The company posted a marginal fall in turnover to Rs 31.39 crore for the year to March 31, 2000, from Rs 31.48 crore in the previous year. Net profit dipped to Rs 1.61 crore from Rs 2.85 crore. Deogon explained that the company had considered the hotels business simply because it was looking for good investment opportunities, although it was not synergic to its core activity.

Deogun said Rossell Tea had been busy acquiring gardens. It bought Nagrijuli tea estate on October 10 last for Rs 18 crore, and is eyeing more gardens.

According to Deogun, the company will be buying "some more gardens" and the management already has five to six proposals from prospective sellers.

At present, Rossell Tea produces 2.7 million kg from a total of four gardens in Assam. The production figure includes the output of the fourth garden for part of the year.

Though the management tabled a resolution under Section 293 (1)(a) of the Companies Act, 1956, to sell, lease or dispose assets, Deogun categorically denied any move to sell the gardens. However, tea industry sources feel that one of the big packet-tea players in the market has already approached the management for a buyout. Deogun explained that the resolution under Section 293(1)(a) was merely an enabling one that will allow the management to put its unproductive or less productive assets to better use.

He stressed that the company has no plans to sell Borahi, the weakest of the four tea gardens.

The shareholders also passed a resolution enabling the management to buy back up to 25 per cent of the share capital.

Company officials told shareholders that the Sebi's corporate governance code was before the board and "will be applicable to us from the year ending March 31, 2002".