(A) Basis of preparation of financial statements:
 
 The accompanying financial statements have been prepared under the
 historical cost convention, in accordance with Indian Generally
 Accepted Accounting Principles and as per the provisions of the
 Companies Act, 1956.
 
 (B) Use of estimates:
 
 The preparation of financial statements in conf ormity with generally
 accepted accounting principles requires estimates and assumptions to be
 made that affect the reported amounts of assets and liabilities and
 disclosure of contingent liabilities on the date of the financial
 statements and the reported amounts of revenues and expenses during the
 reporting period. Actual results could differ from those estimates and
 dif ferences between actual results and estimates are recognized in the
 periods in which the results are known/materialize.
 
 (C) Tangible Fixed Assets and Depreciation
 
 Fixed Assets are valued at their historical cost of acquisition or
 construction less accumulated depr eciation. Cost includes all costs
 incurred to bring the assets to their present location and condition.
 
 Depreciation on Tangible Fixed Assets is provided for on straight line
 basis in accordance with Section 205 (2) (b) of the Companies Act, 1956
 (the Act) as follows:
 
 (i) On fixed assets (except as stated below), at the rates specified in
 Schedule XIV to the Act.
 
 (ii) Field vehicles are depreciated at the rate of 20%.
 
 (iii) Plant and Machinery other than dryer is depreciated at the rate
 of 10%. Dryer is depreciated at the rate of 5%.
 
 (iv) Mobile phones (Blackberry) have been depreciated at the rate of
 33.33%
 
 (v) Leasehold improvements are amortized over the unexpired period of
 lease.
 
 (vi) Factory Buildings are depreciated at the rate of 5%.
 
 (D) Intangible Assets and Amortization
 
 Intangible Assets are valued at their cost less accumulated
 amortization. Cost includes all costs incurred to bring the assets to
 their present location and condition.
 
 Intellectual Property Rights are amortized on a Straight Line basis
 over its useful life which is estimated by the management to be 5
 years.
 
 Computer Software is amortized on a Straight Line basis over its useful
 life which is estimated by the management to be 6 years.
 
 (E) Impairment
 
 An asset is considered as impaired in accordance with Accounting
 Standard 28 on Impairment of Assets when at balance sheet date there
 are indications of impairment and the carrying amount of the asset, or
 where applicable the cash generating unit to which the asset belongs,
 exceeds its recoverable amount (i.e. the higher of the asset''s net
 selling price and value in use). In assessing the value in use, the
 estimated future cash flow expected from the continuing use of the
 asset and its ultimate disposal are discounted to their present value
 using a predetermined discount rate. The carrying amount is reduced to
 the recoverable amount and the reduction is recognized as an impairment
 loss in the profit and loss account.
 
 (F) Investments:
 
 Current investments are stated at the lower of cost and fair value.
 
 (G) Inventories:
 
 Inventories are measured at the lower of cost and net realizable value.
 
 Costs of inventories comprise all costs of pur chase - net of CENVAT,
 costs of inputs f or standing crops, cost of conversion and other costs
 incurred in bringing the inventory to their present location and
 condition. Cost of Raw Materials, Packing Materials and finished goods
 (T raded Goods) are determined on FIF O basis. Cost of Work in Process
 and Finished Goods (manufactured) are determined by the absorption
 costing method.
 
 (H) Revenue Recognition:
 
 (i) Revenue is recognized when it is earned and no
 significantuncertainty exists as to its realization or collection.
 Revenue on sale of pr oducts is r ecognized on deliv ery of the pr
 oducts, when all significant contr actual obligations have been
 satisfied, the pr operty in the goods is tr ansferred for a price,
 significant risks and rewards of ownership have been transferred and no
 effective ownership control is retained.
 
 Sales are stated inclusive of excise duty and net of r eturns, trade
 discounts and sales tax r ecovered. The amount of excise duty that is
 included in the amount of turno ver (gross) is presented as a reduction
 from gross sales in accordance with the A ccounting Standard
 interpretation ASI 14 ªDisclosure of revenue from sales transactionsº.
 
 (ii) Revenue in respect of royalty, commission, etc. is recognized in
 accordance with contractual obligations.
 
 (iii) Interest income is recognized on a time proportion basis.
 
 (I) Foreign Currency Transactions:
 
 (i) Transactions in foreign currency are recorded at the average
 monthly exchange rates, during the months in which the transactions are
 effected.
 
 (ii) Exchange differences arising on set tlement of r evenue
 transactions are recognized in the Pr ofit & L oss Account.
 
 (iii) Monetary items denominated in f oreign currency are restated
 using the exchange rates prevailing at the date of the balance sheet .
 Gains/losses arisin g on r estatement and on set tlement of such
 liabilities ar e recognized in the profit and loss account.
 
 (J) Employee Benefits:
 
 (i) Provident fund is a defined contribution scheme and the
 contributions as r equired by the statute made to Government Provident
 Fund are charged to profit and loss account.
 
 (ii) Superannuation fund is a defined contribution scheme . The Company
 contributes a sum equivalent to 15% of eligible employees salary to
 Superannuation Fund administered by trustees and managed by life
 insured company. The Company recognizes such contribution as an expense
 as and when incurred.
 
 (iii) The Company participates in a group gratuity cum life insurance
 scheme administered by the TATA AIG Life Insurance Company Ltd. Being a
 defined benefit plan, annual contributions made to the scheme ar e as
 per the intimations received from the TATA AIG Life Insurance Company
 Ltd. The Company accounts for liability for future gratuity benefits
 based on an actuarial v aluation conducted by an independent actuar y.
 The net present value of the C ompany''s obligation is determined based
 on the pr ojected unit credit method as at the Balance Sheet date .
 Additionally shortfall, if any, between the balance in the fund with T
 ata AIG Life Insurance Company Ltd. and actuarial v aluation obtained
 from an independent actuar y is charged to the profit and loss account.
 
 (iv) The undiscounted amount of short-term employee benefits expected
 to be paid in exchange for the services rendered by emplo yee is r
 ecognized during the period when the emplo yee renders the ser vice.
 These benefits include performance incentives and non vesting
 accumulated compensated absences.
 
 (v) The liability for compensated absences is an other lon g term
 benefit and is wholly unfunded. The liabilit y for number of days of
 unutilized leave at each Balance Sheet date is provided for based on an
 independent actuarial valuation.
 
 (vi) The actuarial gains and losses are recognized immediately in the
 statement of Profit and Loss Account.
 
 (K) Earnings Per Share:
 
 The Company reports Earnings Per Share (EPS) in accordance with
 Accounting Standard 20 on Earnings Per Share.  Basic EPS is computed by
 dividin g the net profit for the year by the weighted a verage number
 of equit y shares outstanding during the year.
 
 (L) Taxation:
 
 Income tax is accounted for in accordance with Accounting Standard 22
 on Accounting for Taxes on Income. Taxes comprise both current and
 deferred tax.
 
 Current tax is measured at the amount expected to be paid to (recovered
 from) the taxation authorities, using the applicable tax rates and tax
 laws.
 
 The tax effect of the timing differences that result between taxable
 income and accounting income and are capable of reversal in one or more
 subsequent periods are recorded as a deferred tax asset or deferred tax
 liability. They are measured using the substantively enacted tax rates
 and tax regulations. The carrying amount of deferred tax assets at each
 balance sheet date is r educed to the extent that it is no lon ger
 reasonably certain that sufficient future taxable income will be
 available against which the deferred tax asset can be realized.
 
 (M) Operating Lease:
 
 Operating lease payments are recognized as expenditure in the profit
 and loss account on a str aight-line basis, which is representative of
 the time pattern of benefits received from the use of assets taken on
 lease.
 
 (N) Provisions, Contingent Liabilities and Contingent Assets:
 
 Provisions involving a substantial degree of estimation in measur ement
 are recognized when there is a present obligation as a r esult of past
 ev ents and it is pr obable that there will be an out flow of
 resources. Contingent liabilities are not recognized but are disclosed
 in the financial statements. Contingent assets are neither recognized
 nor disclosed in the financial statements.
 
 (O) Cash Flow Statement:
 
 The Cash Flow Statement is pr epared by the indir ect method set out in
 A ccounting Standard- 3 on Cash Flow Statement and presents cash flows
 by operating, investing and financing activities of the Company. Cash
 and cash equivalents presented in the cash flow statement c onsist of
 cash on hand and balances in curr ent and demand deposits with banks.