The Directors have pleasure in presenting their 100th Annual Report
 along with the Audited Accounts for the year ended December 31, 2010
 
 Financial Results
 
                                                      (Amount in Rs)
 
 Particulars
 
                                    December 31, 2010
 
                                                       December 31, 2009
 
 Profit before Interest, 
 
 Depreciation and Taxation              11,10,14,234       10,56,71,957
 
 Less: Depreciation                        94,41,785          92,69,410
 
 Interest and Finance Charges (net)      1,43,96,540        2,38,27,409
 
 Profit before taxation                  8,71,75,909        7,25,75,138
 
 Less: Provision for taxation (net)      1,56,04,969          18,42,684
 
 Profit after tax                        7,15,70,940        7,07,32,454
 
 Balance brought forward from 
 
 previous year                             47,14,876          27,51,782
 
 Surplus available for appropriation     7,62,85,816        7,34,84,236
 Appropriations:
 
 Transferred to General Reserve          5,00,00,000        6,00,00,000
 
 Proposed Dividend                       1,12,43,250          74,95,500
 
 Provision for tax on proposed dividend    18,23,937          12,73,860
 
 Balance carried forward to Balance 
 
 sheet                                   1,32,18,629          47,14,876
 
                                         7,62,85,816        7,34,84,236
 
 Basic and diluted earning per share            4.77               4.72
 
 Review of Performance
 
 The year under review, which is our centenary year, has indeed turned
 out to be a landmark year for the Company, wherein our turnover,
 average price realisation and net profit touched a record high. Owing
 to a change in the Indian tea consumption pattern, wherein consumers
 are ready to pay a premium for quality tea, which is high on demand.
 The same pattern is reflected in our average realisations, wherein the
 average price realisation of our tea has increased to Rs 119 compared to
 Rs 114 last year. The same trend is seen in our turnover, which has
 increased to Rs62.30 crores compared to Rs53.59 crores last year,
 inspite of curtailed production by the Company compared to last year.
 
 The Company is focused on making quality tea, catering to premium
 consumer markets. A careful approach has been adopted for making tea
 out of bought leaf. Production out of the same has reduced
 significantly compared to last year, which is also reflected in our
 overall production figures for the year. Even though own production
 increased to 39.88 lakh kgs compared to 38.18 lakh kgs last year,
 overall production declined due to a reduction in tea manufactured from
 the bought leaf segment. Uncertain weather conditions continued to
 prevail in tea growing areas and a drought like situation at the
 beginning of the year is now a recurring trend. However, with a backup
 of irrigation facilities, we have been able to reduce the negative
 impact of draught like situations in our tea estates. Moreover,
 improved field management coupled with better irrigation facilities
 have helped us reduce our crop loss even in uncertain weather
 conditions. Your Company continues to enjoy a premium in the domestic
 market because of its continued focus on making quality tea, which is
 also reflected in our overall performance.
 
 With continued focus on consolidating existing tea estates by way of
 uprooting, replanting/replacement planting of old bushes with new ones,
 focusing on producing quality tea and adopting cost cutting measures,
 your Company managed to maintain its growth momentum in operational and
 net profit respectively.
 
 Prospects
 
 Your Company is optimistic about the tea market in the coming year,
 particularly in the quality tea segment which has a commanding premium
 and is selling briskly in the market.  Fortunately, your Company falls
 under this category. Last years carry forward stock continues to be
 negligible, if not negative.  Further, the world crop has declined to
 25 million kgs till end April which could add fuel to the fire.
 
 With the continued increase in domestic consumption of tea of 3% CAGR,
 we expect a shortage to continue in the coming year which is likely to
 affect the overall price realisation of tea, particularly in quality
 tea segment which is projected to remain strong because of limited
 availability.
 
 The orthodox tea market is expected to remain buoyant in the coming
 year, which will propel producers in Assam to increase orthodox tea
 production. All these factors are likely to boost CTC tea price
 realisations in the current year.
 
 Subsidies will continue to be provided for additional orthodox tea
 production and on the exports of the same, which would result in higher
 exports, however, political turbulence in the Middle East, could prove
 detrimental to our exports. However, overall exports are expected to be
 at par with last year. Given the situation, we expect a stable market
 for quality tea. The Tea Board continues to provide benefits in the
 form of subsidies to producers, field and factory modernisation
 efforts, as well as long-term loans through the SPTF scheme, which your
 Company is taking the full benefit of.
 
 The North Bengal tea industry is facing an uncertain situation as far
 as wage revisions are concerned which is due from April 1, 2011. These
 revisions will definitely increase garden costs significantly as the
 tea industry is labour intensive in nature.
 
 Given the prevailing scenario of the tea industry, and the steps taken
 by the Company to consolidate its existing operations through
 quality-enhanced produce with cost cutting measures supported by
 favourable market condition for quality tea, your Company is confident
 of improving its performance and growth in the coming years.
 
 Dividend
 
 The Board has recommended a Dividend of Rs 0.75 per equity Share (i.e.
 15%) for the year ended December 31, 2010 and such dividend, on
 approval, will be paid to those members recorded in the registers of
 the Company at the close of business on the date of the Annual General
 Meeting, subject, however, to the provision of Section 206A of the
 Companies Act, 1956.
 
 Personnel
 
 None of the employees of the Company received remuneration exceeding
 the limit specified under Section 217(2A) of the Companies Act, 1956
 read with Companies (Particulars of Employees) Rules, 1975 as amended.
 
 We recognise people as our most valuable asset and cordial relations
 with the employees were maintained at all Company locations during the
 year. The Board would like to place on record its appreciation for the
 keen interest taken by employees at all levels to bring about
 improvements in the difficult circumstances faced by the tea industry.
 
 Conservation of Energy, Technology Absorption and Foreign Exchange
 Earning and Outgo
 
 Information pursuant to Section 217(2)(e) of the Companies Act, 1956
 read with the Companies (Disclosures of Particulars in the Report of
 Board of Directors) Rules, 1988 relating to conservation of energy and
 technology absorption, foreign exchange earning and outgo are given by
 way of Annexure A to this Report.
 
 Directors
 
 Mr. Naresh Pachisia retires by rotation and being eligible, offers
 himself for re-appointment.
 
 Corporate Governance
 
 In compliance with the disclosures required under the said Clause 49 of
 the Listing Agreement, a Management Discussion and Analysis Report is
 provided in Annexure B.
 
 The Report on Corporate Governance as required under the aforesaid
 Clause is also provided in Annexure C to this Report, together with
 the Auditors compliance certificate thereon.
 
 Directors Responsibility Statement
 
 As stipulated, your Directors affirm their commitment to the Directors
 Responsibility Statement as below:
 
 The Directors state that in preparation of the Annual Accounts, your
 Company has followed the applicable accounting standards except
 gratuity liability being accounted for, as and when paid/payable. The
 Directors have selected such accounting policies and applied them
 consistently and made judgements and estimates that are reasonable and
 prudent so as to give a true and fair view of the state of affairs of
 your Company as on December 31, 2010 and the profit for the year.
 
 The Directors have taken proper and sufficient care for the maintenance
 of adequate accounting records in accordance with the provisions of the
 Companies Act, 1956 for safeguarding the assets of your Company and for
 preventing and detecting frauds and other irregularities. The Annual
 Accounts of your Company has been prepared on a going concern basis.
 
 Auditors Report
 
 The remarks raised by Auditors in their report are self- explanatory
 and therefore do not call for any further comments.
 
 Auditors
 
 Messrs Das & Prasad, Chartered Accountants, retire at the end of the
 ensuing Annual General Meeting and being eligible, offer themselves for
 re-appointment.
 
 Appreciation
 
 Your Directors wish to place on record their appreciation to the
 financial institutions, Bankers and Shareholders for their
 continued assistance and co-operation as well as confidence
 reposed in the Company. Your Directors also thanks the
 Executives, Staff and Workers for their sincere and dedicated
 services.
 
                                      For and on behalf of the Board
 
                                                   Sandeep Singhania
 
                                                   Managing Director
 
 Registered Office
 
 3B, Lai Bazar Street
 
 Kolkata-700 001.
 
 Date: May 14, 2011