1.  Contingent Liabilities
                                          As at           As at
                                          31st March 
                                          2011           31st March 2010
                                          Rs''000         Rs''000
 (a) Claims against the company not 
     acknowledged as debts
 
     Income tax matters
 
 (i) Matters decided in favour of the 
     company but disputed further by
     the income tax authorities            301,612           305,766
 
 (ii) Matters decided against the company 
      in respect of which the company has
      preferred an appeal                   147,103          128,649
 
      Sales tax matters                     227,408          180,762
 
      Service tax matter                      3,291            3,291
 
      Excise matters                          5,110            5,110
 
      Claims from a third party 
      manufacturer in respect of Excise
      matter                                  32,943           31,162
 
      Claims from Consumers                    1,758            1,758
  
      Others                                 701,927            2,100
 
 (b) Uncalled liability on partly paid 
     share in Hill Properties Limited             2                2
 
 Notes:
 
 (i) Future cash outflows in respect of (a) above are determinable only
 on receipt of judgements/ decisions pending with various
 authorities/forums and/or final outcome of the matters.
 
 (ii) Future cash outflow in respect of (b) above is dependent on the
 call to be made by Hill Properties Limited.
 
 2. (a) Salaries, Wages and Bonus include Rs. 5,200(000) [Previous year
 Rs. 2,800(000)] paid to employees under the Voluntary Retirement Schemes.
 
 (b) Voluntary Retirement Costs represent the actuarial value as at 31st
 March, 2011 of compensation payable under the Voluntary Retirement
 Schemes. Amount payable within one year approximately Rs. 2,468(000)
 [Previous year Rs. 3,124(000)].
 
 3.  Disclosures as required under the Micro, Small and Medium
 Enterprises Development Act, 2006. This information and that given in
 Schedule 11 - Liabilities regarding Micro and Small Enterprises has
 been determined to the extent such parties have been identified on the
 basis of information available with the company. This has been relied
 upon by the auditors.
 
 (e) Included in (d) above is - Nil [Previous year - Nil] being interest
 on amounts outstanding as at the beginning of the accounting year.
 
 (C) Other Long-term Employee Benefit
 
 The liability for Long Service Awards as at the year end Rs.
 6,859(000) [Previous year Rs. 7,230(000)].
 
 (a) Business Segments
 
 The businesses comprise Pharmaceuticals, Generics, OTC and Animal
 Health. The operational performance of the business is reviewed by 
 the management based on such segmentation.
 
 (i) The Pharmaceuticals segment comprises a portfolio of prescription
 medicines which are provided to patients through healthcare professionals. 
 These are mainly products of original research of the Novartis Group.  
 
 (ii) The Generics segment comprises Retail Generics products. The business 
 unit primarily focuses on the therapeutic segments such as Anti-TB, Anti-DUB 
 (Gynaecology), Antihistamines,
 
 Antibiotics, Anti-ulcerants, Anti-diabetes and Cardiovascular.  (iii)
 The Animal Health segment has a presence primarily in the cattle and
 poultry market segments.  (iv) The OTC segment is mainly in the VMS
 (vitamins, minerals and nutritional supplements) and
 CoCoA (cough, cold and allergy) market segments.
 
 (b) Geographical Segments
 
 Revenue is segregated into two segments namely India (sales to
 customers within India) and Other Countries (sales to customers outside
 India) on the basis of geographical location of customers for the
 purpose of reporting geographical segments.
 
 (c) The accounting policies adopted for segment reporting are in line
 with the accounting policies adopted for the preparation of financial
 statements as disclosed in Note 1 above.
 
 4. Related Party Disclosures
 
 (A) Enterprise where control exists Hoiding Company
 
 Novartis AG, Basel, Switzerland
 
 (8) Other Related Parties with whom (a) Fellow Subsidiaries
 
 the company had transactions during the year
 
 Novartis (Bangladesh) Limited, Bangladesh
 
 Novartis (Thailand) Limited, Thailand
 
 Novartis Animal Health GmbH, Austria
 
 Novartis Animal Health, USA
 
 Novartis Asia Pacific Pharmaceuticals Pte. Ltd., Singapore
 
 Novartis Healthcare Private Limited, India
 
 Novartis International AG, Basel, Switzerland
 
 Novartis Pharma AG, Basel, Switzerland
 
 Novartis Pharmaceuticals (HK) Limited, Hong Kong
 
 Novartis Pharmaceuticals Corporation Inc., USA
 
 Sandoz Private Limited, India
 
 Shanghai Novartis Animal Health Co. Limited, China
 
 (b) Key Management Personnel
 
 R. Shahani
 
 R Gupta
 
 A. Matai
 
 V. Singhal
 
 Dr R R. Rao
 
 A. Sharma (From 6th January, 2010)
 
 (b) Significant leasing arrangements
 
 (i) Either party shall be entitled at any time during the term to
 terminate the agreement by giving three months'' prior notice in
 writing.
 
 (ii) There is no provision for renewal.
 
 5. Previous year figures have been regrouped where necessary.