1.  Corporate Information
 
 V2 Retail Limited (the Company) formerly known as Vishal Retail Limited
 is a public company domiciled in India and incorporated under the
 provisions ofthe CompaniesAct, 1956. Its shares are listed on two stock
 exchanges in India. The Company is engaged in the business of retail
 sales of garments, textiles, accessories, consumer durables and FMCG
 products in India.
 
 2.  Basis of Preparation
 
 The financial statements ofthe Company have been prepared in accordance
 with generally accepted accounting principles in India (Indian GAAP).
 The Company has prepared these financial statements to comply in all
 material respects with the Accounting Standards notified by Companies
 (Accounting Standards) Rules, 2006, (as amended) and the relevant
 provisions ofthe CompaniesAct, 1956. The financial statements have been
 prepared under the historical cost convention on an accrual basis.
 
 The accounting policies have been consistently applied by the Company
 except as mentioned herein below:
 
 a.  Terms / rights attached to equity shares / warrants
 
 The Company has only one class of equity shares having a par value of
 Rs. 10 per share. Each holder of equity shares is entitled to one vote
 per share. The company declares and pays dividends in Indian rupees.
 The Board of Directors of the Company has not declared any dividend
 during the reporting period. In the event of liquidation ofthe Company,
 the holders of equity shares will be entitled to receive remaining
 assets of the Company, after distribution of all preferential amounts.
 The distribution will be in proportion to the number of equity shares
 held by the shareholders.
 
 The Company came out with preferential allotment of 39,10,000
 Convertible Share Warrants to its promoters during the Financial year
 2009- 10 at an issue price of Rs. 60/- calculated under SEBI (DIP)
 Guidelines, 2000 on preferential basis duly approved by Shareholders
 and Board of Directors of the Company. These Warrants were issued on
 30lh October, 2009 and were convertible into equity shares on or before
 18 months from the date of issue. The promoters failed to pay balance
 amount of share warrants consequently the paid amount which was duly
 bifurcated into Share Warrants Money and Share Premium stands forfeited
 on April 29m 2011.
 
 1.  State Bank of India & Pegasus Assets Reconstruction Pvt. Ltd.
 
 There is no outstanding loan from State Bank of India, the formalities
 for removal of charge from MCA are yet to be furnished. The Detail of
 Charges is mentioned herein below:
 
 First charge on pari passu basis on all the movable and immovable
 assets of the Company as on the transfer date.
 
 First pari passu charge by way of equitable mortgage of property in the
 name of Vishal Water World Pvt. Ltd. situated at Kouchapukur, PO
 Hatgachia ,dist 24 Parganas (West Bengal)
 
 First pari passu charge by way of equitable mortgage of property in the
 name of V2 Retail Limited situated at Khasra No. 122/44, Mouza Central
 Hope town (Selakui), Paragana Pachwodopon, Tehsil Vikas Nagar, district
 Dehradun.
 
 First pari passu charge by way of equitable mortgage of property in the
 name of V2 Retail Limited situated at Krishnanagar Village, Taluq
 Hubli, District Dharwad.  First pari passu charge by way of equitable
 mortgage of First Floor & Second Floor of property in the name of V2
 Retail Limited situated at PJE Plaza, deg No.77- 78,81,82 Khasra B
 no.655-11-5-12, Mauza-Kyenjara, VIP Road, Kolkata Personal Guarantee of
 Mr. Ram ChandraAgarwal and Mrs. UmaAgarwal Corporate Guarantee of
 Vishal Water World Pvt. Ltd.
 
 Pledge of 100% of existing promoters,shareholding in the Company or
 51 % of the Company''s paid up capital whichever is lower.
 
 The loan payable to Pegasus Assets Reconstruction Pvt. Ltd. was
 originally taken from HSBC Bank Limited.
 
 2.  Bank of India, ING Vysya Bank and UCO Bank
 
 There is no outstanding loan from Bank of India, ING Vysya Bank & UCO
 Bank, the formalities for removal of charge from MCA are yet to be
 furnished. The Detail of Charges is mentioned herein below :
 
 Exclusive charge with Bank of India of property at industrial land
 Khata no.329, Khasra No. 122/43 Mouza Central Hope town, (Saelakui),
 Paragna Pachwodopon, Tehsil Vikas Nagar, District Dehradun Subservient
 charge on Current Assets
 
 Personal Guarantee of Mr. Ram Chandra Agarwal and Mrs. Uma Agarwal.
 
 Pledge of 953,770 shares of V2 Retail Limited.
 
 Corporate Guarantee of Unicorn Marketing Private Limited.(Liability
 limited to the extent of shares pledged( 7,70,000 shares of V2 Retail
 Limited)
 
 Pledge of 100% of existing promoters,shareholding in the Company or
 51% of the Company''s paid up capital whichever is lower.
 
 3.  Deferred Tax Assets
 
 In accordance with Accounting Standard 22 on ''Accounting for Taxes on
 Income''the net decrease in deferred tax asset of Rs. 155,312,063 for
 the current year has been recognised in the profit & loss account. The
 tax effect of significant timing differences as at 31 si March, 2011
 that reverse in one or more subsequent years gave rise to the following
 net deferred tax assets as at March 31,2012.
 
 4.  Leases
 
 The company has taken premises for showroom for 12 years lease/license
 period with lock in period of one to three year. The escalation clause
 is variable between 12% to 15% after every three years and the company
 generally takes three month rent free time from the date of possession
 given by the landlord.
 
 Obligations on long term, non-cancelable operating leases.
 
 The lease rentals charged during the year and maximum obligations on
 long term non-cancelable operating leases payable as per the rentals
 stated in the respective agreements.
 
 5.  Segment Information
 
 The Company is engaged in the business of retail sales of garments,
 textiles, accessories and FMCG in India and there are no separate
 reportable segments as per AS-17 “Segment reporting notified by
 Companies (Accounting Standards) Rules, 2006.
 
 6. Contingent liabilities:
 
                                                      (Amount in Rs.)
 Particulars                           31th March 
                                       2012          31th March 2011
 
 a.  Outstanding Bank Guarantees         5,997,535      1,225,000
 
 b.  Disputed Sales Tax Demands - 
 matter under appeal                   298,551,617    5,51,96,492
 
 c.  Disputed excise duty demands- 
 matter under appeal                         -             -
 
 d.  Disputed Liability in respect 
 of Income Tax demands - matter under
 appeal                                      -             -
 
 e.  Claims against the Company 
 not acknowledged as debts            198,177,295    269,598,913
 
 f.  Claims by Provident
 Fund Department                      113,929,006    113,929,006
 
 g.  Claims by Service 
 Tax Department                        30,208,391         - 
 
 Total                                646,863,844)   439,949,411
 
 Note:-The Company has initiated the process of identification of Micro,
 Small & Medium Enterprises Suppliers and service providers, at this
 point of time. In View of large numbers of suppliers and non receipt of
 critical inputs and response from several such potential parties, the
 liability of interest, if any, cannot be reliably estimated nor
 required disclosure can be made.
 
 There are no contingent liabilities in respect of the Joint Venture.
 The above figures are based on latest available unaudited accounts,
 drawn on the respective dates as certified by the management.
 
 7. The figures of previous year were audited by firm of Chartered
 Accountants other than AKGVG and Associates Previous year''s figures
 have been regrouped and/or rearranged where necessary to conform to
 this year’s classification.