1.1 Basis of accounting and preparation of financial statements
 
 The financial statements are prepared under the historical cost
 convention on the Accrual Concept of accountancy in accordance with
 the accounting principles generally accepted in India and comply with
 the accounting standards issued by the Institute of Chartered
 Accountants of India to the extent applicable and with the relevant
 provisions of the Companies Act, 1956.
 
 1.2 Use of estimates
 
 The preparation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of the financial statements and the reported
 amount of revenues and expenses during the reporting period. Difference
 between the actual result and estimates are recognized in the period in
 which the results are known / materialized.
 
 1.3 Inventories
 
 Raw materials, packing materials, stores, spares and consumables are
 valued at lower of cost (net of refundable taxes and duties) or net
 realizable value. The cost of these items of inventory comprises of
 cost of purchase and other incidental costs incurred to bring the
 inventories to their present location and condition. Work in progress
 and finished goods are valued at lower of cost or net realizable value.
 The cost of work in process and finished goods includes cost of
 conversion and other costs incurred to bring the inventories to their
 present location and condition. Cost of inventories is determined on
 weighted average basis. Excise Duty in respect of finished goods lying
 in factory premises are provided for and included in valuation of
 inventory in case of non EOU units. Custom duty is accounted as and
 when goods are cleared from the bonded warehouse.
 
 1.4 Depreciation and amortisation
 
 All tangible fixed assets, except freehold land, leasehold land and
 capital work in progress, are depreciated on a straight line method at
 the rates and in the manner prescribed in Schedule XIV of the
 Companies'' Act, 1956. Leasehold land shall be written off in the year
 in which the respective lease period expires. Intangibles Assets
 including Intellectual Property Rights in the nature of production
 processes, software and patents are amortized over a period of 5 years
 starting from the year after the year of incurring expenditure /
 commercialization. The value of these intangible assets is reviewed at
 each balance sheet date to assess the probability of continuing future
 benefits. If there is any indication that the value of such assets is
 impaired, the resulting impairment loss is recognized in the financial
 statements.
 
 1.5 Revenue recognition
 
 Revenue from domestic sales is accounted on dispatch of products to
 customers.Revenue from export sales is recognized on shipment/ air lift
 of products. Income from Contract Research is recognized under
 Percentage Completion Method basis as per contractual terms.Interest
 income is accrued on a time basis, by reference to the principal
 outstanding and at the effective interest rate applicable.Dividend
 income from investments is recognized when the shareholders'' rights to
 receive payment have been established.
 
 1.6 Tangible fixed assets
 
 Fixed assets are stated at cost of acquisition / construction except
 for certain fixed assets which have been stated at revalued amounts,
 less accumulated depreciation, amortization and impairment loss (if
 any). Cost comprises of purchase price, import duties and other
 non-refundable taxes or levies and any directly attributable cost to
 bring the assets ready for its intended use. Exchange difference, if
 any, in respect of long term liabilities incurred to acquire fixed
 assets is adjusted to the carrying cost of fixed assets. Direct
 expenses, as well as pro rata identifiable indirect expenses on
 projects during the year of construction are capitalized.Capital assets
 (including expenditure incurred during the construction period) under
 erection / installation are stated in the Balance Sheet as Capital
 Work in Progress.
 
 1.7 Intangible assets
 
 Intangible assets are stated at cost of acquisition / cost incurred
 less accumulated amortization.
 
 1.8 Foreign currency transactions and translations
 
 Transactions denominated in foreign currencies are recorded at the
 exchange rates prevailing on the date of the transaction.Monetary items
 denominated in foreign currencies at the year end are restated at the
 year end rates. Non monetary foreign currency items are carried at
 cost.Exchange differences arising on settlement or restatement of long
 term foreign currency monetary items, in so far as they relate to
 acquisition of depreciable capital assets are adjusted to the carrying
 cost of such assets and depreciated over the balance life of the assets
 and in other cases, are accumulated in ''Foreign Currency Monetary Item
 Translation Difference Account'' and amortized over the balance period
 of such long term asset / liability but not beyond March 31, 2020 by
 recognition as income or expense in each of such periods. An asset or
 liability is designated as a long term foreign currency monetary item,
 if the asset or liability is expressed in a foreign currency and has a
 term of 12 months or more at the date of origination of the asset or
 liability. Exchange differences on other monetary items denominated in
 foreign currencies are recognized in the profit and loss account.
 
 1.9 Investments
 
 Current investments are carried at the lower of cost and fair value.
 Long term investments are stated at cost. Provision for diminution in
 the value of long term investments is made, only if, in the opinion of
 the management, such a decline is regarded as being other than
 temporary.
 
 2.00 Employee benefits
 
 Short-term employee benefits are recognized as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered. Post employment benefits are
 recognized as an expense in the profit and loss account for the year in
 which the employee has rendered services. The expense is recognized at
 the present value of the amount payable towards contributions. The
 present value is determined using the market yields of government
 bonds, at the balance sheet date, at the discounting rate. Other
 long-term employee benefits are recognized as an expense in the profit
 and loss account for the period in which the employee has rendered
 services. Estimated liability on account of long-term benefits is
 discounted to the current value, using the yield on government bonds,
 as on the date of balance sheet, at the discounting rate. Actuarial
 gains and losses in respect of post employment and other long-term
 benefits are charged to the profit and loss account.
 
 2.1 Borrowing costs
 
 Borrowing costs that are directly attributable to the acquisition,
 construction or production of qualifying fixed assets are capitalized
 as part of the cost of such assets. All other borrowing costs are
 recognized as expense in the period in which they are incurred.
 
 2.2 Taxes on income
 
 Tax expenses for a year comprise of current tax and deferred tax.
 Provision for current tax is determined based on assessable profits of
 the Company as determined under the Income Tax Act, 1961. Provision for
 deferred tax is determined based on the effect of timing difference
 between the assessable profits under the Income Tax Act and the profits
 as per the Profit and Loss Account. Deferred tax assets, other than
 those from carry forward losses and unabsorbed depreciation, are
 recognized only to the extent that there is reasonable certainty that
 sufficient future taxable income will be available against which such
 deferred tax assets can be realized. Deferred tax assets arising from
 carry forward losses and unabsorbed depreciation, are recognized and
 carried forward only to the extent that there is a virtual certainty
 that sufficient future taxable income will be available against which
 such deferred tax assets can be realized.
 
 2.3 Research and development expenses
 
 Research and development costs incurred for development of products are
 charged to revenue as incurred, except for development costs relating
 to the design and testing of new or improved materials, products or
 processes which are recognized as intangible assets to the extent that
 it is expected that such assets will generate future economic benefits.
 Research and development expenditure of capital nature is added to
 fixed assets. The carrying value of development costs is reviewed for
 impairment annually when the asset is not yet in use, and otherwise
 when events and change in circumstances indicate that the carrying
 value may not be recoverable. Expenditure on development of the
 production process of molecules is treated as capital work in progress
 and amortized over the period of life of each product once the
 commercial exploitation of the respective product starts / put to use.
 
 2.4 Impairment of assets
 
 Consideration is given at each balance sheet date to determine whether
 there is any indication of impairment of the carrying amount of the
 Company''s each class of the fixed assets. If any indication exists, an
 asset''s recoverable amount is estimated.  An impairment loss is
 recognized whenever the carrying amount of an asset exceeds its
 recoverable amount. The recoverable amount is the greater of the net
 selling price and value in use. In assessing value in use, the
 estimated future cash flows are discounted to their present value based
 on an appropriate discount factor.
 
 2.5 Provisions and contingencies
 
 Provisions are recognized for when the Company has at present, legal or
 contractual obligation as a result of past events, only if it is
 probable that an outflow of resources embodying economic benefits will
 be required and if the amount involved can be measured reliably.
 Contingent liabilities being a possible obligation as a result of past
 events, the existence of which will be confirmed only by the occurrence
 or non occurrence of one or more future events not wholly in the
 control of the Company, are not recognized in the accounts. The nature
 of such liabilities and an estimate of its financial effect are
 disclosed in the Notes to Financial Statements. Contingent assets are
 neither recognized nor disclosed in the financial statements.
 
 2.6 Derivative contracts
 
 In respect of derivate contracts, premium paid, gains or losses on
 settlement and provision for losses for cash flow hedges are recognized
 in the profit and loss account.