1. Pursuant to the Scheme of Amalgamation of The Moran Tea Company (India) Ltd (MTCIL) with the Company approved by the shareholders of the Company and sanctioned by the Hon´ble High Court at Calcutta on April 16, 2008, which is effective from April 01,2007, the Share Allotment Committee of the Board at its meeting held on July 03, 2008 allotted 1118028 equity shares of Rs 5/- each fully paid-up (hitherto shown under Share Capital Suspense and also considered for computation of Earning per Share) ranking pari-passu with the existing Equity Shares, to the equity shareholders of MTCIL in the ratio of 4 (four) equity shares of Rs 5/- each of the Company for every 1 (one) equity share of Rs 10/- fully paid-up held in MTCIL.

2. The Board of Directors has recommended a dividend of Rs. 2 (40%) per share.

3. In terms of the share Purchase Agreement (´SPA´) executed by Borelli Tea Holdings Ltd, U.K. (Borelli), wholly owned subsidiary of the Company with SA SIPEF NV of Belgium (the Seller) on December 31, 2008, Borelli has acquired on March 04, 2009 the entire controlling stake of Phu Ben Tea Company Ltd (Phu Ben) Vietnam, engaged in the production, manufacture and sale of tea, at a price of US $ 2 million. In terms of the SPA Phu Ben will have to repay the inter company balance of US $ 5.01 Million to the seller in annual installments at the end of 2009, 2010 and 2011 duly secured by a Bank Guarantee arranged by Borelli.

4. (a) The Company is primarily engaged in the business of cultivation manufacture and sale of tea and is managed organisationally as a single unit. Accordingly, the Company is a single business segment company.

(b) Geographical (Secondary) Segment:

The geographical Segments have been identified as follows:

Sales revenue by geographical market:

For the Year ended March 31, 2009 (Rs in Lacs)

India - 51194
Outside India - 31483

Total - 82677

5. value of consumption of raw materials represents only green leaf purchased from third parties. As production of Green Leaf (raw materials consumed by the Company for manufacture of Tea) from the Company´s own estates involves integrated process having various stages such as nursery, planting, cultivation etc., their values at the intermediate stage is not readily ascertainable at this stage.

6. Other income for the year ended March 31, 2009 includes Rs. 32 Lakhs (March 31, 2008 - Rs. 64 Lakhs) on account of dividend, Rs. Nil (March 31, 2008 - Rs. 1899 Lakhs) on account of profit on sale of real estates, Rs. 6 Lakhs (March 31, 2008 - Rs. 116 lakhs) on account of profit on sale of long term investments and Rs. Nil (March 31, 2008 - Rs. 850 lakhs) relating to profit on acquisition of land by Government of Assam.

7. Exchange Fluctuation represents net exchange loss / (gain) arising mainly on servicing/ translation of foreign currency loans.

8. Figures for the previous period have been regrouped / rearranged, wherever necessary.

9. The above statement have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at their meeting held on June 03, 2009.

K K Baheti
Wholetime Director