I.  Basis of preparation of Financial Statements
 
 Rain Commodities Limited (''the Company'') follows the accrual basis of
 accounting. The financial statements are prepared on historical cost
 basis and to comply with accounting principles generally accepted in
 India, the Accounting Standards notified under Companies (Accounting
 Standards) Rules, 2006 and the relevant provisions of the Companies
 Act, 1956.
 
 II.  Significant Accounting Policies
 
 a) Use of Estimates
 
 The preparation of the financial statements in conformity with the
 generally accepted accounting principles requires that the management
 makes estimates and assumptions that affect the reported amounts of
 assets and liabilities, disclosure of contingent liabilities as at the
 date of the financial statements and the reported amounts of revenue
 and expenses during the reported period. Actual results could differ
 from those estimates.
 
 b) Revenue Recognition
 
 Sales are recognized on dispatch of goods to customers and upon
 transfer of title in goods to customers. Gross sales include excise
 duty and sales tax recovered and are net of trade discounts.
 
 c) Dividend Income
 
 Dividend income is recognized when the Company''s right to receive
 dividend is established.
 
 d) Interest Income
 
 Interest income is recognized using the time proportion method, based
 on the transactional interest rates.
 
 e) Fixed Assets, Depreciation and Impairment
 
 Fixed assets are stated at cost less accumulated depreciation. Cost
 includes freight, installation cost, duties and taxes, interest on
 specific borrowings utilized for financing the assets and other
 incidental expenses.
 
 Depreciation is provided on straight line method at the rates specified
 in Schedule XIV to the Companies Act, 1956 or based on the estimated
 economic useful lives whichever is higher.
 
 Individual assets costing Rs.5,000 or below are entirely depreciated in
 the year of acquisition and put to use.
 
 All Fixed assets are assessed for any indication of impairment, at the
 end of each financial year.  On such indication, the impairment loss,
 being the excess of carrying value over the recoverable value of the
 assets, is charged to the Profit and Loss Account in the respective
 financial years.  The impairment loss recognized in the prior years is
 reversed in cases where the recoverable value exceeds the carrying
 value, upon reassessment in the subsequent years.
 
 f) Inventories
 
 Inventories are valued at cost or below. Raw materials cost is computed
 on the basis of weighted average cost per unit of measurement after
 providing for obsolescence, if any. Finished goods and work in progress
 are valued at lower of cost and net realisable value. Cost is
 determined on a weighted average basis and comprises material, labour
 and applicable overhead expenses. Stores and spares are valued at cost
 determined on weighted average basis, or below.
 
 Goods in transit are valued at cost or below.  Traded goods are valued
 at lower of weighted average cost and net realizable value.
 
 g) Earnings Per Share (EPS)
 
 The earnings considered in ascertaining the Company''s EPS comprises the
 net profit after tax.  The number of shares used in computing basic EPS
 is the weighted average number of shares outstanding during the year.
 
 Dilutive potential equity shares are deemed to be converted as of the
 beginning of the year, unless they have been issued at a later date.
 The number of shares used for computing the diluted EPS is the weighted
 average number of shares outstanding during the year after considering
 the dilutive potential equity shares.
 
 h) Taxes on Income
 
 Current tax is determined based on the amount of tax payable in respect
 of taxable income for the year.  Deferred tax is recognised on timing
 differences being the differences between the taxable income and
 accounting income that originate in one period and are capable of
 reversal in one or more subsequent periods subject to consideration of
 prudence. Deferred tax assets are not recognized unless there is
 virtual certainty that there will be sufficient future taxable income
 available to realize such asset. Deferred tax assets and liabilities
 have been computed on the timing differences applying the enacted tax
 rates.
 
 i) Foreign Currency Transactions
 
 Transactions in foreign currency are recorded at the exchange rates
 prevailing on the date of the transactions.  Monetary assets and
 liabilities denominated in foreign currency are restated at the
 prevailing year end rates.  The resultant gain/ loss upon such
 restatement along with the gain/loss on account of foreign currency
 transactions are accounted in the Profit and Loss account.
 
 j) Investments
 
 Long term investments are stated at cost less provision for diminution,
 other than temporary, if any, in the value of such investments. Current
 investments are carried at the lower of cost and fair value.