1. SIGNIFICANT ACCOUNTING POLICIES
A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
* The financial statements have been prepared under the historical cost
* The system of accounting followed is mercantile system and as per the
provisions of Companies Act, 1956 and as adopted consistently by the
* Accounting Policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
* In applying the accounting policies, consideration have been given to
prudence, substance over for and materiality.
B. FIXED ASSETS
* Fixed Assets are stated at cost of acquisition inclusive of
incidental expenses less accumulated depreciation.
Depreciation is provided on written down value method as per the
Companies Act, 1956.
Inventories are stated at cost or net realizable value whichever is
Investments are classified as long term investments and are stated at
cost. No provision for diminution in value is made for temporary
decline in the value of the investments.
F. REVENUE RECOGNITION
Revenue in respect of sale of products is recognized at the point of
despatch to customers from the warehouse/ nurseries.
G. GRATUITY & LEAVE ENCASHMENT
No provision of Gratuity and Leave encashment has been made as we have
been informed that these are not applicable for the year under audit.
H. PRELIMINARY EXPENSES
Preliminary expenses (including share issue expenses) are written off
over a period of ten years.
I. FOREIGN EXCHANGE TRANSACTIONS
Foreign Currency transactions arising during the year are recorded at
the exchange rates prevailing at the date of the transaction. Any
exchange difference arising resultantly has been dealt in Profit & Loss
J. CONTINGENT LIABILITIES
a. There are no contingent liabilities during the period under review.
b. The previous year figures have been rearranged, regrouped and
reclassified wherever deemed necessary in order to make them comparable
with the presentation of the current year.
K. EXPORT BENEFITS/INCENTIVES
Export benefits/incentives would accounted for on realization/accrual
Taxation is accounted on the basis of liability method.