1.  Contingent Liabilities
 
 1.1 Claims against the Company not acknowledged as debts :
 
                                 31st March 2011      31st March 2010
 
                                   Rs. Lakhs          Rs. Lakhs
 
 Sales Tax :                          26.37             27.53
 
 Electricity Dues                     32.47             29.27
 
 Assam Pollution Control Board         7.41              9.92
 
 Provident Fund                       68.43             68.43
 
 Income Tax                           79.49             84.59 
 
 Service Tax                          75.48                -
 
 Others                                4.95             12.84
 
 1.2 (a) Guarantees given on behalf of other companies to bank,
 Financial institutions etc.  -
 
 limit Rs. Nil (31st March 2010 - Rs. 1000.00 lakhs); Year end
 utilisation Rs.Nil (31st March 2010 - Rs. Nil)
 
 (b) Guarantees given on behalf of a subsidiary - Rs. 11745.46 lakhs
 (31st March 2010 - Rs.  11935.94 lakhs); Year end utilisation Rs.
 7938.19 lakhs (31st March 2010 - Rs. 10306.47 lakhs).
 
 1.3 Bank Guarantees Rs. 83.28 lakhs (31st March 2010 - Rs. 89.04 lakhs)
 
 1.4 Bills Discounted - Rs. 2445.65 lakhs (31st March 2010- Rs. 6452.41
 lakhs)
 
 2.  TAXATION
 
 2.1 Current Tax charge for the year has been reckoned after taking into
 account, benefit under Section 33AB of the Income Tax Act, 1961 (which
 are available on timely deposit of required amount with development
 bank).
 
 3.  Estimated Capital Commitment on account of contracts remaining to
 be executed and not provided for at the year-end is Rs. 1030.07 lakhs
 (31st March 2010 - Rs. 904.63 lakhs). Such commitment, net of advances,
 is Rs. 494.44 lakhs (31st March 2010 - Rs. 313.77 lakhs).
 
 4.  Advances include :-
 
 Loan to directors Rs. 10.16 lakhs (31st March 2010 - Rs. 13.46 lakhs)
 [Maximum amount due during the year Rs. 13.46 lakhs (31st March 2010 -
 Rs. 16.76 lakhs)] being originally initiated as advances to employees
 in the books of Eveready Industries India Limited, taken over in terms
 of a Scheme of Arrangement in 2004-05.
 
 5.  Business Segment
 
 The Company is primarily engaged in the business of cultivation,
 manufacture and sale of tea and is managed organisationally as a single
 unit. Accordingly, the Company is a single business segment company.
 
 6.  Information given in accordance with the requirement of Accounting
 Standard 18 on Related Party Disclosures prescribed under the Act: -
 
 (A) List of Related Parties
 
 Where control exists:
 
 - Subsidiaries:
 
 Borelli Tea Holdings Limited (BTHLJ
 
 Phu Ben Tea Company Limited (PBTCL)
 
 Rwenzori Tea Investments Limited (RTI)
 
 McLeod Russel Uganda Limited (MRULJ formerly known as James Finlay
 (Uganda) Limited (JFUL)
 
 Olyana Holdings LLC (OLYANA)
 
 7. In connection with an overseas acquisition of a subsidiary in 2005,
 the Income Tax authority had raised a demand of Rs.5278 lakhs during
 the year 2009-10 on the Company on account of alleged non- deduction of
 tax at source and interest thereon pertaining to the transaction. The
 Company has challenged the said demand before the appropriate
 authorities and the matter is pending. Further, the Company has
 obtained a stay against the said demand from the Honble High Court of
 Calcutta. In any event, as per the related Share Purchase Agreement,
 Capital Gain tax or other tax, if any, relating to sale of shares etc.
 is to be borne by the seller and not the Company.
 
 b) Green Leaf plucked (being raw material consumed) were harvested in
 the Companys own estates as agricultural produce involving integrated
 activities of nursery, cultivation, growth etc., and utilised in the
 manufacture of tea and its value at the intermediate stage is not
 readily ascertainable.
 
 8. Salaries, Wages and Bonus excludes Rs. 1003.02 lakhs (31st March
 2010 - Rs. 891.51 lakhs) and Stores and Spares consumed excludes Rs.
 2396.75 lakhs (31st March 2010 - Rs. 1927.23 lakhs) debited to other
 accounts.
 
 9.  Items of Expenditure in the Profit and Loss Account include
 reimbursements to and by the Company.
 
 10.  Previous years figures have been rearranged / regrouped wherever
 necessary to make comparable with current years figures.