A.  Basis of Accounting
 
 The financial statements are prepared under the historical cost
 convention on an accrual basis and in accordance with generally
 accepted accounting principles in India (GAAP) and in compliance with
 the applicable accounting standards and provisions of the Companies
 Act, 1956.
 
 The preparation of financial statements in conformity with GAAP
 requires that the management of the Corporation makes estimates and
 assumptions that affect the reported amounts of income and expenses of
 the period, the reported balances of assets and liabilities and the
 disclosures relating to contingent liabilities as of the date of the
 financial statements. Examples of such estimates include the useful
 lives of fixed assets, provision for doubtful debts/advances, future
 obligations in respect of retirement benefit plans, etc. Difference
 between actual results and estimates are recognised in the period in
 which the results are known/materialise.
 
 B.  Method of Depreciation, Depletion and Amortisation of Tangible
 Fixed Assets:
 
 (i) Depreciation on Fixed Assets is provided on Straight Line basis
 except on assets of Sunmica Division other than Plant & Machinery, and
 Moulds and Dies of Weighing Products Division, at the rates specified
 in Schedule XIV to the Companies Act, 1956. Depreciation on Fixed
 Assets of Sunmica Division other than Plant & Machinery is provided on
 written down value basis at the rates specified in Schedule XIV to the
 Companies Act, 1956. Depreciation on Moulds and Dies of Weighing
 Products Division is provided on straight line basis at the rate of 20%
 based on the useful life as estimated by the Corporation.
 
 (ii) Depreciation on revalued assets of Sunmica Division and South
 India Branches (Plantations) for the year has also been calculated on
 the revalued cost on the basis of their expected future life as
 estimated by the valuers. The difference between depreciation on
 revalued cost and original cost has been withdrawn from Revaluation
 Reserve and credited to profit and loss Account.
 
 (iii) Cost of Leasehold Land is amortised over the period of lease.
 
 (iv) Assets costing less than Rs. 5000 are fully depreciated in the year
 of purchase.
 
 C.  Valuation of Tangible Fixed Assets:
 
 (i) Fixed Assets are valued at cost of acquisition or construction.
 They are stated at historical costs or other amounts substituted for
 historical costs (vide note (ii) below). In respect of new projects
 pre-operative expenses including financing costs attributable to the
 acquisition/construction of fixed assets (net of income during trial
 run) upto the date of commencement of commercial production is included
 in cost.
 
 (ii) The Plant and Machinery of Sunmica Division, Electronics Division
 and South India Branches (Plantations) as on 30th September, 1985 other
 than additions during that year were revalued on the basis of the then
 present worth as per valuation made by the external valuers and are
 stated at revalued amounts. The resultant increase was credited to
 Revaluation Reserve.
 
 (iii) Expenditure in respect of new crops including cost of development
 is capitalised until the year of maturity of the Plantation.
 
 (iv) Fixed Assets held by non-integral foreign branches are stated at
 cost by converting at the closing rate of exchange at the balance sheet
 date.
 
 D.  Intangible Assets:
 
 Intangible assets are recognised as per the criteria specified in
 Accounting Standard (AS 26) Intangible Assets as notified under the
 Companies (Accounting Standards) Rules, 2006 and amortized as follows:
 
 (i) Technical Know How Fees
 
 Technical know how fees for new product development is amortised over
 the period not exceeding five years, of agreement with supplier of
 technology.
 
 (ii) Goodwill
 
 Goodwill represents the excess of costs of business acquired over the
 fair market value of net tangible and identifiable intangible assets.
 
 Goodwill is amortised proportionately over the period not exceeding
 five years from the date of acquisition of the business.
 
 (iii) Computer Software
 
 Computer software is amortised over the period not exceeding ten years
 based on the managements estimate of its useful life.
 
 E.  Impairment of Assets:
 
 Management evaluates at regular intervals, using external and internal
 sources whether there is an impairment of any asset. Impairment occurs
 where the carrying value exceeds the present value of future cash flows
 expected to arise from the continuing use of the asset and its net
 realisable value on eventual disposal. Any loss on account of
 impairment is expensed as the excess of the carrying amount over the
 higher of the assets net realisable value or present value as
 determined.
 
 F.  Valuation of Investments:
 
 (i) Long Term Investments are shown at cost. However, when there is a
 decline, other than temporary, in the value of a long term investment,
 the carrying amount is reduced to recognise the decline.
 
 (ii) Current Investments are valued at cost or fair/market value
 whichever is lower.
 
 (iii) Long Term Investments include investments in shares of companies
 registered outside India.  They are stated at cost by converting at the
 rate of exchange prevalent at the time of acquisition thereof, except
 in case of investment by non-integral foreign branches. Investments
 made by such foreign branches, are stated at cost by converting at the
 closing rate of exchange at the balance sheet date.
 
 G.  Employee Benefits:
 
 (a) Short term employee benefits
 
 Short term employee benefits are recognised as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered.
 
 (b) Post-employment benefits:
 
 (i) Provident and Family Pension Fund
 
 The eligible employees of the Company are entitled to receive post
 employment benefits in respect of provident and family pension fund, in
 which the Company make monthly contributions at a specified percentage
 of the employees eligible salary (currently 12% of employees eligible
 salary). Employees contribute a minimum of 12%, the excess being
 voluntary contribution.
 
 The contributions are made to the provident fund managed by the trust
 set up by the Company or to the Regional Provident Fund Commissioner
 (RPFC) which are charged to the profit and loss account as incurred.
 
 In respect of contribution to RPFC, the Company has no further
 obligations beyond making the contribution, and hence, such employee
 benefit plan is classified as Defined Contribution Plan.
 
 In respect of contribution to the trust set up by the Company, since
 the Company is obligated to meet interest shortfall, if any, with
 respect to covered employees, such employee benefit plan is classified
 as Defined
 
 Benefit Plan in accordance with the Guidance on implementing Accounting
 Standard (AS) 15 (Revised) on Employee Benefits.
 
 (ii) Superannuation
 
 The eligible employees of the Company are entitled to receive post
 employment benefits in respect of superannuation fund in which the
 Company makes annual contribution at a specified percentage of the
 employees eligible salary. The contributions are made to the ICICI
 Prudential Life Insurance Co. Ltd.. Superannuation is classified as
 Defined Contribution Plan as the Company has no further obligations
 beyond making the contribution. The Companys contribution to Defined
 Contribution Plan is charged to profit and loss account as incurred.
 
 (iii) Gratuity
 
 The Company has an obligation towards gratuity, a defined benefit
 retirement plan covering eligible employees.
 
 The plan provides a lump sum payment to vested employees at retirement,
 death while in employment or on termination of employment of an amount
 equivalent to 15 days salary payable for each completed year of service
 or part thereof in excess of six months. Vesting occurs upon completion
 of five years of service. The Company accounts for gratuity benefits
 payable in future based on an independent external actuarial valuation
 carried out at the end of the year. Actuarial gains and losses are
 recognised in the Profit and Loss account.
 
 (c) Other Long-Term Employee Benefits - Compensated Absences:
 
 The Company provides for encashment of leave or leave with pay subject
 to certain rules. The employees are entitled to accumulate leave
 subject to certain limits for future encashment/ availment. The Company
 makes provision for compensated absences based on an independent
 actuarial valuation carried out at the end of the year. Actuarial gains
 and losses are recognised in the Profit and Loss account
 
 H.  Provisions, Contingent Liabilities And Contingent Assets:
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent liabilities are not recognised but are disclosed in the
 financial statements.  Contingent Assets are neither recognised nor
 disclosed in the financial statements.
 
 I.  Valuation of Inventories:
 
 (i) Stores and spare parts are valued at lower of cost or net
 realisable value. Cost is calculated on weighted average basis except
 in the case of Sunmica Division, where it is on First in First out
 basis.
 
 (ii) Raw materials are valued at lower of cost or net realisable value.
 The cost includes purchase price as well as incidental expenses and is
 calculated on weighted average basis except in the case of Sunmica
 Division, where it is on First in First out basis.
 
 (iii) Tea stock is valued at cost or net realizable value whichever is
 lower and inclusive of cess on excise duty. Timber, coffee, pepper and
 cardamom in stock are valued at since realized / contracted rates or
 realizable value.
 
 (iv) Work-in-progress is valued at cost or net realisable value
 whichever is lower. Cost is arrived on the basis of absorption costing.
 
 (v) Manufactured finished goods of Sunmica Division, Weighing Products
 Division, Springs Division and Dental Products Division are valued at
 cost or net realisable value whichever is lower. Cost is determined on
 the basis of absorption costing including excise duty paid/provided on
 packed finished goods.
 
 (vi) Traded Finished goods of Sunmica Division, Weighing Products
 Division, Springs Division and Dental Products Division are valued at
 cost or net realisable value whichever is lower.
 
 (vii) Real Estate under development comprises of Freehold/Leasehold
 Land and Buildings at cost, converted from Fixed Assets into Stock-in
 -Trade and expenses related/attributable to the development
 /construction of the said properties. The same is valued at lower of
 cost or net realizable value.
 
 J.  Foreign Currency Transactions:
 
 (i) Foreign Branches: (Non-integral operations)
 
 (a) All assets and liabilities, both monetary and non-monetary are
 translated at the closing rate;
 
 (b) Income and expense items are translated at the average rate
 prevailing during the year; and
 
 (c) All resulting exchange differences are accumulated in a foreign
 currency translation reserve until the disposal of the net investment
 in the branch.
 
 (ii) Other Transactions:
 
 (a) Initial recognition:
 
 Foreign currency transactions are recorded in the reporting currency by
 applying to the foreign currency amount the exchange rate between the
 reporting currency and the foreign currency at the date of the
 transaction.
 
 (b) Conversion:
 
 Foreign currency monetary items are reported using the closing rate.
 Non-monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction.
 
 (c) Exchange Differences :
 
 Exchange differences arising on the settlement/conversion of monetary
 items are recognised as income or expense in the year in which they
 arise except in case of exchange differences in conversion of Long Term
 Monetary Items. Exchange differences arising on conversion of Long Term
 Monetary Items are accounted in Foreign Currency Monetary Item
 Translation Difference Account to be amortised upto 31st March, 2011.
 
 The premium or discount arising at the inception of forward exchange
 contracts is amortised as expenses or income over the life of the
 respective contracts. The difference between year end conversion rate
 and rate on the date of contract is recognized as exchange difference.
 Exchange differences on such contracts are recognised in the statement
 of profit and loss in the year in which the exchange rates change
 except for exchange difference in respect of contracts relating to Long
 Term Monetary Items which are amortised upto 31st March, 2011 or date
 of expiry of contract, whichever is earlier. Any profit or loss arising
 on cancellation or renewal of forward exchange contract is recognised
 as income or expense for the year.
 
 K.  Export Benefits/Incentives:
 
 Export benefits/incentives in respect of import duty benefits under
 DEPB scheme are accounted on accrual basis on the basis of exports made
 under DEPB scheme.
 
 L.  Revenue Recognition:
 
 (i) Revenue in respect of insurance/other claims, interest etc., is
 recognised only when it is reasonably certain that the ultimate
 collection will be made.
 
 (ii) Sale of products is recognised when the risks and rewards of
 ownership are passed on to the customers and no significant uncertainty
 as to its measurability and collectability exists.
 
 (iii) Sale of timber is accounted based on sale agreement/sale in
 auction.
 
 (iv) Sale of pepper is accounted based on confirmed contract of sale.
 
 (v) Dividend income is accounted when the right to receive payment is
 established and known.  Interest income is recognised on the time
 proportion basis
 
 M.  Borrowing Cost:
 
 Interest and other costs in connection with the borrowing of the funds
 to the extent related/attributed to the acquisition/construction of
 qualifying fixed assets are capitalised up to the date when such assets
 are ready for its intended use and all other borrowing costs are
 recognised as an expense in the period in which they are incurred.
 
 N.  Segment Accounting Policies:
 
 (a) Segment assets and liabilities:
 
 All Segment assets and liabilities are directly attributable to the
 segment.
 
 Segment assets include all operating assets used by the segment and
 consist principally of fixed assets, inventories, sundry debtors, loans
 and advances and operating cash and bank balances. Segment assets and
 liabilities do not include inter-corporate deposits, share capital,
 reserves and surplus, borrowings, and income tax (both current and
 deferred).
 
 (b) Segment revenue and expenses:
 
 Segment revenue and expenses are directly attributable to segment. It
 does not include interest income on inter-corporate deposits, interest
 expense and income tax.
 
 O.  Financial Derivatives and commodity hedging transactions:
 
 Outstanding derivative contracts are not marked to market at each
 balance sheet date. The Corporation assesses the foreseeable losses in
 respect of such contracts and provision is made for such estimated
 losses, wherever necessary. Realized gains and losses on such contracts
 and interest costs in foreign currencies are accounted for at the time
 of settlement of the underlying transactions.
 
 P.  Taxes on Income:
 
 Income Taxes are accounted for in accordance with Accounting Standard
 (AS 22) - Accounting for Taxes on Income, as notified under the
 Companies (Accounting Standards) Rules, 2006. Income Tax comprises both
 current and deferred tax.
 
 Current tax is measured on the basis of estimated taxable income and
 tax credits computed in accordance with the provisions of the Income
 Tax Act, 1961.
 
 Provision for Fringe Benefits Tax is made in accordance with Chapter
 Xll-H of the Income Tax Act, 1961.
 
 The tax effect of the timing differences that result between taxable
 income and accounting income and are capable of reversal in one or more
 subsequent periods are recorded as a deferred tax asset or deferred tax
 liability. They are measured using the substantively enacted tax rates
 and tax regulations as of the Balance Sheet date.
 
 Deferred tax assets arising mainly on account of brought forward losses
 and unabsorbed depreciation under tax laws, are recognised, only if
 there is virtual certainty of its realisation, supported by convincing
 evidence. Deferred tax assets on account of other timing differences
 are recognised only to the extent there is a reasonable certainty of
 its realisation.
 
 Q.  Earnings per Share:
 
 The basic and diluted earnings per share (EPS) is computed by dividing
 Net Profit after tax for the year by weighted average number of equity
 shares outstanding during the year.
 
 R.  Leases:
 
 i.  Lease transactions entered into prior to 1st April, 2002:
 
 Lease rentals in respect of assets acquired under lease are charged to
 profit & loss Account.
 
 ii.  Lease transactions entered into on or after 1st April, 2002:
 
 (a) Assets acquired under lease where the Corporation has substantially
 all the risks and rewards incidental to ownership are classified as
 finance leases. Such assets are capitalised at the inception of the
 lease at the lower of the fair value or the present value of minimum
 lease payments and a liability is created for an equivalent amount.
 Each lease rental paid is allocated between the liability and the
 interest cost, so as to obtain a constant periodic rate of interest on
 the outstanding liability for each period.
 
 (b) Assets acquired on leases where significant portions of the risks
 and rewards incidental to ownership are retained by the lessors, are
 classified as operating leases. Lease rentals are charged to the profit
 & loss Account on accrual basis.