1.  Basis of Preparation of Accounts
 
 The Hon''ble Gujarat High Court has approved, as on 24 January 2011, a
 Scheme of Arrangement containing demerger of ‘pharmaceutical
 undertaking'' into wholly owned subsidiary company viz. Alembic
 Pharmaceuticals Limited – the resulting company, which ceased to be a
 subsidiary consequent to the allotment of further shares as per the
 said Scheme on 15th April 2011, and is now an associate of Alembic
 Limited.
 
 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 above. Accordingly,
 these financial statements 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 pertaining to the said
 Pharmaceutical undertaking have been extracted from the books of
 account and records maintained by Alembic Limited jointly with its
 Vadodara undertaking i.e. Demerged 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.
 
                                            (Rs. in Lacs)
 
 As at 31st March,                                   2011
 
 4. Contingent liablities not provided for:
 
 i. Letter of credit, Guarantees and             8,396.96
 counter guarantees
 
 ii. Liabilities Disputed in appeals
 
     - Excise duty                                641.03
 
     - Sales Tax                                1,112.31
 
 iii. Claims against the company not
 acknowledged as debt                              48.10
 
 iv. Non fulfilment of export obligation
 against advance licence                           65.53
 
 v. Disputed liability in respect of Ministry
 of Industry, Department of Chemicals and
 Petrochemicals in respect of price of
 Rifampicin allowed in formultaions and 
 landed cost of import.                            34.93
 
 
 5. Investment in Incozen Therapeutics Private Limited, a Company
 incorporated in India and engaged in development activities in area of
 ‘drug discovery and clinical development''. Company has invested Rs 3
 Crore as the seed round of funding of which Rs 1 Crore is towards
 capital and Rs 2 Crore towards share premium amount.
 
 7.  Provsion for Current Tax includes Provision for Wealth Tax of Rs.
 0.52 Lacs
 
 9.  a.  The Company enters into Currency Swaps to hedge against
 fluctuation in changes in exchange rate and interest rates as on 31st
 March 2011
 
 No. of Contracts                                1
 
 Notional Prinicpal (1 Contract)      USD        1.67 Million
 
 12.  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.
 
 13.  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: Alembic Limited was holding 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 by Alembic
 Pharmaceuticals Limited, Alembic Limited ceased to be the holding
 Company.
 
 b.  Subsidiary and Fellow Subsidiary: There is one Subsidiary Company
 called Alembic Global Holding SA.
 
 c.  Associate Companies:
 
 1.  Alembic Ltd.
 
 2.  Sierra Healthcare Ltd.
 
 3.  Nirayu Pvt. Ltd.
 
 4.  Quick Flight Ltd.
 
 5.  Shreno Ltd.
 
 6.  Paushak Ltd.
 
 7.  Alembic Export Ltd.
 
 8.  Viramya Packlight Ltd
 
 9.  Incozen Therapeutics Pvt. Ltd.
 
 10.  Rhizen Pharmaceuticals
 
 11.  Sierra Investments Ltd.
 
 12.  Whitefield Chemtech Pvt. Ltd.
 
 d.  Key Management personnel
 
 1.  Shri C .R. Amin       Chairman and Managing Director
   
 2.  Shri R. K. Baheti     Director- Finance & Company Secretary
 
 3.  Shri Pranav Amin      Director, President-International Business
 
 4.  Shri Shaunak Amin     President - Formulations
 
 5.  Shri Udit Amin        Chief Business Development Officer 
 
 e.  Relatives of Key Management Personnel :
 
 1.  Smt. Malika Amin
 
 2.  Ms. Yera Amin
 
 3.  Ms. Jyoti Patel
 
 4.  Ms. Ninochaka Kothari
 
 5.  Ms. Shreya Mukherjee
 
 6.  Mrs. Barkha P Amin
 
 7.  Mrs. Krupa S. Amin
 
 8.  Mrs.Tishya U. Amin
 
 9.  Ms. Samira Amin
 
 10.  Master Ranvir Amin
 
 11.  Ms. Nayantara Amin
 
 12.  Ms. Santosh Baheti
 
 13.  Mr. Saurabh Baheti
 
 18.  Since this is the first year of Company''s operation, the previous
 year''s figures have not been given.