a) Basis of Preparation of Financial Statements
 
 The financial statements are prepared under the historical cost
 convention in accordance with generally accepted accounting principles
 in India and the provisions of the Companies Act, 1956 as amended.
 
 b) Fixed Assets
 
 Fixed Assets are stated at cost less accumulated depreciation. Cost
 includes expenditure incurred in the acquisition and
 construction/installation and other related expenses.
 
 c) Depreciation
 
 Depreciation on fixed assets has been provided on Straight Line Method
 at the rates specified in Schedule XIV of the Companies Act, 1956.
 Assets costing below Rs.5,000/- each are fully depreciated in the year
 of addition. Lease-hold land is amortised over the effective period of
 lease.
 
 d) Investments
 
 Long Term Investments are stated at cost. Diminution in value thereof
 as determined which are not temporary in nature are adjusted therefrom
 and charged to revenue. Current Investments are valued at cost or net
 realizable value, whichever is lower.
 
 e) Inventories
 
 Stores & Spare parts are valued at cost. Cost calculated on FIFO basis.
 
 f) Use of Estimates
 
 The preparation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of the financial statements and the reported
 amount of revenues and expenses during the reporting period. Difference
 between the actual results and estimates are recognized in the period
 in which the results are known / materialized.
 
 g) Employee Benefits
 
 Short term benefits are charged off at the undiscounted amount in the
 year in which the related service is rendered.  Liabilities in respect
 of Defined Benefits plans namely retirement gratuities and encashment
 of unavailed leave are unfunded and calculated by an independent
 actuary at the year-end and provided for. Actuarial gains/ losses are
 recognised in the statement.
 
 h) Revenue Recognition
 
 i) Profit/(Loss) on sale of investments is taken to Statement of Profit
 and Loss.
 
 ii) Dividend income is accounted for as and when right to receive
 dividend is established.
 
 iii) Interest Income is recognised on time proportion basis taking into
 account the amount outstanding and rate applicable.
 
 iv) Income arising on account of job work relating to packeting of Tea
 is accounted as and when bills are raised on the party after completion
 of the respective assignment.
 
 i) Taxes on Income
 
 i) Current Tax is determined in accordance with the provisions of
 Income Tax Act, 1961.
 
 ii) Deferred Tax has been recognised for all timing differences,
 subject to consideration of prudence in respect of Deferred Tax Assets.
 
 iii) Tax credit is recognised in respect of Minimum Alternate Tax (MAT)
 as per the provisions of Section115JAA of the Income Tax Act, 1961
 based on the convincing evidence that the Company will pay normal
 Income-tax within statutory time frame and is reviewed at each Balance
 Sheet date.
 
 j) Leases
 
 Assets acquired on Finance Lease / Hire Charges are capitalised at the
 fair value of the lease assets. Equated monthly payments are
 apportioned between the finance charges and repayment of principal
 amount.