1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENT :
The financial statements have been prepared on accrual basis in
accordance with accepted accounting standards, accepted accounting
policies and applicable provisions of The Companies Act, 1956 based on
historical cost convention except payment of bonus financial statement
has been prepared and presented as per the requirement of revised
Schedule VI as notified under the Companies Act 1956 with effect from
current year. The adaption of revised Schedule VI does not have any
impact on recognition and measurement principal as followed by the
1.2 USE OF ESTIMATES
The preparation of financial statement required judgements, estimates
and assumptions to be made that affect the reported amount of assets
and liabilities including contingent liabilities on the dates of the
financial statements and the reported amount of revenues and expenses
during the reporting period. Difference between actual reserves annd
estimates are recognised in the period in which the results are known/
1.3 REVENUE RECOGNITION :
Sale incomes accrued on passing of title of goods and other income and
expenses are accounted for on accrual basis except mentioned
above.Sales are net of excise duty and sales tax.
1.4 FIXED ASSETS AND DEPRECIATION :
i) Fixed Assets including incidental expenses thereto are stated at
cost. All expenditures on extension of planting areas are capitalised.
ii) Depreciation has been accounted for on Written Down Value Method at
the rates prescribed under Schedule XIV to the Companies Act, 1956.and
on prorata basis in case of Addition / Deletion of Fixed Assets.
iii) Profit or loss on disposal of fixed assets are recognised in
Profit & loss account
iv) An impairment loss is recognised where applicable when the carrying
value of Fixed Assets exceeds its market value or value in use,
whichever is higher
1.5 INVESTMENT :
i) Investments are valued at cost including cost of share transfer
ii) Investments those are short in nature taken under the head Current
Assets as Current Investment. are valued at cost.
iii) Non Provision for diminution of market value of Investment if
parmanent in nature, is to be accounted for in the accounts .
i) Finished goods are valued at lower of cost or net realisable value .
ii) Stock of Tea is valued at lower of cost or net realisable value.
iii) Stores, Chemicals, Spares for Machinery, Green leaf are valued at
iv) Stock of nursery in respect of own plants taken from the garden as
well as the plants purchased have been valued at cost.
1.7 ACCOUNTING FOR FOREIGN CURRENCY TRANSACTIONS:
The Foreign Currency transactions are recorded on the basis of exchange
rate prevailing at the time of the transactions. Differences in
transactions due to exchange fluctuations are recognised in the Profit
and Loss Account as and when it arises. Current Assets & Liabilities
have been restated at the prevailing closing Bank rate of the financial
year. and it''s effect has been given in the account.
1.8 EMPLOYEE BENEFITS
i Employee benefits of short term natures are recognized as expenses as
when it accures
ii) Employee benefits of long term natures are recognized as expenses
based on actuarial valuation.
iii) Post employment benefits,
a in the nature of defined contribution plans are reconized as expenses
as and when it accrues.
b in the nature of Defined benefits plans in respect of the employees
on roll are reconized as expenses based on actuarial valuation
iv Actuarial gains and losses are recognized immediately in the profit
and loss Account as income and expense
1.9 TAXES ON INCOME
Current tax is determined as the amount of tax payable in respect of
taxable income for the year in accordance with the provisions of the
Income Tax Act. 1961. Defferred tax liabilities and assets are
recognized at substantively enacted tax rates, subject to the
consioderation of prudent, on timing difference, being the difference
between taxable income and accounting income that originate in the year
and are capable of reversal in one or more subsequent years
1.10 GOVERNMENT GRANTS
Grants from the Government are recognized on compliance of conditions
and on reasonable assurance of the same being received, grants received
from the Government agencies against specific fixed assets are adjusted
to the cost of the assets and revenue grants are recognized as other
1.11 PROVISIONS AND CONTINGENT LIABILITIES
Provisions are recognized where reliable estimate can be made for
probable outflow of resources to settle the present obligation as a
result of past event and the same is reviewed at each Balance Sheet
date. Contingent Liabilities are generally not provided for in the
accounts and are shown separately in Notes on Accounts.