SIGNIFICANT ACCOUNTING POLICIES 1. Basis of Accounting: (a) GeneraI: The financial statements of the Company have been brpared 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 brpared on accrual basis under the historical cost convention. The accounting policies adopted in the brparation of the financial statements are consistent with those followed in the brvious year except for change in the accounting policy for debrciation. 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 debrciation and impairment losses, if any debrciation 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. Debrciable 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 brscribed in Schedule II to the Companies Act, 2013 (d) Debrciation i Debrciation has been provided on assets acquired and/or purchased prior to 01.04.87 on WDV method as per the useful life brscribed in schedule II of company’s Act, 2013. ii On assets acquired after 1.4.87 on SLM basis as per the useful life brscribed 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. 1 During the current financial year company has written off Rs 1,74,63,292.42 on a/c of DFIAwhich was receivable against the export made in earlier year but could not be claimed with the government authority due to non compliance of DGFT norms, statutory authority sanctioning the export benefit, DFIA etc. 2 There is a agriculture income Tax Demand of Rs. 6,79,380/- for the Asst.Year 2007-08 which has been disputed by the Company. 3 Pursuant to the transition provisions brscribed in Schedule Il to the Companies Act, 2013, the Company has fully debrciated the carrying value of the assets, net of residual value, where the remaining useful life of the asset was determined to be Nil as on 1 April, 2014, and has adjusted an amount of Rs.52,58,387/- against the opening surplus balance in the Statement of Profit and Loss under Reserves and Surplus. 4 Previous year figure has been regrouped or rearranged wherever it is required to be done. For SANJAY P AGARWAL & ASSOCIATES For and on behalf of the Board Chartered Accountants Firm Regn.No.325683E VIJAY KISHANLAL KEDIA Chairman (SANJAY AGARWAL) Partner Mem. No. 062218 PRINCE TULSIAN Managing Director SHAILESH BHASKAR Company Secretary Place: Kolkata Dated: 29th May, 2015 |