The financial statements are prepared under historical cost convention
 on accrual basis and comply with the Accounting Standards (AS) issued
 by the Institute of Chartered Accountants of India (ICAI), referred to
 in Section 211 (3C) of the Companies Act 1956.  The preparation of
 financial statements requires the management to make estimates and
 assumptions considered in the reported amounts of Assets and
 Liabilities (including Contingent Liabilities) as of the date of the
 financial statements that are prudent and reasonable. Management
 believes that the estimates used in preparation of the financial
 statements are reasonable and prudent. Future results could differ from
 these estimates.  The significant accounting policies adopted in the
 presentation of the accounts are as under:
 
 1.1.  Fixed Assets:
 
 The fixed assets are valued at cost less depreciation. Depreciation has
 been provided on straight-line basis in accordance with the provisions
 of Schedule XIV to the Companies Act, 1956.
 
 Deposits given for premises, where right to operate for more than three
 years exists are classified as long term deposits under fixed assets as
 the same represents a long term right to occupy the Office Premises and
 operate the business.
 
 1.2.  Agricultural Assets:
 
 The Company has entered into contracts with Indage Vineyards Private
 Ltd. for long-term supply of grapes and essential raw materials in
 coming years. Pursuant to the arrangements, the Company has all rights
 over the fruits grown on identified cultivated areas with compensation
 related to costs and yield. The Company also has all rights, including
 creating mortgage and hypothecation of concerned land, standing crops
 and all present and future assets of these identified land and
 vineyards.
 
 Since the investment has been made in agrii ultural assets on long-term
 basis, the amount to the extent of 10% of the supply will be re< overed
 and reduced from these assets every year from the first harvest under
 the Schene. The said assets are disclosed separately in Fixed Assets
 Schedule.
 
 1.3.  Depreciation / Amortization:
 
 Depreciation on fixed assets held / purchased at owned premises,
 vehicles and computers has been provided on Straight line basis in
 accordance with the provisions of Schedule XIV to Companies Act, 1956.
 
 1.4.  Investments:
 
 a.  Long term Investments other than Investments in Foreign
 Subsidiaries are carried at cost. However, provision is made for
 diminution in value, other than temporary, on an individual basis.
 
 b.  Current Investments are carried at the lower of cost and fair value
 determined on a category wise basis.
 
 The earnings on investments are accounted when the Companys right to
 receive the payment is established. Interest on bank deposit is
 accounted on accrual basis.
 
 Any reduction in the realizable value of the above investments is
 debited to the Profit & Loss account as per the provisions of
 Accounting Standard 13- Accounting for Investments (AS-13).
 
 1.5.  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.
 
 Revenue from sale of goods is recognized when the significant risks and
 rewards of ownership of the goods have passed to the buyer
 
 Interest Income is recognized on a time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 Dividend is recognized when the shareholders right to receive payment
 is established by the balance sheet date.
 
 Sales are inclusive of state excise duty and sales tax, wherever such
 duties are payable.
 
 1.6.  Foreign Currency Transactions:
 
 Transactions in foreign currency are recognized at the rates existing
 at the time at which the transactions take place. Exchange difference
 relating to fixed assets is adjusted in the cost of relevant fixed
 assets. Any other difference is dealt with in the Profit & Loss
 Account. Exchange difference pertaining to investments in international
 operations is transferred to foreign currency translation reserve. The
 same will be accounted for as gain/ loss in Profit & Loss account on
 disposal of investment in subsidiary.
 
 1.7.  Employees Retirement Benefits:
 
 The Company has retirement benefit schemes of Provident Fund and
 Gratuity. The contribution to Provident Fund is charged to Profit &
 Loss Account as and when incurred. The Company has group gratuity cum
 life insurance Scheme. Gratuity premium paid to insurers under the
 above Scheme are debited to Profit & Loss Account in the year in which
 such a payment is made to the extent of Companys liability. Due to
 numerous assumptions and presumptions involved in calculation, the
 extent of probable shortfall is indeterminate and hence ignored.
 
 1.8.  Inventories:
 
 The inventories are valued in accordance with Accounting Standard 2 -
 Valuation of Inventories (AS-2) as under:
 
 Stores & Spares Part     at Cost
 
 Raw Materials            at Cost
 
 Packing Materials        at Cost
  
 Work in process          at Cost
 
 Finished Goods           Lower of cost or net realizable value.
 
 
 The cost for this purpose has been determined on First-in-First-Out
 basis. For the purpose of valuation, cost includes financial cost
 attributable to process time necessary to bring the product in saleable
 condition. (Ref. Note No.2.16) This is done in accordance with AS
 16-Borrowing cost, issued by the Institute of Chartered Accountants
 of India.
 
 According to the existing legal status, the Companys products are not
 liable to be charged Central Excise Duty. However, various states are
 empowered to levy State Excise Duties.  Such state excise duty on
 liquor is payable in the States where these are consumed hence it is
 not possible to ascertain liabilities in this respect against the
 stocks held in the warehouse and wineries. As per the practice
 consistently followed by the Company, the excise duties on such stocks
 has neither been provided for nor included in the value of stocks. This
 treatment has however no impact on the profits/losses for the year
 under review.
 
 1.9.  Taxes on Income:
 
 a.  Income tax is computed in accordance with Accounting Standard 22 -
 Accounting for Taxes on Income, issued by the ICAI. Tax expenses are
 accounted for in the same period to which the revenue and expenses
 relate.
 
 b.  Provision for current income tax is made for the tax liability
 payable on taxable income after considering tax allowances deductions
 and exemptions determined in accordance with the prevailing tax laws.
 The differences between the taxable income and the net profit or loss
 before tax for the year as per the financial statements are identified
 and the tax effect of timing differences is recognised as a deferred
 tax asset or deferred tax liability. The tax effect is calculated on
 accumulated timing differences at the end of the accounting year based
 on effective tax rates substantively enacted by the balance sheet date
 that would apply in the years in which timing difference is expected to
 reverse.
 
 c.  Deferred tax assets other than on unabsorbed depreciation or
 carried forward losses are recognised only if there is reasonable
 certainty that they will be realized and are reviewed for the
 appropriateness of their respective carrying values at each balance
 sheet date.
 
 1.10.  Impairment of Assets:
 
 Impairment is ascertained as at each Balance Sheet date in respect of
 the Companys fixed assets. An impairment loss is recognised whenever
 the carrying amount of the asset exceeds its recoverable amount. The
 recoverable amount is the greater of the net selling price and its
 value in use.
 
 1.11.  Accounting for Provisions. Contingent Liabilities, and
 Contingent Assets:
 
 Provisions are recognised in terms of Accounting Standard 29 -
 Provisions Contingent Liabilities and Contingent Assets (AS-29),
 issued by the ICAI, when there is a present legal or statutory
 obligation as a result of past events, where it is probable that there
 will be outflow of resources to settle the obligation and when a
 reliable estimate of the amount of obligation can be made. Contingent
 liabilities are recognised only when there is a possible obligation
 arising from past events due to occurrence or non occurrence of one or
 more uncertain future events not wholly within the control of the
 Company or where any present obligation cannot be measured in terms of
 future outflow of resources or where a reliable estimate of the
 obligation cannot be made. Obligations are assessed on an ongoing basis
 and only those having a largely probable outflow of resources are
 provided for. Contingent assets are hot recognised in the financial
 statements.
 
 1.12.  Borrowing Costs:
 
 Interest and other borrowing costs are charged to revenue in the period
 in which they are paid in accordance with Accounting Standard 16 -
 Borrowing Costs (AS-16). Borrowing costs attributable to fixed assets
 is capitalized up to the date the asset is put to use.
 
 1.13.  Contingent Liabilities, if any, are disclosed by way of notes to
 accounts.