1 The Company had opted for accounting the exchange rate differences
 arising on the Long Term Foreign Currency Monetary Items [ LTFCMI ] in
 accordance with the notification dated March 31, 2009 under the
 Companies [ Accounting Standards ] Amendment Rules, 2009 on Accounting
 Standard 11 relating to the effects of changes in foreign exchange
 rates. Accordingly, the effects of exchange rate differences arising
 from long term foreign currency loans availed for funding acquisition
 of fixed assets have been adjusted to the cost of respective items of
 fixed assets. While, in other cases, such exchange rate difference on
 the LTFCMI is transferred to Foreign Currency Monetary Items
 Translation Difference Account [FCMITDA ], which is amortised during
 the tenure of the respective LTFCMI but not beyond March 31, 2011.
 
 2 The grant-in-aid of Rs. 24 { Previous year : Rs. 39 } Millions
 received from Ozone Cell, Ministry of Environment and Forests to meet
 the expenditure incurred for phasing out Chlorofluorocabons (CFCs) in
 the manufacture of Pharmaceutical Metered Dose Inhalers (MDIs), is
 treated as revenue in nature and accordingly is shown under the head
 Other Income from Operations in the Profit and Loss Account.
 
 3 The Company has imported certain capital Equipments at concessional
 rate of custom duty under Export promotion of Capital Goods Scheme of
 the Central Government. The Company has undertaken an incremental
 export obligation to the extent of US $ 4 Millions { equivalent to Rs.
 163 Millions approx. } [ Previous Year US $ 2 { equivalent to Rs. 105
 Millions approx. } ] to be fulfilled during a specified period as
 applicable from the date of imports. The liability towards custom duty
 payable thereon in respect of unfulfilled export obligations as on
 March 31, 2011 of Rs. 5 [ as at 31-03-10 : Rs. 17 ] Millions is not
 provided for.
 
 4 The Company has taken various residential / office premises / godowns
 under operating lease or leave and license agreement. The lease terms
 in respect of such premises are on the basis of individual agreement
 entered into with the respective landlords. The Company has given
 refundable interest free security deposits in accordance with the
 agreed terms. The lease payments are recognised in the Profit and Loss
 Account under Rent in Schedule 16.
 
 5 The Company has invested Rs. 50 Millions and given loans & advances
 of Rs. 131 [ As at 31-03-10 : Rs. 131 ] Millions to Dialforhealth India
 Limited [ DIL ], a wholly owned subsidiary of the Company. The
 accumulated losses as at March 31, 2011 amounting to Rs. 106 [ As at
 31-03-10 : Rs. 105 ] Millions has exceeded the net worth of DIL.
 However having regard to the long term strategic investment, the
 diminution in the value of investments in DIL is considered to be
 temporary and loans and advances are considered good and accordingly no
 provision has been made.
 
 6 A Provision for product expiry claims in respect of the products sold
 during the year is made based on managements estimates considering the
 estimated stock lying with retailers. The Company does not expect any
 reimbursement of such claims in future.  B The movement in such
 provision is stated as under :
 
 7 Previous years figures have been regrouped / restated wherever
 necessary to make it comparable with the current years figures.
 
 14 Contingent liabilities not provided for :
 
                                                    INR - Millions
                                                    As at March 31,
 
                                                   2011        2010
 
 A In respect of guarantees given by Banks 
 and / or counter guarantees given by the Company.  150         143
 
 B In respect of letters of credit for imports.       2           0
 
 C In respect of letters of comfort / corporate 
 guarantees given by the Company to Banks for the
 outstanding dues of loans availed by some of the 
 subsidiary companies and a joint venture company  4643        4347
 
 D In respect of claims against the Company not 
 acknowledged as debts.
 [ Including Rs. 1 { as at 31-03-10 : Rs. 8 } 
 Millions in respect of Amalgamated {*}Companies]    57          68
 
 E In respect of the demands raised by the 
 Central Excise, State Excise & Service Tax 
 Authority
 [ Including Rs. 9 { as at 31-03-10 : Rs. 9 } 
 Millions in respect of Amalgamated {*} Companies ]  40          49
 
 F In respect of the demands raised by the 
 Ministry of Chemicals & Fertilizers, Govt. of 
 India under Drug Price Control Order, 1979 / 1995 
 for difference in actual price and price of 
 respective bulk drug allowed while fixing the 
 price of certain life saving formulations and
 disputed by the Company. Based on the legal advice 
 the Company does not foresee the
 crystallization of the liability.
 [ Including Rs. 49 { as at 31-03-10 : Rs. 51 } 
 Millions in respect of Amalgamated {*} Companies ] 317         227
 
 G In respect of Income Tax matters pending 
 before appellate authorities which the Company 
 expects to succeed, based on decisions of 
 Tribunals / Courts.                                 66          12
 
 H In respect of Sales Tax matters pending 
 before appellate authorities / Court which the 
 Company expects to succeed, based on decisions 
 of Tribunals / Courts.                              93          74
 
 Note : [ * ] represents contingent liabilities taken over by the
 Company under the Scheme of Arrangement and Amalgamation of Cadila
 Laboratories Limited, and erstwhile Cadila Chemicals Limited, Cadila
 Antibiotics Limited, Cadila Exports Limited and Cadila Veterinary
 Private Limited with the Company w.e.f. June 1, 1995.