1. Basis of Accounting:
 
 (a) General:
 
 The Financial Statements have been prepared under the Historical Cost
 Convention on the basis of Going Concern Concept in accordance with the
 generally accepted accounting principles and the provisions of the
 Companies Act, 1956 as adopted consistently.
 
 (b) Revenue Items:
 
 Items of incomes and Expenses are accounted for on the Accrual Basis,
 unless otherwise specifically stated hereunder in this Schedule
 
 (c) Fixed assets
 
 Fixed assets are carried at cost of acquisition and / or revalued
 figures less depreciation.The cost of extension of Planting cultivable
 Land including cost of development is capitalized.
 
 (d) Depreciation
 
 i Depreciation has been provided on assets acquired and/or purchased
 prior to 01.04.87 on WDV method as per the WDV rates under Schedule XIV
 of the Companies Act,(as amended) 1956
 
 ii On assets acquired after 1.4.87 on SLM basis as per the SLM rates
 prescribed under Schedule XIV of the Companies Act, (as amended) 1956.
 
 iii Depreciation for the 6 months period includes depreciation on
 revalued items of Fixed Assets amounting to Rs.69,321.96 and
 accordingly an equivalent amount has been transferred to Profit & Loss
 Account from Revaluation Reserve Account.
 
 (e) Investments:
 
 Investments have been stated at cost.
 
 (f) Stock In Trade:
 
 Inventories are valued at as under:
 
 i Stores and Spare Parts-At Cost
 
 ii Stock of unsold Tea-At Estimated net realizable value
 
 iii Stock of Nursery Plants-At Estimated net relizable value
 
 (g) Taxation
 
 Current Tax is determined on the basis of the amount of tax payable
 under the Income Tax Act, 1961 if any. Deferred tax liability is
 recognised and carried forward and there is reasonable certainty that
 sufficient taxable income will be available against which such deferred
 tax liability can be adjusted.
 
 (h) Contingent Liabilities;
 
 Contingent Liabilities, if any not provided for are disclosed by way of
 Notes on Accounts.