits
i) Short Term
Short term employee benefits (i.e., benefits falling due within one
year after the end of the period in which the employees render the
related service) are recognised as expense in the period in which
employee services are rendered as per the Company''s schemes based on
expected obligations on undiscounted basis.
ii) Post Retirement
Post-retirement benefits comprises of provident fund, superannuation
and gratuity which are accounted for as follows:
a) Provident fund
This is a defined contribution plan where contributions are remitted to
provident fund authorities in accordance with the relevant statute and
charged to the Statement of Profit and Loss in the period in which the
related employee services are rendered. The Company has no further
obligations for future provident fund benefits in respect of these
employees other than its monthly contributions.
b) Superannuation
This is a defined contribution plan. The Company contributes as per the
scheme to superannuation fund administered by Life Insurance
Corporation of India (LIC). The Company has no further obligations for
future superannuation benefits other than its annual contributions and
recognises such contributions as expense in the period in which the
related employee services are rendered.
c) Gratuity
This is a defined benefit plan. Provision is based on year-end
actuarial valuation using projected unit credit method. Actuarial gains
/ losses are recognised immediately in the Statement of Profit and Loss
as income or expense.
(iii) Other Long term :
Compensated absences
This is a defined benefit plan. Provision is based on year-end
actuarial valuation using projected unit credit method. Actuarial
gains/ losses are recognised immediately in the Statement of Profit and
Loss as income or expense.
1.12 Replanting Expenses
Replanting expenses consequent to replacement are charged to revenue as
and when incurred.
1.13 Current and Deferred tax
Current tax is provided as the amount of tax payable in respect of
taxable income for the period, measured using the applicable tax rates
and tax laws. Deferred tax is provided on timing differences between
taxable income and accounting income, measured using the tax rates and
tax laws that have been enacted or substantively enacted by the Balance
Sheet date.
Deferred tax assets are recognised only if there is virtual/ reasonable
certainty, as applicable, in keeping with Accounting Standard 22 on
''Accounting for Taxes on Income'', that there will be sufficient future
taxable income available to realise such assets. Deferred Tax assets
are reviewed for the appropriateness of their respective carrying
amount at each Balance Sheet date.
1.14 Provisions and Contingent Liabilities
Provisions: Provisions are recognised when the Company has a present
obligation as a result of a past event, and it is probable that an
outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate of the amount of the
obligation can be made. Provisions are measured at the best estimate of
the expenditure required to settle the present obligation at the
Balance Sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when the
Company has a possible obligation arising from past events, the
existence of which will be confirmed only by the occurrence or non
occurrence of one or more uncertain future events not wholly within the
control of the Company or a present obligation that arises from past
events where it is either not probable that an outflow of resources
will be required to settle or a reliable estimate of the amount cannot
be made.
Mar 31, 2014
1.1 Basis of Preparation of Financial Statements
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis, except for certain tangible assets
which are being carried at revalued amounts (refer note 1.3) .Pursuant
to circular 15/2013 dated 13.09.2013 read with circular 08/2014 dated
04.04.2014, till the Standards of Accounting or any addendum thereto
are prescribed by Central Government in consultation and recommendation
of the National Financial Reporting Authority, the existing Accounting
Standards notified under the Companies Act, 1956 shall continue to
apply. Consequently these financial statements have been prepared to
comply, in all material respects, with the Accounting Standards
notified under Section 211(3C) [Companies (Accounting Standards) Rules,
2006, as amended] and the other relevant provisions of the Companies
Act, 1956.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Revised Schedule VI to the Companies Act, 1956.
Based on the nature of products and the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current and non current classification of
assets and liabilities.
1.2 Use of estimates
The preparation of the financial statements in conformity with the
generally accepted accounting principles in India requires the
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities as of the Balance Sheet date,
reported amount of revenues and expenses for the year and disclosure of
contingent liabilities as of the Balance Sheet date. The estimates and
assumptions used in these financial statements are based upon
management''s evaluation of the relevant facts and circumstances as of
the date of the financial statements. Actual results could differ from
these estimates.
1.3 Fixed Assets and Depreciation
Revalued fixed assets (land and development) are stated at revalued
amounts (market value as on June 30, 1990 and April 1,2009 based on
revaluation carried out by independent valuers) and additions/deletions
thereto since then at cost, less accumulated depreciation and
impairment losses, if any.
Other tangible fixed assets are stated at cost less accumulated
depreciation and impairment losses, if any.
Computer Software is capitalised in the period in which the software is
implemented for use, where it is expected to provide future enduring
economic benefits; such capitalisation costs include license fees and
cost of implementation/ system integration services.
Cost comprises the purchase price and any attributable cost of bringing
the asset to its working condition for its intended use. Cost includes
inward freight, non refundable duties/ taxes and expenses incidental to
acquisition/installation.
Expenses relating to new planting of tea are capitalised. Expenses
relating to other new plantings are capitalised except in case of some
additional new planting in the unused portion of land where planting
were done earlier but not covering the entire land area which is
charged off when incurred.
Freehold land and leasehold land (perpetual lease) and land development
are not depreciated.
Tangible Fixed assets other than land and development are depreciated
under the written down value method in the manner and at the rates
specified in Schedule XIV of the Companies Act, 1956, except for
Furniture and Fittings which are depreciated at 33.33%. Assets costing
individually Rs.5000 and below are fully depreciated in the year of
addition.
Computer software capitalised are amortised on a straight line basis
over a period of five years from the date of capitalisation. License
Fees is amortised at lower of the license period and five years.
1.4 Impairment
The carrying amounts of fixed assets are reviewed at each Balance Sheet
date if there is any indication of impairment based on internal/
external factors. An impairment loss is recognized wherever the
carrying amount of fixed assets of cash generating unit exceeds the
recoverable amount (i.e. higher of net selling price and value in use).
In assessing value in use, the estimated future cash flows are
discounted to their present value at the weighted average cost of
capital. After impairment, depreciation is provided on the revised
carrying amounts of the assets over their remaining useful lives.
1.5 Investments
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognise a decline, other than
temporary, in the value of the long term investments. Current
investments are stated at lower of cost and fair value. Fair value is
determined on the basis of realisable or market value.
1.6 Inventories
Inventories are stated at lower of cost and net realisable value. Cost
is determined on weighted average basis and includes expenditure
incurred in the normal course of business in bringing inventories to
its location and condition, labour and overhead, where applicable.
Inventories are written down for obsolete/slow moving/non moving items
wherever necessary.
1.7 Foreign currency translation
Foreign currency transactions are recorded at rates prevailing on the
date of the respective transactions. At the year end monetary assets
and liabilities denominated in foreign currencies are restated at the
closing exchange rates. The resultant exchange differences arising from
settlement of foreign currency transactions and from the year end
restatement are recognised in the Statement of Profit and Loss.
1.8 Revenue Recognition
Revenue from sale of tea at auction is recognised on receipt of sale
note from brokers. Revenue from sale of tea other than at auction and
sale of rubber is recognised on transfer of significant risks and
rewards of ownership in goods in accordance with the terms of sale.
Revenue from sale of rubber/ grevillea trees is recognised at the point
of felling and removing the trees from the estates.
Revenue from fixed price construction contracts is recognised on the
percentage of completion method based on the proportion of contract
cost incurred for work performed up to reporting date bears to the
estimated total contract cost. Total cost of the contracts are
estimated based on technical and other estimates. Profit on such
contracts is recognised not exceeding the overall contract margin. All
foreseeable losses on contracts are provided for.
1.9 Derivative Contracts
Forward exchange contracts outstanding as at the year end on account of
firm commitment / highly probable forecast transactions are marked to
market and the losses (net), if any, are recognised in the Statement of
Profit and Loss and gains (net) are ignored in accordance with the
Announcement of Institute of Chartered Accountants of India on "
Accounting for Derivatives" issued in March 2008.
1.10 Accounting for Government Grants
Revenue subsidy receivable from Tea Board towards manufacture of
orthodox tea is accrued on production of orthodox tea. Revenue subsidy
receivable from Tea Board towards replanting activities undertaken is
accounted on sanction of such subsidy by the Tea Board. Capital subsidy
from Tea Board and Rubber Board is adjusted against the cost of
specific depreciable assets on receipt of such subsidy
1.11 Employee Benefits
i) Short Term
Short term employee benefits (i.e., benefits falling due within one
year after the end of the period in which the employees render the
related service) are recognised as expense in the period in which
employee services are rendered as per the Company''s schemes based on
expected obligations on undiscounted basis.
ii) Post Retirement
Post-retirement benefits comprises of provident fund, superannuation
and gratuity which are accounted for as follows:
a) Provident fund
This is a defined contribution plan where contributions are remitted to
provident fund authorities in accordance with the relevant statute and
charged to the Statement of Profit and Loss in the period in which the
related employee services are rendered. The Company has no further
obligations for future provident fund benefits in respect of these
employees other than its monthly contributions.
b) Superannuation
This is a defined contribution plan. The Company contributes as per the
scheme to superannuation fund administered by Life Insurance
Corporation of India (LIC). The Company has no further obligations for
future superannuation benefits other than its annual contributions and
recognises such contributions as expense in the period in which the
related employee services are rendered.
c) Gratuity
This is a defined benefit plan. Provision is based on year-end
actuarial valuation using projected unit credit method. Actuarial gains
/ losses are recognised immediately in the Statement of Profit and Loss
as income or expense.
(iii) Other Long term :
Compensated absences
This is a defined benefit plan. Provision is based on year-end
actuarial valuation using projected unit credit method. Actuarial
gains/ losses are recognised immediately in the Statement of Profit and
Loss as income or expense.
1.12 Replanting Expenses
Replanting expenses consequent to replacement are charged to revenue as
and when incurred.
1.13 Current and Deferred tax
Current tax is provided as the amount of tax payable in respect of
taxable income for the period, measured using the applicable tax rates
and tax laws. Deferred tax is provided on timing differences between
taxable income and accounting income, measured using the tax rates and
tax laws that have been enacted or substantively enacted by the Balance
Sheet date.
Deferred tax assets are recognised only if there is virtual/ reasonable
certainty, as applicable, in keeping with Accounting Standard 22 on
''Accounting for Taxes on Income'', that there will be sufficient future
taxable income available to realise such assets. Deferred Tax assets
are reviewed for the appropriateness of their respective carrying
amount at each Balance Sheet date.
1.14 Provisions and Contingent Liabilities
Provisions: Provisions are recognised when the Company has a present
obligation as a result of a past event, and it is probable that an
outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate of the amount of the
obligation can be made. Provisions are measured at the best estimate of
the expenditure required to settle the present obligation at the
Balance Sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when the
Company has a possible obligation arising from past events, the
existence of which will be confirmed only by the occurrence or non
occurrence of one or more uncertain future events not wholly within the
control of the Company or a present obligation that arises from past
events where it is either not probable that an outflow of resources
will be required to settle or a reliable estimate of the amount cannot
be made.
Mar 31, 2013
1.1 Basis of Preparation of Financial Statements
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis, except for certain tangible assets
which are being carried at revalued amounts (refer note 1.3). These
financial statements have been prepared to comply, in all material
respects, with the Accounting Standards notified under Section 211(3C)
[Companies (Accounting Standards) Rules, 2006, as amended] and the
other relevant provisions of the Companies Act, 1956.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Revised Schedule VI to the Companies Act, 1956.
Based on the nature of products and the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current and non current classification of
assets and liabilities.
1.2 Use of Estimates
The preparation of the financial statements in conformity with the
generally accepted accounting principles in India requires the
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities as of the Balance Sheet date,
reported amount of revenues and expenses for the year and disclosure of
contingent liabilities as of the Balance Sheet date. The estimates and
assumptions used in these financial statements are based upon
management''s evaluation of the relevant facts and circumstances as of
the date of the financial statements. Actual results could differ from
these estimates.
1.3 Fixed Assets and Depreciation
Revalued fixed assets (land and development) are stated at revalued
amounts (market value as on June 30, 1990 and April 1,2009 based on
revaluation carried out by independent valuers) and additions/deletions
thereto since then at cost, less accumulated depreciation and
impairment losses, if any.
Other fixed assets are stated at cost less accumulated depreciation and
impairment losses, if any.
Cost comprises the purchase price and any attributable cost of bringing
the asset to its working condition for its intended use. Cost includes
inward freight, non refundable duties/ taxes and expenses incidental to
acquisition/installation.
Expenses relating to new planting of tea are capitalised.
Freehold land and leasehold land (perpetual lease) and land development
are not depreciated.
Fixed assets other than land and development are depreciated under the
written down value method in the manner and at the rates specified in
Schedule XIV of the Companies Act, 1956, except for Furniture and
Fittings which are depreciated at 33.33%. Assets costing individually
Rs.5000 and below are fully depreciated in the year of addition.
1.4 Impairment
The carrying amounts of fixed assets are reviewed at each Balance Sheet
date if there is any indication of impairment based on internal/
external factors. An impairment loss is recognized wherever the
carrying amount of fixed assets of cash generating unit exceeds the
recoverable amount (i.e. higher of net selling price and value in use).
In assessing value in use, the estimated future cash flows are
discounted to their present value at the weighted average cost of
capital. After impairment, depreciation is provided on the revised
carrying amounts of the assets over their remaining useful lives.
1.5 Investments
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognise a decline, other than
temporary, in the value of the long term investments. Current
investments are stated at lower of cost and fair value.Fair value is
determined on the basis of realisable or market value.
1.6 Inventories
Inventories are stated at lower of cost and net realisable value. Cost
is determined on weighted average basis and includes expenditure
incurred in the normal course of business in bringing inventories to
its location and condition, labour and overhead, where applicable.
Inventories are written down for obsolete/slow moving/non moving items
wherever necessary.
1.7 Foreign currency translation
Foreign currency transactions are recorded at rates prevailing on the
date of the respective transactions. At the year end monetary assets
and liabilities denominated in foreign currencies are restated at the
closing exchange rates. The resultant exchange differences arising from
settlement of foreign currency transactions and from the year end
restatement are recognised in the Statement of Profit and Loss.
1.8 Revenue Recognition
Revenue from sale of tea at auction is recognised on receipt of sale
note from brokers. Revenue from sale of tea other than at auction and
sale of rubber is recognised on transfer of ownership in goods in
accordance with the terms of sale. Revenue from sale of rubber/
grevillea trees is recognised at the point of felling and removing the
trees from the estates.
Revenue from fixed price construction contracts is recognised on the
percentage of completion method based on the proportion of contract
cost incurred for work performed up to reporting date bears to the
estimated total contract cost. Total cost of the contracts are
estimated based on technical and other estimates. Profit on such
contracts is recognised not exceeding the overall contract margin. All
foreseeable losses on contracts are provided for.
1.9 Derivative Contracts
Forward exchange contracts outstanding as at the year end on account of
firm commitment / highly probable forecast transactions are marked to
market and the losses (net), if any, are recognised in the Statement of
Profit and Loss and gains (net) are ignored in accordance with the
Announcement of Institute of Chartered Accountants of India on "
Accounting for Derivatives" issued in March 2008.
1.10 Accounting for Government Grants
Revenue subsidy receivable from Tea Board towards manufacture of
orthodox tea is accrued on production of orthodox tea. Revenue subsidy
receivable from Tea Board towards replanting activities undertaken is
accounted on sanction of such subsidy by the Tea Board. Capital
subsidy from Tea Board and Rubber Board is adjusted against the cost of
specific depreciable assets on receipt of such subsidy.
1.11 Employee Benefits
i) Short Term
Short term employee benefits (i.e., benefits falling due within one
year after the end of the period in which the employees render the
related service) are recognised as expense in the period in which
employee services are rendered as per the Company''s schemes based on
expected obligations on undiscounted basis.
ii) Post Retirement
Post-retirement benefits comprises of provident fund, superannuation
and gratuity which are accounted for as follows:
a) Provident fund
This is a defined contribution plan where contributions are remitted to
provident fund authorities in accordance with the relevant statute and
charged to the Statement of Profit and Loss in the period in which the
related employee services are rendered. The Company has no further
obligations for future provident fund benefits in respect of these
employees other than its monthly contributions. Also refer Note 25.2
b) Superannuation
This is a defined contribution plan. The Company contributes as per the
scheme to superannuation fund administered by Life Insurance
Corporation of India (LIC). The Company has no further obligations for
future superannuation benefits other than its annual contributions and
recognises such contributions as expense in the period in which the
related employee services are rendered.
c) Gratuity
This is a defined benefit plan. Provision is based on year-end
actuarial valuation using projected unit credit method. Actuarial gains
/ losses are recognised immediately in the Statement of Profit and Loss
as income or expense.
(iii) Other Long term :
Compensated absences
This is a defined benefit plan. Provision is based on year-end
actuarial valuation using projected unit credit method. Actuarial
gains/ losses are recognised immediately in the Statement of Profit and
Loss as income or expense.
1.12 Replanting Expenses
Replanting expenses relating to Tea consequent to replacement are
charged to revenue as and when incurred. All planting expenses relating
to rubber is charged off.
1.13 Current and Deferred tax
Current tax is provided as the amount of tax payable in respect of
taxable income for the period, measured using the applicable tax rates
and tax laws. Deferred tax is provided on timing differences between
taxable income and accounting income, measured using the tax rates and
tax laws that have been enacted or substantively enacted by the Balance
Sheet date.
Deferred tax assets are recognised only if there is virtual/ reasonable
certainty, as applicable, in keeping with Accounting Standard 22 on
''Accounting for Taxes on Income'', that there will be sufficient future
taxable income available to realise such assets. Deferred Tax assets
are reviewed for the appropriateness of their respective carrying
amount at each Balance Sheet date.
1.14 Provisions and Contingent Liabilities
Provisions: Provisions are recognised when the Company has a present
obligation as a result of a past event, and it is probable that an
outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate of the amount of the
obligation can be made. Provisions are measured at the best estimate of
the expenditure required to settle the present obligation at the
Balance Sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when the
Company has a possible obligation arising from past events, the
existence of which will be confirmed only by the occurrence or non
occurrence of one or more uncertain future events not wholly within the
control of the Company or a present obligation that arises from past
events where it is either not probable that an outflow of resources
will be required to settle or a reliable estimate of the amount cannot
be made.
Mar 31, 2012
1.1 Basis of Preparation of Financial Statements
These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis, except for certain tangible assets which are being carried at revalued amounts (refer note 1.3). These financial statements have been prepared to comply in all material respects with the Accounting Standards notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and the other relevant provisions of the Companies Act, 1956.
All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non current classification of assets and liabilities.
1.2 Use of Estimates
The preparation of the financial statements in conformity with the generally accepted accounting principles in India requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the Balance Sheet date, reported amount of revenues and expenses for the year and disclosure of contingent liabilities as of the Balance Sheet date. The estimates and assumptions used in these financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results could differ from these estimates.
1.3 Fixed Assets and Depreciation
Revalued fixed assets (land and development) are stated at revalued amounts (market value as on June 30, 1990 and April 1,2009 based on revaluation carried out by independent valuers) and additions/deletions thereto since then at cost, less accumulated depreciation and impairment losses, if any.
Other fixed assets are stated at cost less accumulated depreciation and impairment losses, if any.
Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Cost includes inward freight, non refundable duties/ taxes and expenses incidental to acquisition/installation.
Expenses relating to new planting of tea are capitalised.
Fixed assets other than land and development are depreciated under the written down value method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956, except for Furniture and Fittings which are depreciated at 33.33%. No depreciation is charged on the land and development. Assets costing individually Rs.5000 and below are fully depreciated in the year of addition.
1.4 Impairment
The carrying amounts of fixed assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/ external factors. An impairment loss is recognized wherever the carrying amount of fixed assets of cash generating unit exceeds the recoverable amount (i.e. higher of net selling price and value in use). In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amounts of the assets over their remaining useful lives.
1.5 Investments
Long-term investments are carried at cost. However, provision for diminution in value is made to recognise a decline, other than temporary, in the value of the long term investments. Current investments are stated at lower of cost and fair value.Fair value is determined on the basis of realisable or market value.
1.6 Inventories
Inventories are stated at lower of cost and net realisable value. Cost is determined on weighted average basis and includes expenditure incurred in the normal course of business in bringing inventories to its location and condition, labour and overhead, where applicable. Inventories are written down for obsolete/slow moving/non moving items wherever necessary.
1.7 Foreign Currency Transactions
Foreign currency transactions are recorded at rates prevailing on the date of the respective transactions. At the year end monetary assets and liabilities denominated in foreign currencies are restated at the closing exchange rates. The resultant exchange differences arising from settlement of foreign currency transactions and from the year end restatement are recognised in the Statement of Profit and Loss.
1.8 Revenue Recognition
Revenue from sale of tea at auction is recognised on receipt of sale note from brokers. Revenue from sale of tea other than at auction and from sale of rubber is recognised on transfer of ownership in goods in accordance with the terms of sale. Revenue from sale of rubber/ grevillea trees is recognised at the point of felling and removing the trees from the estates.
Revenue from fixed price construction contracts is recognised on the percentage of completion method based on the proportion of contract cost incurred for work performed up to reporting date bears to the estimated total contract cost. Total cost of the contracts are estimated based on technical and other estimates. Profit on such contracts is recognised not exceeding the overall contract margin. All foreseeable losses on contracts are provided for.
1.9 Derivative Contracts
Forward exchange contracts outstanding as at the year end on account of firm commitment / highly probable forecast transactions are marked to market and the losses (net), if any, are recognised in the Statement of Profit and Loss and gains (net) are ignored in accordance with the Announcement of Institute of Chartered Accountants of India on " Accounting for Derivatives" issued in March 2008.
1.10 Accounting for Government Grants
Revenue subsidy receivable from Tea Board towards manufacture of orthodox tea is accrued on despatch of orthodox tea.
Revenue subsidy receivable from Tea Board towards replanting activities undertaken is accounted on sanction of such subsidy by the Tea Board.
Capital subsidy from Tea Board and Rubber Board is adjusted against the cost of specific depreciable assets on receipt of such subsidy.
1.11 Employee Benefits
i) Short Term
Short term employee benefits (i.e., benefits falling due within one year after the end of the period in which the employees render the related service) are recognised as expense in the period in which employee services are rendered as per the Company's schemes based on expected obligations on undiscounted basis.
ii) Post Retirement
Post-retirement benefits comprise of provident fund, superannuation and gratuity which are accounted for as follows:
a) Provident fund
For certain category of employees, this is a defined contribution plan where contributions are remitted to provident fund authorities in accordance with the relevant statute and charged to the Statement of Profit and Loss in the period in which the related employee services are rendered. The Company has no further obligations for future provident fund benefits in respect of these employees other than its monthly contributions.
Certain category of employees of the Company receive provident fund benefits, which are administered by the Provident Fund Trust setup by the Company. Aggregate contributions along with interest thereon are paid at retirement, death, incapacitation or termination of employment. Both the employees and the Company make monthly contributions at specified percentage of the employee's salary to such Provident Fund Trust. The Company has an obligation to fund any shortfall in return on plan assets over the interest rates prescribed by the authorities from time to time. In view of the Company's obligation to meet the shortfall this is a defined benefit plan. Actuarial valuation of the Company's liability under such scheme is carried out under the Projected Unit Credit Method at the year end and the charge/ gain, if any, is recognised in the Statement of Profit and Loss. Actuarial gains/ losses are recognised immediately in the Statement of Profit and Loss as income/ expense.
b) Superannuation
This is a defined contribution plan. The Company contributes as per the scheme to superannuation fund administered by Life Insurance Corporation of India (LIC). The Company has no further obligations for future superannuation benefits other than its annual contributions and recognises such contributions as expense in the period in which the related employee services are rendered.
c) Gratuity
This is a defined benefit plan. Provision is based on year-end actuarial valuation using Projected Unit Credit Method. Actuarial gains / losses are recognised immediately in the Statement of Profit and Loss as income or expense.
(iii) Other Long term :
Compensated absences
This is a defined benefit plan. Provision is based on year-end actuarial valuation using Projected Unit Credit Method. Actuarial gains/ losses are recognised immediately in the Statement of Profit and Loss as income or expense.
1.12 Replanting Expenses
Replanting expenses relating to Tea consequent to replacement are charged to revenue as and when incurred. All planting expenses relating to rubber is charged off.
1.13 Current and Deferred tax
Current tax is provided as the amount of tax payable in respect of taxable income for the period, measured using the applicable tax rates and tax laws. Deferred tax is provided on timing differences between taxable income and accounting income, measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.
Deferred tax assets are recognised only if there is virtual/ reasonable certainty, as applicable, in keeping with Accounting Standard 22 on 'Accounting for Taxes on Income', that there will be sufficient future taxable income available to realise such assets. Deferred Tax assets are reviewed for the appropriateness of their respective carrying amount at each Balance Sheet date.
1.14 Provisions and Contingent Liabilities
Provisions: Provisions are recognised when the Company has a present obligation as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when the Company has a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
Mar 31, 2011
1.1 Basis of Preparation of Financial Statements
The financial statements are prepared under historical cost convention except in so far they relate to revaluation of fixed assets (referred to in Note 1.3) in accordance with the generally accepted accounting principles in India and comply in all material respects with the accounting standards notified by the Companies (Accounting Standards) Rules, 2006 and with the relevant provisions of the Companies Act, 1956.
1.2 Use of estimates
The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the Balance Sheet date, reported amount of revenues and expenses for the year and disclosure of contingent liabilities as of the Balance Sheet date. The estimates and assumptions used in the accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results could differ from these estimates.
1.3 Fixed Assets
Fixed Assets are stated at cost less depreciation except in the case of Land and Development which is stated at the market value as on June 30,1990 and April 1,2009 based on revaluation carried out by independent valuers and additions/deletions thereto since then, at cost.
Expenses relating to new planting are capitalised.
1.4 Depreciation
Fixed assets other than land and development are depreciated under the written down value method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. No depreciation is charged on the land and development. Assets costing individually Rs.5000 and below are fully depreciated in the year of addition.
1.5 Impairment of assets
Consideration is given at each balance sheet date to determine whether there is any modification or impairment of the carrying amount of the fixed assets. If any condition exists, an asset's recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of any asset exceeds recoverable amount.
1.6 Inventories
Stores and spare parts are valued at cost ascertained generally on specific identification method. Nursery stocks are valued at cost incurred in raising and maintaining such stocks till transplantation. Stocks in trade are valued at lower of cost and net realisable value. The cost comprises of cost of purchase, cost of conversion and other costs including appropriate production overheads incurred in bringing such inventories to their present condition and location.
1.7 Revenue Recognition
i. Sales
Revenue from sale of tea at auction is recognised on receipt of sale note from brokers. Revenue from sale of tea other than at auction and from sale of rubber is recognised on despatch or appropriation of goods in accordance with the terms of sale.
Revenue from sale of trees is recognised at the point of felling and removing the trees from the estates.
ii. Services
Revenue from fixed price construction contracts is recognised on the percentage of completion method measured by the proportion that costs incurred up to the reporting date bear to the estimated total cost of the contract.
1.8 Employee Benefits
i. Short Term
Short term employee benefits are recognised as an expense as per the Company's scheme based on expected obligations.
II. Post Retirement
Post-retirement benefits comprise of provident fund, superannuation and gratuity which are accounted for as follows:
a) Provident fund
This is a defined contribution plan. Contributions in respect of staff and workers remitted to provident fund authorities in accordance with the relevant statute are charged to profit and loss account as and when due. The Company has no further obligations for future provident fund benefits in respect of these employees other than its monthly contributions. Contributions with respect to management staff are made to a trust administered by the Company and are charged to the profit and loss account as and when due. The interest rate payable to the members of the trust shall not be lower than the rates notified by the government. In the event the income earned by the trust falls short of the interest payable based on the rates notified by the government the Company shall make good the shortfall.
b) Superannuation
This is a defined contribution plan. The Company makes contribution as per the scheme to superannuation fund administered by Life Insurance Corporation of India. The Company has no further obligation of future superannuation benefits other than its annual contributions and recognises such contributions as expense as and when due.
c) Gratuity
This is a defined benefit plan. Provision for gratuity is made based on actuarial valuation using projected unit credit method. Actuarial gains and losses comprising of experience adjustments and the effects of changes in actuarial assumptions are recognised immediately in the profit and loss account as income or expense.
Hi. Long term
Long term employee benefits represent compensated absence which is provided for based on actuarial valuation using projected unit credit method.
1.9 Replanting Expenses
Replanting expenses are charged to revenue as and when incurred.
1.10 Foreign Currency Transactions
Foreign currency transactions are accounted at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are restated at the contracted/year end exchange rates. The exchange differences arising on payments/ realisations and from the year end restatement referred to above are recognised as income or expense in the profit and loss account. In respect of forward contracts the difference between forward rate and exchange rate at the inception of the foreign exchange contract is recognised as income or expense over the period of the contract.
1.11 Taxation
Provision for current tax is made based on the liabilities computed in accordance with the relevant tax rates and tax laws. Provision for deferred tax is made for the timing differences arising between the taxable income and accounting income computed at the rates enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognised only if there is a reasonable/virtual certainty that they will be realised in the foreseeable future and are reviewed for appropriateness of their respective carrying values at each Balance Sheet date.
Mar 31, 2010
1.1 Basis of Preparation of Financial Statements
The financial statement ara prepared under historical cost convention except in so far they relate to revaluation of fixed assets (referred to in Note 1.3) in accordance with the generally accepted accounting principles m India and comply in all material aspects with time accounting standards notified by the Companies (Accounting Standards) Rules, 2006 and with the relevant provisions of the Companies Act, 19S6.
1.2 Use of estimates
The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the Balance Sheet date, reported amount of revenues and expenses for the year and disclosure of contingent liabilities as of the Balance Sheet date. The estimates and assumptions used in the accompanying financial statements are based upon managements evaluation of the relevant fads and circumstances as of the date of the financial statements. Actual results could differ from these estimates.
13 Fixed Assets
Fixed Assets are stated at cost less depreciation except in the case of Land and Development market value as on June 30,1990 and April 1, 2009 based on revaluation carried out by independent valuers and additions / deletions thereto since then, at cost. Expenses relating to new planting are capitalised.
1.4 Depreciation
Fixed assets other than land and development are depredated under the written down value method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. No depredation is charged on the land and development. Assets costing individually Rs.5000 and below are fully depreciated in the year of addition.
1.5 impairment of assets
Consideration is given at each balance sheet date to determine whether there is any modification or impairment of the carrying amount of the fixed assets. If any condition exists, an assets recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of any asset exceeds recoverable amount.
1.6 Investments
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature..
1.7 Inventories
Stores and spare parts are valued at cost ascertained generally on specific Identification method. Nursery stocks are valued at cost incurred in raising and lower of cost and net realisable value. The cost comprises of cost of purchase, cost of conversion and other costs including appropriate production overheads incurred in bringing such inventories to their present condition and
location.
1.8 Revenue Recognition
i. Sales
Revenue from sale of tea at auction is recognised on receipt of sale note from brokers. Revenue from sale of tea other than at auction and from sale of rubber is recognised on despatch of goods to customers.
Revenue from sale of trees is recognised at the point of felling and removing the trees from the estates.
ii. Services
Revenue from fixed price construction contracts is recognised on the percentage of completion method measured by the proportion that costs incurred up to the reporting date bear to the estimated total cost of the contract
1.9 Employee Benefits
L Short Term.
Short term employee benefits are recognised as an expense as per the Companys scheme based on expected obligations.
ii. Post Retirement
Post retirement benefits comprise of provident fund, superannuation and gratuity which are accounted for as follows:
a) Provident fund
This is a defined contribution plan. Contributions in respect of staff and workers remitted to provident fund authorities in accordance with the relevant statute are charged to profit and loss account as and when due. The Company has no further obligations for future pnrovident employees other than its monthly/ contributions. Contributions with respect to management staff are made to a trust administered by the Company and are charged to profit and loss account as and when due. The interest rate payable to the members of the trust shall not be lower than the rates notified by the government, in the event the income earned by the trust falls short of the interest the rates notified by the government the Company shaft make good the shortfall.
b) Superannuation
This is a defined contribution plan. The Company makes contribution as per the scheme to superannuation fund administered by Life Insurance Corporation of I ndia. The Company has no further obligation of future superannuation, benefits other than its annual contributions and recognises such contributions as expense as and when due.
c) Gratuity
This is a defined benefit plan. Provision for gratuity is made based on actuarial1 valuation: using projected unit credit method. Actuarial gains and tosses comprising of experience adjustments and the effects of changes in actuarial assumptions are recognised immediately in the profit and 0loss account as income or expense.
iii. Long term
Long term employee benefits represent compensated absence which is provided for based on actuarial valuation using projected unit credit method.
1.10 Replanting Expenses
Replanting expenses are charged to revenue as and when incurred.
1.11 Foreign Currency Transactions
Foreign currency transactions are accounted at the exchange rate prevailing on the date of transaction Monetary assets and liabilities denominated in foreign currencies are restated at the contracted / year end exchange rates. The exchange differences arising on payments/ realisations and from the year end restatement referred to above are recognised as income or expense in the profit and loss account, in respect of forward contracts the difference between forward rate and exchange rate at the inception of the foreign exchange contract is recognised as income or expense over the period of the contract
1.12 Taxation
Provision for current tax is made based on the labilities computed in accordance with the relevant tax rates and tax laws. Provision for deferred tax is made for the timing differences arising between the taxable income and accounting income computed at the rates enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognised only if there is a reasonable / virtual certainty that they will be realised in the foreseeable future and are reviewed for appropriateness of their respective carrying values at each Balance Sheet date.
2. Scheme of arrangement
2.1 Pursuant to a scheme of arrangement (the Scheme) approved by the Honble High Court of Judicature at Kerala vide its order dated July 28, 2010 Harrisons Malayalam Financial Services Limited (HMFSL), Harrisons Rubber Products Limited (HRPL), and Harrisons Agro-Products Limited (HAPL), all wholly owned subsidiaries of the Company were amalgamated with the Company effective April 1, 2009 under the "Purchase Method" as prescribed in the Accounting Standard (AS-14) "Accounting for Amalgamations"
2.2 Prior to amalgamation HMFSL was carrying on investment activities holding investments primarily in the group companies. HRPL and HAPL which were formed with the objective of engaging in the business of agro products and timber products respectively did not carry out any business prior to amalgamation.
2.3 As per the Scheme the entire business and the whole of the undertaking of HMFSL, HRPL and HAPL including all the debts, liabilities, duties and obligations and also including without limitation, all properties and assets of whatsoever nature and wherever situated after adjusting inter-company deposits, loans and advances outstanding and investments in the capital of HMFSL, HRPL and HAPL as appearing in the books of the Company, would, without any further act or deed, stand transferred to and vested in the Company on April 1,2009 at their respective book values, except for the investments made by HMFSL which were transferred at their respective fair values as determined by the board of directors of the Company.
2.4 Further, pursuant to the Scheme, the Investment Undertaking of the Company (all assets and liabilities of the Company pertaining to the investment business including investments appearing in the books of account of the Company) was demerged on April 2, 2009 and without any further act or deed, was transferred to and vested in Sentinel Tea & Exports Limited on that date.
Mar 31, 2009
1.1 Basis of Preparation of Financial Statements
The financial statements are prepared under historical cost convention except in so far they relate to revaluation of fixed assets (referred to Note 1.3) in accordance with the generally accepted accounting principles in India and comply in all material aspects with the accounting standards notified by the Companies (Accounting Standards) Rules, 2006 and with the relevant provisions of the Companies Act, 1956.
1.2 Use of estimates
The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the Balance Sheet date, reported amount of revenues and expenses for the year and disclosure of contingent liabilities as of the Balance Sheet date. The estimates and assumptions used in the accompanying financial statements are based upon managements evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results could differ from these estimates.
1.3 Fixed Assets
Fixed Assets are stated at cost less depreciation except in the case of Land and Development which is stated at the market value as on June 30, 1990 based on revaluation carried out by an independent valuer and additions thereto since then, at cost. Expenses relating to new planting are capitalised.
1.4 Depreciation
Fixed assets are depreciated under the written down value method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Development expenditure and value of lease hold land are not amortised. Assets costing individually Rs.5000 and below are fully depreciated in the year of addition.
1.5 Impairment of assets
Consideration is given at each balance sheet date to determine whether there is any modification or impairment of the carrying amount of the fixed assets. If any condition exists, an assets recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of any asset exceeds recoverable amount.
1.6 Investments
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Cost includes brokerage, stamp duty and other financial charges directly attributable to their acquisition.
1.7 Inventories
Stores and spare parts are valued at cost ascertained generally on specific identification method. Nursery stocks are valued at cost incurred in raising and maintaining such stocks till transplantation. Stocks in trade are valued at lower of cost and net realisable value. The cost comprises of cost of purchase, cost of conversion and other costs including appropriate production overheads incurred in bringing such inventories to their present condition and location.
1.8 Revenue Recognition
i. Sales
Revenue from sale of tea at auction is recognised on receipt of sale note from brokers. Revenue from sale of tea other than at auction and from sale of rubber is recognised on despatch of goods to customers. Revenue from sale of trees is recognised at the point of felling and removing the trees from the estates.
ii. Services
Revenue from fixed price construction contracts is recognised on the percentage of completion method measured by the proportion that costs incurred up to the reporting date bear to the estimated total cost of the contract.
iii. Dividends
Dividend income is accounted when the right to receive such dividend is established.
1.9 Employee Benefits
i. Short Term
Short term employee benefits are recognised as an expense as per the Companys scheme based on expected obligations.
ii. Post Retirement
Post retirement benefits comprise of provident fund, superannuation and gratuity which are accounted for as follows:
a) Provident fund
This is a defined contribution plan. Contributions in respect of staff and workers are remitted to provident fund authorities in accordance with the relevant statute and are charged to profit and loss account as and when due. The Company has no further obligations for future provident fund benefits in respect of these employees other than its annual contributions. Contributions with respect to management staff are made to a trust administered by the Company and are charged to the profit-and loss account as and when due. The interest rate payable to the members of the trust shall not be lower than the rates notified by the government. In the event the income earned by the trust falls short of the interest payable based on the rates notified by the government the Company shall make good the shortfall.
b) Superannuation
This is a defined contribution plan. The Company makes contribution as per the scheme to superannuation fund administered by Life Insurance Corporation of India. The Company has no further obligation of future superannuation benefits other than its annual contributions and recognises such contributions as expense as and when due.
c) Gratuity
This is a defined benefit plan. Provision for gratuity is made based on actuarial valuation using projected unit credit method. Actuarial gains and losses comprising of experience adjustments and the effects of changes in actuarial assumptions are recognised immediately in the profit and loss account as income or expense.
iii. Long term
Long term employee benefits represent compensated absence which is provided for based on actuarial valuation using projected unit credit method.
1.10 Replanting Expenses
Replanting expenses are charged to revenue as and when incurred.
1.11 Foreign Currency Transactions
Foreign currency transactions are accounted at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are restated at the contracted / year end exchange rates. The exchange differences arising on payments/ realisations and from the year end restatement referred to above are recognised as income or expense in the profit and loss account. In respect of forward contracts the difference between forward rate and exchange rate at the inception of the foreign exchange contract is recognised as income or expense over the period of the contract.
1.12 Taxation
Provision for current tax and fringe benefits tax is made based on the liabilities computed in accordance with the relevant tax rates and tax laws. Provision for deferred tax is made for the timing differences arising between the taxable income and accounting income computed at the rates enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognised only if there is a virtual certainty that they will be realised in the foreseeable future and are reviewed for appropriateness of their respective carrying values at each Balance Sheet date.
Mar 31, 2008
1.1 Basis of Preparation of Financial Statements
The financial statements are prepared in accordance with the generally accepted accounting principles in India.
1.2 Use of estimates
The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the Balance Sheet date, reported amount of revenues and expenses for the year and disclosure of contingent liabilities as of the Balance Sheet date. The estimates and assumptions used in the accompanying financial statements are based upon managements evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results could differ from these estimates.
1.3 Fixed Assets
Fixed Assets are stated at cost less depreciation except in the case of Land and Development which is stated at the market value as on June 30,1990 based on revaluation carried out by an independent valuer and additions thereto since then, at cost. Expenses relating to new planting are capitalised.
1.4 Depreciation
Fixed assets other than those relating to Aquaculture Division are depreciated under the written down value method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Assets relating to Aquaculture Division are depreciated under straight line method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Development expenditure and value of lease hold land are not amortised. Assets costing individually Rs.5000 and below are fully depreciated in the year of addition.
1.5 Impairment of assets
Consideration is given at each balance sheet date to determine whether there is any modification or impairment of the carrying amount of the fixed assets. If any condition exists, an assets recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of any asset exceeds recoverable amount.
1.6 Investments
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Cost includes brokerage, stamp duty and other financial charges directly attributable to their acquisition.
1.7 Inventories
Stores and spare parts are valued at cost ascertained generally on specific identification method. Nursery stocks are valued at cost incurred in raising and maintaining such stocks till transplantation. Stocks in trade are valued at lower of cost and net realisable value. The cost comprises of cost of purchase, cost of conversion and other costs including appropriate production overheads incurred in bringing such inventories to their present condition and location.
1.8 Revenue Recognition
i. Sales
Revenue from sale of tea at auction is recognised on receipt of sale note from brokers. Revenue from sale of tea other than at auction and from sale of rubber is recognised on despatch of goods to customers. Revenue from sale of trees is recognised at the point of felling and removing the trees from the estates.
ii. Services
Revenue from fixed price construction contracts is recognised on the percentage of completion method measured by the proportion that costs incurred up to the reporting date bear to the estimated total cost of the contract. iii. Dividends
Dividend income is accounted when the right to receive such dividend is established.
1.9 Employee Benefits i. Short Term
Short term employee benefits are recognised as an expense as per the Companys scheme based on expected obligations.
ii. Post Retirement
Post retirement benefits comprise of provident fund, superannuation and gratuity which are accounted for as follows:
a) Provident fund
This is a defined contribution plan. Contributions in respect of staff and workers are remitted to provident fund authorities in accordance with the relevant statute and are charged to profit and loss account as and when due. The Company has no further obligations for future provident fund benefits in respect of these employees other than its annual contributions. Contributions with respect to management staff are made to a trust administered by the Company and are charged to the profit and loss account as and when due. The interest rate payable to the members of the trust shall not be lower than the rates notified by the government. In the event the income earned by the trust falls short of the interest payable based on the rates notified by the government the Company shall make good the shortfall.
b) Superannuation
This is a defined contribution plan. The Company makes contribution as per the scheme to superannuation fund administered by Life Insurance Corporation of India.The Company has no further obligation of future superannuation benefits other than its annual contributions and recognises such contributions as expense as and when due.
c) Gratuity
This is a defined benefit plan. Provision for gratuity is made based on actuarial valuation using projected unit credit method. Actuarial gains and losses, comprising of experience adjustments and the effects of changes in actuarial assumptions, are recognised immediately in the profit and loss account as income or expense.
iii. Long term
Long term employee benefits represent compensated absence which is provided for based on actuarial valuation using projected unit credit method.
1.10 Replanting Expenses
Replanting expenses are charged to revenue as and when incurred.
1.11 Foreign Currency Transactions
Foreign currency transactions are accounted at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are restated at the contracted / year end exchange rates. The exchange differences arising on payments/ realisations and from the year end restatement referred to above are recognised as income or expense in the profit and loss account. In respect of forward contracts the difference between forward rate and exchange rate at the inception of the foreign exchange contract is recognised as income or expense over the period of the contract. 1.12Taxation
Provision for current tax and fringe benefits tax is made based on the liabilities computed in accordance with the relevant tax laws. Provision for deferred tax is made for the timing differences arising between the taxable income and accounting income computed at the rates enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognised only if there is a virtual certainty that they will be realised in the foreseeable future and are reviewed for appropriateness of their respective carrying values at each Balance Sheet date.
Mar 31, 2007
1. SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Accounting
The financial statements have been prepared in all material aspects with reference to the generally accepted accounting principles followed in India.
(b) Use of estimates
The preparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the year. Difference between the actuals and estimates are recognised in the year in which they are crystallised.
(c) Fixed Assets
Fixed Assets are stated at cost less depreciation except in the case of Land & Development which has been stated at the market value as on June 30,1990 on revaluation by an independent valuer and additions thereto since then, at cost. Expenses relating to new planting are capitalised.
(d) Investments
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Cost includes brokerage, stamp duty and other financial charges directly attributable to their acquisition.
(e) Inventories
Inventories are stated at lower of cost and net realisable value. The cost comprises of cost of purchase, cost of conversion and other costs including appropriate production overheads incurred in bringing such inventories to their present condition and location. In the case of stores and spares, individual cost is identified and valued as against the earlier practice of valuing them at weighted average basis. This change of method in valuation does not affect the results of the year materially. In case of packing materials of Consumable Marketing Division, cost is determined on FIFO basis.
(f) Retirement Benefits
Provision for gratuity has been made based on the actuarial valuation. Fixed contributions to Provident Fund, Employees Pension Fund, Superannuation Fund and cost of other benefits are recognised in the Accounts at actual cost to the Company. Provision for leave encashment is made as per the Companys Policy based on the actuarial valuation.
(g) Sales and Service Income
I. Sales
Sales comprise of sale of goods and services stated at net of sales returns. Sale of standing trees is credited to Profit and Loss account on the basis of respective agreements.
II. Service
Revenue from fixed price construction contracts is recognised on the percentage of completion method measured by the proportion that costs incurred up to the reporting date bear to the estimated total cost of the contract.
(h) Dividends
Dividends from Companies are accounted as income when the right to receive the payment is established,
(i) Depreciation
Fixed assets other than those relating to Aquaculture Division are depreciated under the written down value method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Assets relating to Aquaculture Division are depreciated under straight line method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Development expenditure and value of leasehold land are not amortised. All assets individually costing Rs.5000 and below are fully depreciated in the year of addition.
(j) Impairment of assets
Consideration is given at each Balance Sheet date to determine whether there is any modification or impairment of the carrying amount of the fixed assets. If any condition exists, an assets recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of any asset exceeds recoverable amount.
(k) Replanting Expenses
Replanting expenses are charged to revenue.
(I) Foreign Currency Transactions
Transactions in foreign exchange are accounted at the exchange rate prevailing on the date of transaction. Monetary items denominated in foreign currencies are converted at the exchange rate as on the Balance Sheet date. The exchange differences arising on such conversion except those relating to acquisition of fixed assets are recognised as income or expense in the Profit & Loss Account. In respect of those covered under forward contracts, the difference between the forward rate and exchange rate at the inception of the forward exchange contract is recognised as income or expense over the period of the contract.
(m) Taxation
Provision for Current Tax and Fringe Benefit Tax is being made based on the liabilities computed in accordance with the relevant tax laws. Provision for deferred tax is being made for the timing differences arising between the taxable income and accounting income computed at the rates of tax enacted or substantively enacted as on Balance Sheet date. Deferred tax assets are recognised only if there is a virtual certainty that they will be realised and are reviewed for appropriateness of their respective carrying values at each Balance sheet date.
(n) Segment Reporting
(i) The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with the following additional policy:
Revenue and Expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under "Unallocated Corporate Expenses."
(ii) There are no inter-segment revenues and therefore their basis of measurement does not arise.
Mar 31, 2006
(a) Basis of Accounting
The financial statements have been prepared in all material aspects with reference to the generally accepted accounting principles followed in India.
(b) Use of estimates
The preparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the year. Difference between the actuals and estimates are recognised in the year in which they are crystallised.
(c) Fixed Assets
Fixed Assets are stated at cost less depreciation except in the case of Land & Development which has been stated at the market value as on June 30, 1990 on revaluation by an independent valuer and additions thereto since then, at cost. Expenses relating to new planting are capitalised. Fixed Assets taken on finance lease are capitalised and depreciation has been provided on such assets.
(d) Investments
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Cost includes brokerage, stamp duty and other financial charges directly attributable to their acquisition.
(e) Inventories
Inventories are stated at lower of cost and net realisable value. The cost comprises of cost of purchase, cost of conversion and other costs including appropriate production overheads incurred in bringing such inventories to their present condition and location. In the case of stores and spares, the cost is determined on weighted average basis except in the case of packing materials of Consumer Marketing Division which are determined on FIFO basis.
(f) Retirement Benefits
Provision for gratuity has been made based on the actuarial valuation. Fixed contributions to Provident Fund, Employees Pension Fund, Superannuation Fund and cost of other benefits are recognised in the Accounts at actual cost to the Company. Provision for leave encashment is made as per the Companys Policy based on the assumption that such benefits accrue to all employees at the end of the accounting year.
(g) Sales and Service Income
I Sales
Sales comprise of sale of goods and services stated at net of sales returns. Sale of standing trees is credited to Profit and Loss account on the basis of respective agreements. Insurance claims are accounted for to the extent admitted/settled by the insurance companies.
II Service
Revenue from fixed price construction contracts is recognised on the percentage of completion method measured by the proportion that costs incurred upto the reporting date bear to the estimated total cost of the contract.
(h) Dividends
Dividends from Companies are accounted as income when the right to receive the payment is established.
(i) Depreciation
Fixed assets other than those relating to Aquaculture Division are depreciated under the written down value method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Assets relating to Aquaculture Division are depreciated under straight line method in the manner and at the rates specified in
Schedule XIV of the Companies Act, 1956. Development expenditure and value of leasehold land are not amortised.
(j) Impairment of assets
Consideration is given at each Balance Sheet date to determine whether there is any modification or impairment of the carrying amount of the fixed assets. If any condition exists, an assets recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of any asset exceeds recoverable amount.
(k) Replanting Expenses
Replanting expenses are charged to revenue.
(l) Foreign Currency Transactions
Transactions in foreign exchange are accounted at the exchange rate prevailing on the date of transaction. Monetary items denominated in foreign currencies are converted at the exchange rate as on the Balance Sheet date. The exchange differences arising on such conversion except those relating to acquisition of fixed assets are recognised as income or expense in the Profit & Loss Account. In respect of those covered under forward contracts, the difference between the forward rate and exchange rate at the inception of the forward exchange contract is recognised as income or expense over the period of the contract.
(m) Taxation
Current Tax and Fringe Benefit Tax are determined in accordance with Income Tax Act 1961/Agricultural Income Tax Acts on the income chargeable to tax for the year. Deferred Tax is recognised on all timing differences subject to the consideration of prudence.
(n) Segment Reporting
(i) The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with the following additional policy:
Revenue and Expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under "Unallocated Corporate Expenses."
(ii) There are no intersegment revenues and therefore their basis of measurement does not arise.
Mar 31, 2005
A. Basis of Accounting
The accounts are prepared on historical cost convention with the exception of Land (which was revalued) based on accrual method of accounting and applicable Accounting Standards.
B. Balance Sheet
FIXED ASSETS:
Fixed Assets are stated at cost less depreciation except in the case of Land & Development which has been stated at the market value as on 30th June, 1990 on revaluation by an independent valuer and additions thereto since then at cost. Expenses relating to new planting are capitalised. Fixed Assets taken on finance lease are capitalised and depreciation has been provided on such assets, while the annual charges have been charged to revenue.
INVESTMENTS:
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Cost includes brokerage, stamp duty and other financial charges directly attributable to their acquisition.
INVENTORIES:
Inventories are stated at lower of cost and net realisable value. The cost comprises of cost of purchase, cost of conversion and other costs including appropriate production overheads incurred in bringing such inventories to their present condition and location. In the case of stores and spares, the cost is determined on weighted average basis except in the case of packing materials of Consumer Marketing Division which are determined on FIFO basis.
RETIREMENT BENEFITS:
Liability towards gratuity to employees is determined on the basis of Actuarial Valuation as at the year end and the incremental liability for the year is provided for. Fixed contributions to Provident Fund, Employees Pension Fund, Superannuation Fund and cost of other benefits are recognised in the Accounts at actual cost to the Company.
C. Profit and Loss Account
SALES:
Sales comprise of sale of goods and services stated at net of sales returns and inclusive of inter divisional transfers. Sale of standing trees is credited to Profit and Loss account on the basis of respective agreements. Insurance claims are accounted for to the extent admitted/settled by the insurance companies. Revenue from fixed price construction contracts is recognised on the percentage of completion method measured by the proportion that costs incurred upto the reporting date bear to the estimated total cost of the contract.
DIVIDENDS:
Dividends from Companies are accounted as income when the right to receive the payment is established.
DEPRECIATION:
Fixed assets other than those relating to Aquaculture Division are depreciated under the written down value method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Assets relating to Aquaculture Division are depreciated under straight line method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Development expenditure and value of lease hold land are not amortised.
REPLANTING EXPENSES:
Replanting expenses are charged to revenue.
FOREIGN CURRENCY TRANSACTIONS:
Transactions in foreign exchange are accounted at the exchange rate prevailing on the date of transaction. Monetary items denominated in foreign currencies are converted at the exchange rate as on the Balance Sheet date. The exchange differences arising on such conversion except those relating to acquisition of fixed assets are recognised as income or expense in the Profit & Loss Account. In respect of those covered under forward contracts, the difference between the forward rate and exchange rate at the inception of the forward exchange contract is recognised as income or expense over the period of the contract.
ACCOUNTING FOR TAXES ON INCOME:
Current Tax is determined in accordance with Income Tax Act 1961/ Agricultural Income Tax Acts on the income chargeable to tax for the year. Deferred Tax is recognised on all timing differences subject to the consideration of prudence.
SEGMENT REPORTING:
(i) The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with the following additional policy :
Revenue and Expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under "Unallocated Corporate Expenses."
(ii) There are no intersegment revenues and therefore their basis of measurement does not arise.
Mar 31, 2004
1. SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Accounting
The accounts are prepared on historical cost convention with the exception of Land (which was revalued) based on accrual method of accounting and applicable Accounting Standards.
B. Balance Sheet
FIXED ASSETS:
Fixed Assets are stated at cost less depreciation except in the case of Land & Development which has been stated at the market value as on 30th June, 1990 on revaluation by an independent valuer and additions thereto since then, at cost. Expenses relating to new planting are capitalised.
BORROWING COSTS:
Borrowing Costs are capitalised as part of qualifying asset when it is possible that they win result in future economic benefits. Other borrowing costs are expensed.
INVESTMENTS:
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Cost includes brokerage, stamp duty and other financial charges directly attributable to their acquisition.
INVENTORIES:
Inventories are stated at lower of cost and net realisable value. The cost comprises of cost of purchase, cost of conversion and other costs including appropriate production overheads incurred in bringing such inventories to their present condition and location. In the case of stores and spares, the cost is determined on weighted average basis except in the case of packing materials of Consumer Marketing Division and stores, spares and consumables of Aquaculture Division which are determined on FIFO basis.
RETIREMENT BENEFITS:
Liability towards gratuity to employees is determined on the basis of Actuarial Valuation as on the year end date and the incremental liability for the year is provided for. Fixed contributions to Provident Fund, Employees Pension Fund, Superannuation Fund and cost of other benefits are recognised in the Accounts at actual cost to the Company.
C. Profit and Loss Account
SALES:
Sales comprise of sale of goods and services stated at net of sales returns and inclusive of inter divisional transfers and Excise Duty wherever applicable. Sale of standing trees is credited to Profit and Loss account on the basis of respective agreements. Insurance claims are accounted for to the extent admitted/settled by the insurance companies. Revenue from fixed price construction contracts is recognised on the percentage of completion method measured by the proportion that costs incurred upto the reporting date bear to the estimated total cost of the contract.
DIVIDENDS:
Dividends from Companies are accounted as income when the right to receive the payment is established.
DEPRECIATION:
Fixed assets other than those relating to Aquaculture Division are depreciated under the written down value method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Assets relating to Aquaculture Division are depreciated under straight line method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Development expenditure and value of lease hold land are not amortised.
REPLANTING EXPENSES:
Replanting expenses are charged to revenue.
FOREIGN CURRENCY TRANSACTIONS:
Transactions in foreign exchange are accounted at the exchange rate prevailing on the date of transaction. Monetary items denominated in foreign currencies are converted at the exchange rate as on the Balance Sheet date. The exchange differences arising on such conversion except those relating to acquisition of fixed assets are recognised as income or expense in the Profit and Loss Account. In respect of those covered under forward contracts, the difference between the forward rate and exchange rate at the inception of the forward exchange contract is recognised as income or expense over the period of the contract.
DEFERRED REVENUE EXPENDITURE:
Non-recurring revenue expenditure yielding benefit beyond the accounting year is amortised over a period during which the benefit is expected therefrom.
ACCOUNTING FOR TAXES ON INCOME:
Current Tax is determined in accordance with Income Tax Act, 1961/Agricultural Income Tax Acts on the income chargeable to tax for the year. Deferred Tax is recognised on all timing differences subject to the consideration of prudence.
SEGMENT REPORTING:
(i) The accounting policies adopted for segment reporting are in line with the accounting policy of the company with the following additional policy. Revenue and Expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under "Unallocated Corporate Expenses."
(ii) There are no inter-segment revenues and therefore their basis of measurement does not arise.
Mar 31, 2003
A. Basis of Accounting
The accounts are prepared on historical cost convention with the exception of Land (which was revalued) based on accrual method of accounting and applicable Accounting Standards. B. Balance Sheet FIXED ASSETS:
Fixed Assets are stated at cost less depreciation except in the case of Land & Development which has been stated at the market value as on 30th June, 1990 on revaluation by an independent valuer and additions thereto since then, at cost. Expenses relating to new planting are capitalised.
BORROWING COSTS:
Borrowing Costs are capitalised as part of qualifying asset when it is possible that they will result in future economic benefits. Other borrowing costs are expensed.
INVESTMENTS:
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value determined on the basis of each category of investment. Cost includes brokerage, stamp duty and other financial charges directly attributable to their acquisition.
INVENTORIES:
Inventories are stated at lower of cost and net realisable value. The cost comprises of cost of purchase, cost of conversion and other costs including appropriate production overheads incurred in bringing such inventories to their present condition and location. In the case of stores and spares, the cost is determined on weighted average basis except in the case of packing materials of Consumer Marketing Division and stores, spares and consumables ofAquaculture Division which are determined on FIFO basis.
RETIREMENT BENEFITS:
Liability towards gratuity to employees is funded under LIC Group Gratuity Scheme. The amount payable to LIC under the scheme is charged to Profit and Loss Account. The Balance in the Fund together with provisions made in the Accounts covers this liability as on the Balance Sheet date determined on Actuarial Valuation. Fixed contributions to Provident Fund, Employees' Pension Fund, Superannuation Fund and cost of other benefits are recognised in the accounts at actual cost to the Company.
C. Profit and Loss Account SALES:
Sales comprise of sale of goods and services stated at net of sates returns and inclusive of inter-divisional transfers and Excise Duty wherever applicable. Sale of standing trees is credited to Profit and Loss Account on, the basis of respective agreements. Insurance claims are accounted for to the extent admitted / settled by the insurance companies.
DIVIDENDS:
Dividends from companies are accounted as income when the right to receive the payment is established.
DEPRECIATION:
Fixed assets other than those relating to Aquaculture Division are depreciated under the written down value method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Assets relating to Aquaculture Division are depreciated under straight line method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Development expenditure and value of lease hold land are not amortised.
REPLANTING EXPENSES:
Replanting expenses are charged to revenue.
FOREIGN CURRENCY TRANSACTIONS:
Transactions in foreign exchange are accounted at the exchange rate prevailing on the date of transaction. Monetary items denominated in foreign currencies are converted at the exchange rate as on the Balance Sheet date. The exchange differences arising on such conversion except those relating to acquisition of fixed assets are recognised as income or expense in the Profit & Loss Account. In respect, of those covered under forward contracts, the difference between the forward rate and exchange rate at the inception of the forward exchange contract is recognised as income or expense over the period of the contract.
DEFERRED REVENUE EXPENDITURE:
Non-recurring revenue expenditure yielding benefit beyond the accounting year is amortised over a period during which the benefit is expected therefrom.
ACCOUNTING FOR TAXES ON INCOME:
Current Tax is determined in accordance with the Income Tax Act, 1961/ Agricultural Income Tax Acts on the income chargeable to tax for the year. Deferred Tax is recognised on all timing differences subject to the consideration of prudence.
SEGMENT REPORTING:
(i) The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with the following additional policy Revenue and Expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under "Unallocated Corporate Expenses". (ii) There are no inter-segment revenues and therefore their basis of measurement does not arise.
Mar 31, 2002
A. Basis of Accounting
The accounts are prepared on historical cost convention with the exception of Land (which was revalued) based on accrual method of accounting and applicable Accounting Standards.
B. Balance Sheet
FIXED ASSETS:
Fixed Assets are stated at cost less depreciation except in the case of Land & Development which has been stated at the market value as on 30th June, 1990 on revaluation by an independent valuer and additions thereto since then, at cost. Expenses relating to new planting are capitalised.
BORROWING COSTS:
Borrowing Costs are capitalised as part of qualifying asset when it is possible that they will result in future economic benefits. Other borrowing costs are expensed
INVESTMENTS:
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value determined on the basis of each category of investment. Cost includes brokerage, stamp duty and other financial charges directly attributable to their acquisition.
INVENTORIES:
Inventories are stated at lower of cost and net realisable value. The cost comprises of cost of purchase, cost of conversion and other cost including appropriate production overheads incurred in bringing such inventories to their present condition and location. In the case of stores and spares, the cost is determined on weighted average basis except in the case of packing materials of Consumer Marketing Division and stores, spares and consumables of Aquaculture Division which are determined on FIFO basis.
RETIREMENT BENEFITS:
Liability towards gratuity to employees is determined on the basis of Actuarial Valuation as on the year end date/intimation from Life Insurance Corporation of India and contribution paid/payable is charged in the accounts. Fixed contributions to Provident Fund, Employees Pension Fund, Superannuation Fund and cost of other benefits are recognised in the Accounts at actual cost to the Company.
C. Profit and Loss Account
SALES:
Sales comprise sale of goods and services, net of sales returns and include Excise Duty and inter divisional transfers wherever applicable. Sales returns are accounted in the year of return. Sale of standing trees is credited to Profit and Loss account on the basis of respective agreements. Insurance claims are accounted for to the extent admitted/settled by the insurance companies.
DIVIDENDS:
Dividends from Companies are accounted as income when the right to receive the payment is established.
DEPRECIATION:
Fixed assets other than those relating to Aquaculture Division are depreciated under the written down value method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Assets relating to Aquaculture Division are depreciated under straight line method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Development expenditure and value of lease hold land are not amortised.
REPLANTING EXPENSES:
Replanting expenses are charged to revenue.
FOREIGN CURRENCY TRANSACTIONS:
Transactions in foreign exchange are accounted at the exchange rate prevailing on the date of transaction. Monetary items denominated in foreign currencies are converted at the exchange rate as on the Balance Sheet date. The exchange differences arising on such conversion except those relating to acquisition of fixed assets are recognised as income or expense in the Profit & Loss Account. In respect of those covered under forward contracts, the difference between the forward rate and exchange rate at the inception of the forward exchange contract is recognised as income or expense over the period of the contract.
DEFERRED REVENUE EXPENDITURE:
Non-recurring revenue expenditure yielding benefit beyond the accounting year is amortised over a period during which the benefit is expected therefrom.
ACCOUNTING FOR TAXES ON INCOME:
Current Tax is determined in accordance with Income Tax Act 1961/ Agricultural Income Tax Acts on the amount of tax payable in respect of Income for the year. Deferred Tax is recognised on all timing differences subject to the consideration of prudence.
SEGMENT REPORTING:
(i) The accounting policies adopted for segment reporting are in line with the accounting policy of the company with the following additional policy. Revenue and Expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under "Unallocated Corporate Expenses."
(ii) There are no inter-segment revenues and therefore their basis of measurement does not arise.
Mar 31, 2001
1. SIGNIFICANT ACCOUNTING POLICIES A. Basis of Accounting
The accounts are prepared on historical cost convention with the exception of Land (which was revalued) based on accrual method of accounting and applicable Accounting Standards.
B. Balance Sheet
FIXED ASSETS :
Fixed Assets are stated at cost less depreciation except in the case of Land & Development which has been stated at the market value as on 30th June, 1990 on revaluation by an independent valuer and additions thereto since then, at cost. Expenses relating to new planting are capitalised.
Leasehold land of Aquaculture Division represents the amount of interest free deposits paid to the licensors of the land towards the use of land under the leave and license agreements.
INVESTMENTS :
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value determined on the basis of each category of investment. Cost includes brokerage, stamp duty and other financial charges directly attributable to their acquisition.
INVENTORIES :
Inventories are stated at lower of cost and net realisable value. The cost comprises of cost of purchase, cost of conversion and other cost including appropriate production overheads incurred in bringing such inventories to their present condition and location. In the case of stores and spares , the cost is determined on weighted average basis except in the case of packing materials of Consumer Marketing Division and stores, spares and consumables of Aquaculture Division which are determined on FIFO basis.
RETIREMENT BENEFITS :
Liability towards gratuity of employees is provided on the basis of periodical Actuarial Valuation/intimation from Life Insurance Corporation of India and contribution paid/payable is charged in the accounts. Fixed contributions to Provident Fund, Employees Pension Fund, Superannuation Fund and cost of other benefits are recognised in the Accounts at actual cost to the Company.
C. Profit and Loss Account
SALES :
Sales comprise sale of goods and services, net of sales returns and include Excise Duty and inter divisional transfers wherever applicable. Sales returns are accounted in the year of return. Sale of standing trees is credited to Profit and Loss account on the basis of respective agreements. Insurance claims are accounted for to the extent admitted / settled by the insurance companies.
DIVIDENDS :
Dividends from Companies are accounted as income when the right to receive the payment is established.
DEPRECIATION :
Fixed assets other than those taken over from the Amalgamating Company referred to in Note 2 below are depreciated under the written down value method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Assets taken over from the Amalgamating Company are depreciated under straight line method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Development expenditure and value of lease hold land are not amortised.
REPLANTING EXPENSES :
Replanting expenses are charged to revenue.
FOREIGN CURRENCY TRANSACTIONS :
Transactions in foreign exchange, other than those covered by forward contracts, are accounted at the exchange rates prevailing on the dates of the transactions.
Mar 31, 2000
A. Basis of Accounting
The accounts are prepared on historical cost convention with the exception of Land (which was revalued) based on accrual method of accounting and applicable Accounting Standards.
B. Balance Sheet
FIXED ASSETS :
Fixed Assets are stated at cost less depreciation except In the case of Land & Development which has been stated at the market value as on 30th June, 1990 on revaluation by an independent valuer and additions thereto since then, at cost. Expenses relating to new planting are capitalised.
INVESTMENTS :
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value determined on the basis of each category of investment. Cost includes brokerage, stamp duty and other financial charges directly attributable to their acquisition.
INVENTORIES :
Inventories are stated at lower of cost and net realisable value. The cost comprises of cost of purchase, cost of conversion and other cost including appropriate production overheads Incurred in bringing such inventories to their present condition and location. In the case of stores and spares, the cost is determined on weighted average basis except in the case of packing materials relating to Consumer Marketing Division which Is determined on FIFO basis.
RETIREMENT BENEFITS :
Liability to gratuity to employees determined on the basis of Actuarial Valuation as on Balance Sheet date is funded with Life Insurance Corporation of India and contribution thereto is absorbed in the Accounts. Fixed contributions to Provident Fund, Employees Pension Fund, Superannuation Fund and cost of other benefits are recognised in the Accounts at actual cost to the Company.
C. Profit and Loss Account
SALES :
Sales comprise sale of goods and services, net of sales returns and include excise duty and inter divisional transfers wherever applicable. Sales returns are accounted in the year of return. Sale of standing trees is credited to Profit and Loss Account on the basis of respective agreements. Insurance claims are accounted for to the extent admitted/settled by the insurance companies.
DIVIDENDS :
Dividends from Companies are accounted as income when the right to receive the payment is established.
DEPRECIATION :
Depreciation is provided under the written down value method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Development expenditure and value of lease hold land are not amortised.
REPLANTING EXPENSES :
Replanting expenses are charged to revenue.
FOREIGN CURRENCY TRANSACTIONS :
Transactions in foreign exchange, other than those covered by forward contracts, are accounted at the exchange rates prevailing on the dates of the transactions.
Mar 31, 1999
A. Basis of Accounting
The accounts are prepared on historical cost convention with the exception of Land (which was revalued) based on accrual method of accounting and applicable Accounting Standards.
B. Balance Sheet
FIXED ASSETS :
Fixed Assets are stated at cost less depreciation except in the case of Land & Development which has been stated at the market value as on 30th June, 1990 on revaluation by an independent valuer and additions thereto since then, at cost. Expenses relating to new planting are capitalised.
INVESTMENTS :
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value determined on the basis of each category of investment. Cost includes brokerage, stamp duty and other financial charges directly attributable to their acquisition.
INVENTORIES :
Inventories are stated at cost or net realisable value whichever is lower.
RETIREMENT BENEFITS :
Liability to gratuity to employees determined on the basis of Actuarial Valuation as on Balance Sheet date is funded with Life Insurance Corporation of India and contribution thereto is absorbed in the Accounts. Fixed contributions to Provident Fund, Employees Pension Fund, Superannuation Fund and cost of other benefits are recognised in the Accounts at actual cost to the Company.
C. Profit and Loss Account
SALES :
Sales comprise sale of goods and services, net of sales returns and include excise duty and inter divisional transfers wherever applicable. Sales returns are accounted in the year of return. Sale of standing trees is credited to Profit and Loss Account on the basis of respective agreements. Insurance claims are accounted for to the extent admitted/settled by the insurance companies.
DIVIDENDS :
Dividends from Companies are accounted as income when the right to receive the payment is established.
DEPRECIATION :
Depreciation is provided under the written down value method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Development expenditure and value of lease hold land are not amortised.
REPLANTING EXPENSES :
Replanting expenses are charged to revenue.
FOREIGN CURRENCY TRANSACTIONS :
Transactions in foreign exchange, other than those covered by forward contracts, are accounted at the exchange rates prevailing on the dates of the transactions.
Mar 31, 1998
A. Basis of Accounting
The accounts are prepared on historical cost convention with the exception of Land (which was revalued) based on accrual method of accounting and applicable Accounting Standards.
B. Balance Sheet
i) FIXED ASSETS :
Fixed Assets are stated at cost less depreciation except in the case of Land & Development which has been stated at the market value as on 30th June, 1990 on revaluation by an independent valuer and additions thereto since then, at cost. Expenses relating to new planting are capitalised.
ii) INVESTMENTS :
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value determined on the basis of each category of investment. Cost includes brokerage, stamp duty and other financial charges directly attributable to their acquisition.
iii) INVENTORIES :
Inventories are stated at cost or net realisable value whichever is lower.
iv) RETIREMENT BENEFITS :
Liability to gratuity to employees determined on the basis of Actuarial Valuation as on Balance Sheet date is funded with Life Insurance Corporation of India and contribution thereto is absorbed in the Accounts. Fixed contributions to Provident Fund, Employees Pension Fund, Superannuation Fund and cost of other benefits are recognised in the Accounts at actual cost to the Company.
C. Profit and Loss Account
i) SALES :
Sales comprise sale of goods and services, net of sales returns and include Excise Duty and inter divisional transfers wherever applicable. Sales returns are accounted in the year of return. Sale of standing trees is credited to Profit and Loss Account on the basis of respective agreements. Insurance claims are accounted for to the extent admitted /settled by the insurance companies.
ii) DIVIDENDS :
Dividends from Companies are accounted as income in the year in which they are declared.
iii) DEPRECIATION :
Depreciation is provided under the written down value method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Development expenditure and value of lease hold land are not amortised.
iv) REPLANTING EXPENSES :
Replanting expenses are charged to revenue.
v) FOREIGN CURRENCY TRANSACTIONS :
Transactions in foreign exchange, other than those covered by forward contracts, are accounted at the exchange rates prevailing on the dates of the transactions.
Mar 31, 1997
A. Basis of Accounting
The accounts are prepared on historical cost convention with the exception of Land (which was revalued) based on accrual method of accounting and applicable Accounting Standards.
B. Balance Sheet
FIXED ASSETS:
Fixed Assets are stated at cost less depreciation except in the case of Land & Development which has been started at the market value as on 30th June, 1990 on revaluation by an independent valuer and additions thereto since then, at cost. The expenses relating to new planting are capitalized.
INVESTMENTS:
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value determined on the basis of each category or investment. Cost includes brokerage, stamp duty and other financial charges directly attributable to their acquisition.
INVENTORIES:
Inventories are stated at cost or net realisable value whichever is lower.
RETIREMENT BENEFITS:
Liability to gratuity to employees determined on the basis of Actuarial Valuation as on Balance Sheet date is funded with Life Insurance Corporation of India and contribution thereto is absorbed in the Accounts. Fixed contributions to Provident Fund, Employees Pension Fund, Superannuation Fund and cost of other benefits are recognised in the Accounts at actual cost to the Company.
PRE-OPERATIVE/DEFERRED REVENUE EXPENDITURE:
(a) Pre-operative expenses relating to new projects are to be amortised from the date of completion of the respective projects.
(b) Advertisement and other expenses incurred on the launch of new products are being absorbed in the accounts over the period during which benefit is expected therefrom.
C. Profit and Loss Account
SALES:
Sales comprise sale of goods and services, net of discounts and sales returns and include excise duty and inter divisional transfers wherever applicable. Sales returns are accounted in the year of return Sale of standing trees are credited to Profit and Loss Account on the basis of respective agreements.
DIVIDENDS.
Dividends from Companies are accounted as income in the year in which they are declared.
DEPRECIATION:
Depreciation is provided under the written down value method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Development expenditure and value of lease hold land are not amortised.
REPLANTING EXPENSES:
Replanting expenses are charged to revenue.
FOREIGN CURRENCY TRANSACTIONS:
Transactions in foreign exchange, other than those covered by forward contracts, are accounted at the exchange rates prevailing on the dates of the transactions.
Mar 31, 1996
A. Basis of Accounting
The accounts are prepared on historical cost convention with exception of Land (which was revalued) based on accrual method of accounting and applicable Accounting Standards.
B. Balance Sheet
FIXED ASSETS:
Fixed Assets are stated at cost less depreciation except in the case of Land & Development which has been stated at the market value as on 30th June, 1990 on revaluation by an independent valuer and additions thereto since then, at cost. The expenses relating to new planting are capitalised.
INVESTMENTS:
Investments are stated at cost and include brokerage, stamp duty and other financial charges directly attributable to their acquisition.
INVENTORIES:
Inventories are stated at cost or net realisable value whichever is lower.
RETIREMENT BENEFITS:
Liability to gratuity to employees determined on the basis of Actuarial Valuation as on Balance Sheet date is funded with Life Insurance Corporation of India and contribution thereto is absorbed in the Accounts. Fixed contributions to Provident Fund, Employees Pension Fund, Superannuation Fund and cost of other benefits are recognised in the Accounts at actual cost to the Company.
PRE-OPERATIVE/DEFERRED REVENUE EXPENDITURE:
(a) Pre-operative expenses relating to new projects are to be amortised from the date of completion of the respective projects.
(b) Advertisement and other expenses incurred on the launch of new products are being absorbed in the accounts over the period during which benefit is expected therefrom.
C. Profit and Loss Account
SALES:
Sales comprise sale of goods and services, net of discounts and sales returns and include excise duty and inter divisional transfers wherever applicable. Sales returns are accounted in the year of return. Sale of standing trees are credited to Profit and Loss Account on the basis of respective agreements.
DIVIDENDS:
Dividends from Companies are accounted as income in the year in which they are declared.
DEPRECIATION:
Depreciation is provided under the written down value method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. Development expenditure and value of lease hold land are not amortised.
REPLANTING EXPENSES:
Replanting expenses are charged to revenue.
FOREIGN CURRENCY TRANSACTIONS:
Transactions in foreign exchange, other than those covered by forward contracts, are accounted at the exchange rates prevailing on the dates of the transactions.
Mar 31, 1995
A. Balance Sheet
FIXED ASSETS:
Fixed Assets are stated at cost less depreciation except in the case of Land & Development which has been stated at the market value as on 30th June, 1990 on revaluation and additions thereto since then at cost. The expenses relating to new planting are capitalised.
INVESTMENTS:
Investments are stated at cost and include brokerage, stamp duty and other financial charges directly attributable to their acquisition.
INVENTORIES:
Inventories are stated at cost or net realisable value whichever is lower.
GRATUITY:
Liability to gratuity to employees is covered under the Group Gratuity Scheme of the Life Insurance Corporation of India.
PREOPERATIVE/DEFERRED REVENUE EXPENDITURE:
(a) Preoperative expenses relating to new projects are to be amortised from the date of completion of the respective projects.
(b) Advertisement and other expenses incurred on the launch of new products are being absorbed in the accounts over the period during which benefit is expected therefrom.
Mar 31, 1994
A. Balance Sheet
FIXED ASSETS :
Fixed Assets are stated at cost less depreciation except in the case of Land & Development which has been stated at the market value as on 30th June, 1990 on revaluation and additions thereto since then at cost. The expenses relating to new planting are capitalised.
INVESTMENTS :
Investments are stated at cost and include brokerage, stamp duty and other financial charges directly attributable to their acquisition.
INVENTORIES :
Inventories are stated at cost or net realisable value whichever is lower.
GRATUITY :
Liability to gratuity to employees is covered under the Group Gratuity Scheme of the Life Insurance Corporation of India.
PREOPERATIVE/DEFERRED REVENUE EXPENDITURE :
(a) Preoperative expenses relating to new projects are to be amortised from the date of completion of the respective projects.
(b) Share issue expenses are being amortised over a period of five years.
(c) Advertisement and other expenses incurred on the launch of new products are being absorbed in the accounts over the period during which benefit is expected therefrom.
B. Profit and Loss Account
SALES :
Sales comprise sale of goods and services, net of discounts and sales returns and includes excise duty and interdivisional transfers wherever applicable. Sales returns are accounted in the year of return. Sale of standing trees are accounted as per the terms of relevant agreements.
DIVIDENDS :
Dividends from Companies are accounted as income in the year in which they are declared.
DEPRECIATION :
Depreciation is provided under the written down value method in the manner specified in Schedule XIV of the Companies Act, 1956, as amended by the notification No. GSR/756(E) dated 16-12-93 issued by the Department of Company Affairs. Development expenditure and value of lease hold land are not amortised.
REPLANTING EXPENSES :
Replanting expenses are charged to revenue.
FOREIGN CURRENCY TRANSACTIONS :
Transactions in foreign exchange, other than those covered by forward contracts, are accounted at the exchange rates prevailing on the dates of the transactions.
Jun 30, 1993
01. FIXED ASSETS
Fixed Assets are stated at cost less depreciation except in the case of Land and Development which has been stated at the market value as on 30th June, 1990 on revaluation and additions thereto since then at cost. The expenses relating to new planting are capitalised.
02. INVESTMENTS Investments are stated at cost and include brokerage, stamp duty and other financial charges directly attributable to their acquisition.
03. INVENTORIES Inventories are stated at cost or net realisable value whichever is lower.
04. GRATUITY Liability to gratuity to employees is covered under the Group Gratuity Scheme of the Life Insurance Corporation of India.
05. PREOPERATIVE/DEFERRED REVENUE EXPENDITIURE (a) Preoperative expenses relating to new projects are to be amortised from the date of completion of the respective projects. (b) Share issue expenses are being amortised over a period of five years. (c) Advertisement and other expenses incurred on the launch of new products are being absorbed in the accounts over the period during which benefit is expected therefrom.
06. SALES Sales comprese sale of goods and services, net of discounts and sales returns and includes excise duty and interdivisional transfers wherever applicable. Sales returns are accounted in the year of return. Sale of standing trees are accounted as per the terms of relevant agreements.
07. DIVIDENDS Dividends from Companies are accounted as income in the year in which they are declared.
08. DEPRECIATION Depreciation is provided under written down value method at the reates and in the manner specified under the Companies Act, 1956. Development expenditure and value of lease hold land are not amortised
09. REPLANTING EXPENSES Replanting expenses are charged to revenue.
10. FOREIGN CURRENCY TRANSACTIONS Transactions in foreign exchange, other than those covered by forward contracts, are accounted at the exchange rates prevailing on the date the transaction has taken place.
Jun 30, 1992
01. FIXED ASSETS
Fixed Assets are stated at cost less depreciation except in the case of Land and Development which has been stated at the market value as on 30th June, 1990 on revaluation and additions thereto since then at cost. The expenses relating to new planting are capitalised.
02. INVESTMENTS Investments are stated at cost and include brokerage, stamp duty and other financial charges directly attributable to their acquisition.
03. INVENTORIES Inventories are stated at cost or net realisable value whichever is lower.
04. GRATUITY Liability to gratuity to employees is covered under the Group Gratuity Scheme of the Life Insurance Corporation of India.
05. PREOPERATIVE/DEFERRED REVENUE EXPENDITIURE (a) Preoperative expenses relating to new projects are to be amortised from the date of completion of the respective projects. (b) Share issue expenses are being amortised over a period of five years. (c) Advertisement and other expenses incurred on the launch of new products are being absorbed in the accounts over the period during which benefit is expected therefrom.
06. SALES Sales comprese sale of goods and services, net of discounts and sales returns and includes excise duty and interdivisional transfers wherever applicable. Sales returns are accounted in the year of return. Sale of standing trees are accounted as per the terms of relevant agreements.
07. DIVIDENDS Dividends from Companies are accounted as income in the year in which they are declared.
08. DEPRECIATION Depreciation is provided under written down value method at the reates and in the manner specified under the Companies Act, 1956. Development expenditure and value of lease hold land are not amortised
09. REPLANTING EXPENSES Replanting expenses are charged to revenue.
10. FOREIGN CURRENCY TRANSACTIONS Transactions in foreign exchange, other than those covered by forward contracts, are accounted at the exchange rates prevailing on the date the transaction has taken place.
Jun 30, 1991
01. Depreciation for the year has been provided at the rates specified in Schedule XIV of the Companies Act, 1956 under the written down value method.r
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on Harrisons Malayalam Ltd.
-
Harrisons Malayalam Ltd. Tools
- Bulk Deals
- Block Deals
-
Harrisons Malayalam Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- Bonus
- Rights
- BSE Price History
- NSE Price History
-
Harrisons Malayalam Ltd. Key Financial Ratios
- Ratios
-
Harrisons Malayalam Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Harrisons Malayalam Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Harrisons Malayalam Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Harrisons Malayalam Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
- Change of Name
