1.  Basis of Preparation:
 
 The accompanying Financial Statements have been prepared on a going
 concern basis under the historical cost convention on the accrual basis
 of accounting in conformity with Generally Accepted Accounting
 Principles in India (India GAAP).
 
 2.  Valuation of Inventories:
 
 Inventories of raw materials, work-in-progress, stores, finished
 products and stock-in-trade are valued at the lower of cost or net
 realizable value. Cost is ascertained on seasonal weighted average for
 sugar and yearly average for stores and soya products. Soya Bean,
 Stock-in-trade of fertilizer and newsprint cost ascertained on FIFO
 basis.  By-products are valued at Net realizable value. Standing crops
 are valued at net realizable value.
 
 3.  Fixed Assets:
 
 a) Fixed Assets are shown at cost/re-valued figures, less accumulated
 depreciation. Fixed assets added during the year are valued at cost net
 of CENVAT but includes all direct expenses like freight, erection
 charges, preoperative expenses and borrowing costs.
 
 b) Expenditure including borrowing cost incurred on projects under
 implementation is shown under Work-in- Progress pending allocation to
 the assets.
 
 4.  Intangible Assets:
 
 The payments made towards goodwill to cane ryots and to employees as
 per wage board settlement during the year 2004-05 are amortized over a
 period of 10 years in accordance with AS-26.
 
 5.  Borrowing Costs:
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets.
 
 6.  Depreciation:
 
 Depreciation is provided under Straight Line Method at the rates as per
 notes prescribed in Schedule XIV to the Companies Act, 1956 on
 revalued/original cost of assets, as the case may be. The additional
 depreciation relating to increased value of revalued assets is adjusted
 against Revaluation Reserve.
 
 7.  Long term Investments are accounted at Cost. The diminution, if
 any, in value of long term investments is provided if such decline is
 other than temporary.
 
 8.  Miscellaneous Expenditure:
 
 Research & Development expenses, Technical know-how, Crop development
 Expenses, soya product launching expenses are written off over a period
 of ten years. Voluntary Retirement Scheme payments upto 31.03.2009 are
 written off over a period of five years. Loan processing fee,
 syndication fee and ancillary cost incurred upto 31st December 2008 are
 written off over the repayment period of respective loans.
 
 9.  a) Revenue Recognition:
 
 Revenue is recognised to the extent it is probable that the economic
 benefits will flow to the Company and the revenue can be reliably
 measured. Revenue from sale of goods is recognised when the significant
 risks and rewards of ownership of the goods are transferred to the
 customer and is stated net of trade discounts, excise duty and sales
 return.
 
 i.  Gross turnover includes excise duty but exclude sales tax.
 
 ii.  Dividend income is accounted for in the year it is declared.
 
 iii.  All other incomes are accounted for on accrual basis.
 
 iv.  The Excise duty on sale of finished goods is deducted from the
 turnover to arrive at the net sales as shown in the Profit and loss
 account.
 
 v.  Intersegmental transfer price is not recognised.
 
 b) Expenditure Recognition:
 
 i.  The Cane price is written off on the basis of determination of
 statutory price and agreed price over and above statutory price.
 
 ii.  The Excise duty appearing in the Profit and loss account under
 Expenditure represents excise duty provision for difference between
 opening and closing stock of finished goods.
 
 10.  Foreign currency transactions:
 
 Foreign currency transactions are accounted at the exchange rate ruling
 on the date of the transactions. Foreign currency monetary items as at
 the date of Balance sheet are restated using the closing exchange rate
 or at the rate that is likely to be realized from/required to disburse.
 
 11.  Retirement Benefits:
 
 Contribution payable by the Company under defined contribution schemes
 towards Provident fund, Gratuity, Employees State Insurance and
 Superannuation fund for the year are charged to profit and loss
 account.
 
 The Company has opted for Life Insurance Corporation of India Group
 Gratuity Scheme. The gratuity liability ascertained by LIC has been
 taken into account.
 
 Provision for liability in respect of Leave encashment benefits are
 made based on actuarial valuation made by an independent actuary as at
 31.03.2011.
 
 12.  The segment reporting is in line with the accounting policies of
 the company. Inter segment transactions have been accounted for based
 on the price which has been arrived at considering cost for utilities
 and net realizable value for by-products. Revenue and expenses that are
 directly identifiable with or allocable to segments are considered for
 determining the segment results. Segment assets and liabilities include
 those directly identifiable with the respective segments. Business
 segments are identified on the basis of the nature of products, the
 risk/return profile of the individual business, the organizational
 structure and the internal reporting system of the company.
 
 13.  Deferred tax is recognized on timing difference between accounting
 income and the taxable income for the period and reversal of timing
 differences of earlier periods and quantified using the tax rates and
 laws that have been enacted / substantively enacted as at the balance
 sheet date. The deferred tax assets are recognized and carried forward
 to the extent that there is reasonable certainty that these would be
 realized in future.
 
 14.  Earning per share:
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 15.  Impairment of Assets:
 
 Impairment, if any, is recognized in accordance with the Accounting
 Standard 28.
 
 16.  Provisions, Contingent Liabilities and Contingent Assets:
 
 Provision is recognized only when there is a present obligation as a
 result of past event and it is probable that there will be an outflow
 of resources. Contingent Liabilities are not recognized but are
 disclosed in the notes. Contingent Assets are neither recognized nor
 disclosed in the financial statements.