Provisions and Contingent Liabilities

A provision is recognised when the Company has
a present obligation as a result of past events 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. The amount
recognised as a provision is the best estimate of
the consideration required to settle the present
obligation at the end of the reporting period, taking
into account the risks and uncertainties surrounding
the obligation. When a provision is measured using
the cash flows estimated to settle the present
obligation, its carrying amount is the present value
of those cash flows (when the effect of the time
value of money is material). These are reviewed at

each balance sheet date and adjusted to reflect the
current best estimates.

Contingent liabilities are disclosed in the Notes.
Contingent assets are not recognised in the
financial statements.

2.20 Impairment of non-financial assets

At the end of each reporting period, the Company
reviews the carrying amounts of its tangible and
intangible assets to determine whether there is
any indication that those assets have suffered an
impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in
order to determine the extent of the impairment
loss (if any). When it is not possible to estimate
the recoverable amount of an individual asset, the
Company estimates the recoverable amount of the
cash-generating unit to which the asset belongs.
When a reasonable and consistent basis of allocation
can be identified, corporate assets are also allocated
to individual cash-generating units, or otherwise
they are allocated to the smallest Company of
cash-generating units for which a reasonable and
consistent allocation basis can be identified.

Intangible assets with indefinite useful lives and
intangible assets not yet available for use are tested
for impairment at least annually, and whenever
there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less
costs of disposal and value in use. In assessing value in
use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate
that reflects current market assessments of the time
value of money and the risks specific to the asset
for which the estimates of future cash flows have
not been adjusted.

2.21 Earnings per share (EPS)

Basic earnings per share are computed by dividing
statement of profit and loss attributable to equity
shareholders of the company by the weighted
average number of equity shares outstanding
during the year.

Diluted earnings per share is computed by dividing
the net profit after tax by the weighted average
number of equity shares considered for deriving
basic EPS and also weighted average number of
equity shares that could have been issued upon
conversion of all dilutive potential equity shares.
Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless
issued at a later date. Dilutive potential equity

shares are determined independently for each
period presented.

2.22 Operating Cycle

Based on the nature of products / activities of the
Company and the normal time between acquisition
of assets and their realisation in cash or cash
equivalents, the Company has determined its
operating cycle as 12 months for the purpose of
classification of its assets and liabilities as current
and non-current.

2.23 Receivable discounting charges

Receivables discounting charges are recognised in
Statement of profit and loss in the period in which
they are incurred.

3 Use of estimates and judgements

In the application of the Company's accounting policies,
which are described in note 2, the directors of the
Company are required to make judgements, estimates
and assumptions about the carrying amounts of assets
and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are
based on historical experience and other factors that are
considered to be relevant. Actual results may differ from
these estimates.

The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is
revised if the revision affects only that period, or in the
period of the revision and future periods if the revision
affects both current and future periods.

Key sources of estimation uncertainty

The following are the key assumptions concerning the
future, and other key sources of estimation uncertainty
at the end of the reporting period that may have a
significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next
financial year.

Impairment of goodwill

Determining whether goodwill is impaired requires an
estimation of the value in use of the cash-generating units
to which goodwill has been allocated. The value in use
calculation requires the directors to estimate the future
cash flows expected to arise from the cash-generating
unit and a suitable discount rate in order to calculate
present value. Where the actual future cash flows are less
than expected, a material impairment loss may arise.

Impairment of investments made and loans given to

subsidiaries

The Company reviews its carrying value of investments
made and loans given to subsidiaries at cost, annually,
or more frequently when there is an indication for
impairment. If the recoverable amount is less than its
carrying amount, the impairment loss is accounted for.

Leases

Ind AS 116 requires lessees to determine the lease
term as the non-cancellable period of a lease adjusted
with any option to extend or terminate the lease, if the
use of such option is reasonably certain. The Company
makes an assessment on the expected lease term on
a lease-by-lease basis and thereby assesses whether
it is reasonably certain that any options to extend or
terminate the contract will be exercised. In evaluating
the lease term, the Company considers factors such as
any significant leasehold improvements undertaken
over the lease term, costs relating to the termination of
the lease and the importance of the underlying asset
to the Company's operations taking into account the
location of the underlying asset and the availability of
suitable alternatives.

Useful lives of property, plant and equipment

The estimated useful lives, residual values and depreciation
method are reviewed at the end of each reporting period,
with the effect of any changes in estimate accounted for
on a prospective basis.

Provision For site restoration obligations:

The Company has recognised provision for site
restoration obligation associated with the stores opened.
In determining the value of the provision, assumptions
and estimates are made in respect of the expected cost
to dismantle and remove the furniture/fixtures from the
stores and the expected timing of those costs.

Uncertain tax positions

The Company's current tax provision relates to
management's assessment of the amount of tax payable
on open tax positions where the liabilities remain to be
agreed with relevant tax authorities. Uncertain tax items
for which a provision is made relate principally to the
interpretation oftax legislation applicable to arrangements
entered into by the Company. Due to the uncertainty
associated with such tax items, it is possible that, on
conclusion of open tax matters at a future date, the final
outcome may differ significantly.