Accounting Policies of Lykis Ltd. Company

Mar 31, 2018

Note 2 - General Corporate Information

Lykis Limited is incorporate on October 15, 1984. The Company is limited by shares and its shares are listed on Bombay Stock Exchange. The Company is engaged in trading of FMCG and Tea. The Company''s registered office is situated at Omar Mansion, 29A, Room No B5, Kolkata 700012.

The financial statements of the company were approved by the Board of Directors of the company on May 30, 2018. Note 3 - Significant Accounting Policies

This note provides a list of the significant accounting policies adopted in the preparation of the financial statements. These policies have been consistently applied in all material respect for all the years presented, unless otherwise started.

(i) Compliance with Ind-AS

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended).

The financial statements have been prepared on a historical cost basis, except for certain financial instruments which are measured at fair values.

Accounting policies have been consistently applied except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

(ii) Current versus non-current classification

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Act.

3.1 Revenue recognition

Revenue is recognized 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 and excluding taxes or duties collected on behalf of the government.

As the recovery of excise duty flows to the Company on its own account, revenue includes excise duty.

However, Goods and Service Tax (GST)/ value added tax (VAT) is not received by the Company on its own account. Rather, it is tax collected on value added to the commodity by the seller on behalf of the government. Accordingly, it is excluded from revenue.

The specific recognition criteria described below must also be met before revenue is recognized.

- Sale of goods

Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods. Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates.

Excise duty paid for captive consumption of goods, where CENVAT credit is not available, is shown as excise expense.

Income from export incentives such as duty drawback and premium on sale of import licenses and lease license fee are recognized on accrual basis.

- Interest income

Interest income is accrued on time proportion basis, by reference to the principal outstanding and effective interest rate applicable.

- Other Income

Other income is recognized when no significant uncertainty as to its determination or realization exists.

- Dividend

Dividend income is recognized when to right to receive payment has been established.

3.2 Foreign Currency Transaction and Translation

i. Functional and Presentation Currency

Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (''the functional currency''). The financial statements are presented in Indian Rupees, which is the Company''s functional and presentation currency.

ii. Transactions and Balances

In preparing the financial statements transactions in currencies other than the entity''s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at that date. Non-monetary items are measured at historical cost. Exchange differences on monetary items are recognized in the statement of profit and loss in the period in which they arise. Exchange differences arising on the settlement of monetary items, and on retranslation of monetary items are included in the statement of profit and loss for the period. Exchange differences arising on retranslation on nonmonetary items carried at fair value are included in statement of profit and loss for the period except for differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income.

3.3 Taxes

Tax expenses comprise of current and deferred tax.

Current income tax

a. Current tax is measured at the amount expected to be paid on the basis of reliefs and deductions available in accordance with the provisions of the Income Tax Act, 1961. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

b. Current tax items are recognized in correlation to the underlying transaction either in P&L, OCI or directly in equity.

Deferred tax

a. Deferred tax is provided using the balance sheet approach on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

b. Deferred tax liabilities are recognized for all taxable temporary differences.

c. Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, the carry forward of unused tax credits and unused tax losses can be utilized.

d. 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 utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

e. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates [and tax laws] that have been enacted or substantively enacted at the reporting date.

f. Deferred tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.

g. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities.

h. The Company recognizes tax credits in the nature of MAT credit as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period, i.e., the period for which tax credit is allowed to be carried forward. In the year in which the Company recognizes tax credits as an asset, the said asset is created by way of tax credit to the Statement of Profit and Loss.

3.4 Property, Plant and Equipment

Under the previous GAAP (Indian GAAP), fixed assets (including Capital work in progress) are stated at cost net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises the purchase price, borrowing costs, if capitalization criteria are met, directly attributable cost of bringing the asset to its working condition for the intended use. The Company has elected to regard previous GAAP carrying values of property as deemed cost at the date of transition to Ind AS.

Capital Work in progress included in PPE is stated at cost, net accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for long-term constructions projects if the recognition criteria is met. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

Borrowing cost relating to acquisition/construction of fixed assets which take substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use. Depreciation is calculated on WDV basis over the estimated useful life of the assets as prescribed under Part C of Schedule II of the Companies Act, 2013 except for the assets mentioned below for which useful lives estimated by the management. The identified component of fixed assets are depreciated over the useful lives and the remaining components are depreciated over the life of the principal assets.

The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.

Further, the Company evaluated the useful life of certain components of Plant and Machinery, the impact of which is not material. Assets costing '' 5,000 or less are fully depreciated in the year of purchase.

3.5 Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. Internally generated intangibles, excluding capitalized development costs, are not capitalized and the related expenditure is reflected in profit and loss in the period in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortized over the useful life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expenses on intangible assets with finite lives is recognized in the Statement of Profit and Loss unless such expenditure forms part of carrying value of another asset.

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Profit and Loss when the asset is derecognized.

The Company has elected to regard previous GAAP carrying value of Intangible Assets as deemed cost at the date of transition to Ind AS.

3.6 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. 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. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

General borrowing costs are capitalized at the weighted average of such borrowings outstanding during the year.

3.7 Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

For arrangements entered into prior to 1st April, 2015, the Company has determined whether the arrangement contain lease on the basis of facts and circumstances existing on the date of transition.

Company as a Lessee. A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the Company is classified as a finance lease.

Finance leases are capitalized at the commencement of the lease at the inception date fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized in finance costs in the Statement of Profit and Loss, unless they are directly attributable to qualifying assets, in which case they are capitalized in accordance with the Company''s general policy on the borrowing costs. Contingent rentals are recognized as expenses in the periods in which they are incurred.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term except the case where incremental lease reflects inflationary effect and lease expense is accounted in such case by actual rent for the period.

3.8 Inventories

Inventories are valued as under:

a. Raw Materials, Packing Materials, Stores & Spares:

Valued at lower of cost or net realizable value and for this purpose cost is determined on weighted average basis. Due provision for obsolescence is made.

b. Finished Goods & Work In Progress:

At cost or net realizable value, whichever is lower. Cost is determined on absorption basis. Due provision for obsolescence is made.

c. Stock-in-Trade:

Valued at lower of cost or net realizable value and for this purpose cost is determined on weighted average basis.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

3.9 Earnings Per Share (EPS)

- Basic Earnings per Share

Basic earnings per share is calculated by dividing, the profit attributable to owners of the Company by the weighted average number of equity shares outstanding during the financial year.

- Diluted Earnings per Share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

- the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

3.10 Impairment of financial assets & non-financial assets

a. Financial assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, ECLs are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of ECL (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized as an impairment gain or loss in the Statement of Profit and Loss.

b. Non-financial assets

Intangible assets and Property, Plant and Equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the Statement of Profit and Loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior year.

Impairment is determined for goodwill by assessing the recoverable amount of each Cash Generating Unit (i.e. CGU) (or group of CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognized. Impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods.

Intangible assets with indefinite useful lives are tested for impairment annually as at year end at the CGU level, as appropriate and when circumstances indicate that the carrying value may be impaired.

3.11 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when the Company has present obligation (legal or constructive) as a result of past events, for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

Contingent Liabilities are disclosed by way of notes to Financial Statements. Contingent assets are not recognized in the financial statements but are disclosed in the notes to the financial statements where an inflow of economic benefits is probable. Provisions and contingent liabilities are reviewed at each Balance Sheet date.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability.

3.12 Financial instruments

Initial recognition and measurement:

The Company recognizes a financial asset in its balance sheet when it becomes party to the contractual provisions of the instrument. All financial assets are recognized initially at fair value, plus in the case of financial assets not recorded at fair value through profit or loss (FVTPL), transaction cost that are attributable to the acquisition of the financial asset.

Where the fair value of a financial asset at initial recognition is different from its transaction price, the difference between the fair value and the transaction price is recognized as a gain or loss in the Statement of Profit and Loss at initial recognition if the fair value is determined through a quoted market price in an active market for an identical asset (i.e. level 1 input) or through a valuation technique that users data from observable markets (i.e. level 2 input).

In case the fair value in not determined using a level 1 or level 2 inputs as mentioned above, the difference between the fair value and transaction price is deferred appropriately and recognized as a gain in the Statement of Profit and Loss only to the extent the such gain or loss arises due to a change in factor that market participants take into account when pricing the financial asset.

However trade receivables that do not contain a significant financing component are measured at transaction price.

3.13 Investments and other financial assets

(i) Classification

The Company classifies its financial assets in the following measurement categories:

(1) those to be measured subsequently at fair value (either through other comprehensive income or through the Statement of Profit and Loss); and

(2) those measured at amortized cost.

The classification depends on the Company''s business model for managing the financial assets and the contractual terms of the cash flows.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value. Transaction costs of financial assets carried at fair value through the Profit and Loss are expensed in the Statement of Profit and Loss.

Debt instruments:

Subsequent measurement of debt instruments depends on the Company''s business model for managing the asset and the cash flow characteristics of the asset. The Company classifies its debt instruments into following categories:

(1) Amortized cost:

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at Amortized cost. Interest income from these financial assets is included in other income using the effective interest rate method.

(2) Fair value through other comprehensive Income:

Assets that do not meet the criteria for Amortized cost are measured at fair value through Other Comprehensive Income. Interest income from these financial assets is included in other income.

Equity instruments:

The Company measures its equity investment other than in subsidiaries, joint ventures and associates at fair value through profit and loss. However where the Company''s management makes an irrevocable choice on initial recognition to present fair value gains and losses on specific equity investments in other comprehensive income (Currently no such choice made), there is no subsequent reclassification, on sale or otherwise, of fair value gains and losses to the Statement of Profit and Loss.

Derecognition

A financial asset (or where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized (i.e. removed from the Company''s balance sheet) when any of the following occurs:

i. The contractual rights to cash flows from the financial asset expires;

ii. The Company transfers its contractual rights to received cash flows of the financial assets and has substantially transferred all the risk and rewards of ownership of the financial assets;

iii. The Company retains the contractual rights to receive cash flows but assumes a contractual obligations to pay the cash flows without material delay to one or more recipients under a ''pass-through'' arrangement (thereby substantially transferring all the risks and rewards of ownership of the financial asset);

iv. The Company neither transfers nor retains substantially all risk and rewards of ownership and does not retain control over the financial asset.

In cases where Company has neither transferred nor retained substantially all of the risks and rewards of the financial asset, but retains control of the financial assets, the Company continues to recognize such financial asset to the extent of its continuing involvement in the financial asset. In that case, the Company also recognizes an associated liability. The financial asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

On derecognition of a financial asset (except as mentioned in (ii) above for financial assets measured a FVTOCI), the difference between the carrying amount and the consideration received is recognized in the Statement of Profit and Loss.

Financial liabilities:

Financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.

Financial liabilities are initially measured at the Amortized cost unless at initial recognition, they are classified as fair value through profit and loss. Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at Amortized cost using the effective interest method.

3.14 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the Statement of Cash Flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

3.15 Cash flow statement

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

3.16 Standard issued but not yet effective

In March, 2018, the Ministry of Corporate Affairs (MCA) issued the Companies (Indian Accounting Standards) Amendment Rules, 2018, notifying Ind AS 115, Revenue from contracts with Customers, Appendix B to Ind AS 21 Foreign currency transactions and advance consideration and amendments to certain other standards. These amendments are in line with recent amendments made by International Accounting Standard Boards (IASB). These amendments are applicable to the Company from 1st April, 2018. The Company will be adopting the amendments from their effective dates.

Revenue from Contract with Customers

Ind AS 115 supersedes Ind AS 11, Construction Contracts and Ind AS 18, Revenue. Ind AS 115 requires an entity to report information regarding nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with customers. The principle of Ind AS 115 is that an entity should recognize revenue that demonstrates the transfer of promised goods and service to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

The Company is in process of evaluating the impact of Ind AS 115 on its financial statements.

Ind AS 21, Foreign Currency transactions and advance consideration

The Appendix clarifies that the date of the transactions for the purpose of determining the exchange rate to use on initial recognition of the asset, expense or income (or part of it) is the date on which an entity initially recognises the non-monetary liability arising from the payment or receipt of advance consideration towards such assets, expenses or income. If there are multiple payments or receipts in advance, then an entity must determine transaction date for each payment or receipts of advance consideration in a foreign currency.

The Company is in process of evaluating the impact of Ind AS 21 on its financial statements.

4. Use of estimates and critical accounting judgments

4.1 Use of Estimates

The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. The application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in (Note 1.4). Accounting estimates could change from period to period.

Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of the changes in circumstances surrounding the estimates.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

4.2 Critical estimates and judgments

The preparation of financial statements requires the use of accounting estimates which by definition will seldom equal the actual results. Management also need to exercise judgment in applying the Company''s accounting policies.

This note provides an overview of the areas that involved a higher degree of judgment or complexity and items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgments is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgment are:

Estimation of current tax expenses - (Refer Note)

Government grant - (Refer Note)

4.3 Fair value measurement

The Company measures financial instruments, such as, derivatives at fair value as per Ind AS 113 at each balance sheet date. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized 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.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

Deemed cost exemption

1 Para 27AA of Ind AS 101 provides that on transition to Ind AS, the group has elected to continue with the carrying value of all of its property, plant and equipment measured as per the previous I GAAP and use that carrying value as the deemed cost of the property, plant and equipment.

2 Asset under construction

Capital Work-in-Progress as at March 31,2018 comprises expenditure for ? 78.83 lakhs

3 Property, Plant and Equipments pledged/ mortgaged as security

All Property, Plant and Equipment are subject to a first charge/ collateral to secure the loans taken by the Company.

5 Gross carrying amount of Land includes certain plots having gross block value of INR 1,005.19 lakhs (March 31, 2017: INR 1,005.19 lakhs; April 1, 2016: INR 992.75 lakhs) situated at different locations, which are in the name of the Directors of the Company and are yet to be transferred in the name of the Company.

6 Gross carrying amount of Motor Vehicles includes certain Motor Vehicles having gross block value of INR 47.21 lakhs (March 31, 2017: INR 53.68 lakhs; March 31, 2016: INR 46.95 lakhs) which are in the name of the Directors of the Company and are yet to be transferred in the name of the Company.

(a) Terms / rights attached to:

Equity Shares

The Company has one class of equity shares having a par value of INR 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. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion to their shareholding.

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Mar 31, 2016

SIGNIFICANT ACCOUNTING POLICIES

1. Basis of Accounting:

General

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 (“the 2013 Act”) / Companies Act, 1956 (“the 1956 Act”), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except for change in the accounting policy for depreciation. 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. The Company''s activities in it''s business segments have operating cycles which do not exceed 12 months. As a result, current assets comprise elements that are expected to be realized within 12 months after the reporting date and current liabilities comprise elements that are due for settlement within 12 months after the reporting date.

(b) Revenue Item

Items of Incomes and Expenses are accounted for on the Accrual Basis, unless otherwise specifically stated hereunder in this Schedule.

(c) Fixed Assets

Tangible fixed assets acquired by the Company are reported at acquisition cost, with deductions for accumulated depreciation and impairment losses, if any depreciation on the acquisition cost includes the purchase price (excluding refundable taxes) and expenses directly attributable to bring the asset to the location and condition for its intended use. Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Tangible fixed assets has been provided on the SLM method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

(d) Depreciation

i Depreciation has been provided on assets acquired and or purchased prior to 01.04.87 on WDV method as per the useful life prescribed in schedule II of company''s Act, 2013.

ii On assets acquired after 1.4.87 on SLM basis as per the useful life prescribed in schedule II of company''s Act, 2013.

(e) Investments

Investments have been stated at cost.

(f) Stock In Trade

Inventories are valued at as under :

i Stores and spares Parts-At Cost

ii Stock of unsold Tea-At Estimated net realizable value

iii Stock of Nursery Plants- At estimated net realizable value

(g) Provisions for Current and Deferred Tax

Provision for Income tax has been made in accordance with the provisions of the Income Tax Act, 1961. Deferred tax resulting from “timing difference” between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax liability is recognized and carried forward.

(h) Contingent Liabilities

Contingent Liabilities, if any not provided for are disclosed by way of Notes on Accounts.

(i) Foreign Currency Transactions

Transactions in foreign currencies are translated to the reporting currency based on the exchange rate on the date of the transaction. Exchange differences arising on settlement thereof during the year are recognized as income or expenses in the Statement of Profit and Loss. Cash and bank balances, receivables and liabilities (monetary items) in foreign currencies as at the year end are valued at year end rates, and unrealized translation differences are included in the Statement of Profit and Loss.

(j) Principles of Consolidation

(I) The Financial Statements of the parent company and its subsidiaries have been consolidated on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses after fully eliminating intra-group balances, intra-group transactions and the unrealized profits to the extent possible. No impact of intra-group transactions of fixed assets has been taken which are not significant in nature.

(ii) The Financial Statements of the parent company and its subsidiaries have been consolidated using uniform accounting policies for like transactions and other events in similar circumstances.

(k) Accounting Policy

i) As per AS 9 Revenue from sale of goods is recognized when all the significant risks and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract, the Company retains no effective control of the goods transferred to a degree usually associated with ownership and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods

ii)) Domestic sales are recognized at the point of dispatch of goods to the customers, which is when substantial risks and rewards of ownership are passed to the customers, and are stated net of trade discounts, rebates, sales tax, value added tax and excise duty.

iii) Export sales are recognized based on the date of invoice since the Company does not maintain any stock of goods and all the goods imported are immediately exported

iv) Revenue from services is recognized on rendering of the services and is recorded net of discount and service tax.

v) Interest and other income are recognized on accrual basis.

vi) Dividend income is recognized if right to receive dividend is established by the reporting date.

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Mar 31, 2015

1. Basis of Accounting:

(a) General:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956 Act"), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except for change in the accounting policy for depreciation. 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. The Company's activities in its business segments have operating cycles which do not exceed 12 months. As a result, current assets comprise elements that are expected to be realised within 12 months after the reporting date and current liabilities comprise elements that are due for settlement within 12 months after the reporting date.

(b) Revenue Items:

Items of Incomes and Expenses are accounted for on Accrual Basis, unless otherwise specifically stated hereunder in this Schedule.

(c) Fixed Assets

Tangible fixed assets acquired by the Company are reported at acquisition cost, with deductions for accumulated depreciation and impairment losses, if any depreciation on the acquisition cost includes the purchase price (excluding refundable taxes) and expenses directly attributable to bring the asset to the location and condition for its intended use. Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Tangible fixed assets has been provided on the SLM method as per the useful life prescribed in Schedule II to the Companies Act, 2013

(d) Depreciation

i Depreciation has been provided on assets acquired and/or purchased prior to 01.04.87 on WDV method as per the useful life prescribed in schedule II of company's Act, 2013. ii On assets acquired after 1.4.87 on SLM basis as per the useful life prescribed in schedule II of company's Act, 2013.

(e) Investments

Investments have been stated at cost.

(f) Stock In Trade

Inventories are valued at as under :

i Stores and spares Parts-At Cost

ii Stock of unsold Tea-At Estimated net realizable value

iii Stock of Nursery Plants- At estimated net realizable value

(g) Provisions for Current and Deferred Tax

Provision for Income tax has been made in accordance with the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax liability is recognised and carried forward.

(h) Contingent Liabilities

Contingent Liabilities, if any not provided for are disclosed by way of Notes on Accounts.

(i) Foreign Currency Transactions

Transactions in foreign currencies are translated to the reporting currency based on the exchange rate on the date of the transaction. Exchange differences arising on settlement thereof during the year are recognised as income or expenses in the Statement of Profit and Loss. Cash and bank balances, receivables and liabilities (monetary items) in foreign currencies as at the year end are valued at year end rates, and unrealised translation differences are included in the Statement of Profit and Loss.

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Mar 31, 2014

1. Basis of Accounting:

(a) General:

The financial statements have been prepared under the Historical Cost Convention on the basis of Going Concern Concept in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently.

(b) Revenue Items:

Items of incomes and expenses are accounted for on the Accrual Basis, unless otherwise specifically stated hereunder in this Schedule.

(c) Fixed assets

Fixed assets are carried at cost of acquisition and / or revalued figures less depreciation.The cost of extension of planting cultivable land including cost of development is capitalized.

(d) Depreciation

i Depreciation has been provided on assets acquired and / or purchased prior to 01.04.87 on WDV method as per the WDV rates under schedule XIV of the Companies Act,(as amended) 1956.

ii On assets acquired after 1.4.87 on SLM basis as per the SLM rates prescribed under Schedule XIV of the Companies Act, (as amended) 1956.

iii Depreciation for the year includes depreciation on revalued items of fixed assets amounting to Rs. 1,38,644.00 and accordingly an equivalent amount has been transferred to Profit & Loss Account from Revaluation Reserve Account.

(e) Investments:

Investments have been stated at cost.

(f) Stock In Trade:

Inventories are valued at as under:

i Stores and Spare Parts-At cost

ii Stock of unsold Tea-At estimated net realizable value

iii Stock of Nursery Plants- At estimated net realizable value

(g) Provisions for Current and Deferred Tax

Provision for Income tax has been made in accordance with the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax liability is recognised and carried forward.

(h) Contingent Liabilities:

Contingent Liabilities, if any not provided for are disclosed by way of Notes on Accounts.

(i) Foreign Currency Transactions:

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transactions or that approximates the actual rate at the date of the transactions.

(b) Any income or expense on account of exchange difference either on settlement or on transaction is recognised in the Statement of Profit & Loss.

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Mar 31, 2013

(a) General:

The financial statements have been prepared under the Historical Cost Convention on the basis of ! Going Concern Concept in accordance with the generally accepted accounting principles and the j provisions of the Companies Act, 1956 as adopted consistently.

(b) Revenue Items: j Items of incomes and expenses are accounted for on the Accrual Basis, unless otherwise specifically j stated hereunder in this Schedule

(c) Fixed assets

Fixed assets are carried at cost of acquisition and / or revalued figures less depreciation.The cost of j ''* extension of planting cultivable land including cost of development is capitalized.

(d) Depreciation

Depreciation has been provided on assets acquired and / or purchased prior to 01.04.87 on WDV method as per the WDV rates under schedule XIV of the Companies Act,(as amended) 1956

ii On assets acquired after 1.4.87 on SLM basis as per the SLM rates prescribed under Schedule XIV of the Companies Act, (as amended) 1956.

iii Depreciation for the 12 months period includes depreciation on revalued items of fixed assets amounting to Rs. 1,38,644.00 and accordingly an equivalent amount has been transfened to Profit & Loss Account from Revaluation Reserve Account.

(e) Investments: Investments have been stated at cost.

(f) Stock In Trade: Inventories are valued at as under: Stores and Spare Parts-At cost

ii Stock of unsold Tea-At estimated net realizable value iii Stock of Nursery Plants-At estimated net realizable value

(g) Taxation

Current Tax is determined on the basis of the amount of tax payable underthe Income TaxAct, 1961 if any. Deferred tax liability is recognised and carried forward and there is reasonable Certainty that sufficient taxable income will be available against which such deferred tax liability can be adjusted.

(h) Contingent Liabilities;

Contingent Liabilities, if any not provided for are disclosed by way of Notes on Accounts.

(i) Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transactions or that approximates the actual rate at the date of the transactions.

(b) Any income or expanse on account of exchange difference either on settlement or on transaction is recognised in the Statement of Profit & Loss.

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Mar 31, 2012

1. Basis of Accounting:

(a) General:

The Financial Statements have been prepared under the Historical Cost Convention on the basis of Going Concern Concept in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently.

(b) Revenue Items:

Items of incomes and Expenses are accounted for on the Accrual Basis, unless otherwise specifically stated hereunder in this Schedule

(c) Fixed assets

Fixed assets are carried at cost of acquisition and / or revalued figures less depreciation.The cost of extension of Planting cultivable Land including cost of development is capitalized.

(d) Depreciation

i Depreciation has been provided on assets acquired and/or purchased prior to 01.04.87 on WDV method as per the WDV rates under Schedule XIV of the Companies Act,(as amended) 1956

ii On assets acquired after 1.4.87 on SLM basis as per the SLM rates prescribed under Schedule XIV of the Companies Act, (as amended) 1956.

iii Depreciation for the 6 months period includes depreciation on revalued items of Fixed Assets amounting to Rs.69,321.96 and accordingly an equivalent amount has been transferred to Profit & Loss Account from Revaluation Reserve Account.

(e) Investments:

Investments have been stated at cost.

(f) Stock In Trade:

Inventories are valued at as under:

i Stores and Spare Parts-At Cost

ii Stock of unsold Tea-At Estimated net realizable value

iii Stock of Nursery Plants-At Estimated net relizable value

(g) Taxation

Current Tax is determined on the basis of the amount of tax payable under the Income Tax Act, 1961 if any. Deferred tax liability is recognised and carried forward and there is reasonable certainty that sufficient taxable income will be available against which such deferred tax liability can be adjusted.

(h) Contingent Liabilities;

Contingent Liabilities, if any not provided for are disclosed by way of Notes on Accounts.

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Sep 30, 2011

1. GENERAL

i. These accounts have been prepared on the historical cost basis unless otherwise stated and on the accounting principles of going concern.

ii. The income and expenses have been accounted on mercantile basis, unless specifically stated to be otherwise.

iii. Accounting policies have been adopted in consonance with generally accepted accounting principles.

2. FIXED ASSETS

Fixed assets are carried at cost of acquisition and or revalued figures less depreciation. The cost ' of extension planting or cultivable land including cost of development is capitalized.

3. INVESTMENTS

Investments are stated at cost. Gains/losses on sale of investments are recognized as income/ ' expenditure. Dividend and Interest received is accounted for as and when received.

4. DEPRECIATION

i. Depreciation has been provided on assets acquired and or purchased prior to 1.4.87 on WDV ' method as per the WDV rates under Schedule XIV of the companies Act, (as amended) 1956 ,

ii. On assets acquired after 1.4.87 on S.L.M basis as per the SLM Rates prescribed under XIV of the companies Act (as amended) 1956.

iii. Depreciation for the 12 months period included depreciation on revalued items of fixed assets , amounting to Rs. 1,38,644.00 and accordingly an equivalent amount has been transferred to Profit & Loss Account from Revaluation Reserve Account.

- TAXATION

Current Tax is determined on the basis of the amount of tax payable under the Income Tax Act, 1961, if any. Deferred Tax Liabilities/Assets subject to consideration of prudence shall be recognized and carried forward only when there is reasonable certainty that sufficient taxable income will be , available against which such Deferred Tax Liabilities/Assets can be adjusted

INVENTORIES:

Inventories are valued at under

i. Stores and Spare parts - At cost

ii. Stock of unsold Tea - At estimated net realizable value.

iii. Stock of Nursery Plants - At estimated net realizable value.

CONTINGENT LIABILITIES :

Contingent liabilities have not been accounted for and are being disclosed by way of notes on accounts.

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Sep 30, 2010

1. GENERAL

i. These accounts have been prepared on the historical cost basis unless otherwise stated and on the accounting principles of going concern.

ii. The income and expenses have been accounted on mercantile basis, unless specifically stated to be otherwise.

iii. Accounting policies have been adopted in consonance with generally accepted accounting principles.

2. FIXED ASSETS

Fixed assets are carried at cost of acquisition and or revalued figures less depreciation. The cost of extension planting or cultivable land including cost of development is capitalized.

3. INVESTMENTS

Investments are stated at cost. Gains/losses on sale of investments are recognized as income/expenditure, Dividend and Interest received is accounted for as and when received.

4. DEPRECIATION

i. Depreciation has been provided on assets acquired and or purchased prior to 1.4.87 on WDV method as per the WDV rates under Schedule XIV of the companies Act,(as amended) 1956

ii. On assets acquired after 1.4.87 on S.L.M basis as per the S.LM Rates prescribed under XIV of the companies Act (as amended) 1956.

iii. Depreciation for the 15 months period included depreciation on revalued items of fixed assets amounting to Rs. 1,73,305.10 and accordingly and equivalent amount has been transferred to Profit & Loss Account from Revaluation Reserve Account.

TAXATION

Current Tax is determined on the basis of the amount of tax payable under the Income Tax Act, 1961, if any. Deferred Tax Liabilities/Assets subject to consideration of prudence shall be recognized and carried forward only when there is reasonable certainty that sufficient taxable income will be available against which such Deferred Tax Liabilities/Assets can be adjusted

INVENTORIES:

Inventories are valued at under

i. Stores and Spare parts-At cost

ii. Stock of unsold Tea-A testimated net realizable value.

iii. Stock of Nursery Plants-A testimated net realizable value.

CONTINGENT LIABILITIES:

Contingent liabilities have not been accounted for and are being disclosed byway of notes on accounts.

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Jun 30, 2009

1. GENERAL

(i) These accounts have been prepared on the historical cost basis unless otherwise stated and on the accounting principles of going concern.

(ii) All expenses and income to the extent considered payable and receivable respectively, unless specifically state to be otherwise area accounted for on mercantile basis.

(iii) Accounting policies unless specifically states to be otherwise are consistent and are in consonance with generally accepted accounting principles.

2. FIXED ASSETS :

Fixed assets are carried at cost of acquisition and or revalued figures less depreciation. The cost of extension planting or cultivable land including cost of development are capitalised.

3. INVESTMENTS :

Investment are stated at cost Gains/losses on sale of investments are recognised as income/expenditure. Dividends. Interest received are accounted for as and when received.

4. DEPRECIATION

(i) Depreciation has been provided on assets acquired and or purchased prior to 1.4.87 on WDV method as per the WDV rates under Schedule XIV of the companies Act, (as amended) 1956

(ii) On assets acquired after 1.4.87 on S.L.M basis as per the S.LM Rates prescribed under XIV of the companies Act (as amended) 1956.

(iii) Depreciation for the year included depreciation on revalued items of fixed assets amounting to Rs. 1,39,025.00 and accordingly and equivalent amount has been transferred to Profit & Loss Account from Revaluation Reserve Account.

5. TAXATION

Current Tax is determined on the basis of the amount of tax payable under the Income Tax Act, 1961, if any. Deferred Tax Liabilities/Assets subject to consideration of prudence shall be recognized and carried forward only when there is reasonable certainty that sufficient taxable income will be available against which such Deferred Tax Liabilities/Assets can be adjusted.

6. INVENTORIES :

Inventories are valued at under

(i) Stores and Spare parts - At cost

(ii) Stock of unsold Tea - At estimated net realizable value.

(iii) Stock of Nursary Plants - At estimated net realizable value.

7. CONTINGENT LIABILITIES :

Contingent liabilities have not been accounted for and are being disclosed by way of notes on accounts.