(a) Basis of Preparation of Financial Statements
 
 The Financial statements have been prepared in accordance with Indian
 Generally Accepted Accounting Principles (GAAP) under the historical
 cost convention on accrual basis and are in accordance with the
 applicable accounting standards issued by the Institute of Chartered
 Accountants of India (ICAI) & prescribed in the Companies (Accounting
 Standards) Rules, 2006. These Accounting policies have been
 consistently applied, except where a newly issued accounting standard
 is initially adopted by the company. Management evaluates the effect of
 accounting standards issued on a going concern basis and ensures that
 they are adopted as mandated by the ICAI.
 
 (b) Fixed Assets
 
 (i) Owned Assets
 
 Fixed assets are stated at their original cost of acquisition inclusive
 of inward freight, duties, taxes and incidental expenses relating to
 acquisition and installation, adjusted by revaluation of land. The cost
 of assets under installation or under construction plus direct
 allocable expenses as at the Balance Sheet date are shown as capital
 work-in-progress.
 
 (ii) Assets taken on finance lease
 
 Fixed assets taken on finance lease are stated at the lower of the fair
 value of the lease assets or the present value of minimum lease
 payments at the inception of the lease.
 
 (iii) Intangible Assets and Amortization
 
 Intangible Assets & related expenditure are recognized as per criteria
 specified in Accounting Standard-26 on Intangible Assets issued by
 the Institute of Chartered Accountants of India. The cost of software
 purchased for internal use or main software comprises its purchase
 price, including any import duties and other taxes (other than those
 subsequently recoverable by the enterprise from the taxing authorities)
 and any directly attributable expenditure on making the software ready
 for its use. Any trade discounts and rebates are deducted in arriving
 at the cost.
 
 (c) Depreciation
 
 (i) Depreciation so far was being provided on Written Down Value Method
 at the Corporate Office and Straight Line Method at the Amrit Food Unit
 at the rates specified in Schedule XIV of the Companies Act, 1956. In
 order to have uniformity in the depreciation accounting, the Written
 Down Value Method was changed to Straight Line Method at the Corporate
 Office w.e.f. 1st April, 2010. From the previous year ended 31st March,
 2011 onwards, Company is following Straight Line Method on all assets,
 except software, in both units.
 
 (ii) The software is amortized over a period of 36 months from the
 month subsequent to the month in which it got activated for use.
 
 (iii) In respect of assets added/disposed off during the year,
 depreciation is charged on a pro-rata basis with reference to the month
 of addition/disposal. In the case of additions, it is charged for the
 full month in which additions took place and in the case of sales up to
 the month preceding the date of sale.
 
 (iv) Assets below Rs. 5,000/- are depreciated at the rate of 100%.
 
 (v) In respect of fixed assets taken on finance lease, when there is
 reasonable certainty that the company will obtain ownership by the end
 of the lease term, depreciation is provided in accordance with the
 policy followed by the company for owned assets.
 
 (d) Impairment
 
 The carrying amount of assets is reviewed at each balance date if there
 is any indication of impairment based on internal/external factors. An
 impairment loss is recognized wherever the carrying amount of an asset
 exceeds its recoverable amount. The recoverable amount is the greater
 of the asset''s net selling price and value in use. In assessing value
 in use the estimated future cash flows are discounted to their present
 value at the weighted cost of capital.
 
 (e) Investment
 
 Investments are classified into current and long term investments.
 Investments that are readily realizable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long term investments. Current
 investments are stated at the lower of cost and fair value determined
 on an individual basis. Long term investments, including interests in
 joint-venture companies, are carried at cost. A provision for
 diminution in value is made to recognize a decline other than temporary
 in the value of long term investments. Profit/loss on sale of
 investments is computed with reference to their average cost.
 
 (f) Inventories
 
 (i) Raw materials, components, stores, spares and loose tools are
 valued at lower of weighted average cost.
 
 (ii) Work-in-progress
 
 -  Work-in-progress (other than the property development or
 construction related) is valued at cost determined at different stages
 of production which includes related overheads.
 
 -  Property Development and construction-related work-in-progress is
 valued at cost till such time the outcome of the work cannot be
 ascertained and thereafter at lower of cost or net realizable value.
 
 (iii) Finished goods are valued at lower of weighted average cost or
 net realizable value. In the case of finished goods, cost is determined
 by taking material, labour and related factory overheads including
 depreciation and fixed production overheads which are apportioned on
 the basis of normal capacity.
 
 (iv) Unsold real estate inventory is valued at lower of cost or market
 value.
 
 (v) Stock in trade are valued at cost or at market value, whichever is
 lower. The cost in such cases, is valued at the last month weighted
 average price.
 
 (g) Revenue Recognition
 
 Revenue is recognized to the extent that it can be reliable, measured
 and is appropriate to the economic benefits that will flow to the
 company.
 
 (i) Sale of goods
 
 Revenue from the sale of goods is recognized when the significant risks
 & rewards of ownership of the goods are transferred to the customers
 and is stated net of rebates/trade discounts. Consignment sales are
 booked to the extent of consignment sales notes received from
 consignees. The revenue on sale of residential/ commercial plots and
 constructed units are recognized on completion and execution of
 sale/conveyance deeds and on reasonable expectation of collection of
 the sale consideration from the customer. The estimates relating to
 sale value, estimated cost etc., are revised and updated periodically
 by the management and necessary adjustments are made in the current
 year''s account.
 
 (ii) Royalty and income from services
 
 Income from royalty & services rendered is booked on accrual basis in
 accordance with the terms of the royalty agreements/arrangements with
 the concerned parties.
 
 (iii) Interest
 
 Interest is recognized on a time proportion basis in accordance with
 agreement taking into account the amount outstanding and the rate
 applicable.
 
 (iv) Dividend
 
 Dividend income is recognized if the right to receive the payment is
 established by the Balance Sheet date.
 
 (h) Employee Benefits
 
 (i) Short Term Employee Benefits
 
 All employee benefits falling due wholly within twelve months of
 rendering the service are classified as short term employee benefits.
 The benefits like salaries, wages, short term compensated absences etc.
 and the expected cost of bonus, ex-gratia etc. are recognized in the
 period in which the employee renders the related service.  .
 
 There are no other encashable short-term benefits.
 
 (ii) Post-Employment Benefits
 
 (1) Defined Contribution Plans: The State governed provident fund
 scheme, employee state insurance scheme and employee pension scheme are
 defined contribution plans. The contribution paid/payable under the
 schemes is recognized during the period in which the employee renders
 the related service.
 
 (2) Defined Benefit Plans: The employees gratuity fund scheme and
 provident fund scheme managed by trust are defined benefit plans.
 
 -  In the case of gratuity liability, the present value of the
 obligation under such defined benefit plan is determined based on
 actuarial valuation using the projected unit credit method, which
 recognizes each period of service as giving rise to additional unit of
 employee benefit entitlement and measures each unit separately to build
 up the final obligation.
 
 The obligation is measured at the present value of the estimated future
 cash flows. The discount rates used for determining the present value
 of the obligation under defined benefit plan, is based on the market
 yields on Government Securities as at the balance sheet date, having
 maturity periods approximating to the terms of related obligations.
 
 Actuarial gains and losses are recognized immediately in the Profit &
 Loss Account.
 
 -  In the case of provident fund administered by the Trust constituted
 by the Company, the Company makes monthly contributions as a fixed
 percentage of basic pay of certain specified employees to the Fund
 every month. The interest credited to the account of the employees is
 adjusted on annual basis to conform to the interest rate notified by
 the Govt, for the Employees Provident Fund. The Company has an
 obligation to make good the shortfall, if any, between the return on
 investment of the Trust and the notified interest rate. There is no
 deficit in the Fund.
 
 -  Long Term Employee Benefits
 
 Entitlements to annual leave, casual leave and sick leave are
 recognized when they accrue to the employees. Sick leave and casual
 leave can only be availed while earned leave can either be availed or
 encashed subject to restriction on the maximum number of accumulation
 of leaves. The Company determines the liability for such accumulated
 leaves using the projected unit credit method with actuarial valuation
 being carried out at each Balance Sheet date in the similar manner as
 in the case of defined benefit plans as mentioned in (ii) (2) above.
 
 (3) The other staff benefit schemes will be provided according to
 respective laws in respect of employees as and when these will be
 applicable on company.
 
 (i) Taxes on Income
 
 The current charge for Income Tax is ascertained on the basis of
 assessable profits computed in accordance with the provisions of the
 Income Tax Act, 1961.
 
 Minimum Alternative Tax (MAT) paid in accordance with the tax laws,
 which gives rise to future economic benefits in the form of adjustment
 of future income tax liability, is considered as an Asset if there is
 convincing evidence that company will pay normal tax in future. MAT
 Credit entitlement can be carried forward and utilized for a period of
 ten years from the year in which the same is availed. Accordingly, it
 is recognized as an asset in the balance sheet when it is probable that
 the future economic benefit associated with it will flow to the company
 and the asset can be measured reliably.
 
 Deferred tax is recognized subject to the consideration of prudence, on
 timing differences, being the difference between taxable incomes and
 accounting income that originate in one period and are capable of
 reversal in one or more subsequent periods. Deferred tax assets and
 liabilities are recognized for the future tax consequences attributable
 to timing differences that result between taxable profits and
 accounting profits. Deferred tax assets and liabilities are measured
 using the tax rates and tax laws that have been enacted or
 substantively enacted by the balance sheet date. The effect on deferred
 tax assets and liabilities of a change in tax rates is recognized in
 the period that includes the enactment date. Deferred tax assets on
 timing difference are recognized only if there is a
 
 reasonable certainly that sufficient future taxable income will be
 available against which such deferred tax assets can be realized.
 However, deferred tax assets on the timing differences when unabsorbed
 depreciation and losses carried forward exist, are recognized only to
 the extent that there is virtual certainly that sufficient future
 taxable income will be available against which such deferred tax can be
 realized. Deferred tax assets are reassessed for the appropriateness of
 their respective carrying values at each balance sheet date.
 
 (j) Leases
 
 (i) Assets acquired under leases where the Company has substantially
 all the risks and rewards of ownership are classified as finance
 leases. Such assets are capitalized at the inception of the lease at
 the lower of the fair value or the present value of minimum lease
 payments and a liability is created for an equivalent amount. Each
 lease rental paid is allocated between the liability and the interest
 cost, so as to obtain a constant periodic rate of interest on the
 outstanding liability for each period.
 
 (ii) Assets taken on lease under which lessor effectively retains all
 significant risks & rewards of ownership have been classified as
 operating lease. Lease payments made under operating lease are
 recognized as expense in the profit & loss account on straight line
 basis over the primary term of the lease as mentioned in the lease
 agreement on accrual basis.
 
 (iii) Assets given under a finance lease are recognized as receivable
 at an amount equal to the net investment in the lease. Lease income is
 recognized over the period of the lease so as to yield a constant rate
 of return on the net investment in the lease.
 
 (iv) Assets leased out under operating leases are capitalized. Rental
 income is recognized on accrual basis over the lease term.
 
 (v) Initial direct costs relating to assets given on finance leases are
 charged to the Profit and Loss Account.
 
 (k) Research and Development
 
 Revenue expenditure on research and development is charged under
 respective heads of account in the year in which it is incurred.
 Capital expenditure on research and development is included as part of
 fixed assets and depreciated on the same basis as other fixed assets.
 
 (I) Provisions and Contingencies
 
 Provisions are recognized when the Company has a present obligation as
 a result of past events, for which it is probable that an outflow of
 resources embodying economic benefits will be required to settle are
 reviewed regularly and are adjusted where necessary to reflect the
 current best estimates of the obligation. Where the Company expects a
 provision to be reimbursed, the reimbursement is recognized as a
 separate Asset, only when such reimbursement is virtually certain.
 Contingent Liabilities are disclosed after an evaluation of the facts
 and legal aspects of the matters involved. Contingent Assets are
 neither recognized, nor disclosed. Provisions, Contingent Liabilities
 and Contingent Assets are reviewed at each Balance Sheet date.
 
 (m) Use of Estimates
 
 The preparation of the financial statements in conformity with GAAP
 requires the management to make estimates and assumptions that affect
 the reported balances of assets and liabilities and disclosures
 relating to contingent assets and liabilities as at the date of the
 financial statements and reported amounts of income and expenses during
 the period. Examples of such estimates include provisions for doubtful
 debts, future obligations under employee retirement benefit plans,
 income tax, post-sales customer support and the useful lives of fixed
 assets and intangible assets. Actual results could differ from those
 estimate. Any revision to accounting estimate is recognized
 prospectively in the current and future periods.
 
 (n) Foreign Currency Transactions
 
 Foreign exchange transactions are recorded at the rate of exchange
 prevailing on the dates of the respective transactions. Exchange
 differences are recorded in the Profit & Loss Account when the amount
 actually is paid on import of goods are converted into Indian Rupees.
 Accordingly, exchange differences arising on foreign exchange
 differences settled during the period are recognized in the profit and
 loss account of the period.
 
 Monetary current assets and monetary current liabilities that are
 denominated in foreign currency are translated at the exchange rate
 prevalent at the date of the Balance Sheet. The resulting difference is
 also recorded in the Profit & Loss Account.
 
 (o) Borrowing Costs
 
 Borrowing costs that are attributable to the acquisition, construction
 or production of a qualifying asset are capitalized as part of cost of
 such asset till such time as the asset is ready for its intended use or
 sale. A qualifying asset is an asset that necessarily requires a
 substantial period of time to get ready for its intended use or sale.
 All other borrowing costs are recognized as an expense in the period in
 which they are incurred.
 
 (p) Earnings per Share
 
 In determining earnings per share, the company considers the net profit
 after tax and includes the post-tax effect of any
 extraordinary/exceptional item. The number of shares used in computing
 basic earnings per share is the weighted average number of shares
 outstanding during the period. The number of shares used in computing
 diluted earnings per share comprises the weighted average shares
 considered for deriving basic earnings per share, and also the weighted
 average number of equity shares that could have been issued on the
 conversion of all dilutive potential equity shares.
 
 The details are stated in the financial notes, which are not reproduced
 here. There is no diluted Earning per Share as there are no dilutive
 potential equity shares.
 
 (q) Segment Accounting
 
 The Company has three primary segments namely, Food, Real Estate and
 Services.
 
 (i) Segment accounting policies
 
 Segment accounting policies are in line with the accounting policies of
 the Company. In addition, the following specific accounting policies
 have been followed for segment reporting:
 
 Segment revenue includes sales and other income directly identifiable
 with/allocable to the segment including inter-segment revenue.
 
 * Expenses that are directly identifiable with/allocable to segments
 are considered for determining the Segment Result. Expenses which
 relate to the Company as a whole and not allocable to segments are
 included under Un-allocable Expenditure.
 
 -  Income which relates to the Company as a whole and not allocable to
 segments is included in Un- allocable Income.
 
 - Segment result includes margins on inter-segment capital jobs, which
 are reduced in arriving at the profit before tax of the Company.
 
 Segment assets and liabilities include those which are directly
 identifiable with the respective segments.  Un-allocable assets and
 liabilities represent the assets and liabilities that relate to the
 Company as a whole and not allocable to any segment. Un-allocable
 assets mainly comprise Deposits with Banks, Margin Money, Bank Balances
 and Investments and Deferred Tax Assets to the portfolio of the
 Company''s core/ thrust areas of business such as infrastructure
 development. Un-allocable liabilities include mainly Interest bearing
 Share Capital, Reserves & Surplus, Public Deposits, Provision for Tax
 and Interest Payable on Loans.
 
 (ii) Segment Transactions
 
 Segment transactions with other business segments are accounted on the
 basis of cost to the segment concerned.
 
 (r) Cash Flow Statement
 
 Cash flows are reported using the indirect method, whereby net profit
 before tax is adjusted for the effects of transactions of a non-cash
 nature and any deferrals or accruals of past or future cash receipts or
 payments. The cash flows from regular revenue generating, investing and
 financing activities of the Company are segregated. The Cash Flow
 statement is separately attached with the Financial Statements of the
 company.
 
 (s) Accounting for interest in Joint Venture
 
 Interest in Joint venture companies is accounted as follows:
 
 (i) Income on investments is recognized when the right to receive the
 same is established.
 
 (ii) Investment in such joint ventures is carried at cost after
 providing for any permanent diminution value.
 
 (i) Equity Shares: The Company has one class of equity shares having at
 par value of Rs. 10/- each. Each holder of equity shares is entitled to
 one vote per share.
 
 (ii) The Company declares and pays dividend in Indian rupees. The
 proposed dividend of t 24/- per share recommended by Board of Directors
 in its meeting held on 25th May, 2012 is subject to the approval of the
 shareholders in the ensuing Annual General Meeting.