The financial statements have been prepared under the historic cost
 convention on accrual basis adjusted by revaluation of certain fixed
 assets in compliance with all material aspect of applicable Accounting
 Standards in India and the relevant provisions of The Companies Act,
 1956 and on the Accounting Principles of going concern.
 
 1.  Reserves :
 
 (a) Central and State Subsidies received by the Company are retained in
 Special Reserve until the conditions stipulated in the respective
 schemes are complied with, and the same are credited to Profit and Loss
 Account or Capital Reserve after the expiry of the specified period
 depending upon the nature of the subsidy.
 
 (b) Sales value of fixed assets and investments to the extent it
 exceeds the original cost of the relevant asset is credited to Profit
 and Loss Account.  Provided, however, loss/diminution in value of
 assets acquired through amalgamation/merger are adjusted against the
 Capital Reserve created out of the same.
 
 2.  Fixed Assets :
 
 (a) The Physical verification of fixed assets is carried out in a
 phased manner so as to cover each item of the fixed assets over a
 period of 3 years.
 
 (b) Machinery manufactured by one Unit/Division for use in another
 Unit/Division are accounted for at Works/Factory cost of the Transferor
 Unit.
 
 (c) The gross fixed assets are valued at actual cost and other related
 expenses incurred to bring them to their present condition. The gross
 amount of interest on loans utilised for various expansion/
 diversification schemes is capitalised till the commissioning of the
 projects. Further, no interest for inter-unit transfer of funds on
 Capital Account is considered for the above purpose.
 
 (d) Depreciation is provided on the Assets other than Estates on
 straight line method in accordance with the provisions of Section
 205(2)(b) read with Schedule XIV to the Companies Act, 1956 from the
 date the assets are put to use.
 
 (e) No amortisation of cost of long-term leasehold land is done.
 However, fee payable for renewal of lease of land is charged as
 expenditure in the Profit and Loss Account as and when the payment is
 due.
 
 (f) Liquidated damages recovered by the Company for delayed
 construction and delayed supply of equipment are set-off against the
 capital expenditure to which it relates.
 
 (g) Grant/Subsidy in respect of capital expenditure is accounted for as
 per applicable Accounting Standard and depreciations on the assets
 acquired out of such subsidy is adjusted there against.
 
 (h) Expenditure incurred/capitalised in respect of projects
 abandoned/to be abandoned are accounted for in compliance of relevant
 Accounting Standard.
 
 (i) The carrying amount of assets are reviewed at each Balance Sheet
 date if there is any indication of impairment based on
 internal/external factors. An asset is treated as impaired when the
 carrying cost of assets exceeds its recoverable value. An impairment
 loss is recognised in the profit and loss account where the carrying
 amount of an asset exceeds its recoverable amount. The impairment loss
 recognised in prior accounting periods is reversed if there has been a
 change in the estimate of recoverable amount.
 
 Inventories :
 
 (a) Stocks of stores, spares, raw materials etc., are valued at lower
 of cost or net realisable value.  However, materials and other items
 held for use in production of inventories are not written down below
 cost if the finished products in which those will be incorporated are
 expected to be sold at or above cost. Cost is determined on weighted
 average cost basis.
 
 (b) Provisions for slow and non moving stores lying for more than three
 years but less than five years are made at 15% of Book Value for such
 stores remaining more than 5 years, provision (a) 36.25% of Book Value
 are made. Provision for obsolate stores are made at 100% of Book Value.
 
 (c) Work-in-Progress is valued at Works Cost. Works cost includes
 direct materials, labour and manufacturing overhead. All losses on
 Work-in- Progress incurred upto the end of the year and losses
 estimated for further Works Cost to be incurred on such jobs are taken
 into account and duly provided for.
 
 While valuing the contract jobs in progress at the close of the year,
 future estimated losses are
 
 considered only in respect of jobs valued at Rs.25.00 lakhs or more
 and/or physical progress whereof as per technical estimate, is minimum
 50%.
 
 (d) Royalty liabilities calculated with reference to Sales as per the
 collaboration agreements are considered as selling expenses and thus,
 have not been considered for the purpose of valuation of stocks of
 Work-in-Progress and finished goods.
 
 (e) Inter-Unit transfers of own manufactured stores, spares, raw
 materials etc., if lying in stock at the close of the year, are valued
 at estimated Works/ Factory cost of the Transferor Unit.
 
 (f) Excise Duty, Insurance and Freight outward in connection with
 transfer of finished goods from factories to branches have been
 considered for valuation of branch stock at the close of the year.
 
 (g) Stocks of finished goods including Finished goods- in-transit are
 valued at estimated total cost or net realisable value, whichever is
 lower. Estimated total cost covers all costs excluding administration
 overheads, selling and distribution overheads and interest. However,
 for Finished Goods-in-Transit, the estimated total cost includes
 expenses on Freight and Insurance incurred for delivery of such
 Finished goods.
 
 (h) Imported materials lying in bonded warehouse and at Port are valued
 at cost including Customs Duty, Port Charges etc.
 
 (i) Loose Tools are amortised over a period of 5 years.
 
 (j) Stock of scrap, is valued on the basis of estimated/ actual
 realised value as the case may be. However tea waste is not valued.
 
 (k) Export benefits against Advance Licences are considered at the time
 of actual consumption of the imported materials. Advance Licences in
 hand at the close of the year are not accounted for.
 
 4.  Investments :
 
 Investments are stated at cost. Provision for diminution in the value
 of long term investment is made only if such a decline is other than of
 temporary nature in the opinion of the Management.
 
 5.  Sales :
 
 (a) (i) Sales against Ex-Works/FOR Contracts are booked on the basis of
 deliveries to transport carriers upto 31st March, irrespective of
 whether the goods have been received by the customers by 31st March or
 not. Sales in respect of transactions against FOR
 
 destination contracts are booked for the goods actually received by
 customers by 31st March.
 
 (ii) Despatches against FOR destination contracts not reaching the
 customers within the close of the year, are shown as Finished goods-in-
 transit.
 
 (b) Partial deliveries are accounted for in accordance with the billing
 schedule as per the terms of Sales Contract.
 
 (c) Tea sales against contracts are accounted for on the basis of
 delivery orders and on completion of sale in auction centres in
 accordance with the norms of tea trade.
 
 (d) Sales returns, if any, upto the cut-off date i.e. 30th April, are
 accounted for.
 
 (e) Except in disputed cases, escalation/de-escalation claim bills are
 accounted for on the basis of the terms of the relevant contracts.
 
 (f) Export sales are accounted for with reference to the date of Bill
 of Lading.
 
 6.  Dividend Receipts :
 
 Dividends declared and received within the close of the accounting year
 are accounted for in respect of investments held by the Company.
 
 7.  Other Income :
 
 (a) (i) Insurance and other claims are accounted for
 on the basis of amounts admitted-
 
 (ii) Sales Tax, Excise Duty and Customs Duty refunds are accounted for
 on the basis of assessment/refund orders received;
 
 (iii) Central/State Subsidies from Government and Tea Board are
 accounted for on the receipt of intimation of grant.
 
 (b) Interest receivable from customers as per stipulation of the Sales
 Contract on account of late receipt of full/proportionate payments are
 accounted for to the extent such interest is ascertainable with respect
 to the payment so far received.
 
 (c) Liquidated Damages recovered by the Company for delayed execution
 and delayed supply of equipment/ spares are treated as other income.
 
 (d) Export/Deemed Export benefits are accounted for on completion of
 despatches in terms of the contract.
 
 8.  Purchases :
 
 (a) Insurance charges incurred in relation to the incoming goods Where
 materials are directly relatable are accounted for in respect of
 individual items; otherwise, such insurance premium is charged off to
 Profit and Loss Account.
 
 (b) In case of goods purchased from overseas, the shipment is treated
 as goods-in-transit:
 
 (i) in case of both CIF and C&F Contracts, from the date of intimation
 received from bank;
 
 (ii) in case of FOB Contracts, from the date of actual shipment as per
 Bill of Lading.
 
 Customs Duty is charged on the basis of the date of arrival in port.
 
 9.  Other Revenue Expenses :
 
 (a) Issue of materials/components as free replacements during the
 guarantee period, which can not be provided being unknown, is accounted
 for on actual despatches. Known free replacements upto the close of the
 accounting year are provided for.
 
 (b) Liability in respect of rectification work/ replacement involving
 estimated value above Rs.0.25 lakh per case is booked on the basis of
 claims from the customers admitted by the Company wherever it is
 possible to estimate.
 
 (c) Liabilities in respect of Liquidated Damages are provided if and to
 the extent, not disputed by the Company. Liquidated Damages disputed by
 the Company are treated as contingent liability. The amount of
 liability/contingent liability is estimated on the basis of contracted
 terms and the facts of each case to the extent of revenue recognised.
 
 (d) Liability in respect of commission is provided in proportion to
 sales.
 
 (e) Interest on delayed payments of Income Tax/ Agricultural Income-Tax
 is accounted for on the basis of assessment orders of the Tax
 Authorities, if not disputed by the Company or actual payment effected,
 as the case may be.
 
 (f) Provisions made and Provisions no longer required written back
 during the year are netted against in respect of each individual items.
 
 (g) Payment of Technical Know how Fees is accounted for in compliance
 with the relevant Accounting Standard.
 
 (h) Provision for unrealised profit is made in respect of partially
 completed composite/turnkey contracts on the basis of proportionate
 direct cost on the revenue recognised.
 
 (i) Medicine purchase for Tea Estates are all charged out as per
 consistent practice.
 
 (j) Guarantee commission is taken in the year of guarantees
 issued/renewed.
 
 10.  Taxation
 
 (i) Taxation comprises of Income Tax, Agricultural Income Tax (both
 Assam and West Bengal), Deferred Tax and Wealth Tax. These taxes other
 than Deferred Taxes are measured as the amount expected to be paid to
 the Tax Authorities in accordance with the Indian Income Tax Act, 1961,
 West Bengal Agricultural Income Tax Act, 1944, Assam Agricultural
 Income Tax Act, 1939 and Wealth Tax Act, 1957 respectively.
 
 (ii) Deferred Tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the Balance Sheet date. Deferred
 Tax assets/liabilities is recognised, subject to the consideration of
 prudence, on timing differences, being the difference between taxable
 income and accounting income that originate in one period and are
 capable of reversal in one or more subsequent periods in the Profit and
 Loss Account and the cumulative effect thereof is reflected in the
 Balance Sheet.
 
 (iii) In respect-of proceedings pending before the various Income
 Tax/Agricultural Income Tax Authorities on account of
 Appeal/Rectification filed by the Company, adjustments are made on
 final settlement of such proceedings.
 
 11.  Contingent Liabilities and Contingent Assets :
 
 Disputed liabilities and claims against the Company including claims by
 Tax Authorities (for example, Income-tax, Sales tax etc.) pending in
 appeal, are treated as contingent liabilities. Contingent assets are
 not accounted for.
 
 Contingent liabilities are considered by using a substantial degree of
 estimates in compliance with Accounting Standard-29.
 
 12.  Booking/Writing Back of Liabilities:
 
 (a) For providing liabilities, cut-off date is 30th April but all known
 liabilities, if material, are booked as far as practicable.
 
 (b) Liabilities, which are more than 5 years old and not likely to
 materialise, are written back except government debts. In case of
 extraordinary items only, separate disclosure is given in the accounts.
 
 13.  Conversion of Foreign Currencies:
 
 (a) Foreign currency loans to finance fixed assets
 
 including technical know-how fees are converted either at the exchange
 parity rate ruling at the close of the accounting year or at the fixed
 rate when the exchange is booked in advance, as the case may be.
 Necessary adjustments with regard to such exchange rate difference are
 made to secured loans, fixed assets and depreciation.
 
 (b) In respect of any import of materials both under GIF, FOB and C6-F
 Contracts, purchases are booked at the exchange rates ruling on the
 date of Bill of Entry. The exchange difference, if any, arising from
 the difference between the above rate and the rate at which the actual 
 payment is made or at the rate prevailing on 31st March, whichever is 
 earlier, is accounted for in the Profit and Loss Account.
 
 (c) Exports/Overseas Sales are booked at the rates ruling on the date
 of bill of lading. Exchange difference, if any, relating to such bills
 arising either on realisation of the proceeds or on conversion thereof
 at the exchange rate ruling at the close of the year, whichever is
 earlier, is accounted for in Profit and Loss Account.
 
 (d) Receivables and Payables in foreign currency are reported in the
 Balance Sheet at the parity rate ruling at the close of the financial
 year. The exchange difference arising on the Settlement of such
 receivables/payable or on reporting such receivables/payables at rates
 different from those at which those are initially recorded during the
 period or reported in previous Balance Sheet is accounted for in Profit
 and Loss Account.
 
 (e) Wherein contract for import or export is covered by forward
 exchange contract any premium or discount at inception of such contract
 and any other gain or loss arising out of exchange differences between
 the forward contract rate and the rate on
 
 the day of reporting are treated in compliance with Accounting
 Standard-11.
 
 14.  Research and Development Costs:
 
 Expenditure in relation to Research and Development activities are
 treated in accordance with the relevant provision of Accounting
 Standard-26.
 
 15.  Employee Benefits :
 
 (a) Defined Contribution Schemes (DCS): Company''s contribution towards
 Provident Fund and Employees State Insurance paid/payable during the
 year to the Appropriate Authorities are charged to the Profit and Loss
 Account.
 
 (b) Company''s liabilities towards Defined Benefit Schemes for Gratuity,
 Superannuation and Pension, value of Plan Assets of the Trustee managed
 Funds maintained for meeting such liabilities, contribution to those
 Funds and benefits paid out of such Funds are ascertained and accounted
 for on the basis of independent actuarial valuation as per the
 requirement of Accounting Standard-15 (Revised 2005) on Employee
 Benefit.
 
 In respect of a section of employees, the Company''s liability towards
 Defined Benefit for Provident Fund is determined and accounted for on
 the basis of prescribed contributions to the respective Trustee managed
 Funds and shortfall, if any, in plan assets as per Audited Accounts of
 such Fund.
 
 In respect of post retirement Defined Benefit Scheme of Leave
 Encashment, the Company''s liability is determined and accounted for on
 the basis of independent actuarial valuation as required by Accounting
 Standard-15 (Revised 2005) though there is no funding for such
 liability.
 
 (c) Leave encashment and Pension fund is unfunded but benefits have
 been determined and accounted for in accordance with Accounting
 Standard-15 (Revised 2005).