1.1 Basis of Accounting:
 
 The Accounts have been prepared on the historical cost basis adjusted
 by the revaluation of certain Fixed Assets and in accordance with the
 provision of the Companies Act, 1956 and accounting standards notified
 vide Companies (Accounting Standards) Rules, 2006.
 
 All expenses and income, unless specifically stated to be otherwise,
 have been accounted for on mercantile basis and are consistent with
 generally accepted accounting principles.
 
 1.2 Use of Estimates:
 
 The preparation of financial statements require the management to make
 estimates and assumptions that effect the reported amount of assets and
 liabilities and disclosures relating to contingent liabilities and
 assets as at the balance sheet date and the reported amounts of income
 and expenses during the year. Differences between the actual results
 and the estimates are recognised in the year in which the results
 become known/materialise.
 
 1.3 Fixed Assets and Depreciation:
 
 Fixed Assets as revalued from time to time are stated at revalued
 amounts less depreciation.
 
 Fixed Assets other than the above are stated at cost less depreciation.
 
 Expenditure on new tea planting is capitalised. In the case of new tea
 areas taken up as projects, all expenditure till the plantation reaches
 the full bearing stage is capitalised.
 
 Cost of up-keep and maintenance of young tea is charged to revenue.
 
 Certain Plant and Machinery have been considered as continuous process
 plant on technical assessment.
 
 Depreciation on Fixed Assets, including on revaluation, has been
 provided for as under:
 
 For additions upto December, 1975, on Reducing Balance Method in the
 manner and at the rates specified in Schedule XIV to the Companies Act,
 1956 and subsequently on Straight Line Method in keeping with the
 aforesaid Schedule XIV or at the rates applicable at the time of
 installation/acquisition thereof.
 
 In case of revalued assets, depreciation has been provided on Straight
 Line Method based on useful life either assessed technically or derived
 with respect to the rates specified in Schedule XIV to the Companies
 Act, 1956.
 
 An amount equivalent to the additional charge of depreciation due to
 revaluation is transferred to Profit and Loss Account from Revaluation
 Reserve.
 
 1.4 Impairment:
 
 Fixed Assets are reviewed at each Balance Sheet date for impairment. In
 case events and circumstances indicate any impairment, recoverable
 amount of fixed assets is determined.  An impairment loss is recognised
 whenever the carrying amount of assets either belonging to Cash
 Generating Unit (CGU) or otherwise exceeds recoverable amount. The
 recoverable amount is greater of assets net selling price or its value
 in use. An impairment loss is reversed if there has been change in the
 recoverable amount and such loss either no longer exists or has
 decreased.
 
 1.5 Investments:
 
 Investments being long term in nature are stated at cost. Diminution in
 values thereof, other than temporary in nature, are adjusted therefrom
 and recognised in the Profit and Loss Account.
 
 1.6 Inventories:
 
 Inventories are valued at lower of cost or net realisable value.
 
 In determining cost for own manufactured materials, manufacturing costs
 comprise of material, labour and other appropriate overheads.
 
 Cost for Raw Material, Stores and Spare Parts are valued on weighted
 average basis and for the tea stock on First in first out basis.
 
 1.7 Employee Benefits:
 
 Employee benefits are accrued in the year services are rendered by the
 employees.
 
 Contribution to defined contribution schemes such as Provident and
 Family Pension Fund etc. are recognized as and when incurred.
 
 Long term employee benefits under defined benefit scheme such as
 contribution to gratuity, leave, superannuation, provident fund etc.
 are determined at close of the year at present value of the amount
 payable using actuarial valuation techniques.
 
 Actuarial gain and losses are recognized in the year when they arise.
 
 1.8 Foreign Currency Transactions:
 
 Transactions in foreign currency are accounted for, at the exchange
 rate prevailing on the date of the transaction. Foreign currency
 monetary assets and liabilities at the year-end are translated using
 the closing exchange rates. The loss or gain thereon and also on the
 exchange differences on settlement of foreign currency transaction
 during the year are recognised as income or expenses and are adjusted
 to the Profit and Loss Account under respective heads of accounts.
 
 1.9 Research and Development:
 
 Expenditure on research and development (other than those relating to
 Fixed Assets) including contribution to research associations is
 charged against the profit for the year in which it is incurred.
 
 1.10 Sales:
 
 Sales are recognised on passing of property in the goods. Consignment
 sales are accounted for on receipt of the relevant account sales.
 
 1.11 Grants and Subsidies from Government:
 
 Grants from Government relating to Fixed Assets are shown as a
 deduction from the gross value of Fixed Assets and those in the nature
 of Project Capital Subsidy, are credited to Capital Reserve. Other
 Government grants including subsidies, incentives, duty drawback, etc.
 are credited to Profit and Loss Account or deducted from the related
 expenses.
 
 1.12 Revenue Recognition:
 
 Fertiliser subsidy in the form of Retention Price Support (RPS) is
 considered on the basis of quantity sold after taking into
 consideration notification issued by Government of India from time to
 time. Catalyst cost (excepting premature replacements, which are
 written off) is charged on the basis of useful life as per Management''s
 technical evaluation. Replacement of certain high value spare parts in
 the Fertiliser Division, being non-recurring and enduring in nature, is
 capitalised.
 
 1.13 Borrowing Cost:
 
 Borrowing cost in relation to the acquisition or construction of a
 qualifying asset is capitalized as part of the cost of such assets.
 Other borrowing costs are charged as expenses in the year in which they
 are incurred.
 
 1.14 Income Tax:
 
 Provision for tax is made for both current and deferred taxes. Current
 tax is provided on the taxable income using the applicable tax rates
 and tax laws. Deferred tax assets and liabilities arising on account of
 timing differences, which are capable of reversal in subsequent
 periods, are recognised using tax rates and tax laws which have been
 enacted or substantively enacted. Deferred tax assets are not
 recognised unless there is sufficient assurance for reversal of the
 same in future years.
 
 1.15 Provisions, Contingent Liabilities and Contingent Assets:
 
 Provisions involving substantial degree of estimation in measurement
 are recognized 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 provided for but disclosed by way of
 Notes to the Accounts. Contingent assets are neither recognized nor
 disclosed in the financial statements.