1. Basis of Preparation of Accounts
 
 The ''Pharmaceutical undertaking'' of Alembic Limited got demerged and
 transferred to Alembic Pharmaceuticals Limited with effect from
 01.04.2010 (the appointed date) in pursuance to the Scheme of
 Arrangement as approved by the Hon''ble Gujarat High Court. Accordingly
 these financial statements do not include the Financial Statement of
 the said ''Pharmaceutical undertaking'' of Alembic Limited for the period
 from 01-04-2010 to 31-03-2011.
 
 Further, these Financial Statements have been extracted from the books
 of account and records maintained by Alembic Limited jointly with its
 Pharmaceutical undertaking i.e. Resulting Company in the SAP ERP
 system. This extraction and compliation is as envisaged by the scheme
 and on the basis of various allocation made as under:
 
 Profit and Loss Account
 
 i) All the direct and specifically identifiable revenue and expense
 items such as Sales, Material Consumption, Manufacturing Cost, Employee
 Cost, Research and Development Expenses etc. have been taken at actual
 based on SAP profit center/cost center data.
 
 ii) All Corporate Overheads (not restricted to or pertaining to any
 specific business) have been allocated on total turnover ratio.
 
 iii) All API marketing expenses have been allocated on API turnover
 ratio except freight charges and foreign travel expenses which have
 been allocated on API export turnover ratio.
 
 iv) Interest Expense / Income identifiable have been allocated at
 actual and common interest cost was allocated as under
 
 a) Interest on short term loan has been allocated based on asset ratio
 
 b) Interest on PCFC has been allocated based on total export turnover
 ratio
 
 Balance Sheet
 
 i) All direct and specifically identifiable assets such as Fixed
 Assets, Investments, Current Assets, Debtors, Inventories and others
 have been considered at actual as per SAP records.
 
 ii) Common Secured & Unsecured loans were allocated on the basis of
 Asset taken over ratio. Within the total allocated amount, Fixed
 Deposits and Commercial Papers were allocated to Resulting Company as
 the same are to be serviced by Resulting Company and the balancing
 figures were retained for short term loans.
 
 iii) Bank Account for dividend warrant considered for Demerged Company,
 rest have been allocated based on Asset Ratio. FD pledged with Banks
 has been considered for Resulting Company.
 
 iv) Loans & Advances
 
 a) Advance Tax and Provision for Taxation up to 31st March, 2010 was
 retained in Demerged Company as per the Scheme. Current year advance
 tax and provision was identified based on taxable income and therefore
 was allocated to Resulting Company.
 
 b) TDS receivable of the current year was identified and allocated to
 companies where the relevant income was booked.
 
 c) Inter company deposits given were considered for Resulting Company
 only.
 
 v) Current liabilities which were identifiable have been considered at
 actual as per SAP records. Others have been taken in rationally
 allocated manner.
 
 vi) All direct and specific identifiable Reserves have been considered
 at Actual and others as per Scheme of arrangement.
 
 2. The Company has converted a part of the land as stock in trade with a
 view to exploit it as a part of its Real Estate business.  The
 conversion has been done at a fair market value of Rs. 3,109.64 lacs
 for the land based on report from approved valuers. The revaluation
 surplus has been credited to the revaluation reserve.
 
 3. As per Scheme of Arrangement duly approved by the Honourable High
 Court of Gujarat, as on the appointed date i.e.1.4.2010, the Company
 has revalued assets of its Vadodara undertaking and the net increase in
 net book value of the assets including out of the revaluation of Land
 appurtenant thereto has firstly been credited to ‘Revaluation Reserve’
 and thereafter has been renamed as ‘Business Restructuring Reserve’ and
 such Reserve shall be available to meet the costs, expenses and
 losses,including on account of impairment of or write down of assets of
 the Vadodara undertaking which may be suffered by the Company pursuant
 to this Scheme or otherwise in course of its business or in carrying
 out such re-organization of Vadodara undertaking or any of its
 subsidiaries as the Company considers necessary or appropriate.  Such
 Reserve shall be arising out of the Scheme and shall not be considered
 as a reserve created by the Company.
 
 The said accounting treatment of crediting the net increase in the net
 book value of the assets to the Revaluation Reserve has been as
 approved in the Scheme but it is different from the one that is
 prescribed under Accounting Standard 10 i.e.  “Accounting of Fixed
 Assets”.As prescribed in AS-10, the downward revaluation has to be
 charged off to Profit and Loss Account and the upward revaluation has
 to be credited to Revaluation Reserve.
 
 The above treatment has resulted in to a lower charges of Rs. 52.75
 Crores to the Profit and Loss Account and the Revaluation Reserve /
 Business Restructuring Reserve is shown lower by a like amount.
 
 Depreciation, hereafter will be charged on the revalued amount of the
 assets.
 
 4. In pursuance of Honourable Gujarat High Court’s Order, the
 Pharmaceutical Undertaking of the Company is demerged and transferred
 to Alembic Pharmaceuticals Limited w.e.f. appointed date 1st April
 2010. Accordingly, above results do not include results of said
 pharmaceutical undertaking. As a result of such transfer of business,
 current year’s figures are not comparable with the previous year.
 
 5. Alembic Pharmaceuticals Limited (APL) was wholly owned subsidiary of
 the Company as on 31/3/2011. Consequent upon allotment of 13,35,15,914
 equity shares of Rs.2/- each to the shareholders of Alembic Limited on
 15/4/2011, as per the Scheme of Arrangement, the shareholding of the
 Company in APL has reduced from 100% to 29.18%. Since the Scheme of
 Arrangement is effective from the appointed date i.e. 01/04/2010
 pursuant to the order of the Hon’ble High Court, the results of APL
 have not been consolidated with the Company’s results.
 
                                                       (Rs in Lacs)
 
 As at 31st March,                                  2011       2010
 
 6 Estimated amount of contracts remaining 
 to be executed on capital
 accounts                                          69.06     953.08
 
 8 Contingent liabilities not provided for.
 
 i Wage revision and reinstatement of emplo
 yees and other demands                          Unascer    Unascer
                                                  tained     tained
 
 ii Letter of credit, Guarantees and counte
 r guarantees                                     329.98   4,412.35
 
 iii Liabilities Disputed in appeals
 
 - Excise duty                                    385.25   1,015.22
 
 - Sales Tax                                      242.21     446.14 
 
 iv Claims against the company not acknowleged
    as debt                                         3.00     114.10 
 
 v Disputed liability in respect of Ministry of
   Industry, Department of                             -      34.93
   Chemicals and Petrochemicals in respect of 
   price of Rifampicin allowed in formulations 
   and landed cost of import.  
 
 vi Income tax                                    669.20     757.22
 
 vii Non fulfilment of export obligation again
 st advance licence                               104.26     250.95
 
 viii Contingent liability in respect of US$ 
 2 million being receipts against                      -     898.40
 transfer of IP rights of a product developed 
 by Company pending relevant approvals from the 
 USFDA
 
 
 7. Segment Reporting
 
 Primary Segment
 
 The Company has identified “Pharmaceuticals” as the only primary
 reportable segment.
 
 In view of the inter-woven/inter-mixed nature of business and
 manufacturing facility, other secondary segmental information is not
 ascertainable.
 
 8 Disclosures in respect of Related Parties pursuant to Accounting
 standard - AS 18 - issued by the Institute of Chartered Accountants of
 India are as follows.
 
 List of Related Parties with whom the Company has entered into
 transactions during the year.
 
 (a) Controlling Companies: There is no controlling Company
 
 (b) Subsidiary and Fellow Subsidiary: Alembic Pharmaceuticals Limited
 was a subsidiary of the Company as on 31st March, 2011 and consequent
 to the allotment of further shares as per the approved Scheme of
 Arrangement on 15th April, 2011, it ceased to be the subsidiary of the
 Company
 
 (c) Associate Companies :
  
 1 Alembic Pharmaceuticals Ltd.  6  Paushak Ltd.  
 
 2 Sierra Healthcare Ltd.        7  Alembic Export Ltd.  
 
 3 Nirayu Pvt. Ltd.              8  Viramya Packlight Ltd
 
 4 Quick Flight Ltd.             9  Incozen Therapeutics Pvt. Ltd.
 
 5 Shreno Ltd.                   10 Rhizen Pharmaceuticals
 
                                 11 Sierra Investments Ltd.      
 
                                 12 Whitefield Chemtech Pvt. Ltd.
 
 
 
 (d) Key Management personnel :
 
 1 Shri C .R. Amin     Chairman
 
 2 Smt M.C. Amin       Whole-time Director
 
 3 Shri Sanjay Bhatt   Director & Company Secretary
 
 
 (e) Relatives of Key Management Personnel :
 
 1 Shri Pranav Amin    6  Ms.Ninochaka Kothari
 
 2 Shri Shaunak Amin   7  Ms. Shreya Mukherjee
 
 3 Shri Udit Amin      8  Mrs. Rajashri Bhatt
 
 4 Ms. Yera Amin       9  Mr. Bhargav Bhatt
 
 5 Ms. Jyoti Patel     10 Mr. Pranav Bhatt
 
 9 Figure shown in brackets are corresponding figure of previous year.
 
 10 Previous Year’s figures have been regrouped/re-arranged wherever
 necessary.