(a) The financial statements have been prepared in accordance with the
 Companies Act, 1956 of India and the rules framed thereunder.
 
 All asset and liabilities have been classified as Current or
 Non-current as per the Company''s normal operating cycle and other
 criteria set out in the revised schedule VI to the Companies Act, 1956.
 
 (b) Fixed Assets and Depreciation / Amortisation
 
 Written down value of Fixed Assets (both Tangible and Intangible)
 represents cost of acquisition/valuation of such assets after deduction
 of depreciation (including amortisation) on Straight Line Method at
 rates indicated in Note 25(6a). Rights are carried at cost of
 acquisition less amortisation, basis of which is indicated in Note
 24(6).
 
 Although Tea Plantation is an item of wasting asset, no depreciation is
 charged on such assets as it is customary in the Tea Industry and also
 because the Infilling costs of Tea Bushes, Replanting of Tea and other
 long term developmental expenditure in the plantation areas are charged
 to Revenue Expenditure upon completion of the composite activities
 which are allowed by the Indian Taxation Authorities. Thus, no
 depreciation has been charged on New Planting.
 
 For additions to Assets during the course of the year
 depreciation/amortisation is being charged on a full year basis. In
 case of acquisition of any undertaking, depreciation is charged from
 the effective date of such acquisition.
 
 Assets costing upto Rs. 5000/- each are fully depreciated in the same
 year.
 
 Compensation received for acquisition of Assets of the Company is
 accounted for upon acceptance of the Company''s claim by the appropriate
 authorities.
 
 (c) Impairment of Assets
 
 Loss on account of Impairment of Assets is to be recognised if and when
 the carrying amount of the Fixed Assets exceeds the recoverable amount
 i.e higher of net selling price and value in use.
 
 (d) Investments
 
 Long term Investments made by the Company have been stated at cost,
 except in certain cases where these have been brought down upon
 commercial considerations and in keeping with the applicable Accounting
 Standard. Current Investments are stated at lower of cost and fair
 value.
 
 (e) Inventories
 
 Inventories of Stores, as existing at the year-end, represent weighted
 average cost of procurements. Obsolete and slow moving inventories are
 fully depreciated in the Accounts.
 
 Unsold but saleable Stock of Tea are valued at weighted average cost of
 production including attributable charges and levies or net realisable
 value, whichever is lower.
 
 (f) Sales and Revenue Recognition
 
 Disposal of Company''s produce is accounted for as Sales whenever
 appropriate documents are received even when the proceeds are received
 after the accounting period.
 
 Items of income including Export Benefits are recognised on accrual and
 conservative basis.
 
 (g) Government Grants
 
 Government Grants related to specific depreciable fixed asset are
 deducted from gross values of the related fixed asset in arriving at
 their book value.
 
 Government Grants related to revenue are recognised in the Accounts on
 prudent basis.
 
 (h) Foreign Currencies Transactions
 
 Transactions in foreign currency are accounted for at the exchange
 rates prevailing on the date of transactions. Monetary assets and
 liabilities related to foreign currency transactions remaining
 unsettled at the end of the year are translated at year-end exchange
 rates.
 
 Gains/Losses arising out of fluctuations in the exchange rates are
 recognised in the Accounts in the period in which they arise.
 Differences between the forward exchange rates and the exchange rates
 at the date of transactions are accounted for as income/ expense over
 the life of the contracts.
 
 (i) Employee Benefits
 
 a) Short Term Employee Benefits
 
 The amount of Short Term Employee Benefits payable in terms of
 employment for the services rendered by such employees is recognised
 during the period when the employee renders services.
 
 b) Post Employment Benefits
 
 (i) The Company operates defined Contribution Schemes of Provident
 Funds and makes regular contributions to Provident Funds which are
 fully funded and administered by the Trustees/Government and are
 independent of the Company''s finance. Such contributions are recognised
 in the Accounts on accrual basis. Interest accruing to the Fund
 administered by the Trustees are credited to respective members''
 accounts based on the rates stipulated by the Government and shortfall
 if any, recognised on the basis of actuarial valuation report in this
 regard, is borne by the Company.
 
 (ii) The Company operates defined benefit Superannuation and Gratuity
 Schemes administered by the Trustees, which are independent of the
 Company''s finance. Such obligations are recognised in the Accounts on
 the basis of actuarial valuation applying Projected Unit Credit Method
 including gains and losses at the year-end.
 
 (iii) The Company operates a defined benefit Pension Scheme and
 Additional Retiral Benefit for certain categories of employees for
 which obligations are recognised in the Accounts based on actuarial
 valuation applying Projected Unit Credit Method including gains and
 losses at the year-end.
 
 c) Other Long Term Employee Benefits
 
 Other Long Term Employee Benefits are recognised in the Accounts based
 on actuarial valuation applying Projected Unit Credit Method including
 gains and losses at the year-end.
 
 (j) Expenditure
 
 As is customary in the Tea Industry, maintenance expenditure incurred
 at Gardens, for which accruing benefits may not be relatable in terms
 of periods, are charged off to Revenue Expenditure in the year these
 are incurred.
 
 Operational Borrowing Costs are recognised as Revenue Expenditure in
 the year in which these are incurred.
 
 (k) Corporate Taxation
 
 Current Tax is determined as the amount of income-tax
 payable/recoverable in respect of the taxable income for the current
 period.
 
 Deferred Tax is recognised as the tax effect of timing differences
 being the differences between taxable income and accounting income that
 originated in one period and is capable of reversal in one or more
 subsequent periods.
 
 Deferred Tax Assets are recognised subject to the consideration of
 prudence only to the extent that there is reasonable certainty that
 sufficient future taxable income will be available against which such
 deferred tax assets can be realised.
 
 (l) Contingent Liabilities
 
 Contingent Liabilities are disclosed when there is a possible
 obligation which may arise from past events and the existence of which
 will be confirmed only by the occurance or non-occurance of one or more
 uncertain future events not wholly within the control of the Company or
 a present obligation that arises from past events where it is either
 not probable that an outflow of resources will be required to settle
 the obligation or reliable estimate of the amount cannot be made.