1) Basis of preparation of financial statements:
 
 a) The Financial Statements have been prepared to comply in all
 material respect with the Notified Accounting Standards by Companies
 (Accounting Standards) Rules, 2006, (as amended), and the relevant
 provisions of the Companies Act, 1956. The Financial Statements have
 been prepared under the historical cost convention, in accordance with
 the generally accepted accounting principles. The accounting policies
 have been consistently applied by the company and are consistent with
 those used in the Previous year.
 
 b) The Company follows the mercantile systems of accounting and
 recognises income and expenditure on an accrual basis except stated
 otherwise.
 
 2) Revenue Recognition:
 
 a) Export sales are accounted based on the dates of Bill of Lading.
 
 b) Export incentives and assistance is recognised in the year of
 exports.
 
 3) Use of Estimates: In preparation of financial statements requires
 estimates and assumptions to be made which affect the reported amounts
 of assets / liabilities and disclosures of contingent liabilities on
 the date of financial statements and the reported amounts of revenues
 and expenses during the reporting period. Although those estimates are
 based upon Management''s best knowledge of current events and actions,
 actual result could differ from these estimates.
 
 4) Fixed Assets and Depreciation / Amortization:
 
 a) Fixed assets are carried at cost of acquisition / construction,
 except Leasehold Land which is carried at book value.
 
 b) Leasehold Land is amortised over the period of lease.
 
 c) Depreciation:
 
 i) Depreciation on all the assets has been provided at the rates and in
 the manner prescribed in Schedule XIV to the Companies Act, 1956 on
 Straight Line Method except Green Houses, Shade and Poly-houses
 depreciated at 10%.
 
 ii) Depreciation on additions to assets or on sale / disposal of assets
 is calculated from the beginning of the month of such addition or up to
 the month of such sale / scrapped, as the case may be.
 
 iii) Trade Mark and Development costs are amortised over a period of 18
 years beginning from the date of commercial use.
 
 iv) Computer Software, Technical Knowhow etc are amortised over a
 period of 5 years from the date of acquisition.
 
 5) Capital Work In Progress: Expenditure during construction period
 including development cost incurred on the projects under
 implementation are treated as pre-operative expenses pending allocation
 to the assets, and are included under Capital Work in Progress. These
 expenses are apportioned to fixed assets on commencement of commercial
 production. Capital Work in Progress is stated at the amount expended
 up to the date of balance sheet.
 
 6) Borrowing Cost: Borrowing cost attributable to acquisitions and
 construction of qualifying assets are capitalized as a part of cost of
 such assets. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for its intended use. All other
 borrowing cost are charged to Profit & Loss Account.
 
 7) Investments: Long-term investments are carried at ‘cost''. However,
 the provision for diminution in the value is made to recognize a
 decline other than temporary in the value of the investments. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis.
 
 8) Inventory Valuation:
 
 a) Raw Materials and Components, Stock in Process, Finished goods are
 valued at cost or net realisable value whichever is lower. Finished
 goods at factory premises & depots are valued at inclusive of excise
 duty.
 
 b) Stores, Spares and Consumables are valued at cost except certain
 spares are valued at cost or its fair value which ever is lower.
 
 c) Goods / Materials in Transit are valued at cost to date.
 
 d) Cost comprises cost of purchase, cost of conversion and other cost
 incurred in bringing the inventory to present location and condition.
 Cost is arrived at on weighted average basis.
 
 e) Stock for Demonstration lying with third parties at sites are valued
 at the estimated value of its useful life in relation to its original
 cost at the time of transfer to the third party.
 
 9) Foreign Currency Transactions : All transactions in foreign
 currency, are recorded at the rates of exchange prevailing on the dates
 when the relevant transactions take place.
 
 Monetary items in the form of Loans, Current Assets and Current
 Liabilities in foreign currency, outstanding at the close of the year,
 are converted in Indian Currency at the appropriate rates of exchange
 prevailing on the date of the Balance Sheet. Resultant gain or loss is
 accounted during the year.
 
 10) Foreign Currency Derivative contracts : The Company is exposed to
 foreign currency fluctuations on foreign currency assets and
 liabilities and forecasted cash flows denominated in foreign currency.
 In order to limit the effects of foreign exchange rate fluctuations,
 the Company enters into derivative contracts, viz. forward contracts,
 option contracts, etc., with banks under its risk management policies.
 
 In absence of any specific accounting treatment prescribed in the
 applicable accounting standards to such derivative contracts, other
 than forward contracts, the Company is applying the principles as set
 out in Accounting Standard 30 –
 
 Financial Instruments - Recognition and Measurement issued by The
 Institute of Chartered Accountants of India for such instruments, to
 the extent they do not conflict with existing accounting standards and
 other authoritative pronouncements of Company Law and other regulatory
 requirements.
 
 Accordingly, the Company records the gain or loss on effective hedges
 in the Hedging Reserve until the transactions are complete. On
 completion, the gain or loss is transferred to the profit and loss
 account of that period. To designate a contract as an effective hedge,
 management objectively evaluates at the inception of each contract
 whether the contract is effective in achieving off setting cash flows
 attributable to the hedged risk. In the absence of a designation as
 effective hedge, the gain or loss is immediately recognized in the
 profit and loss account.
 
 11) Government Grants and Subsidies :
 
 a.  Grants and subsidies from the government are recognized when there
 is reasoable certainty that the grant/subsidy will be received and all
 attaching conditions will be complied with.
 
 b.  When the grant or subsidy relates to an expense item, it is
 recognised as income over the periods necessary to match them on a
 systematic basis to the costs, which it is intended to compensate.
 
 c.  Where the grant or subsidy relates to an asset, its value is
 deducted from the gross value of the asset concerned in arriving at the
 carrying amount of the related asset.
 
 d.  Government grants of the nature of promoters'' contribution are
 credited to capital reserve and treated as a part of shareholders''
 funds.
 
 e.  Revenue grants are recognized in the Profit and Loss Account in
 accordance with the related scheme and in the period in which these are
 accrued.
 
 12) Amortisation / Write off of Other Assets: Orchard expenditure is
 amortised over a period of 15 years commencing from the 6th year from
 the date of planting. Orchard mortality during first two years of
 planting up to 10% is considered normal and any mortality after second
 year is charged to Profit & Loss Account.
 
 13) Employee Benefits: Short term employee benefits are recognised as an
 expense at the undiscounted amount in the Profit and Loss Account of
 the year in which the related service is rendered.
 
 Post employment benefits:
 
 a) Defined contribution plans: Company''s contribution to the provident
 fund scheme, Superannuation, etc are recognised during the year in
 which the related service is rendered.
 
 b) Defined benefit plans: The present value of the obligation is
 determined based on an actuarial valuation, using the Projected Unit
 Credit Method. Actuarial gains and losses on such valuation are
 recognised immediately in the Profit and Loss Account. The fair value
 of the plan assets of the trust administered by the Company, is reduced
 from the gross obligation under the defined benefit plan, to recognise
 the obligation on a net basis.
 
 c) Long Term compensated absences are provided on the basis of an
 actuarial valuation.
 
 d) Termination Benefits are charged to Profit and Loss Account in the
 year in which they are incurred.
 
 14) Shares/ Bonds/Debentures Issue Expenses and Premium on Redemption:
 Shares/ bonds/ debenture issue expenses and premium on redemption of
 debentures, preference shares and bonds are adjusted against the
 balance in Securities Premium Account in accordance with provisions
 of Section 78 of the Companies Act, 1956.
 
 15) Tax Provision: Income-tax expense comprises Current Tax and
 Deferred tax charge or credit. Provision for current tax is made on the
 assessable Income at the tax rate applicable to the relevant assessment
 year.
 
 Minimum Alternate Tax (MAT) paid in accordance with the Tax Laws, which
 gives rise to future economic benefits in the form of adjustment of
 future Income tax liabilities, is considered as an assets, when there
 is convincing evidence that the company will pay normal income tax.
 
 The deferred tax asset and/or deferred tax liability; is calculated by
 applying the applicable tax rate as at Balance Sheet date. Deferred tax
 assets arising mainly on account of brought forward losses and
 unabsorbed depreciation is recognised in view of the managements''
 assessment of virtual certainty of its realisation, deferred tax
 adjustment on account of other timing differences are recognised only
 to the extent there is a reasonable certainty of its realisation. At
 each balance sheet date, carrying amount of deferred asset/liability is
 reviewed and the necessary adjustment to asset or liability is made.
 
 16) Provisions: A provision is recognised when there is present
 obligation as a result of past event, that probably requires an outflow
 of resources and a reliable estimate can be made to settle the
 obligation. Provision is not discounted to its present value and is
 determined based on the last estimate required to settle the
 obligation. These are reviewed at each year end and adjusted to reflect
 the best current estimates.
 
 17) Impairment of Assets: At each balance sheet date, the Company
 reviews the carrying amounts of its assets to determine whether there
 is any indication that those assets suffered any an impairment loss. If
 any such indication exists, the recoverable amount of the asset is
 estimated in order to determine the extent of impairment loss.
 Recoverable amount is the higher of an asset''s net selling price and
 value in use. In assessing value in use, the estimated future cash-
 flow expected from the continuing use of the assets and from its
 disposal are discounted to their present value using a pre-tax discount
 rate that reflects the current market assessments of time value of
 money and the risk specific of the assets.
 
 Reversal of impairment loss is recognised immediately as income in the
 profit and loss account.
 
 18) Employees Stock Options and Shares Plan (ESOP): In accordance with
 SEBI guidelines, the excess of the market price of the shares at the
 date of grant of options under the ESOP, over the exercise price, is
 treated as Employee Compensation Expense and amortized on a
 straight-line basis over the vesting period of options.
 
 19) Goodwill on acquisition : Goodwill arising on acquisition of
 business has been amortised over the period of 5 years from the date of
 acquisition. (Refer Note No 17 of schedule 22 Part B below)