I.  ACCOUNTING CONVENTION
 
 The financial statements have been prepared on the historical cost
 convention in accordance with the generally accepted accounting
 principles and comply in all material respects with the accounting
 standards notified by Companies (Accounting Standards) Rules, 2006 and
 the relevant provisions of the Companies Act 1956.
 
 II.  FIXED ASSETS AND DEPRECIATION
 
 Fixed Assets are stated at historical cost less depreciation. Cost
 includes, taxes and duties (but does not include taxes and duties for
 which CENVAT / VAT credit is available), freight and other direct or
 allocated expenses during construction period, net of any income
 earned. Assets acquired on hire purchase and capitalised at principal
 value.
 
 Depreciation is provided at the rates specified in Schedule XIV to the
 Companies Act, 1956 on written down value method. Assets costing
 individually less than Rs. 5,000/- are depreciated at 100%. On
 additions to and deductions from Fixed Assets, depreciation is provided
 on pro-rata basis.
 
 III.  IMPAIRMENT OF ASSETS
 
 The Company reviews the carrying amounts of its assets for any possible
 impairment at each balance sheet date. An impairment loss is recognised
 when the carrying amount of an asset exceeds its recoverable amount and
 the impairment loss, if any, is recognised in the Profit and Loss
 Account.
 
 IV.  BORROWING COSTS
 
 Borrowing costs that are directly attributable to the
 acquisition/construction of the qualifying asset are capitalised as a
 part of the cost of such asset, upto the date of acquisition/completion
 of construction.
 
 Other borrowing costs are recognised as expense as and when incurred.
 
 V.  INVESTMENTS
 
 Long term investments are stated at cost. Decline in value of long term
 investments, other than temporary, is provided for. Current Investments
 are stated at lower of cost and fair value. Investment in Immovable
 properties is stated at cost less depreciation.
 
 VI.  INVENTORIES
 
 Inventories are valued at lower of cost on weighted average/FIFO basis
 and net realisable value, after providing for obsolescence wherever
 considered necessary. Cost includes taxes and duties (other than duties
 and taxes for which CENVAT / VAT credit is available), freight and
 other direct expenses.
 
 VII.  REVENUE RECOGNITION
 
 Revenue is recognised on their accrual and when no significant
 uncertainty on measurability or collectability exists.  Expenditure is
 accounted for on their accrual.
 
 VIII. EMPLOYEE BENEFITS
 
 Gratuity liability, which is a defined benefit scheme and provision for
 leave encashment is accrued and provided for on the basis of
 independent actuarial valuation made at the end of each financial year.
 Actuarial gains and losses are recognised in the Profit and Loss
 Account and are not deferred.
 
 Retirement benefits in the form of Provident Fund, Family Pension Fund
 and Superannuation Schemes, which are defined contribution schemes, are
 charged to the Profit and Loss Account of the year when the
 contribution to the respective funds accrue.
 
 IX.  FOREIGN CURRENCY TRANSACTIONS
 
 Foreign Currency transactions are recorded at the rates of exchange in
 force at the time transactions are effected. In case of forward
 contracts, the difference between forward rate and exchange rate on the
 date of transaction is dealt with in the Profit and Loss Account on the
 completion of the transaction. Monetary items denominated in foreign
 currency and outstanding at the Balance Sheet date are converted at the
 year and exchange rate and resultant gain or loss is dealt with in the
 Profit and Loss Account.
 
 X.  GOVERNMENT GRANTS
 
 Subsidies from Government in respect of fixed assets are deducted from
 the cost of respective assets as and when they accrue.
 
 Subsidies related to revenue are recognised in the profit and loss
 statement to match them with the related costs which they are intended
 to compensate.
 
 XI.  TAXES ON INCOME
 
 Provision for Income-Tax is made for both current and deferred tax.
 Provision for current income tax is made on the assessable income at
 the tax rate applicable to the relevant assessment year. Deferred tax
 is accounted for by computing the tax effect of the timing difference
 which arise during the year and reverse out in the subsequent periods.
 Deferred tax is calculated at the tax rates substantively enacted by
 the Balance Sheet date. Deferred tax assets are recognised only if
 there is a virtual certainty that they will be realised.
 
 XII.  EXPENDITURE ON NEW PLANTING
 
 Direct Expenditure on new planting of different crops (other than Minor
 Produce) including upkeep and maintenance expenditure on immature
 plants are capitalised under “Development”.
 
 XIII. EXPENDITURE ON REPLANTING
 
 Direct Expenditure on replating of Tea including upkeep and maintenance
 expenditure on immature plants is charged to Profit and Loss Account
 with credit as to Subsidy on replanting of Tea as Revenue.