(a) Basis of preparation of financial statements
 
 The financial statements are prepared in accordance with Indian
 Generally Accepted Accounting Principles (GAAP) under the historical
 cost convention on an accrual basis, except for certain financial
 instruments which are measured at fair values and are in conformity
 with mandatory accounting standards, as prescribed by the Companies
 (Accounting Standards) Rules, 2006, the provisions of the Companies
 Act, 1956 and guidelines issued by the Securities and Exchange Board of
 India (SEBI).
 
 (b) Use of estimates
 
 The preparation of the financial statements in conformity with GAAP
 requires Management to make estimates and assumptions that affect the
 reported balances of assets and liabilities and disclosures relating to
 contingent assets and liabilities as at the date of the financial
 statements and reported amounts of income and expenses during the
 period.  Examples of such estimates include provisions for doubtful
 debts, future obligations under employee retirement benefit plans,
 income taxes, the useful lives and provision for impairment of fixed
 assets and intangible assets.
 
 Management believes that the estimates used in the preparation of
 financial statements are prudent and reasonable.  Future results could
 differ from these estimates.
 
 (c) Fixed assets, intangible assets and capital work-in-progress
 
 Fixed assets and intangible assets are stated at cost of acquisition,
 less accumulated depreciation and impairments, if any. Cost includes
 taxes, duties, freight and other incidental expenses related to
 acquisition and installation. Borrowing costs attributable to
 acquisition, construction of qualifying asset (i.e. an asset requiring
 substantive period of time to get ready for intended use) are
 capitalized in accordance with the requirements of Accounting Standard
 16 (AS 16), Borrowing Costs mandated by Rule 3 of the Companies
 (Accounting Standards) Rules 2006. Other pre-operative expenses for
 major projects are also capitalised, where appropriate.
 
 Capital work-in-progress comprises outstanding advances paid to acquire
 fixed assets and cost of fixed assets that are not yet ready for their
 intended use at the year end.
 
 (d) Depreciation and amortisation
 
 I.  Tangible assets
 
 (i) Depreciation is provided at higher of the rates based on useful
 lives of the assets as estimated by the management or those stipulated
 in Schedule XIV to the Companies Act, 1956. The depreciation rates
 considered for the following items are higher than the rates stipulated
 in Schedule XIV to the Companies Act, 1956:
 
 Plant and Machinery:
 
 a) Computer hardware and related peripherals      - 33.33%
 
 b) Moulds                                         - 16.21%
 
 c) Office Equipment                               - 10% to 50% 
 
 Furniture and Fittings:                           - 12.50 %
 
 Vehicles:                                         - 20 %
 
 (ii) Depreciation on factory building and plant and machinery (other
 than items specified in (i) above) is provided on written down value
 basis. Depreciation on all other assets is provided on straight line
 basis.
 
 (iii) Extra shift depreciation is provided on Plant basis.
 
 (iv) Assets individually costing Rs. 5,000 or less are depreciated
 fully in the year of acquisition.
 
 (v) Leasehold land is amortised over the primary period of the lease.
 
 (vi) Fixtures in leasehold premises are amortised over the primary
 period of the lease.
 
 (vii) Depreciation on additions / deletions during the year is provided
 from the month in which the asset is capitalized / up to the month in
 which the asset is disposed off.
 
 II.  Intangible assets
 
 Intangible assets are amortised over their respective individual
 estimated useful lives on a straight line basis, but not exceeding the
 period given here under:
 
 Trademarks, copyrights and business & commercial rights 10 years
 
 Computer software                                        3 years
 
 (e) Assets taken on lease
 
 (i) In respect of finance lease arrangements, the assets are
 capitalized and depreciated. Finance charges are charged off to the
 Profit and Loss account of the year in which they are incurred.
 
 (ii) Operating lease payments are recognized as expenditure in the
 Profit and Loss account as per the terms of the respective lease
 agreement.
 
 (f) Asset given on lease
 
 The Company has given Plant and Machinery on an operating lease basis.
 Lease rentals are accounted on accrual basis in accordance with the
 respective lease agreements.
 
 (g) Investments
 
 (i) Long term investments are valued at cost. Provision for diminution,
 if any, in the value of investments is made to recognise a decline in
 value, other than temporary.
 
 (ii) Current investments are valued at lower of cost and fair value,
 computed individually for each investment. In case of investments in
 mutual funds which are unquoted, net asset value is taken as fair
 value.
 
 (h) Inventories
 
 (i) Raw materials, packing materials, stores, spares and consumables
 are valued at lower of cost and net realizable value. However, these
 items are considered to be realizable at cost if the finished products
 in which they will be used are expected to be sold at or above cost.
 
 (ii) Work-in-process and finished products are valued at lower of cost
 and net realizable value.
 
 (iii) By-products and unserviceable / damaged finished products are
 valued at net realizable value.
 
 (iv) Cost is ascertained on weighted average method and in case of
 work-in-process includes appropriate production overheads and in case
 of finished products includes appropriate production overheads and
 excise duty, wherever applicable.
 
 (i) Research and development
 
 Capital expenditure on research and development is capitalised and
 depreciated as per the accounting policy mentioned in para 2(d) above.
 Revenue expenditure is charged off in the year in which it is incurred.
 
 (j) Revenue recognition
 
 (i) Domestic sales are recognised at the point of dispatch of goods to
 the customers, which is when risks and rewards of ownership are passed
 to the customers, and stated net of trade discount and exclusive of
 sales tax and excise duty.
 
 (ii) Export sales are recognised based on the date of bill of lading
 except, sales to Nepal which are recognized when the goods cross the
 Indian territory, which is when risks and rewards of ownership are
 passed to the customers.
 
 (iii) Revenue from services is recognized on rendering of the services.
 
 (iv) Interest and other income are recognised on accrual basis.
 
 (k) Retirement and other benefits to employees
 
 - Gratuity
 
 Liabilities with regard to the gratuity benefits payable in future are
 determined by actuarial valuation at each Balance Sheet date using the
 Projected Unit Credit method and contributed to Employees Gratuity Fund
 managed by HDFC Standard Life Insurance Limited. Actuarial gains and
 losses arising from changes in actuarial assumptions are recognised in
 the Profit and Loss account in the period in which they arise.
 
 - Superannuation
 
 The Company makes contribution to the Superannuation Scheme, a defined
 contribution scheme, administered by ICICI Prudential Life Insurance
 Company Limited.
 
 - Leave encashment / Compensated absences
 
 The Company provides for the encashment of leave with pay subject to
 certain rules. The employees are entitled to accumulate leave subject
 to certain limits, for future encashment / availment. The liability is
 provided based on the number of days of unutilized leave at each
 balance sheet date on the basis of an independent actuarial valuation.
 
 - Provident fund
 
 Provident fund contributions are made to a trust administered by the
 Company and are charged to the Profit and Loss account. The Company has
 an obligation to make good the shortfall if any, between return on
 investment by the trust and government administered interest rate.
 
 - Long term service benefits
 
 Liability on account of long term service benefits is determined and
 provided on the basis of an independent actuarial valuation.
 
 (l) Foreign currency transactions
 
 - Transactions in foreign currencies are recognized at the prevailing
 exchange rates on the transaction dates. Realized gains and losses on
 settlement of foreign currency transactions are recognized in the
 Profit and Loss account.
 
 - Foreign currency monetary assets and liabilities at the year end are
 translated at the year end exchange rates and the resultant exchange
 differences except those qualifying for hedge accounting are recognised
 in the Profit and Loss account.
 
 - In case of forward contracts with underlying assets or liabilities,
 the difference between the forward rate and the exchange rate on the
 date of inception of a forward contract is recognized as income or
 expense and is amortized over the life of the contract. Exchange
 differences on such contracts are recognized in the Profit and Loss
 account in the year in which they arise.
 
 - The Company uses forward and options contracts to hedge its risks
 associated with foreign currency transactions relating to certain firm
 commitments and forecasted transactions. The Company also uses Interest
 rates swap contracts to hedge its interest rate risk exposure. The
 Company designates these as cash flow hedges. These contracts are
 marked to market as at the year end and resultant exchange differences,
 to the extent they represent effective portion of the hedge, are
 recognized directly in ‘Hedge Reserve account. The ineffective portion
 of the same is recognized immediately in the Profit and Loss account.
 
 - Exchange differences taken to Hedge Reserve account are recognised in
 the Profit and Loss account upon crystallization of firm commitments or
 occurrence of forecasted transactions or upon discontinuation of hedge
 accounting resulting from expiry / sale / termination of hedge
 instrument or upon hedge becoming ineffective.
 
 - Non-monetary foreign currency items are carried at cost / fair value
 and accordingly the investments in shares of foreign subsidiaries are
 expressed in Indian currency at the rate of exchange prevailing at the
 time when the original investments are made or fair values determined.
 
 - Exchange differences arising on monetary items that in substance form
 part of Companys net investment in a non-integral foreign operation
 are accumulated in a ‘Foreign Currency Translation Reserve until the
 disposal of the net investment. The same is recognized in the Profit
 and Loss account upon disposal of the net investment.
 
 (m) Accounting for taxes on income
 
 (i) Provision for current tax is made, based on the tax payable under
 the Income Ta x Act, 1961. Minimum Alternative Ta x (MAT) credit, which
 is equal to the excess of MAT (calculated in accordance with provisions
 of section 115JB of the Income tax Act, 1961) over normal income-tax is
 recognized as an asset by crediting the Profit and Loss account only
 when and to the extent there is convincing evidence that the Company
 will be able to avail the said credit against normal tax payable during
 the period of ten succeeding assessment years.
 
 (ii) Deferred tax on timing differences between taxable income and
 accounting income is accounted for, using the tax rates and the tax
 laws enacted or substantially enacted as on the balance sheet date.
 Deferred tax assets on unabsorbed tax losses and unabsorbed tax
 depreciation are recognised only when there is a virtual certainty of
 their realisation. Other deferred tax assets are recognised only when
 there is a reasonable certainty of their realisation.
 
 (n) Impairment
 
 The Company reviews the carrying values of tangible and intangible
 assets for any possible impairment at each balance sheet date. An
 impairment loss is recognised when the carrying amount of an asset
 exceeds its recoverable amount.  The recoverable amount is the greater
 of net selling price and value in use. In assessing the value in use,
 the estimated future cash flows are discounted to their present value
 at appropriate discount rates. 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.
 
 (o) Employee Stock Option Plan
 
 In respect of stock options granted pursuant to the Companys Employee
 Stock Option Scheme, the intrinsic value of the options (excess of
 market value of shares over the exercise price of the option at the
 date of grant) is recognised as Employee compensation cost over the
 vesting period.
 
 (p) Employee Stock Appreciation Rights Scheme
 
 In respect of Employee Stock appreciation rights granted pursuant to
 the Companys Employee Stock Appreciation Rights Scheme, the intrinsic
 value of the rights (excess of market value as at the year end and the
 market price on the date of grant) is recognised as Employee
 compensation cost over the vesting period.
 
 (q) Contingent liabilities
 
 Contingent Liabilities are disclosed in respect of possible obligations
 that arise from past events but their existence will be confirmed by
 the occurrence or non occurrence of one or more uncertain future events
 not wholly within the control of the Company or where any present
 obligation cannot be measured in terms of future outflow of resources
 or where a reliable estimate of the obligation cannot be made. A
 Provision is made based on a reliable estimate when it is probable that
 an outflow of resources embodying economic benefits will be required to
 settle an obligation and in respect of which a reliable estimate can be
 made. Provision is not discounted and is determined based on best
 estimate required to settle the obligation at the year end date.
 Contingent Assets are not recognized or disclosed in the financial
 statements.
 
 (r) Share issue expenses
 
 Expenses incurred on issues of shares are adjusted against securities
 premium.