I.  Current Tax:
 
 Current Tax is calculated as per the provisions of the Income tax Act,
 1961.
 
 II.  Deferred Tax:
 
 Deferred Tax is recognized on timing differences being the differences
 between the taxable income and accounting income that originate in one
 period and are capable of reversal in one or more subsequent periods.
 Deferred Tax Assets, subject to the consideration of prudence are
 recognized and carried forward only to the extent that there is a
 reasonable certainty that sufficient future taxable income will be
 available against which such Deferred Tax Assets can be realized. The
 tax effect is calculated on the accumulated timing difference at the
 year-end based on the tax rates and laws enacted or substantially
 enacted on balance sheet date.
 
 III.  In view of judicial pronouncements and in accordance with advice
 of the Companys Tax Advisor, no provision has been made for the
 completed assessments, which are in appeal.
 
 IV.  MAT Credit:
 
 MAT Credit entitlement is recognized only when the Company actually
 avails the MAT credit based on its annual tax computation.
 
 s) Provisions, Contingent Liabilities and Contingent Assets
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event; it is probable that an outflow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made. Provisions are not discounted to its
 present value and are determined based on best estimate required to
 settle the obligation at the balance sheet date. These are reviewed at
 each balance sheet date and adjusted to reflect the current best
 estimates.  Contingent Liabilities are not recognised but disclosed in
 notes to accounts.  Contingent assets are neither recognised nor
 recorded in financial statements.
 
 t) Government Grants
 
 The Company accounts government grants relating to specific fixed
 assets as deferred income and recognises the same proportionately over
 the useful life of the asset.
 
 u) Cash and Cash Equivalents
 
 Cash and cash equivalents in the Balance Sheet comprise cash at
 bank,cheques on hand, cash in hand and short term investments with an
 original maturity of three months or less.
 
                                            31.03.2011        31.03.2010
                                      Rupees in Crores  Rupees in Crores
 
 2.  Contingent liabilities not 
     provided for in respect of :
 
 a)  Bills discounted with banks.            106.95              87.00 
 
     Since realized                           47.85              26.48
 
 b)  Other moneys for which the Company 
     is contingently liable for tax, excise, 
     customs and other matters not accepted 
     by the Company.                          11.39              30.31
 
 c)  Claims against the Company not 
     acknowledged as debts.                    0.01               0.10
 
 d)  Corporate Guarantees given to bankers 
     of associates & subsidiaries for which 
     the Company                              30.00              30.00
     holds counter guarantees.
 
 e)  Corporate Guarantee given to others       2.28               2.28
 
 f)  Guarantees given by banks in favour 
     of Govt. & others/ Letter of Credit 
     opened against which                     96.75              33.86
     goods are not received
 
 g)  Uncalled liability on partly paid shares  4.48                  -
 
 3.  Additional information pursuant to paragraphs 3, 4, 4A, 4C and 4D
 of Part II of Schedule VI to the Companies Act, 1956
 
 Notes :- 
 
 a) As the industrial licensing in respect of drugs and pharmaceuticals
 produced by the Company has been abolished under the Industrial Policy,
 the particulars of licensed capacity are not stated.
 
 b) Installed capacity, being of a technical nature is not verified by
 the Auditors.
 
 c) Production of basic drugs/intermediates includes 1459 tonnes
 (Previous year 1088 tonnes) used for captive consumption.
 
 d) Production includes production under contract manufacturing.
 
 e) Previous years figures are given in bracket.
 
 4.  a) Amount of long term loans repayable in the following 12 months
 aggregate to Rs. 72.20 crores (Previous year Rs. 41.18 crores).  b)
 During the year the Company had raised and repaid Commercial Paper. The
 maximum outstanding amount during the year
 was Rs. 45.00 crores and the Closing balance at year end is Rs. Nil.
 
 5.  Provision for taxation includes provision for wealth tax of Rs.0.07
 crore (Previous year Rs.0.05 crore).
 
 6.  In the opinion of the Board of Directors, all the current assets,
 loans & advances have value on realisation atleast of an amount equal
 to the amount at which they are stated in the Balance Sheet.
 
 7.  Bank balances :
 
 a) Balances with scheduled banks in Schedule 8 include Rs.1.20 crore
 (Previous year Rs. 1.16 crore) in unpaid dividend account.
 
 8. The disclosure of information related to Micro, Small and Medium
 Enterprises creditors is made on the basis of information of
 registration under the Micro, Small and Medium Enterprises Development
 Act 2006 given to the Company by the creditors. This information is
 relied upon by the auditors.
 
 9. Managerial Remuneration :
 
 Managerial Remuneration does not include Stock Option Compensation cost
 relating to Joint managing Director & Independent Directors of Rs.0.01
 crore (previous year Rs. 0.04 crore) charged to Profit & Loss Account.
 
 10. Unpaid dividend does not include any amount to be credited to
 Investor Education and Protection fund.
 
 11.  a) The Company has made provision for diminution in the value of
 Investments in shares of Ipca Traditional Remedies Pvt. Ltd. and Ipca
 Pharmaceuticals Inc. USA for Rs.2.96 crores and Rs. 7.00 crores
 respectively.
 
 b) The diminution in the value of investments in shares of Tonira
 Pharma Ltd. determined on the basis of market price as on 31st March,
 2011 is not considered permanent based on the intrinsic value of the
 company. Consequently no provision for diminution in the value of
 investments in said Tonira Pharma Ltd. is considered necessary.
 
 12.  Disclosure under Accounting Standard -29 Provisions, Contingent
 Liabilities and Contingent Assets.
 
                                                     (Rupees in Crores)
 Particulars      Opening    Additions during  Amounts paid /   Closing
                  Balance            the year      reversed     Balance
                                                 during the 
                                                       year
 
 Provision for 
 wage revision 
 under negotiation   0.79           1.86              -          2.65
 
 (Previous Year)   (0.51)          (0.28)             -         (0.79)
 
 
 13.  c) ESOS Commitment Deposit:
 
 Amount received from employees/directors on grant of stock options
 pending exercise/allotment of shares is shown as share application
 money pending allotment.
 
 Note : i) Employers contribution includes payments made by the Company
 directly to its past employees.
 
 ii) The estimates of future salary increases considered in actuarial
 valuation, take account of inflation, seniority, promotion and other
 relevant factors, such as supply and demand in the employment market.  
 
 iii) The Companys Gratuity fund is managed by Life Insurance
 Corporation of India. The plan assets under the fund are deposited
 under approved securities.
 
 14.  Disclosure under Accounting Standard – 19 Leases, issued by the
 Institute of Chartered Accountants of India:
 
 The Company has taken various residential / godowns / office premises
 (including Furniture and Fittings if any) under leave and licence
 agreements for periods which generally range between 11 months to 3
 years. These arrangements are renewable by mutual consent on mutually
 agreed terms. Under some of these arrangements the Company has given
 refundable security deposits. The lease payments are recognized in the
 Profit and Loss Account under Rent.
 
 15.  a) The Company has entered into various derivatives transactions,
 which are not intended for trading or speculative purpose but to hedge
 the export receivable including future receivables and foreign currency
 loan interest rate risks.
 
 b) The Company has continued its decision not to exercise the option
 available under amendment to AS 11 relating to The effects of Changes
 in Foreign Exchange Rates in respect of its Long Term Foreign Currency
 Monetary Items in respect of foreign currency loans for the acquisition
 of fixed assets.
 
 d) The Company has an annual average exports of USD 224 Million of
 which the Company has partially hedged its receivables by the aforesaid
 options disclosed in para (a) above. The unhedged currency risk
 detailed in para (c) above has a natural hedge against the unhedged
 export receivables of USD 17.63 Million (Previous year USD 14.04
 Million) as at 31st March,2011.
 
 16.  The entire operations of the Company relate to only one segment
 viz. pharmaceuticals. As such, there is no separate reportable segment
 under Accounting Standard - AS 17 on Segment Reporting.
 
 17.  Related Party Disclosure as required by Accounting Standard – AS
 18 issued by the Institute of Chartered Accountants of India.
 
 Relationships:
 
 A.  Entities where control exists 
 
 Shareholders of Ipca Laboratories Ltd
 
 Kaygee Investments Pvt.Ltd.  
 
 Chandurkar Investments Pvt.Ltd.
 
 Subsidiaries
 
 Laboratories Ipca Do Brasil Ltda, Brazil (Under liquidation)
 
 Ipca Pharmaceuticals, Inc. USA
 
 Ipca Laboratories U.K. Ltd. United Kingdom
 
 Ipca Pharma (Australia) Pty Ltd. Australia
 
 Ipca Pharma Nigeria Ltd.,Nigeria
 
 National Druggists (Pty) Ltd.,South Africa
 
 Ipca Pharmaceuticals (Shanghai) Ltd.
 
 Ipca Pharmaceuticals Ltd. Mexico
 
 Ipca Traditional Remedies Pvt. Ltd.  
 
 Step-down Subsidiaries
 
 Ipca Pharma (NZ) Pty Ltd., New Zealand.  
 
 Joint Venture Company
 
 Activa Pharmaceuticals (FZC), UAE. (Liquidated on 09.03.2010)
 
 B.  Key Management Personnel
 
 Mr. Premchand Godha     Managing Director
 
 Mr. A.K.Jain            Joint Managing Director
 
 Mr. Pranay Godha        Executive Director
 
 C.  Associates
 
 Paschim Chemicals Pvt.Ltd.  
 
 Tonira Pharma Ltd.  
 
 Makers Laboratories Ltd.
 
 D.  Other Related Parties (Entities in which Directors or their
 relatives have significant influence) 
 
 Nipra Industries Pvt.Ltd.
 
 Keymed 
 
 Oscar Industries 
 
 Mrs. Usha P. Godha 
 
 Prabhat Foundation 
 
 Vandhara Resorts Pvt.Ltd.
 
 Loans and advances to subsidiary companies (Sr. No. i to iv) are
 without interest and there is no repayment schedule fixed. Loans and
 advances to subsidiary/associate (Sr. No. v to vii) are interest
 bearing loans subject to repayment within three years.
 
 b) Investment by the loanee in the shares of the Company
 
 None of the loanees have, per se , made investments in the shares of
 the Company.
 
 18. Previous years figures have been regrouped and rearranged wherever
 necessary.