Note No. 1
SIGNIFICANT JUDGEMENTS & ESTIMATES Estimates
As per para 14 of Ind AS 101, an entity's estimates in accordance with Ind AS at the date of transition to Ind AS at the end of the comparative period presented in the entity's first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, th e estimates should be adjusted to reflect any differences in accounting policies.
As per para 16 of the standard, where application of Ind AS requires an entity to make certain estimates that were not required under previous GAAP those estimates should be made to reflect conditions that existed at the date of transition or at the end of the comparative period.
The Company's estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the financial statement that were not required under the previous GAAP are listed below:
- Fair Valuation of financial instruments carried at FVTPL and/ or FVOCI.
- Fair Valuation of Biological Assets measured at fair value less cost to sell.
- Impairment of financial assets based on the expected credit loss model.
- Determination of the discounted value for financial instruments carried at amortized cost.
- Discounted vaue of liability for decommissioning costs.
Notes:
1 For Propery, Plant and Equipment existing as on 1st April 2016, i.e. the date of transition to Ind AS for the company, the company has taken the fair value of certain parcels of land and Ind AS cost for all the other assets as deemed cost as per the option available under para D7AA of Ind AS 101 “First Time Adoption”.
2 Other Adjustments also include finance costs capitalized on the qualifying assets as required by Ind AS 23 “Borrowing Costs” amounting to Rs. 2,12,121 /- (previous year Rs. 2,62,414/-)
3 In view of transitional provision of amended Accounting Standard AS-10 “Property Plant & Equipment” effective from 1st April 2016, Cost of Land amounting to Rs.3,00,00,000/- has been transferred from Bearer Plants on 01.04.2016.
There has been no change/ movements in number of shares outstanding at the beginning and at the end of the year.
4 Terms/ Rights attached to Equity Shares :
The Company has only one class of Ordinary shares having a face value of Rs.10 per share and each holder of Ordinary shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors (except interim dividend) is subject to the approval of the shareholders in the Annual General Meetings. The claim of Ordinary Shareholders on earnings and on assets in the event of liquidation, follows all others, in proportion to their shareholding.
5 Shareholding Pattern with respect of Holding or Ultimate Holding Company
The Company does not have any Holding Company or Ultimate Holding Company.
18.8 No ordinary shares have been reserved for issue under options and contracts/commitments for the sale of shares/ disinvestment as at the Balance Sheet date.
6 Terms and conditions of Short Term Borrowings
The Short Term Borrowings from State Bank of India are secured primarily by way of hypothecation of stocks of tea crops, green leaves, stores & spares, book debts, other current assets, plant & machinery and other fixed assets, equitable mortgage of all piece and parcel of land measuring approx 126 acres land and building there on under Berubari G.PSituated at Dist Jalpaiguri, lien on SBI Fixed Deposits Rs.7,15,611 /- (Face value) in the name of company and further secured by personal guarantee of Promoter Director.
7 The aggregate amount of loan guaranteed by Director is Rs. 2,33,43,511/- (Previous Year Rs. 2,39,01,140/-)
8 The present applicable rate of interest per annum for Cash Credit loan is 0.95% over base rate as effective.
b) Estimated amount of expenditure remaining to be executed on capital account (net of amount already expended) Rs. NIL (previous year Rs. 10,14,006/-).
9. Claim against the company not acknowledged as debt:
The W.B.R.E. & PE. Cess of Rs.278000/- was not acknowledged by the company as debt and had been written back to the accounts in the year 2013-14. The management is confident that no liability woul d arise on W.B.R.E. & PE. Cess.
10. Balance confirmation from some Sundry Creditors and Sundry Debtors are still awaited.
11. Prior period charges consist of following expenses / (income) :
12. In terms of the Accounting Standard (AS)-17, issued by the ICAI, neither a business segment nor a geographical segment has been identified as reportable segment during the year.
13. Total value of stores & spare parts and packing material consumed: Indigenous - 100% - Rs. 5,68,688.19 (Previous year - Indigenous - 100% - Rs. 1,49,754.24).
14. Income and Expenditure in Foreign Currency - Rs. Nil (Previous year Rs. Nil).
15. Related Party Transactions -Names of related parties and description of relationship:-
The figures in bracket represent corresponding amount of the previous year.
16. Previous GAAP figures have been reclassified/regrouped to confirm the presentation requirements under IND AS and the requirements laid down in Division-II of the Schedule-III of the Companies Act, 2013.
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