1.  Basis of Preparation : The Financial Statements of Coromandel Agro
 Products & Oils Limited have been prepared and presented under the
 historical cost convention on the accrual basis of accounting in
 accordance with the accounting principles generally accepted in India
 (GAAP) and comply with the mandatory Accounting Standards(AS) issued by
 the Institute of Chartered Accountants of lndia to the extent
 applicable and with the relevant provisions of the Companies Act, 1956.
 
 2.  Use of Estimates : The preparation of the financial statements in
 conformity with GAAP requires management to make estimates and
 assumptions that affect the reported amounts of assets and liabilities
 and disclosure of contingent liabilities on the date of the financial
 statements and reported amounts of revenues and expenses for the year.
 Actual results could differ from these estimates. Any revision to
 accounting estimates is recognized prospectively in the current and
 future periods.
 
 3.  Fixed Assets : Tangible assets i.e., Land, Buildings, Plant and
 Machinery are stated at revalued cost less depreciation. Other fixed
 assets are stated at cost less depreciation.  Depreciation has been
 provided as per the amendment to Schedule XIV vide Notification dated
 16-12-1993 of the Companies Act, 1956 on straight line basis as per the
 provisions of Section 205(2)(b). Lease hold land is amortised over the
 period of lease. Depreciation on additions due to revaluation of fixed
 assets is provided based on the estimated residual life of the assets
 as per approved valuer report. This amount of depreciation for each
 year attributable to the revalued assets is transferred from Assets
 Revaluation Reserve to Credit of Profit and Loss Account.
 
 4.  Investments : Investments are stated at cost.
 
 5.  Provision for Retirement Benefits : Company has taken the L.I.C.
 Group Gratuity and Superannuation Policies to cover the liability
 arising out of employees going to retire.  Liability under Gratuity is
 determined on actuarial valuation done by L.I.C. of India
 
 6.  Inventories : The inventories comprising raw materials, stores &
 spares and finished goods are valued at cost or net realisable value,
 whichever is less. The term cost comprises of purchase price including
 duties and taxes, freight inwards and other expenditure directly
 attributable to the acquisition excluding refundable duties and taxes.
 The costs is computed on weighted average basis.
 
 7.  Foreign Currency Transactions : Foreign Currency Transactions are
 recorded using the exchange rates prevailing on the dates of the
 respective transactions. Exchange differences arising on Foreign
 Currency Transactions settled during the year are recognized in the
 Profit & Loss Account.
 
 8.  Revenue recognition of income and expenditure : All Income and
 Expenditure are accounted on accrual basis, except where stated
 otherwise.
 
 9.  Provisions and Contingencies : A provision is made in the books of
 account when there is a present obligation as a result of past event
 that probably required an outflow of resources and a reasonable
 estimate can be made of the obligation.
 
 A disclosure for a contingent liability is made when there is a
 possible obligation or present obligation that arises from past events
 and the outflow of resources embedding economic benefit is not
 probable.
 
 A contingent liability or a provision at the Balance Sheet date is not
 disclosed or recognized unless the possibility of any outflow in
 settlement is remote.
 
 10.  Deferred Income-Taxes : Deferred Tax charge or credit reflects
 that tax effects of timing differences between accounting income and
 taxable income for the period. The deferred tax charge or credit and
 the corresponding deferred tax liability or asset are recognized using
 the tax rates that have been enacted or substantial enacted by the
 balance sheet date. Deferred tax assets are recognized only to the
 extent there is reasonable certainty that the assets can be realized in
 future, however, where there is unabsorbed depreciation or carry
 forward losses, deferred tax assets are recognized only if there is
 virtual certainty of realization of such assets. Deferred tax assets
 are reviewed at each balance sheet date and written down or written up
 to reflect the amount that is reasonable/virtual certainty (as the case
 may be) to be realized.
 
 11.  Impairment of Assets: An Asset is treated as impaired when the
 carrying of cost of Assets exceeds its receivable value. An impairment
 loss is charged for when the asset is identified as impaired. The
 impairment loss received in prior accounting period is reversed if
 there has been a change in the estimate of recoverable amount.