a) The Financial Statements are prepared in accordance with generally
 accepted accounting principles and as per the requirements of the
 Companies Act, 1956.
 
 b) The accrual basis of accounting is followed unless otherwise stated.
 
 c) Fixed Assets (excluding Revalued Assets) are stated at cost
 including cost of installation and other incidental expenses. Assets of
 Rs. 5,000/- and below have been fully depreciated during the year of
 purchase.
 
 d) Depreciation on Fixed Assets, acquired after 31.08.1970 has been
 calculated on Straight Line Method under Section 205(2)(b) of the
 Companies Act, 1956 while other assets have been depreciated on Written
 Down Value Method under Section 205(2)(a) of the said Act.
 
 e) Investments are stated at cost. Temporary diminution in the value of
 investments have not been provided for as they are long term in nature.
 
 f) Inventories are valued on FIFO basis as under:-
 
 i) Stores, Spares & Others : At cost exclusive of CENVAT receivable
 
 ii) Finished Goods : At lower of cost or market value
 
 iii) Stock-in-Process :
 
 -Sugar and Molasses : at lower of estimated cost or realisable value
 -Planted Trees, having maturity of above 18 months, are taken at
 estimated realisable value
 
 g) The liability for Gratuity and leave encashment have been provided
 with Annual Contribution to the Life Insurance Corporation of India
 under its Group Gratuity-cum- Life Assurance Scheme/Group Leave
 Encashment Scheme.
 
 h) Sales are shown inclusive of excise duty and net of returns.  i)
 Foreign Exchange Transactions :
 
 i) Transactions in foreign currencies are recognised at the prevailing
 exchange rates on the transaction dates. Realised gains and losses on
 settlement of foreign currency transactions are recognised in the
 Profit & Loss Account. Foreign currency monetary items at the year-end
 are reported at the year-end exchange rate, and the resultant exchange
 difference is recognised in the Profit & Loss Account.  ii) In respect
 of transactions covered by Forward Exchange Contracts, the difference
 between the contract rate and spot rate on the date of transaction is
 amortised over the life of contract.  j) The expenses incurred on
 Sugarcane and on Trees are accumulated under the caption Standing
 Sugarcane and Planted Trees (excluding Planted Trees having maturity
 of over 18 months) respectively and charged to Profit & Loss Account in
 the year of harvesting.  k) Excise Duty under expenditure, represents
 payments made/to be made during the year on goods cleared/to be
 cleared.
 
 I) Borrowing Cost: Borrowing costs in relation to a qualifying asset
 and capitalised as part of the cost of a qualifying asset when it is
 probable that they will result in future economic benefits to the
 enterprise and the costs can be measured reliably.  Other borrowing
 costs are recognised as an expense in the period in which they are
 incurred.
 
 m) The loss is understated by an amount of Rs. 5,96,190/- on account of
 rent of Red Cross Place in the Profit & Loss Account since the matter
 is sub judice.
 
 n) Impairment of losses, if any, are recognised in accordance with the
 accounting standard issued in this regard by the Institute of Chartered
 Accountants of India.
 
 o) Taxation : Provision for tax is made on the taxable income for the
 year in accordance with the applicable provisions of the Income Tax
 Act, 1961. Deferred tax is recognised subject to consideration of
 prudence in respect of deferred tax assets, on timing differences,
 being the difference between taxable income and accounting income that
 originate in one period and are capable of reversal in one or more
 subsequent periods.
 
 p) Provisions are recognised in respect of obligations where, based on
 the evidence available, their existence at the Balance Sheet date.
 Contingent Liabilities are shown by way of Notes to the Accounts in
 respect of obligations where, based on the evidence available, their
 existence at the Balance Sheet date is considered not probable.
 
 Contingent assets are neither recognised nor disclosed in the financial
 statements.
 
 q) Payment for services where service tax is charged and credit for the
 same is taken as accounted net of service tax.