The financial statements have been prepared in accordance with the
 generally accepted accounting principles and acceptable accounting
 standard notified under section 211(3C) of the companies Act 1956 in
 India. A summary of significant accounting policies what have been
 applied consistently is set out below. The financial statements have
 also been prepared in accordance with the relevant presentational
 requirements of the Companies Act, 1956.
 
 1) Basis of Accounting
 
 The financial statements have been prepared in accordance with the
 historical cost convention.
 
 2) Revenue Recognition
 
 2.1) The Company follows the Mercantile System of accounting and
 recognizes income and expenditure on an accrual basis.
 
 2.2) Sales are net of Sales Tax wherever applicable.
 
 3) Fixed Assets
 
 Fixed assets are stated at cost (or revalue amounts, as the case may
 be) less accumulated depreciation.
 
 Cost includes purchase price net of MODVAT/CENVAT and any directly
 attributable cost of bringing the assets to working condition for the
 intended use.
 
 Expenditure incurred on extension planting and for upkeep of the same
 up to commercial plucking are capitalised.  Subsidies from Government
 in respect of Fixed Assets are deducted from the cost of respective
 assets on receipt/settled.
 
 4) Replantation Expenditure
 
 Expenditure on replanting and maintenance of replantation has been
 carried forward under fixed assets as Plantation.
 
 5) Impairment of Fixed Assets
 
 An impairment loss is recognised where applicable when the carrying
 value of the fixed assets of a cash generating unit exceeds its net
 selling price or value in use, whichever is higher.
 
 6) Depreciation & Amortisation
 
 Depreciation on fixed assets has been provided on Straight Line Method
 as per provision of Section 205(2)(b) of the Companies Act, 1956,
 applying the rates as prescribed in the Schedule XIV of the Companies
 Act, 1956.  No provision has been made in respect of amortisation of
 leasehold Land & Plantation.
 
 7) Contingent Liabilities
 
 Contingent Liabilities are generally not provided for, in the accounts
 and are separately shown in the Notes to the Accounts.
 
 8) Inventories
 
 Stock of Tea is valued at lower of cost computed on annual average
 basis or net realisable value. Stock of Tea Waste is valued at
 estimated realisable value.
 
 Stock of stores and spares are valued at cost on weighted average basis
 or net realisable value.
 
 As per practice followed by the Company the value of green leaf in
 stock as at the close of the year are not taken into
 
 accounts.
 
 Provision is made for obsolete and slow moving stores wherever
 necessary.
 
 9) Investments
 
 Investments are classified as Long Term Investments and Current
 Investments (Investments intended to be held for not more than one
 year). Current Investments are carried at lower cost or fair value and
 provision is made to recognize any decline in the carrying value. Long
 Term Investments are carried at cost and provision is made to recognize
 any decline,
 
 other than temporary in the value of such investments. Unquoted
 investments are carried at cost. Cost includes purchase price plus
 brokerage and transfer cost.
 
 10) Excise Duty & Cess on Tea Production
 
 Excise Duty & Cess on tea as applicable on manufactured goods is
 accounted for at the time of clearance. However, provision for Cess is
 made at the year end on finished goods lying in stock at factory.
 
 11) Retirement Benefits
 
 a) Gratuities are paid in accordance with the Payment of Gratuity Act,
 1972 and accounted for, as and when paid/ payable.
 
 b) The Company contributes to the Employees Provident Fund maintained
 under the Employees Provident Fund Scheme run by the Central Government
 and are charged against revenue each year.
 
 c) Leave salary is accounted for on accrual basis.
 
 12) Income Tax
 
 Provision is made for Income-Tax on a yearly basis under the tax
 payable method based on tax liability as computed after taking credit
 for allowances, expenses and carry forward losses. In case of matters
 under appeal due to disallowance or otherwise, full provision is made
 when the said liabilities are accepted.
 
 Deferred tax is recognized subject to the consideration of prudence, on
 timing differences, being the difference between taxable income and
 accounting income that originate in one period and are capable of
 reversal in one or subsequent periods. Deferred tax assets are
 recognized for all deductible timing differences, unabsorbed
 depreciation and carry forward of losses only to the extent that there
 is virtual certainty that sufficient future taxable income will be
 available against which such deferred tax assets can be realized. The
 carrying amount of deferred tax assets/liability is reviewed at each
 balance sheet date and the consequential adjustments are carried out.
 
 13) Provisions
 
 A Provision is recognised when there is a obligation as a result of
 past event, it is probable that an outflow of resources will be
 required to settle the obligation and in respect of which reliable
 estimate can be made.
 
 14) Borrowing costs
 
 Borrowing Costs that are directly attributable to the acquisition,
 construction or production of qualifying assets are being capitalised
 as part of the cost of that assets and other borrowing costs are
 recognised as an expense of the year in which they are incurred.
 
 15) Grants/Subsidies
 
 Subsidies from government in respect of fixed assets are deducted from
 the cost of respective assets.
 
 Other subsidies are accounted for on accrual basis when one is
 reasonably certain of its receipt. Duty drawbacks are recognised as
 deduction in reporting the related expenditure.
 
 16) Foreign Currency Transactions
 
 Transactions in foreign currency are recorded at exchange rates
 prevailing on the date of the transactions.
 
 The foreign currency assets and liabilities (other than those covered
 by forward contracts) as on the Balance Sheet date are revalued in the
 accounts on the basis of exchange rate prevailing at the close of the
 year and exchange difference arising therefrom, is charged to the
 Profit & Loss Account.
 
 In case of transactions covered by forward contracts, the difference
 between the contract rate and exchange rate prevailing on the date of
 transaction is charged to the Profit & Loss Account, proportionately
 over the period of contract.