a) CONVENTION
 
 The financial statements have been prepared to comply in all material
 aspects with all the applicable accounting principles in India, the
 applicable accounting standards, notified u/s 211(3C) of the Companies
 Act, 1956 and the relevant provisions of the Companies Act, 1956. A
 summary of important accounting policies which have been applied
 consistently, are set out below. Financial Statements have also been
 prepared in accordance with relevant presentational requirements of the
 Companies Act, 1956 of India.
 
 b) BASIS OF ACCOUNTING
 
 The financial statements have been prepared in accordance with the
 historical cost convention.
 
 c) FIXED ASSETS
 
 I) TANGIBLE
 
 i) Fixed assets are stated at cost of acquisition together with any
 incidental expenses of acquisition.
 
 ii) Depreciation on fixed assets other than Livestock and Estate &
 Development has been provided on Written Down value method in
 accordance with Schedule XIV of the Companies Act, 1956. Estate &
 Development is not depreciated. Livestock is expensed over its useful
 life.
 
 iii) All expenditure incurred for extension of new areas of cultivation
 are capitalised. However, cost of upkeep and maintenance and cost of
 replanting in existing areas are charged to revenue.
 
 iv) Subsidies from Government in respect of fixed assets are deducted
 from the cost of respective assets.
 
 v) Profit or Loss on disposal of Fixed Assets is recognised in the
 Profit and Loss Account.
 
 II) INTANGIBLE
 
 i) Cost of software is capitalised where it is expected to provide
 future enduring economic benefits.  Capitalisation costs include
 licence fees and cost of implementation / system integration services.
 The costs are capitalised in the year in which the relevant software is
 implemented for use. Expenses incurred on upgradation / enhancements is
 charged off as revenue expenditure unless they bring similar
 significant additional benefits.
 
 ii) Capitalised software costs is amortised on a straight line basis
 over a period of five years.
 
 III) IMPAIRMENT OF FIXED ASSETS
 
 An impairment loss is recognised where applicable, when the carrying
 value of the fixed assets of a cash generating unit exceeds its net
 selling price or value in use, whichever is higher.
 
 d) INVESTMENTS
 
 Long Term Investments are stated at cost and where applicable,
 provision is made in case of permanent diminution in value of
 investments. Current investments are stated at lower of cost or fair
 value.
 
 e) INVENTORIES
 
 Inventories are valued at lower of cost and net realisable value. Cost
 is determined on weighted average basis. Cost comprises expenditure
 incurred in the normal course of business in bringing such inventories
 to their location and condition and includes appropriate overheads.
 Provision is made for obsolete and slow moving stocks where necessary.
 
 f) RESEARCH AND DEVELOPMENT
 
 Research and Development Expenditure of revenue nature is charged to
 the Profit and Loss Account and capital expenditure is treated as fixed
 assets.
 
 g) RETIREMENT BENEFITS
 
 (i) The Company operates defined contribution schemes like Provident
 Fund and defined Contribution Pension Schemes.
 
 The Company makes regular contribution to provident funds which are
 fully funded and administered by Government and are independent of
 Company''s finance. Contributions are recognized in Profit & Loss
 Account on an accrual basis. The Company operates a non contributory
 defined contribution pension scheme for certain employees. The Company
 contributes 15% of the employees'' current salary to the above
 contribution fund which is recognised in the Profit & Loss Account.
 
 The Company also operates defined benefit Provident Fund Schemes for
 certain employees which are fully funded and administered by trustees
 and are independent of the Company''s finance. The Company makes regular
 contributions to the fund and shortfall if any, arising out of annual
 actuarial valuation, is recognized in the Profit and Loss Account.
 
 (ii) Defined Benefit Gratuity Plan is maintained by the company for all
 its eligible employees. The Company also operates a Non Contributory
 Defined Benefit Pension Scheme for certain employees. The Company
 contributes to such funds on the basis of actuarial valuation at the
 end of each year after setting off any net asset in respect of either
 fund. Both the Pension Fund and gratuity fund are administered by the
 Trustees and is independent of the Company''s finance.
 
 (iii) For Schemes where recognized funds have been set up annual
 contributions determined as payable in the actuarial valuation report
 are contributed. Actuarial gains & losses are recognized in the Profit
 & Loss Account. The Company recognizes in the Profit & Loss Account
 gains or losses on curtailment or settlement of a defined benefit plan
 as and when the curtailment or settlement occurs.
 
 (iv) Post retirement medical benefits are provided by the Company for
 certain category of employees.  Liability is determined through
 independent year end actuarial valuation and is recognized in the
 Profit & Loss Account.
 
 (v) Provision is made for retirement leave encashment benefit payable
 to employees on the basis of independent actuarial valuation, at the
 end of each year and charge is recognized in the Profit and Loss
 Account.
 
 h) SALES
 
 Sales represent the invoiced value of goods supplied less Sales Tax /
 Value Added Tax.
 
 i) INCOME FROM INVESTMENTS
 
 Income from investments is included together with the related tax
 credit in the Profit and Loss Account.
 
 j) REPLANTING AND OTHER SUBSIDIES
 
 Replanting and other subsidies of revenue nature are recognised as
 income in the Profit and Loss Account.
 
 k) FOREIGN CURRENCY TRANSACTIONS
 
 Transactions in foreign currencies are recorded in rupees by applying
 the exchange rate prevailing on the date of transaction. Transactions
 remaining unsettled are translated at the rate of exchange ruling at
 the end of the year. Exchange gain or loss arising on
 settlement/translation is recognised in the Profit and Loss Account.
 
 Premium or discount on forward contracts are amortised as expense or
 income over the life of the contract.  Foreign exchange forward
 contracts are revalued at the Balance Sheet date and the exchange
 difference is recognised as gain/loss in the Profit & Loss Account.
 Profit or Loss on cancellations/renewals of forward contracts is
 recognised in the Profit and Loss Account.
 
 l) TAXES ON INCOME
 
 Current tax represents the amount computed as per prevailing taxation
 laws under the Income Tax Act, 1961.
 
 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 have
 been recognized where there is reasonable certainty that sufficient
 future taxable income will be available against which such deferred tax
 assets can be realized.
 
 m) BORROWING COSTS
 
 Borrowing cost attributable to acquisition and/or construction of
 qualifying assets are capitalised as a part of the cost of such assets
 up to the date when such assets are ready for intended use. Other
 borrowing costs are charged to Profit and Loss Account.
 
 n) LEASES
 
 Lease payments under the Operating Lease are recognised as an expense
 in the Profit & Loss Account, on a straight line basis over the lease
 term.