01. Accounting Convention
 
 The Financial Statements have been prepared in accordance with the
 historical cost convention.
 
 02.  Revenue Recognition
 
 The Company follows the mercantile system of accounting and recognized
 income and expenditure on accrual basis.
 
 03.  Use of Estimates
 
 The preparation of Financial Statements require Management to make
 estimates and assumptions that affect the reported amount of assets and
 liabilities and disclosures relating to the contingent liabilities and
 assets as at the Balance Sheet date and the reported amount of income
 and expenses during the year.
 
 04.  Sales
 
 Sales are exclusive of Sales Tax and Excise duty.
 
 05.  Fixed Assets
 
 Fixed Assets are stated at cost less accumulated depreciation.
 
 Cost includes purchase price and any directly attributable cost of
 bringing the assets to working condition for the intended use.
 
 Assets acquired under hire purchase scheme are treated as fixed assets
 on delivery, pending transfer of title subsequently as per the terms of
 hire purchase agreement.
 
 All Expenditure incurred on Extension Planting are capitalized.
 
 06.  Depreciation & Amortisation
 
 Depreciation on Fixed Assets has been charged on straight line method
 in accordance with Section 205(2) (b) of the Companies Act, 1956 and
 the rates of depreciation has been taken as prescribed in Schedule XIV
 to the Companies Act, 1956 , No provision has been made in respect of
 amortisation of Leasehold Land and Plantations.
 
 07.  Contingent Liabilities
 
 Contingent Liabilities are generally not provided for in the accounts
 and are separately shown in the Notes to the accounts.
 
 08.  Inventories
 
 Stock of Tea is valued at lower of cost or net realisable value and
 Stock of Tea Waste is valued at estimated realisable value.
 
 Cost is comprised of Materials, Labour and total Garden Overheads.
 
 Stock of Stores and Spare Parts are valued at cost on FIFO basis.
 
 As per practice followed by the Company value of green leaves in stock
 as at the close of the year, are not taken into accounts. 
 
 09. Investments
 
 Long term Investments are stated at cost. Provision for diminution of
 investment is made to recognize a decline, other than temporary. Gain /
 losses on disposal investment are recognized as income / expenditure.
 Dividends are accounted for when received.
 
 10. Insurance Claim
 
 Insurance claim is accounted for on acceptance / settlement.
 
 11    Excise Dutv and Cess on Tea production & Cenvat
 
 Excise duty and Cess on Tea Manufactured is accounted for at the time
 of clearance.
 
 However Provision for Excise duty and Cess is made at the year end on
 finished goods lying in stock.
 
 12. Employees Benefits The Company contributes to Provident Fund which
 are administered by duly constituted and approved authorities of
 Government.
 
 Liability in respect of Gratuity (being administered by a Trust) is a
 defined benefit, obtain and determined based on actuarial valuation
 made by an independent Sadat the balance sheet date. The actuarial
 gains or losses are recognised immediately in the profit and loss
 account.  
 
 Leave Encashment benefits are accounted for on accrual basis.
 
 13. Income Tax & Deferred Tax
 
 Provision is made for Income Tax 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 ,s made when the said
 liabilities are accepted. 
 
 Deferred Tax is calculated at current statutory income tax rate and s
 recognised on timing difference between income and accounting income
 that nominates; in one period and are capable of being reversal in one
 or subsequent period. Deferred tax assets subject to consideration of
 prudence, are recognised and carried forward only-to the extent that
 there is virtual certainty that sufficient future taxable income w II
 be ovarian Me against which such deferred tax assets can be realised.
 Deferred tax assets/Habits are reviewed at each Balance Sheet date
 based on development during the year and available case laws to
 reassess realization / liabilities.
 
 14. Government Grants 
 
 Revenue grants including subsidy / rebates are credited to Profit and
 Loss Account under Otherncome or deducted from the related expenses.
 Grants relating to fixed assets are credited to Capital Reserves
 Account or adjusted in the cost of such assets as the case may be, as
 and when the ultimate readability of such grants are established.
 
 15. Borrowing Costs
 
 Borrowing Cost that are directly attributable to the acquisition, const
 ruction or production of qualifying assets are being capitalised as
 part of the cost of that assets and other borrowing cost is recognised
 as expenses in the year in which they are incurred.
 
 16. Intangible Assets
 
 Expense incurred on research are expended as and when incurred and
 development expenses which satisfy the assets criteria are amortised
 over a period of 10 year.
 
 17.  Impairment of Assets
 
 The Company assesses at each Balance Sheet whether there is any
 indication that an asset may be impaired, if any such indication exist,
 the Company estimates the recoverable amount of the asset. If such
 recoverable amount of the asset or recoverable amount of the Cash
 Generating Unit to which the asset belongs, is less than its carrying
 amount, the carrying amount is reduced to its recoverable amount. The
 reduction is treated as an impairment loss and is recognised in the
 Profit and Loss Account. If at the Balance Sheet date, there is any
 indication that if a previously assessed impairment loss no longer
 exists, the recoverable amount is reassessed and the asset is reflected
 at the recoverable amount.
 
 As on the Balance Sheet date the carrying amount of the assets net of
 accumulated depreciation is not less than the recoverable amount of
 those assets. Hence there is no impairment loss on the assets of the
 company.