1.  Basis of Presentation
 
 The accounts have been prepared using historical cost convention and on
 the basis of going concern concept. Accounting policies not referred to
 otherwise are consistent with generally accepted accounting policies.
 
 2.  Fixed Assets
 
 Fixed Assets are stated at cost less accumulated depreciation. Cost
 includes cost of acquisition and all direct expenses relating thereto.
 
 3.  Depreciation
 
 Depreciation on Fixed Assets are provided on the basis of Straight Line
 Method and at the rates specified in Schedule XIV to the Companies Act,
 1956.
 
 4.  Investments
 
 Current investments are carried at lower of cost and quoted value. Long
 Term Investments are stated at cost.Provision for diminution in the
 value of long term investments is made only if such a decline is other
 than temporary.
 
 5.  Inventories
 
 Inventories are valued at lower of cost or net value since
 realized/estimated net realizable value.
 
 6.  Recognition of Revenue
 
 i) Sales represent invoice value of goods sold and are exclusive of
 Sales Tax but inclusive of discount, rebate and all incidental expenses
 relating thereto.
 
 ii) Income & Expenditure are recognized on accrual basis, except rates
 and taxes and certain petty items which can not be estimated with
 reasonable certainty.
 
 7.  Borrowing Cost
 
 Interest and other costs on borrowed funds used to finance the
 acquisition of fixed assets, upto the date the assets are ready for use
 are capitalised under respective fixed assets on a rational basis.
 
 Other interest and costs incurred on borrowed funds are recognized as
 expenses in the year in which they are incurred.
 
 8.  Excise Duty and Cess
 
 Excise Duty payable on Black Tea has been accounted for on the basis of
 both, payments made in respect of tea cleared from factory and also
 provision made for tea made lying at factory.
 
 9.  Accounting for Taxes on Income
 
 Current tax is recognized as per Income Tax Act, 1961 based on
 applicable tax rates & laws. Deferred Tax is recognized subject to
 consideration of prudence on timing differences being differences
 between taxable and accounting income/expenditure that originate in one
 period and are capable of reversal in one or more subsequent period(s)
 and is measured using tax rates and laws that have been - enacted or
 substantially enacted as at the balance sheet date. Deferred Tax assets
 are recognized unless there is virtual certainty that sufficient future
 taxable income will be available against which such Deferred Tax assets
 will be realized.
 
 10.  Employee Benefits
 
 i) Short-term Employee Benefits
 
 The undiscounted amount of short-term employee benefits expected to be
 paid in exchange for the services rendered by employees is recognized
 during the period when the employee renders the service except leave
 encashment.
 
 Leave Encashment: For Internal control, leave as per management''s
 policy is not to be accumulated but availed of and the employees have
 been advised to plan their leave in advance while in service and
 immediately before superannuation. Leave not availed is not encashable.
 
 ii) Post employment benefits plans
 
 Contribution under defined contribution plans payable in keeping with
 the related schemes are recognized as expenses for the year.  For
 defined benefit plans, the cost of providing benefit is recognized as
 and when paid.
 
 iii) Other long-term employment benefits (Unfunded)
 
 The cost of providing long-term employees benefits is generally
 recognised on cash basis.
 
 11.  Government Grants
 
 Remission of Sales Tax Under State Incentive Scheme, had been credited
 to reserves.
 
 Government grants related to revenue are recognized on a systematic
 basis in the profit & loss account over the periods necessary to match
 them with their related cost.
 
 The Department of Biotechnology, Government of West Bengal has
 sanctioned Project for Biotechnological Studies in tea for
 Demonstration of New Tea Plants Genotypes in our site at Jalpaiguri
 District.
 
 12.  Impairments
 
 An Asset is treated as impaired when the carrying cost of the asset
 exceeds its recoverable value.  An impairment loss is charged to the
 Profit and Loss Account in the year in which an asset is identified as
 impaired .The impairment loss is recognised in prior accounting period
 is reversed if there has been a change in the estimate of recoverable
 amount.
 
 13.  Contingent liabilities
 
 Provision of contingent liabilities are not made, unless & until the
 demand raised by statutory authorities, against which the company has
 preferred an appeal which is pending with the different forum of the
 said authorities are ascertained.