1. SIGNIFICANT ACOUNTING POLICIES:

a) Basis of brparation of Financial Statements:

The Financial Statements nave been brpared under the historical cost convention In accordance with generally accepted accounting principles in India and comply in all material aspects with the applicable Accounting Standards notified under section 211 <3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956 as adopted consistently by the Company.

Accounting policies not specifically referred to otherwise are consistent and-In consonance with generally accepted accounting principles followed by the Company.

b) Fixed Assets:  

Fixed Assets are valued at historical cost less debrciation. Attributable costs and expenses including borrowing costs for bringing the respective assets to working condition for their Intended use are capitalized.

c) Debrciation:

Debrciation is provided on straight line method as per the rates brscribed under Schedule XIV of the Companies Act, 1956.

d) Valuation of Inventories:

Closing stock of inventories are valued at lower of cost or net realisable value. Cost has been ascertained on FIFO basis.

e) Revenue Recognition:

Revenue from the sale of grown Items is recognised upon passage of the title to the customers which generally consists with the delivery and acceptance thereof.

Interest Income is recognized on accrual basis.

Operating lease rentals are accounted on mercantile basis as per the terms of the lease agreement.

f) Foreign Exchange transactions:

All foreign currency transactions were initially recognized at the rate on the date of transaction. Exchange differences arising on the settlement of monetary Items were recognized as income/expense. Monetary items as on the date of Balance Sheet are stated at the closing rate/realistic rate.

g) Cash Flow Statement:

The Cash Flow Statement has been compiled from and is based on the Balance Sheet and the related Statement of Profit and Loss for the year ended on that date. The Cash Flow Statement has been brpared under the indirect method as set out in the Accounting Standard - 3 on Cash Flow Statement Issued by ICAI Cash and cash equivalents in the cash flow statement comprise cash at bank, cash/cheques In hand and short term investments with an original maturity of three months or less.

h) Accounting for Taxes on Income:

Current Tax: Provision for Current Income Tax is made on the basis of the taxable income for the year as determined in accordance with the provisions of Income Tax Act, 1961.

Deferred Tax: Deferred income tax is recognized, on timing differences, being the difference between taxable Incomes and accounting income that originate in one period and are capable of reversal In one or more subsequent periods. The tax effect is calculated on the accumulated timing differences at the year end based on tax rates and laws, enacted or substantially enacted as of the Balance Sheet date.

i) Impairment of Assets:

The Management assesses using external and internal sources whether there is any Indication that an asset may be impaired. Impairment of an asset occurs where the carrying value exceeds,the brsent value of cash flow expected to arise from the continuing use of the asset and its eventual disposal. The provision for impairment loss Is made when recoverable amount of the asset Is lower than the carrying amount.

j) Provisions and Contingent Liabilities and Contingent Assets:

Provisions in respect of brsent obligations arising out of past events are made In the accounts when reliable estimate can be made of the amount of obligations and it is probable that there will be an outflow of resources.

 Contingent Liabilities are not recognized but if material, are disclosed in the notes to accounts. Contingent assets are not recognized or disclosed In the financial statements.

k) Operating Lease:

Operating Lease payments are recognized as an expense in the Profit and Loss Statement of the year to which they relate

I) Earnings Per Share:

Basic earnings per share Is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

m) Government Grants:

Air freight subsidy towards reimbursement of Air freight charges/expenses Is deducted from the related expenditure. Capital Subsidy towards reimbursement of capital expenditure Is deducted from the concerned capital expenditure.

n) Use of Estimates:

The brparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period In which the results are known / materialised.

NOTES TO ACCOUNTS

1. Segment Reporting:

As file Company's business activities fails within single segment the disclosure requirement of Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India Is not applicable.

2. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006:

There are no Micro, Small and Medium Enterprise, to whom the company owes dues, which are outstanding for more than 45 days as at 31st March, 2014. This information as required to be disclosed under the Micro, Small Medium Enterprise Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

3. Deferred Tax Asset/Liability:

The management has taken the view that, flow culture activity comes under agricultural activity and since agricultural income is exempted from income tax, there is no need to recognise deferred tax asset/liability in the books of account.

4 Foreign Exchange Fluctuations:

As per the above stated accounting policy, amount of foreign exchange fluctuations debited to Profit and Loss Account during the period was Rs.33,270/- (brvious year credited Rs.3,20,622/-

5 Note on Land:

The company has acquired land in the name of individuals. The rules in Karnataka State do not permit the companies to hold agricultural land in their names. However, the company has entered into . agreement with the respective individuals for execution of necessary legal documents in respect of the title of the land. The consideration for purchase of said land has already been paid out of the company's funds, hence treated as an asset of the company.

6  Previous Years Figures:

The brvious year's figures have been reworked / regrouped / rearranged / reclassified wherever necessary. Amounts and other disclosures for the brceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

7 Balances subject to Confirmation:

Balances under sundry creditors, deposits, Investment in share application money, advances, amounts payable / receivable are subject to confirmation and reconciliation.

As per our report of even date

FOR AMAR & RAJU

CHARTERED ACCOUNTANTS

 Firm Registration No: 000092S

(G. AMARANATHA REDDY)

Partner

Membership No: 019711

For and on behalf of the Board

 (Dr. K. V. L. N. RAJU) Managing Director

(K. SOMA RAJU) Director

 (N. VISWANATHA RAJU) Director

Place: HYDERABAD

Date: 30-05-2014