Accounting Convention
 
 The financial statements are prepared under the historical cost
 convention, on an accrual basis, in accordance with the Generally
 Accepted Accounting Principles and applicable Accounting Standards as
 notified under the Companies (Accounting Standards) Rules 2006.
 
 Use of estimates
 
 The preparation and presentation of financial statements in conformity
 with Generally Accepted Accounting Principles requires making of
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and disclosure of contingent assets and liabilities at
 the date of the financial statements and the reported amounts of
 revenues and expenses during the reporting period. Differences between
 the actual result and estimates are recognised in the period in which
 the results are known / materialised.
 
 Revenue Recognition
 
 Sale of products are recognised when risk and rewards of ownership of
 the products are passed on to the customers, which is generally on the
 despatch of goods. Sales are exclusive of sales tax. Interest income is
 recognised on time proportion basis.
 
 Fixed assets
 
 Fixed assets are stated at the cost of acquisition less accumulated
 depreciation and impairment, if any. Cost is inclusive of freight,
 duties, taxes and other directly attributable costs incurred to bring
 the assets to their working condition for intended use.
 
 Depreciation / Amortisation
 
 Depreciation is charged using straight-line method based on the useful
 lives of the fixed assets as estimated by the management as specified
 below, or the rates specified in accordance with the provisions of
 Schedule XIV of the Companies Act, 1956, whichever is higher.
 
 Depreciation is charged on a pro-rata basis for assets purchased / sold
 during the year. Individual fixed assets costing less than Rs.5 000 are
 depreciated in full, in the year of purchase. Cost of leasehold land is
 amortised over the year of the lease or management estimate whichever
 is lower.
 
 Impairment of Assets
 
 The Company assesses at each Balance Sheet date whether there is any
 indication that an asset may be impaired.  If any such indication
 exists, the Company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset or the recoverable amount of the
 cash generating unit to which the asset belongs is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount. The reduction is treated as an impairment loss and is
 recognised in the Profit and Loss Account. If at the Balance Sheet date
 there is an indication that a previously assessed impairment loss no
 longer exists, the recoverable amount is reassessed and the asset is
 reflected at the recoverable amount.
 
 Inventories
 
 Inventories consist of raw and packing materials, stores and spares,
 work-in-progress and finished goods. Inventories are valued at lower of
 cost and net realisable value. Cost of Inventories is determined on
 weighted average basis.
 
 Cost of manufactured finished goods and work-in-progress includes
 material cost determined on weighted average basis and also includes an
 appropriate portion of allocable overheads.
 
 Foreign Exchange Transactions
 
 Transactions in foreign currencies are recorded at the exchange rates
 prevailing on the date of transaction. Monetary items in foreign
 currencies are stated at the closing exchange rate. In the case of
 Monetary items covered by forward exchange contracts, the premium or
 discount arising at the inception of such a forward exchange contract
 is amortised as expense or income over the life of the contract and the
 difference between the year end rate and rate on the date of the
 contract is recognised as exchange difference in the Profit and Loss
 Account. Gains/Losses on conversion/ translation have been recognised
 in the Profit and Loss Account.
 
 Employee benefits
 
 (i) Post-employment Benefits
 
 (a) Defined Contribution Plans:
 
 The Company has Defined Contribution Plans for post employment benefits
 charged to Profit and loss account, in the form of
 
 — Superannuation Fund as per Company policy administered by the Life
 Insurance Corporation of India.
 
 — State Defined Contribution Plans: Employer''s Contribution to
 Employees'' State Insurance.
 
 (b) Defined Benefit Plans:
 
 Funded Plan: The Company has Defined Benefit Plan for post employment
 benefits in the form of
 
 — Gratuity for all employees administered through a trust where two
 other group companies are also participants. The Company contributes to
 the trust, which has taken group policies with the Life Insurance
 Corporation of India to cover its liabilities towards employees''
 gratuity.
 
 — Provident Fund for all permanent employees is administered through a
 trust. The Provident Fund is administered by trustees of an
 independently constituted common trust recognised by the Income Tax
 authorities where two other group Companies are also participants.
 Periodic contributions to the Fund are charged to revenue. The Company
 has an obligation to make good the shortfall, if any, between the
 return from the investment of the trust and notified interest rate by
 the Government.
 
 Unfunded Plan: The Company has unfunded Defined Benefit Plans in the
 form of
 
 — Post Retirement Medical Benefits (PRMB) as per its policy.
 
 Liability for the above defined benefit plans is provided on the basis
 of valuation, as at the Balance Sheet date, carried out by independent
 actuary. The actuarial method used for measuring the liability is the
 Projected Unit Credit method.
 
 (ii) Liability for Compensated Absences and Leave Travel Allowance
 which are in the nature of short term benefits is provided for as per
 company rules on an accrual basis. The liability for compensated
 absences for its employees at its Bhiwadi Plant is in the nature of
 long term benefits and the same is provided on the basis of an
 actuarial valuation carried out at the year end.
 
 (iii) Termination benefits and long service awards in terms of Company
 policy are recognised as an expense as and when incurred.
 
 (iv) The Actuarial gains and losses arising during the year are
 recognised in the Profit and Loss Account for the year.
 
 (v) The Procter & Gamble Company, USA has a Employee Stock Option
 Plan whereby the employees covered by the plan are granted an option
 to purchase shares of the ultimate holding company i.e. - The Procter &
 Gamble Company, USA at a fixed price (grant price) for a fixed period
 of time.
 
 The difference between the market price and grant price on the exercise
 of the stock options issued by the Ultimate Holding Company to the
 employees of the Company is charged in the year of exercise by the
 employees.
 
 Taxation
 
 Income-tax expense comprises current tax (i.e. amount of tax for the
 period determined in accordance with the Income- tax laws) and deferred
 tax charge or credit (reflecting the tax effect of timing differences
 between accounting income and taxable income for the year). Provision
 for taxation for the Company''s financial year ended on June 30, 2011 is
 based on the results of the 9 months ended March 31, 2011 (Assessment
 year 2011-12) and for the 3 months ended June 30, 2011 (Assessment year
 2012-13). The ultimate liability for the Assessment year 2011-12 is
 determined on the total income of the Company for the year ending on
 March 31, 2011. The deferred tax charge or credit and the corresponding
 deferred tax liabilities and / or assets are recognised using the tax
 rates that have been enacted or substantively enacted by the Balance
 Sheet date. Deferred tax assets are recognized only to the extent there
 is reasonable certainty that the assets can be realised in future.
 
 However, where there is unabsorbed depreciation or carry forward losses
 under taxation laws, deferred tax assets are recognised only if there
 is virtual certainty of realisation of such assets. Deferred tax assets
 are reviewed as at each Balance sheet date and are written down or
 written up to reflect the amount that is reasonably / virtually certain
 (as the case may be) to be realised.
 
 The Fringe Benefit Tax has been calculated and accounted for in
 accordance with the provisions of the Income tax Act, 1961 and the
 guidance note on Accounting for Fringe Benefits Tax issued by the
 Institute of Chartered Accountants of India. Pursuant to enactment of
 Finance Act 2009, Fringe Benefit stands abolished w.e.f. April 01,
 2009.
 
 Borrowing cost
 
 Borrowing costs directly attributable to acquisition or construction of
 qualifying assets (i.e. those fixed assets which necessarily take a
 substantial period of time to get ready for their intended use) are
 capitalised. Other borrowing costs are recognised as an expense in the
 year in which they are incurred.
 
 Leases
 
 Lease payments under operating lease are recognised as an expense in
 the Profit and Loss Account on a straight line basis over the lease
 term with the lessor.
 
 Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions are recognised when the Company has a legal and constructive
 obligation as a result of a past event, for which it is probable that a
 cash outflow will be required and a reliable estimate can be made of
 the amount of the obligation. Contingent Liabilities are disclosed when
 the Company has a possible obligation or a present obligation and it is
 probable that a cash outflow will not be required to settle the
 obligation.
 
 Contingent Assets are not recognized in financial statements as they
 may never be realized.