a) Accounting Convention
 
 The financial statements have been prepared under the historical cost
 convention, on an accrual basis of accounting, to comply in all
 material respects with the notified accounting standards by the
 Companies Accounting Standards Rules, 2006 and the relevant provisions
 of the Companies Act, 1956. The accounting policies discussed more
 fully below, are consistent with those used in the previous year.
 
 b) Use of Estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period end. Although these estimates are based upon managements best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 c) Inflation
 
 Assets and liabilities are shown at historical cost except revalued
 assets, which are shown at revalued amounts. No adjustments are made
 for changes in purchasing power of money.
 
 d) Fixed Assets
 
 i.  Fixed assets are recorded at cost of acquisition or construction
 less CENVAT/Service Tax/VAT credit availed. Revalued assets are
 recorded at revalued amounts.
 
 ii.  Project expenses pending allocation are apportioned to the fixed
 assets of the project proportionately.
 
 iii.  Cost of borrowing for assets taking substantial time to be ready
 for use is capitalised for the period up to the time the asset is ready
 for use.
 
 iv.  Intangible Assets are recorded at cost of acquisition.
 
 v.  Leasehold land is amortised over the leasehold period.
 
 e) Investments
 
 Long term Investments are stated at cost. Provisions are made for
 diminution in value of investments other than temporary in nature.
 Current Investments are stated at cost or market value which ever is
 lower.
 
 f) Depreciation, Amortisation and Impairment
 
 i) Depreciation on all assets of the Company is charged on straight
 line method over the useful life of assets estimated by the management
 in the manner provided in Schedule XIV of the Companies Act, 1956 for
 the proportionate period of use during the year. Intangible assets are
 amortised over the economic useful life estimated by the management.
 
 ii) The Company carries out exercise of assessment of any impairment to
 its fixed assets as at each balance sheet date. Changes in level of
 impairment are accounted in Profit and Loss Account separately.
 Impairment loss in respect of assets sold / scrapped are reversed and
 consequent profit or loss on such sale is accounted.
 
 Impairment loss, if any, is provided to the extent, the carrying amount
 of assets exceeds their recoverable amount. Recoverable amount is
 higher of an assets net selling price and its value in use. Value in
 use is the present value of estimated future cash flows expected to
 arise from the continuing use of an asset and from its disposal at the
 end of its useful life.
 
 Depreciation charged on assets impaired is adjusted in future period
 over its remaining useful life.
 
 g) Inventories
 
 Items of inventories are valued on the basis given below :
 
 Raw Materials and Packing 
 Materials                  a) At Cost net of CENVAT/VAT
                               computed on First-in-First-out method.
 
                            b) Bulk drugs produced for captive 
                               consumption are valued at cost.
 
 Work-in-process and 
 Finished Goods                At cost including material cost net
                               of CENVAT, labour cost and all 
                               overheads other than selling and 
                               distribution overheads for 
                               work-in-process and the same or
                               net realisable value, whichever is 
                               lower in case of finished goods 
                               except physicians samples which 
                               are valued at cost as computed above.
                               Excise duty is considered as cost for
                               finished goods wherever applicable.  
 
 Stores and Spares             Stores and spare parts are valued at
                               purchase cost computed on 
                               First-in-First-out method.  
 
 h) Employee Benefits
 
 i.  Retirement benefit in the form of provident fund is a defined
 contribution scheme and contributions are charged to the Profit and
 Loss Account for the year/period when the contributions are due.
 
 ii.  Gratuity being a defined benefit obligation is provided on the
 basis of an actuarial valuation made at the end of each year/ period.
 
 iii.  Leave encashment is recognised on the basis of an actuarial
 valuation made at the end of each year.
 
 iv.  Actuarial gains/losses are immediately taken to profit and loss
 account and are not deferred.  
 
 v.  Leave Travel Assistance (LTA) liability has been provided on the
 basis of actual accumulated obligation.
 
 i) Excise Duty and CENVAT Credit
 
 I.  The excise duty expenses are bifurcated into three components:
 excise duty expenses related to sales is reduced from gross sales,
 excise duty relating to the difference between the closing and opening
 stock of finished goods is recognized in the material cost and
 inventory adjustments and the un-recovered excise duty is recognized
 under manufacturing and other expenses.
 
 II.  CENVAT credit utilised during the year is accounted in excise duty
 and unutilised CENVAT balance at the year end is considered as advance
 excise duty.
 
 j) Service Tax Credit
 
 Service tax credit utilised during the year towards excise liability is
 accounted in excise duty and unutilised service tax credit at the
 year-end is considered as advance excise duty.
 
 k) Sales
 
 Revenue from sale of products is recognized on transfer of all
 significant risk and rewards of ownership of the products on to the
 customers, which is generally on dispatch of goods .Local sales include
 excise duty and sales tax.
 
 l) Foreign Exchange Transactions
 
 Transactions denominated in foreign currency are recorded at the
 exchange rate on the date of transaction. The exchange gain/ loss on
 settlement / negotiation during the year is recognised in the Profit
 and Loss Account.
 
 Foreign currency transactions remaining unsettled at the end of the
 year are converted at year-end rates. Gain or loss arising on account
 of transactions covered by forward contract is recognised over the
 period of contracts.
 
 Current assets and current liabilities at the end of the year are
 converted at the year end rate and the resultant gain or loss is
 accounted for in the Profit and Loss Account.
 
 The overseas trading and non trading offices are integral foreign
 operation and are accounted accordingly.
 
 m) Derivative instruments and hedge accounting
 
 The Company uses foreign currency forward contracts and currency
 options to hedge its risks associated with foreign currency
 fluctuations relating to certain firm commitments and forecasted
 transactions. The Company designates these hedging instruments as cash
 flow hedges applying the recognition and measurement principles set out
 in the Accounting Standard 30 Financial Instruments: Recognition and
 Measurement (AS–30).The use of hedging instruments is governed by the
 Company s policies approved by the Board of Directors, which provide
 written principles on the use of such financial derivatives consistent
 with the Companys risk management strategy.
 
 Hedging instruments are initially measured at fair value, and are
 remeasured at subsequent reporting dates. Changes in the fair value of
 these derivatives that are designated and effective as hedges of future
 cash flows are recognised directly in shareholders funds and the
 ineffective portion is recognised immediately in the profit and loss
 account.
 
 Changes in the fair value of derivative financial instruments that do
 not qualify for hedge accounting are recognised in the profit and loss
 account as they arise.
 
 Hedge accounting is discontinued when the hedging instrument expires or
 is sold, terminated or exercised or no longer qualifies for hedge
 accounting. At that time for forecasted transactions, any cumulative
 gain or loss on the hedging instrument recognised in shareholders
 funds is retained there until the forecasted transaction occurs. If a
 hedged transaction is no longer expected to occur, the net cumulative
 gain or loss recognised in shareholders funds is transferred to the
 profit and loss account for the period
 
 n) Research and Development
 
 Revenue expenditure on research and development is charged to Profit
 and Loss Account in the year in which it is incurred. Capital
 expenditure on research and development is considered as an addition to
 fixed assets.
 
 o) Revenue Recognition
 
 i. In respect of incentives attributable to the export of goods, the
 Company following the accounting principle of matching revenue with the
 cost has recognised export incentive receivable when all conditions
 precedent to the eligibility of benefits have been satisfied and when
 it is reasonably certain of deriving the benefit. Since these schemes
 are meant for neutralisation of duties and taxes on inputs pursuant to
 exports, the same are grouped under material costs.
 
 ii.  The other export incentives that do not arise out of
 neutralisation of duties and taxes are disclosed under income from
 operations.
 
 iii. Revenue in respect of insurance/other claims, commission, etc. are
 recognised only when it is reasonably certain that the ultimate
 collection will be made.
 
 iv. Interest income is recognised on time proportion method basis
 taking into account the amounts outstanding and the rate applicable.
 
 v.  Dividend income is accounted when the right to receive the same is
 established.
 
 p) Borrowing Cost
 
 Borrowing costs directly attributable to the acquisition or
 construction of qualifying assets are capitalized. Other borrowing
 costs are recognized as expenses in the period in which they are
 incurred. In determining the amount of borrowing costs eligible for
 capitalization during a period, any income earned on the temporary
 investment of those borrowings is deducted from the borrowing costs
 incurred.
 
 q) Employee Stock Option Scheme
 
 Employee stock options are evaluated and accounted on intrinsic value
 method as per the accounting treatment prescribed under Guidance Note
 on Accounting for Employee Share-based payments issued by the ICAI
 read with SEBI (Employee Stock Option Scheme & Employee Stock Purchase
 Scheme) Guidelines, 1999 issued by Securities and Exchange Board of
 India. Accordingly the excess of market value of the stock options as
 on the date of grant over the exercise price of the options is
 recognized as deferred employee compensation and is charged to profit
 and loss account on graded vesting basis over the vesting period of the
 options. The un-amortized portion of the deferred employee compensation
 is reduced from Employee Stock Option Outstanding which is shown under
 Reserves and Surplus.
 
 r) Taxation
 
 Tax expenses comprise Current Tax and Deferred Tax.: