SENSEX NIFTY India | Notes to Account > Plantations - Tea & Coffee > Notes to Account from Goodricke Group - BSE: 500166, NSE: GOODRICKE

Goodricke Group

BSE: 500166|NSE: GOODRICKE|ISIN: INE300A01016|SECTOR: Plantations - Tea & Coffee
Feb 20, 16:00
6.95 (2.4%)
VOLUME 70,187
Goodricke Group is not traded in the last 30 days
« Dec 14
Notes to Accounts Year End : Mar '16


As per Section 135 of the Companies Act, 2013 the Company needs to spend at least 2% of the average net profit earned during the immediately preceding 3 years on CSR activities. The areas for CSR activities identified by the Company are special education for differently abled children, solar project, vocational training for livelihood and environment sustainability.

(a) Gross amount required to be spent by the Company is Rs. 7,040,403

(b) Amount spent during the period on

2. The Company has taken various premises under operating lease having tenure of 11 months to 6 years. There is no specific obligation for renewal of these agreements. Lease rent for the period amounts to Rs.26,545,633 (2014 - Rs.18,914,272) This includes lease arrangements with escalation clauses of 5% to 10% at the end of each year.

The Company has initiated the process of identification of suppliers registered under Micro and Small Enterprise Development Act, 2006 by obtaining confirmation from the suppliers. The information shown above is only to the extent of information obtained by the Company.

3. Post Retirement Employee Benefits

The Company operates defined contribution schemes like provident fund and defined contribution pension schemes. For these schemes, contributions are made by the Company, based on current salaries, to recognized funds maintained by the Company and for certain employees contributions are made to State Plans. In case of Provident fund schemes, contributions are also made by the employees. An amount of Rs. 187,905,629 (2014 - Rs.124,042,025) has been charged to the Profit & Loss Account on account of defined contribution schemes. The Company also operates defined benefit gratuity scheme, leave encashment, defined benefit pension scheme, defined benefit provident fund scheme and post retirement medical scheme. The pension benefits, medical benefits and leave encashment benefits are restricted to certain categories of employees. These schemes offer specified benefits to the employees on retirement. Annual actuarial valuations are carried out by an independent actuary in compliance with Accounting Standard 15 (revised 2005) on Employee Benefits. Wherever recognized funds have been set up, annual contributions are made by the Company, as required. Employees are not required to make any contribution.

Net Liability /(Asset) as per Actuarial Valuation at period/year end:

The estimates of future salary increase considered in the actuarial valuation takes into account factors like inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market. The expected return on plan assets is based on actuarial expectation of the average long term rate of return expected on investments of the Funds during the estimated term of the obligations.

The contribution expected to be made by the Company for the year ended 31st March 2017 has not been ascertained.

4. Related Party Disclosures

a) Shareholders of the Company:

Western Dooars Investment Ltd. and Assam Dooars Investment Ltd. together hold 74% of the Equity Share Capital of the Company. Camellia Plc is the ultimate holding company which is indirectly holding Western Dooars Investment Ltd. and Assam Dooars Investment Ltd.

b) Other related parties with whom transactions have taken place during the period:

Fellow Subsidiary Companies:

(i) Stewart Holl (India) Limited (ii) Amgoorie India Limited (iii) Koomber Properties & Leasing Company Private Limited (iv) Goodricke Technical & Management Services Limited (v) Borbam Investments Limited (vi) Koomber Tea Company Private Limited (vii) Lebong Investments Private Limited (viii) Elgin Investments & Trading Company Limited

c) Key Managerial Personnel:

Arun Narain Singh - Managing Director & CEO

Arjun Sengupta- VP & CFO

Subrata Banerjee- Company Secretary

5. Consequent upon the vesting of the Indian undertakings on 1st January 1978 of the eight Sterling Company’s under the scheme of amalgamation, the title in respect of certain tea estates acquired under such scheme, are to be transferred in the name of the Company. The Company has been legally advised that the notification issued by the Government of West Bengal in 1994 for payment of salami does not apply to the Company.

6 Provision for taxation has been made as per the Income Tax Act, 1961 and the rules framed there under with reference to the profit for the 15 months period ded 31st March, 2016 which extends over two assessment years, Assessment Year 2015-2016 and Assessment Year 2016-2017. The ultimate tax liability for the Assessment Year 20162017 will be determined on the total income for the period from 1st April, 2015 to 31st March, 2016.

7 Earning Per Equity Share (Basic and Diluted)

The calculation of earnings per share is based on the Profit after taxation of Rs. -128,900,610 (2014 - Rs.222,386,927) and Equity Shares outstanding (Nominal value Rs. 10/- each) during the period aggregating to 21,600,000 (2014 -21,600,000).

8 To align with the provisions of Section 2 (41) of Companies Act, 2013, the company has decided to prepare Financial Statements for a period of 15 months commencing from 1st January 2015. Therefore, the results of previous year are not comparable with that of the current period.

9 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 and the net surplus arising due to retrospective computation aggregates to Rs.419,772,448. Consequent to the change in estimated useful life as per the provisions of Schedule II to the Companies Act 2013, the charge on account of change in estimates aggregates to Rs.49,392,906 These items have been accounted and disclosed under exceptional items. As a result of the change in method of depreciation, the charge for the fifteen months period ended 31st March 2016 was lower by Rs.39,803,010 and the charge on account of change in accounting estimates was higher by Rs.66,221,739. The impact of such change on the future profits of the Company is not ascertainable at this stage.

10 Stock of teas as on 31st March 2016 has been valued at lower of the cost of production (based upon expenditure for the 12 months period ending 31st March 2016) and the net realizable value. Production of tea not being uniform throughout the year, stock valuation would be unrealistic if it is based on actual expenditure incurred during 15 months period ended 31st March 2016.

11. The Company has reclassified previous year’s figure to conform to this period classification along with other regrouping/rearrangement wherever considered necessary.


Source : Dion Global Solutions Limited
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