a) Basis of Preparation of Financial Statements:
 
 i) The financial statements of the subsidiaries and associates used in
 the consolidation are drawn upto the same reporting date as that of the
 Company, namely March 31, 2011.
 
 ii) The financial statements are prepared under the historical cost
 convention in accordance with the generally accepted accounting
 principles in India and Accounting Standards (AS) as notifed by the
 Companies (Accounting Standards) Rules, 2006.
 
 b) Principles of Consolidation:
 
 i) The financial statements of the Company and its subsidiaries have
 been consolidated in accordance with the Accounting Standard 21 (AS 21)
 Consolidated Financial Statements, on line-by-line basis by adding
 together the book value of like items of assets, liabilities, income
 and expenses, after fully eliminating intra-group balances, intra–group
 transactions and the unrealised profits / losses. Reference in these
 notes to Company, Holding Company, Companies or Group shall mean to
 include Lupin Limited, or any of its subsidiaries, unless otherwise
 stated.
 
 ii) The financial statements of the Company and its subsidiaries have
 been consolidated using uniform accounting policies for like
 transactions and other events in similar circumstances.
 
 iii) The excess of cost to the Company of its investment in the
 subsidiaries, on the acquisition dates over and above the Companys
 share of equity in the subsidiaries, is recognised in the financial
 statements as Goodwill on Consolidation and carried forward in the
 accounts [Refer note no.15 of Schedule 19(B)]. The said Goodwill is not
 amortised, however, it is tested for impairment at each Balance Sheet
 date and the impairment loss, if any is provided for.
 
 iv) Minority Interest in the net assets of the consolidated
 subsidiaries consist of:
 
 a) The amount of equity attributable to minorities as at the date on
 which the investment in a subsidiary is made and,
 
 b) The Minorities share of movements in equity since the date the
 parent-subsidiaries relationship came in existence. The losses
 applicable to the minority in excess of the minority interest in the
 equity of the subsidiary and further losses applicable to the minority,
 are adjusted against the majority interest except to the extent that
 the minority has a binding obligation to and is able to make good the
 losses. If the subsidiaries subsequently reports proft, all such profits
 are allocated to the majority interest until the minoritys share of
 losses previously absorbed by the majority has been recovered.
 
 c) Minority Interest is presented separately from the liabilities or
 assets and the equity of the shareholders in the consolidated Balance
 Sheet. Minority Interest in the income or loss of the Company is
 separately presented.
 
 v) In case of associates, where the Company directly or indirectly
 through subsidiaries holds more than 20% of equity, investments in
 associates are accounted for using equity method in accordance with
 Accounting Standard 23 (AS 23) “Accounting for Investment in Associates
 in Consolidated Financial Statements”.
 
 vi) The Company accounts for its share in the change in the net assets
 of the associates, post acquisition, after eliminating unrealised proft
 and losses resulting from transactions between the Company and its
 associates, through its Proft and Loss Account to the extent such
 change is attributable to the associates Proft and Loss Account and
 through its reserves for the balance.
 
 vii) The difference between the cost of investment in the associates
 and the share of net assets at the time of acquisition of share in the
 associates is identifed as Goodwill or Capital Reserve, as the case may
 be, and included in the carrying amount of investment in the
 associates, and so disclosed. [Refer note no. 15 (b) of Schedule
 19(B)].
 
 viii) The difference between the proceeds from sale / disposal of
 investment in a subsidiary and the carrying amount of assets less
 liabilities as of the date of sale / disposal is recognised in the
 Consolidated Proft and Loss Account as the proft or loss on sale /
 disposal of investment in subsidiary.
 
 c) Use of Estimates:
 
 The preparation of financial statements in conformity with the generally
 accepted accounting principles requires estimates and assumptions to be
 made that affect the reported amounts of Assets and Liabilities on the
 date of the financial statements and the reported amounts of Revenues
 and Expenses during the reporting period. Differences between the
 actual results and estimates are recognised in the period in which the
 same are known / materialised.
 
 d) Fixed Assets:
 
 Fixed Assets are stated at cost net of cenvat, less accumulated
 depreciation and accumulated impairment losses, if any. Cost includes
 directly attributable cost of bringing the assets to their working
 conditions for their intended use.
 
 e) Intangible Assets:
 
 Intangible Assets are recognised only if it is probable that the future
 economic benefts that are attributable to the assets will flow to the
 enterprise and the cost of the assets can be measured reliably. The
 Intangible Assets are recorded at cost and are carried at cost less
 accumulated amortisation and accumulated impairment losses, if any.
 
 f) Foreign Currency Transactions / Translation:
 
 i) Transactions denominated in foreign currency are recorded at the
 exchange rates prevailing at the date of transaction.
 
 ii) Exchange differences arising on settlements during the year in
 respect of short term monetary items denominated in foreign currency
 are recognised in the Proft and Loss Account. Exchange differences
 arising on translation of short term monetary items denominated in
 foreign currency which are outstanding as at the balance sheet date are
 translated using the exchange rates prevailing as at the balance sheet
 date and are recognised in the Proft and Loss Account.
 
 iii) In terms of Notifcation relating to AS 11 issued by the Ministry
 of Corporate Affairs in March 2009:
 
 The exchange differences arising on translation of the “Long Term
 Foreign Currency Monetary Items” at the rates different from those at
 which they were initially recorded during the period or reported in the
 previous financial statements and the exchange difference on settlement
 of such items, in so far as such items relate to the acquisition of a
 depreciable capital asset, are added or deducted as the case may be,
 from the cost of the respective asset and depreciated over the balance
 life of those assets.
 
 iv) In case of forward exchange contracts entered into to hedge the
 foreign currency exposure in respect of short term monetary items, the
 difference between the exchange rate on the date of such contracts and
 the year end rate is recognised in the Proft and Loss Account. Any
 proft / loss arising on cancellation of forward exchange contract is
 recognised as income or expense of the year. Premium / discount arising
 on such forward exchange contracts is amortised as income / expense
 over the life of contract.
 
 v) Foreign offces / branches:
 
 In respect of the foreign offces / branches of the Company, which are
 integral foreign operations, all revenues and expenses during the year
 are reported at average rate.  Outstanding balances in respect of
 monetary assets and liabilities are restated at the year-end exchange
 rates. Outstanding balances in respect of non monetary assets and
 liabilities are stated at the rates prevailing on the date of the
 transaction. Net gain / loss on foreign currency translation is
 recognised in the Proft and Loss Account.
 
 vi) Foreign Subsidiaries:
 
 In case of foreign subsidiaries, the local accounts are maintained in
 their local currency except the subsidiary company at Switzerland whose
 accounts are maintained in USD [Refer note no. 22 of Schedule 19 (B)].
 The financial statements of the subsidiaries, whose operations are
 integral foreign operations for the Company, have been translated to
 Indian Rupees on the following basis:
 
 i) All income and expenses are translated at the average rate of
 exchange prevailing during the year.
 
 ii) Monetary assets and liabilities are translated at the closing rate
 on the Balance Sheet date.
 
 iii) Non monetary assets and liabilities are translated at historical
 rates.
 
 iv) The resulting exchange difference is accounted in ‘Exchange Rate
 Difference on Translation Account and is charged / credited to the
 Proft and Loss Account.
 
 The financial statements of subsidiaries, whose operations are non
 integral foreign operations for the Company, have been translated to
 Indian Rupees on the following basis:
 
 i) All income and expenses are translated at the average rate of
 exchange prevailing during the year.
 
 ii) Monetary and non monetary assets and liabilities are translated at
 the closing rate on the Balance Sheet date.
 
 iii) The resulting exchange difference is accounted in ‘Foreign
 Currency Translation Reserve and carried in the Balance Sheet.
 
 g) Derivative Instruments and Hedge Accounting:
 
 Forward and Option Contracts in the nature of highly probable forecast
 transactions and contracts for interest rate swaps entered into for
 hedging the risk of foreign currency exposures and interest related
 risk in respect of variable rate debts respectively are accounted based
 on recognition and measurement principles stated in Accounting Standard
 30 (AS 30) “Financial Instruments: Recognition and Measurements” as
 issued by The Institute of Chartered Accountants of India. The amount
 adjusted from the Cash Flow Hedge Reserve, on the occurrence of the
 hedged transaction, is included in the Proft and Loss Account, against
 the related hedged item.
 
 h) Investments:
 
 Long-term investments are carried at cost which includes expenses
 directly incurred on acquisition of investments. Investments in equity
 / ordinary shares in foreign currency are stated at cost by converting
 at exchange rate prevailing at the time of acquisition.  Provision for
 diminution in the value of long term investments is made only if such
 decline is other than temporary. Current investments are carried at
 lower of cost and fair value.
 
 i) Inventories:
 
 Stock-in-trade and Stock of consumable stores, spares and furnace oil
 are valued at lower of cost and net realisable value.  Cost is computed
 based on moving weighted average in respect of all procured materials
 and traded fnished goods and includes appropriate share of utilities
 and other overheads in respect of work-in-process and fnished goods.
 Cost also includes all charges incurred for bringing the inventories to
 their present location and condition.  In case of subsidiaries at USA
 and Philippines, cost of fnished goods including traded goods, raw
 materials, supplies and others are computed by using the frst in frst
 out method. Cost also includes all charges incurred for bringing the
 inventories to their present location and condition.
 
 j)    Revenue Recognition:
 
 i) Revenue from sale of goods is recognised when the signifcant risks
 and rewards in respect of ownership of products are transferred by the
 Company.
 
 ii) Revenue (including in respect of insurance or other claims,
 interest etc.) is recognised when it is reasonable to expect that the
 ultimate collection will be made.
 
 iii) Revenue from product sales is stated net of returns, sales tax /
 VAT and applicable trade discounts and allowances.
 
 iv) Sale of Technology / Know-how (rights, licenses, dossiers and other
 intangibles) are recognised when performance obligation is completed
 and risk and rewards of ownership of the products are passed on to the
 customers.
 
 v) Dividend from investment is recognised as revenue when right to
 receive the payments is established.
 
 vi) Interest income is recognised on time proportionate basis.
 
 vii) Revenue from service charges is recognised on rendering of the
 related services in accordance with the terms of the agreement.
 
 k) Export Benefts:
 
 Export benefts available under prevalent schemes are accrued in the
 year in which the goods are exported and are accounted to the extent
 considered receivable.
 
 l) Excise Duty:
 
 Excise duty is accounted on the basis of payments made in respect of
 goods cleared and provision is made for goods lying in bonded
 warehouses.
 
 m) Depreciation and Amortisation:
 
 Depreciation on fxed assets is provided on straight line basis in the
 manner and at the rates prescribed in Schedule XIV to the Companies
 Act, 1956, except for the following Fixed Assets and Intangible Assets
 which are depreciated / amortised over their useful life (being lower
 than the life considering the rates prescribed in Schedule XIV to the
 Companies Act, 1956) as determined by the Management on the basis of
 technical evaluation, etc.
 
 n) Employee Benefts:
 
 a) Post Employment Benefts and Other Long Term Benefts:
 
 i) Defned Contribution Plan:
 
 Contribution for the year paid / payable to defned contribution
 retirement beneft schemes are charged to Proft and Loss Account.
 
 ii) Defned Beneft and Other Long Term Beneft Plans:
 
 Liabilities towards defned beneft plans and other long term benefts
 viz.  gratuity and compensated absences expected to occur after twelve
 months, are determined using the Projected Unit Credit Method.
 Actuarial valuations under the Projected Unit Credit Method are carried
 out at the balance sheet date. Actuarial gains and losses are
 recognised in the Proft and Loss Account in the period of occurrence of
 such gains and losses. Past service cost is recognised immediately to
 the extent benefts are vested, otherwise it is amortised on
 straight-line basis over the remaining average period until the benefts
 become vested.
 
 The retirement beneft obligation recognised in the Balance Sheet
 represents the present value of the defned beneft obligation as
 adjusted for unrecognised past service cost, and as reduced by the fair
 value of scheme assets. Any asset resulting from this calculation is
 limited to past service cost, plus the present value of available
 refunds and reductions in future contributions to the scheme.
 
 b) Short-Term Employee Benefts:
 
 Short-term employee benefts expected to be paid in exchange for the
 services rendered by employees are recognised undiscounted during the
 period employee renders services. Short term compensated absences are
 provided for based on estimates in accordance with Company rules.
 
 o) Taxes on Income:
 
 Income Taxes are accounted for in accordance with Accounting Standard
 22 (AS 22) “Accounting for Taxes on Income”. Tax expense comprises both
 Current Tax and Deferred Tax. Current Tax is measured at the amount
 expected to be paid or recovered from the tax authorities using the
 applicable tax rates.
 
 Minimum Alternate Tax (MAT) credit entitlement is recognised as an
 asset by crediting the Proft and Loss Account to the extent there is
 convincing evidence that the same will be utilised and disclosing an
 equivalent amount as an asset under ‘Loans and Advances in accordance
 with Guidance Note on “Accounting for Credit Available in respect of
 Minimum Alternate Tax under the Income Tax Act, 1961” issued by the
 Institute of Chartered Accountants of India.
 
 Deferred Tax assets and liabilities are recognised for future tax
 consequence attributable to timing differences between taxable income
 and accounting income that are measured at relevant enacted or current
 / substantively enacted tax rates, as applicable. At each Balance Sheet
 date the Company reassesses unrecognised deferred tax assets, to the
 extent they become reasonably certain or virtually certain of
 realisation, as the case may be.
 
 The deferred tax assets and deferred tax liabilities are off set if –
 
 i) there exists a legally enforceable right to set off the assets
 against liabilities representing
 
 current tax and; ii) the deferred tax assets and the deferred tax
 liabilities relate to taxes on income levied
 
 by the same governing taxation laws.
 
 p) Operating Leases:
 
 Assets taken on lease under which all risks and rewards of ownership
 are effectively retained by the lessor are classifed as operating
 lease. Lease payments under operating leases are recognised as expenses
 on accrual basis in accordance with the respective lease agreements.
 
 q) Finance Leases:
 
 Assets acquired under lease where the Company has substantially all the
 risks and rewards of ownership are classifed as fnance leases. Such
 assets are capitalised at the inception of the lease at the lower of
 the fair value or the present value of minimum lease payments and a
 liability is created for an equivalent amount. The rent obligations net
 of interest charges are refected as secured loans.
 
 r) Provisions, Contingent Liabilities and Contingent Assets:
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognised but are disclosed in the
 Notes to Accounts. Contingent Assets are neither recognised nor
 disclosed in the financial statements.
 
 s) Borrowing Costs:
 
 Borrowing costs attributable to the acquisition or construction of
 qualifying assets are capitalised as part of the cost of such assets. A
 qualifying asset is one that necessarily takes a substantial period of
 time to get ready for its intended use. All other borrowing costs are
 charged to revenue.
 
 t) Stock based Compensation:
 
 The compensation cost of stock options granted to employees is measured
 by the intrinsic value method, i.e. the difference between the market
 price of the Companys shares on the date of the grant of options and
 the exercise price to be paid by the option holders. The compensation
 cost if any, is amortised uniformly over the vesting period of the
 options.
 
 u) Government Grants:
 
 Government grants are accounted when there is reasonable assurance that
 the enterprise will comply with the conditions attached to them and it
 is reasonably certain that the ultimate collection will be made.
 Capital grants relating to specifc fxed assets are reduced from the
 gross value of the respective fxed assets. Revenue grants are
 recognised in the Proft and Loss Account.
 
 v) Research and Development:
 
 Revenue Expenditure incurred on research and development is charged to
 the respective heads in the Proft and Loss Account in the year it is
 incurred and Capital Expenditure thereon is included in the respective
 heads under Fixed Assets.
 
 Expenditure on in-licensed development activities, whereby research
 fndings are applied to a plan or design for the production of new or
 substantially improved products and processes, is capitalised, if the
 cost can be reliably measured, the product or process is technically
 and commercially feasible and the Company has suffcient resources to
 complete the development and to use and sell the asset.
 
 w) Impairment of Assets:
 
 An asset is treated as impaired when the carrying cost of the asset
 exceeds its recoverable value. An impairment loss is charged to Proft
 and Loss Account in the year in which an asset is identifed as
 impaired. The impairment loss recognised in prior accounting periods is
 reversed if there has been a change in the estimate of recoverable
 amount.