1.  [a] All assets except Furniture as at 31 st December, 1994 were
 revalued by an approved valuer at the then net replacement cost
 resulting in increase in value of these assets by Rs.427,664,732.  All
 assets except Furniture as at 31st December, 1996 were revalued again
 by an approved valuer at the then net replacement cost resulting in a
 further increase in value of these assets by Rs.113,567,000.  [b]
 Taking into account the total intrinsic value of the Company''s land in
 Assam, no adjustment in the opinion of the management is required for
 the loss on land lost due to flood and consequent erosion in past
 years. Claim for compensation in this regard has been made to the
 Government of Assam.
 
 2.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for Rs.10,162,148 (net of advance - Rs.
 1,823,897), [31.12.2009 - Rs.6,228,955 (net of advance - Rs.1,978,734)]
 
 3.  Contingent Liabilities not provided for in respect of:
 
 [a] Income Tax assessments disputed in appeals Rs. 20,824,240
 (31.12.2009 - Rs.1,084,258)
 
 [b] Sales Tax assessments disputed in appeals Rs.118,019,201
 (31.12.2009 - Rs.195,551,033)
 
 [c] Liability towards fringe benefit tax under adjudication - Rs.
 70,929,211 (31.12.2009 - Rs. 70,929,211) (Refer Note 29 of Schedule
 13).
 
 [d] Premium on redemption of Foreign Currency Convertible Bonds
 Rs.559,923,846 (31.12.2009 - Rs.422,707,146). (Refer Note 18 of
 Schedule 13.)
 
 [e] Guarantees given on behalf of third parties Rs. 48,214,400
 (31.12.2009 - Rs.76,814,400) of which Rs.26,178,697 (31.12.2009 -
 Rs.30,863,255) was outstanding as at 31st December, 2010.
 
 [f] Uncalled liability on partly paid shares - Rs.6,999,510 (31.12.2009
 - Rs.6,999,510).
 
 [g] Interest and penalty for non-deduction and non-deposit of tax
 deducted at source from green leaf suppliers in respect of an earlier
 year, not ascertainable at this stage.
 
 [h] Commercial claims not acknowledged as debts Rs. Nil (31.12.2009 -
 242,899,702) [i] Financial undertaking issued to a subsidiary - amount
 not ascertainable.
 
 The future cash flows on account of above cannot be determined unless
 the judgement / decisions / demand are received from the appropriate
 authorities/parties.
 
 4.  Provision for taxation has been made as per the Income Tax Act,
 1961 and the rules framed thereunder with reference to the profit for
 the year ended 31st December, 2010 which extends over two assessment
 years, Assessment Year 2010-2011 and Assessment Year 2011 - 2012. The
 ultimate tax liability for the Assessment Year 2011-2012 will be
 determined on the total income for the period from 1st April, 2010 to
 31st March, 2011.
 
 5.  Employee Benefit Obligation Provident Fund
 
 Provident Fund is a defined contribution scheme whereby the Company
 contributes an amount determined as a fixed percentage of basic salary
 to the Trust/government authorities every month.  Gratuity
 
 The Company operates three gratuity schemes wherein every employee is
 entitled to the benefit equivalent to 15 days salary last drawn for
 each completed year of service. The same is payable on retirement or
 termination of service, whichever is earlier.  Annual contributions
 based on actuarial valuation carried out at the year end are made to an
 independent trust fund who in turn is investing in a private insurance
 company under group gratuity scheme.  Pension
 
 The Company operates two pension schemes for eligible employees, one of
 them being a defined benefit scheme and the other a defined
 contribution scheme. The defined benefit scheme is funded with Life
 Insurance Corporation of India (LICI). Annual contributions to the
 defined benefit scheme are made by the Company based on actuarial
 valuation carried out by LICI at year end. Contributions for the
 defined contribution scheme are deposited with a Trust and such funds
 are utilised to buy pension annuity from the insurance company.  Leave
 Benefit
 
 Leave benefit comprises of leave balances accumulated by the employees.
 These balances can be accumulated upto a maximum of 120 days and can be
 encashed only at any time of retirement/seperation.  Post Retirement
 Medical Benefit
 
 The Company has a Scheme of re-imbursement of Post-retirement medical
 expenses to certain categories of employees and their surviving
 spouses, upon retirement, subject to a monetary limit.  A. Defined
 Contribution Plans
 
 Contributions for Defined Contribution Plans amounting to Rs.78,296,118
 (31.12.2009 - Rs.58,906,944) has been recognised in the Profit & Loss
 Account.
 
 6. [a] Assets acquired under Hire Purchase (HP) comprise of vehicles.
 These agreements are of a period of 36 months and more and in certain
 cases provide for revision of hire charges for variation in prime
 lending rates of the bank. There are no restrictive covenants in the HP
 agreements.
 
 [b] The Company has taken various premises under operating lease having
 tenures upto 36 months which are not non- cancellable. These are
 usually renewed periodically by mutual consent. The rental payable
 against these lease amounting to Rs 335,400 (31.12.2009 - Rs. 676,200)
 have been debited to the Profit and Loss Account.
 
 7.  Related Party Disclosure:
 
 I.  Names of related parties and description of relationship
 
 a.  Subsidiaries of the Company
 
 Namburnadi Tea Company Limited
 
 Camellia Cha Bar Limited
 
 North East Hydrocarbon Limited
 
 Assam Oil & Gas Limited
 
 Duncan Macneill Natural Resources Limited
 
 Dahej Offshore Infrastructure SEZ Limited (Formerly known as Assam
 Estates Limited)
 
 Gujarat Hydrocarbons & Power SEZ Limited
 
 Duncan Macneill Power and Utilities Limited (with effect from
 17.12.2010)
 
 Lord Inschcape Financial Services Limited (Control Exercised through
 two Subsidiaries)
 
 b.  Key Managerial Personnel
 
 Mr. A.KJajodia, Managing Director
 
 c.  Relatives of Key Managerial Personnel
 
 Ms. Ruchika Jajodia
 
 d.  Joint Venture through jointly controlled operations
 
 Canoro Resources Limited - (Refer Note No. 17(a))
 
 8. [a] In 2009, the Company was pursuing E&P activities in Amguri
 Development Block and AA-ON/7 Exploration Block located in North East
 under a Joint Operating Agreement (JOA) with Canoro Resources Ltd
 (Canoro), a Canadian E&P Company based in Calgary, Canada, having
 participation interest of 40% and 35% respectively.
 
 The company continued its E&P operations in upstream oil and gas sector
 in Amguri Development Block during the year under Production Sharing
 Contract (PSC) with Government of India (GOI). Consequent to Canoro
 Resources Limited (CRL) committing breach to the PSC, GOI had
 terminated their Participation Interest (PI) and operatorship with
 effect from 29th August, 2010. Hon''ble Delhi High Court has decided
 against Canoro in the case filed by them against such termination by
 the GOI. Subsequently, case filed by the Company against Canoro was
 dismissed by the Hon''ble Delhi High Court. However, the Arbitration
 proceedings against Canoro is in progress.
 
 As per interim arrangement, GOI had advised Oil and Natural Gas
 Corporation (ONGC) to take over the physical possession of the Amguri
 field from CRL along with all assets as a custodian of GOI, pending
 formalization of transfer of PI to ACIL and appointment of ACIL as an
 operator.
 
 In addition, the Company has one more E&P asset - AA-ONN-2005/1 in
 Assam and Assam-Arakan Basin under consortium with ONGC and OIL, having
 participation interest of 10% through bidding process under NELP-VII.
 
 [b] New PSC of AA-ON/7 Exploration Block covering Nagaland area is
 awaiting execution after completion of exploratory activities in Assam
 area. The new PSC will be an extension of the existing PSC under same
 terms and conditions allowing another 7 years Exploratory Phase in
 Nagaland.
 
 [c] Initial exploratory activities such as seismic studies in
 AA-ONN-2005/1, awarded under NELP-VII,The Company has 10% PI along with
 ONGC and Oil India Ltd holding 60% and 30% respectively, has already
 commenced.
 
 9. The Company had issued Zero Per Cent Foreign Currency Convertible
 Bonds (FCCB) in 2006 aggregating to USD 48 Million (INR
 2,109,120,000) to finance capital expenditure for modernisation,
 expansion and acquisitions. The Bond holders have an option of
 converting these Bonds into Equity Shares at a conversion price of Rs.
 28.75 per share, at any time on or after 28th November, 2006, subject
 to compliance with certain conditions stated in the offer circular
 dated 23rd November, 2006. The Bonds are redeemable on 30th November,
 2011 at 150.019 per cent of their principal amount, unless previously
 converted or redeemed.
 
 During the year 2008, bond holders have exercised their option of
 converting their Bond amounting Rs.5,145,703 into Equity Shares.
 Accordingly, 5,145,703 shares were issued in 2008 with resultant
 increase in issued share capital and securities premium account.
 
 During the year 2009, the Company re-purchased and cancelled FCCB of
 Rs.605,152,000 at a discount which has resulted in a saving of
 Rs.118,107,100/. Consequent upon such re-purchase and cancellation the
 Company''s obligation to convert said FCCBs into shares or to redeem the
 same in foreign currency has come to an end. As of date FCCBs
 outstanding aggregate to Rs. 1,424,958,000.
 
 10. During the year 2007, the Company received the balance amount
 outstanding against 81,000,000 share warrants of Re. 1 each issued in
 2006 at a premium of Rs.22.25 per warrant. Equivalent number of Equity
 Shares of Re. 1 each has been issued on conversion of these warrants
 resulting in increase of issued and paid up share capital of the
 Company by Rs.81,000,000 and the securities premium by Rs.
 1,802,250,000 .
 
 11.  Loans and Advances to subsidiaries include an amount of
 Rs.1,883,979,211 (including interest Rs.524,377,105 Net of TDS)
 (31.12.09 Rs.1,388,834,110 including interest Rs.314,327,976 Net of
 TDS) due from Gujarat Hydrocarbons and Power SEZ Limited (GHPSL), a
 wholly owned subsidiary of the company. GHPSL was incorporated for
 developing a Hydrocarbon and Power Special Economic Zone (SEZ) in the
 state of Gujarat. GHPSL has acquired 315 hectares of land for its SEZ
 project from Gujarat Industrial Development Corporation (GIDC) out of
 which 296 hectares of land has been taken possession of and the balance
 19 Hectares is in the process of acquisition.
 
 12.  The Single bench of the Hon''ble Calcutta High Court has allowed
 the eviction proceedings filed by the owners in respect of the
 Company''s Corporate Office at Kolkata.The Company has preferred an
 apeal before the Division Bench of the Hon''ble Calcutta High Court.
 
 13.  In line with the notification dated 31st March, 2009 issued by the
 Ministry of Corporate Affairs, amending Accounting Standard (AS) 11 -
 Effects of Changes in Foreign Exchange Rate, the Company in the
 current year has:
 
 (i) charged to the Profit and Loss Account Rs.29,637,828, being the
 amortisation charge of ''Foreign Currency Monetary Item Translation
 Difference Account'' (FCMITDA) for the year.
 
 (ii) carried forward Rs.7,227,867 (31.12.09- Rs.36,865,695) in the
 FCMITDA, amortisable by 31st March, 2011.
 
 14.  Derivative instruments
 
 The Company uses Foreign Exchange Contracts to hedge its certain
 exposures in foreign currency related to firm commitments and highly
 probable transactions.
 
 15.  The Company has obtained a stay from the Hon''ble Guwahati High
 Court restraining the taxation authorities from imposing and collecting
 Fringe Benefit Tax (FBT) under section 115WA of the Income Tax Act,
 1961. In view of this, the Company has not provided the liability for
 FBT till the year-end.
 
 16.  Sundry Debtors include an overdue above one year of Rs. 2,777.64
 lacs, which in the opinion of the management is good and recoverable.
 
 17[a] Until previous year depreciation for Oil and Gas producing
 properties used as fixed assets, was provided based on Unit of
 Production method as recommended in the Guidance Note on Accounting
 for Oil and Gas Producing Activities issued by Institute of Chartered
 Accountants of India in February, 2003. In the current year the Company
 has changed the method of providing depreciation in respect of certain
 assets for which depreciation rates have, been prescribed in Schedule
 XIV of the Companies Act, 1956. For those assets depreciation has been
 provided for on Written Down Value method at the rates prescribed in
 Schedule XIV of the Companies Act, 1956. In respect of other oil and
 gas producing assets, depreciation has been provided on unit of
 production method as per past practice. In view of the above change in
 method of providing depreciation, an additional depreciation charge of
 Rs. 52,536,252 has been provided in these accounts.
 
 18 [b] In respect of oil and gas producing assets for which
 depreciation rates has not been prescribed in Schedule XIV of the
 Companies Act, 1956, the Company has applied to the Central Government
 for its approval to adopt the unit of production method of computing
 depreciation for the purpose of provision of Section 205 of the
 Companies Act, 1956, which is awaited.
 
 19.  Previous year''s figures have been regrouped / rearranged wherever
 necessary.