1.  CORPORATE INFORMATION
 
 Indoco Remedies Limited (the Company) is a Public Limited Company
 domiciled in India and incorporated under the provision of the
 Companies Act, VII of 1913. Its Shares are listed on two stock
 exchanges in India. Indoco Remedies Limited is engaged in the
 manufacturing and marketing of Pharmaceutical Formulations (Finished
 Dosage Forms) and Active Pharmaceutical Ingredients (APIs). The Company
 caters to both domestic and International markets.
 
 a) Terms/rights attached to equity shares
 
 The company has only one class of equity shares having a par value of Rs
 10 per share (Refer Note No. 37 for disclosure regarding post balance
 sheet event). Each holder of equity shares is entitled to one vote per
 share. All equity shares of the Company rank pari passu in all respects
 including the right to dividend. The company declares and pays
 dividends in Indian rupees. The dividend proposed by the Board of
 Directors is subject to the approval of the shareholders in the ensuing
 Annual General Meeting.
 
 During the year ended 31st March 2012, the amount of per share dividend
 recognized as distributions to equity shareholders was Rs 1.10 on the
 face value of Rs 2/- per share (Previous year Rs 8/- on the face value of
 Rs 10/- per share.)
 
 In the event of winding-up, subject to the rights of holders of shares
 issued upon special terms and conditions, the holders of equity shares
 shall be entitled to receive remaining assets, if any, in proportion to
 the number of shares held at the time of commencement of winding-up.
 
                                                            (Rs Lakhs)
                                                Current 
                                                Year         Previous 
                                                             Year
                                                As at 
                                                31.03.2012   As at 
                                                             31.03.2011
 
 Note 2 :
 
 Contingent Liabilities not provided for:
 
 A) Matters under dispute
 
 i) Sales Tax (Rs 100.87 lakhs has been paid 
 under protest Previous year Rs 72.65 lakhs)      203.59       189.81
 
 ii) Excise / Service Tax                         365.78       370.58
 
 iii) Income Tax                                  258.22       564.09
 
 iv) In respect of claims made against 
 the Company not acknowledged as debts 
 (Labour matters)                                      -         6.12
 
 B) Bank Guarantees                               245.09       150.85
 
 C) Letters of Credit                             523.77       564.84
 
 D) Estimated amount of contracts remaining 
 to be executed on Capital Account, net of 
 advances of Rs 26.21 lakhs (Previous year 
 Rs 2,163.32 lakhs)                               598.86      2,985.02
 
 Note 3 :
 
 Company''s proposal to the Department of Scientific and Industrial
 Research (DSIR) Ministry of Science & Technology, Government of
 India for financial support under TDDP project of DSIR has been
 approved by DSIR in the previous year. Company has received Rs 20 lakhs
 as an advance under the said project. The said advance is grouped under
 the head Non-Current Liabilities - Other Long Term Liabilities at
 Note 7 forming part of the Balance Sheet.
 
 Note 4 :
 
 Tax deducted at source from Other Income consists of:
 
 Rs 7.40 lakhs on account of Professional or Technical Services (
 Previous year Rs 4.45 lakhs)
 
 Rs 15.25 lakhs on account of Interest received (Previous year Rs 29.55
 lakhs)
 
 B) Some of the ECB loans availed in JPY & SGDs have been converted into
 USD by entering into derivative contracts. The company has also entered
 into Interest Rate Swap agreements for all the ECBs. Thus, any cross
 currency movement in USD / JPY & USD / SGD as well as any movement in
 LIBOR has no impact on the future financials of the company.
 
 Note 5 :
 
 Changes in the Capital Structure post Balance Sheet date
 
 The Board of Directors in their meeting held on 29th March, 2012
 proposed to subdivide one equity share having face value of Rs 10/- each
 into five equity shares having face value of Rs 2/- each fully paid up.
 The Board of Directors also proposed to enhance the authorised capital
 from present Rs 1,800 lakhs to Rs 2,500 lakhs and also to issue Bonus
 shares in proportion to one equity share of Rs 2/- each fully paid for
 every two shares held by existing shareholders.
 
 The members of the Company have given their approval to the above
 proposals by Postal Ballot on 08th May, 2012 and the allotment of the
 bonus shares was done on 21st May, 2012.
 
 Pursuant to the above approvals by the members, the Company has issued
 Bonus share by capitalising Securities Premium account. The Equity
 share capital as on the reporting date has been increased to Rs 1,843.01
 lakhs consisting of 9, 21, 50,355 Equity shares of Rs 2/- each fully
 paid up.
 
 Accordingly, the calculation of proposed dividend has been done on the
 entire new share capital of 9,21,50,355 equity shares of Rs 2/- each
 fully paid up.
 
 Note 6 :
 
 During the year unclaimed share application money amounting to Rs 7.60
 lakhs (Previous Year NIL) has been transferred to Investor Education
 and Protection Fund.
 
 Note 7 :
 
 Donation includes amount of Rs 49,00,000 paid to South Goa District
 Congress (I) Committee and Rs10,00,000 to Goa Pradesh Committee Previous
 Year (Rs Nil ).
 
 Note 8 :
 
 The company has opted to avail the option provided under paragraph 46A
 of AS 11 regarding the effects of Effects of changes in Foreign
 Exchange Rates inserted vide notification dated December,29 2011.
 Consequently, the foreign exchange differences on long term Foreign
 Currency Monetary item is accumulated in a Foreign Currency Monetary
 item Translation Difference Account and accordingly exchange loss on
 long term foreign currency loans have been amortised over the balance
 period of such loans.
 
 Note 9 :
 
 Related Party Disclosure as required by Accounting Standard 18 issued
 by the Institute of Chartered Accountants of India.
 
 I. Related Parties
 
 A.  Enterprises that control or are controlled by the reporting
 company:
 
 Holding Companies Nil
 
 Subsidiary Companies Nil
 
 Fellow Subsidiaries Nil
 
 B.  Associates and Joint Ventures of reporting company:
 
 Associates Nil
 
 Joint Ventures Nil
 
 C.  (i) Individuals owning and having control of the reporting company:
 
 Mr. Suresh G. Kare, Mrs. Aruna S. Kare, Ms. Aditi Panandikar, Mrs.
 Madhura A. Ramani (ii) Their relatives :
 
 Dr. Milind P. Panandikar, Dr. Anup Ramani, Mr. Ramnath Kare, Mrs. Suman
 Naik, Mrs. Sudha Pai, Mrs. Laxmi Bambolkar, Mrs. Pratima Vaidya, Mrs.
 Amita Rajadhyaksha, Mrs. Meera Karnik
 
 D.  (i) Key Management personnel:
 
 Mr. Suresh G. Kare, Ms. Aditi Panandikar, Mr. Sundeep V.Bambolkar (ii)
 Their relatives:
 
 Mrs. Aruna S. Kare, Mrs. Madhura A. Ramani, Mr. Ramnath Kare, Mrs.
 Suman Naik, Mrs Sudha Pai, Mrs. Laxmi Bambolkar, Dr Milind P.
 Panandikar, Mrs. Neeta Bambolkar, Mr. Vasant Bambolcar, Ms. Manali
 Bambolkar, Mr. Paresh Bambolkar
 
 E.  Enterprises controlled by key management personnel:
 
 SPA Holdings Pvt Ltd., Shanteri Investments Pvt Ltd., Indoco Industrial
 Designers and Engineers Pvt. Ltd., Indoco Capital Markets Ltd., A K
 Services, Suresh Kare Indoco Foundation
 
 Note 10 :
 
 Miscellaneous Expenditure to the extent not written off includes Rs.
 Nil (previous year Rs. 1.40 lakhs on account of preliminary expenses
 incurred by erstwhile M/s. Shree Herbal Technologies Ltd.)
 
 Note 11 :
 
 Previous year''s figures have been regrouped and reclassified wherever
 necessary.