The English traders came to India not to rule over the country, but to earn profit by trade. But the breakdown of the administrative system in India towards the end of the Mughal rule created problem for them It was realized that trade and commerce could not be carried on in a country where chaos and confusion reigned supreme.

Under the circumstances they set themselves to the task of reorganizing the administrative system though their real motive remained to be squeezing out as much money or wealth as possible from the country. In an agricultural country like India land-revenue constituted the main source of the governmental income.

Hence the East India Company paid their attention to the restructuring of the land-revenue system of India.