i) Basis of Accounting
 
 The financial statements have been prepared under the historical cost
 convention in accordance with generally accepted accounting principles
 in India, the accounting standards notified under the Companies
 Accounting Standards Rules, 2006 and the provisions of the Companies
 Act, 1956, as adopted consistently by the Company.
 
 The Company follows the mercantile system of accounting and recognises
 items of income and expenditure on accrual basis.  
 
 ii) Use of Estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make 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 for the years presented. Actual results could differ from
 those estimates.
 
 iii) Revenue Recognition
 
 Revenue from sale of goods to domestic customers is recognised on
 dispatch of goods from the factory and upon the passage of significant
 risks and rewards of ownership of the goods to the customers, which
 generally coincides with their delivery. Revenue from sale of goods to
 overseas customers is recognised on the goods being shipped on board.
 Sales are recorded at invoice value, net of sales tax and sales
 returns, but including excise duty.
 
 Revenue from export incentives is recognised on an accrual basis and
 coincides with recognition of revenue from sale of goods to overseas
 customers.
 
 Revenue from interest on bank deposits is recognised on the time
 proportion method taking into consideration the amount outstanding and
 the applicable interest rates.
 
 iv) Fixed Assets
 
 Fixed assets including intangible assets comprising Technical Know-how
 are stated at cost, less accumulated depreciation. Cost includes
 original cost of acquisition, including incidental expenses related to
 such acquisition and installation.
 
 Machinery spares that are used in connection to a specific fixed asset
 and whose use is irregular are capitalised along with the respective
 fixed asset.
 
 v) Depreciation
 
 Depreciation on all fixed assets (except as noted below) is provided on
 the straight line method over the estimated useful life of the assets
 at rates specified in Schedule XIV to the Companies Act, 1956.
 
 Leasehold land & Leasehold Improvements are amortised over the period
 of the lease.
 
 Depreciation on addition to fixed assets is provided on pro-rata basis
 from the date the assets are ace Depreciation on sale/deduction from
 fixed assets is provided for upto the date of sale, deduction,
 discardrr the case may be.
 
 All assets costing Rs.5,000 or below are depreciated in full by way of
 a one-time depreciation charge.
 
 vi) Impairment of Assets
 
 Whenever events indicate that assets may be impaired, the assets are
 subject to a test of recoverability ba: estimates of future cash flows
 arising from continuing use of such assets and from its ultimate
 disposal. A pro for impairment loss is recognised where it is probable
 that the carrying value of an asset exceeds the amoun recovered through
 use or sale of the asset.
 
 vii) Excise Duty
 
 Excise duty payable on finished goods is accounted for upon manufacture
 and transfer of finished goods to Payment of excise duty is deferred
 till clearance of goods from the factory premises.
 
 viii) Inventories
 
 Inventories are valued at lower of cost and net realisable value. Cost
 includes all expenses incurred in bringi goods to their present
 location and condition. Goods in transit are valued at cost excluding
 import dutie basis for determination of cost of various categories of
 inventory is as follows:
 
 Raw materials, stores & spares : Weighted Average Method
 
 Components for sales and service of finished goods : Weighted Average
 Method
 
 Finished goods Trade : Weighted Average Method
 
 Manufactured
 
 Material cost plus direct labour and an appropriate share of
 manufacturing overheads, wherever applicable
 
 Work in progress
 
 Material cost plus direct labour and an appropriate share of
 manufacturing overheads, wherever applicable
 
 A provision for obsolescence on finished goods that are
 obsolete/dormant is accrued at their book value and on components it is
 accrued at 33.33% of their carrying value. The recoverability of all
 other inventories is periodically reviewed and an impairment loss is
 recognised for the difference between estimated fair value and carrying
 value.
 
 ix) Foreign Currency Transactions
 
 Transactions denominated in foreign currencies are recorded at the
 monthly average rates.
 
 Monetary items denominated in foreign currencies at the year-end are
 translated at the exchange rates prevailing on the date of the Balance
 Sheet. Non-monetary items denominated in foreign currencies are carried
 at cost.
 
 Any income or expense on account of exchange difference either on
 settlement or on translation is recognised in the Profit and Loss
 Account.
 
 In respect of forward exchange contracts, the exchange difference
 between the forward rate and the exchange rate at the inception of a
 forward contract is recognised as income or expense over the life of
 the contract. Any income or expense on account of exchange differences
 either on settlement of the contract or on translation of the unmatured
 contract at the exchange rate prevailing on the date of the Balance
 Sheet date is recognised in the Profit and Loss Account.
 
 x) Warranty
 
 Contractual obligations in respect of warranties and free replacements
 of frames and sunglasses are accrued at the rate of 1 % of cost of
 sales to cover future costs.
 
 xi) Customs Duty
 
 Customs duty (including countervailing duty) payable on stocks and
 equipments lying with customs or in bonded warehouses and in transit
 is accounted for on clearance of the goods.
 
 xii) Retirement Benefits
 
 In accordance with the provisions of the Employees Provident Funds and
 Miscellaneous Provisions Act, 1952, eligible employees of the Company
 are entitled to receive benefits with respect to provident fund, a
 defined contribution plan in which both the Company and the employee
 contribute monthly at a determined rate (currently 12% of employees
 basic salary). Companys contribution to Provident Fund is charged to
 the Profit & Loss Account.
 
 Benefits payable to eligible employees of the Company with respect to
 gratuity, a defined benefit plan is accounted for on the basis of an
 actuarial valuation as at the balance sheet date. In accordance with
 the Payment of Gratuity Act, 1972, the plan provides for lump sum
 payments to vested employees on retirement, death while in service or
 on termination of employment in an amount equivalent to 15 days basic
 salary for each completed year of service.  Vesting occurs upon
 completion of five years of service. The present value of such
 obligation is determined by the projected unit credit method and
 adjusted for past service cost and fair value of plan assets as at the
 balance sheet date through which the obligations are to be settled. The
 resultant actuarial gain or loss on change in present value of the
 defined benefit obligation or change in return of the plan assets is
 recognised as an income or expense in the Profit and Loss Account. The
 expected return on plan assets is based on the assumed rate of return
 of such assets.
 
 Benefits payable to eligible employees of the Company under the
 superannuation plan, a defined contribution plan is accounted for on
 the basis of premium paid to the trust RayBan Sun Optics India Limited
 Managerial Superannuation Scheme which pays to Life Insurance
 Corporation of India calculated on the basis of a specified percentage
 of salary paid to the employees.
 
 Leave encashment benefits payable to employees while in service, on
 retirement, death while in service or on termination of employment with
 respect to accumulated leaves outstanding at the year end are accounted
 for on the basis of an actuarial valuation as at the balance sheet
 date.
 
 xiii) Earnings per Share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the year attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the year.
 
 For calculating diluted earnings per share, the net profit or loss for
 the year attributable to equity shareholders and the weighted average
 number of shares outstanding during the year are adjusted for the
 effects of all dilutive potential equity shares.
 
 xiv) Income Taxes
 
 Income taxes consist of current taxes and changes in deferred tax
 liabilities and assets.
 
 Income taxes are accounted for on the basis of estimated taxes payable
 and adjusted for timing differences between the taxable income and
 accounting income as reported in the financial statements. Timing
 differences between the taxable income and the accounting income as at
 December 31, 2009 that reverse in one or more subsequent years are
 recognised if they result in taxable amounts. Deferred tax assets or
 liabilities are established at the enacted tax rates. Changes in the
 enacted rates are recognised in the period of enactment.
 
 Deferred tax assets are recognised only if there is a reasonable
 certainty that they will be realised and are reviewed for the
 appropriateness of their respective carrying values at each balance
 sheet date.
 
 xv) Provision for Doubtful Debts
 
 A provision for doubtful debts is accrued in case of trade receivables
 at the rate of 10% on the total outstanding balances that are overdue
 in excess of 90 days and are greater than or equal to 25% of their
 total outstanding balances, (classified as Customers under control).
 
 A provision for doubtful debts is accrued at the rate of 100% on the
 outstanding balance of trade receivables which continue under the above
 category for three months and with whom the Company has not reached any
 arrangement for payment of overdue amounts.
 
 xvi) Leases
 
 Lease rentals in respect of assets that are in the nature of operating
 leases are expensed with reference to lease terms.
 
 xvii) Provisions and contingencies
 
 The Company creates a provision when there is present obligation as a
 result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of the obligation. A
 disclosure for a contingent liability is made when there is possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources. When there is a possible obligation or
 a present obligation in respect of which the likelihood of outflow of
 resources is remote, no provision or disclosure is made.
 
 Provisions are reviewed at each balance sheet date and adjusted to
 reflect the current best estimate. If it is no longer probable that the
 outflow of resources would be required to settle the obligation, the
 provision is reversed.
 
 Contingent assets are not recognised in the financial statements.
 However, contingent assets are assessed continually and if it is
 virtually certain that an economic benefit will arise, the asset and
 the related income are recognized in the period in which the change
 occurs.
 
 xviii) Material Events
 
 Material events occurring after the Balance Sheet date are taken into
 cognizance.