Tata Tea

1.  Bills discounted and remaining unpaid as at 31st March, 2009
 aggregated Rs. 133.61 Lakhs (Rs. 771.96 Lakhs).
 
 2.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for as at 31 st March,2009 aggregated Rs.998
 Lakhs (Rs.261.54 Lakhs) including Rs.Nil (Rs.11.80 Lakhs) for computer
 software.
 
 3.  Contingent Liabilities not provided for in respect of:
 
 (a) Claims under adjudication not acknowledged as debts:
 
                                     Gross          Net of Estimated Tax
                                  Rs. in Lakhs            Rs. in Lakhs
 
 (i) Taxes, Statutory Duties/
 Levies etc.                        493.10                   293.60
                                   (479.45)                 (271.77)
 (ii) Commercial and other claims   208.52                   133.71
                                    (51.16)                  (29.97)
 (iii) Income -tax/Agricultural 
       Income-tax                   840.47                   840.47
                                   (355.13)                 (355.13)
 
 (b) Labour disputes under adjudication relating to some staff - amount
 not ascertainable.
 
 (c) Counter Guarantee is given on behalf of an Associate Company Rs.
 52.69 Lakhs (Rs. 91.46 Lakhs).
 
 (d) Guarantee given in connection with acquisition of a Subsidiary Rs.
 300 Lakhs (Rs. 250 Lakhs).
 
 4.  Micro enterprises and small enterprises under the Micro, Small and
 Medium Enterprises Development Act, 2006 have been determined based on
 the confirmations received in response to intimation in this regard
 sent by the Company to the suppliers. No interest in terms of Section
 16 of Micro, Small and Medium Enterprises Development Act, 2006 or
 otherwise has either been paid or payable or accrued and remaining
 unpaid as at 31st March, 2009.
 
 5.  a) The Company has entered into a put option agreement with
 International Finance Corporation (IFC) in relation to their investment
 in Amalgamated Plantations Private Limited (APPL). In terms of the said
 agreement, IFC has the right to exercise a put option whereby the
 Company is obliged to purchase a maximum of 30 million shares in APPL,
 if certain conditions or events stipulated in the said agreement do not
 occur.
 
 b) The Company has entered into a put option agreement with two
 erstwhile promoters of Mount Everest Mineral Water Limited (MEMW) in
 relation to their investments in MEMW. In terms of the said agreement,
 the two erstwhile promoters have the right to exercise a put option
 whereby the Company is obliged to purchase a maximum of 3.11 million
 shares in MEMW, if certain conditions or events stipulated in the said
 agreement do not occur.
 
 6.  Provision for tax on dividend is net of Rs. 127.72 Lakhs (Rs. Nil)
 relating to previous year.
 
 13.  Basic and Diluted Earnings Per Share have been computed with
 reference to Profit after tax of Rs. 15906.15 Lakhs (Rs. 31285.56
 Lakhs) and weighted average equity shares outstanding (nominal value
 Rs. 10) during the year aggregating to 618.40 Lakhs shares (616.02
 Lakhs shares).
 
 7.  Post Retirement Employee Benefits:
 
 The Company operates defined contribution schemes like provident fund
 and defined contribution superannuation schemes. For these schemes,
 contributions are made by the Company, based on current salaries, to
 recognised funds maintained by the Company and for certain categories
 contributions are made to State Plans. In case of provident fund
 schemes, contributions are also made by the employees. An amount of Rs.
 523.39 Lakhs (Rs. 500.81 Lakhs) has been charged to the Profit and Loss
 Account on account of defined contribution schemes.
 
 The Company also operates defined benefit schemes like retirement
 gratuity,defined superannuation benefits and post retirement medical
 benefits.The superannuation benefits and medical benefits are
 restricted to certain categories of employees.The defined benefit
 schemes offer specified benefits to the employees on retirement. Annual
 actuarial valuations are carried out by an independent actuary as at
 financial year end in compliance with Accounting Standard 15 (revised
 2005) on Employee Benefits. Wherever recognised funds have been set up,
 annual contributions are also made by the Company. Employees are not
 required to make any contribution.
 
 8.  Disclosure requirement for Derivatives Instruments
 
 The Company uses foreign currency hedges to manage its risks associated
 with foreign currency fluctuations relating to certain firm commitments
 and highly probable transactions.The Company does not use derivative
 contracts for trading or speculative purposes.
 
 9.  Unless otherwise stated,figures in bracket relate to the previous
 year and have been rearranged/regrouped wherever necessary.