1.  BACKGROUND
 
 The company was incorporated as a Private Limited Company on 30th
 September, 1992 and it was converted in to a Public Limited Company on
 22nd September, 1994.
 
 Freshtrop Fruits Ltd. is engaged in the business of exports of fresh
 fruits and vegetables to leading Supermarket chains in various parts of
 Europe. During the year company has started supplies of fresh fruits to
 the domestic market. The company has also produced fruit pulp &
 Concentrate for both the Domestic & International Customers.
 
 2.  Contingent liability:
 
 Sr.  Nature of Liabilities                  2010-11           2009-10
 No.                                       (Rs. in Lacs)      (Rs. in Lacs)
 
 (a)  Estimated amounts of contracts
      remaining to be executed on             16.98              6.17
      capital account and not provided 
      (net of advances)
 
 (b)  Estimated amount of Custom/Excise 
      duty liability in respect              217.41            397.74
      of Capital Goods purchased without
      payment of duty under EPCG Scheme
 
 (c)  Estimated amount of duty liability 
      on stock of duty free materials         18.57             20.28
 
 (d)  Estimated amount of duty liability 
      on Capital Goods procured/               Nil              24.55
      imported under Bonds given by the company
 
 (e)  Disputed matters in appeals/contested 
      in respect of Income Tax               68.74               2.62
 
 (f)  Bank Guarantees                        42.51              12.50
 
 (g)  Letter of Credit                         Nil              35.56
 
 3.  (A) Issued, Subscribed & Paid-up Equity Share Capital includes :
 
 (i) 2,08,400 equity shares of Rs.10/- each were allotted as fully paid
 Bonus Shares by way of capitalization of General Reserve during the
 F.Y.1994-95.
 
 (ii) 2,50,000 equity shares of Rs.10/- each were allotted as fully paid
 upon conversion of Share Warrants during the F.Y.2005-06.
 
 (iii) 2,50,000 equity shares of Rs.10/- each were allotted as fully paid
 upon conversion of Share Warrants during the F.Y.2006-07.
 
 (iv) 50,22,500 equity shares of Rs.10/- each were allotted as fully paid
 Bonus Shares by way of capitalization of General Reserve during the
 F.Y.2007.08.
 
 (v) 5,00,000 equity shares of Rs.10/- each were allotted as fully paid
 upon conversion of Share Warrants during the F.Y.2009-10.
 
 (B) During the year, the warrant holders of 5,00,000 warrants have
 exercised their right to convert those warrants into equity shares and
 accordingly 5,00,000 equity shares of Rs.10/- each have been issued and
 allotted during the year at an issue price calculated under SEBI (ICDR)
 Regulations, 2009 i.e. Rs.19.40 ( Face Value Rs.10/- and Premium Rs.9.40).
 
 4.  Secured Loans :
 
 (a) Working Capital Loans from Banks comprise of Cash Credit and Post
 Shipment Credit and are secured by way of hypothecation of Current
 Assets including Stocks and Book Debts and collaterally secured by
 specified Fixed Assets of the Company and Personal Guarantee of
 Chairman & Managing Director.
 
 (b) Term Loans from Banks are secured by Equitable Mortgage of
 Specified Factory Land and Building as well as Specified Fixed Assets
 and collaterally secured by hypothecation of Specified Current Assets
 of the Company and Personal Guarantee of Chairman & Managing Director.
 
 (c) Vehicle Loans are secured by way of hypothecation of Specific
 Vehicles of the Company.
 
 (d) Term Loans from Banks includes Foreign Currency loan of
 Rs.62,73,166/- (P.Y. Rs.3,00,36,601/-) secured by way of Specified Fixed
 Assets of the Company.
 
 5.  The Company has exercised the option of implementing the Provisions
 of Paragraph 46 of Accounting Standard 11 Accounting for the Effects
 of changes in Foreign Exchange Rates prescribed by Companies
 (Accounting Standards) Amendment Rules , 2009 in the F. Y. 2008-09 and
 accordingly Company has added the foreign exchange loss of Rs.85,595/- in
 respect of foreign currency loans to the Fixed Assets during the
 current Financial Year, consequently profit for the year is excess by
 the equivalent amount. Company had capitalised Exchange Difference Gain
 of Rs.39,12,626/- in the previous year in respect of foreign currency
 loans.
 
 6.  Micro, Small and Medium Enterprises Development Act, 2006:
 
 There are no Micro, Small and Medium Enterprises to whom the company
 owes dues, which are outstanding for more than 45 days as at 31st
 March, 2011. This information as required to be disclosed under the
 Micro, Small and Medium Enterprises Development Act, 2006 has been
 determined to the extent such parties have been identified on the basis
 of information available with the company.
 
 7.  In the opinion of the Board of Directors, Current Assets and Loans
 and Advances have a value on realization in the ordinary course of
 business equal to the amount at which they are stated in the balance
 sheet.
 
 8.  The company has provided Rs.2,69,000/- (P.Y. Rs.53,09,000/-) as
 Provision for Current taxation u/s 115JB (Minimum Alternate Tax) of
 Income Tax Act-1961.
 
 9.  Related Party Disclosure
 
 a) Names of related parties and nature of relationship.
 
 i) Enterprise under significant influence of Key Management personnel
 
 1) Freshcap Investments Pvt. Ltd. (Formerly known as Capital Packaging
 Pvt. Ltd.)
 
 2) Freshtrop Plantations Pvt. Ltd.
 
 3) Agrofoyer Solutions Pvt. Ltd.
 
 4) Agrofoyer Investments Pvt. Ltd.
 
 5) Freshfal Pvt. Ltd.
 
 ii) Key Management Personnel
 
 Mr.Ashok V. Motiani - Chairman and Managing Director.  Mrs.Nanita A.
 Motiani – Executive Director
 
 iii) Relatives of Key Management Personnel Mrs. Priyanka Tandon Mr.
 Mayank Tandon Ms. Dipti Motiani
 
 10.  Employees Benefits
 
 a) Defined Benefit Plan
 
 Gratuity:
 
 The Company has a defined benefit gratuity plan. Every employee who has
 completed five years or more of service gets a gratuity on departure at
 15 days salary (last drawn salary) for each completed year of service.
 The scheme is funded with an insurance company in the form of
 qualifying insurance policy.
 
 The following table summarizes the components of net benefit expenses
 recognized in the profit and loss account and the funded status and
 amounts recognized in the balance sheet for the gratuity benefit.
 
 11.  Previous year''s figures have been rearranged and reclassified
 wherever necessary.