1) Contingent liabilities not provided for in respect of: 
 
                                                   (Rs. in Lakhs) 
 
 Particulars                                    As at           As at
                                       March 31, 2011  March 31, 2010
 
 a) Claims against the Company not 
 acknowledged as debts:
 
 Customs duty                                  705.39          210.93
 
 b)     Estimated amount of contracts 
 remaining to be executed                      930.39          426.56
 on Capital account and not provided for 
 ( net of advances)
 
 c)     Letters of credit and Bank 
 Guarantees issued by Banks                  2,202.52        1,812.73
 
 d)     Bills discounted with banks          8,511.11        7,893.38
 
 a) Term loans: Term loans from Banks are secured by equitable mortgage
 of Land and buildings and hypothecation of plant and machinery located
 at Jeedimetla, Gagillapur and Bonthapally on pari passu basis.
 
 Term loans are further secured by second charge on hypothecation of
 stocks of raw materials, finished goods, semi finished goods and
 receivables. The term loans from Kotak Mahindra Bank, Exim Bank and
 State Bank of Travancore are further secured by personal guarantee of
 the Managing Director.
 
 b) Working capital facilities: The working capital facilities from
 Banks are secured by hypothecation of stocks of raw materials, finished
 goods, semi finished goods and receivables on pari passu basis. The
 working capital facilities are further secured by a second charge on
 the fixed assets of the Company on pari passu basis.
 
 c) Hire purchase loans are secured by hypothecation of the asset
 purchased.
 
 8) Licensed, Installed capacity and actual production of Active
 Pharmaceutical Ingredients (APIs), Pharmaceutical Formulation
 Intermediates (PFIs) (As certified by the Management)
 
 11) During the year, the Company has capitalised borrowing costs of Rs.
 44.92 lakhs (Previous year nil)
 
 b) Assets: All the assets of the Company except the debtors and loans
 and advances amounting to Rs. 2,447.69 lakhs (Previous year Rs.
 1,935.12 lakhs), are within India.
 
 13) Related party disclosures required as per Accounting Standard
 (AS-18) on Related party disclosures issued by the Institute of
 Chartered Accountants of India, are as below:
 
 a) Names of related parties and the description of relationship
 
 SL.  Name Relationship
 
 No
 
 (i) Granules USA Inc Wholly owned subsidiary Company
 
 (ii) GIL Lifesciences Private Limited Wholly owned subsidiary Company
 
 (iii) Granules Singapore Pte Ltd Wholly owned subsidiary Company
 
 (iv) Granules-Biocause Pharmaceutical Co. Ltd Joint-Venture
 
 (v) Key management personnel: Managing Director
 
 Shri C. Krishna Prasad 
 
 (vi) Others:
 
 Dr. C. Nageswara Rao Non Executive Chairman
 
 Mr.CHarsha Executive Director
 
 (vii) Mr.Vijay Ramanavarapu Consultant
 
 14) Employee Benefits
 
 a) Defined benefit plans:
 
 The following table sets forth the status of the Gratuity Plan of the
 Company and the amounts recognised in the Balance Sheet and Profit and
 Loss Account:
 
 15) Employee Stock Option Plan
 
 Granules India Equity Option Plan 2002
 
 a) Pursuant to the decision of the shareholders at their meeting held
 on July 30, 2002, the Company has formulated an Employee Stock Option
 Plan 2002 to be administered by the Compensation & Remuneration
 Committee of the Board of Directors.
 
 b) Under the Plan, options not exceeding 3,91,082 have been reserved to
 be issued to the eligible employees, with each option conferring a
 right upon the employee to apply for one equity share.
 
 c) The exercise price of the options is the closing market price of the
 shares on that stock exchange where there is highest trading volume
 prior to the date of the grant i.e. the date of the Compensation &
 Remuneration Committee meeting at which the grant of options is
 approved.
 
 d) Under the above Scheme, options were granted in three tranches viz.
 Grant I, Grant II & Grant III. The options granted under the Plan would
 vest not less than one year and not more than five years under Grant I
 & II and two years under Grant III from the respective date of grant of
 the options.
 
 e) The exercise price being equal to the closing market price
 prevailing on the date prior to the date of grant, there is no deferred
 compensation cost to be amortised over the vesting period.
 
 18) Sundry debtors include a sum of Rs. 4,150.83 lakhs (Previous year:
 Rs. 3,554.15 lakhs) due from a subsidiary Company
 
 19) Amortisation of Miscellaneous Expenditure:
 
 a) GDR issue expenses of Rs. 151.89 lakhs carried forward from earlier
 years are amortised over a period of 5 years commencing from the year
 in which the Projects commence commercial production. Tablet Block at
 Gagillapur had commenced commercial production during September 2008,
 hence the issue expenses are proportionately amortised.
 
 b) The Company has implemented a Voluntary Retirement Scheme (VRS). The
 total cost of separation ofRs. 15.57 lakhs excluding Gratuity under the
 Gratuity scheme applicable to the employees is amortised over a period
 of 5 years.
 
 20) The Government of Andhra Pradesh, Commissionerate of Industries has
 vide its Letter No.20/2/9/0444/ID dated October 11, 1999 and its
 clarification vide Letter dated August 4, 2001 determined an
 eligibility of Rs. 184.12 lakhs towards Sales tax deferment on the sale
 of Paracetamol and the Sales tax payable by the Company for a period of
 14 years commencing from June 30, 1998 to June 29, 2012 is deferred.
 The liability of Rs. 75.24 lakhs as at March 31, 2011 (Previous year
 Rs. 75.24 lakhs) for the deferred Sales tax is shown under unsecured
 loans.
 
 21) In terms of accounting policy 11 for the accrual of export
 benefits, estimated benefits of Rs. 150.57 lakhs (Previous year Rs.
 146.16 lakhs) have been taken into account under the DEEC/DEPB Schemes.
 
 23) Previous year''s figures have been regrouped / reclassified wherever
 necessary to confirm to current year''s classification.
 
 24) Figures in Balance Sheet and Profit & Loss account have been
 rounded off to the nearest Rupee and figures in Notes have been rounded
 off to the nearest thousand and have been expressed in terms of
 decimals of thousands.