a) Accounting Convention
 
 The financial statements are prepared to comply in all material aspects
 with all the applicable accounting principles in India, the applicable
 accounting standards, notifed u/s 211(3C) of the Companies Act, 1956
 and the relevant provisions of the Companies Act,1956. The financial
 statements have been prepared in accordance with the historical cost
 convention.
 
 b) Fixed Assets and Depreciation
 
 Fixed Assets are carried at cost of acquisition less depreciation.
 Impairment loss, if any, ascertained as per the Accounting Standard of
 the Companies (Accounting Standards) Rules, 2006 is recognised. The
 cost of extension planting of cultivable land, including cost of
 development, is capitalised.
 
 Assets acquired on hire purchase, for which ownership will vest at a
 future date, are capitalised at cash cost. Depreciation on fixed assets,
 including assets created on lands under lease is provided on,
 straight-line method in accordance with Schedule XIV to the Companies
 Act, 1956 or on estimated useful life. Renewal of land leases is
 assumed, consistent with past practice. Expenditure on software and
 related implementation costs are capitalised where it is expected to
 provide enduring economic Benefits and are amortised on a straight-line
 basis over a period of fve years.
 
 Subsidies receivable from government in respect of fixed assets are
 deducted from the cost of respective assets as and when they accrue.
 
 Non-compete fees paid on acquisition of business is being amortised on
 straight-line basis over a period of 10 years.
 
 c) Borrowing Costs
 
 Borrowing costs that are directly attributable to the acquisition,
 construction or production of qualifying assets are capitalised. The
 other costs are charged to the profit and Loss Account. Discount on
 Commercial Paper is amortised on straight-line basis over its tenure.
 
 d) Investments
 
 Investments of a long-term nature are stated at cost, less adjustment
 for any diminution, other than temporary, in the value thereof. Current
 investments are stated at lower of cost and market value.
 
 e) Inventories
 
 Inventories are stated at cost or net realisable value, whichever is
 lower. Cost is determined on weighted average method for all categories
 of inventories other than for auction-bought teas, in which case cost
 is considered as actual cost for each lot. Cost comprises expenditure
 incurred in the normal course of business in bringing such inventories
 to its location and includes, where applicable, appropriate overheads
 based on normal level of activity. Provision is made for obsolete,
 slow-moving and deffective stocks, where necessary.
 
 f) Foreign Currency Transactions
 
 Transactions in foreign currencies relating to exports are recorded at
 average fortnightly spot rates. Other transactions in foreign
 currencies are recorded at the exchange rates prevailing on the date of
 the transaction. The exchange diference resulting from settled
 transactions is recognised in the profit and Loss Account. Year end
 balances of monetary items are restated at the year end exchange rates
 and the resultant net gain or loss is recognised in the profit and Loss
 Account.
 
 g) Sales and Services
 
 i) Sales are recognised on passing of property in goods, i.e. delivery
 as per terms of sale or on completion of auction in case of auction
 sale.
 
 ii) Fees and income from services are accounted as per terms of
 relevant arrangements.
 
 h) Other Income
 
 Export incentives, interest income and income from investments are
 accounted on accrual basis.
 
 i) Replanting/Rejuvenation
 
 Cost of replanting/rejuvenating tea bushes/fuel trees is charged to
 Revenue. Related Tea Board subsidies are accrued as Other Income on
 obtaining approval from Tea Board.
 
 j) Compensation of Land
 
 Compensation, if any, in respect of land surrendered/vested in
 governments under various State Land Legislations is accounted for as
 and when received.
 
 k) Employee Benefits
 
 i) Post-retirement employee Benefits: Post-retirement Benefits like
 Provident Fund and Defined Contribution Superannuation schemes, in the
 nature of Defined contribution plans, are maintained by the Company and,
 for certain categories, contributions are made to State Plans.
 Contributions required are recognised in the profit and Loss Account on
 an accrual basis and funded with recognised funds set up for the
 purpose. For certain Provident Fund Schemes, the interest rates are
 assured and the defcit is borne by the Company.
 
 Defined benefit plans like Gratuity and Superannuation schemes are also
 maintained by the Company. Post-retirement medical Benefits are provided
 by the Company for certain categories of employees. Liabilities under
 the Defined benefit schemes are determined through independent actuarial
 valuation at year end and charge recognised in the books. For schemes,
 where recognised funds have been set up, annual contributions
 determined as payable in the actuarial valuation report are
 contributed. Actuarial gains and losses are recognised in the profit and
 Loss Account.
 
 The Company recognises in the profit and Loss Account, gains or losses
 on settlement of a Defined benefit plan as and when the settlement
 occurs.
 
 ii) Other Employee Benefits: Other employee Benefits are accounted for on
 accrual basis. Liabilities for compensated absences are
 determined based on independent actuarial valuation at year end and
 charge is recognised in the profit and Loss Account. Short Term Employee
 Benefits are recognised on an undiscounted basis whereas Long-Term
 Employee Benefits are recognised on a discounted basis.
 
 iii) Other Employee Termination Benefits: Payments to employees who have
 opted for the Employee Separation Scheme (ESS) along with additional
 liabilities towards retirement Benefits arising pursuant to the ESS are
 charged to profit and Loss Account in the year in which it is incurred.
 
 l) Research and Development
 
 Research and Development expenditure of revenue nature is charged to
 revenue and capital expenditure is included under fixed assets.
 
 m) Deferred Taxation
 
 Deferred tax is recognised using the liability method, on all timing
 diferences to the extent that it is probable that a liability or asset
 will crystallise.  As at the balance sheet date, unless there is
 evidence to the contrary, deferred tax assets pertaining to business
 loss are only recognised to the extent that there are deferred tax
 liabilities offsetting them.
 
 n) Financial Instruments
 
 Premium or discount on forward contracts where there are underlying
 assets/liabilities are amortised over the life of the contract. Such
 foreign exchange forward contracts are revalued at the balance sheet
 date and the exchange diference between the spot rate at the date of
 the contract and spot rate on the balance sheet date is recognised as
 gain/loss in the profit and Loss Account.
 
 The Company also uses foreign currency forward contracts and options to
 hedge its risks associated with foreign currency fuctuations relating
 to certain frm commitments and highly probable transactions. The
 Company designates these hedging instruments as cash fow hedges.
 
 Hedging instruments are initially measured at fair value, and are
 remeasured at subsequent reporting dates. Gain or loss on account of
 change in the fair value of hedging instruments in respect of effective
 portion of cash fow hedges are recognised in the hedging reserve
 account. On occurrence of the underlying transactions the accumulated
 balance is transferred from hedging reserve and recognised in the profit
 and Loss Account. The portion of the gain or loss on the hedging
 instruments if determined to be an ineffective cash fow hedge is
 recognised in the profit and Loss Account. Fair value hedges are marked
 to market on the balance sheet date and gain or loss recognised in the
 profit and Loss Account.
 
 o) Leases
 
 Rental in respect of operating leases are charged of to profit and Loss
 Account.