2	SIGNIFICANT ACCOUNTING POLICIES:
	2.01	BASIS OF brPARATION
		The financial statements of the Company have been brpared in accordance with generally accepted accounting principles in India (Indian GAAP).The Company has brpared these financial statements to comply in all material respects with the accounting standards notified under the Companies accounting Standards) Rules, 2006, (as amended), relevant provisions of the Companies Act,1956,read with general circular 8/2014 dated 4th April,2014 issued by Ministry of Corporate Affairs. The financial statements have been brpared on an accrual basis and under the historical cost convention. The accounting policies adopted in the brparation of financial statements are consistent with those of brvious year.
	2.02	brSENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS
		The brsentation and disclosure of the financial statements have been made in accordance with the revised Schedule VI notified by the central Government vide notification no. S.O 447(E), dated 28th February 2011 (as amended by notification no. F No. 2/6/2008-CL-V, dated 30th March 2011) which has become effective for accounting periods commencing on or after 1st April 2011.
	2.03	USE OF ESTIMATES
		The brparation of financial statements in conformity with generally accepted accounting principles in India requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods. Changes in estimates are reflected in the financial statements in the period in which changes are made and if material, their effects are disclosed in notes to accounts.
	2.04	TANGIBLE FIXED ASSETS
	a)	Tangible assets are stated at cost, net of accumulated debrciation and accumulated impairment losses, if any. The cost comprises purchase price, taxes, duties, freight and other incidental expenses related to acquisition and installation of the concerned assets are further adjusted by the amount of CENVAT credit and VAT credit availed wherever applicable and subsidy directly attributable to the cost of fixed  asset. Interest and other borrowing costs during construction period to finance qualifying fixed assets is capitalised if capitalisation criteria are met.
	b)	Subsequent expenditure related to an item of tangible asset is added to its book value only if it increases the future benefits from the existing asset beyond its brviously assessed standard of performance. All other expenses on existing fixed assets, including day to day repair and maintenance expenditure are charged to the statement of profit and loss for the period during which such expenses are incurred.
	c)	Fixed assets retired from active use and held for sale are stated at the lower of their net book value and net realisable value and are disclosed separately in the Balance Sheet.
	d)	Gains or losses arising from disposal of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is disposed off.
	2.05	INTANGIBLE ASSETS
	a)	Acquired intangible assets
		Intangible assets including software licenses of enduring nature and contractual rights acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses, if any. Cost comprises the purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use and net of any trade discounts and rebates.
	b)	Subsequent expenditure on an intangible asset after its purchase/completion is recognised as an expense when incurred unless it is probable that such expenditure will enable the asset to generate future economic benefits in excess of its originally assessed standards of performance and such expenditure can be measured and attributed to the asset reliably, in which case such expenditure is added to the cost of the asset.
	c)	Gains or losses arising from disposal of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when the asset is disposed off.
	2.06	DEbrCIATION AND AMORTIZATION
	a)	Debrciation on tangible fixed assets is provided pro-rata to the period of use based on written down value method using the rates set out below which are greater than or equal to the corresponding rates brscribed in schedule XIV of the Companies Act, 1956.
		Description			Rates (%) (per annum)
		Plant and Machinery
		Computers		40
		Other plant and machinery		13.91 to 33.33
		Furniture and fixtures	18.1
		Vehicles	25.89
	b)	Assets costing not more than 5,000/- each individually are debrciated at 100%.
	2.07	INVENTORIES
	a)	Inventories are valued at lower of cost {on First In First Out (FIFO) basis} and net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to point of sale, including octroi and other levies, trasit insurance and receiving charges.
	b)	Packing material are valued at cost only.
	2.08	FOREIGN CURRENCY TRANSACTIONS
	a)	Initial recognition
		Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
	b)	Conversion
		Foreign currency monetary items are retranslated using the exchange rate brvailing at the reporting date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction.
	c)	Exchange differences
		Exchange differences arising on conversion/settlement of short-term foreign currency monetary items and on foreign currency liabilities relating to fixed assets acquisition are recognised as income or expense in the year in which they arise.
	d)	Bank guarantee and letter of credit
		Bank Guarantee And Letter of Credits are recognized at the point of negotiation with Banks and converted at the rates brvailing on the date of Negotiation. However, Outstanding at the period end are recognized at the rate brvailing as on that date and total sum is considered as contingent liability.
	e)	Forward Contracts
		Premium/Discount arising at the inception of forward exchange contracts which are not intended for trading or speculation purposes are amortised over the period of the contracts if such contracts relate to monetary items as at the Balance Sheet date.
	2.09	RETIREMENT BENEFITS
	a)	Provident Fund
		Retirement benefit in the form of provident fund is a defined contribution scheme. The contributions to provident fund are made in accordance with the relevant scheme and are charged to the statement of profit and loss for the year when the contributions are due. The Company has no obligation, other than the contribution payable to the provident fund.
	b)	Gratuity
		The Company's gratuity scheme is a defined benefit plan. The brsent value of the obligation under such defined benefit plan is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit etitlement and measures each unit separately to build up the final obligation. The obligation is measured at the brsent value of the estimated future cash flows. The discount rate used for determining the brsent value of the obligation under defined benefit plan, is based on the market yields on government securities as at the balance sheet date. Actuarial gains and lossses are recognised immidiately in the Statement of Profit and Loss.
	c)	Leave Encashment
		Accrual for leave encashment benefit is based on acturial valuation as on the balance sheet date in pursuance of the company's leave rules.
	2.10	REVENUE RECOGNITION
		Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:
	a)	Sale of Goods
		Revenue from sale of goods is recognised whrn all the significant risks and rewards of ownership of the goods have been passed to the buyer, and are recorded net of returns and trade discount.
	b)	Commission income
		Revenue in respect of commission received  on direct sales to the customers is recognised in terms of underlying agreements on confirmation by the parties on fulfilment of the terms of the agreements with their customers.
	c)	Cargo handling operations
		Income from cargo handling operations is recognised on completion of the contracted activity.
	d)	Export incentives
		Export incentives under various schemes notified by the government have been recognised on the basis of their entitlement rates in accordance with the Foreign Trade Policy 2009-14 (FTP 2009-14). Benefits in respect of Advance Licenses are recognised when there is reasonable assurance that the Company will comply with the condition attached to them and incentive will be received.
	e)	Claims
		Claims are recognised when there exists reasonable certainty with regard to the amounts to be realised and the ultimate collection thereof.
	f)	Commodities future contracts
		Profit/Loss on contracts for commodity futures settled during the year are recognised in the statement of Profit and Loss.  Commodity future contracts outstanding at year-end are marked to market at fair value. Any losses arising on that account are recognised in the Statement of Profit and Loss for the year.
	g)	Interest
		Interest income is recognized on a time proportion basis, except on doubtful or sticky loans and advances which is accounted on receipt basis.
	2.11	PRIOR PERIOD ITEMS/EXTRAORDINARY ITEMS
		Prior Period expenses/incomes, are shown as prior period items  in the profit and loss account as per the provision of Accounting Standard-5 "Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies" notified under the Companies (Accounting Standards) Rules ,2006 (as amended). Items of income or expenses that arise from events or transactions that are distinct from ordinary activities of the enterprise and are not expected to recurr frequently or regularly are treated as extraordinary items.
	2.12	SEGMENT REPORTING
		Business segments Based on similarity of activities, risks and reward structure, organisation structure and internal reporting systems, the Company has structured its operation into Agro commodities trading.  Secondary segment: Geographical Segment Secondary segmental reporting is performed on the geographical locations of customers i.e. within India and Overseas.
	2.13	TAXES ON INCOME
		Direct taxes
	a)	Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit and loss.
	b)	Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.
		Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed debrciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.
		The carrying amount of deferred tax assets are reviewed at each reporting date. The company writes-down the carrying amount of deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.
	c)	Minimum Alternate Tax (MAT) paid in a year is charged to the Statement of Profit and Loss as Current Tax. The Company recognizes MAT Credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income tax during the specified period, i.e., the period for which MAT Credit is allowed to be carried forward. In the year in which the company recognizes MAT credit as an asset in accordance with the Guidance Note on accounting for Credit Available in respect of Minimum Alternative Tax under the Income Tax Acts, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as "MAT Credit Entitlement". The company reviews the "MAT Credit Entitlement" asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.
	d)	Indirect taxes
		Service Tax has been accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing/utilizing the credits.
	2.14	IMPAIRMENT OF ASSETS
		The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their brsent value using a br-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.Impairment losses of continuing operations, including impairment on inventories, are recognized in the statement of profit and loss. After impairment, debrciation is provided on the revised carrying amount of the asset over its remaining useful life.
	2.15	LEASES
		Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.
	2.16	BORROWING COSTS
		Borrowing cost includes interest and ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.
	2.17	EARNING PER SHARE
		Basic earning per share is computed by dividing the profit/(loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earning per share is computed by dividing the profit/(loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earning per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutuve potential equity shares are adjusted  for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period brsented.
									8344200
	2.18	PROVISIONS AND CONTINGENT LIABILITIES							250
		Provisions							33376.8
		A provision is recognized when the company has a brsent obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of obligation. Provisions (excluding employee benefits) are not discounted to their brsent value and are determined based on the best estimates required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
		Contingent Liabilities
		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 brsent obligation that is not recognized because it is not probable 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. The Company does not recognize a contingent liability but discloses its existence in the financial statements.
	2.19	OPERATING CYCLE
		Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.
	2.20	CASH FLOW STATEMENT
		Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.
	2.21	CASH AND CASH EQUIVALENTS
		Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less and are subject to insignificant risk of charges in value.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH 2014
1	CORPORATE INFORMATION:
	Tinna Trade Private Limited ("the company") was incorporated on 5th January, 2009 as Maple Newgen Trade Private Limited. Subsequently the name of the Company was changed to Tinna Viterra Private Limited. A fresh certificate of incorporation consequent to change in name of the Company from Tinna Viterra Trade Private Limited to Tinna Trade Private Limited was issued by the Registrar of the Companies, N.C.T. of Delhi and Haryana on 6th June, 2013. The Company is primarily engaged in the trading of Agro commodities i.e. wheat, yellow peas, chana, kaspa peas, lentils including oil seeds and oilmeals etc. The Company is also engaged in the business of cargo handling services. The Company is a wholly owned subsidiary of Tinna Rubber and Infrastructure Limited, India with effect from 09/05/2014.
2	SIGNIFICANT ACCOUNTING POLICIES:
	2.01	BASIS OF brPARATION
		The financial statements of the Company have been brpared in accordance with generally accepted accounting principles in India (Indian GAAP).The Company has brpared these financial statements to comply in all material respects with the accounting standards notified under the Companies accounting Standards) Rules, 2006, (as amended), relevant provisions of the Companies Act,1956,read with general circular 8/2014 dated 4th April,2014 issued by Ministry of Corporate Affairs. The financial statements have been brpared on an accrual basis and under the historical cost convention. The accounting policies adopted in the brparation of financial statements are consistent with those of brvious year.
	2.02	brSENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS
		The brsentation and disclosure of the financial statements have been made in accordance with the revised Schedule VI notified by the central Government vide notification no. S.O 447(E), dated 28th February 2011 (as amended by notification no. F No. 2/6/2008-CL-V, dated 30th March 2011) which has become effective for accounting periods commencing on or after 1st April 2011.
	2.03	USE OF ESTIMATES
		The brparation of financial statements in conformity with generally accepted accounting principles in India requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods. Changes in estimates are reflected in the financial statements in the period in which changes are made and if material, their effects are disclosed in notes to accounts.
	2.04	TANGIBLE FIXED ASSETS
	a)	Tangible assets are stated at cost, net of accumulated debrciation and accumulated impairment losses, if any. The cost comprises purchase price, taxes, duties, freight and other incidental expenses related to acquisition and installation of the concerned assets are further adjusted by the amount of CENVAT credit and VAT credit availed wherever applicable and subsidy directly attributable to the cost of fixed  asset. Interest and other borrowing costs during construction period to finance qualifying fixed assets is capitalised if capitalisation criteria are met.
	b)	Subsequent expenditure related to an item of tangible asset is added to its book value only if it increases the future benefits from the existing asset beyond its brviously assessed standard of performance. All other expenses on existing fixed assets, including day to day repair and maintenance expenditure are charged to the statement of profit and loss for the period during which such expenses are incurred.
	c)	Fixed assets retired from active use and held for sale are stated at the lower of their net book value and net realisable value and are disclosed separately in the Balance Sheet.
	d)	Gains or losses arising from disposal of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is disposed off.
	2.05	INTANGIBLE ASSETS
	a)	Acquired intangible assets
		Intangible assets including software licenses of enduring nature and contractual rights acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses, if any. Cost comprises the purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use and net of any trade discounts and rebates.
	b)	Subsequent expenditure on an intangible asset after its purchase/completion is recognised as an expense when incurred unless it is probable that such expenditure will enable the asset to generate future economic benefits in excess of its originally assessed standards of performance and such expenditure can be measured and attributed to the asset reliably, in which case such expenditure is added to the cost of the asset.
	c)	Gains or losses arising from disposal of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when the asset is disposed off.
	2.06	DEbrCIATION AND AMORTIZATION
	a)	Debrciation on tangible fixed assets is provided pro-rata to the period of use based on written down value method using the rates set out below which are greater than or equal to the corresponding rates brscribed in schedule XIV of the Companies Act, 1956.
		Description			Rates (%) (per annum)
		Plant and Machinery
		Computers		40
		Other plant and machinery		13.91 to 33.33
		Furniture and fixtures	18.1
		Vehicles	25.89
	b)	Assets costing not more than 5,000/- each individually are debrciated at 100%.
	2.07	INVENTORIES
	a)	Inventories are valued at lower of cost {on First In First Out (FIFO) basis} and net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to point of sale, including octroi and other levies, trasit insurance and receiving charges.
	b)	Packing material are valued at cost only.
	2.08	FOREIGN CURRENCY TRANSACTIONS
	a)	Initial recognition
		Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
	b)	Conversion
		Foreign currency monetary items are retranslated using the exchange rate brvailing at the reporting date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction.
	c)	Exchange differences
		Exchange differences arising on conversion/settlement of short-term foreign currency monetary items and on foreign currency liabilities relating to fixed assets acquisition are recognised as income or expense in the year in which they arise.
	d)	Bank guarantee and letter of credit
		Bank Guarantee And Letter of Credits are recognized at the point of negotiation with Banks and converted at the rates brvailing on the date of Negotiation. However, Outstanding at the period end are recognized at the rate brvailing as on that date and total sum is considered as contingent liability.
	e)	Forward Contracts
		Premium/Discount arising at the inception of forward exchange contracts which are not intended for trading or speculation purposes are amortised over the period of the contracts if such contracts relate to monetary items as at the Balance Sheet date.
	2.09	RETIREMENT BENEFITS
	a)	Provident Fund
		Retirement benefit in the form of provident fund is a defined contribution scheme. The contributions to provident fund are made in accordance with the relevant scheme and are charged to the statement of profit and loss for the year when the contributions are due. The Company has no obligation, other than the contribution payable to the provident fund.
	b)	Gratuity
		The Company's gratuity scheme is a defined benefit plan. The brsent value of the obligation under such defined benefit plan is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit etitlement and measures each unit separately to build up the final obligation. The obligation is measured at the brsent value of the estimated future cash flows. The discount rate used for determining the brsent value of the obligation under defined benefit plan, is based on the market yields on government securities as at the balance sheet date. Actuarial gains and lossses are recognised immidiately in the Statement of Profit and Loss.
	c)	Leave Encashment
		Accrual for leave encashment benefit is based on acturial valuation as on the balance sheet date in pursuance of the company's leave rules.
	2.10	REVENUE RECOGNITION
		Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:
	a)	Sale of Goods
		Revenue from sale of goods is recognised whrn all the significant risks and rewards of ownership of the goods have been passed to the buyer, and are recorded net of returns and trade discount.
	b)	Commission income
		Revenue in respect of commission received  on direct sales to the customers is recognised in terms of underlying agreements on confirmation by the parties on fulfilment of the terms of the agreements with their customers.
	c)	Cargo handling operations
		Income from cargo handling operations is recognised on completion of the contracted activity.
	d)	Export incentives
		Export incentives under various schemes notified by the government have been recognised on the basis of their entitlement rates in accordance with the Foreign Trade Policy 2009-14 (FTP 2009-14). Benefits in respect of Advance Licenses are recognised when there is reasonable assurance that the Company will comply with the condition attached to them and incentive will be received.
	e)	Claims
		Claims are recognised when there exists reasonable certainty with regard to the amounts to be realised and the ultimate collection thereof.
	f)	Commodities future contracts
		Profit/Loss on contracts for commodity futures settled during the year are recognised in the statement of Profit and Loss.  Commodity future contracts outstanding at year-end are marked to market at fair value. Any losses arising on that account are recognised in the Statement of Profit and Loss for the year.
	g)	Interest
		Interest income is recognized on a time proportion basis, except on doubtful or sticky loans and advances which is accounted on receipt basis.
	2.11	PRIOR PERIOD ITEMS/EXTRAORDINARY ITEMS
		Prior Period expenses/incomes, are shown as prior period items  in the profit and loss account as per the provision of Accounting Standard-5 "Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies" notified under the Companies (Accounting Standards) Rules ,2006 (as amended). Items of income or expenses that arise from events or transactions that are distinct from ordinary activities of the enterprise and are not expected to recurr frequently or regularly are treated as extraordinary items.
	2.12	SEGMENT REPORTING
		Business segments Based on similarity of activities, risks and reward structure, organisation structure and internal reporting systems, the Company has structured its operation into Agro commodities trading.  Secondary segment: Geographical Segment Secondary segmental reporting is performed on the geographical locations of customers i.e. within India and Overseas.
	2.13	TAXES ON INCOME
		Direct taxes
	a)	Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit and loss.
	b)	Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.
		Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed debrciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.
		The carrying amount of deferred tax assets are reviewed at each reporting date. The company writes-down the carrying amount of deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.
	c)	Minimum Alternate Tax (MAT) paid in a year is charged to the Statement of Profit and Loss as Current Tax. The Company recognizes MAT Credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income tax during the specified period, i.e., the period for which MAT Credit is allowed to be carried forward. In the year in which the company recognizes MAT credit as an asset in accordance with the Guidance Note on accounting for Credit Available in respect of Minimum Alternative Tax under the Income Tax Acts, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as "MAT Credit Entitlement". The company reviews the "MAT Credit Entitlement" asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.
	d)	Indirect taxes
		Service Tax has been accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing/utilizing the credits.
	2.14	IMPAIRMENT OF ASSETS
		The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their brsent value using a br-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.Impairment losses of continuing operations, including impairment on inventories, are recognized in the statement of profit and loss. After impairment, debrciation is provided on the revised carrying amount of the asset over its remaining useful life.
	2.15	LEASES
		Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.
	2.16	BORROWING COSTS
		Borrowing cost includes interest and ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.
	2.17	EARNING PER SHARE
		Basic earning per share is computed by dividing the profit/(loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earning per share is computed by dividing the profit/(loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earning per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutuve potential equity shares are adjusted  for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period brsented.
	2.18	PROVISIONS AND CONTINGENT LIABILITIES
		Provisions
		A provision is recognized when the company has a brsent obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of obligation. Provisions (excluding employee benefits) are not discounted to their brsent value and are determined based on the best estimates required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
		Contingent Liabilities
		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 brsent obligation that is not recognized because it is not probable 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. The Company does not recognize a contingent liability but discloses its existence in the financial statements.
	2.19	OPERATING CYCLE
		Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.
	2.20	CASH FLOW STATEMENT
		Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.
	2.21	CASH AND CASH EQUIVALENTS
		Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less and are subject to insignificant risk of charges in value.

5	Employee benefits
	Disclosures pursuant to Accounting Standard 15, 'Employee Benefits' (Revised) notified under the Companies (Accounting Standards) Rules 2006 (as amended), are given below:
	Defined Contribution Plan
	Contribution to Defined Contribution Plan, recognised during the year are as under:-
						2013-14		2012-13
	Employer’s Contribution towards Provident Fund (PF)	17,223		16,285
	Employer’s Contribution towards Family Pension Scheme (FPS)	27,146		25,677
	Employer’s Contribution towards Employee State Insurance (ESI)	39,807		37,853
	Expenses charged to statement of profit and loss						84,176		79,815
	Defined Benefit Plan
(A)	Gratuity
	The brsent value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
							2013-14		2012-13
a.	Reconciliation of opening and closing balances of Defined Benefit obligation
	Defined Benefit obligation at beginning of the year	2,068,031		1,280,951
	Current Service cost	343,920		663,138
	Interest cost	186,123		105,389
	Actuarial (gain)/ loss	(1,443,748)		18,553
	Benefits paid	-		-
	Defined benefits obligation at year end	1,154,326		2,068,031
b.	Reconciliation of fair value of assets and obligations
	Fair value of plan assets	-		-
	Present value of obligations	1,154,326		2,068,031
	Amount recognized in the balance sheet- asset/(liability)	(1,154,326)		(2,068,031)
	Current portion	3,116		3,296
	Non-current portion	1,151,210		2,064,735
c.	Expenses recognized in profit and loss statement
	Current service cost	343,920		663,138
	Interest cost	186,123		105,389
	Expected return on plan assets	-		-
	Actuarial (Gain)/Loss	(1,443,748)		18,554
	Net cost	(913,705)		787,081
d.	Actuarial Assumption
	Mortality Table (LIC)		IALM 2006-08 Ultimate		LIC 94-96 Ultimate
	Demographic assumptions		60 years		60 years
	Discount Rate (per annum)	9%		8.25%
	Expected rate of return on plan assets (per annum)	0%		0%
	Rate of escalation in salary (per annum)	10%		10%
	Withdrawal rate (per annum)	2%		2%
e.	Amounts for current and brvious period	2013-14	2012-13	2011-12	2010-11*		2009-10 *
	Present value of obligation	1,154,326	2,068,031	1,280,951
	Fair value of plan assets	-	-
	Surplus/(Deficit)	(1,154,326)	(2,068,031)	(1,280,951)			-
	* Figures in respect of these years are not available.
	Notes:-
	a)The estimates of rate is escalation in salary’s considered in actuarial valuation and other factors such as inflation seniority, promotion and other relevant factors including supply and demand in the employment market have been taken into account. The above information is certified by the actuary.
	b) The gratuity plan is unfunded
(B)	Leave Encashment (Non-funded)
	The brsent value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
	($913,705)
							2013-14		2012-13
a.	Reconciliation of opening and closing balances of Defined Benefit obligation
	Defined Benefit obligation at beginning of the year	1,795,317		1,208,584
	Current Service cost	326,655		742,143
	Interest cost	161,579		99,435
	Actuarial (gain)/ loss	(1,232,028)		(254,845)
	Benefits paid	(253,794)		-
	Defined benefits obligation at year end	797,729		1,795,317
b.	Reconciliation of fair value of assets and obligations
	Fair value of plan assets
	Present value of obligations	797,729		1,795,317
	Amount recognized in the balance sheet- asset/(liability)	(797,729)		(1,795,317)
	Current portion	13,812		28,030
	Non-current portion	783,917		1,767,287
c.	Expenses recognized in profit & loss account
	Current service cost	326,655		742,143
	Interest cost	161,579		99,435
	Expected return on plan assets	-		-
	Actuarial (Gain)/Loss	(1,232,028)		(254,845)
	Net cost	(743,794)		586,733
d.	Investment details
	LIC group gratuity policy	-		-
e.	Actuarial Assumption
	Mortality Table (LIC)		IALM 2006-08		LIC 94-96
							Ultimate		Ultimate
	Discount Rate (per annum)	9%		8.25%
	Expected rate of return on plan assets (per annum)	0%		0%
	Rate of escalation in salary (per annum)	10%		10%
	Withdrawal rate (per annum)	2%		2%
f.	Amounts for current and brvious period	2013-14	2012-13	2011-12	2010-11*		2009-10*
	Present value of obligation	797,729	1,795,317	1,208,584	-		-
	Fair value of plan assets	-	-
	Surplus/(Deficit)	(797,729)	(1,795,317)	(1,208,584)
	* Figures in respect of these years are not available.
	Notes:-
	a.	The estimates of rate is escalation in salary's considered in actuarial valuation and other factors such as inflation seniority, promotion and other relevant factors including supply and demand in the employment market have been taken into account. The above information is certified by the actuary.