1.  Basis of preparation of Financial Statements
 
 The Financial Statements of the Company are prepared under historical
 cost convention, except as otherwise stated, in accordance with the
 Generally Accepted Accounting Principles (GAAP) in India, the
 Accounting Standards as specified in the Companies (Accounting
 Standard) Rules 2006, and the relevant provisions of the Companies Act,
 1956.
 
 2.  Fixed Assets
 
 (a) Fixed assets are stated at their original cost of acquisition and
 subsequent improvements thereto including taxes, duties, freight and
 other incidental expenses related to acquisition and installation of
 the assets concerned, except amounts adjusted on revaluation and
 amalgamation. Interest on borrowings attributable to qualifying assets
 are capitalised and included in the cost of fixed assets as
 appropriate.
 
 (b) The costs of Fixed Assets acquired in amalgamations are determined
 at their fair values, on the date of acquisition or nearer thereto, or
 as approved under the schemes of amalgamation.
 
 (c) Assets held for disposal are stated at their net book value or
 estimated net realisable value, whichever is lower.
 
 (d) Intangible assets are stated at the consideration paid for
 acquisition less accumulated amortisation.
 
 3.  Leases
 
 Assets acquired under Leases, where the Company has substantially all
 the risks and rewards of ownership, are classified as finance leases.
 Such leases are capitalised at the inception of the lease at lower of
 the fair value or the present value of the minimum lease payments and a
 liability is created for an equivalent amount. Each lease rental paid
 is allocated between the liability and the interest cost, so as to
 obtain a constant periodic rate of interest on the outstanding
 liability for each period.
 
 Assets acquired as leases, where a significant portion of the risk and
 rewards of ownership are retained by the lessor, are classified as
 operating leases. Lease rentals are charged to the Profit and Loss
 Account on accrual basis.
 
 4.  Depreciation and Amortisation
 
 a) Depreciation is provided on the Straight Line Method, including on
 assets revalued, at rates prescribed in Schedule XIV to the Companies
 Act, 1956 (Schedule XIV) except for the following, which are based on
 management''s estimate of useful life of the assets concerned:
 
 i) Computers, Vehicles and Aircrafts over a period of three, five and
 eleven years respectively;
 
 ii) In respect of certain items of Plant and Machinery for which
 separate rates are prescribed in Schedule XIV based on the number of
 shifts, depreciation is provided for the full year on triple shift
 basis.
 
 b) Fixed assets acquired on amalgamation over the remaining useful life
 computed based on rates prescribed in Schedule XIV, as below:
 
 Buildings - Factory 1 to 30 years
 
 - Non factory 1 to 54 years
 
 Plant & Machinery 1 to 20 years
 
 Vehicles 1 to 4 years
 
 Computers 1 to 2 years
 
 c) Assets taken on finance lease are depreciated over their estimated
 useful lives or the lease term, whichever is lower.
 
 d) Leasehold Land are not amortised.
 
 e) Goodwill arising on amalgamation is charged to the Profit and Loss
 Account in the year of amalgamation.
 
 f) Intangible assets are amortised, on a straight line basis,
 commencing from the date the assets are available for use, over their
 respective individual estimated useful lives as estimated by the
 management:
 
 Trademark, Formulae and Licence 10 years
 
 g) Leasehold improvements are amortised over the period of lease.
 
 Depreciation charged as above is not less than the minimum specified as
 per Schedule XIV
 
 5.  Impairment
 
 Impairment loss, if any, is provided to the extent the carrying amounts
 of assets exceed their recoverable amount.
 
 Recoverable amount is higher of the net selling price of an asset and
 its value in use. Value in use is the present value of estimated future
 cash flows expected to arise from the continuing use of an asset and
 from its disposal at the end of its useful life.
 
 6.  Investments
 
 Long-term Investments are stated at cost to the Company. Provision for
 diminution in the value is made to recognise a decline, other than
 temporary, in the value of long-term investments.
 
 Current investments are valued at cost or market value, whichever is
 less.
 
 7.  Inventories
 
 Inventories are valued at lower of cost and net realisable value. The
 costs are, in general, ascertained under Weighted Average Method.
 Finished goods and Work-in-Progress include appropriate manufacturing
 overheads and borrowing costs, as applicable. Excise/ Customs duty
 payable on stocks in bond is added to the cost. Due allowance is made
 for obsolete and slow moving items.
 
 8.  Revenue Recognition
 
 Sales are recognised when goods are despatched from distilleries/
 warehouses of the Company in accordance with the terms of sale except
 where such terms provide otherwise, where sales are recognised based on
 such terms. Gross Sales are inclusive of excise duty but are net of
 trade discounts and sales tax, where applicable.
 
 Income arising from sales by manufacturers under Tie-up agreements
 (Tie-up units) and income from brand franchise are recognised in terms
 of the respective contracts on sale of the products by the Tie-up units
 / Franchisees. Income from brand franchise is net of service tax, where
 applicable.
 
 Dividend income on investments are recognised and accounted for when
 the right to receive the payment is established.
 
 9.  Foreign Currency Transactions
 
 Transactions in foreign currency are recognised at the rates of
 exchange prevailing on the dates of the transactions.
 
 Liabilities/ assets in foreign currencies are reckoned in the accounts
 as per the following principles:
 
 Exchange differences arising on a monetary item that, in substance,
 forms part of an enterprise''s net investment in a non-integral foreign
 operation is accumulated in a foreign currency translation reserve in
 the financial statements until the disposal of the net investment.
 
 Exchange differences arising on reporting of long term foreign currency
 monetary items, with the exception of exchange differences arising on a
 monetary item that, in substance, forms part of an enterprise''s net
 investment in a non-integral foreign operation, at rates different from
 those at which they were initially recorded during the period or
 reported in previous financial statements, are accounted as below:
 
 (a) In so far as they relate to the acquisition of depreciable capital
 assets, are added to or deducted from the cost of the asset and are
 depreciated over the balance life of the asset; and
 
 (b) In other cases, the said exchange differences are accumulated in a
 ''Foreign Currency Monetary Items Translation Difference Account'' and
 amortised over the balance period of such long term asset/liability but
 not beyond March 31, 2011.
 
 Exchange differences in respect of all other monetary assets and
 liabilities denominated in foreign currency are restated at the rates
 ruling at the year end and all exchange gains/ losses arising there
 from are adjusted to the Profit and Loss Account, except those covered
 by forward contracted rates where the premium or discount arising at
 the inception of such forward exchange contract is amortised as expense
 or income over the life of the contract.
 
 Exchange differences on forward contracts are recognised in the Profit
 and Loss Account in the reporting period in which the exchange rates
 change. Any profit or loss arising on cancellation or renewal of such
 forward contracts is recognised as income or expense for the year.
 
 For forward exchange contracts and other derivatives that are not
 covered by Accounting Standard (AS) -11 The Effects of Changes in
 Foreign Exchange Rates'', the Company follows the guidance in the
 announcement of the Institute of Chartered Accountants of India (ICAI)
 dated March 29, 2008, whereby for each category of derivatives, the
 Company records any net mark-to-market losses. Net mark-to-market gains
 are not recorded for such derivatives.
 
 Also refer Schedule 18 Note 12.
 
 10.  Employee Benefits
 
 a) Defined-contribution plans
 
 These are plans in which the Company pays pre-defined amounts to
 separate funds and does not have any legal or informal obligation to
 pay additional sums. These comprise of contributions to the employees''
 provident fund with the government, superannuation fund and certain
 state plans like Employees'' State Insurance and Employees'' Pension
 Scheme. The Company''s payments to the defined contribution plans are
 recognised as expenses during the period in which the employees perform
 the services that the payment covers.
 
 b) Defined-benefit plans
 
 Gratuity:
 
 The Company provides for gratuity a defined benefit plan (the Gratuity
 Plan), to certain categories of employees. Liability with regard to
 gratuity plan is accrued based on actuarial valuation, based on
 Projected Unit Credit Method at the balance sheet date, carried out by
 an independent actuary. Actuarial Gains and Losses comprise experience
 adjustments and the effect of changes in the actuarial assumptions and
 are recognised immediately in the Profit and Loss Account as income or
 expense.
 
 Provident Fund:
 
 Company''s Provident Funds administered by trusts set up by the Company
 where the Company''s obligation is to provide the agreed benefit to the
 employees and the actuarial risk and investment risk fall, in
 substance, on the Company are treated as a defined benefit plan.
 Liability with regard to such provident fund plans are accrued based on
 actuarial valuation, based on Projected Unit Credit Method, carried out
 by an independent actuary at the balance sheet date. Actuarial Gains
 and Losses comprise experience adjustments and the effect of changes in
 the actuarial assumptions and are recognised immediately in the Profit
 and Loss Account as income or expense.
 
 Death Benefit:
 
 Death Benefit payable at the time of death is actuarially ascertained
 at the year-end and provided for in the accounts.
 
 c) Other long term employee benefits:
 
 Compensated absences which are not expected to occur within twelve
 months after the end of the period in which the employee renders the
 related services are recognised as a liability at the present value of
 the defined benefit obligation at the balance sheet date based on an
 actuarial valuation.
 
 d) Short term employee benefits:
 
 Undiscounted amount of short term employee benefits expected to be paid
 in exchange for the services rendered by employees is recognised during
 the period when the employee renders the services. These benefits
 include compensated absences (e.g., paid annual leave), performance
 incentives, etc.
 
 11.  Expenditure on account of Voluntary Retirement Scheme
 
 Expenditure on account of Voluntary Retirement Scheme of employees is
 expensed in the period in which it is incurred.
 
 12.  Research and Development
 
 Revenue expenditure on research and development is charged to Profit
 and Loss Account in the period in which it is incurred. Capital
 Expenditure is included as part of fixed assets and depreciated on the
 same basis as other fixed assets.
 
 13.  Taxes on Income
 
 Provision for income tax comprises current taxes and deferred taxes.
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the period.
 
 Deferred tax is recognised on timing differences between the accounting
 income and the taxable income for the year and quantified using the tax
 rates and laws enacted or substantively enacted as on the Balance Sheet
 date.
 
 Deferred tax assets are recognised and carried forward to the extent
 that there is a reasonable/ virtual certainty that sufficient future
 taxable income will be available against which such deferred tax asset
 can be realised.
 
 14.  Earnings per Share (EPS)
 
 Basic EPS is arrived at based on Net Profit after Taxation available to
 equity shareholders to the weighted average number of equity shares
 outstanding during the year. The Diluted EPS is calculated on the same
 basis as Basic EPS, after adjusting for the effects of potential
 dilutive equity shares unless impact is anti-dilutive.
 
 15.  Provisions
 
 A provision is recognised when an enterprise has a present obligation
 as a result of a past event and it is probable that an outflow of
 resources will be required to settle the obligation, in respect of
 which a reliable estimate can be made.  Provisions, other than employee
 benefits, are not discounted to their present value and are determined
 based on management estimate required to settle the obligation at the
 balance sheet date. These are reviewed at each balance sheet date and
 adjusted to reflect the current management estimates.
 
 16.  Contingencies
 
 Liabilities which are material and whose future outcome cannot be
 ascertained with reasonable certainty are treated as contingent and, to
 the extent not provided for, are disclosed by way of notes on accounts.
 
 17.  Share issue expenses
 
 Share issue expenses incurred are adjusted to the Securities Premium
 Account as permitted by Section 78(2) of the Companies Act, 1956
 
 18.  Expenditure
 
 Expenses are net of taxes recoverable, where applicable.
 
 19.  Borrowing Costs
 
 Borrowing costs incurred for the acquisition of qualifying assets are
 recognised as part of cost of such assets when it is considered
 probable that they will result in future economic benefits to the
 Company while other borrowing costs are expensed in the period in which
 they are incurred.