1.0 Basis of preparation of accounts
 
 The financial statements are prepared on the accrual basis of
 accounting and in accordance with the Standard on Accordance with the
 standard on Accounting notified by the Companies (Accounting Standards)
 Rules,2006 and refered to in Section 211(3C) of the Companies Act,1956
 
 2.0 Fixed Assets and Depreciation
 
 2.1 Fixed Assets are stated at cost less depreciation. Costs comprise
 of cost of acquisition, Borrowing Cost, Cost of Improvement and any
 attributable cost of bringing the asset to condition for its intended
 use.
 
 2.2 Depreciation on tangible assets is provided in accordance with the
 provisions of Schedule XIV to the Companies Act, 1956 as under: -
 
 (a) In respect of the assets of the Retail Business on Straight Line
 method.
 
 (b) In respect of all other assets on Written Down Value method.
 
 2.3 Leasehold land is amortised over the period of lease remaining as
 at the date of their capitalisation.
 
 2.4 Improvement to leasehold premises are depreciated over the period
 of lease remaining as at the date of their capitalisation.
 
 2.5 Intangible Assets are amortised over their useful life not
 exceeding ten years.
 
 3.0 Investments
 
 Long Term Investments are stated at cost. A provision for diminution is
 made to recognise a decline, other than temporary, in the value of Long
 Term Investments. Current Investments are stated at lower of cost or
 fair value.
 
 4.0 Inventories
 
 Inventories are valued as under :
 
 Raw materials,packing materials and stores and spares : at cost.
 
 Finished Products : at lower of cost or net realisable value.
 
 5.0 Income
 
 5.1 Sale of goods is recognised on delivery to customers and include
 amounts recovered towards sales tax.
 
 5.2 Interest income is accounted on accrual basis.
 
 5.3 Dividend income is accounted when right to receive payment is
 established.
 
 6.0 Retirement Benefits
 
 Defined Contribution Plans
 
 6.1 a) Companys contributions during the year towards Government
 administered Provident Fund, Family
 
 Pension Fund, ESIC and Labour Welfare Fund are charged to the Profit
 and Loss Account as incurred.
 
 b) Companys contributions during the year towards Superannuation to
 the Superannuation Trust administered by a Life Insurance Company are
 recognized in the Profit and Loss Account as incurred. (Refer Note No
 21 (d), Page No. 72)
 
 6.2 Defined Benefit Plans
 
 a) Companys Contribution towards Gratuity made under the Group
 Gratuity Schemes with Life Insurance Companies are determined based on
 the amounts recommended by Life Insurance Companies as per actuarial
 valuation. (Refer Note 21(a), Page No. 71)
 
 b) In the case of certain employees, contribution towards Provident
 Fund is made to an approved trust administered by the Company. The
 interest rate payable to the members of the trust shall not be lower
 than the statutory rate of interest declared by the Central Government
 under the Employees Provident Fund and Miscellaneous Provisions Act,
 1952 and shortfall, if any, shall be made good by the Company.
 
 c) Provision for other retirement / post retirement benefits in the
 forms of pensions, medical benefits and long term compensated absences
 (leave encashment) has been made on the basis of actuarial valuation.
 
 Schedule Forming Part of the Balance Sheet and Profit and Loss Account
 (Contd.)
 
 7.0 Foreign Currency Transactions
 
 Foreign Currency transactions are accounted at the rates prevailing on
 the date of transaction.
 
 Year end current assets and liabilities are translated at the exchange
 rate ruling on the date of the Balance Sheet.
 
 Exchange differences on settlement/conversion are adjusted to the
 Profit and Loss Account.
 
 8.0 Employee Stock Option Scheme (ESOS)
 
 In respect of Options granted under the Companys Employee Stock
 Options Scheme (ESOS), in accordance with guidelines issued by SEBI ,
 the accounting value of options is accounted as Deferred Employee
 Compensation, which is amortised on a straight line basis over the
 vesting period.
 
 9.0 Provisions and Contingent Liabilities
 
 The Company recognises a provision when there is a present obligation
 as a result of past event that probably requires an outflow of
 resources and a reliable estimate can be made of the amount of the
 obligation. A disclosure for contingent liability is made when there is
 possible obligation or a present obligation that may, but probably will
 not, require an outflow of resources. Where there is a possible
 obligation or present obligation that the likelihood of outflow of
 resources is remote, no provision or disclosure is made.
 
 10.0 Taxation
 
 10.1 Current Tax comprises of Provision for Income Tax and Wealth Tax
 is determined in accordance with the provisions of Income Tax Act, 1961
 and the Wealth Tax Act, 1957.
 
 10.2 Deferred tax is recognised on timing difference between the
 taxable income and accounting income that originate in one period and
 are capable of reversal in one or more subsequent periods.
 
 11.0 Leases
 
 Lease arrangements where the risks and rewards incident to ownership of
 an asset substantially vest with the lessor are recognised as operating
 leases. Lease rents under operating leases are recognised in the Profit
 and Loss Account on straight line basis.
 
 12.0 Borrowing Cost
 
 Borrowing cost include interest, fees and other charges incurred in
 connection with the borrowing of funds and is considered as revenue
 expenditure for the year in which it is incurred. Borrowing cost
 attributed to the acquisition/improvement of qualifying capital assets
 and incurred till the commencement of commercial use of the assets is
 capitalised as cost of the assets,