1.  Basis of Accounting
 
 The financial statements are prepared under historical cost convention
 on accrual basis and in accordance with applicable accounting standards
 notified by the Government of India/issued by the Institute of
 Chartered Accountants of India and the provisions of the Companies Act,
 1956.
 
 2.  Use of Estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates. Any revision to accounting estimates is
 recognised prospectively in current and future periods. Difference
 between the actual results and estimates is recognised in the period in
 which the results are known/materialized.
 
 3.  Fixed Assets and Depreciation
 
 Fixed assets are stated at cost, less accumulated depreciation. Cost
 comprises the purchase price and all attributable cost of bringing the
 asset to its working condition for its intended use. Financing and
 other cost relating to acquisition of fixed assets are also included to
 the extent they relate to the period till such time as the assets are
 ready for commercial operation. Depreciation is provided on Straight
 Line Method as per the rates and in the manner prescribed in Schedule
 XIV to the Companies Act, 1956 except Leasehold improvements which are
 amortised over the lease period and employee perquisite- related assets
 which are depreciated over three years. Intangible Assets are amortised
 over their useful life not exceeding ten years.
 
 4.  Investments
 
 Current investments are carried at lower of cost and fair
 value.Long-term investments are stated at cost.  Provision for
 diminution is being made if necessary to recognise a decline, other
 than temporary in the value thereof.
 
 5.  Inventories
 
 Inventories are valued as follows :
 
 a) Stores, Spare parts,Packing material and Branding Material : At Cost
 
 b) Raw material & Stiching material : At Cost
 
 c) Finished goods and Work in Progress : At the lower of cost or net
 realisable value
 
 Cost of inventories comprises all costs of purchase and other costs
 incurred in bringing the inventories to their present condition and
 location. Cost is computed on weighted average basis.
 
 6.  Transaction in Foreign Currency
 
 Foreign currency transactions are recorded at the exchange rates
 prevailing at the date of the transaction.  Monetary foreign currency
 assets and liabilities are translated into Indian rupees at the
 exchange rate prevailing at the balance sheet date. All exchange
 differences are dealt with in profit and loss account.
 
 7.  Revenue Recognition
 
 Revenue is recognised when it is earned and no significant uncertainty
 exists as to its realization or collection.  Sale of Goods is accounted
 on delivery to customers. Sales is net of returns, discounts and Value
 Added Tax.  Export sales is accounted as revenue on the basis of Bill
 of Lading. Interest income is recognized on accrual basis. Dividend
 income is accounted for when the right to receive is established.
 
 8.  Retirement and other employee benefits
 
 Short Term Employee Benefits:
 
 Short Term emplyee benefits are recognised as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered.
 
 Post Employment Benefits:
 
 Post emplyment and other long term employee benefits are recognised as
 an expense in the Profit and Loss account for the year in which the
 employee has rendered services. The expense is recognised at the
 present value of the amounts payable determind using actuarial
 valuation techniques. Acturial gains and losses in respect of post
 emplyment and other long term benefits are charged to Profit and Loss
 account.
 
 9.  Provision for current and deferred tax
 
 a.  Provision for current tax is made on the basis of estimated taxable
 income for the current accounting period in accordance with the
 provisions of Income tax Act, 1961. Deferred tax resulting from timing
 differences between taxable and accounting income is accounted for
 using the tax rates and laws that are enacted or substantively enacted
 as on the balance sheet date.
 
 b.  Tax Expenses comprise of current tax and deferred tax. The
 provision for current income tax is the aggregate of the balance
 provision for 9 months ended March 31,2011 and the estimated provision
 based on the taxable profit of remaining 3 months upto June 30,2011,the
 actual tax liability, for which, will be determined on the basis of the
 results for the period April 1,2011 to March 31, 2012.
 
 10.  Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognised but are disclosed in the
 notes. Contingent Assets are neither recognised nor disclosed in the
 financial statements.
 
 11.  Impairment of Assets
 
 An asset is treated as impaired when the carrying cost of the asset
 exceeds its recoverable value. An impairment loss is charged to Profit
 and Loss Account in the year in which the asset is impaired and the
 impairment loss recognised in prior accounting periods is reversed if
 there has been a change in the estimate of recoverable amount. For the
 purpose of assessing impairment, assets are grouped at the lowest level
 of cash generating units.
 
 12.  Leases
 
 Leases where significant portion of risk and reward of ownership are
 retained by the lessor are classified as operating leases and lease
 rental thereon are charged to Profit and Loss account. As per the terms
 of the agreement which is representative of the time pattern of the
 users benefit.