[a] Convention
 
 The financial statements are prepared to comply in all material aspects
 with all the applicable accounting principles in India, the applicable
 accounting standards, notified u/s 211(3C) of the Companies Act, 1956
 and the relevant provisions of the Companies Act, 1956.
 
 [b] Basis of Accounting
 
 The Financial Statements are prepared under the historical cost
 convention, modified by revaluation of certain fixed assets as detailed
 below.
 
 [c] Fixed Assets
 
 Fixed assets are stated at cost of acquisition including appropriate
 incidental / installation expenses. Cost of young tea plantation is
 capitalised. In respect of revalued assets, the appreciation in value
 of assets over its book value are credited to the Revaluation Reserve.
 
 The assets acquired on hire purchase for which ownership will vest at a
 future date are capitalised at the cash cost of the leased assets.
 Equated monthly payments are apportioned between finance charge and
 repayment of principal amount.
 
 Subsidies received from Government in respect of fixed assets are
 deducted from cost of respective assets.
 
 Impairment loss, if any, ascertained as per the Accounting Standard of
 the Companies (Accounting Standards) Rules, 2006 is recognised.
 
 Software cost is capitalised where it is expected to provide future
 enduring economic benefits. Software capitalisation costs include
 license fees, cost of packages and implementation/system integration
 services. The costs are capitalised in the year in which the relevant
 software is implemented for use.
 
 Profit or loss on disposal of fixed assets is recognised in the Profit
 and Loss Account.
 
 Expenditure incurred in connection with Oil and Gas project
 
 Expenses incurred for acquiring rights for exploring, developing and
 producing oil along with other expenses incurred for developing and
 constructing wells have been capitalised and included under the head
 Capital Work in Progress in line with the suggested treatment
 prescribed by The Institute of Chartered Accountants of India in the
 ''Guidance Note on''
 
 Accounting for Oil and Gas Producing Activities'' under the ''Full Cost
 Method''.
 
 Producing properties are created in respect of an oil field having
 developed oil reserves when the well in the field is ready to commence
 commercial production.
 
 [d] Depreciation
 
 [i] Depreciation other than on Oil and Gas producing properties is
 provided on the Written Down Value method at the rates prescribed in
 Schedule XIV to the Companies Act, 1956. Cost of certain fixed assets
 located in leasehold properties under the head Building and Furniture
 as mentioned below have been depreciated over their respective lease
 periods which is higher than the Schedule XIV rates.
 
 Building and Furniture : Lease period - between 3 to 9 years.
 
 Cost of certain fixed assets at estates under the head Buildings and
 Vehicles are depreciated at rates based on the estimated life of each
 asset and the aggregate depreciation so calculated is higher than the
 Schedule XIV rates.  The following depreciation rates are considered
 and applied: Building 25% and 33.33% Vehicles 30% 
 
 [ii] Capitalised software costs are amortised over its useful life of
 five years on a straight line basis.
 
 In respect of revalued assets the incremental depreciation on account
 of revaluation is recouped from Revaluation Reserve. Land and
 Development including leasehold land are not depreciated.
 
 [iii] Assets like Building, Plant and Machinery etc. included in Oil
 and Gas producing properties for which depreciation rates have been
 prescribed in Schedule XIV of the Companies Act,1956 are depreciated on
 Written Down Value method at the rates prescribed in Schedule XIV of
 the Companies Act, 1956. Other assets are depreciated according to the
 ''unit of production'' method as prescribed by The Institute of Chartered
 Accountants of India in the ''Guidance Note on Accounting for Oil and
 Gas Producing Activities''. Until previous year all Oil and Gas
 producing properties were depreciated on Unit of production method.
 
 [e] Borrowing Costs
 
 Borrowing costs that are directly attributable to the acquisition,
 construction or production of qualifying assets are capitalised. Other
 borrowing costs are charged to revenue.
 
 [f] Investments
 
 Investments of a long-term nature are stated at cost, less adjustment
 for any diminution, other than temporary, in the value thereof. Current
 investments are stated at lower of cost and market value.  [g]
 Inventories
 
 Inventories are stated at lower of cost and net realisable value. Cost
 is determined on weighted average basis. Cost comprises expenditure
 incurred in the normal course of business in bringing such inventories
 to their location and condition and includes appropriate production
 overheads, where applicable.
 
 Provision is made for obsolete, slow moving and defective stocks, where
 necessary.  
 
 [h] Foreign Currency Transactions
 
 Transactions in foreign currency are recorded at exchange rates
 prevailing on the date of the transaction. Transactions in foreign
 currency with a Joint Venturer for Oil and Gas project are recorded at
 monthly average exchange rate prevailing at the time of such
 transaction. Monetary items denominated in foreign currency are
 restated at the exchange rate prevailing on the Balance Sheet date.
 Foreign currency non-monetary items carried in terms of historical cost
 are reported using the exchange rate at the date of the transactions.
 Exchange differences arising on settlement of transactions and /or
 restatements are dealt in the Profit and Loss Account.
 
 Exchange differences relating to long term foreign currency monetary
 items, to the extent they are used for financing the acquisition of
 fixed assets are adjusted against the cost of such fixed assets and the
 balance is accumulated in ''Foreign Currency Monetary Item Translation
 Difference Account'' and amortised over the balance life of the long
 term monetary item or 31st March, 2011, whichever is earlier.
 
 Derivative financial instruments, i.e. forward exchange contracts are
 used to hedge its risk associated with foreign currency fluctuations
 relating to the underlying transactions, highly probable forecast
 transactions and firm commitments. In respect of forward exchange
 contracts with underlying transactions, the premium or discount arising
 at the inception of such contract is amortised as expense or income
 over the life of contract.
 
 [i] Sales
 
 Sales represent invoiced value of goods sold less Sales Tax / Value
 Added Tax.
 
 [j] Other income
 
 Export incentives, interest income and income from investments are
 accounted on accrual basis.
 
 [k] Replanting and Other Subsidies
 
 Replanting and other subsidies of revenue nature are recognised as
 income in the Profit and Loss Account.  
 
 [l] Compensation of Land
 
 Compensation, if any, in respect of land surrendered / vested in
 Government under various State Land legislations is accounted for as
 and when received.
 
 [m] Leases
 
 Rentals in respect of operating leases are charged off to Profit and
 Loss Account.  
 
 [n] Retirement Benefits
 
 The Company operates defined contribution schemes for Provident and a
 Pension Fund. Contributions to these funds - are made regularly to the
 appropriate authority/Trust. The interest rate payable to the members
 of the Trust is not lower than the statutory rate of interest declared
 by the Central Government under the Employees Provident Funds and
 Miscellaneous Provisions Act,1952 and shortfall, if any, is made good
 by the Company.
 
 The Company also provides for retirement benefits with defined benefits
 in the form of Gratuity and Pension. Annual contributions for Gratuity
 and Pension are made by the Company, based on actuarial valuation
 carried out every year end, to Trust and Life Insurance Corporation of
 India (LICI) respectively.
 
 Leave encashment on retirement and post retirement medical benefits are
 determined on the basis of independent actuarial valuation at the year
 end and such liabilities are provided for in these accounts.
 
 Actuarial gains and losses, where applicable, are determined and
 recognised in the Profit and Loss Account.
 
 The Company recognises gains and losses on curtailment or settlement of
 a defined benefit plan in the Profit and Loss Account as and when the
 curtailment or settlement occurs.
 
 Short term employee benefits are recognised as an expense in the Profit
 and Loss Account for the year in which the related service is rendered.
 
 [o] Oil Production Cost
 
 Production costs include pre well head and post well head expenses
 including depreciation and applicable operating costs of support
 equipments and facilities.
 
 [p] Provision
 
 A provision is recognised when there is a present obligation as a
 result of a past event, it is probable that an outflow of resources
 will be required to settle the obligation and in respect of which
 reliable estimate can be made.  [q] Taxes on Income
 
 Current tax represents the amount of tax payable in respect of taxable
 income for the period based on computation of tax as per prevailing
 taxation laws under the Income Tax Act, 1961.
 
 Provision for deferred taxation is made using the liability method, at
 current rates of taxation, on timing differences to the extent it is
 probable that a liability or asset will crystalise.
 
 Deferred tax assets are not recognised unless there is reasonable
 certainty and in case of brought forward loss and unabsorbed
 depreciation there is virtual certainty that sufficient future taxable
 income will be available against which such deferred tax assets can be
 realised. Deferred tax assets are only recognised to the extent there
 are deferred tax liabilities of offsetting them.
 
 [r] Use of Estimates
 
 The preparation of financial statements in conformity with GAAP
 requires management to make estimates and assumptions that affect the
 reported amounts of assets and liabilities, disclosure of contingent
 liabilities at the date of the financial statements and the results of
 operations during the reporting period. Examples of such estimates
 include estimates of income taxes, future obligations under employment
 retirement benefit plans, provision for doubtful debts and advances and
 estimated useful life of tangible and intangible assets. Actual results
 could differ from these estimates. Any revision to accounting estimates
 is recognised prospectively in the current and future periods.