1. Basis of Presentation
The accounts have been prepared using historical cost convention and on
the basis of going concern concept. Accounting policies not referred to
otherwise are consistent with generally accepted accounting policies.
2. Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation. Cost
includes cost of acquisition and all direct expenses relating thereto.
Depreciation on Fixed Assets are provided on the basis of Straight Line
Method and at the rates specified in Schedule XIV to the Companies Act,
Current investments are carried at lower of cost and quoted value. Long
Term Investments are stated at cost.Provision for diminution in the
value of long term investments is made only if such a decline is other
Inventories are valued at lower of cost or net value since
realized/estimated net realizable value.
6. Recognition of Revenue
i) Sales represent invoice value of goods sold and are exclusive of
Sales Tax but inclusive of discount, rebate and all incidental expenses
ii) Income & Expenditure are recognized on accrual basis, except rates
and taxes and certain petty items which can not be estimated with
7. Borrowing Cost
Interest and other costs on borrowed funds used to finance the
acquisition of fixed assets, upto the date the assets are ready for use
are capitalised under respective fixed assets on a rational basis.
Other interest and costs incurred on borrowed funds are recognized as
expenses in the year in which they are incurred.
8. Excise Duty and Cess
Excise Duty payable on Black Tea has been accounted for on the basis of
both, payments made in respect of tea cleared from factory and also
provision made for tea made lying at factory.
9. Accounting for Taxes on Income
Current tax is recognized as per Income Tax Act, 1961 based on
applicable tax rates & laws. Deferred Tax is recognized subject to
consideration of prudence on timing differences being differences
between taxable and accounting income/expenditure that originate in one
period and are capable of reversal in one or more subsequent period(s)
and is measured using tax rates and laws that have been - enacted or
substantially enacted as at the balance sheet date. Deferred Tax assets
are recognized unless there is virtual certainty that sufficient future
taxable income will be available against which such Deferred Tax assets
will be realized.
10. Employee Benefits
i) Short-term Employee Benefits
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees is recognized
during the period when the employee renders the service except leave
Leave Encashment: For Internal control, leave as per management''s
policy is not to be accumulated but availed of and the employees have
been advised to plan their leave in advance while in service and
immediately before superannuation. Leave not availed is not encashable.
ii) Post employment benefits plans
Contribution under defined contribution plans payable in keeping with
the related schemes are recognized as expenses for the year. For
defined benefit plans, the cost of providing benefit is recognized as
and when paid.
iii) Other long-term employment benefits (Unfunded)
The cost of providing long-term employees benefits is generally
recognised on cash basis.
11. Government Grants
Remission of Sales Tax Under State Incentive Scheme, had been credited
Government grants related to revenue are recognized on a systematic
basis in the profit & loss account over the periods necessary to match
them with their related cost.
The Department of Biotechnology, Government of West Bengal has
sanctioned Project for Biotechnological Studies in tea for
Demonstration of New Tea Plants Genotypes in our site at Jalpaiguri
An Asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss Account in the year in which an asset is identified as
impaired .The impairment loss is recognised in prior accounting period
is reversed if there has been a change in the estimate of recoverable
13. Contingent liabilities
Provision of contingent liabilities are not made, unless & until the
demand raised by statutory authorities, against which the company has
preferred an appeal which is pending with the different forum of the
said authorities are ascertained.