1. CORPORATE SOCIAL RESPONSIBILITY
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
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
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
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.