1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENT :
 
 The financial statements have been prepared on accrual basis in
 accordance with accepted accounting standards, accepted accounting
 policies and applicable provisions of The Companies Act, 1956 based on
 historical cost convention except payment of bonus financial statement
 has been prepared and presented as per the requirement of revised
 Schedule VI as notified under the Companies Act 1956 with effect from
 current year. The adaption of revised Schedule VI does not have any
 impact on recognition and measurement principal as followed by the
 company.
 
 1.2 USE OF ESTIMATES
 
 The preparation of financial statement required judgements, estimates
 and assumptions to be made that affect the reported amount of assets
 and liabilities including contingent liabilities on the dates of the
 financial statements and the reported amount of revenues and expenses
 during the reporting period. Difference between actual reserves annd
 estimates are recognised in the period in which the results are known/
 materialised.
 
 1.3 REVENUE RECOGNITION :
 
 Sale incomes accrued on passing of title of goods and other income and
 expenses are accounted for on accrual basis except mentioned
 above.Sales are net of excise duty and sales tax.
 
 1.4 FIXED ASSETS AND DEPRECIATION :
 
 i) Fixed Assets including incidental expenses thereto are stated at
 cost. All expenditures on extension of planting areas are capitalised.
 
 ii) Depreciation has been accounted for on Written Down Value Method at
 the rates prescribed under Schedule XIV to the Companies Act, 1956.and
 on prorata basis in case of Addition / Deletion of Fixed Assets.
 
 iii) Profit or loss on disposal of fixed assets are recognised in
 Profit & loss account
 
 iv) An impairment loss is recognised where applicable when the carrying
 value of Fixed Assets exceeds its market value or value in use,
 whichever is higher
 
 1.5 INVESTMENT :
 
 i) Investments are valued at cost including cost of share transfer
 stamp.
 
 ii) Investments those are short in nature taken under the head Current
 Assets as Current Investment. are valued at cost.
 
 iii) Non Provision for diminution of market value of Investment if
 parmanent in nature, is to be accounted for in the accounts .
 
 1.6 INVENTORIES:
 
 i) Finished goods are valued at lower of cost or net realisable value .
 
 ii) Stock of Tea is valued at lower of cost or net realisable value.
 
 iii) Stores, Chemicals, Spares for Machinery, Green leaf are valued at
 cost.
 
 iv) Stock of nursery in respect of own plants taken from the garden as
 well as the plants purchased have been valued at cost.
 
 1.7 ACCOUNTING FOR FOREIGN CURRENCY TRANSACTIONS:
 
 The Foreign Currency transactions are recorded on the basis of exchange
 rate prevailing at the time of the transactions. Differences in
 transactions due to exchange fluctuations are recognised in the Profit
 and Loss Account as and when it arises. Current Assets & Liabilities
 have been restated at the prevailing closing Bank rate of the financial
 year. and it''s effect has been given in the account.
 
 1.8 EMPLOYEE BENEFITS
 
 i Employee benefits of short term natures are recognized as expenses as
 when it accures
 
 ii) Employee benefits of long term natures are recognized as expenses
 based on actuarial valuation.
 
 iii) Post employment benefits,
 
 a in the nature of defined contribution plans are reconized as expenses
 as and when it accrues.
 
 b in the nature of Defined benefits plans in respect of the employees
 on roll are reconized as expenses based on actuarial valuation
 
 iv Actuarial gains and losses are recognized immediately in the profit
 and loss Account as income and expense
 
 1.9 TAXES ON INCOME
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the year in accordance with the provisions of the
 Income Tax Act. 1961. Defferred tax liabilities and assets are
 recognized at substantively enacted tax rates, subject to the
 consioderation of prudent, on timing difference, being the difference
 between taxable income and accounting income that originate in the year
 and are capable of reversal in one or more subsequent years
 
 1.10 GOVERNMENT GRANTS
 
 Grants from the Government are recognized on compliance of conditions
 and on reasonable assurance of the same being received, grants received
 from the Government agencies against specific fixed assets are adjusted
 to the cost of the assets and revenue grants are recognized as other
 income.
 
 1.11 PROVISIONS AND CONTINGENT LIABILITIES
 
 Provisions are recognized where reliable estimate can be made for
 probable outflow of resources to settle the present obligation as a
 result of past event and the same is reviewed at each Balance Sheet
 date. Contingent Liabilities are generally not provided for in the
 accounts and are shown separately in Notes on Accounts.