Basis of accounting
 
 The financial statements have been prepared under the historical cost
 convention on accrual basis of accounting, on a going concern basis and
 in accordance with the Accounting Standards prescribed in the Companies
 (Accounting Standards) Rules, 2006, issued by the Central Government
 and other pronouncements of the Institute of Chartered Accountants of
 India (ICAI), and the relevant provisions of the Companies Act, 1956
 and guidelines issued by the Securities and Exchange Board of India, to
 the extent applicable.
 
 Use of estimates
 
 The preparation of financial statements requires management to make
 certain estimates and assumptions that affect the amounts reported in
 the financial statements and notes thereto. Differences between actual
 results and estimates are recognized in the period in which they
 materialize.
 
 Revenue Recognisition
 
 Revenue from sale is recognized on transfer of ownership to the
 customer. Revenue includes excise duty and is shown net of value added
 tax and applicable discounts and allowances and short receipt in Export
 Sales. The effect of exchange rate fluctuations is also given in
 Revenue. The Excise duty paid is shown distinctly as expense.
 
 Fixed Assets and Depreciation
 
 Fixed assets including the expenses incurred on improvement and
 furnishing of rented premises in Retail division are stated at cost
 less accumulated depreciation and impairment loss, if any. The cost of
 Assets comprises of purchase price and directly attributable expenses
 of bringing the assets to their working condition for intended use.
 
 Depreciation on Fixed assets is provided using the straight-line method
 and at the rates specified in Schedule XIV to the Companies Act, 1956.
 As per policy of the company the depreciation at full rate is provided
 on the addition made upto 30th September and at half rate for the
 addition made after 30th September.
 
 Inventories (as valued and certified by the Management of the Company)
 Raw Materials, Packing materials and Accessories, Stores and spare
 parts and traded goods are valued at cost.
 
 Semi Finished Goods (Work in Progress) is valued at 60% of the selling
 price (which method is consistently followed and which is deemed to be
 the cost of such good).
 
 Finished Goods is valued at 75% of selling price (which method is
 consistently followed and which is deemed to be the cost of such
 goods).
 
 Employees Benefits
 
 Provision for Gratuity and Leave Encashment has been made on the basis
 of estimates made by management. Provision for payment of Bonus has
 been provided at the minimum rate as prescribed in the provisions of
 The Payment of Bonus Act, 1965.
 
 The Contribution made towards Provident Fund, Employees State Insurance
 and Labour Welfare Fund is charged to revenue every year.
 
 Miscellaneous Expenditure
 
 Preliminary expenses, deferred revenue expenses and pre-operative
 expenses are amortized over a period of ten year.
 
 Foreign Currency Transactions
 
 Transactions in foreign currency are recorded at the exchange rates
 prevailing on the date of the transaction. The Exchange rate
 differences arising on foreign currency transactions are accounted for
 at the date of settlement of the transaction. Any income or expense
 arising out of such differences in exchange rates is grouped in the
 relevant head to which it relates.
 
 The company has entered into forward forex trading to partly hedge its
 exposure to movements in foreign exchange rates. These transactions are
 not used for speculation purposes. The resultant gain during the year
 has been grouped under head Other Income.
 
 Taxes on income
 
 Provision is made for deferred tax for timing differences arising
 between taxable income and accounting income at current tax rates.
 
 The current tax provision is only MAT tax which is made on estimate
 basis. No regular current tax is payable due to exemption available for
 the profit earned by NSEZ unit.