1. Contingent liabilities not provided for in respect of:
a) Income Tax matters under appeal (without
considering concomitant liability
in respect of Agricultural Income Tax) 98,435 64,727
b) Disputed Claims 2,516 2,556
c) Sales Tax Matters 1,502 1,502
Future cash outflow if any, in respect
of above cannot be determined at this stage.
2. Estimated amount of contracts to be executed on Capital Account and
not provided for Rs.53,496 (2010 - Rs.22,379)..
3. Consequent upon the vesting of the Indian undertakings on 1st
January, 1978 of the eight Sterling Companies 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.
4. 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, 2011 which extends over two assessment
years, Assessment Year 2011-2012 and Assessment Year 2012-2013. The
ultimate tax liability for the Assessment Year 2012- 2013 will be
determined on the total income for the period from 1st April, 2011 to
31st March, 2012.
5. Research & Development expenses charged to revenue Rs.12,394 ( 2010
- Rs. 6,079).
6. The Company has taken various premises under operating lease having
tenure of 11 months/3 years. There is no specific obligation for
renewal of these agreements. Lease rent for the year amounts to
Rs.9,583 (2010 - Rs.2,799) This includes lease arrangements with
escalation clauses of 5% to 10% at the end of each year.
7. An inspection u/s 209A of the Companies Act, 1956 (Act) was carried
out by the office of the Regional Director (E.R.), Ministry of
Corporate Affairs in the year 2009 and 2010, pursuant to which show
cause notices were issued alleging violation of various provisions of
the Act. The Directors of the Company filed a petition u/s 633(2) of
the Act being CP No.556 of 2010 before the High Court at Kolkata. It
was interalia alleged in the notices that the Company has violated the
provisions of section 269 and section 309 of the Act.
The Hon''ble Court, vide its order dated 19th December 2011, dropped the
aforesaid charge levelled against the Company and directed the RoC not
to launch any proceedings in this regard on the Company agreeing before
the Hon''ble Court to disclose in the next Annual Accounts the
information that in 2004 and 2006 the wife of the former Managing
Director of the Company accompanied him in course of foreign visits
which were necessary for the purpose of promoting the Company''s
All the other charges against the Company by the aforesaid show cause
notices were also dropped by the Hon''ble Court and the Registrar of
Companies was directed not to institute any proceedings in respect of
any of the matters covered in the aforesaid show cause notices.
Pursuant to the said order dated 19th December 2011, members are hereby
informed that the wife of Mr.K.S.David, the erstwhile Managing Director
of the Company, travelled together to UK and USA for promoting the
Company''s business overseas and for such purposes the Company had
incurred for both expenses of Rs.1.15 Million in 2004 and Rs.1.19
Million in 2006.
A copy of the order passed by Hon''ble Judge dated 19th December 2011 is
available for inspection at the Registered Office of the Company.
** Being raw materials harvested in the Company''s own estates as
agricultural produce involving integrated activities of nursery,
cultivation, growth etc. and utilised in the manufacture of tea and
their values at the intermediate stage could not be ascertained.
8. There are no Micro, Small and Medium Enterprises, as required to
be disclosed under The Micro, Small and Medium Enterprises Development
Act, 2006 identified by the company on the basis of information
available with the company.
9. Selling Expenses in schedule 16 include Brokerage Rs. 54,512 (2010
- Rs.43,918), Commission Rs. 5,919 (2010 - Rs. 15,641), Insurance Rs.
8,699 (2010 - Rs.3,430), Shipping and Other Charges Rs. 34,083 (2010 -
Rs. 23,895), Sales Promotion Rs.170,251 (2010 - Rs. 134,341) and
Freight Rs.90,499 (2010 - Rs. 65,882).
10. Earning Per Equity Share (Basic and Diluted)
The calculation of earning per share is based on the Profit after
taxation of Rs. 374,245/- (2010 - Rs.449,967) and Equity Shares
outstanding (Nominal value Rs. 10/- each) during the year aggregating
to 21,600,000 (2010 - 21,600,000).
i) The Company is engaged in the business of cultivation, manufacture
and sale of Tea. The products and their applications are homogeneous in
nature. The segments are classified as Exports and Domestic.
ii) The Segment wise Revenue, results, assets and liabilities figures
relate to the respective amounts directly identifiable to each of the
segments. Unallocable income / expenditure relate to the Company as a
whole and are earned / incurred at the corporate level.
iii) Pricing of inter segment transfers is based on benchmark market
11. As at 31st December, 2011 the company had net outstanding foreign
currency exposures of Rs.289,691 (USD equivalent 5,445) (2010 - Rs.
54,316 ; USD equivalent 1,205) of which Rs.74,395 (USD equivalent 1,398
(2010 - Rs.44,729 USD equivalent 992) has been covered by forward
12. 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 year : 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, Eastern
Produce Malawi Ltd, Linton Park Plc.
13. 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.105,582 (2010 - Rs.103,328) 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 2011 and the preceding three years are Rs.(144); Rs.3,928;
Rs.(1,013) and Rs.1,824 respectively
Experience Gain/(Loss) adjustments on plan liabilities related to
Gratuity Scheme for 2011 and the preceding three years are
Rs.(78,761); Rs.14,726;Rs.(17,011) and Rs.39,940 respectively
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 2012 has not been ascertained.
14. Previous year''s figures have been regrouped and / or rearranged