1. Contingent liabilities and commitments
 
                                                   (Amount in Rs.)
 
                                            As at              As at
 
                                    31 March 2011   31 December 2009
 
 Claims against the Company not 
 acknowledged as debts in respect of:
 
 a) Excise and service tax matters      2,665,077          1,696,077
 
 Other commitments/ contingent liability
 
 a) In respect of bank guarantees      14,152,892          9,436,611
 
 b) Estimated amount of contracts 
 remaining to be executed on capital 
 account (net of advances)
 and not provided for                 386,929,664          3,481,145
 
 The Company received a notice from Bruhat Bangalore Mahanagara Palike
 (BBMP) on February 23, 2011 demanding a payment of Rs.113,328,767 as Land
 Improvement Charges towards its land located at its factory.
 Management believes that, based on legal advice received by the
 Company, the said charges are not payable.  and the Company has prima
 facie a strong case on merits to challenge the constitutional validity
 of the Rules empowering BBMP to collect the said charges. Management
 plans to file a writ before the High Court of Karnataka against the
 above charges in due course.
 
 2.  The net compensation awarded amounting to ^19,691,797 by the
 National Highways Authorities of India (NHAI) vide the award dated 8
 March 2004 for acquiring a portion of factory land, has been
 subsequently reduced to Rs.498,879 by an amended award dated 8 September
 2006. The revised compensation is based on the cost at which the land
 was originally obtained from Karnataka Industrial Area Development
 Board. The Company has not accepted the amended award and has disputed
 the same.  The Company has invoked the arbitration provision under the
 National Highways Act, 1956. Additionally, the Company has also filed a
 writ petition before the honourable High Court of Karnataka on 9
 October 2007, praying for the quashing of the amended award. As per
 legal advice received, the Company has adequate grounds for challenging
 the amended award.
 
 3.  Research expenditure (including depreciation) amounting to
 Rs.32,177,960 (previous year: ^21,061,982) incurred during the period has
 been charged to the respective heads of account in the profit and loss
 account.
 
 Managerial remuneration does not include cost of retirement benefits
 such as gratuity and compensated absences since provision for the same
 is based on actuarial valuation carried out for the Company as a whole.
 
 Anandh Balasundaram (Managing Director) has been issued 8,933 (Previous
 year: 3,500) Share Options under the AstraZeneca Share Option Plan by
 AstraZeneca Pic. The cost incurred by AstraZeneca Pic pursuant to the
 said AstraZeneca Share Option plan for the period ended 31 March 2011
 amounts to Rs.1,432,657 (previous year: Rs.423,967).
 
 8. Additional information pursuant to the provisions of paragraphs 3,
 4C and 4D of part II of Schedule VI to the Companies Act, 1956
 (Quantitative information has been compiled from records and technical
 data in respect of each class of goods manufactured/ purchased by the
 Company).
 
 The Company has outsourced certain accounting function to an external
 service provider in the current period. All costs with respect to the
 transition of the accounting function have been borne by AstraZeneca
 Group and will not be charged to the Company.
 
 Further, the Company had implemented a new ERP system - SAP during the
 previous year ended 31 December 2009. All costs with respect to the
 implementation and licensing of SAP have been borne by AstraZeneca
 Group and will not be charged to the Company.
 
 10. Segment reporting
 
 The primary segments of the Company are its business segments as
 follows:
 
 1.  Healthcare -
 
 The Company engages in the manufacture, trading and sale of
 pharmaceutical products.
 
 2. Clinical trial services -
 
 The Company renders clinical trial services on pharmaceuticals products
 to its group companies.
 
 3. Co-promotional services -
 
 The Company renders co-promotion services for pharmaceuticals products
 to its customers.
 
 The accounting policies consistently used in the preparation of the
 financial statements are also applied to record revenue and expenditure
 in individual segments.
 
 Revenue and direct expenses in relation to segments are categorised
 based on items that are individually identifiable to that segment,
 while other costs, wherever allocable, are apportioned to the segments
 on an appropriate basis. Certain income and expenses are not
 specifically allocable to individual segments as the underlying assets
 and services are used interchangeably. The Company therefore believes
 that it is not practicable to provide segment disclosures relating to
 such income and expenses and accordingly such expenses are separately
 disclosed as unallocated and directly charged against total income.
 
 Assets and liabilities in relation to segments are categorised based on
 items that are individually identifiable to that segment. Certain
 assets and liabilities are not specifically allocable to individual
 segments as these are used interchangeably. The Company therefore
 believes that it is not practicable to provide segment disclosures
 relating to such assets and liabilities and accordingly these are
 separately disclosed as unallocated. Assets are primarily located in
 India.
 
 Clinical trial services and co-promotion services do not qualify as
 separate segments as defined in AS - 17 - Segment Reporting and hence
 have been disclosed as others.
 
 16. The Company is obligated under non-cancellable operating leases for
 residential premises. Total rental expense under non-cancellable
 operating leases amounted to Rs.1,809,856 (previous year: Rs.2,253,524) for
 the period ended 31 March 2011.
 
 The Company is also obligated under cancellable lease for residential
 and office premises, which are renewable at the option of lessor and
 lessee. Total rental expense under cancellable operating lease entered
 amounted to Rs.38,715,700 (previous year: Rs.27,641,438) for the period
 ended 31 March 2011.
 
 Further the Company is obligated under operating lease agreements for
 vehicles. Total lease rental expense under the said agreement amounted
 to Rs.2,096,998 (previous year: ^3,065,055) for the period ended 31 March
 2011.
 
 17. Forward contracts entered for the hedging purpose, which were
 outstanding as on 31 March 2011 amounted to Rs. Nil (Previous year: Rs.
 Nil). Foreign currency exposure as on 31 March 2011, which was not
 hedged, are as follows:
 
 18. The management has initiated the process of identifying enterprises
 which have provided goods and services to the Company and which qualify
 under the definition of micro and small enterprises, as defined under
 Micro, Small and Medium Enterprises Development Act, 2006. The Ministry
 of Micro, Small and Medium enterprises has issued an office Memorandum
 dated 26 August 2008 which recommends that the Micro and Small
 enterprises should mention in their correspondence with its customers
 the entrepreneurs Memorandum number as allocated after filing of the
 Memorandum. The Company has not received any claim for interest from
 any supplier under the said Act.
 
 19. Gratuity plan
 
 The Company has the following defined Gratuity plan.
 
 Leaving Service Benefit:
 
 Eligibility for benefit: Every employee who has completed 3 years or
 more of service would be eligible for gratuity benefit as per the terms
 of the Trust Deed.
 
 formal Retirement Benefit, Death and Disability Benefit: For Management
 staff:
 
 One months salary last drawn by member for each year of service,
 without limit.
 
 For Non-Management Staff:
 
 One months salary last drawn by member for each year of service,
 subject to maximum limit specified as per the Gratuity Act, 1972.
 
 The estimates of future salary increases, considered in actuarial
 valuation, take account of inflation, seniority, promotion and other
 relevant factors such as supply and demand factors in the employment
 market.
 
 20.  In the previous year, the Company transferred the balance of
 debenture redemption reserve amounting to Rs.312,500,000 to the
 accumulated balance of profit and loss after repaying the 8% secured
 fully paid-up redeemable non-convertible bonus debentures.
 
 21.  The provision for direct and indirect taxes is utilised to settle
 adverse outcomes of cases against the Company. The provision is based
 on an informed advice obtained by the Company. The Company, however,
 cannot estimate with reasonable certainty the period of utilisation of
 the same.
 
 22.  Management believes that the Company has established a
 comprehensive system of maintenance of information and documents as
 required by the transfer pricing legislation under sections 92-92F of
 the Income-tax Act, 1961. Management is of the opinion that its
 international transactions are at arms length so that the aforesaid
 legislation will not have any impact on the financial statements,
 particularly on the amount of tax expenses and that of provision for
 taxation
 
 23.  The Board of Directors of the Company at its meeting held on 13
 May 2011, approved the financial statements for the period ended 31
 March 2011. The Board of Directors, at the said meeting, also
 recommended a final dividend of Rs.10 on equity share of Rs.2 each for the
 period ended 31 March 2011.The Payment of the said dividend is subject
 to the approval of the shareholders at the Annual General Meeting.
 
 24.  The financial statements for the period ended 31 March 2011 are
 for the period from 1 January 2010 to 31 March 2011 i.e. 15 months
 period. Since the previous year comparatives are for a year i.e. twelve
 months period, the previous year figures may not be strictly comparable
 to the current period figures. The comparative figures have been
 regrouped/ reclassified, wherever necessary, to conform to the current
 periods presentation.