(a) These Financial Statements are prepared to comply in all material
 aspects with all the applicable accounting principles in India, the
 applicable accounting standards notified under Section 211 (3C) of the
 Companies Act, 1956 (the ''Act'') and the relevant provisions of the Act.
 
 (b) Fixed Assets
 
 Fixed assets are stated at cost less accumulated depreciation and
 cumulative Impairment losses, if any. Cost includes duties, taxes,
 incidental expenses, erection/commissioning expenses and borrowing cost
 attributable to qualifying assets up to the date, the asset is put to
 use. The cost of extension planting on cultivable land including cost
 of development is capitalised.
 
 In respect of spares for specific machinery cost of such spare is
 amortised over the useful lives of the related machinery as estimated
 by the management.
 
 (c) Intangible Assets
 
 Costs incurred on intangible assets, resulting in future economic
 benefits are capitalized as intangible assets.
 
 (d) Depreciation & Amortisation
 
 Depreciation is calculated in the manner and at applicable rates
 specified in Schedule XIV of the Companies Act, 1956 under straight
 line method except in respect of the following where written down value
 method is followed:
 
 a) In case of Company''s Engineering (MICCO) Division.
 
 b) In respect of Tea Division assets transferred/acquired from Kothari
 Plantations and Industries Limited.
 
 c) In respect of the assets acquired before April, 2001 of GIS Cotton
 Mill Limited amalgamated with the Company.  Lease hold land is
 amortised over the lease period.
 
 Computer software is amortised over a period of five years.
 
 (e) Impairment of Assets
 
 The carrying amounts of assets are reviewed at each balance sheet date
 to determine, if there is any indication of impairment based on
 internal/external factors. An impairment loss is recognised wherever
 the carrying amount of the fixed assets of a cash generating unit
 exceeds its net selling price or value in use whichever is higher.
 
 (f) Investments
 
 Long Term Investments are stated at cost with an appropriate provision
 for diminution in value, other than temporary in nature, in the
 valuation of long term investments. Current Investments are stated at
 lower of cost and fair value.  Gains/Losses on disposal of investments
 are recognised as income/expenditure.
 
 (g) Foreign Currency Transactions
 
 Transactions in foreign currencies are recognised at the rate existing
 at the time of such transactions. Gain or Loss resulting from the
 settlement of such transactions is recognised in the Profit and Loss
 Account. At the Balance Sheet date, monetary items denominated in
 foreign currency are translated at year-end rates or the forward cover
 rates as applicable. The resultant translation differences, if any, are
 recognised in the profit and loss account.
 
 (h) Inventories
 
 Inventories are valued as under: -
 
 i) Stores and Spare Parts - At cost (on weighted average basis) or net
 realisable value whichever is lower.
 
 ii) Raw Materials - At cost (on weighted average basis) or net
 realisable value whichever is lower.
 
 iii) Stock-in-Process
 
 Is valued with material at lower of weighted average cost and market
 rate and estimated conversion cost.
 
 iv) Stock-in-Trade/Contract-in- Progress
 
 Tea – At cost or net realisable value whichever is lower.
 
 For long term contracts, contract in progress is valued at realisable
 value and provision for losses, as may be estimated for completion
 thereof.
 
 Others – At cost or net realisable value whichever is lower.
 
 v) Waste / Scrap - Waste and Scrap are valued at estimated realisable
 value.
 
 (i) Employee Benefits
 
 Short Term Employee Benefits (i.e. benefits payable within one year)
 are recognized in the period in which employee services are rendered.
 
 Contributions to Defined Contribution schemes such as Provident Fund,
 etc. are charged to the Profit and Loss Account as incurred. In respect
 of certain employees, Provident Fund contributions are made to Trust
 Funds administered by the Company. The interest rate payable to the
 members of the Fund shall not be lower than the statutory rate of
 interest declared by the Central Government under the Employees
 Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall,
 if any, shall be made good by the Company. The remaining contributions
 are made to a government administered Provident Fund towards which the
 company has no further obligations beyond its monthly contribution.
 Contribution under Employee''s Pension Scheme is made as per statutory
 requirements and charged as expenses for the year.
 
 The Company provides for gratuity and leave encashment (Defined Benefit
 plans) based on year end actuarial valuation.
 
 Actuarial gains/losses arising under Defined Benefit Plans are
 recognised immediately in the Profit and Loss Account as income/expense
 for the year in which they occur.
 
 (j) Provisions, Contingent Liabilities and Contingent Assets
 
 i) Provisions are recognised for liabilities that can be measured only
 by using a substantial degree of estimation, if
 
 a) the Company has a present obligation as a result of a past event,
 
 b) a probable outflow of resources is expected to settle the
 obligation, and
 
 c) the amount of the obligation can be reasonably estimated.
 
 ii) Reimbursement expected in respect of expenditure required to settle
 a provision is recognised only when it is virtually certain that the
 reimbursement will be received. Contingent liability is disclosed in
 case of
 
 a) present obligation arising from past events, when it is not probable
 that an outflow of resources will be required to settle the obligation;
 
 b) present obligation when no reliable estimate is possible, and
 
 c) a possible obligation arising from past events where the probability
 of outflow of resources is not remote.
 
 iii) Contingent Assets are neither recognised, nor disclosed.
 
 Provisions, Contingent Liabilities and Contingent Assets are reviewed
 at each Balance Sheet date.
 
 (k) Recognition of Income and Expenditure
 
 Items of income and expenditure are recognised on accrual and prudent
 basis. Revenue from Construction Contracts is recognised based on the
 percentage completion method stated on the basis of physical
 measurement of work actually completed at the Balance Sheet date taking
 into account the contractual price and revision thereto. Dividends are
 accounted for to the extent declared within the accounting year.
 
 (l) Taxes on Income
 
 Income tax expense comprises current tax and deferred tax charge.
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the year based on applicable tax rates and laws.
 Deferred tax is recognised 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 more subsequent periods.
 Deferred tax assets are recognised only if there is reasonable /
 virtual certainty that sufficient future taxable income will be
 available against which such deferred tax assets will be realised. Such
 assets are reviewed as at each Balance Sheet date to reassess the
 realisability thereof.
 
 (m) Leases
 
 For assets acquired under Operating lease, rentals payable are charged
 to Profit and Loss Account. Assets acquired under Finance Lease are
 capitalised at lower of the Fair Value and Present Value of Minimum
 Lease Payments. Lease income from operating leases is recognised in the
 Profit and Loss Account over the period of Lease.
 
 (n) Government Grants
 
 Government Grants related to specific fixed assets are deducted from
 gross values of related assets in arriving at their book value.
 Government Grants related to revenue are recognised in Profit and Loss
 Account.
 
 (o) Borrowing Costs
 
 Borrowing costs that are attributable to the acquisition, construction
 or production of a qualifying asset are capitalised as part of cost of
 such asset till such time as the asset is ready for its intended use or
 sale. A qualifying asset is an asset that necessarily requires a
 substantial period of time to get ready for its intended use or sale.
 All other borrowing costs are recognised as an expense in the period in
 which they are incurred.