1. Basis of Accounting:
The Financial Statements have been prepared under the Historical Cost
Convention on the basis of Going Concern Concept in accordance with the
generally accepted accounting principles and the provisions of the
Companies Act, 1956 as adopted consistently.
(b) Revenue Items:
Items of incomes and Expenses are accounted for on the Accrual Basis,
unless otherwise specifically stated hereunder in this Schedule
(c) Fixed assets
Fixed assets are carried at cost of acquisition and / or revalued
figures less depreciation.The cost of extension of Planting cultivable
Land including cost of development is capitalized.
i Depreciation has been provided on assets acquired and/or purchased
prior to 01.04.87 on WDV method as per the WDV rates under Schedule XIV
of the Companies Act,(as amended) 1956
ii On assets acquired after 1.4.87 on SLM basis as per the SLM rates
prescribed under Schedule XIV of the Companies Act, (as amended) 1956.
iii Depreciation for the 6 months period includes depreciation on
revalued items of Fixed Assets amounting to Rs.69,321.96 and
accordingly an equivalent amount has been transferred to Profit & Loss
Account from Revaluation Reserve Account.
Investments have been stated at cost.
(f) Stock In Trade:
Inventories are valued at as under:
i Stores and Spare Parts-At Cost
ii Stock of unsold Tea-At Estimated net realizable value
iii Stock of Nursery Plants-At Estimated net relizable value
Current Tax is determined on the basis of the amount of tax payable
under the Income Tax Act, 1961 if any. Deferred tax liability is
recognised and carried forward and there is reasonable certainty that
sufficient taxable income will be available against which such deferred
tax liability can be adjusted.
(h) Contingent Liabilities;
Contingent Liabilities, if any not provided for are disclosed by way of
Notes on Accounts.