Goodricke is engaged in the manufacture and cultivation of tea. The Company owns 17 tea estates spread
across West Bengal and Assam and sells bulk tea both in domestic and international markets. The Company also
produces Instant Tea at its plant located in Dooars, West Bengal primarily for the international market and
has got a strong presence in Packet Tea domestic market through its various Brands. The Company is a public
listed company and is listed on the Bombay Stock Exchange (BSE).
1 SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared in accordance with the generally accepted accounting
principles in India under the historical cost convention on accrual basis. These financial statements have
been prepared to comply in all material aspects with the accounting standards prescribed under Section 133 of
the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.
1.2 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
All assets and liabilities have been classified as current or noncurrent as per the Company’s
normal operating cycle and other criteria set out in the Schedule III to the Companies Act 2013. The Company
has ascertained its operating cycle as twelve months for the purpose of current and noncurrent classification
of assets and liabilities.
1.3 FIXED ASSETS
Fixed assets are stated at cost of acquisition together with any incidental expenses of acquisition.
All expenditure incurred for extension of new areas of cultivation are capitalized. However, cost of
upkeep and maintenance and cost of replanting in existing areas are charged to revenue.
Subsidies from Government in respect of fixed assets are deducted from the cost of respective assets.
Profit or Loss on disposal of Fixed Assets is recognized in the Statement of Profit and Loss.
Cost of software is capitalized where it is expected to provide future enduring economic benefits.
Capitalization costs include license fees and cost of implementation / system integration services. The costs
are capitalized in the year in which the relevant software is implemented for use. Expenses incurred on up
gradation / enhancements are charged off as revenue expenditure unless they bring similar significant
1.3.3 DEPRECIATION AND AMMORTISATION
Depreciation on assets till 31st December, 2014 was provided on written down value method. With Effect
from 1st January, 2015 the Company has changed the method of depreciation to Straight Line Method to align
with the industry practice. Depreciation on Straight Line method is provided on book value of tangible fixed
assets(Other than Estate Development and livestock) in the manner and on the basis of useful life prescribed
in Schedule II to the Companies Act 2013, which are also supported by technical evaluation. Items of Fixed
Assets for which related actual cost do not exceed Rs.5000 are fully depreciated in the year of purchase.
Leasehold land is amortized over the period of lease. Estate Development is not depreciated. Livestock is
expensed over its useful life.
Capitalized software costs are amortized on a straight line basis over a period of five years.
1.3.4 IMPAIRMENT OF FIXED ASSETS
An impairment loss is recognized where applicable, when the carrying value of the fixed assets of a cash
generating unit exceeds its net selling price or value in use, whichever is higher.
Long Term Investments are stated at cost and where applicable, provision is made in case of other than
temporary diminution in value of investments. Current investments are stated at lower of cost or fair
Inventories are valued at lower of cost and net realizable value. Cost is determined on weighted average
basis. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to
their location and condition and includes appropriate overheads. Provision is made for obsolete and slow
moving stocks where necessary.
1.6 RESEARCH AND DEVELOPMENT
Research and Development Expenditure of revenue nature is charged to the Statement of Profit and Loss and
capital expenditure is treated as fixed assets.
1.7 RETIREMENT BENEFITS
The Company operates defined contribution schemes like Provident Fund and defined Contribution Pension
Schemes. The Company makes regular contribution to provident funds which are fully funded and administered by
Government and are independent of Company’s finance. Contributions are recognized in Statement of Profit
and Loss on an accrual basis. The Company operates a non contributory defined contribution pension scheme for
certain employees. The Company contributes 15% of the employees’ current salary to the above
contribution fund which is recognized in the Statement of Profit and Loss.
The Company also operates defined benefit Provident Fund Schemes for certain employees which are fully
funded and administered by trustees and are independent of the Company’s finance. The Company makes
regular contributions to the fund and shortfall if any, determined by annual actuarial valuation, is
recognized in the Statement of Profit and Loss. Defined Benefit Gratuity Plan is maintained by the company
for all its eligible employees. The Company also operates a Non Contributory Defined Benefit Pension Scheme
for certain employees. The Company contributes to such funds on the basis of actuarial valuation at the end
of each year after setting off any net asset in respect of either fund. Both the Pension Fund and gratuity
fund are administered by the Trustees and is independent of the Company’s finance.
For Schemes where recognized funds have been set up annual contributions determined as payable in the
actuarial valuation report are contributed. Actuarial gains & losses are recognized in the Statement of
Profit and Loss.
Post retirement medical benefits are provided by the Company for certain category of employees. Liability
is determined through independent year end actuarial valuation and is recognized in the Statement of Profit
Provision is made for retirement leave encashment benefit payable to employees on the basis of
independent actuarial valuation, at the end of each year and charge is recognized in the Statement of Profit
Sales represent the invoiced value of goods supplied less Sales Tax / Value Added Tax.
1.9 INCOME FROM INVESTMENTS
Income from investments is included together with the related tax credit in the Statement of Profit and
1.10 REPLANTING AND OTHER SUBSIDIES
Replanting and other subsidies of revenue nature are recognized as income in the Statement of Profit and
1.11 FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currencies are recorded in rupees by applying the exchange rate prevailing on the
date of transaction. Transactions remaining unsettled are translated at the rate of exchange ruling at the end
of the year. Exchange gain or loss arising on settlement/translation is recognized in the Statement of Profit
Premium or discount on forward contracts is amortized as expense or income over the life of the contract.
Foreign exchange forward contracts are revalued at the balance sheet date and the exchange difference is
recognized as gain/loss in the Statement of Profit and Loss. Profit or Loss on cancellations/renewals of
forward contracts is recognized in the Statement of Profit and Loss.
1.12 TAXES ON INCOME
Current tax represents the amount computed as per prevailing taxation laws under the Income Tax Act,
1961. Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the
difference between taxable incomes and accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred Tax assets have been recognized where there is
reasonable certainty that sufficient future taxable income will be available against which such deferred tax
assets can be realized.
1.13 BORROWING COSTS
Borrowing cost attributable to acquisition and/or construction of qualifying assets are capitalized as a
part of the cost of such assets up to the date when such assets are ready for intended use. Other borrowing
costs are charged to Statement of Profit and Loss.
Lease Payments under the Operating Lease are recognized as an expense in the Statement of Profit and
Loss, on a straight line basis over the lease term.
1.15 PROVISIONS AND CONTINGENT LIABILITIES
Provisions are recognized when there is a present obligation as a result of a past event, 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 best estimate of the
expenditure required to settle the present obligation at the Balance sheet date and are not discounted to its
Contingent liabilities are disclosed 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, is termed as a contingent liability.
1.16 USE OF ESTIMATES
The preparation of financial statements in conformity with Indian GAAP requires the management to make
judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these
estimates are based on the management’s best knowledge of current events and actions, uncertainty about
these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying
amounts of assets or liabilities in the future periods. Any revision to accounting estimates is recognized
prospectively in the current and future periods.
1.17 EARNING PER SHARE
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to
equity shareholders by the weighted average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period and for all periods presented is
adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have
changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose
of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period is adjusted for the
effects of all dilutive potential equity shares.
1.18 CASH & CASH EQUIVALENT
Cash & Cash Equivalents include cash in hand, demand deposits with banks and other short term highly
liquid investments with original maturities of three months or less.
1.19 SEGMENT REPORTING
The Company is engaged in the business of cultivation, manufacture and sale of Tea which is the sole
Primary business segment. The products and their applications are homogeneous in nature. The secondary
segments are classified as Exports and Domestic. The Segment wise Revenue, results, assets and liabilities
figures relate to the respective amounts directly identifiable to each of the segments. Unallowable income /
expenditure relate to the Company as a whole and are earned / incurred at the corporate level. Pricing of
inter segment transfers is based on benchmark market price.
2.3 Rights, Preferences and Restrictions attached to Shares
The Company has only one class of shares referred to as Equity shares having a par value of Rs.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.
2.4 There is no movement of Share Capital during the year.
3.1 Capital Reserve includes Rs.3,883,676/- pre-acquisition profit
3.2 Development Rebate Reserve, Development Allowance Reserve and Investment Allowance (Utilized)
Reserve are transferred from Pre-Merger Reserves.
6.1 Working Capital Loans are secured by equitable mortgage by deposit of title deeds of the
Company’s Tea Estates and hypothecation of entire tea crop and other producers of Tea Estates as well
as stocks of tea manufactured or in process and book debts, and entire movable plant and machinery, tools and
accessories and other movable fixed assets both present and future.
8.1 There is no amount due and outstanding to be credited to Investor Education and Protection Fund as at
31st March, 2016