1.  Contingent Liabilities to the extent not provided for:
 
 a.  Guarantees given by Bank on behalf of the Company Rs 121.66 Lacs
 (Previous Year Rs. 148.52 Lacs)
 
 b.  Letters of Credit in favor of suppliers Rs 2362.91 Lacs (Previous
 Year Rs 908.87 Lacs)
 
 c.  Outstanding guarantees furnished to the bank in respect of wholly
 owned subsidiaries and a joint venture company Rs. 24867.89 Lacs
 (Previous Year Rs. 35115.35 Lacs)
 
 d.  Claims against the Company not acknowledged Rs. 3.12 Lacs (Previous
 Year Rs. 4.56 Lacs)
 
 e.  Disputed central excise duty (including service tax) liability is
 Rs. 435.03 Lacs (Previous Year Rs. 329.27 Lacs)
 
 f.  Disputed income tax liability Rs. 4007.05 Lacs (Previous Year Rs.
 2292.52 Lacs) for various assessment years for which appeals are
 pending with Appellate authorities, out of the said amount company has
 paid Rs. 642.26 Lacs (Previous Year Rs. 422.26 Lacs) under protest.
 
 g.  Disputed sales tax and central sales tax liability Rs. 447.41 Lacs
 (Previous Year Rs. 181.62 Lacs), out of the said amount company has
 paid Rs. 24.93 Lacs under protest.
 
 h.  Bills discounted with banks Rs. 3398.57 Lacs (Previous Year Rs.
 4516.46 Lacs.)
 
 2.  Estimated amount of contracts remaining to be executed on capital
 accounts not provided for (Net of Advances) Rs. 2409.18 Lacs (Previous
 Year Rs. 4282.56 Lacs)
 
 3.  From the financial year 2008-09, the company changed its accounting
 policy pertaining to recognition of exchange rate differences on
 settlement or restatement of foreign currency monetary assets and
 liabilities by exercising the option as per the notification dated
 March 31, 2009 issued by the Ministry of Corporate Affairs. As a
 result:
 
 a.  The exchange differences arising on restatement or settlement of
 long term foreign currency monetary items in so far as they relate to
 acquisition of a depreciable capital asset are adjusted to the cost of
 such asset and depreciated over the balance life of the asset.
 
 b.  In other cases, they have been accumulated in Foreign Currency
 Monetary Items Translation Difference Account and amortized over the
 balance period of such long term asset/ liability but not beyond March
 31, 2011 by recognition as an income and expenses in each of such
 periods.
 
 Accordingly, Rs. 20.38 lacs have been added in the cost of fixed
 assets, Rs. 41.03 lacs has been added in Foreign Currency Monetary
 Items Translation Difference Account, and Rs. 89.63 lacs has been
 amortized and charged to profit and loss account during the year.
 
 The amount remaining to be amortized in subsequent periods as at the
 balance sheet is Rs. NIL Lacs.
 
 4.  Secured Loans
 
 Secured Redeemable Non-Convertible Debentures -First Trench of Rs.
 7500.00 lacs issued in February,2010, are secured by, first pari-passu
 charge on the fixed assets of the Company located at Bavla. The
 debentures carry interest rate of 10.35% p.a. and are redeemable @ 20%
 each in the 4th and 5th year and 30% each in the 6th and 7th year from
 the date of allotment.
 
 Secured Redeemable Non-Convertible Debentures-Second Trench issued in
 June 2010, are secured by, first pari-passu charge on the fixed assets
 of the Company located at Bavla.  The debentures carry interest rate of
 9.65% p.a. and are redeemable @ 50% each in the 4th and 5th year from
 the date of allotment.
 
 Secured Foreign Currency Term Loan from Bank of India (amount
 outstanding as at March 31, 2011 Rs. 2020.47 lacs), is secured by first
 pari-passu charge on the fixed assets of the Company located at Bavla
 and the second pari-passu charge on the current assets of the Company
 and further secured by pledge of the shares of the Company held / to be
 held in wholly owned subsidiary in China, namely Dishman
 Pharmaceuticals & Chemicals (Shanghai) Co.Ltd.
 
 Secured Foreign Currency Term Loan from Development Bank of Singapore
 (amount outstanding as at March 31, 2011 Rs. 4125.50 lacs), is secured
 by first pari-passu charge on the fixed assets of the Company located
 at Bavla and the second pari-passu charge on the current assets of the
 Company.
 
 Secured Foreign Currency Term Loan from International Finance
 Corporation (amount outstanding as at March 31, 2011 Rs. 6690.00 lacs),
 is secured by first pari-passu charge on the fixed assets of the
 Company located at Bavla and the second pari-passu charge on the
 current assets of the Company.
 
 Secured Term Loan from Industrial Development Bank of India Limited
 (IDBI) (amount outstanding as at March 31, 2011 Rs. 1400.00 lacs) is
 secured by first pari-passu charge on the fixed assets of the Company
 located at Bavla and the second pari-passu charge on the current assets
 of the Company.
 
 Secured Term Loan from Indusind Bank Limited (amount outstanding as at
 March 31, 2011 Rs. 3566.03 lacs) is secured by first pari-passu charge
 on the fixed assets of the Company located at Bavla and the second
 pari-passu charge on the current assets of the Company.
 
 Secured Term Loan from Bank of Maharashtra (amount outstanding as at
 March 31, 2011 Rs. 1500.00 lacs) is secured by first pari-passu charge
 on the fixed assets of the Company located at Bavla and the second
 pari-passu charge on the current assets of the Company.
 
 Secured Term Loan from Standard Chartered Bank (amount outstanding as
 at March 31, 2011 Rs. 1500.00 lacs) is secured by first charge on the
 movable fixed assets of the Naroda EOU plant of Company located at Plot
 No.  1216/24 to 27 and 1216/11, Pharse IV, GIDC Estate, Naroda ,
 Ahmedabad.
 
 Working Capital Loans are secured against hypothecation of inventories,
 collateral security of book debts, first charge on fixed assets of the
 Company situated at Naroda, except EOU Unit and second charge on fixed
 assets of the Company situated at Bavla.
 
 Hire Purchase Finances are secured by hypothecation of respective
 assets.
 
 5.  Unsecured loans from banks are personally guaranteed by one of the
 promoter directors.
 
 Unsecured loans include loans from Life Insurance Corporation of India
 availed on the Keyman insurance policies of the key personnel of the
 entity.
 
 6.  The Company has pledged its 1 (One) equity share of Dishman FZE
 with ABN AMRO Bank N.V. as security against loan availed by its
 subsidiary company, Dishman FZE
 
 The Company has pledged its 28,000,000 (Twenty Eight Millions) equity
 share of Dishman Pharma Solutions AG, Switzerland with Cooperative
 Centrale Raifeisen- Boerenleenbank BA (trading as Rabobank
 International), Singapore as security against loan availed by its
 subsidiary company, Dishman Pharma Solutions,AG.
 
 12. There are no dues to Micro and small Enterprises as at 31st March,
 2011. This information as required to be disclosed under the Micro,
 Small and Medium Enterprises Development Act, 2006 has been determined
 to the extent such parties have been identified on the basis of
 information available with the company.
 
 13.  Employee Benefits
 
 The present value of gratuity and leave encashment obligations is
 determined based on actuarial valuation using the Projected Unit Credit
 Method, which recognizes each period of service as giving rise to
 additional unit of employee benefit entitlement and measures each unit
 separately to build up the final obligation.
 
 Details of post retirement benefits are as follows:
 
 1.  Defined Benefit Plans
 
 i) Actuarial gains and losses in respect of defined benefit plans are
 recognised in the Profit &Loss Account.
 
 ii) The Defined Benefit Plan comprises of Gratuity and Leave
 Encashment. Gratuity is a benefit to an employee based on 15 days last
 drawn basic salary including dearness allowance(if any) for each
 completed year of continuous service with part thereof in excess of six
 months. The plan is funded.
 
 iii) Leave Encashment benefit is a benefit to an employee based on 15
 days last drawn basic salary including dearness allowance(if any) for
 each completed year of continuous service with part thereof in excess
 of six months.
 
 15.  Balances of receivables, payables and loans and advances parties
 are subject to their confirmations. These balances are therefore,
 subject to adjustments, if any, as may be required on settlement of
 these balances with the parties.
 
 20.  Segmental Reporting
 
 The Company is in the business of manufacturing and marketing of
 
 A.  Contract Research & Contract Manufacturing (CRAMS).
 
 B.  Bulk Drugs, Intermediates, Quats, Specialty Chemicals & Traded
 Goods.
 
 Segment revenue of the above business segment includes sales export
 incentive and income from Research and Development activity.
 
 Segment revenue in geographical segment considered for disclosure is as
 follows:
 
 A.  Domestic Sales
 
 B.  Export Sales
 
 The Segment revenue, results, assets and liabilities include the
 respective amounts identifiable to each of the segment and amount
 allocated on a reasonable basis by management
 
 21.  Financial and derivative instruments
 
 Derivative contracts entered into by the Company and outstanding as at
 March 31, 2011.  
 
 (a) For hedging currency and interest related risks
 
 (b) All derivative and financial instruments acquired by the Company
 are for hedging purposes only.
 
 (c) The year end foreign currency exposures that have not been hedged
 by any derivate instrument or otherwise are as under
 
 22.  The Ministry of Corporate Affairs, Government of India , vide its
 order No.47/42/2011-CL-III dated 21st January, 2011 issued under
 section 212(8) of the companies Act, 1956 has exempted the company from
 attaching the Balance Sheet and Profit and Loss Accounts of the
 subsidiaries under section 212(1) of the companies Act, 1956. As per
 the order, key details of the subsidiaries are attached along with the
 consolidated financial statement.
 
 23.  Donation includes of Rs NIL Lacs given to Political Party
 (Previous Year Rs. 200 Lacs) .
 
 24.  Previous year figures have been regrouped / rearranged wherever
 necessary.