1.  SEGMENT REPORTING
 
 a. Company''s operations are predominantly related to the manufacture of
 bulk drugs intermediates, as such there is only one primary reportable
 segment. Secondary reportable segments are identified taking into
 account the geographical markets available to the products, the
 differing risks, returns and internal reporting system.
 
 2.  Related Party Transactions
 
 Disclosures as required by the Accounting Standard -18 are given below:
 
 a.  Name of the related parties and descriptions of relationships
 
     Name                          Nature of relationship
 
     M/s. Sambasiva Transport      Associate
 
 b.  Key Managerial Personnel
 
 Mr. K. Hari Babu, Managing Director
 
 Mr. M.S.S.V. Satyanarayana, Wholetime Director
 
 3.  Employee Benefits
 
 a.  Defined Contribution Plan
 
 The Company''s Employee''s Provident Fund administered through Government
 Provident Fund, Employees State Insurance Scheme and labor Welfare Fund
 are considered as Defined Contribution Plans. The Company''s
 contributions paid/payable towards these defined contributions plan are
 recognized as expense in the Profit ''and Loss Account during the period
 in which the employee renders the related service. The provident fund
 scheme additionally requires the company to guarantee payment of
 interest at rates notified by the central government from time to time.
 
 The Company has recognized Rs.6.53 million (Previous year: Rs.3.39
 million) for provident fund contributions & ESI Contributions in the
 Profit and Loss Account. The contributions payable to these plans by
 the Company are at rates specified in the rules of the schemes.
 
 b.  Defined Benefit Plan
 
 Company''s liabilities towards gratuity, long term compensated absences
 are considered as Defined Benefit Plans.  The present value of the
 obligations under such Defined Benefit Plans are determined based on
 actuarial valuation using the projected unit credit method, which
 recognizes each period of service as giving rise to an additional unit
 of employee benefit entitlement and measures each unit separately to
 build up the final obligation. Actuarial gains and losses are
 recognized immediately in the statement of profit and loss. The
 obligation is measured at the present value of estimated future cash
 flows using a discount rate that is determined by reference to market
 yields at the Balance Sheet date on government securities.
 
 4.  Disclosure Required by Micro, Small and Medium Enterprises
 (Development) Act, 2006
 
 In the absence of necessary information relating to the suppliers
 registered as micro or small enterprises under the Micro, Small and
 Medium Enterprises (Development) Act, 2006 the Company has not been
 able to identify such suppliers and the information required under the
 said Act could not be compiled and disclosed.
 
 5. Contingent Liabilities not provided for
 
                                                      Rs. Million
                                  March 31, 2011   March 31, 2010
 
 a. Unexpired bank guarantees             413.99           105.75
  & Letters of Credit 
 
 b. Demands of statutory 
 authorities disputed by the 
 Company in appeals with higher 
 authorities in respect of
 
 i. Disputed Income Tax A.Y. 2004-05           –             0.27
 
 ii. Disputed Sales Tax demands 
     A.Y. 2001-02                           1.00             1.00
 
     A.Y. 2003-04                           0.68             0.67
 
     A.Y. 2004-05                           1.83             1.83
 
     A.Y. 2005-06                           2.21             2.21
 
 c. Other legal claims
 M/s. Sun Moon Chemicals                    4.68             4.68
 Private Limited filed a suit
 against the Company for a 
 demand of Rs.4.68 million.
 
 6. Confirmation of balance
 
 In respect of some of the sundry debtors, creditors, loans, advances &
 other receivables confirmation of balances yet to be received.
 
 7. A. Production Data
 
 Note: a. Including contract manufacturing and purchases of finished 
 goods.
 
 b. Installed capacity is flexible as the plant is versatile; enabling 
 the Company to produce in different capacities and therefore it varies
 depending on the product programmed.
 
 D.  Earnings in foreign currency
 
 Export of goods on FOB basis Rs.358.73 million (Previous year:
 Rs.298.68 million).
 
 8. Events subsequent to the date of the Balance Sheet
 
 Pursuant to the amalgamation of Nitya Laboratories Limited, the figures
 of current year are not strictly comparable to those of the previous
 year. Previous year''s figures have been regrouped/reclassified wherever
 necessary, to conform to current year classification.