a) Basis of Preparation of Financial Statements
The financial statements are prepared under the historical cost
convention in accordance with generally accepted accounting principles
in India and the provisions of the Companies Act, 1956 as amended.
b) Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation. Cost
includes expenditure incurred in the acquisition and
construction/installation and other related expenses.
Depreciation on fixed assets has been provided on Straight Line Method
at the rates specified in Schedule XIV of the Companies Act, 1956.
Assets costing below Rs.5,000/- each are fully depreciated in the year
of addition. Lease-hold land is amortised over the effective period of
Long Term Investments are stated at cost. Diminution in value thereof
as determined which are not temporary in nature are adjusted therefrom
and charged to revenue. Current Investments are valued at cost or net
realizable value, whichever is lower.
Stores & Spare parts are valued at cost. Cost calculated on FIFO basis.
f) Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known / materialized.
g) Employee Benefits
Short term benefits are charged off at the undiscounted amount in the
year in which the related service is rendered. Liabilities in respect
of Defined Benefits plans namely retirement gratuities and encashment
of unavailed leave are unfunded and calculated by an independent
actuary at the year-end and provided for. Actuarial gains/ losses are
recognised in the statement.
h) Revenue Recognition
i) Profit/(Loss) on sale of investments is taken to Statement of Profit
ii) Dividend income is accounted for as and when right to receive
dividend is established.
iii) Interest Income is recognised on time proportion basis taking into
account the amount outstanding and rate applicable.
iv) Income arising on account of job work relating to packeting of Tea
is accounted as and when bills are raised on the party after completion
of the respective assignment.
i) Taxes on Income
i) Current Tax is determined in accordance with the provisions of
Income Tax Act, 1961.
ii) Deferred Tax has been recognised for all timing differences,
subject to consideration of prudence in respect of Deferred Tax Assets.
iii) Tax credit is recognised in respect of Minimum Alternate Tax (MAT)
as per the provisions of Section115JAA of the Income Tax Act, 1961
based on the convincing evidence that the Company will pay normal
Income-tax within statutory time frame and is reviewed at each Balance
Assets acquired on Finance Lease / Hire Charges are capitalised at the
fair value of the lease assets. Equated monthly payments are
apportioned between the finance charges and repayment of principal