Accounting Policies of HRB Floriculture Ltd. Company

Mar 31, 2013

A SYSTEM OF ACCOUNTING

The financial statements are prepared under historic cost convention. Income and expenditure are recognized on accrual basis except dividend income and penal interest on loan is accounted for on cash basis.

b FIXED ASSETS AND DEPRECIATION

i Fixed assets are stated at cost of acquisition or construction inclusive of freight, duties and taxes less Accumulated

Depreciation. ii Lump sum payments made at the time of the lease of agriculture land are capitalized and are being amortized equally over

the period of lease. iii Depreciation on Fixed Assets is being provided on straight-line method at the rate prescribed in Schedule XIV of the

Companies Act, 1956 on pro-rata basis.

c IMPAIRMENT OF ASSETS

As a teach balance sheet date, the carrying amount of assets is tested for impairment so as to determine i the provision for impairment loss, if any, required or ii the reversal. If any, required for impairment loss recognized In previous periods.

Impairment loss is recognized when the carrying amount of an asset exceed Irrecoverable amount.

Recoverable amount Is determined i in the case of an individual asset, at the higher of net selling price and the value in use. ii in the case of cash generating unit (a group of assets that generates identified independent cash flows), at higher of the cash generating unit''s selling price and the value in use.

Value in use is determined as the present value of estimated future cash flow from the continuing use of assets and from its disposal at the end of its useful life.

d INVESTMENTS

Non-Current Investments are stated at cost. Provision for diminution in the value of Non-Current Investment is made if such decline is other than temporary in nature

e INVENTORgS

Inventories are valued as under: - i Agricultural Produce -at realizable value il Standing Agricultural Crop- atNlLvalue

iii Shares and Securities- Scrip-wise at cost or rr.arket price whichever is less. Bonus shares/ units etc. are valued at Nil value. f SAIES

Sales of Agricultural product are accounted for as net of discount, Freight, brokerage etc on sale.

g CURRENT TAX ANO DEFERRED TAX

i Income Tax is accounted in accordance with AS-22 "Accounting for taxes on income" issued by ICAI. Deferred income taxes reflect impact of current year timing difference between taxable income and accounting Income for the year and reversal o-'' timing difference of earlier years. Deferred tax assets are recognized only to the extant that there is reasonable certainty that sufficient future taxable income will be available. ii Current tax is determined as the amount of tax payable in respect of taxable income using the applicable tax rates and tax laws for the year.

h SEGMENT REPORTING

i Identification : The Company''s operating businesses are organized and managed separately according to the nature o'' procuct and services with each segment representing a strategic business unit that offers different product and services to different markets. ij Allocation ojcommon cost: Common allocable costs are allocated to each segment according to the relative contribution o" each segment to the total common costs. iii

Unallocable Items: includes genera I co-pprate incomes and expenses items which are not allocated to any business segment. iv Segment Policies: The company prepares its segment information in conformity with the accounting policies adopted for preparing the financial statement of the company as a whole

i EMPLOYEE BENEFITS

i Short term employee benefits are recognized as an expense at the undiscounted amount in which the related service is rendered ii There is no liability of the company as of now towards gratuity or any other long term benefits payable to employees.

---

Mar 31, 2012

A SYSTEM OF ACCOUNTING

The financial statements are prepared under historic cost convention. Income and expenditure are recognized on accrual basis except dividend income and penal interest on loan is accounted for on cash basis,

b FIXED ASSETS AND DERECIATION

i Fixed assets are stated at cost of acquisition or construction inclusive of freight, duties and taxes less Accumulated Depreciation.

ii Lump sum payments made at the time of the lease of agriculture land are capitalized and are being amortized equally overthe period of lease.

iii Depreciation on Fixed Assets is being provided on straight-line method at the rate prescribed in Schedule XIV of the CompaniesAct, 1956 on pro-rata basis.

c IMPAIRMENT OF ASSETS

As at each balance sheet date, the carrying amount of assets is tested for impairment so as to determine

i the provision for impairment loss, if any, required or

ii the reversal, if any, required for impairment loss recognized in previous periods.

Impairment loss is recognized when the carrying amount of an asset exceed its recoverable amount.

Recoverable amount is determined

i in the case of an individual asset, at the higher of net selling price and the value in use.

ii in the case of cash generating unit (a group of assets that generates identified independent cash flows), at higher of the cash generating unit''s selling price and the value in use.

Value in use is determined as the present value of estimated future cash flow from the continuing use of assets and from its disposal at the end of its useful life, d INVESTMENTS

Non-Current Investments are stated at cost. Provision for diminution in the value of Non-Current Investment is made if such decline is otherthan temporary in nature

e INVENTORIES

Inventories are valued as under: -

i Agricultural Produce-at realizable value

ii StandingAgricultural Crop- at NIL value

iii Shares and Securities- Scrip-wise at cost or market price whichever is less. Bonus shares/ units etc. are valued at Nil value.

f SALES

"Sales ofAgricultural product are accounted for as net of discount, Freight, brokerage etcon sale,

g CURRENT TAX AND DEFERRED TAX

i Income Tax is accounted in accordance with AS-22 ""Accounting for taxes on income"" issued by ICAI. Deferred income taxes reflect impact of current year timing difference between taxable income and accounting income for the year and reversal of timing difference of earlier years. Deferred tax assets are recognized only to the extant that there is reasonable certainty that sufficient future taxable income will be available.

ii Current tax is determined as the amount of tax payable in respect of taxable income using the applicable tax rates and tax laws for the year.

h SEGMENT REPORTING

i Identification: The Company''s operating businesses are organized and managed separately according to the nature of product and services with each segment representing a strategic business unit that offers different product and services to different markets.

ii Allocation of common cost: Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

iii Unallocable Items: includes general corporate incomes and expenses items which are not allocated to any business segment.

iv Segment Policies: The company prepares its segment information in conformity with the accounting policies adopted for preparing the financial statement of the company as a whole

i EMPLOYEE BENEFITS

Short term employee benefits are recognized as an expense at the undiscounted amount in which the related service is rendered

ii There is no liability of the company as of now towards gratuity or any other long term benefits payable to employees.

---

Mar 31, 2011

1. SYSTEM OF ACCOUNTING

The financial statements are prepared under historic cost convention. Income and expenditure are recognized on accrual basis except dividend income and penal interest on loan is accounted for on cash basis.

2. FTXED ASSETS AND DERECIATION

a. Fixed assets are stated at cost of acquisition or construction inclusive of freight, duties and taxes less Accumulated Depreciation.

b. Lump sum payments made at the time of the lease of agriculture land are capitalized and are being amortized equally over the period of lease.

c. Depreciation on Fixed Assets is being provided on straight-line method at the rate prescribed in Schedule XIV of the Companies Act, 1956 on pro-rata basis.

3. IMPAIRMENT OF ASSETS

As at each balance sheet date, the carrying amount of assets is tested for impairment so as to determine

a. the provision for impairment loss, if any, required or

b. the reversal, if any, required for impairment/loss recognized in previous periods. Impairment loss is recognized when the carrying amount of an asset exceed its recoverable amount.

Recoverable amount is determined

a. in the case of an individual asset, at the higher of net selling price and the value in use.

b. in the case of cash generating unit of group of assets that generates identified independent cash flows), at higher of the cash generating unit's selling price and the value in use.

Value in use is determined as the present value of estimated future cash flow from the continuing use of assets and from its disposal at the end of its useful life.

4. INVENTORIES

Inventories are valued as under: -

a. Agricultural Product - at realizable value

b. Standing Agricultural Crop- at NIL value

c. Shares and securities- Scrip-wise at cost or market price whichever is less. Bonus shares/ units etc. are valued at Nil value.

5. SALES

Sales of Agricultural product are accounted for as net of discount, Freight, brokerage etc on sale.

6. MISCELLANEOUS EXPENDITURE

Expenses on issue of shares to public are reflected net of interest received from bank on surplus application money and amortized equally over period of 10 years. Preliminary expenses are amortized equally over a period of 10 years.

---

Mar 31, 2010

1. SYSTEM OF ACCOUNTING .

The financial statements are prepared under historic cost convention. Income and expenditure are recognized on accrual basis except dividend income and penal interest on loan is accounted for on cash basis.

2. FIXED ASSETS AND DERECIATION.

a. Fixed assets are stated at cost of acquisition or construction inclusive of freight, duties and taxes less Accumulated Depreciation.

b. Lump sum payments made at the time of the lease of agriculture land are capitalized and are being amortized equally over the period of lease.

c. Depreciation on Fixed Assets is being provided on straight-line method at the rate prescribed in Schedule XIV of the Companies Act, 1956 on pro-rata basis.

3. IMPAIRMENT OF ASSETS .

As at each balance sheet date, the carrying amount of assets is tested roar impairment so as to determine

a. the provision for impairment loss, if any, required or .

b. the reversal, if any, required for impairment loss recognized in previous periods.

Impairment loss is recognized when the carrying amount of an asset exceed its recoverable amount.

Recoverable amount is determined

a. in the case of an individual asset, at the higher of net selling price and the value in use.

b. in The case of cash generating unit (a group of assets that generates identified independent cash flows), at higher of the cash generating unit s selling price and the value in use.

Value in use is determined as the present value of estimated future cash flow from the continuing use of assets and from its disposal at the end its useful late.

4. INVENTORIES

Inventories are valued as under: -

a. Agricultural Product - at realizable value

b. Standing Agricultural Crop- at NIL value

c. Shares and securities- Scrip-wise at cost or market price whichever is less. Bonus shares/ units etc. are valued at Nil value.

5. SALES

Sales of Agricultural product are accounted for as net of discount, Freight, brokerage etc on sale.

6. MISCELLANEOUS EXPENDITURE

Expenses on issue of shares to public are reflected net of interest received from bank on surplus application money and amortized equally over period of 10 years. Preliminary expenses are amortized equally over a period of 10 years.