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Accounting Policies of T & I Global Ltd. Company

Mar 31, 2018

Notes to Financial Statements as at and for the year ended 31st March, 2018

Indian Accounting Standard

The Ministry of Corporate Affairs (MCA) notified Companies (Indian Accounting Standard) Rules 2015 enabling implementation of Ind AS. Pursuant to this notification T & l Global Ltd. has adopted Ind AS (the converged IFRS) with effect from April 1, 2017. Accordingly, the standalone financial statements for the year ended 31st March, 2018, and 31st March, 2017 including transition date balance sheet as at 1st April, 2016 have been prepared in accordance with Ind AS. The effect of transition to Ind AS has been given in detail in Financial Statement section.

NOTES TO FINANCIAL STATEMENTS BACKGROUND

T & l Global Limited is a Company limited by shares, incorporated and domiciled in India. The Company is engaged in manufacturing and trading of processing machineries for tea and herbal having tea estate and factory.

1. SIGNIFICANT ACCOUNTING POLICIES

This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.

1.1 Basis of Preparation

1.1.1 Compliance with Ind AS

These financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the "Act") [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act. The financial statements up to year ended 31st March 2017 were prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act. These financial statements are the first financial statements of the Company under Ind AS. Refer Note 26 for an explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows.

1.1.2 Classification of current and non-current

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 Ind AS 1 - Presentation of financial Statements and 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/non-current classification of assets and liabilities.

1.1.3 Historical Cost Convention

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention, except for the following :

i) certain financial assets and liabilities (including derivative instruments) that is measured at fair value; ii) defined benefit plans - plan assets measured at fair value;

1.2 Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of sales return, sales tax/ value added tax/ goods and service tax. The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Company and significant risk and reward incidental to sale of products is transferred to the buyer.

1.3 Accounting for Taxes on Income

The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses(if any). The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements liability is settled.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority.

Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Current and deferred tax is recognised in profit or 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.

1.4 Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

1.5 Inventories

Raw materials including harvested tea leaves, produced from own gardens are measured at lower of cost and net realisable value. Cost being the fair value less cost to sell at the point of harvest of tea leaves. Stores, Spare parts and Finished Goods are stated at lower of cost and net realisable value. Cost of Finished Goods comprise direct material, direct labour and appropriate portion of variable and fixed overhead expenditure. Cost of inventories also include all other costs incurred in bringing the inventories to their present location and condition. Cost are assigned to individual items of inventory on the basis of weighted average method. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

Inventories of Tea machinery are valued at lower of cost or net realizable value. Stores and spares are valued at cost.

1.6 Investments and Other Financial Assets

1.6.1 Classification

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

> those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss).

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

1.6.2 Measurement

> Fair value through other comprehensive income (FVOCI): Assets that are held for collections of contractual cash flows and for selling the financial assets, where the assets cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Interest income from these financial assets is included in other income using the effective interest rate method.

> Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss. Interest income from these financial assets is included in other income.

Equity instruments

The Company subsequently measures all equity investments at fair value through other comprehensive income. 1.6.3 Derecognition of financial assets

A financial asset is derecognised only when

> The Company has transferred the rights to receive cash flows from the financial asset, or

> Retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised. Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset.

1.7 Financial liabilities

1.7.1 Initial recognition and measurement

The Company recognises all the financial liabilities on initial recognition at fair value minus, in the case of a financial liability not at fair value through Profit or Loss, transaction costs that are directly attributable to the acquisition or issue of the financial liability.

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts.

1.7.2 Subsequent measurement

All the financial liabilities are classified as subsequently measured at amortised cost,

1.8 Property, Plant and Equipment

Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit and loss during the reporting period in which they are incurred.

Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all its property, plant and equipment recognised as at 1st April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of property, plant and equipment.

Depreciation methods, estimated useful lives and residual value

Depreciation is calculated using the written down value method on the basis of useful lives prescribed in Schedule II to the Companies Act, 2013, which are also supported by technical evaluation. Item of Fixed Assets for which related actual cost do not exceed Rs 5,000 are fully depreciated in the year of purchase. In respect of the following assets, useful lives different from Schedule II have been considered on the basis of technical evaluation, as under:-

> Plant and Equipment: Ranging from 5 years to 30 years

> Non-factory Buildings : Ranging from 15 years to 70 years

> Bearer Plants : 60 years

Bearer Plants are depreciated from the date when they are ready for commercial harvest.

The assets'' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss within other gains/flosses).

1.9 Provision, Contingent Liabilities and Contingent Assets, legal or constructive

Provisions are recognised when there is 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 there is a reliable estimate of the amount of the obligation. Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period.

A disclosure for contingent liabilities is made when there is 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. When there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made.

Contingent Assets are not recognised but are disclosed when an inflow of economic benefits is probable.

1.10 Employee Benefits

1.10.1 Short-term Employee Benefits

These are recognised at the undiscounted amount as expense for the year in which the related service is rendered.

1.10.2 Other Long-term Employee Benefits (Unfunded)

The cost of providing long-term employee benefits is determined using Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses and past service cost are recognised immediately in the Statement of Profit and Loss for the period in which they occur. Long term employee benefit obligation recognised in the Balance Sheet represents the present value of related obligation.

1.10.3 Post-employment Benefit Plans

Contributions under Defined Contribution Plans payable in keeping with the related schemes are recognised as expenditure for the year. In case of Defined Benefit Plans, the cost of providing the benefit is determined using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in full in the Other Comprehensive Income for the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested, and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, if any, and as reduced by the fair value of plan assets, where funded. Any asset resulting from this calculation is limited to the present value of any economic benefit available in the form of refunds from the plan or reductions in future contributions to the plan.

1.10.4 Bonus plans

The Company recognizes a liability and an expense for bonuses on cash basis. The Company recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

1.10.5 Medical Insurance Premium Re-imbursement(unfunded)

The Company has a scheme of re-imbursement of medical expenses including medical insurance premium subject to a maximum of 5% of the Basic Salary to employees.

1.11 Proposed Dividend

The Board of Directors in its meeting on 30th May, 2018 has proposed Dividend of Rupee 0.50 per equity share

for the Financial Year ended 31st March, 2018. The proposal is subject to the approval of the shareholders at the Annual General Meeting and if approved would result in a Cash outflow of rupees 30.50 Lakhs (Including Taxes).

1.12 Earnings per Share

1.12.1 Basic earnings per share

Basic earnings per share is calculated by dividing:

> The profit/ loss attributable to owners of the Company

> By the weighted average number of equity shares outstanding during the financial year.

1.12.2 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.

1.13 Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the company or the counterparty.

1.14 Use of Estimates

The Preparation of financial statements in conformity with the generally accepted accounting principles in India requires the management to make estimates and assumptions that affects the reported amount of assets and liabilities as at the balance sheet date, the reported amount of revenue and expenses for the periods and disclosure of contingent liabilities at the balance sheet date. The estimates and assumptions used in the financial statements are based upon management''s evaluation of relevant facts and circumstances as of the date of financial statements. Actual results could differ from estimates.

1.15 Borrowing costs

Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing costs are charged to Statement of Profit and Loss.

1.16 Critical estimates and judgments

The areas involving critical estimates and judgments are: i. Taxation

The Company is engaged in agricultural activities and also subject to tax liability under MAT provisions. Significant judgement is involved in determining the tax liability for the company. Also there are many transactions and calculations during the ordinary course of business for which the ultimate tax determination is uncertain. Further judgment is involved in determining the deferred tax position on the balance sheet date.

ii. Depreciation and amortisation

Depreciation and amortisation is based on management estimates of the future useful lives of the property, plant and equipment and intangible assets. Estimates may change due to technological developments, competition, changes in market conditions and other factors and may result in changes in the estimated useful life and in the depreciation and amortization charges.

iii. Employee Benefits

The present value of the defined benefit obligations and long term employee benefits depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) include the discount rate. Any changes in these assumptions will impact the carrying amount of defined benefit obligations.

The Company determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the obligations. In determining the appropriate discount rate, the Company considers the interest rates of Government securities that have terms to maturity approximating the terms of the related defined benefit obligation. Other key assumptions for obligations are based in part on current market conditions.

iv. Provisions and Contingencies

Provisions and contingencies are based on Management''s best estimate of the liabilities based on the facts known at the balance sheet date.

1.17 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.


Mar 31, 2016

1 SIGNIFICANT ACCOUNTING POLICIES 1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENT :

The financial statements have been prepared on accrual basis in accordance with accepted accounting principles generally accepted in India under the historical cost convention except for payment of Bonus. These comply with the Accounting Standards prescribed under section 133 of the Companies Act,2013 "the Act" read with Rule 7 of Companies (Accounts) Rule,2014.The accounting policies applied by the Company are consistent with those used in last year.

1.2 USE OF ESTIMATES

The preparation of financial statement required judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities including contingent liabilities on the dates of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual reserves and estimates are recognized in the period in which the results are known/ materialized.

1.3 REVENUE RECOGNITION :

Sale incomes accrued on passing of title of goods and other income and expenses are accounted for on accrual basis except mentioned above. Sales are net of excise duty and sales tax.

1.4 FIXED ASSETS AND DEPRECIATION :

i) Fixed Assets including incidental expenses thereto are stated at cost. All expenditures on extension of planting areas are capitalized.

ii) Depreciation is systematically allocated over the useful life of an asset as specified in part C of schedule Ii of Companies Act,2013

iii) Profit or loss on disposal of fixed assets are recognized in Profit & loss account.

iv) The carrying amount of assets are reviewed at each Balance Sheet date to ascertain impairment based on internal / external factors. An impairment loss is recognized wherever applicable the carrying value of Fixed Assets exceeds its market value or value in use, whichever is higher.

1.5 INVESTMENT :

i) Investments are valued at cost including cost of share transfer stamp.

ii) Investments those are short term in nature taken under the head Current Assets as Current Investment are valued at lower of cost or market value.

iii) Long term investment are valued at cost. The diminution (if any) in the value of investment is not recognized unless such diminution is considered permanent in nature.

1.6 INVENTORIES:

i) Tea Machinery is valued at lower of cost or net realizable value .

ii) Stock of Tea is valued at lower of cost or net realizable value.

iii) Stores, Chemicals, Spares for Machinery, Green leaf are valued at cost.

iv) Stock of nursery in respect of own plants taken from the garden as well as the plants purchased have been valued at cost.

1.7 ACCOUNTING FOR FOREIGN CURRENCY TRANSACTIONS:

The Foreign Currency transactions are recorded on the basis of exchange rate prevailing at the time of the transactions. Differences in transactions due to exchange fluctuations are recognized in the Profit and Loss Account as and when it arises. Current Assets & Liabilities have been restated at the prevailing closing Bank exchange rates of the financial year. and it''s effect has been given in the Foreign Currency Fluctuation Account.

1.8 EMPLOYEE BENEFITS

i) Employee benefits of short term natures are recognized as expenses as and when it accurse.

ii) Employee benefits of long term natures are recognized as expenses based on actuarial valuation.

iii) Post employment benefits,

a. in the nature of defined contribution plans are recognized as expenses as and when it accrues.

b. in the nature of Defined benefits plans in respect of the employees on roll are recognized as expenses based on actuarial valuation.

iv) Actuarial gains and losses are recognized immediately in the profit and loss Account as income and expense.

1.9 TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the year in accordance with the provisions of the Income Tax Act. 1961. Deferred tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudent, on timing difference, being the difference between taxable income and accounting income that originate in the year and are capable of reversal in one or more subsequent years.

1.1 GOVERNMENT GRANTS

Grants from the Government are recognized on compliance of conditions and on reasonable assurance of the same being received, grants received from the Government agencies against specific fixed assets are adjusted to the cost of the assets and revenue grants are recognized as other income on cash basis.

1.11 PROVISIONS,CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized where reliable estimate can be made for probable outflow of resources to settle the present obligation as a result of past event and the same is reviewed at each Balance sheet date. Contingent Liabilities are generally not provided for in the accounts and are shown separately in Notes on Accounts. Contingent assets are not provided for or disclose.

2.23 RETIREMENT BENEFITS:

i. Defined Contribution Plan

The Company makes defined contribution to Government recognized Provident & other funds which are recognized in the Profit & Loss account. The Company''s contribution to the aforesaid Provident Fund was Rs.5834135/- (Previous Year Rs. 4130589/-)

ii. Defined Benefit Plan (funded)

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India / Reliance General life insurance company limited is a defined benefit plan. The Insurance Companies makes payment to vested employees or their nominees upon retirement, death, incapacitation or cessation of employment subject to maximum of Rs.10 Lacs. Vesting occurs upon completion of five years of service.

iii. Medical Insurance Premium Re-imbursement (unfunded)

The Company has a scheme of re-imbursement of medical expenses including medical insurance premium subject to a maximum of 5% of the Basic Salary to employees.

iv Leave Encashment

As per the Company rules employees are entitled to get accumulated leave up to 30 days, which are encased in the following year. An amount of Rs.525054/-(Previous Year 510755/-) accrued in this account as on 31 /03/2016 has duly been provided.

2.24 Employees State Insurance

The company has paid Rs 133305/- (Previous year 185936/-) to ESI for F.Y 2015-16 which comprises Rs 37140 /- (Previous Year 50186/-) towards Employee''s Contribution and Rs 96165 /- (Previous Year Rs.135750/-) towards Employer''s contribution

2.25 Contingent liability not provided for in the accounts for : Sales Tax Rs.601808/- (Previous Year Rs.4242009/-) and Income Tax Rs. Nil (Previous Year 1183764/-) not acknowledge as debt by the company for which company preferred appeal. Matter is pending with appellate authority.

2.26 Bank Guarantee outstanding Rs.6867353/- (Previous Year Rs.66021659/-)

2.27 In the opinion of Board of Directors, the diminution of market value of Quoted Investment are of temporary in nature as such diminution has not been considered in the Accounts under review. Quantum of diminution is Rs.808839/- (Previous Year Rs.906866/-)

2.28 Balance confirmations from some of the debtors, creditors and material lying with third party are still awaited.

2.29 The names of small scale industrial undertaking to whom company owes sums outstanding for more than 30 days as at Balance Sheet date are Hi-Tech Engineering Company, are Industries, Sanjay Engineering Works, N. M. Concern, S. C. Welding and S.B.M. Engineering Works.


Mar 31, 2015

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENT :

The financial statements have been prepared on accrual basis in accordance with accepted accounting principles generally accepted in India under the historical cost convention except for payment of Bonus.These complywith the Accounting Standards prescribed under section 133 of the Companies Act,2013 read with Rule 7 of Companies (Accounts) Rule,2014.The accounting policies applied by the Company are consistent with those used in last year.

1.2 USE OF ESTIMATES

The preparation of financial statement required judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities including contingent liabilities on the dates of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual reserves and estimates are recognised in the period in which the results are known/ materialised.

1.3 REVENUE RECOGNITION :

Sale incomes accrued on passing of title of goods and other income and expenses are accounted for on accrual basis except mentioned above.Sales are net of excise duty and sales tax.

1.4 FIXED ASSETS AND DEPRECIATION :

i) Fixed Assets including incidental expenses thereto are stated at cost. All expenditures on extension of planting areas are capitalised.

ii) Depreciation is systematically allocated over the useful life of an asset as specified in part C of schedule of Companies Act,2013

iii) Consequent to the enactment of Part A of schedule ii of the Companies Act 2013, the company has reassessed the remaining useful life of Fixed Assets in accordance with the provisions prescribed under schedule II.In case of assets which have completed their useful life ,carrying value ( net of residual value) as on 01/04 2014,amounting to Rs.2415769/- has been recognised in retained earnings and in case of other assets the carrying value (net of residual value) is being depreciated over the revised remaining useful life.

iv) Profit or loss on disposal of fixed assets are recognised in Profit & loss account

v) The carrying amount of assets are reviewed at each Balance Sheet date to ascertain impairment based on internal / external factors.An impairment loss is recognised wherever applicable when the carrying value of Fixed Assets exceeds its market value or value in use,whichever is higher

1.5 INVESTMENT :

i) Investments are valued at cost including cost of share transfer stamp.

ii) Investments those are short term in nature taken under the head Current Assets as Current Investment. are valued at lower of cost or market value

iii) Long term investment are valued at cost. The dimunition (if any) in the value of investment is not recognised unless such dimunition is considered permanent in nature.

1.6 INVENTORIES:

i) Tea Machinery is valued at lower of cost or net realisable value .

ii) Stock of Te a is valued at lower of cost or net realisable value.

iii) Stores, Chemicals, Spares for Machinery, Green leaf are valued at cost.

iv) Stock of nursery in respect of own plants taken from the garden as well as the plants purchased have been valued at cost.

1.7 ACCOUNTING FOR FOREIGN CURRENCY TRANSACTIONS:

The Foreign Currency transactions are recorded on the basis of exchange rate prevailing at the time of the transactions. Differences in transactions due to exchange fluctuations are recognised in the Profit and Loss Account as and when it arises. Current Assets & Liabilities have been restated at the prevailing closing Bank exchange rates of the financial year. and it's effect has been given in the Foreign Curreny Fluctuation Account

1.8 EMPLOYEE BENEFITS

i) Employee benefits of short term natures are recognized as expenses as and when it accrues

ii) Employee benefits of long term natures are recognized as expenses based on actuarial valuation.

iii) Post employment benefits,

a. in the nature of defined contribution plans are recognized as expenses as and when it accrues.

b. in the nature of Defined benefits plans in respect of the employees on roll are reconized as expenses based on actuarial valuation

iv) Actuarial gains and losses are recognized immediately in the profit and loss Account as income and expense

1.9 TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the year in accordance with the provisions of the Income Tax Act. 1961. Defferred tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consioderation of prudent, on timing difference, being the difference between taxable income and accounting income that originate in the year and are capable of reversal in one or more subsequent years

1.10 GOVERNMENT GRANTS

Grants from the Government are recognized on compliance of conditions and on reasonable assurance of the same being received, grants received from the Government agencies against specific fixed assets are adjusted to the cost of the assets and revenue grants are recognized as other income on cash basis.

1.11 PROVISIONS,CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized where reliable estimate can be made for probable outflow of resources to settle the present obligation as a result of past event and the same is reviewed at each Balancesheet date. Contingent Liabilities are generally not provided for in the accounts and are shown separately in Notes on Accounts. Contingent assets are not provided for or disclose.


Mar 31, 2014

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENT :

The financial statements have been prepared on accrual basis in accordance with accepted accounting standards, accepted accounting policies and applicable provisions of The Companies Act 1956, based on historical cost convention except payment of bonus. Financial statement has been prepared and presented as per the requirement of revised Schedule VI as notified under the Companies Act 1956. The adaption of revised Schedule VI does not have any impact on recognition and measurement principal as followed by the company.

1.2 USE OF ESTIMATES

The preparation of financial statement required judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities including contingent liabilities on the dates of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual reserves and estimates are recognised in the period in which the results are known/ materialised.

1.3 REVENUE RECOGNITION :

Sale incomes accrued on passing of title of goods and other income and expenses are accounted for on accrual basis except mentioned above. Sales are net of excise duty and sales tax.

1.4 FIXED ASSETS AND DEPRECIATION :

i) Fixed Assets including incidental expenses thereto are stated at cost. All expenditures on extension of planting areas are capitalised.

ii) Depreciation has been accounted for on Written Down Value Method at the rates prescribed under Schedule XIV to the Companies Act, 1956.and on prorata basis in case of Addition / Deletion of Fixed Assets.

iii) Profit or loss on disposal of fixed assets are recognised in Profit & loss account

iv) The carrying amount of assets are reviewed at each Balance Sheet date to ascertain impairment based on internal / external factors. An impairment loss is recognised where applicable when the carrying value of Fixed Assets exceeds its market value or value in use whichever is higher.

1.5 INVESTMENT :

i) Investments are valued at cost including cost of share transfer stamp.

ii) Investments those are short term in nature taken under the head Current Assets as Current Investment. are valued at lower of cost or market value

iii) Non Provision for diminution of market value of Investment, if permanent in nature is to be accounted for in the accounts .

1.6 INVENTORIES:

i) Tea Machinary is valued at lower of cost or net realisable value .

ii) Stock of Tea is valued at lower of cost or net realisable value.

iii) Stores, Chemicals, Spares for Machinery, Green leaf are valued at cost.

iv) Stock of nursery in respect of own plants taken from the garden as well as the plants purchased have been valued at cost.

1.7 ACCOUNTING FOR FOREIGN CURRENCY TRANSACTIONS:

The Foreign Currency transactions are recorded on the basis of exchange rate prevailing at the time of the transactions. Differences in transactions due to exchange fluctuations are recognised in the Profit and Loss Account as and when it arises. Current Assets & Liabilities have been restated at the prevailing closing Bank exchange rates of the financial year, and it''s effect has been given in the Foreign Currency Fluctuation Account

1.8 EMPLOYEE BENEFITS

i Employee benefits of short term natures are recognized as expenses as and when it occurs

ii) Employee benefits of long term natures are recognized as expenses based on actuarial valuation.

iii) Post employment benefits.

a in the nature of defined contribution plans are recognized as expenses as and when it accrues. b in the nature of defined benefits plans in respect of the employees on roll are recognized as expenses based on actuarial valuation

iv Actuarial gains and losses are recognized immediately in the profit and loss Account as income and expense

1.9 TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the year in accordance with the provisions of the Income Tax Act. 1961. Deferred tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudent, on timing difference, being the difference between taxable income and accounting income that originate in the year and are capable of reversal in one or more subsequent years

1.10 GOVERNMENT GRANTS

Grants from the Government are recognized on compliance of conditions and on reasonable assurance of the same being received, grants received from the Government agencies against specific fixed assets are adjusted to the cost of the assets and revenue grants are recognized as other income on cash basis.

1.11 PROVISIONS,CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized where reliable estimate can be made for probable outflow of resources to settle the present obligation as a result of past event and the same is reviewed at each Balance sheet date. Contingent Liabilities are generally not provided for in the accounts and are shown separately in Notes on Accounts. Contingent assets are not provided for or disclose.


Mar 31, 2013

1.1 BASIS OF PREPARATION OF FINANCIALSTATEMENT:

The financial statements have been prepared on accrual basis in accordance with accepted accounting standards, accepted accounting policies and applicable provisions of The Companies Act, 1956 based on historical cost convention except payment of bonus, financial statement has been prepared and presented as per the requirement of revised Schedule VI as notified under the Companies Act 1956.. The adaption of revised Schedule VI does not have any impact on recognition and measurement principal as followed by the company.

1.2 USE OF ESTIMATES

The preparation of financial statement required judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities including contingent liabilities on the dates of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual reserves annd estimates are recognised in the period in which the results are known/ materialised.

1.3 REVENUE RECOGNITION:

Sale incomes accrued on passing of title of goods and other income and expenses are accounted for on accrual basis except mentioned above.Sales are net of excise dutyand sales tax.

1.4 FIXED ASSETS AND DEPRECIATION:

i) Fixed Assets including incidental expenses thereto are stated at cost. All expenditures on extension of planting areas are capitalised.

ii) Depreciation has been accounted for on Written Down Value Method at the rates prescribed under Schedule XIV to the Companies Act, 1956.and on prorata basis in case of Addition / Deletion of Fixed Assets.

iii) Profit or loss on disposal of fixed assets are recognised in Profits loss account

iv) An impairment loss is recognised where applicable when the carrying value of Fixed Assets exceeds its market value or value in use, whichever is higher

1.5 INVESTMENT:

i) Investments are valued at cost including cost of share transfer stamp.

ii) Non Provision for diminution of market value of Investment, if parmanent in nature is to be accounted for in the accounts.

1.6 INVENTORIES:

i) TeaMachinary is valued at lower of cost or net realisable value.

ii) Stock of Tea is valued at lower of cost or net realisable value.

iii) Stores, Chemicals, Spares for Machinery, Green leaf are valued at cost.

iv) Stock of nursery in respect of own plants taken from the garden as well as the plants purchased have been valued at cost.

1.7 ACCOUNTING FOR FOREIGN CURRENCY TRANSACTIONS:

The Foreign Currency transactions are recorded on the basis of exchange rate prevailing at the time of the transactions. Differences in transactions due to exchange fluctuations are recognised in the Profit and Loss Account as and when it arises. Current Assets & Liabilities have been restated at the prevailing closing Bank exchange rates of the financial year, and it''s effect has been given in the Foreign Curreny Fluctuation Account

1.8 EMPLOYEE BENEFITS

i) Employee benefits of short term natures are recognized as expenses as and when it accures ii) Employee benefits of long term natures are recognized as expenses based on actuarial valuation. iii) Post employment benefits,

a. in the nature of defined contribution plans are reconized as expenses as and when it accrues.

b. in the nature of Defined benefits plans in respect of the employees on roll are reconized as expenses based on actuarial valuation

iv) Actuarial gains and losses are recognized immediately in the profit and loss Account as income and expense

1.9 TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the year in accordance with the provisions of the Income Tax Act. 1961. Defferred tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consioderation of prudent, on timing difference, being the difference between taxable income and accounting income that originate in the year and are capable of reversal in one or more subsequent years

1.1 GOVERNMENT GRANTS

Grants from the Government are recognized on compliance of conditions and on reasonable assurance of the same being received, grants received from the Government agencies against specific fixed assets are adjusted - to the cost of the assets and revenue grants are recognized as other income on cash basis.

1.11 PROVISIONS,CONT|NGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized where reliable estimate can be made for probable outflow of resources to settle the present obligatiopn as a result of past event and the same is reviewed at each Balancesheet date. Contingent Liabilities are generally not provided for in the accounts and are shown separately in Notes on Accounts. Contingent assets are not provided for or disclose.


Mar 31, 2012

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENT :

The financial statements have been prepared on accrual basis in accordance with accepted accounting standards, accepted accounting policies and applicable provisions of The Companies Act, 1956 based on historical cost convention except payment of bonus financial statement has been prepared and presented as per the requirement of revised Schedule VI as notified under the Companies Act 1956 with effect from current year. The adaption of revised Schedule VI does not have any impact on recognition and measurement principal as followed by the company.

1.2 USE OF ESTIMATES

The preparation of financial statement required judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities including contingent liabilities on the dates of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual reserves annd estimates are recognised in the period in which the results are known/ materialised.

1.3 REVENUE RECOGNITION :

Sale incomes accrued on passing of title of goods and other income and expenses are accounted for on accrual basis except mentioned above.Sales are net of excise duty and sales tax.

1.4 FIXED ASSETS AND DEPRECIATION :

i) Fixed Assets including incidental expenses thereto are stated at cost. All expenditures on extension of planting areas are capitalised.

ii) Depreciation has been accounted for on Written Down Value Method at the rates prescribed under Schedule XIV to the Companies Act, 1956.and on prorata basis in case of Addition / Deletion of Fixed Assets.

iii) Profit or loss on disposal of fixed assets are recognised in Profit & loss account

iv) An impairment loss is recognised where applicable when the carrying value of Fixed Assets exceeds its market value or value in use, whichever is higher

1.5 INVESTMENT :

i) Investments are valued at cost including cost of share transfer stamp.

ii) Investments those are short in nature taken under the head Current Assets as Current Investment. are valued at cost.

iii) Non Provision for diminution of market value of Investment if parmanent in nature, is to be accounted for in the accounts .

1.6 INVENTORIES:

i) Finished goods are valued at lower of cost or net realisable value .

ii) Stock of Tea is valued at lower of cost or net realisable value.

iii) Stores, Chemicals, Spares for Machinery, Green leaf are valued at cost.

iv) Stock of nursery in respect of own plants taken from the garden as well as the plants purchased have been valued at cost.

1.7 ACCOUNTING FOR FOREIGN CURRENCY TRANSACTIONS:

The Foreign Currency transactions are recorded on the basis of exchange rate prevailing at the time of the transactions. Differences in transactions due to exchange fluctuations are recognised in the Profit and Loss Account as and when it arises. Current Assets & Liabilities have been restated at the prevailing closing Bank rate of the financial year. and it's effect has been given in the account.

1.8 EMPLOYEE BENEFITS

i Employee benefits of short term natures are recognized as expenses as when it accures

ii) Employee benefits of long term natures are recognized as expenses based on actuarial valuation.

iii) Post employment benefits,

a in the nature of defined contribution plans are reconized as expenses as and when it accrues.

b in the nature of Defined benefits plans in respect of the employees on roll are reconized as expenses based on actuarial valuation

iv Actuarial gains and losses are recognized immediately in the profit and loss Account as income and expense

1.9 TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the year in accordance with the provisions of the Income Tax Act. 1961. Defferred tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consioderation of prudent, on timing difference, being the difference between taxable income and accounting income that originate in the year and are capable of reversal in one or more subsequent years

1.10 GOVERNMENT GRANTS

Grants from the Government are recognized on compliance of conditions and on reasonable assurance of the same being received, grants received from the Government agencies against specific fixed assets are adjusted to the cost of the assets and revenue grants are recognized as other income.

1.11 PROVISIONS AND CONTINGENT LIABILITIES

Provisions are recognized where reliable estimate can be made for probable outflow of resources to settle the present obligation as a result of past event and the same is reviewed at each Balance Sheet date. Contingent Liabilities are generally not provided for in the accounts and are shown separately in Notes on Accounts.


Mar 31, 2010

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENT:

The financial statements have been prepared on accrual basis in accordance with accepted accounting standards, accepted accounting policies and applicable provisions of The Companies Act, 1956 based on historical cost convention except payment of bonus.

1.2 REVENUE RECOGNmON:

Sale incomes accrued on passing of title of goods and other income and expenses are accounted for on accrual basis except mentioned above.Sales are net of excise duty and sales tax.

1.3 FIXED ASSETS AND DEPRECIATION:

a) Fixed Assets including incidental expenses thereto are stated at cost. All expenditures on extension of planting areas are capitalised.

b) Depreciation has been accounted for on Written Down Value Method at the rates prescribed under Schedule XIV to the Companies Act, 1956.and on prorata basis in case of Addition / Deletion of Fixed Assets.

c) Profit or loss on disposal of fixed assets are recognised in Profit & loss account.

d) An impairment loss is recognised where applicable when the carrying value of Fixed Assets exceeds its market value or value in use, whichever is higher.

1.4 INVESTMENT:

Investments are valued at cost including cost of share transfer stamp. Provision for diminution of market value of Investment if parmanent in nature, is to be accounted for in the accounts .

1.5 INVENTORIES:

a) . Finished goods are valued at lower of cost or net realisable value .

b) Stock of Tea is valued at lower of cost or net realisable value.

c) Stores, Chemicals, Spares for Machinery, Green leaf are valued at cost.

d) Stock of nursery in respect of own plants taken from the garden as well as the plants purchased have been valued at cost.

1.6 ACCOUNTING FOR FOREIGN CURRENCYTRANSACTK3NS:

The Foreign Currency transactions are recorded on the basis of exchange rate prevailing at the time of the transactions. Differences in transactions due to exchange fluctuations are recognised in the Profit and Loss Account as and when it arises. Current Assets & Liabilities have been restated at the prevailing closing Bank rate of the financial year, and its effect has been given in the account.

1.7 RETIREMENT BENEFfTS:

i Defined Contribution Plan

The Company makes defined contribution to Government recognised Provident & other funds which are recognised in the Profit & Loss account. The Companys contribution to the aforesaid Provident Fund was Rs 1975791/- (Previous Year Rs.1771237/-)

ii Defined Benefit Plan (funded)

The employees gratuity fund scheme managed by Life Insurance Corporation of India / Tata AIG life insurance company limited is a defined benefit plan. The Insurance Companies make payment to vested employees or their nominees upon retirement, death, incapacitation or cessation of employment subject to maximum of Rs.3.50 Lacs. Vesting occurs upon completion of five years of service.

iii Medical Insurance Premium Re-imbursement (unfunded)

The Company has a scheme of re-imbursement of medical expenses including medical insurance premium subject to a maximum of 5% of the Basic Salary to employees. The scheme is in the nature of Defined Benefit Plan.

iv Leave Encashment

As per the Company rules employees are entitled to get accumulated leave upto 30 days.which are encashed in the following year.An amount of Rs.272256/- accrued in this account as on 31/03/2010 has duly been provided.

1.8 Employees State Insurance

The company has paid Rs.70780/- to ESI upto 31/03/2010.which comprises of Rs.13450/- for the year 2007- 08.RS.35079/- for the year 2008-09 and balance of Rs.22251/- for the year 2009-10 of which Rs.7738/- is towards Employees Contribution and Rs.14513/-towards Employers contribution.

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