1.1 Basis of accounting and preparation of financial statements
 
 The financial statements of the Company have been prepared in
 accordance with the Generally Accepted Accounting Principles in India
 (Indian GAAP) to comply with the Accounting Standards notified under
 the Companies (Accounting Standards) Rules, 2006 (as amended) and the
 relevant provisions of the Companies Act, 1956. The financial
 statements have been prepared on accrual basis under the historical
 cost convention except for certain fixed assets that are carried at
 revalued amounts.
 
 1.2 Use of Estimates
 
 The preparation of the financial statements in conformity with Indian
 GAAP requires the Management to make estimates and assumptions
 considered in the reported amounts of assets and liabilities (including
 contingent liabilities) and the reported income and expenses during the
 year. The Management believes that the estimates used in preparation of
 the financial statements are prudent and reasonable. Future results
 could differ due to these estimates and the differences between the
 actual results and the estimates are recognized in the periods in which
 the results are known / materialized.
 
 1.3 Inventories
 
 (i) Inventories other than by-products are valued at lower of cost and
 net realizable value.
 
 (ii) In respect of work-in-process and finished goods, cost includes
 all applicable production overheads incurred in bringing such
 inventories to their present location and condition. Cost also includes
 all taxes and duties, but excludes duties and taxes that are
 subsequently recoverable from taxing authorities.
 
 (iii) In respect of Raw materials, bought out items, consumables and
 stores and spares, cost is determined based on weighted average cost
 basis.
 
 (iv) Inventories of by-products are valued at estimated net realizable
 value.
 
 1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)
 
 Cash comprises cash on hand and demand deposits with banks. Cash
 equivalents are short-term balances (with an original maturity of three
 months or less from the date of acquisition), highly liquid investments
 that are readily convertible into known amounts of cash and which are
 subject to insignificant risk of changes in value.
 
 1.5 Cash flow statement
 
 Cash flows are reported using the indirect method, whereby profit /
 (loss) before extraordinary items and tax is adjusted for the effects
 of transactions of non-cash nature and any deferrals or accruals of
 past or future cash receipts or payments. The cash flows from
 operating, investing and financing activities of the Company are
 segregated based on the available information.
 
 1.6 Depreciation and amortization
 
 (i) Depreciation on fixed assets (other than revalued land and
 buildings and leased assets) is calculated on straight line method on
 following basis:
 
 Assets acquired up to June 30, 1987 are on the basis of specified period
 under section 205(2) (b) of the Companies Act, 1956.
 
 In respect of assets acquired after June 30, 1987, except assets
 relating to Nutraceutical Division, depreciation is charged based on
 estimated useful life of the assets at rates which are higher than the
 rates specified in Schedule XIV of the Companies Act, 1956 The
 depreciation rates followed are specified below : -
 
 Buildings    : 1.67% to 3.65%
 
 Plant and 
 Machinery    : 4.75% to 25.89%
 
 Vehicles     : 23.75%
 
 Computers    : 31.67%
 
 Furniture    : 6.67 % to 33.33 %
 
 Office 
 Equipment    : 4.75 % to 23.75 %
 
 In respect of assets relating to Nutraceuticals Division, assets are
 depreciated at rates specified in Schedule XIV of the Companies Act,
 1956.
 
 (ii) In respect of additions and deletions during the year,
 depreciation charge is provided on pro-rata basis.
 
 (iii) Leased assets are fully depreciated over the primary lease
 period.
 
 (iv) Assets costing individually Rs 5,000 or less are fully depreciated
 in the year of addition.
 
 (v) The difference between the depreciation for the year on revalued
 buildings and depreciation calculated on the original cost is recouped
 from the fixed assets revaluation reserve.
 
 (vi) Cost of patent is amortized over a period of 3 years.
 
 1.7 Revenue Recognition
 
 i) Sales are recognized, net of returns and trade discounts, on
 transfer of significant risks and rewards of ownership to the buyer,
 which generally coincides with the delivery of goods to customers.
 Sales include excise duty but exclude sales tax and value added tax.
 
 ii) Sales include excise duty recovered and are stated net of trade
 discounts and sales returns.
 
 iii) Income from services rendered is booked based on
 agreements/arrangements with the concerned parties.
 
 iv) Export Incentive under Duty Entitlement Pass Book Scheme are
 treated as income in the year of export at the estimated realizable
 value.
 
 v) Interest income is accounted on accrual basis.
 
 vi) Dividend income is accounted for in the year in which the right to
 receive the payment is established.
 
 1.8 Fixed Assets
 
 Tangible Fixed Assets (other than those which have been revalued) are
 stated at historical cost less accumulated depreciation. Cost includes
 related taxes, duties, freight, insurance and other incidental expenses
 related to the acquisition and installation of assets and borrowing
 cost incurred up to the date when the assets are ready for its intended
 use, but excludes duties and taxes that are recoverable subsequently
 from taxing authorities. The revalued fixed assets are restated at
 their estimated current replacement values as on 30th June 1987 as
 determined by the valuers.
 
 Intangible Assets are stated at cost of acquisition less accumulated
 amortization.
 
 Leasehold land and leasehold improvements are amortized over the
 primary period of lease.
 
 1.9 Foreign Currency Transactions
 
 Premium / discount on forward exchange contracts, which are not
 intended for trading or speculation purposes, are amortized over the
 period of the contracts if such contracts relate to monetary items as
 at the Balance Sheet date. Refer Notes 1.21 and 1.22 for accounting for
 forward exchange contracts relating to firm commitments and highly
 probable forecast transactions.
 
 1.10 Investments
 
 Long term investments are stated at cost. Provision for diminution in
 value is made if the decline is other than temporary in nature. Current
 Investments are carried at lower of cost and fair value.
 
 1.11 Employee Benefits
 
 a.  Short Term Employee Benefits
 
 All employee benefits payable wholly within twelve months of rendering
 the service are classified as short term employee benefits. Short term
 employee benefits, including accumulated compensated absences, at the
 balance sheet date, are recognized as an expense as per the Company''s
 scheme based on expected obligations on undiscounted basis.
 
 b.  Long Term Employee Benefits
 
 The obligation for long term employee benefits such as long term
 compensated absence is provided for based on actuarial valuation as at
 the balance sheet date, using the Projected Unit Credit Method.
 
 (i) Defined Contribution Plans
 
 The company''s superannuation scheme, state governed provident fund
 scheme and employee state insurance scheme are defined contribution
 plans.  Fixed contributions to the Superannuation Fund, which is
 administered by trustees and managed by LIC are charged to the Profit
 and Loss Account. The Company has no liability for future
 Superannuation Fund benefits other than its annual contribution and
 recognizes such contributions as an expense in the year incurred. The
 contribution paid/payable under the schemes is recognized during the
 period in which the employee renders the related service.
 
 (ii) Defined Benefit Plans
 
 Employees pension scheme and provident fund scheme managed by Trust are
 the company''s defined benefit plans. The company also makes annual
 contribution to a Gratuity fund administered by Life Insurance
 Corporation of India. The present value of obligation under such
 defined benefit plans is determined based on actuarial valuation as at
 the balance sheet date, using the Projected Unit Credit Method.
 Actuarial gains/losses are absorbed in the financial statements.
 
 With respect to the Provident Fund Trust administered by the company,
 the company shall make good deficiency, if any, in the interest rate
 declared by Trust over statutory limit. Having regard to the assets of
 the Fund and the return on the investments, the company does not expect
 any deficiency in the foreseeable future.
 
 (iii) Deferred Compensation cost
 
 Stock options granted to the employees under the stock option scheme
 established are evaluated as per the accounting treatment prescribed by
 the Employee Stock Option Scheme and Employee Stock Purchase Scheme
 Guidelines, 1999 issued by Securities and Exchange Board of India. The
 Company follows the intrinsic value method of accounting for the
 options and accordingly, the excess of market value of the stock
 options as on date of grant over the exercise price of the options, if
 any, is recognized as deferred employee compensation cost and is
 charged to the Profit and Loss Account on graded vesting basis over the
 vesting period of the options.
 
 1.12 Borrowing costs
 
 Borrowing costs include interest, amortization of ancillary costs
 incurred and exchange differences arising from foreign currency
 borrowings to the extent they are regarded as an adjustment to the
 interest cost. Costs in connection with the borrowing of funds to the
 extent not directly related to the acquisition of qualifying assets are
 charged to the Statement of Profit and Loss over the tenure of the
 loan. Borrowing costs, allocated to and utilized for qualifying assets,
 pertaining to the period from commencement of activities relating to
 construction / development of the qualifying asset up to the date of
 capitalization of such asset is added to the cost of the assets.
 Capitalization of borrowing costs is suspended and charged to the
 Statement of Profit and Loss during extended periods when active
 development activity on the qualifying assets is interrupted.
 
 1.13 Segment reporting
 
 The Company identifies primary segments based on
 
 the dominant source, nature of risks and returns and the internal
 organization and management structure.  The operating segments are the
 segments for which separate financial information is available and for
 which operating profit/loss amounts are evaluated regularly by the
 executive Management in deciding how to allocate resources and in
 assessing performance.
 
 The accounting policies adopted for segment reporting are in line with
 the accounting policies of the Company. Segment revenue, segment
 expenses, segment assets and segment liabilities have been identified
 to segments on the basis of their relationship to the operating
 activities of the segment.  Inter-segment revenue is accounted on the
 basis of transactions which are primarily determined based on market /
 fair value factors.  Revenue, expenses, assets and liabilities which
 relate to the Company as a whole and are not allocable to segments on
 reasonable basis have been included under unallocated revenue /
 expenses / assets / liabilities.
 
 1.14 Leases
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased assets are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the revenue account as per the lease terms.
 
 1.15 Earnings per Share
 
 Basic earnings per share is computed by dividing the profit / (loss)
 after tax (including the post tax effect of extraordinary items, if
 any) by the weighted average number of equity shares outstanding during
 the year.  Diluted earnings per share is computed by dividing the
 profit / (loss) after tax (including the post tax effect of
 extraordinary items, if any) as adjusted for dividend, interest and
 other charges to expense or income relating to the dilutive potential
 equity shares, by the weighted average number of equity shares
 considered for deriving basic earnings per share and the weighted
 average number of equity shares which could have been issued on the
 conversion of all dilutive potential equity shares.  Potential equity
 shares are deemed to be dilutive only if their conversion to equity
 shares would decrease the net profit per share from continuing ordinary
 operations.
 
 1.16 Taxes on Income
 
 Current tax is the amount of tax payable on the taxable income for the
 year as determined in accordance with the provisions of the Income Tax
 Act, 1961.
 
 Deferred tax is recognized for timing differences arising between the
 taxable income and accounting income computed using the tax rates and
 the laws that have been enacted or substantively enacted as of the
 balance sheet date. Deferred Tax assets in respect of unabsorbed
 depreciation and carry forward of losses under Tax Laws, are recognized
 if there is virtual certainty that there will be sufficient future
 taxable income available to realize such Deferred Tax assets. Other
 Deferred Tax assets are recognized if there is a reasonable certainty
 that there will be sufficient future taxable income available to
 realize such Deferred Tax assets.
 
 1.17 Insurance claims
 
 Insurance claims are accounted for on the basis of claims admitted /
 expected to be admitted and to the extent that there is no uncertainty
 in receiving the claims.
 
 1.18 Research and development expenses
 
 Revenue expenditure pertaining to research is charged to the Statement
 of Profit and Loss. Development costs of products are also charged to
 the Statement of Profit and Loss unless a product''s technological
 feasibility has been established, in which case such expenditure is
 capitalized. The amount capitalized comprises expenditure that can be
 directly attributed or allocated on a reasonable and consistent basis
 to creating, producing and making the asset ready for its intended use.
 Fixed assets utilized for research and development are capitalized and
 depreciated in accordance with the policies stated for Tangible Fixed
 Assets and Intangible Assets.
 
 1.19 Impairment of Assets
 
 The carrying values of assets / cash generating units at each Balance
 Sheet date are reviewed for impairment.  If any indication of
 impairment exists, the recoverable amount of such assets is estimated
 and impairment is recognized, if the carrying amount of these assets
 exceeds their recoverable amount. The recoverable amount is the greater
 of the net selling price and their value in use. Value in use is
 arrived at by discounting the future cash flows to their present value
 based on an appropriate discount factor. When there is indication that
 an impairment loss recognized for an asset in earlier accounting
 periods no longer exists or may have decreased, such reversal of
 impairment loss is recognized in the Statement of Profit and Loss,
 except in case of revalued assets.
 
 1.20 Provision, Contingent Liabilities and Contingent Assets
 
 Provisions are recognized only when there is a present obligation as a
 result of past events and when a reasonable estimate of the amount of
 obligation can be made. Contingent liability is disclosed for (i)
 possible obligation which will be confirmed only by future
 
 events not wholly within the control of the company or
 
 (ii) present obligations arising from past events where it is not
 probable that an outflow of resources will be required to settle the
 obligation or a reliable estimate of the amount of the obligation
 cannot be made.  Contingent assets are neither recognized nor disclosed
 in the financial statements.
 
 1.21 Hedge Accounting
 
 The Company uses foreign currency forward contracts to hedge its risks
 associated with foreign currency fluctuations relating to highly
 probable forecast transactions. The Company designates such forward
 contracts in a cash flow hedging relationship by applying the hedge
 accounting principles set out in Accounting Standard 30 Financial
 Instruments: Recognition and Measurement. These forward contracts are
 stated at fair value at each reporting date. Changes in the fair value
 of these forward contracts that are designated and effective as hedges
 of future cash flows are recognized directly in Hedging reserve
 account under Reserves and surplus, net of applicable deferred income
 taxes and the ineffective portion is recognized immediately in the
 Statement of Profit and Loss. Amounts accumulated in the Hedging
 reserve account are reclassified to the Statement of Profit and Loss
 in the same periods during which the forecasted transaction affects
 profit and loss.  Hedge accounting is discontinued when the hedging
 instrument expires or is sold, terminated, or exercised, or no longer
 qualifies for hedge accounting. For forecasted transactions, any
 cumulative gain or loss on the hedging instrument recognized in
 Hedging reserve account is retained until the forecasted transaction
 occurs. If the forecasted transaction is no longer expected to occur,
 the net cumulative gain or loss recognized in Hedging reserve account
 is immediately transferred to the Statement of Profit and Loss.
 
 1.22 Derivative contracts
 
 The Company enters into derivative contracts in the nature of foreign
 currency swaps, currency options, forward contracts with an intention
 to hedge its existing assets and liabilities, firm commitments and
 highly probable transactions. Derivative contracts which are closely
 linked to the existing assets and liabilities are accounted as per the
 policy stated for Foreign Currency Transactions and Translations.
 
 Derivative contracts designated as a hedging instrument for highly
 probable forecast transactions are accounted as per the policy stated
 for Hedge Accounting.
 
 All other derivative contracts are marked-to-market and losses are
 recognized in the Statement of Profit and Loss. Gains arising on the
 same are not recognized, until realized, on grounds of prudence.