a) FIXED ASSETS
 
 i) Land & Plantations, Buildings, Plant & Machinery, Electrical
 Installations and Vehicles situated at the Company''s tea estates were
 revalued as at 31st December 1993, at net of replacement cost by
 approved valuers appointed for the purpose. The resultant incremental
 effect in the value of the related fixed assets arising from the
 aforesaid revaluation over and above the increase which had arisen as a
 result of prior revaluation of the Company''s Land and Plantations,
 Buildings and Plant & Machinery at the tea estates on 1.4.85 at net of
 replacement cost was transferred to Revaluation Reserve.
 
 ii) Other Fixed Assets items [ i.e. items not covered by revaluation
 referred to in (i) above] are stated at cost.
 
 iii) Additions to assets [ referred to in (i) above] subsequent to the
 date of revaluation are stated at cost.
 
 iv) Assets acquired on hire purchase are capitalised at cash cost.
 
 v) Expenditure on Replanting and Replacement are capitalised under Land
 & Plantations as per consistent policy of the Company and Tea Board
 Replanting and Extension Planting Subsidy are deducted from the value
 of Land & Plantations as and when received.
 
 vi) Capital subsidy received from Statutory Authorities is treated as
 capital receipt and shown under Capital Reserve.
 
 vii) Loss on account of Impairment of Assets is to be recognised if and
 when the carrying amount of Fixed Assets exceeds the recoverable amount
 i.e. higher of net selling price and value in use.
 
 b) CAPITAL WORK- IN- PROGRESS
 
 These are stated at cost which includes payments for availing
 facilities in connection with the Work-in-progress.
 
 c) DEPRECIATION
 
 i) Depreciation on Fixed Assets upto 31.3.85 has been provided for on
 Written Down Value Method.
 
 ii) From 1.4.85, depreciation on Fixed Assets covered by revaluation
 referred to in a(i) above is calculated at their revalued amounts on
 the Straight Line Method at rates specified in Schedule XIV to the
 Companies Act,1956 and accordingly includes additional depreciation
 charge. An amount equivalent to the aforesaid additional depreciation
 charge is transferred to the credit of the year''s Profit and Loss
 Account from Revaluation Reserve.
 
 iii) From 1.4.85, depreciation on other assets items [i.e. not covered
 by revaluation referred to in a(i)above] is calculated on Straight Line
 Method at rates specified in Schedule XIV to the Companies Act,1956.
 
 d) INVESTMENTS
 
 Investments in Shares are stated at cost less adjustment for permanent
 dimunition in value thereof to the extent determined. Profit /Loss on
 disposals of such investments are recognised as income/ expenditure.
 
 e) INVENTORIES
 
 Inventories are valued as under :
 
 - Stores and Spare Parts : At lower of cost (determined under weighted
 average method) and net realisable value.
 
 - Stock of Tea : Valued at average cost or net realisable value,
 whichever is lower.
 
 f) FOREIGN CURRENCY TRANSACTIONS
 
 Sales and expenditure in foreign currency are translated at rupee value
 at rates ruling on the date of transactions.
 
 g) RETIREMENT BENEFITS
 
 i) Gratuity is accounted for on the basis of actuarial valuation.
 
 ii) Provident funds payments are accounted for on accrual basis with
 contribution to recognised funds.
 
 h) SALES
 
 Sales are inclusive of excise duty, other than export sales, and
 recognised on passing of property in goods i.e. delivery as per terms
 of sale or on completion of auction in case of auction sale.
 
 i) RECOGNITION OF INCOME AND EXPENDITURE
 
 i) Items of Income are recognised on accrual basis except Dividend,
 Refund of Government dues, Taxes and sundry receipts which are treated
 on cash basis.
 
 ii) Items of Expenditure are recognised on accrual basis.
 
 j) RESEARCH AND DEVELOPMENT
 
 Contribution made to approved Research & Development Associations is
 charged as revenue on accrual basis.