1 Previous year figures have been regrouped/ recast/ rearranged
 wherever necessary to conform to current year classification.
 
 2 CONTINGENT LIABILITIES :
 
                                                  (Rs. in Lakhs)
 
 Particulars                                 2010-11         2009-10
 
 i) On account of Letters of Credit and 
 Guarantees issued by the bankers.           3510.49         4404.68
 
 ii) On account of bonds and / or legal 
 agreements executed with Central Excise/
 Customs authorities/ Development 
 Commissioners                              10750.00         7250.00
 
 iii) Demands being disputed / contested 
 by the Company                              1768.86         1778.64
 
 3 Estimated amount of contracts remaining to be executed on capital
 account and 5501.22 691.96 not provided for (Net of advances)
 
 4 Land admeasuring 29.30 acres acquired under deeds of assignment and
 under possession of the company at Chippada village, Bheemunipatnam
 Mandal, Visakhapatnam Dist. is yet to be registered in the name of the
 company.
 
 5 Excise duty on sales for the year has been disclosed as reduction
 from turnover. Excise duty relating to the difference between closing
 stock and opening stock has been included in Schedule 23 (Increase) in
 Stocks.
 
 6 EMPLOYEE STOCK OPTION SCHEME :
 
 In respect of Options granted to employees during the year 2005-06
 under the Employees Stock Option Scheme, in accordance with the
 guidelines issued by Securities and Exchange Board of India, the
 accounting value of Options, determined based on market price of the
 share on the day of the grant of the Option, is accounted as Deferred
 Employee Compensation Costs and the same is being amortised on straight
 line basis over the vesting period of Stock Options. Consequently for
 the Current Year, an amount of Rs. Nil/-(Previous year Rs. 225.70
 Lakhs) has been amortised.
 
 7 CALCULATION OF COMMISSION :
 
 Computation of Net Profit in accordance with Section 349 read with
 section 198 of the Companies Act, 1956 with relevant details of the
 calculation of commission payable by way of percentage of such Profits
 to Chairman and Managing Director, Executive Director and Director
 (Business development) for the year ending 31st March, 2011.
 
 8 SEGMENTAL REPORTING :
 
 (i) As the Companys business for the year consists of one reportable
 business segment of manufacturing and sale of Active Pharma Ingredients
 and Intermediates and consists of major revenue on account of exports
 out of India, no separate disclosures pertaining to attributable
 Revenues, Profits, Assets, Liabilities and Capital Employed are given.
 
 9 TRANSACTIONS WITH RELATED PARTIES :
 
 a) The List of Related Parties with whom transactions have taken place
 and nature of relationship is:
 
 i) KEY MANAGEMENT PERSONNEL :
 
 1.  Dr. Murali. K. Divi
 
 2.  Mr. N.V. Ramana
 
 3.  Dr. P. Gundu Rao
 
 4.  Mr. D. Madhusudana Rao
 
 5.  Mr. Kiran S. Divi
 
 ii) RELATIVES OF KEY MANAGEMENT PERSONNEL :
 
 1.  Mr. N. Laxmana Rao
 
 2.  Mr. Mallikarjuna Rao Divi
 
 3.  Mrs. Nilima Motaparti
 
 (iii) SUBSIDIARIES:
 
 1.  Divis Laboratories (USA) Inc
 
 2.  Divis Laboratories EUROPE AG
 
 10 ADVANCES TO SUBSIDIARIES :
 
 a. The Company has undertaken to provide financial assistance to its
 wholly owned subsidiaries Viz., Divis Laboratories (USA) Inc., and
 Divis Laboratories Europe AG by way of loans with no specific
 repayment schedule. In respect of loan to Divis Laboratories Europe
 AG, the same is subordinated to other creditors to the extent of CHF
 40,00,000 equivalent to Rs.1952.00 Lakhs (Previous year CHF 40.00 Lakhs
 equivalent to Rs. 1695.60 Lakhs)
 
 11 DERIVATIVE INSTRUMENTS :
 
 a. The Company uses foreign exchange forward contracts and options to
 hedge its foreign currency exposures relating to the underlying
 transactions and firm commitments, to reduce the foreign exchange
 fluctuation risk or cost to the Company. The Company does not use these
 derivative instruments for trading and speculative purposes.
 
 d. The losses on account of Exchange difference on Foreign Currency
 Forward Contracts and Options have been fully provided for in the books
 of accounts and the outstanding provision for loss at the year end is
 Rs 893.78 Lakhs (Previous year Rs.1,527.56 Lakhs).
 
 -MIn the opinion of management the current assets, loans and advances
 are expected to realise the value stated in the accounts, in the
 ordinary course of business and provision for known liabilities has
 been made.
 
 -The Ministry of Corporate Affairs, Government of India, vide General
 Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011
 respectively has granted a general exemption from compliance with
 section 212 of the Companies Act, 1956, subject to fulfillment of
 conditions stipulated in the circular. The Company has satisfied the
 conditions stipulated in the circular and hence is entitled to
 exemption. Necessary information relating to the subsidiaries has been
 included in Consolidated Financial Statements.
 
 12 The schedules referred to in the Balance sheet form an integral part
 of Accounts.  Additional information as required under Part – IV to
 Schedule VI of the Companies Act, 1956 is given in Annexure.