a) Basis of preparation of financial statements
 
 The financial statements have been prepared under the historical cost
 convention and in accordance with Generally Accepted Accounting
 Principles including applicable Accounting Standards in India and the
 provisions of the Companies Act, 1956.
 
 b) Use of estimates
 
 The preparation of financial statements in conformity with Generally
 Accepted Accounting Principles requires estimates and assumptions to be
 made that affect the reported amounts of assets and liabilities and
 disclosure of contingent liabilities on the date of the financial
 statements and the reported amounts of revenues and expenses during the
 reporting period. Actual results could differ from those estimates and
 differences between actual results and estimates are recognised in the
 periods in which the results are known/materialise.
 
 c) Fixed Assets and Depreciation
 
 Tangible Assets
 
 Fixed assets are stated at their original cost of acquisition less
 accumulated depreciation and impairment losses. Cost comprises of all
 costs incurred to bring the assets to their location and working
 condition and includes all expenses incurred up to the date of
 launching new stores to the extent they are attributable to the new
 stores.
 
 Intangible Assets
 
 Intangible assets are stated at their cost of acquisition, less
 accumulated amortisation and impairment losses. An intangible asset is
 recognised, where it is probable that the future economic benefits
 attributable to the asset will flow to the enterprise and where its
 cost can be reliably measured. The intangible assets are amortised over
 the best estimate of its useful life on a straight-line basis.
 
 Trademarks & Patents and Computer Software are amortised uniformly over
 a period of 10 and 6 years respectively.
 
 Impairment of assets
 
 An asset is considered as impaired in accordance with Accounting
 Standard 28 on Impairment of Assets when at the balance sheet date
 there are indications of impairment and the carrying amount of the
 asset, or where applicable, of the cash generating unit to which the
 asset belongs, exceeds its recoverable amount (i.e. the higher of the
 assets net selling price and value in use).  The carrying amount is
 reduced to the recoverable amount and the reduction is recognised as an
 impairment loss in the profit and loss account.
 
 d) Investments
 
 Long-term investments are stated at cost. Where applicable, provision
 is made to recognise a decline, other than temporary, in the value of
 Long-term Investments.
 
 e) Revenue recognition
 
 Revenue is recognised when it is earned and no significant uncertainty
 exists as to its realisation or collection.
 
 Retail sales are recognised on delivery of the merchandise to the
 customer, when the property in goods and significant risks and rewards
 are transferred for a price and no effective ownership control is
 retained.
 
 The property in the merchandise of third party concession stores
 located within the main departmental store of the Company passes to the
 Company once a customer decides to purchase an item from the concession
 store. The Company in turn sells the item to the customer and is
 accordingly included under Retail Sales.
 
 The property in the merchandise of third party consignment stock does
 not pass to the Company. Since, however, the sale of such stock forms a
 part of the activities of the Companys departmental stores, the gross
 sales values and cost of the merchandise are disclosed separately and
 form part of total Retail Turnover in the profit and loss account.
 
 Sales are net of discounts. Value Added Tax and Sales Tax are reduced
 from Retail Turnover.
 
 In respect of gift vouchers and point award schemes operated by the
 Company, sales are recognised when the gift vouchers or points are
 redeemed and the merchandise is sold to the customer.
 
 Revenue from store displays and sponsorships are recognised based on
 the period for which the products or the sponsors advertisements are
 promoted/displayed. Facility management fees are recognised pro-rata
 over the period of the contract.
 
 f) Income from Investments and Loans
 
 Interest income is recognised on time proportion basis. Dividend income
 is recognised when right to receive payment is established.
 
 g) Inventories
 
 Inventories are valued at the lower of cost and 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 determined by the weighted average cost method.
 
 Merchandise received under consignment and concessionaire arrangements
 belong to the consignors/concessionaires and are therefore excluded
 from the Companys inventories.
 
 h) Employee benefits
 
 Compensation to employees for services rendered is measured and
 accounted for in accordance with Accounting Standard 15 on Employee
 Benefits.
 
 Employee Benefits such as salaries, allowances, non-monetary benefits
 and employee benefits under defined contribution plans such as
 provident and other funds, which fall due for payment within a period
 of twelve months after rendering service, are charged as expense to the
 profit and loss account in the period in which the service is rendered.
 
 Employee Benefits under defined benefit plans and other long-term
 employee benefits such as gratuity and compensated absences which fall
 due for payment after completion/cessation of employment or after a
 period of twelve months from rendering service, are measured by the
 projected unit credit method, based on actuarial valuations, at each
 balance sheet date, carried out by independent actuaries. The Companys
 obligations recognised in the balance sheet represent the present value
 of obligations as reduced by the fair value of plan assets, where
 applicable.
 
 Actuarial Gains and losses are recognised immediately in the Profit and
 Loss Account.
 
 i) Operating Lease
 
 Operating Lease payments are recognised as an expense in the Profit &
 Loss Account on a straight-line basis or other systematic bases more
 representative of the time pattern of the users benefit.
 
 j) Borrowing costs
 
 Borrowing costs attributable to the acquisition or construction of
 qualifying assets, as defined in Accounting Standard 16 on Borrowing
 Costs, are capitalised as part of the cost of acquisition. Other
 borrowing costs are expensed as incurred.
 
 k) Foreign currency transactions
 
 Transactions in foreign currencies are accounted at the prevailing
 rates of exchange on the date of transaction.
 
 Monetary items denominated in foreign currencies, are restated at the
 prevailing rates of exchange at the Balance Sheet date.  All gains and
 losses arising out of fluctuations in exchange rates are accounted for
 in the Profit and Loss Account.
 
 Exchange differences on forward exchange contracts, entered into for
 hedging foreign exchange fluctuation risk in respect of an underlying
 asset/liability, are recognised in the Profit and Loss Account in the
 reporting period in which the exchange rate changes. Premium/ Discount
 on forward exchange contracts are recognised as an expense/income over
 the life of the contract.
 
 l) Income-tax
 
 Income-taxes are accounted for in accordance with Accounting Standard
 22 on Accounting for Taxes on Income. Taxes comprise both current and
 deferred tax.
 
 Provision for current tax is made taking into account admissible
 allowances, disallowances under the provisions of Income-tax Act, 1961,
 using the applicable tax rates.
 
 Deferred tax resulting from the timing differences between taxable
 income and accounting income is accounted using applicable tax rates
 and laws, enacted or substantively enacted as at the Balance Sheet.
 
 The deferred tax asset is recognised and carried forward only to the
 extent that there is reasonable/virtual certainty that the asset will
 be realised in future.
 
 m) Stock-based compensation
 
 The compensation cost of stock options granted to employees is
 calculated using the intrinsic value of the stock options. The
 compensation expense is amortised uniformly over the vesting period of
 the option.
 
 n) Earnings Per Share
 
 The company reports basic and diluted Earnings Per Share (EPS) in
 accordance with Accounting Standard 20 on Earnings Per
 
 Share. Basic EPS is computed by dividing the net profit or loss for the
 year by the weighted average number of equity shares outstanding during
 the year. Diluted EPS is computed by dividing the net profit or loss
 for the year by the weighted average number of equity shares
 outstanding during the year as adjusted for the effects of all dilutive
 potential equity shares, except where the results are anti-dilutive.
 
 o) Cash Flow Statement
 
 The Cash Flow Statement is prepared by the indirect method set out in
 Accounting Standard 3 on Cash Flow Statements and presents the cash
 flows by operating, investing and financing activities of the Company.
 Cash and cash equivalents presented in the Cash Flow Statement consist
 of cash-on-hand and unencumbered bank balances.
 
 p) Provision, 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 to the financial statements. Disclosure is not made if the
 possibility of an outflow of future economic benefits is remote.
 Contingent assets are neither recognised nor disclosed in the financial
 statements.