a) Accounting Convention
 
 The financial statements have been prepared in accordance with
 historical cost convention, on accrual basis, in accordance with the
 generally accepted accounting principles in India, the applicable
 mandatory Accounting Standards and the relevant provisions of Companies
 Act, 1956.
 
 b) Use of Estimates
 
 The preparation of financial statements require 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 actual results and estimates are recognized in the
 period in which the results are known/materialised.
 
 c) Fixed Assets and Depreciation
 
 Fixed Assets
 
 i) Fixed Assets are stated at their original cost less depreciation.
 Cost includes incidental expenses. Profits or Losses on sale of fixed
 assets are included in the profit and loss account and calculated as
 difference between the value realized and book value. Capital
 work-in-progress is stated at cost.
 
 ii) Items of machinery spares to be used in connection with an item of
 fixed assets are amortized over the useful life of the assets.
 
 Depreciation
 
 iii) Depreciation on fixed assets other than land and tea plantation is
 provided on written down value basis in accordance with the provisions
 of Schedule XIV of the Companies Act, 1956.
 
 iv) All expenses incurred for extension of new areas of cultivation are
 capitalized. Cost of upkeep and maintenance of areas till not matured
 for plucking and cost of replanting in existing areas are charged to
 revenue.
 
 v) Intangible assets are being amortized over a period of 5 years.
 
 d) Government Grants
 
 Government grants related to specific fixed assets are deducted from
 gross value of related assets in arriving at their book value.
 Government grants related to revenue are recognized in the profit &
 loss account.
 
 e) Investment
 
 Long term and unquoted investments are considered at cost, unless there
 is a permanent decline in value thereof, in which case, adequate
 provision is made in the accounts. Current investments are stated at
 lower of cost or market/fair value.
 
 f) Inventories
 
 i) Stock of tea, coffee and minor produce (i.e. pepper and cardamom)
 are valued at cost (determined on weighted average basis) or net
 realizable value whichever is lower.
 
 ii) Stock of stores and spare parts are valued at cost (using the
 weighted average cost basis) or net realizable value whichever is
 lower.
 
 iii) Cost comprises all direct and indirect expenses.
 
 iv) Net realizable value is the estimated selling price in ordinary
 course of business less estimated cost of completion and estimated cost
 necessary to make the sale.
 
 v) Materials and other items held for use in the production of
 Inventories are not written down below the cost of the finished
 products in which they will be incorporated are expected to be sold at
 or above cost.
 
 vi) Provision is made for obsolete and slow moving stocks where
 necessary.
 
 g) Foreign Currency Transactions
 
 i) Foreign currency transactions are recorded at the rate of exchange
 prevailing on the dates when the relevant transactions take place.
 
 ii) Year end balances of foreign currency transactions are translated
 at exchange rates prevailing at the end of the year.
 
 iii) Any income or expense on account of exchange difference either on
 settlement or translation is recognized in the profit and loss account.
 
 h) Revenue Recognition
 
 Sales are recognized in the accounts on passing of titles of the goods,
 i.e. delivery as per terms of sales or completion of auction in case of
 auction sale. Other income with related tax credits and expenditure are
 accounted for on accrual basis.
 
 i) Employee Benefits
 
 Short Term Employee Benefits
 
 The undiscounted amount of short term employee benefit expected to be
 paid in exchange for the services rendered by employee is recognized
 during the period when the employee rendered the service. This benefit
 includes salary, wages, short term compensatory absences and bonus.
 
 Long Term Employee Benefits
 
 Defined Contribution Scheme
 
 This benefit includes contribution to provident fund schemes and
 superannuation fund. The contribution is recognized during the period
 in which the employee renders service.
 
 Defined Benefit Scheme
 
 For defined benefit scheme the cost of providing benefit is determined
 using the projected unit credit method with actuarial valuation being
 carried out at each balance sheet date. The benefit obligation
 recognized in the balance sheet represents value of defined benefit
 obligation determined at the end of the year. Actuarial gains and
 losses are recognized in full during the period in which they occur.
 
 Other Long Term Benefits
 
 Long term compensation absence is provided for on the basis of an
 actuarial valuation, using the projected unit credit method as at the
 date of balance sheet.
 
 j) Borrowing Costs
 
 Borrowing costs, if attributable to qualifying assets (i.e. assets that
 necessarily take substantial period of time to get ready for its
 intended use or sale) are capitalized. Other borrowing costs are
 charged to profit & loss account in the period they are incurred.
 
 k) Taxes on Income
 
 Current Tax comprise of Income Tax and Wealth Tax that would be payable
 based on computation of tax as per taxation laws under the Income Tax
 Act, 1961 and under the respective state Agricultural Income Tax Acts.
 Deferred Tax is recognised, subject to the consideration of prudence,
 on timing differences, 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 not recognised unless there
 is virtual certainty that sufficient future taxable income will be
 available against which such deferred tax assets can be realised. Tax
 credit for Minimum Alternate Tax (MAT) is recognized when there is
 convincing evidence of its readability against future normal tax
 liability.
 
 I) Leases
 
 i) For assets acquired under operating lease, rentals payable are
 charged to the profit & loss account.
 
 ii) For assets acquired under finance lease/hire purchase agreement,
 the assets are capitalized at lower of their respective fair value and
 present value of minimum lease payments after discounting them at an
 appropriate discount rate.
 
 iii) Hire purchase charges are being amortized based on a constant
 periodic rate of interest on the remaining balance of the liability of
 each period.
 
 m) Impairment
 
 An impairment loss is recognized where applicable when the carrying
 value of fixed assets exceeds its market value or value in use
 whichever is higher. Reversal of impairment losses recognized in prior
 years is recorded when there is an indication that the impairment
 losses recognized for the assets no longer exist or have decreased.
 
 n) Provisions and Contingent Liabilities
 
 The Company recognizes a provision when there is a present obligation
 as a result of a past event that probably requires an outflow of
 resources and a reliable estimate can be made of the obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources. Where there is a possible obligation
 or a present obligation and the likelihood of outflow of resources is
 remote, no provision or disclosure for contingent liability is made.
 Contingent assets are not provided for or disclosed.