NOTE 1:
 
                                                            (Rs. in Lacs)
 
                                           Year Ended        Year Ended 
                                     31st March, 2012  31st March, 2011
 
 CONTINGENT LIABILITIES :
 
 a) Letters of Credit                      3,308.91          3,242.89
 
 b) Bank Guarantees                        9,689.04            342.55
 
 c) Corporate Guarantees to Subsidiary    16,034.65          8,673.47
 
 d) Disputed liability in respect of :
 
 i) Income tax *                             268.58            268.58
 
 ii) Sales tax                                36.21             17.56
 
 iii) Customs Duty                            25.00             25.00
 
 iv) Service Tax                             492.62                 -
 
 * Includes demand of Rs. 216.53/- lacs 
 decided in favour of the Company
 but disputed by Income-tax Department.
 
 e) Estimated amount of contracts 
 remaining to be executed on Capital         230.70           1869.96 
 Account and not provided for.
 
 2. The balance in respect of trade receivables and loans & advances
 are subject to confirmations by the respective parties. The balances of
 trade payables were confirmed at random and reconciliations /
 adjustments have been made in such accounts, wherever necessary.
 
 3 HEDGING AND DERIVATIVES
 
 Pursuant to ICAI Announcement Accounting for Derivatives on the early
 adoption of Accounting Standard 30 - Financial Instruments :
 Recognition and Measurement (AS 30), the company has early adopted
 AS 30 with effect from October 1, 2008, to the extent that the adoption
 does not conflict existing mandatory accounting standards and other
 authoritative pronouncements, Company Law and other regulatory
 requirements. Pursuant to the adoption :-
 
 a) Transitional Gain representing the Gain on fair valuation of foreign
 currency options, determined to be ineffective cash flow hedges on the
 date of adoption, amounting to Rs. 667.67 Lacs has been adjusted against
 the opening balance of General Reserve Account in the Balance Sheet.
 
 b) Gain on the fair valuation of forward covers, which qualify as
 effective cash flow hedge amounting to Rs. 206.18 Lacs, on the date of
 adoption, has been recognised in the hedging reserve account.
 
 4 SEGMENT INFORMATION
 
 The company is primarily engaged and deals in pharmaceuticals & related
 products, which in the context of Accounting Standard -17, is the only
 business segment and has been identified as the primary reporting
 segment. Accordingly, the information appearing in these financial
 statements relate to the aforesaid primary reporting segment.
 
 Secondary segmental reporting is performed on the basis of the
 geographical locations of customers. The geographical segments
 considered for disclosure are based on the revenue within India
 (including sales to customers located in India and service income
 accrued in India) and revenues outside India (sales to customers
 located outside India).
 
 5 Long term loans and advances include Rs. 3434.20 Lacs advances against
 acquisition of trade mark.
 
 6.  During the year under review, the Income Tax authorities had
 carried out search operations in the office and factory premises of the
 Company.  The liability, if arises, on completion of block assessment
 proceedings under the provisions of the Income Tax Act, 1961, will be
 provided as and when ascertained.
 
 7.  The Board of Directors of the Company has at its meeting held on
 2nd August 2012 approved Scheme of Arrangement for merger of Elder
 Health Care Ltd. with the Company under sections 391 to 394 of the
 Companies Act, 1956, subject to the approvals of shareholders and other
 appropriate authorities.
 
 The Scheme of Arrangement will become effective from 1st April 2012. On
 the approval of the Scheme of Arrangement, it is proposed to allot 100
 equity shares of Rs.10/- each of the Company for every 358 equity
 shares of Rs.10/- each held by the shareholders of Elder Health Care
 Ltd.
 
 8.  The revised schedule VI notified under Companies Act 1956 has
 become applicable to the Company during the current year. The previous
 years figures have been re-grouped, re-arranged, re-worked &
 reclassified, wherever necessary, to conform to revised schedule VI
 classification and are to be read in relation to the amounts and other
 disclosures relating to the current year.