Of the above -
 
 (i) 20,000 Shares were allotted as fully paid up pursuant to a
 contract without payment being received in cash.
 
 (ii) 34,26,090 Shares were allotted as fully paid up by way of Bonus
 Shares by Capitalisation of Reserves and Share Premium Account.
 
 (iii) 10,42,305 Shares were allotted as fully paid up pursuant to
 Scheme of Amalgamation without payment being received in cash.
 
 (iv) 72,31,000 Shares were allotted as fully paid up pursuant to Scheme
 of Amalgamation without payment being received in cash.
 
 1.  Capital Reserve includes Rs. 6.68 lakhs being 26% of the profit for
 the year 1977 of the Sterling Tea Company, the undertakings of which
 were amalgamated with this Company.
 
 2.  Payment of Taxation net of provision include the provisions and
 payments on account of former Sterling Company, the Indian undertakings
 of which were acquired by this Company pursuant to a Scheme of
 Amalgamation.
 
 3.  Titles in respect of Land vested in the Company by virtue of
 amalgamation of erstwhile Majuli Tea Co. (India) Limited with the
 Company are in the process of being transferred in the name of the
 Company.
 
 4.  Some of the investments held in the name of erstwhile Niagara
 Investment Co. Ltd., and Rupajuli Tea Co. (I) Ltd., are in the process
 of being transferred in the name of the Company.
 
 5.  In the opinion of the Directors, the carrying value of investments
 both quoted and unquoted, held as long term investments, when compared
 against their market and intrinsic values as applicable, have not
 suffered any permanent diminution.  No provision, therefore, has been
 considered necessary for an estimated shortfall of carrying values when
 compared against the market/intrinsic value of Rs. 3205.86 lakhs (7999
 Rs. 3238.55 lakhs) without adjusting for surplus amounting to Rs.
 911.80 lakhs (/999 Rs. 1247.16 lakhs) in respect of other investments.
 However, such shortfall is adequately covered by the free reserves of
 the Company.
 
 6.  Fixed Assets and Capital Work-in-progress acquired out of Loan in
 Foreign Currency includes Rs. 217.10 lakhs (1999 Rs. 187.24 lakhs) on
 account of Exchange fluctuation.
 
 7.  Interest Accured on Investments, Deposits etc, includes Rs. 561.83
 lakhs (1999 Rs. 0.81 lakhs) due from a Subsidiary Company.
 
 8.  Loans & Advances include Rs. 115.75 lakhs due from a Company for
 which liquidation proceedings have been initiated.  The extent of
 recovery of the above is dependent upon the complition of the
 proceedings, the quantum of which cannot be ascertained at this stage
 and no provision, therefore, has been made in these accounts.
 
 9.  Provision for taxation for the year has been made after taking into
 account benefits under Section 33AB of the Income Tax Act, 1961 (which
 are available on timely deposits of required amounts with Development
 Bank)