1.1 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
Sharehoders are eligible to receive the remaining assets of the Company
after distribution of all preferential amounts, in proportion to their
2.1 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 (Utilised) Reserve are transferred from Pre-Merger
3.3 Dividend Distribution Tax on Proposed Dividend for the year ended
31st December, 2013 includes Rs. 667,440 pertaining to 2012
4.1 Working Capital Loans and Packing Credit Facilities are secured by
equitable mortgage by deposit of title deeds of the Company''s Tea
Estates and hypothecation of entire tea crop and other produces 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.
5.1 Trade Payables include Rs. 381,552 (2013 - Rs. 410,081) due to
Micro & Small Enterprises as defined in the Micro, Small and Medium
Enterprises Development Act, 2006, based on information available with
Rs. 1,23,134 represents interest accrued on amount outstanding as at
the year end and remaining unpaid.
6.1 There is no amount due and outstanding to be credited to Investor
Education and Protection Fund as at 31st December 2014
As at As at
December 31,2014 December 31,2013
7 CONTINGENT LIABILITIES
(To the extent not provided for)
Claims against the Company
not acknowledged as Debts:
Income Tax Matters (without
considering concomitant liability
in respect of Agricultural Income Tax) 56,282,212 90,569,279
Central Excise Matters 12,934,600 -
Sales Tax Matters 1,502,235 3,484,438
Disputed Claims 2,516,000 2,516,000
Future cash flows if any, in respect of above cannot be determined at
8 COMMITMENTS (To the extent not provided for)
Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs. 15,909,800 (2013 - Rs. 22,458,655)
8.1 Research and Development Expenditure charged to Revenue Rs.
13,403,450 (2013 - Rs. 14,895,338)
9 The Company has taken various premises under operating lease having
tenure of 11 months to 72 months. There is no specific obligation for
renewal of these agreements. Lease rent for the year amounts to Rs.
18,914,272 (2013 - Rs. 16,571,918) This includes lease arrangements
with escalation clauses of 5% to 10% at the end of each year.
10 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.
11 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
year ended 31st December, 2014 which extends over two assessment years,
Assessment Year 2014-2015 and Assessment Year 2015-2016. The ultimate
tax liability for the Assessment Year 2015- 2016 will be determined on
the total income for the period from 1st April, 2014 to 31st March,
12. 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.
124,042,025 (2013 - Rs. 124,024,445) 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.
Experience Gain/(Loss) adjustments on plan assets related to Gratuity
Scheme for 2014 and the preceeding three years are Rs. 29,44,000; Rs.
1,212,000; Rs. 4017000 and Rs. (144,000) respectively
Experience Gain/(Loss) adjustments on plan liabilities related to
Gratuity Scheme for 2014 and the preceeding three years are
Rs. (49,562,000) Rs. 6,618,000; Rs. (6,577,000) and Rs. (78,761,000)
Effect of increase/ decrease of one percentage point in the assumed
medical cost trend rates:
As per Actuary, the cost trend in rates in case of medical benefits
have no effect on the amount recognised since the benefit is in the
form of a fixed amount.
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
The contribution expected to be made by the Company for the year ended
31st December 2015 has not been ascertained.
13 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
Fellow Subsidiary Companies:
Stewart Holl (India) Limited Amgoorie India Limited
Koomber Properties & Leasing Company Private Limited Goodricke
Technical & Management Services Limited Borbam Investments Limited
Koomber Tea Company Private Limited Lebong Investments Private Limited
c) Key Management Personnel:
A.N.Singh-Managing Director & CEO
14 Earning Per Equity Share (Basic and Diluted)
The calculation of earning per share is based on the Profit after
taxation of Rs. 222,386,927 (2013 - Rs. 333,568,696) and Equity Shares
outstanding (Nominal value Rs. 10/- each) during the year aggregating
to 21,600,000 (2013 - 21,600,000).
15 The Company has reclassified previous years figure to conform to
this years classification alongwith other regrouping/ rearrangement
wherever considered necessary.