i) Basis of Accounting
 
 The Financial Statements are prepared to comply in all material aspects
 with the accounting principles generally accepted in India, including
 the applicable Accounting Standards notified under section 211(3C) of
 the Companies Act,1956 and the relevant provisions of the Companies
 Act,1956.
 
 ii) Fixed Assets (including Intangibles), Depreciation and Amortisation
 
 Fixed assets are stated at cost less accumulated depreciation and
 amortisation. The Company capitalises all costs relating to the
 acquisition and installation of fixed assets. Expenditure directly
 related to the setting up of new projects, is capitalised as an
 indirect cost towards construction of the fixed assets.
 
 Depreciation is provided using the straight line method, pro-rata to
 the period of use of assets, based on the useful lives of fixed assets
 as estimated by management, or at the rates specified in Schedule XIV
 of the Companies Act, 1956, whichever is higher. Brands/Intellectual
 property rights are amortised from the month of products
 launch/commercial production, over the estimated economic life not
 exceeding 10 years.
 
 Fixed assets having aggregate cost of Rs 5,000 or less are depreciated
 fully in the year of acquisition.
 
 The Company has estimated the useful life of its assets as follows:
 
 Category                          Estimated useful life (in years)
 
 Factory and Other Building                  30 - 55
 
 Plant and Machinery                          8 - 20
 
 Vehicles                                     5 - 6
 
 Equipments and Air conditioners              4 - 20
 
 Furniture and Fixtures                           10
 
 Computer Software                                 5
 
 Brands                                       5 - 10
 
 Leasehold land and improvement is amortised over the period of lease.
 
 iii) Borrowing Costs
 
 Borrowing costs that are attributable to the acquisition and
 construction of a qualifying asset are capitalised as a part of the
 cost of the asset. Other borrowing costs are recognised as an expense
 in the year in which they are incurred.
 
 iv) Impairment of Assets
 
 The Company assesses at each Balance Sheet date whether there is any
 indication that an asset may be impaired. If any such indication exist,
 the Company estimates the recoverable amount of the asset. If such
 recoverable amount of the asset or the recoverable amount of the cash
 generating unit to which the asset belongs is less than its carrying
 amount, the carrying amount is reduced to its recoverable amount. The
 reduction is treated as an impairment loss and is recognised in the
 Profit and Loss Account. If, at the Balance Sheet date, there is an
 indication that if a previously assessed impairment loss no longer
 exist, the recoverable amount is reassessed and the asset is reflected
 at the recoverable amount.
 
 v) Foreign Currency Transactions
 
 a) Foreign currency transactions are recorded at the exchange rates
 prevailing on the date of such transactions. Monetary assets and
 liabilities as at the Balance Sheet date are translated at the rates of
 exchange prevailing at the date of the Balance Sheet. Gain/Loss arising
 on account of differences in foreign exchange rates on
 settlement/translation of monetary assets and liabilities are
 recognised in the Profit and Loss Account, unless they are considered
 as an adjustment to borrowing costs.
 
 b) Gain/Loss on account of foreign exchange fluctuation in respect of
 liabilities in foreign currencies specific to acquisition of fixed
 assets are recognised in the Profit and Loss Account.
 
 vi) Investments
 
 Long-term investments are stated at cost. Provision, where necessary,
 is made to recognise a decline, other than temporary, in the value of
 the investments.
 
 vii) Inventories
 
 Inventories of finished goods, consumable store and spares are valued
 at cost or net realisable value, whichever is lower. Cost of raw
 materials and packing materials is ascertained on a weighted average
 cost basis. Cost of work-in- process and finished goods include the
 cost of materials consumed, labour and manufacturing overheads. Excise
 and customs duty accrued on production or import of goods, as
 applicable, is included in the valuation of inventories.  Net
 realisable value is the estimated selling price in the ordinary course
 of business, less the estimated costs of completion and selling
 expenses.
 
 The Company considers several factors in determining the allowance for
 slow moving, obsolete and other non-saleable inventory including
 estimated shelf life, planned product discontinuances, price changes,
 ageing of inventory and introduction of competitive new products, to
 the extent each of these factors impact the Companys business and
 markets.  The Company adjusts the inventory provision to reflect its
 actual experience on a periodic basis.
 
 viii) Employee Benefits
 
 Long-term Employee Benefits
 
 In case of Defined Contribution plans, the Companys contributions to
 these plans are charged to the Profit and Loss Account as incurred.
 Liability for Defined Benefit plans is provided on the basis of
 valuations, as at the Balance Sheet date, carried out by an independent
 actuary. The actuarial valuation method used for measuring the
 liability is the Projected Unit Credit method. The estimate of future
 salary increases considered takes into account the inflation,
 seniority, promotion and other relevant factors. The expected rate of
 return on plan assets is the Companys expectation of the average
 long-term rate of return expected on investments of the fund during the
 estimated term of the obligations. Plan assets are measured at fair
 value as at the Balance Sheet date.
 
 ix) Revenue Recognition
 
 Sale of goods
 
 Revenue is recognised when the significant risks and rewards of
 ownership have been transferred to the buyer, recovery of the
 consideration is probable, the associated costs and possible return of
 goods can be estimated reliably. Revenue from the sale of goods
 includes excise duty and sales tax and is measured at the fair value of
 the consideration received or receivable, net of returns and applicable
 trade discounts and allowances.
 
 Revenue from contract research is recognised in profit and loss account
 when right to receive a non-refundable payment from out-licensing
 partner has been established.
 
 The Company accounts for sales returns by recording a provision based
 on the Companys estimate of expected sales returns. The Company deals
 in various products and operates in various markets. Accordingly, the
 Companys estimate of sales returns is determined primarily by its
 experience in these markets. In respect of established products, the
 Company determines an estimate of sales returns provision primarily
 based on its historical experience with such sales returns.
 Additionally, other factors that the Company considers in determining
 the estimate include levels of inventory in the distribution channel,
 estimated shelf life, product discontinuances, price changes of
 competitive products and introduction of competitive new products, to
 the extent each of these factors impact the Companys business and
 markets. The Company considers all these factors and adjusts the sales
 return provision to reflect its actual experience. With respect to new
 products introduced by the Company, those have historically been either
 extensions of an existing line of products where the Company has
 historical experience or in therapeutic categories where established
 products exist and are sold either by the Company or its competitors.
 
 Services
 
 Revenue from services rendered is recognised in profit and loss account
 as the underlying services are performed.
 
 Export entitlements
 
 Export entitlements from government authorities are recognised in
 profit and loss account when the right to receive credit as per the
 terms of the scheme is established in respect of the exports made by
 the Company, and where there is no significant uncertainty regarding
 the ultimate collection of the relevant export proceeds.
 
 Dividend and Interest Income
 
 Dividend income is recognised when the unconditional right to receive
 the income is established. Income from interest on deposits, loans and
 interest bearing securities is recognised on the time proportionate
 method.
 
 x) Research and Development Expenditure
 
 Capital expenditure on Research and Development (R & D) is capitalised
 as fixed assets. Development cost relating to the new and improved
 product and/or process development is recognised as an intangible asset
 to the extent that it is expected that such asset will generate future
 economic benefits. Other research and development costs are expensed as
 incurred.
 
 xi) Taxation
 
 Current Tax
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the year.
 
 Deferred Tax
 
 Deferred tax is recognised, subject to the consideration of prudence,
 on timing differences being the difference between taxable income and
 accounting income that originate in one period and are capable of
 reversal in one or more subsequent period. Deferred tax assets are not
 recognised on unabsorbed depreciation and carry forward of losses
 unless there is virtual certainty that sufficient future taxable income
 will be available against which such deferred tax assets can be
 realised.
 
 Deferred tax assets/liabilities recognised as above is after excluding
 the amounts, which are getting reversed during the tax holiday period.
 
 xii) Leases
 
 Finance Leases
 
 Assets acquired under finance lease are recognised as assets with
 corresponding liabilities in the Balance Sheet at the inception of the
 lease at amounts equal to lower of the fair value of the leased asset
 or at the present value of the minimum lease payments. These leased
 assets are depreciated in line with the Companys policy on
 depreciation of fixed assets. The interest is allocated to periods
 during the lease term so as to produce a constant periodic rate of
 interest on the remaining balance of the liability for each period.
 
 Operating Leases
 
 Lease rent in respect of assets taken on operating lease are charged to
 the Profit and Loss Account as per the terms of lease agreements.
 
 xiii) Employee Stock Option Schemes (ESOS)
 
 The Company accounts for compensation expense under the Employee Stock
 Option Schemes using the intrinsic value method as permitted by the
 Guidance Note on Accounting for Employee Share-based Payments issued
 by the Institute of Chartered Accountants of India. The difference
 between the market price and the exercise price as at the date of the
 grant is treated as compensation expense and charged over the vesting
 period.
 
 xiv) Provisions and Contingent Liabilities
 
 The Company recognises a provision when there is a present obligation
 as a result of a past event that probably requires an outflow of
 resources and a reliable estimate can be made of the amount of the
 obligation. A disclosure for a contingent liability is made when there
 is a possible obligation or a present obligation that may, but probably
 will not, require an outflow of resources. Where there is a possible
 obligation or a present obligation that the likelihood of outflow of
 resources is remote, no provision or disclosure is made.