11. PROVISIONS AND CONTINGENT LIABILITIES

The assessments undertaken in recognizing provisions and contingencies have been made in
accordance with the AS 29. Provisions represent liabilities for which the amount or timing is
uncertain. Provisions involving substantial degree of estimation in measurement are recognized
when there is a present obligation as a result of past event and it is probable that there will be an
outflow of resources.

A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non- occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognizes because it is not possible that
an outflow of resources will be required to settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot be recognized because it cannot be
measured reliably and are disclosed by way of notes.

Contingent assets are neither provided nor disclosed in the financial statements.

Provisions, contingent liabilities and contingent asset are reviewed at each balance sheet date.

12. CASH & BANK BALANCES

Cash and cash equivalents comprise cash and cash on deposit with banks. The Company considers all
highly liquid investments with a remaining maturity at the date of purchase of three months or less
and that are readily convertible to known amounts of cash to be cash equivalents.

13. SEGMENT REPORTING:

The company is engaged in manufacturing of spices and grocery products. Considering the nature of
business and financial reporting of the company, the company is operating in only one segment.
Hence Segment reporting is not applicable.

14. EXTRAORDINARY, EXCEPTIONAL, PRIOR PERIOD ITEMS AND CHANGES IN ACCOUNTING
POLICIES

a) Income or expenses that arise from events or transactions that are clearly distinct from the
ordinary activities of the Company are classified as extraordinary items. Specific disclosure of
such events/transactions is made in the financial statements. Similarly, any external event
beyond the control of the Company, significantly impacting income or expense, is also treated
as extraordinary item and disclosed as such.

b) On certain occasions, the size, type or incidence of an item of income or expense, pertaining to
the ordinary activities of the Company, is such that its disclosure improves an understanding of

the performance of the Company. Such income or expense is classified as an exceptional item
and accordingly disclosed in the notes to accounts.

15. GOVERNMENT GRANTS

a) In case of depreciable assets, the cost of assets is shown at gross value and grant thereon is
treated as Capital Grants which are amortized over the period and in the proportion in which
depreciation is charged. Grant is recognised at the time of submitting claim to the authority.

b) Export incentive under "Duty Drawback Scheme" is accounted in the year of export at FOB value.

The Company is eligible for RODTEP Scheme. Income under RODTEP scheme is accounted on
allotment basis. Other Government Grants are recognised on the basis certainty of ultimate
collection.

16. INVESTMENTS

a) Current Investment:

Current Investments are carried at Cost or NRV whichever is less, determined by category of
investment.

b) Non-Current Investment:

Long-term investments are stated at cost less provision for diminution other than temporary, if any,
in value of such investments.

17. INTANGILBE ASSETS

Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated
amortization/ depletion. All costs, including financing costs till commencement of commercial
production, net charges on foreign exchange contracts and adjustments arising from exchange rate
variations attributable to the intangible assets are capitalized. Depreciation on Intangible assets is
calculated on SLM method at useful of three years.

18. EMPLOYEE BENEFITS

The Company has adopted the Accounting Standard 15 (revised 2005) on Employee benefits during
the financials period. The disclosure as envisaged under the Accounting Standard is provided-refer
Note 24 of Financial Statements.