Accounting Policies of MK Aromatics Ltd. Company

Mar 31, 2011

I) SALES

Revenue from Sale of Goods is recognized:

(i) When all the significant risks and rewards of ownership are transferred to the buyer and the company retains no effective control of the goods transferred to a degree usually associated with ownership. (ii) No significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.

II) AGRICULTURE INCOME

The Company has agriculture land and the sale of produce is recognised as agricultural income.

III) INTEREST INCOME

Interest income is recognised on the time proportion basis taking into account the amount outstanding and the FD interest rate applicable by the bank.