The Directors present the Twenty Second Annual Report together with
the Audited Accounts for the Financial Year ended 31st March, 2012.
(Rupees In ''000)
FINANCIAL RESULTS Current Previous
Profit(Loss) before Depreciation,
Amortisation and Tax 10,803 10,044
Less: Depreciation 3,164 2,970
Profit(Loss) before tax 7,639 7,074
Add: Provision of Deferred Tax Charge/
(Credit) 1,388 1.857
Profit(Loss) after tax 6,251 5,217
Add: Balance brought forward from previous
year 11,400 13,183
Surplus available for Appropriation 17,651 18,400
Less : Deffered Tax Charge for the earlier
years 6,514 -
Transferred to General Reserve - 7,000
Balance carried to balance sheet 11,137 11,400
Your Directors do not recommend any dividend for the year, with a view
to conserve resources.
OPERATIONS & PROSPECTS
Tea production of Norben and tea prices both have remained stable in
2011 -12. In the current season tea prices have opened high but crop is
lower than last year.
New tea areas have started to come into production at Norben.
Biotechnological Studies in tea for Demonstration of New Tea Plant
Genotypes in our site at Jalpaiguri is continuing and progressing well.
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company Mr.D. N. Thakur, retires by
rotation at the ensuing Annual General Meeting and being eligible offer
himself for re-appointment.
Mr. Somnath Sen, Director of the Company has died on 12th May, 2012.
The Directors wish to place on record their appreciation for the
guidance and services rendered by Late Somnath Sen. The Company stands
by his family and extends condolences to them in their grief.
DIRECTORS'' RESPONSIBILITY STATEMENT
In accordance with the provisions of the Section 217(2AA) of the
Companies Act, 1956, your Directors have to state and confirm that:
1. Applicable accounting standards have been followed in the
preparation of the Annual Accounts for the year ended 31st March, 2012
with proper explanation relating to material departures.
2. Accounting policies have been selected and applied consistently and
judgements and estimates which are reasonable and prudent have been
applied so as to give a true and fair view of the state of affairs of
the Company in respect of the year ended 31st March, 2012 and of the
profit of the company for that period.
3. Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
4. Annual Accounts for the year ended 31st March, 2012 have been
prepared on the basis of going concern concept.
Report on Corporate Governance forms part of this report and as marked
as Annexure ''A''.
MANAGEMENT DISCUSSION AND ANALYSIS a) Industry Structure & Developments
India, world''s largest black tea producer, produced approximately 988
million kgs. during calendar year 2011. Black tea production by other
main tea producers during 2011 was Kenya (378 million kgs.), Sri Lanka
(328 million kgs.), other African countries ( 191 million kgs), Vietnam
(178 million kgs.), Indonesia (68 million kgs.) and Bangladesh (59
b) Opportunities, Threats, Risks & Concerns
Because of the very small size of production the Company''s teas are
readily accepted in niche market for NORBEN created over the years.
All the plantations of Norben are of high yielding clones producing
bright liquoring teas.
The age of the plantations is very young and provides a great advantage
in terms of cost due to less disease and low maintenance cost due to
vigorous health of the bush.
The Company has in place systems of Internal Control commensurate with
the size of the Company and the nature of its business, which ensures
that transactions are recorded, authorized and reported correctly apart
from safeguarding its assets against loss from wastage, unauthorized
use and removal.
The Internal Control System is supplemented by documented policies,
guidelines and procedures and an extensive programme of review carried
out by the Company''s Management cum Internal Audit function which
submits detailed reports periodically to the management.
Tea continues to enjoy the status of being the most popular beverage in
The Tea Industry is largely dependent on the vagaries of nature. The
Industry is highly labour intensive and is subject to stringent labour
laws. Comperatively high labour costs, high social cost over most other
tea producing countries, high infrastructure costs and the increasing
energy and other input costs remain the major problems for the Indian
Shortage of labour during peak season is also a cause for concern.
These problems need to be addressed by improved productivity and energy
conservation. The Tea Industry both in Assam and in West Bengal have
discussed with the Trade Unions and implemented productivity linked
wages for the tea workers with a view to regain the Industry''s
competitiveness in the global market.
The Special Purpose Tea Fund (SPTF) has been set up by Commerce
Ministry to implement uprooting and replanting programme which would
help improvement in the productivity and yield thereby reduce cost in
the coming years.
The small tea growers and bought leaf factories form a considerable
part of the Industry. A recent compilation of figures shows a total
production of around 100 million kgs through these bought leaf
factories in North India. There is a need to regulate these factories
to maintain the quality. The Industry is also subject to taxation from
the state Government as well as Central Government and while the level
of direct taxes have come down over a period, some of the State levies
like cess on green leaf and substantial increase in Land Revenue
Charges put the industry at a very disadvantageous position.
c) Cautionary Statement
Statements in the Management Discussions and Analysis Report in regard
to projections, estimates and expectations have been made in good
faith. Many unforeseen (actors may come into play and affect the actual
results, which could be different from what the Directors envisage in
terms of future performance and outlook. Market data and product
information contained in this Report have been based on information
gathered from various published and unpublished reports, and their
accuracy, reliability and completeness cannot be assured.
Messers Goenka Shaw & Co., Chartered Accountants, the Statutory
Auditors of the Company retire at the forthcoming Annual General
Meeting and are eligible for re-appointment.
The report of the Auditors in respect of the accounts for the year
ended 31st March, 2012 is self explanatory and has been also explained
in the Notes on Financial Statements.
PARTICULARS OF EMPLOYEES
As on March 31, 2012 the Company did not have any employee in the
category specified in Section 217(2A) of the Companies Act, 1956, read
with the Companies (Particulars of Employees) Rules, 1975.
CONSERVATION OF ENERGY, ABSORPTION OF TECHNOLOGY, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The Statement pursuant to Section 217(1)(e) of the Companies Act, 1956
read with companies (Disclosure of Particulars in the Report of Board
of Directors) Rules, 1988, is given in the annexure forming part of
The Directors wish to place on record their appreciation for the
support received from the Local Gram Panchayat, Government Departments
and other Agencies & Banks.
Regd.Office : By Order of the Board
OCTAVIUS CENTRE For NORBEN TEA & EXPORTS LTD.
15B,Hemanta Basu Sarani,
Date : 30th May, 2012 (Chairman & Mg.Director)