1.  (a) Contingent Liabilities:
 
 (i) In respect of Income Tax demands for which the company has
 preferred appeals with appropriate authorities - Rs.13 42 95 184
 (Previous year : Rs.12 99 57 557). The contingent liability is in
 respect of matters related to: Income tax dispute on inventory
 write-off, allowability of losses carried forward from merged entities
 and others.
 
 (ii) In respect of Sales tax matters for which the Company has
 preferred appeals with appropriate authorities - Rs.22 16 36 473
 (Previous year : Rs.22 70 19 399). The contingent liability is in
 respect of matters related to: non submission of C Forms / F Forms
 Rs.19 37 99 184 (Previous year : Rs. 18 21 19 292) and Interest demand
 on VAT rate difference Rs.8 831 (Previous year : Rs.56 85 537) and
 others Rs.2 78 28 458 (Previous year : Rs.3 92 14 570).
 
 (iii) In respect of Excise and Customs matters for which the company
 has preferred appeals with appropriate authorities - Rs. 1 04 98 83 545
 (Previous year :Rs. 1 92 44 66 782). The contingent liabilities are in
 respect of denial of excise duty benefits at excise exempt location
 Rs.51 15 19 503 (Previous year : Rs.1 51 26 75 466), denial of Cenvat
 credit Rs.35 07 41 809 (Previous year : Rs.22 34 04 285), Customs
 valuation disputes Rs. 15 28 06 226 (Previous year :Rs. 15 28 06 226)
 and others Rs.3 48 16 007 (Previous year : Rs.3 55 80 805).
 
 (iv) In respect of counter guarantees given to bank against guarantees
 given by bank - Rs. 11 99 29 266 (Previous year : Rs.6 86 85 067). At
 the request of the Company, its banks have issued guarantees in the
 event of the Company failing to fulfil its performance obligation under
 various commercial agreements.  The Company has issued counter
 guarantees to the banks in respect of these guarantees.
 
 (v) In respect of other claims - Rs.2 00 31 519 (Previous year : Rs. 1
 53 00 000).
 
 The Company is a party to various legal proceedings in the normal
 course of business. The Company does not expect the outcome of these
 proceedings to have a material adverse effect on the Company''s
 financial conditions, results of operations or cash flows.
 
 (vi) In respect of Demand raised by Delhi Development Authority towards
 interest on belated payment of Unearned Increase in respect of
 leasehold land charges Rs.3 94 57 027 (Previous year : Rs.3 94 57 027).
 
 (b) Estimated amount of contracts remaining to be executed on capital
 account (net of advances) Rs.61 02 977 (Previous year : Rs.5 92 63
 288).
 
 2.  As informed in the last Financial Statements, the Company had filed
 a writ petition in the High Court of Himachal Pradesh at Shimla
 challenging the premature withdrawal of Excise duty exemption for
 packing / repacking activities at its Baddi Manufacturing Facility. The
 High Court has since passed an order in favour of your company and has
 struck down the notification withdrawing the excise exemption. The
 Excise department has preferred an appeal with the Hon''ble Supreme
 Court of India against the said order of the High Court.  The company
 has as a matter of prudence, created a Contingency Reserve of Rs.30 00
 00 000 (Previous year : Rs.21 00 00 000) by way of appropriation of
 profits to the extent of excise duty payable on despatches made from
 the Baddi plant. Accordingly during the current year profit of Rs.9 00
 00 000 (Previous year : Rs.6 00 00 000) have been appropriated. These
 Reserves will be reviewed as and when this litigation is finally
 decided.
 
 3.  Common service expenses paid/recovered include payment/recoveries
 on account of finance, personnel, secretarial, administration and
 planning services rendered under common services agreement of the
 Company with Procter and Gamble Hygiene and Healthcare Limited and
 Procter and Gamble Home Products Limited.
 
 4.  The Company has taken on lease guesthouses for accommodation of
 employees and godowns for storage of inventories, with an option of
 renewal at the end of the lease term and escalation clause in some of
 the cases.  These leases can be terminated with a prior notice as per
 terms and conditions of the respective lease agreements.  Lease
 payments amounting to Rs. 1 48 96 204 (Previous year :Rs. 1 90 69 601)
 have been charged to the Profit and Loss Account for the year. There
 are no ''Non-cancellable'' leases.
 
 30th June 2009. Accordingly, additional commission of Rs.20 00 000 was
 paid during the previous year. Further w.e.f. 1st July 2009, the
 commission of Mr. S. K. Poddar is Rs. 1 00 00 000 per annum.
 
 The commission to Non-Executive Directors of Rs. 1 60 00 000 paid
 during the year is in excess of limits specified in Section 309 (4) of
 the Companies Act, 1956 by Rs.21 40 965. The said excess amount of
 Rs.21 40 965 is considered as an advance held under trust for the
 company by the respective non-executive directors (Refer note 13(b)
 below). The company is seeking the approval of the shareholders and of
 the Central Government to enable the non-executive Directors to retain
 the amounts in excess of the limit of 1%.
 
 II.  Defined Benefit Plans
 
 (a) Gratuity Fund (Funded Scheme): Gratuity is payable to all eligible
 employees of the Company on Superannuation, death, permanent
 disablement or resignation in terms of the provisions of the Payment of
 Gratuity Act or Company''s scheme whichever is more beneficial. Benefits
 would be paid at the time of separation based on the last drawn base
 salary.
 
 (b) Providend Fund (Funded Scheme): 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. The contribution by
 employer and employee together with interest are payable at the time of
 separation from service or retirement whichever is earlier. The benefit
 under this plan vests immediately on rendering of service.
 
 (c) Post Retirement Medical Benefit (PRMB) (Non-funded Scheme): Under
 this scheme, employees get medical benefits subject to certain limits
 of amount, periods after retirement and types of benefits, depending on
 their grade at the time of retirement. Employees separated from the
 Company as part of early separation scheme are also covered under the
 scheme. The liability for post retirement medical scheme is based on an
 independent actuarial valuation.
 
 (d) Compensated absences for Bhiwadi Plant employees (Non-funded
 Scheme): Eligible employees can carry forward and encash leave as per
 Company policy.
 
 (E) Category of Plan Assets
 
 The Company''s Plan Assets in respect of Gratuity, alongwith two other
 group companies, are funded through the group scheme of the Life
 Insurance Corporation of India.
 
 9.  Disclosures under the Micro, Small and Medium Enterprises
 Development Act, 2006:
 
 (a) There were no amounts due and outstanding to suppliers covered
 under the Micro, Small and Medium Enterprises Development Act, 2006 as
 at the end of the current year and previous year on account of
 Principal and Interest.
 
 (b) No interest was paid during the year and in the previous period.
 
 (c) No interest is payable at the end of the current accounting year
 and at the end of the previous period other than interest under Micro,
 Small and Medium Enterprises Development Act, 2006.
 
 (d) No amount of interest was accrued and unpaid at the end of the
 current accounting year and at the end of the previous period.
 
 The above information and that given in Schedule 10 Current
 Liabilities regarding Micro, Small and Medium Enterprises has been
 determined to the extent such parties have been identified on the basis
 of information available with the Company. This has been relied upon by
 the auditors.
 
 (b) Directors Loan/Advances
 
 Loans and advances include
 
 - Housing Loans to the directors amounting to Rs.Nil (Previous year :
 Rs.12 58 132).
 
 The maximum balance outstanding during the year amounted to Rs. 12 58
 132 (Previous year : Rs.23 72 153).
 
 - Advances to non-executive directors'' amounting to Rs.21 40 965
 (Previous year : Rs.Nil)
 
 The maximum balance outstanding during the year amounted to Rs.21 40
 965 (Previous year : Rs. Nil).
 
 14.  Related Party Disclosures:
 
 The Group Companies of The Procter & Gamble Company, USA include, among
 others, Gillette Worldwide Holding LLC; Procter & Gamble India Holding
 BV; Procter & Gamble Iron Horse Holding BV; Procter & Gamble Eastern
 Europe LLC; Procter & Gamble Nordic LLC; Procter & Gamble Global
 Holding Limited; Procter & Gamble Luxembourg Global SARL; Procter &
 Gamble International SARL; Procter & Gamble India Holdings Inc.;
 Procter & Gamble International Operations, SA; Gillette Group (Europe)
 Holdings, BV; Procter & Gamble Canada Holding BV; Procter & Gamble
 Overseas Canada, BV.
 
 (a) Parties where control exists:
 
 The Procter & Gamble Company, USA - Ultimate Holding Company The
 Procter & Gamble India Holdings B.V. - Holding Company
 
 (b) Other related parties with whom transactions have taken place
 during the year
 
 (i) Fellow Subsidiaries:
 
 Wella India Haircosmetics Private Limited (Formerly
 
 known as Gillette Group India Private Limited)
 
 Gillette Diversified Operations Private Limited
 
 Gillette Products Private Limited
 
 Mining Consultants (India) Private Limited
 
 Nexus Mercantile Private Limited
 
 Gillette UK Limited
 
 Procter & Gamble Trading (Thailand) Ltd.
 
 Gillette Shanghai Limited
 
 The Procter & Gamble Distributing LLC
 
 Procter & Gamble International Operations SA SG Branch (Formerly known
 as Procter & Gamble International Operations Pte. Ltd.)
 
 Procter & Gamble Lanka Private Limited 
 
 Procter & Gamble Australia Pty Ltd.
 
 Procter & Gamble Distributing (Philipines) Inc.
 
 Procter & Gamble US Business Services Co.
 
 P&G Ceemea
 
 Procter & Gamble Home Products Limited
 
 Procter & Gamble Hygiene & Healthcare Limited
 
 The Gillette Company, USA
 
 Procter & Gamble International Operations SA
 
 Procter & Gamble DO Brasil SA
 
 P&G Europe S.A., SG Branch (Formerly known as
 
 Procter & Gamble Asia Pte. Ltd.)
 
 P&G Int''L Ops SA-ROHQ (Formerly known as
 
 Procter & Gamble Asia Pte. Ltd. (MROH))
 
 Procter & Gamble Bangladesh Pvt. Ltd.
 
 (ii) Investing company in respect of which the Company is an associate:
 
 # Also being a fellow subsidiary Company
 
 Wella India Haircosmetics Private Limited (Wella)
 
 (Formerly known as Gillette Group India Private Limited (GGIPL)) #
 
 (iii) Key Management Personnel
 
 Mr. Shantanu Khosla Managing Director
 
 Mr. Subhash Bansal (till May 31, 2011) Whole-time Executive Director
 
 All the employees of the Company including its Managing Director are
 given the right to purchase shares of the ultimate holding company -
 The Procter & Gamble Company, USA under its Employees Stock Option
 Plan.
 
 Under the above plan, Mr. Subhash Bansal has been granted the right to
 purchase Nil shares (Previous year : 2600 shares) during the year.
 
 15.  Global Employee Stock Ownership Plan (Stocks of the Parent
 Company)
 
 The Gillette Company, USA (TGC) had a Global Employee Stock Ownership
 Plan (employee share purchase plan) whereby all permanent employees of
 the Company had been given a right to purchase shares of TGC.
 
 Every employee who opted for the scheme contributed up to a specified
 percentage (upto 10%) of his gross salary towards purchase of shares on
 a monthly basis. The Company contributes 50% of employee''s contribution
 (restricted to 1% of gross salary). Such contribution is charged to
 staff cost.
 
 Subsequent to the worldwide merger of Aquarium Acquisition Corporation
 (wholly owned subsidiary of the Procter & Gamble Company, USA) with TGC
 on October 1, 2005, the shares of TGC got delisted from the New York
 Stock Exchange and the share purchase plan has been adopted by the
 Procter & Gamble Company, USA.
 
 The shares of TGC (till 30 September 2005)/The Procter & Gamble
 Company, USA are listed with New York Stock Exchange of USA and are
 purchased on behalf of the employees at market price on the date of
 purchase.
 
 During the year 2 457.29 shares (Previous year : 2 161.60 shares) were
 purchased by employees at weighted average fair value of Rs.2 841.87
 (Previous year : Rs.2 778.56) per share.
 
 The Company''s contribution during the year on such purchase of shares
 amounting to Rs.21 22 809 (Previous year : Rs. 17 93 395) has been
 charged under Payment to and Provisions for employees under Schedule
 14.
 
 16.  Employees Stock Options Plan (Stocks of the Parent Company)
 
 The Gillette Company, USA (TGC) had an Employees Stock Options Scheme
 whereby employees of the Company covered by the plan were granted an
 option to purchase shares of the Ultimate Holding Company i.e. The
 Gillette Company, USA at a fixed price (grant price) for a fixed period
 of time.
 
 Subsequent to the worldwide merger of Aquarium Acquisition Corporation
 (wholly owned subsidiary of the Procter & Gamble Company, USA) with The
 Gillette Company, USA on October 1, 2005, the shares of The Gillette
 Company got delisted from the New York Stock Exchange. Upon this change
 in control the 2005 Gillette Option award got automatically converted
 into P&G options at the established conversion ratio of 0.975 shares in
 the Procter and Gamble Company, USA for every share held in the
 Gillette Company.
 
 The shares of the Gillette Company (till September 30, 2005)/The
 Procter & Gamble Company, USA were/are listed with New York Stock
 Exchange of USA. The options were issued to Key Employees of the
 Company with Exercise price equal to the market price of the underlying
 shares on the date of the grant. The Grants issued are vested after 3
 years/5 years and have a 10 years life cycle.
 
 Stock compensation expenses of Rs.6 63 55 981 (Previous year : Rs.66 56
 778) has been charged under Payment to and Provisions for employees
 under Schedule 14.
 
 18.  Excise duty deducted from turnover represents amount of excise
 duty collected by the company on sale of goods.  Excise duty shown
 under Schedule 15 - operating and other expenses represents difference
 in amount of excise duty on closing stock and opening stock of finished
 goods.
 
 19.  Salaries, wages and bonus under Schedule 15 includes Rs.Nil
 (Previous year : Rs.1 32 58 358) for expenditure on Voluntary
 Retirement Scheme.
 
 20.  Professional fees in Schedule 15 (Operating and other expenses)
 includes an amount of Rs. 1 10 300 (Previous year: Rs.1 10 300) on
 account of fees to Cost Auditors.
 
 21.  No borrowing costs have been capitalised during the year.
 
 22.  Previous year''s figures have been rearranged/regrouped wherever
 necessary.