1. SIGNIFICANT ACCOUNTING POLICIES
 
 A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
 
 * The financial statements have been prepared under the historical cost
 convention.
 
 * The system of accounting followed is mercantile system and as per the
 provisions of Companies Act, 1956 and as adopted consistently by the
 Company.
 
 * Accounting Policies not specifically referred to otherwise are
 consistent and in consonance with generally accepted accounting
 principles.
 
 * 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.
 
 C. DEPRECIATION
 
 Depreciation is provided on written down value method as per the
 Companies Act, 1956.
 
 D. INVENTORIES
 
 Inventories are stated at cost or net realizable value whichever is
 lower.
 
 E. INVESTMENTS
 
 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
 Account.
 
 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
 basis.
 
 L. TAXATION
 
 Taxation is accounted on the basis of liability method.