1.  COMMITMENTS AND CONTINGENT LIABILITIES
 
                                                as at           as at
 
                                        31 march 2011   31 march 2010
 
 i) Commitments / contingent liabilities:
 
 (a) Guarantees issued by banks                   119             94
 
 (b) Guarantees issued by the Company on 
 behalf of subsidiaries,
 associates and joint venture                  11,070         16,527
 
 (c) Letters of credit outstanding                437             20
 
 (d) Contingent consideration payable in 
 respect of subsidiaries acquired                  12             12
 
 ii) Claims against the Company not 
 acknowledged as debts in respect of:
 
 (a) Income tax matters, pending decisions 
 on various appeals made by the Company and 
 by the                                           431            521
 
 Department
 
 (b) Excise matters (including service tax), 
 under dispute                                    127              6
 
 (c) Custom matters, under dispute                 97             97
 
 (d) Sales tax matters, under dispute             170            151
 
 (e) The company has received demand for 
 payment to the credit of the Drug Prices 
 Equalisation Account under Drugs (Price Control) 
 Order, 1995 for few of its products which is 
 being contested. The Company has provided fully
 against the potential liability in respect 
 of the principal amount demanded and believes
 that possibility of any liability that may 
 arise on account of interest (including 
 accumulated demand to date approximately of 
 Rs.167) and penalty on this demand is remote.
 
 iii) Estimated amount of contracts remaining 
 to be executed on capital account and not 
 provided for (net                              3,365          2,859
 of advances)
 
 iv) Commitment under Export Promotion Capital 
 Goods (EPCG) scheme                            9,054          3,835
 
 v) The Company is also involved in other 
 lawsuits, claims, investigations and 
 proceedings, including patent and commercial
 matters, which arise in the ordinary
 course of business. However, there are no 
 material claims on such cases.
 
 2.  RELATED PARTY DISCLOSURES
 
 a.  The related parties where control exists are the subsidiaries, step
 down subsidiaries, joint ventures and the partnership frms.
 
 b.  Related parties where control exists or where significant infuence
 exists and with whom transactions have taken place during the year:
 subsidiaries including step down subsidiaries DRL Investments Limited,
 India;
 
 Reddy Pharmaceuticals Hong Kong Limited, Hong Kong;
 
 OOO JV Reddy Biomed Limited, Russia;
 
 Reddy Antilles NV, Netherlands;
 
 Reddy Netherlands BV, Netherlands;
 
 Reddy US Therapeutics Inc., USA;
 
 Dr. Reddys Laboratories Inc., USA;
 
 Reddy Cheminor SA, France;
 
 Dr. Reddys Farmaceutica Do Brasil Ltda., Brazil;
 
 Cheminor Investments Limited, India;
 
 Aurigene Discovery Technologies Limited, India;
 
 Aurigene Discovery Technologies Inc., USA;
 
 Dr. Reddys Laboratories (EU) Limited, UK;
 
 Dr. Reddys Laboratories (UK) Limited, UK;
 
 Dr. Reddys Laboratories (Proprietary) Limited, South Africa;
 
 OOO Dr. Reddys Laboratories Limited, Russia;
 
 Promius Pharma LLC (formerly Reddy Pharmaceuticals LLC, USA);
 
 Dr. Reddys Bio-sciences Limited, India;
 
 Globe Enterprises (a partnership frm in India) (dissolved on 1 July
 2010);
 
 Trigenesis Therapeutics Inc., USA;
 
 Industrias Quimicas Falcon de Mexico, SA de CV, Mexico;
 
 betapharm Arzneimittel GmbH, Germany;
 
 beta Healthcare Solutions GmbH, Germany;
 
 beta institute fur sozialmedizinische Forschung und Entwicklung GmbH,
 Germany;
 
 Reddy Holding GmbH, Germany;
 
 Lacock Holdings Limited, Cyprus;
 
 Reddy Pharma Iberia SA, Spain;
 
 Reddy Pharma Italia SPA, Italy;
 
 Dr. Reddys Laboratories (Australia) Pty. Limited, Australia;
 
 Dr. Reddys Laboratories SA, Switzerland;
 
 Eurobridge Consulting BV, Netherlands;
 
 OOO DRS LLC, Russia;
 
 Aurigene Discovery Technologies (Malaysia) Sdn Bhd;
 
 Dr. Reddys New Zealand Limited, New Zealand (formerly Affordable
 Health Care Limited);
 
 Dr. Reddys Laboratories ILAC TICARET Limited SIRKETI, Turkey;
 
 Dr. Reddys SRL, Italy (formerly Jet Generici SRL);
 
 Dr. Reddys Laboratories Lousiana LLC, USA;
 
 Chirotech Technology Limited, UK;
 
 Dr. Reddys Pharma SEZ Limited, India (from 8 July 2009);
 
 Dr. Reddys Laboratories International SA, Switzerland (from 24 March
 2010);
 
 Idea2Enterprises (India) Private Limited, India (from 30 June 2010);
 
 Dr. Reddys Laboratories Romania SRL, Romania (from 7 June 2010);
 
 I-VEN Pharma Capital Limited, India (from 6 October 2010);
 
 Dr. Reddys Laboratories Tennessee, LLC, USA (from 7 October 2010);
 
 Dr. Reddys Venezuela, CA, Venezuela (from 20 October 2010);
 
 Macred India Private Limited, India (till 18 July 2010); and
 
 Perlecan Pharma Private Limited, India (Amalgamated with the Company
 vide order dated 12 June 2009 by the High Court of Judicature, Andhra
 Pradesh, Hyderabad)
 
 3.  RELATED PARTY DISCLOSURES (CONTINUED)
 
 associates
 
 APR LLC, USA 100% Holding in class B equity shares
 
 Macred India Private Limited, India (from 19 July 2010) 20% Holding in
 equity shares
 
 Joint venture
 
 Kunshan Rotam Reddy Pharmaceutical Company Limited Enterprise over
 which the Company exercises joint control with other
 
 (Reddy Kunshan), China joint venture partners and holds 51.33 %
 equity stake
 
 enterprises where principal shareholders have control or significant
 infuence (significant interest entities)
 
 Dr. Reddys Research Foundation (Research Foundation) Enterprise over
 which the principal shareholders have significant infuence
 
 Dr. Reddys Holdings Limited Enterprise owned by principal shareholders
 
 Institute of Life Sciences Enterprise over which principal shareholders
 have significant infuence
 
 others
 
 Green Park Hotels and Resorts Limited Enterprise owned by relative of a
 director
 
 (formerly Diana Hotels Limited)
 
 Ms. K Samrajyam Spouse of Chairman
 
 Ms. G Anuradha Spouse of Vice Chairman and Chief Executive Officer
 
 Ms. Deepti Reddy Spouse of Managing Director and Chief Operating Officer
 
 Dr. Reddys Heritage Foundation Enterprise in which the Chairman is a
 director
 
 Dr. Reddys Foundation for Human and Social development Enterprise
 where principal shareholders are trustees
 
 S R Enterprises Enterprise in which relative of a director has
 significant infuence
 
 K K Enterprises Enterprise in which relative of a director has
 significant infuence
 
 A.R. Life Sciences Private Limited Enterprise in which relative of a
 director has significant infuence
 
 Key management Personnel represented on the Board
 
 Dr. K Anji Reddy Chairman
 
 Mr. G V Prasad Vice Chairman and Chief Executive Officer
 
 Mr. K Satish Reddy Managing Director and Chief Operating Officer
 
 non-executive and independent directors on the Board
 
 Dr. Omkar Goswami
 
 Mr. Ravi Bhoothalingam
 
 Mr. Anupam Puri
 
 Dr. J P Moreau
 
 Ms. Kalpana Morparia
 
 Dr. Bruce L A Carter
 
 Dr. Ashok Sekhar Ganguly
 
 4.  EMPLOYEE STOCK OPTION SCHEME
 
 Dr. Reddys Employees Stock Option Plan-2002 (the DRL 2002 Plan): The
 Company instituted the DRL 2002 Plan for all eligible employees in
 pursuance of the special resolution approved by the shareholders in the
 Annual General Meeting held on 24 September 2001. The DRL 2002 Plan
 covers all employees of DRL and its subsidiaries and directors
 (excluding promoter directors) of DRL and its subsidiaries
 (collectively, eligible employees). Under the Scheme, the
 Compensation Committee of the Board (the Committee) shall administer
 the Scheme and grant stock options to eligible directors and employees
 of the Company and its subsidiaries. The Committee shall determine the
 employees eligible for receiving the options, the number of options to
 be granted, the exercise price, the vesting period and the exercise
 period. The vesting period is determined for the options issued on the
 date of the grant. The options issued under the DRL 2002 plan vests in
 periods ranging between one and four years and generally have a maximum
 contractual term of fve years.
 
 The DRL 2002 Plan was amended on 28 July 2004 at the Annual General
 Meeting of shareholders to provide for stock options grants in two
 categories:
 
 category a: 1,721,700 stock options out of the total of 2,295,478
 reserved for grant of options having an exercise price equal to the
 fair market value of the underlying equity shares on the date of grant;
 and
 
 category B: 573,778 stock options out of the total of 2,295,478
 reserved for grant of options having an exercise price equal to the par
 value of the underlying equity shares (i.e., Rs. 5 per option).
 
 The DRL 2002 Plan was further amended on 27 July 2005 at the Annual
 General Meeting of shareholders to provide for stock option grants in
 two categories:
 
 category a: 300,000 stock options out of the total of 2,295,478
 reserved for grant of options having an exercise price equal to the
 fair market value of the underlying equity shares on the date of grant;
 and
 
 category B: 1,995,478 stock options out of the total of 2,295,478
 reserved for grant of options having exercise price equal to the par
 value of the underlying equity shares (i.e., Rs. 5 per option).
 
 The fair market value of a share on each grant date falling under
 Category A above is defned as the average closing price (after
 adjustment of Bonus issue) for 30 days prior to the grant, in the stock
 exchange where there is highest trading volume during that period.
 Notwithstanding the foregoing, the Compensation Committee may, after
 getting the approval of the shareholders in the Annual General Meeting,
 grant options with a per share exercise price other than fair market
 value and par value of the equity shares.
 
 As the number of shares that an individual employee is entitled to
 receive and the price of the option are known at the grant date, the
 scheme is considered as a fixed grant.
 
 In the case of termination of employment, all non-vested options would
 stand cancelled. Options that have vested but have not been exercised
 can be exercised within the time prescribed under each option agreement
 by the Committee or if no time limit is prescribed, within three months
 of the date of employment termination, failing which they would stand
 cancelled.
 
 During the current year, the Company under the DRL 2002 Plan has issued
 284,070 options to eligible employees. The vesting period for the
 options granted varies from 12 to 48 months.
 
 5. FINANCIAL INSTRUMENTS
 
 During the year ended 31 March 2011, the Company adopted the Accounting
 Standard (AS)-32 Financial Instruments: Disclosures as issued by
 ICAI, to the extent that the adoption does not confict with existing
 mandatory accounting standards and other authoritative pronouncements,
 Company law and other regulatory requirements. The objective of this
 standard is to provide information relating to various financial
 instruments that the Company holds along with the nature and extent of
 risks arising from financial instruments to which the Company is exposed
 to. Further, the standard requires disclosure for the risk management
 strategies that management adopts to address the specifc risk factors
 to the extent they are considered to be material.
 
 Cash flow hedges
 
 The Company designates certain non-derivative financial liabilities and
 derivative financial instruments, denominated in foreign currencies, as
 hedges against foreign currency exposures associated with forecasted
 foreign currency sales transactions.
 
 Exchange differences arising on re-measurement of such non-derivative
 liabilities and changes in the fair value of derivative hedging
 instruments designated as a cash fow hedges are recognized directly in
 hedging reserve and presented within reserves and surplus, to the
 extent that hedging relationship is considered effective. To the extent
 that the hedge is ineffective, changes in fair value are recognized in
 Profit and loss account. If the hedging instrument no longer meets the
 criteria for hedge accounting, expires or is sold, terminated or
 exercised, then hedge accounting is discontinued prospectively. The
 cumulative gain or loss previously recognized in hedging reserve,
 remains there until the forecast transaction occurs. If the forecast
 transaction is no longer expected to occur, then the balance in hedging
 reserve is recognized immediately in Profit and loss account. In other
 cases the amount recognized in hedging reserve is transferred to Profit
 and loss account in the same period that the hedged item affects Profit
 and loss account.
 
 During the year 31 March 2011, the Company has designated certain
 non-derivative financial liabilities as hedging instruments for hedging
 of foreign currency risk associated with forecasted transactions and
 accordingly, has applied cash fow hedge accounting for such
 relationships. Consequently foreign exchange differences amounting to Rs.
 25 arising on re-measurement of these non-derivative financial
 liabilities from their initial recognized value to the value in INR
 terms as at the reporting dates has been disclosed as part of Hedging
 reserve. The carrying value of these non-derivative financial
 liabilities amounts to Rs. 3,493 as at 31 March 2011 (as compared to Rs.
 Nil as at 31 March 2010), and has been disclosed as a part of
 Unsecured Loans in the Balance Sheet.
 
 During the year 31 March 2010, the Company has designated foreign
 currency options as hedging instruments against foreign currency risk
 associated with forecasted transactions and accordingly, applies cash
 fow hedge accounting for such relationships. The changes in the fair
 value of these foreign currency options amounting to Rs. 267 have been
 disclosed as part of Hedging reserve. The notional amount of the
 foreign currency options and fair value of these foreign currency
 options amounted to Rs. 8,082 and Rs. 295 as at 31 March 2010 respectively.
 
 The ineffective portion of the cash fow hedges amounting to Rs. Nil and Rs.
 28 have been recognised in the Profit and loss account for the year
 ended 31 March 2011 and 31 March 2010 respectively.
 
 6. FINANCIAL INSTRUMENTS (CONTINUED)
 
 In respect of foreign currency derivative contracts designated as cash
 fow hedges, the Company has transferred Rs. 263 and Rs. 75 from the hedging
 reserve into sales for the year ended 31 March 2011 and 31 March 2010
 respectively.
 
 Fair value hedges
 
 The Company does not apply hedge accounting to certain derivative
 instruments that economically hedge monetary assets and liabilities
 denominated in foreign currencies. Changes in the fair value of such
 derivatives are recognized in Profit and loss account as part of foreign
 currency gains and losses.
 
 The Company uses derivative financial instruments such as foreign
 exchange option contracts to mitigate the risk of changes in foreign
 exchange rates on trade receivables and certain other assets
 denominated in certain foreign currencies. The counterparty for these
 contracts is generally a bank or a financial institution.
 
 The Company recognized a net foreign exchange gain on derivative
 financial instruments of Rs. 661 and Rs. 658 for the year ended 31 March
 2011 and 31 March 2010 respectively. These amounts are included in
 other income.
 
 Fair Value
 
 Fair values of the foreign currency options are determined under the
 Black Scholes Merton technique by using inputs from market observable
 data and other relevant terms of the contract with counter parties
 which are banks or financial institutions.
 
 7. FINANCIAL RISK MANAGEMENT
 
 The Companys activities expose it to a variety of financial risks,
 including market risk, credit risk and liquidity risk. The Companys
 primary risk management focus is to minimize potential adverse effects
 of market risk on its financial performance. The Companys risk
 management assessment and policies and processes are established to
 identify and analyze the risks faced by the Company, to set appropriate
 risk limits and controls, and to monitor such risks and compliance with
 the same. Risk assessment and management policies and processes are
 reviewed regularly to refect changes in market conditions and the
 Companys activities. The Board of Directors and the Audit Committee is
 responsible for overseeing Companys risk assessment and management
 policies and processes.
 
 a.  credit risk
 
 Credit risk is the risk of financial loss to the Company if a customer
 or counterparty to a financial instrument fails to meet its contractual
 obligations, and arises principally from the Companys receivables from
 customers. Credit risk is managed through credit approvals,
 establishing credit limits and continuously monitoring the credit
 worthiness of customers to which the Company grants credit terms in the
 normal course of business. The Company establishes an allowance for
 doubtful debts and impairment that represents its estimate of incurred
 losses in respect of trade and other receivables and investments.
 
 Trade and other receivables
 
 The Companys exposure to credit risk is infuenced mainly by the
 individual characteristics of each customer. The demographics of the
 customer, including the default risk of the industry and country, in
 which the customer operates, also has an infuence on credit risk
 assessment. Credit risk is managed through credit approvals,
 establishing credit limits and continuously monitoring the
 creditworthiness of customers to which the Company grants credit terms
 in the normal course of business. As at 31 March 2011 and 31 March 2010
 the maximum exposure to credit risk in relation to trade and other
 receivables is Rs. 17,705 and Rs. 10,605 respectively (net of allowances).
 
 Financial assets that are neither past due nor impaired
 
 None of the Companys cash equivalents, including time deposits with
 banks, are past due or impaired. Of the total trade receivables, Rs.
 14,196 as at 31 March 2011 and Rs. 8,167 as at 31 March 2010 consists of
 customers balances which were neither past due nor impaired.
 
 b.  liquidity risk
 
 Liquidity risk is the risk that the Company will not be able to meet
 its financial obligations as they become due. The Company manages its
 liquidity risk by ensuring, as far as possible, that it will always
 have suffcient liquidity to meet its liabilities when due, under both
 normal and stressed conditions, without incurring unacceptable losses
 or risk to the Companys reputation.
 
 As at 31 March 2011 and 2010, the Company had unutilized credit limits
 from banks of Rs. 13,089 and Rs. 7,850, respectively.
 
 As at 31 March 2011, the Company had working capital of Rs. 23,456
 including cash and cash equivalents of Rs. 662 and current investments of
 Rs. 3. As at 31 March 2010, the Company had working capital of Rs. 14,604,
 including cash and cash equivalents of Rs. 3,680 and current investments
 of Rs. 3,577.
 
 The table below provides details regarding the contractual maturities
 of significant financial liabilities (other than obligations under fnance
 leases which have been disclosed in Note 27 and Bonus Debentures which
 have been disclosed in Note 29).
 
 c.  market risk
 
 Market risk is the risk of loss of future earnings or fair values or
 future cash flows that may result from a change in the price of a
 financial instrument. The value of a financial instrument may change as a
 result of changes in the interest rates, foreign currency exchange
 rates and other market changes that affect market risk- sensitive
 instruments. Market risk is attributable to all market risk-sensitive
 financial instruments including foreign currency receivables and
 payables and long-term debt. The Company is exposed to market risk
 primarily related to foreign exchange rate risk, interest rate risk and
 the market value of its investments. Thus, the Companys exposure to
 market risk is a function of investing and borrowing activities and
 revenue generating and operating activities in foreign currencies.
 
 Foreign exchange risk
 
 The Companys exchange risk arises from its foreign operations, foreign
 currency revenues and expenses, (primarily in U.S. dollars, British
 pound sterling and euros) and foreign currency borrowings (in U.S.
 dollars and euros). A significant portion of the Companys revenues are
 in these foreign currencies, while a significant portion of its costs
 are in Indian rupees. As a result, if the value of the Indian rupee
 appreciates relative to these foreign currencies, the Companys
 revenues measured in rupees may decrease. The exchange rate between the
 Indian rupee and these foreign currencies has changed substantially in
 recent periods and may continue to fuctuate substantially in the
 future. Consequently, the Company uses derivative financial instruments,
 such as foreign exchange forward and option contracts, to mitigate the
 risk of changes in foreign currency exchange rates in respect of its
 forecasted cash flows and trade receivables.
 
 The details in respect of the outstanding foreign exchange forward and
 option contracts are given in Note 17 above.
 
 In respect of the Companys forward, option contracts and
 non-derivative financial liabilities, a 10% decrease / increase in the
 respective exchange rates of each of the currencies underlying such
 contracts would have resulted in an approximately Rs. 349 increase /
 decrease in the Companys hedging reserve and an approximately Rs. 1,014
 increase / decrease in the Companys net Profit as at 31 March 2011.
 
 In respect of the Companys forward and option contracts, a 10%
 decrease / increase in the respective exchange rates of each of the
 currencies underlying such contracts would have resulted in an
 approximately Rs. 821 increase / decrease in the Companys hedging
 reserve and an approximately Rs. 745 increase / decrease in the Companys
 net Profit as at 31 March 2010.
 
 8.  DIVIDEND REMITTANCE IN FOREIGN CURRENCY
 
 The Company does not make any direct remittances of dividends in
 foreign currencies to American Depository Shares (ADS) holders. The
 Company remits the equivalent of the dividends payable to the ADS
 holders in Indian Rupees to the depositary bank, which is the
 registered shareholder on record for all owners of the Companys ADS.
 The depositary bank purchases the foreign currencies and remits
 dividends to the ADS holders.
 
 9.  RESEARCH AND DEVELOPMENT ARRANGEMENTS
 
 I-VEN Pharma arrangement
 
 During the year ended 31 March 2005, the Company had entered into an
 agreement with I-VEN Pharma Capital Limited (I-VEN) for the joint
 development and commercialization of a portfolio of 36 generic drug
 products. As per the terms of the agreement, I-VEN has a right to fund
 up to 50% of the project costs (development, registration and legal
 costs) related to these products and the related US Abbreviated New
 Drug Applications (ANDA) fled or to be fled, subject to a maximum
 contribution of US$ 56 millions. Upon successful commercialization of
 these products, the Company is required to pay I-VEN a royalty on net
 sales at agreed rates for a period of 5 years from the date of
 commercialization of each product.
 
 As per the agreement, in April 2010 and upon successful achievement of
 certain performance milestones specifed in the agreement (e.g.
 successful commercialization of a specifed number of products, and
 achievement of specifed sales milestones), I-VEN has a one-time right
 to require the Company to pay I-VEN a portfolio termination value
 amount for such portfolio of products. In the event I-VEN exercises
 this portfolio termination value option, then it will not be entitled
 to the sales- based royalty payment for the remaining contractual
 years.
 
 The Company and I-VEN reached an agreement to settle the portfolio
 termination value option available to I-VEN at a consideration of Rs.
 2,680 to be paid by the Company.
 
 On 1 October 2010, the Company, DRL Investments Limited (a wholly owned
 subsidiary of Dr Reddys) and I-VEN entered into an agreement regarding
 the medium of settlement for the portfolio termination value. Pursuant
 to such arrangement, controlling interest in I-VEN has been acquired by
 DRL Investments Limited; thereby making I-VEN a wholly owned subsidiary
 of the Company as of 1 October 2010. In connection with the
 transaction, the Company has advanced an amount of Rs. 2,680 to DRL
 Investments Limited and which has been disclosed as part of loans and
 advances as of 31 March 2011.
 
 10.  SChEmE OF AmALgAmATION OF PERLECAN PhARmA PRIvATE LImITED wITh ThE
 COmPANy UNDER SECTION 391 AND 394 OF ThE COmPANIES ACT, 1956
 
 In October 2008, the Board of Directors approved a scheme of
 amalgamation (the Scheme) of Perlecan Pharma Private Limited
 (transferor Company) with the Company (transferee Company) under
 section 391 and 394 of the Companies Act, 1956. In January 2009, the
 Company fled a petition for approvals of the Scheme with the Honble
 High Court of Andhra Pradesh (the Court). The Court approved the
 Scheme vide its order dated 12 June 2009 with the appointed date as 1
 January 2006.
 
 From the effective date, the authorised share capital of the transferor
 Company shall stand combined with the authorised share capital of the
 transferee Company.  Upon the Scheme becoming fully effective, the
 authorised share capital of the Company would be Rs. 1,200 divided into
 240,000,000 equity shares of Rs. 5/- each.
 
 The amalgamation which was in the nature of a merger was accounted for
 as prescribed by the Accounting Standard 14 – Accounting for
 Amalgamation (hereinafter referred to as AS-14) and in accordance
 with the requirements of the approved Scheme in the previous year
 2009-10.
 
 Although the scheme of amalgamation required retrospective accounting
 from the period 1 January 2006, since the court approvals were received
 after the earlier year financial statements were authorised, the
 amalgamation was accounted in 2009-10 and in accounting for such
 amalgamation the net results of transactions of the transferor Company
 for the years ended 31 March 2006, 31 March 2007, 31 March 2008 and 31
 March 2009 were included in 2009-10 financial statements of the Company
 as a single line item. The Profit and loss account of the Company for
 the aforesaid years would have been as disclosed below, had the effect
 of the Scheme been given in the respective years:
 
 11.  Investments include an equity investment of Rs. 16,146 (previous
 year: Rs. 15,428) in Lacock Holdings Limited, Cyprus (Lacock), a
 wholly-owned subsidiary of the Company. As at 31 March 2011, the
 Company has also extended advances aggregating to Rs. 3,687 (previous
 year: Rs. 3,640) to Lacock. The Company participates in the German
 generics business through step-down subsidiaries of Lacock, i.e. Reddy
 Holdings GmbH and betapharm Arzneimittel GmbH (betapharm).
 
 Pursuant to the significant changes in the German generics market over
 the past 2 years, the Company had initiated various measures in the
 previous year to improve the Profitability. The German business has
 benefted from the positive growth arising out of the significant cost
 saving measures undertaken in the previous year. Further, the business
 had a steady growth in the tender driven market and is expected to
 continue this trend.
 
 In view of the above, the Company believes that advances granted to
 Lacock would be recovered and there is no diminution other than
 temporary in the value of investment in Lacock as at 31st March 2011.
 Accordingly, the Companys advances to and investment in Lacock have
 been carried at cost.
 
 12.  SEGMENT INFORMATION
 
 In accordance with AS-17 Segment Reporting, segment information has
 been given in the consolidated financial statements of DRL and therefore
 no separate disclosure on segment information is given in these
 financial statements.
 
 13.  ISSUANCE OF BONUS DEBENTURES
 
 Pursuant to a scheme of arrangement sanctioned by the High Court of
 Andhra Pradesh, Hyderabad, India on 19 July 2010 and subsequent
 approval of the Reserve Bank of India (on 18 January 2011) and
 no-objection from the Indian income-tax authorities (on 1 February
 2011), the Company has, on 24 March 2011, allotted 1,015,516,392, 9.25%
 Unsecured Redeemable Non-convertible Bonus Debentures (aggregating to Rs.
 5,078) in the ratio of 6 debentures of the face value of Rs. 5/- each
 fully paid up for every equity share ofRs. 5/- each held as on the record
 date i.e. 18 March 2011. The interest is payable at the end of 12, 24
 and 36 months from the initial date of issuance. The bonus debentures
 are redeemable at the end of 36 months from the initial date of
 issuance. These debentures have been listed on the Bombay Stock
 Exchange Limited and National Stock Exchange of India Limited
 
 In terms of the scheme, the Company delivered the aggregate value of
 the debentures to an on-shore escrow account of a merchant banker
 appointed by the Board of Directors. The merchant banker received the
 aforesaid amount in the escrow account for and on behalf of and in
 trust for the members entitled to receive the debentures as deemed
 dividend within the meaning of section 2 (22) of the Income-tax Act,
 1961. The merchant banker has also immediately following the receipt of
 funds in the escrow account, for and on behalf of the members, paid by
 way of subscription for allotment of the requisite number of debentures
 issued under the scheme
 
 In terms of accounting treatment set out in the scheme, the issuance of
 the aforesaid debentures (with an aggregate face value of Rs. 5,078) and
 the dividend distribution tax paid thereon (aggregating to Rs. 843) have
 been refected by transferring the corresponding amounts from the
 General Reserve of the Company. The costs associated in relation to the
 aforesaid scheme (primarily comprising directly attributable
 transaction costs aggregating toRs. 51) have been expensed along with a
 corresponding transfer from the General Reserve account. Pursuant to
 the scheme and as per the requirements of the Companies Act, 1956, the
 Company has also created a Debenture Redemption Reserve aggregating to
 Rs. 19 for the year ended 31 March 2011
 
 14. VENEZUELA CURRENCY DEVALUATION
 
 The Companys Venezuela operations are conducted as an extension of the
 parent company. On 30 December 2010, the Foreign Exchange
 Administration Commission of Venezuela (commonly referred to as the
 CADIVI) enacted a decree (exchange agreement No.14) to unify the
 offcial exchange rates at a single rate of 4.3 Venezuela Bolivars
 (VEB) per US$ by abolishing the preferential rate of 2.6 VEB per US$
 effective from 1 January 2011
 
 Further, on 13 January 2011, the CADIVI issued another decree to
 interpret the transitional requirements for the use of the new offcial
 exchange rate and described that if the following conditions were to be
 satisfed, the use of the pre-devaluation rate of 2.6 VEB per US$ would
 be permissible
 
 For fund repatriation - to the extent the CADIVI has issued approvals
 in the form of approvals of Autorización de Liquidación de Divisas
 (ALD) and which have been sent to and received by the Banco Central
 de Venezuela by 31 December 2010;
 
 For foreign currency acquisition - to the extent the CADIVI had issued
 an Authorization of Foreign Currency Acquisition (AAD) by 31 December
 2010 and the approval relates to imports for the health and food
 sectors or certain other specifed purposes.
 
 Based on the authorizations received by the Company, and in light of
 the above announcements, the Company believes that it is eligible for
 the usage of the preferential rate of 2.6 VEB per US$ in relation to
 the total value of monetary items denominated in VEB as on 31 March
 2011. Accordingly, all monetary items in the Companys Venezuelan
 operations are translated into the reporting currency at the
 preferential rate of 2.6 VEB per US$
 
 15.  COMPARATIVE FIGURES
 
 Previous years fgures have been regrouped / reclassifed wherever
 necessary to conform to current years classifcation