A.  Basis of Preparation of Financial Statements
 
 a) The financial statements have been prepared under the historical
 cost convention, in accordance with generally accepted accounting
 principles and the provisions of the Companies Act, 1956 as adopted and
 applied consistently by the Company.  The Company''s dehiscing plant at
 Kundli has remained closed since Jan 2002.  The accounts have been
 prepared on the going concern basis as the company has continued rice
 processing activity at Kandla and Bundi.
 
 b) The presentation of financial statements in conformity with the
 generally accepted accounting principles requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of the financial statements and reported amount
 of revenue and expenses during the reporting period.  Difference
 between the actual result and estimates are recognized in the period in
 which the results are known / ascertained.
 
 B.  Recognition of the Components of Financial Statements
 
 i.  Fixed Assets and Depreciation
 
 a) Fixed assets are stated at cost of acquisition and construction less
 accumulated depreciation.
 
 b) Depreciation is provided on Straight Line Method at the rates and in
 the manner prescribed in Schedule XIV to the Companies Act, 1956.
 
 c) In accordance with the Accounting Standard 28 on Impairment of
 assets issued by the Institute of Chartered Accountants of India,
 Assets are treated as impaired when the carrying cost of assets exceeds
 its recoverable amount.
 
 As per the valuation carried out by the management from an independent
 valuer and as per the valuation of fixed assets carried out by the
 management, they arrived at the conclusion that the market value of its
 assets exceeds the carrying cost and even though the unit, at Kundli is
 closed, the management is of the view that since the market value of
 assets recovers its cost, no loss on account of impairment of assets
 should be considered.
 
 ii.  Investment
 
 Long term investments are stated at cost less provision for permanent
 diminution in value of such investments. Current investments are stated
 at lower of cost and fair value.
 
 iii. Inventories
 
 In general all Inventories of raw materials, finished goods and stores
 and spares etc. are stated at lower of cost or net realisable value.
 Cost of inventories comprise of all cost of purchase, cost of
 conversion and other cost incurred in bringing the inventory to their
 present location and condition. The cost of raw materials is determined
 on weighted average basis and stores & spares on FIFO basis.
 
 iv.  Foreign Currency Transactions
 
 a) Transactions denominated in foreign currencies are normally recorded
 at the exchange rate prevailing at the time of transaction.
 
 b) Monetary items denominated in foreign currencies at the year end not
 covered by the forward exchange contracts are translated at the year
 end rates and those covered by forward exchange contracts are
 translated at the rate ruling at the date of transaction as increased
 or decreased by the proportionate difference between the forward rate
 and exchange rate on the date of transaction, such differences having
 been recognized over the life of the contract.
 
 c) Gain or loss arising out of translation/conversion is taken credit
 for or charged to the Profit and Loss Account.
 
 v.  Employee Retirement Benefits
 
 Provision for gratuity liability to employees is made on the basis of
 actuarial valuation.
 
 vi.  Recognition of Income and Expenditure
 
 The Company recognizes significant items of income and expenditure on
 accrual basis.  The Company has entered into a selling agent
 arrangement with M/s Vidyavihar Containers Ltd which stipulates
 inter-alia that the Company is entitled to a commission after the sale
 proceeds deposited by the flat purchasers exceeds a figure of Rs.83.50
 Crores.
 
 The Company has achieved the target of collecting Rs. 83.50 Crores
 pursuant to which security deposit and profits have started accruing
 during the year review. The Profits are booked in the books of account
 as and when the same accrues.
 
 One M/s Neelkanth Mansions and Infrastructure Limited (''''NMIL'''') filed
 a suit vide suit no. 830 of 2010 wherein the Company, M/s Treetop
 Housing & Estate Pvt. Ltd.(Treetop) were made Respondents. The said
 NMIL has claimed their share in the proceeds overflowing the target
 amount of Rs. 83.50 crores. The Company, Treetop and NMIL entered into
 consent term on 2nd July 2011whereby each of the three parties will
 receive the overflow of proceeds equally.
 
 vii. Borrowing Cost
 
 The borrowing costs are normally charged to revenue except those that
 are attributable to the acquisition or construction of the qualifying
 assets, which are capitalized. A qualifying asset is one that
 necessarily takes substantial period of time to get ready for intended
 use.
 
 viii.  Provision
 
 A provision is recognized when an enterprise has a present obligation
 as a result of past event; it is probable that an outflow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made. Provisions are not discounted to present
 value and are determined based on best estimate required to settle the
 obligation at the balance sheet date. These are reviewed at each
 balance sheet date and adjusted to reflect the current best estimates.
 
 ix.  Sales and Services
 
 Sales and services include service charges, commission but exclude
 sales tax and service tax.