SIGNIFICANT ACCOUNTING POLICIES
 
 a) CONVENTION
 
 The Financial Statements have been prepared in accordance with
 applicable Accounting Standards in India.  A summary of important
 policies, which have been applied consistently, are set out below.  The
 financial statements have also been prepared in accordance with the
 relevant presentational requirements of the Companies Act, 1956.
 
 b) BASIS OF ACCOUNTING
 
 The financial statements have been prepared in accordance with the
 historical cost-convention as modified by revaluation of certain fixed
 assets.
 
 c) FIXED ASSETS
 
 Leasehold Land including development, certain Building, and Plant and
 Machinery at Tea Estates are stated at valuation made by an approved
 valuer at the then current cost.  Subsequent acquisition of these
 assets and other fixed assets are stated at their purchase cost
 together with any incidental expenses of acquisition.
 
 Assets acquired on hire purchase, for which ownership will vest at
 future date, are capitalised at cash cost.
 
 Depreciation on Fixed Assets other than Land including Leasehold Land
 and Development is provided on written down value method in accordance
 with Schedule XIV to the Companies Act, 1956.  Additional charge of
 Depreciation on amount added on revaluation is adjusted against
 revaluation reserve.
 
 All expenditure incurred for extension of new area of cultivation are
 capitalised.  However, cost of upkeep and maintenance of the areas till
 not matured for plucking and cost of replanting in existing areas are
 charged to revenue.
 
 Profit or loss on disposal of Fixed Assets is recognised in the Profit
 and Loss Account.
 
 d) INVESTMENTS
 
 Long Term Investments are stated at cost where applicable, provision is
 made where there is a permanent fall in value of investments.
 
 e) INVENTORIES
 
 Inventories are valued at cost (Net of Modvat credit) or realisable
 value, whichever is lower.  Cost is determined on weighted average
 basis and includes expenditure incurred in the normal course of
 business in bringing stock and finished goods to their location and
 condition including appropriated overheads wherever applicable.
 
 f) FOREIGN CURRENCY TRANSACTIONS
 
 Transactions in foreign currency are recorded at the exchange rate
 prevailing at the date of transactions.  Gains/Losses arising out
 of fluctuations in the exchange rates are recognised in Profit & Loss
 Account in the period in which they arise except in respect of fixed
 assets where exchange variance is adjusted in the carrying amount of
 the respective fixed assets.  The differences between the forward
 exchange rates and the exchange rates at the date of transactions are
 accounted as income or expense over the life of the contracts, except
 in respect of liabilities incurred for acquiring fixed assets, in which
 case such profit/loss are adjusted in the carrying amount of the
 respective fixed assets.
 
 Gains/Losses on foreign exchange rate fluctuations relating to current
 assets and liabilities are accounted for at the year end, except in the
 case of inventories.
 
 Gains/Losses on foreign exchange rate fluctuations relating to
 Inventories are accounted for where valuation is at net realisable
 value.
 
 g) SALES
 
 Sales represent the invoiced value of goods supplied less Sales Tax.
 
 h) INCOME FROM INVESTMENTS
 
 Income from investments is included together with the related tax
 credit in the Profit and Loss Account.
 
 i) REPLANTING SUBSIDY
 
 Replanting Subsidy is recognised as income in the Profit and Loss
 Account in the year of receipt.
 
 j) COMPENSATION OF LAND
 
 Compensation in respect of certain land acquired by the Assam
 Government under the Assam Fixation of Ceiling on Land Holding Act,
 1956 which is yet to be determined will be accounted for as and when
 received.
 
 k) RESEARCH AND DEVELOPMENT
 
 Research and Development Expenditure of revenue nature is charged to
 Revenue and Capital Expenditure is treated as fixed assets.
 
 I) LEASED EQUIPMENT
 
 Rentals in respect of leased equipment acquired under financial lease
 are charged to the Profit and Loss Account.
 
 m) RETIREMENT BENEFIT
 
 The Company makes regular contribution to provident funds,
 superannuation funds and pension fund which are fully funded and
 administrated by Trustees and are independent of Company's finance.
 The Company also contributes to gratuity fund and such contribution
 determined by the actuary.  The gratuity fund is also administrated by
 Trustees and is independent of the Company's finance.  Leave encashment
 benefit on retirement is provided in the accounts as per actual
 valuation.