a) Accounting Convention
 
 The Financial Statements are prepared under historical cost convention.
 Revenues are recognised and expenses are accounted on their accrual
 with necessary provisions for all known liabilities and losses.
 
 b) Fixed Assets
 
 i) Fixed Assets are stated at the original cost inclusive of inward
 freight, incidental expenses related to acquisition and related pre-
 operational expenses and technical knowhow fees where applicable.
 
 ii) Machinery spares which can be used only in connection with specific
 fixed assets and the use of which are irregular, are charged over the
 period of the life of such fixed asset, in accordance with Accounting
 Standard (AS 10).
 
 iii) Brands represent brands acquired by the Company and includes IPR &
 Licences purchased for a consolidated consideration.The cost of brands,
 patents and trademarks are amortised over a period of 60 months from
 the month of acquisition.
 
 iv) Internally Generated Intangible Assets - DMF & ANDA
 
 DMF and ANDA costs represent expenses incurred on development of
 processes and compliance with regulatory procedures of the US FDA, in
 filing Drug Master Files (DMF) and Abbreviated New Drug Applications
 (ANDA), in respect of products for which commercial value has been
 established by virtue of third party agreements/arrangements. This is
 in accordance with the requirements of Accounting Standard 26.
 
 The cost of each DMF/ANDA is amortised to the extent of recovery of
 developmental costs applicable as per terms of agreement or over a
 period of five years from the date on which the product covered by
 DMF/ANDA is commercially marketed, whichever is earlier.
 
 v) Assets are depreciated on straight line basis at the rates specified
 in Schedule XIV of the Companies Act, except in respect of the
 following assets, where the useful lives reckoned in computing the
 depreciation for the year are different from those derived from the
 rates specified in Schedule XIV of the Companies Act, 1956. The revised
 useful life of the assets have been determined by the Management based
 on technical assessment.
 
 vi) Leasehold assets cost is amortised over the period of the Lease.
 
 vii) Depreciation on assets added/disposed off during the year is
 provided on pro-rata basis from the month of addition or up to the
 month preceeding the month of disposal, as applicable.
 
 viii) Impairment of assets:
 
 Management periodically assesses using external and internal sources
 whether there is an indication that an asset may be impaired. An
 impairment occurs where the carrying value exceeds the present value of
 future cash flows expected to arise from the continuing use of the
 assets and its eventual disposal. The impairment loss to be expensed is
 determined as the excess of the carrying amount over the higher of the
 asset''s net sales price or present value as determined above.
 
 c) Borrowing Costs
 
 Interest cost on qualifying asset being an asset that necessarily takes
 a substantial period of time to get ready for its intended use or sale,
 is capitalised at the weighted average rate of the funds borrowed and
 utilised for acquisition of such assets.
 
 d) Treatment of expenditure during construction period.
 
 Expenditure during construction period is included under capital
 work-in-progress and the same is allocated to the respective fixed
 assets on the completion of construction.
 
 e) Investments
 
 Investments considered long term are shown at cost. Diminution in the
 value of investments other than temporary are provided for.  Current
 investments are valued at lower of cost and market value.
 
 f) Inventories
 
 i) Stores & Spares - At weighted average cost
 
 ii) Raw Materials - At annual weighted average cost
 
 iii) Finished Goods @ - At Lower of cost or net realisable value
 
 iv) Work in Progress & Intermediates @ - At Lower of cost or net
 realisable value
 
 @ After adjustment of unrealised profits on inter division transfer.
 
 g) Revenue Recognition
 
 Sales are recognised on despatch of goods from the factory/ warehouse
 and price differentials are accounted for at the end of each quarter as
 per the terms of marketing arrangement. Sales are net of returns,
 discounts and inter-division transfers. Service income is recognised as
 per contractual terms. In respect of composite contracts involving
 development and other activities, income is recognised on the basis of
 contractual terms after considering the quantum of work completed.
 
 h) Retirement Benefits
 
 Retirement Benefits are accounted on actuarial valuation carried out at
 the end of the year. The Company''s liability towards the gratuity of
 employees is covered by a group gratuity policy with LIC, SBI and ICICI
 Prudential Life Insurance Company Ltd and the contribution to the fund
 is based on actuarial valuation carried out yearly as at March 31 as
 per the revised AS15. Provision for Leave Encashment has been made
 based on actuarial valuation as at the year end as per revised AS15.
 Short term employee benefits are recognised as an expense at the
 undiscounted amount in the profit and loss account for the year in
 which the related service is rendered.
 
 i) Translation of Foreign Currency items