1.  a) Pursuant to a Scheme of Arrangement (the Scheme) between the
 Company and Kharjan Tea Estates Private Limited (KTEPL) and their
 respective shareholders, which was sanctioned by the Honble Gauhati
 High Court by its Order dated 15th March 2007, the business activity of
 tea plantation carried out by the Company at its Kharjan Tea Estate on
 a going concern basis together with related assets, rights, properties,
 present and future liabilities (Demerged Undertaking) were transferred
 to and vested in KTEPL with effect from 1st April 2006 (the Appointed
 Date). The Scheme has been given effect to in these accounts in
 accordance with the said High Court Order.
 
 b) In terms of the Scheme, assets and liabilities of the Demerged
 Undertaking were transferred to KETPL at their respective book values
 (excluding revaluation reserve) on the Appointed Date and in
 consideration 39,42,510 Equity Shares of Rs.10/- each in KTEPL credited
 as fully paid up, were issued and allotted by it in favour of the
 Company.
 
 c) The excess of book of assets (after elimination of related
 Revaluation Reserve of Rs.104,783 thousand) over liabilities of the
 Demerged Undertaking being Rs.39,425 thousand, transferred as
 aforesaid, is represented by the aggregate face value of the Equity
 Shares in KTEPL referred to in Note 2(b) above.
 
 2.  Compensation in respect of 2632 hectares of land acquired by Assam
 Government in earlier years is being accounted for as and when
 received.
 
 3.  There are contingent liabilities in respect of:
 
 a) Sales Tax matter under dispute : Rs. 40,639 (2006:Rs.39,317).
 
 b) Claims against the Company not acknowledged as debts (to the extent
 quantifiable) Rs.21,655 (2006:Rs. 30,669).
 
 c) Outstanding Guarantees given to Customs authorities on behalf of
 third parties Rs.6,357 (2006: Rs.6357) and Rs.943(2006: Rs.943) to
 Assam State Electricity Board.
 
 4.  Estimated amount of contracts remaining to be executed on Capital
 Account and not provided for (net of advance) Rs.10,027
 (2005-2006:Rs.6,114).
 
 5.  Based on the Valuation Report submitted by Professional Valuer
 appointed for the purpose, Plantations, Buildings and certain items of
 Plant and Machinery of the Company were revalued as at March 31,1994 on
 the then current cost basis and adjusted for depreciation element as
 applicable. The resultant increase in net book value on such
 revaluation amounting to Rs.1,831,759 was transferred to Revaluation
 Reserve.
 
 Depreciation on Fixed Asset items covered by revaluation referred to in
 paragraph above is calculated on their respective revalued amounts at
 rates considered applicable by the Valuer on Straight Line Method as
 against the methods/rates/bases which would have otherwise been adopted
 for the purpose of the Annual Accounts of the Company and accordingly
 include additional charges of Rs.31,228 (2005-2006:Rs.52,113) which has
 been transferred from Revaluation Reserve, such transfer according to
 an authoritative professional view, being accepted for the purpose of
 Companys Accounts. In consequence, the effective depreciation rates
 are as per Schedule XIV of the Companies Act, 1956.
 
 6.  Capital Reserve includes pre-acquisition profit of Rs.1,900 (2006 :
 Rs.1,900)
 
 7.  Expenses include reimbursements.
 
 8.  a) The provision for Income-tax (including deferred tax) has been
 made after considering depreciation on fixed assets on the basis of the
 decision of the Calcutta High Court in CIT vs. Suman Tea & Plywoods
 Industries Private Limited reported in 204ITR719.
 
 b) Deferred Tax Assets pertaining to Agricultural Income Tax Losses
 have not been recognised in the absence of virtual certainty of
 availability of taxable income in future years.
 
 9. According to the Order dated 28th July,2006 of Honble High Court at
 Calcutta, the Company is liable to pay dividend tax under section 1150
 of the Income-tax Act, 1961 on 40% of the dividend declared / paid
 instead of on the entire dividend so declared / paid in respect of
 earlier years. Upon receipt of the aforesaid Order the Company has
 lodged refund claim with the Income Tax Authorities in August 2006 for
 recovery of the excess dividend tax paid by it in earlier years after
 adjustment of the year-end balance of Tax on Dividend Rs.10980 (
 Schedule 12). Accordingly no further amount on account of dividend tax
 is considered payable by the Company at the year-end. However, pending
 realisation of the refund from the Income Tax Authorities, as
 aforesaid, no adjustments in this regard have been considered in these
 accounts on prudent basis.
 
 10.  Repairs to Buildings, Repairs to Machinery and Other Repairs in
 Schedule 15 are exclusive of salaries and wages amounting to Rs. 2,710
 (2005-2006 : Rs.3,225), Rs. 5,435 (2005-2006 : Rs.5,045) and Rs. 6,013
 (2005-2006 : Rs. 6,159) respectively which have been included in
 Salaries, Wages and Bonus in Schedule 15.
 
 11.  Information in accordance with Accounting Standard-17 on Segment
 Reporting issued by the Institute of Chartered Accountants of India,
 for the year ended 31st March, 2007 :
 
 The Company is engaged in the business of cultivation, manufacture and
 sale of tea having eight estates located in the State of Assam. The
 products and their application are homogeneous in nature. However it
 has customers within and outside India and thus its primary reporting
 format is based on the geographical location of the customers.
 
 The accounting policies adopted for segment reporting are in line with
 the accounting policies adopted in financial statements.  Revenue,
 expenses, assets and liabilities have been identified to segments on
 the basis of their relationship to the operating activities of the
 segment. Revenue and expenses, assets and liabilities which relate to
 the enterprise as a whole and are not allocable to segments on a
 reasonable basis, have been included under Unallocable income (net of
 unallocable expenditure) and Unallocable assets/liabilities
 respectively.
 
 12.  Previous years figures have been rearranged / regrouped, wherever
 necessary. However, in view of transfer of Kharjan Tea Estate referred
 to in Note 2 above, current years figures are not comparable with the
 previous year.