1.  Basis of Preparation
 
 The financial statements have been prepared to comply in all material
 respects with the Accounting Standards notified by Companies
 (Accounting Standards) Rules, 2006 (as amended) and the relevant
 provisions of the Companies Act, 1956.The financial statements have
 been prepared under the historical cost convention on an accrual basis
 except in case of assets for which provision for impairment is made and
 revaluation is carried out. The accounting policies have been
 consistently applied by the Company and are consistent with those used
 in the previous year.
 
 2.  Use of Estimates
 
 The presentation of financial statements in conformity with the
 Generally Accepted Accounting Principles requires management to make
 estimates and assumptions that affect the reported amount of assets and
 liabilities and disclosure of contingent liabilities on the date of the
 financial statements and the results of operations during the reporting
 period. Although these estimates are based upon management''s best
 knowledge of current events and actions,actual results could differ
 from these estimates.
 
 3.  Revenue Recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Sale of Goods - Revenue is recognized when the significant risks and
 rewards of ownership of the goods have passed to the buyer and is
 stated net of trade discounts, returns and Sales Tax /VAT but includes
 Excise Duty. Excise Duty deducted from turnover (gross) is the amount
 that is included in the amount of turnover (gross) and not the entire
 amount of liability arisen during the year.
 
 Research & Development - Income from Research & Development Services is
 recognized on an accrual basis in accordance with the terms of the
 relevant agreement.
 
 Contract Manufacturing - Revenue is recognized on an accrual basis in
 accordance with the terms of the relevant agreement.
 
 Interest - Revenue is recognized on a time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 Dividend - Revenue is recognized when the shareholders'' right to
 receive payment is established by the balance sheet date. Dividend from
 subsidiaries is recognized even if same are declared after the Balance
 Sheet date but pertains to the period on or before the date of Balance
 Sheet, as per the requirements of Schedule VI to the Companies Act,
 1956.
 
 Royalty - Revenue is recognized on an accrual basis in accordance with
 the term of the relevant agreement.
 
 Export Benefits - Export entitlements under Duty Entitlement Pass
 
 Book Schemes are recongnised in the Profit & Loss Account when the
 right to receive credit as per terms of scheme is established in
 respect of export made and where there is no significant uncertainty
 regarding the ultimate collection of the relevant export proceeds.
 
 4.  Fixed Assets
 
 Fixed assets are stated at cost less accumulated depreciation and
 impairment losses, if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use. Borrowing costs relating to acquisition of fixed
 assets which takes substantial period of time to get ready for its
 intended use are also included to the extent they relate to the period
 till such assets are ready to be put to use.
 
 As a result of change in Accounting Policy during the financial year
 2008-09 in respect of accounting periods commencing on or after 7th
 December, 2006, exchange differences arising on reporting of the
 long-term foreign currency monetary items at rates different from those
 at which they were initially recorded during the period, or reported in
 the previous financial statements are added to or deducted from the
 cost of the asset and are depreciated over the balance life of the
 asset, if these monetary items pertain to the acquisition of a
 depreciable fixed asset.
 
 5.  Impairment of Fixed Assets
 
 The carrying amounts of assets are reviewed at each Balance Sheet date,
 if there is any indication of impairment based on internal/ external
 factors. An impairment loss is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the assets net selling price and valuein use.ln
 assessing valuein use, the estimated futurecash flows are discounted to
 their present value using pre-tax discount rate that reflects current
 market assessments of the time value of money and risks specific to the
 asset.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the assets over its remaining useful life.
 
 6.  Intangibles
 
 Patents, Trademarks & Designs - Costs relating to patents, trademarks
 and designs, which areacquired,are capitalized.
 
 Research and Development Costs - Research costs are expensed as
 incurred. Development expenditure incurred on an individual project is
 recognized as an intangible asset when the following can be
 demonstrated:
 
 the technical feasibility of completing the intangible asset so that it
 will be available for use or sale;
 
 the Company''s intention to complete the asset and use or sell it;
 
 the Company''s ability to use or sell the asset;
 
 how the asset will generate probable future economic benefits;
 
 the availability of adequate resources to complete the development and
 to use or sell the asset; and
 
 the ability to measure reliably the expenditure attributable to the
 intangible asset during development.
 
 Product Development - Product Development is capitalized on successful
 completion of development activities and commercial launch of developed
 products.
 
 Technical Know how -Technical Know how is capitalized on successful
 transfer of technology when its future recoverability can reasonably be
 regarded as assured.
 
 Software and Website - Software and website are stated at cost of
 acquisition and include all attributable costs of bringing them to
 their working condition for their intended use.
 
 The carrying value of intangible assets is reviewed for impairment
 annually when the asset is not yet in use,and otherwise when events or
 changes in circumstances indicate that the carrying value may not be
 recoverable.
 
 b) Amortization of intangibles is provided on straight line basis of
 the estimated useful lives as follows:-
 
 Patents,Trademarks & Designs
 
 - Amortized over a period of 7 years
 
 Product Development - Amortized over a period of 5 years
 
 Technical Know-how - Amortized over a period of 5 years
 
 Software - Amortized over a period of 5 years
 
 Websites - Amortized over a period of 2 years
 
 c) Land is amortized over the period of lease or useful life, whichever
 is shorter.
 
 d) Leasehold Improvements are amortized over the initial period of
 lease or useful life, whichever is shorter.
 
 8.  Borrowing Costs
 
 Borrowing costs directly attributable to the acquisition,construction
 or production of an asset that necessarily takes a substantial period
 of time to get ready for its intended use or sale are capitalized as
 part of the cost of the respective asset. All other borrowing costs are
 expensed in the period they occur. Borrowing costs consist of interest
 and other costs that an entity incurs in connection with the borrowing
 of funds.
 
 9.  Government grants and subsidies
 
 Grants and subsidies from the government are recognized when there is
 reasonable assurance that the grant/subsidy will be received and all
 attaching conditions will be complied with.
 
 Government grants of the nature of promoters'' contribution are credited
 to capital reserve and treated as a part of shareholders'' funds.
 
 10.  Leases
 
 Where the Company is the Lessee
 
 Finance leases, which effectively transfer to the Company substantially
 all the risks and benefits incidental to ownership of the leased item,
 are capitalized at the lower of the fair value and present value of the
 minimum lease payments at the inception of the lease term and disclosed
 as leased assets. Lease payments are apportioned between the finance
 charges and reduction of the lease liability based on the implicit rate
 of return. Finance charges are charged directly against income. Lease
 management fees, legal charges and other initial direct costs are
 capitalised.
 
 If there is no reasonable certainty that the Company will obtain the
 ownership by the end of the lease term, capitalized leased assets are
 depreciated over the shorter of the estimated useful life of the asset
 or the lease term.
 
 Leases, where the lesser effectively retains substantially all the
 risks and benefits of ownership of the leased term, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit and Loss account on a straight-line basis over the lease
 term.
 
 Where the Company is the Lessor
 
 Assets given under a finance lease are recognized as a receivable at an
 amount equal to the net investment in the lease. Lease rentals are
 apportioned between principal and interest on the IRR method.The
 principal amount received reduces the net investment in the lease and
 interest is recognized as revenue. Initial direct costs such as legal
 costs, brokerage costs, etc. are recognized immediately in the Profit
 and Loss Account.
 
 Assets subject to operating leases are included in fixed assets. Lease
 income is recognized in the Profit and Loss Account on a straight- line
 basis over the lease term. Costs, including depreciation are recognized
 as an expense in the Profit and Loss Account. Initial direct costs such
 as legal costs, brokerage costs, etc. are recognized immediately in the
 Profit and Loss Account.
 
 11.  Deferred Revenue Expenditure
 
 Expenditure incurred prior to April 1,2003 towards procuring license
 for new products is written off over the period of agreement or ten
 years whichever is shorter.Expenditure of the similar nature incurred
 during the year is charged off to revenue.
 
 12.  Investments
 
 Investments that are readily realizable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long-term investments. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis. Long-term investments are carried at
 cost. However, provision for diminution, in value is made to recognize
 a decline other than temporary in the value of the investments.
 
 13.  Inventories
 
 Finished Goods, Work in Progress, Goods held for Resale, Raw Materials,
 Packing Materials and Stores & Spare parts are stated at lower of cost
 and net realizable value. However, materials and other items held for
 use in the production of inventories are not written down below cost if
 the finished goods in which they will be incorporated are expected to
 be sold at or above cost.
 
 ''Cost'' of Finished Goods, Work in progress, Raw Materials, Packing
 Materials and Stores & Spare parts is arrived at by using ''Weighted
 Average Price''method.
 
 Cost of Work in Progress and Finished Goods is determined by
 considering direct material cost and appropriate portion of
 manufacturing overheads based on normal operating capacity.  Cost of
 traded goods is arrived at by using ''Weighted Average Price''
 method.Cost of Finished Goods includes Excise Duty.
 
 Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion and to make the
 sale.
 
 14.  Retirement and Other Employee Benefits
 
 a) Retirement benefit in the form of Provident Fund is a defined
 contribution schemes and the contributions are charged to the Profit
 and Loss Account of the year when the contributions to the respective
 funds are due. There are no other obligations other than the
 contribution payable to the respective funds.
 
 b) Gratuity liability is defined benefit obligations and is provided
 for on the basis of an actuarial valuation on projected unit credit
 method made at the end of each financial year.
 
 c) Short term compensated absences are provided for based on estimates.
 Long term compensated absences are provided for based on actuarial
 valuation done as per projected unit credit method.
 
 d) Leave encashment payable /adjustable during the year is provided on
 the basis of last salary drawn by employees.
 
 e) Actuarial gains/losses are immediately taken to Profit & Loss
 Account and are not deferred.
 
 15.  Foreign Currency Transactions
 
 Initial Recognition : Foreign currency transactions are recorded in the
 reporting currency, by applying to the foreign currency amount, the
 exchange rate between the reporting currency and the foreign currency
 at the date of the transaction.
 
 Conversion : Foreign currency monetary items are reported using the
 closing rate. Non-monetary items which are carried in terms of
 historical cost denominated in a foreign currency are reported using
 the exchange rate at the date of the transaction and non-monetary items
 which are carried at fair value or other similar valuation denominated
 in a foreign currency are reported using the exchange rates that
 existed when the values were determined.
 
 Exchange Differences : Exchange differences arising on a monetary item
 that, in substance, form part of Company''s net investment in a
 non-integral foreign operation is accumulated in a foreign currency
 translation reserve in the financial statements until the disposal of
 the net investment, at which time they are recognized as income or as
 expenses.
 
 Exchange differences, in respect of accounting periods commencing on or
 after 7th December, 2006, arising on reporting of long-term foreign
 currency monetary items at rates different from those at which they
 were initially recorded during the period, or reported in previous
 financial statements, in so far as they relate to the acquisition of a
 depreciable capital asset, are added to, or deducted from, the cost of
 the asset and are depreciated over the balance life of the asset, and
 in other cases, are accumulated in a Foreign Currency Monetary Item
 Translation Difference Account in the financial statements and
 amortized over the balance period of such long-term asset/liability but
 not beyond accounting period ending on or before 31st March, 2011.
 
 Exchange differences arising on the settlement of monetary items not
 covered above,or on reporting such monetary items of company at rates
 different from those at which they were initially recorded during the
 year, or reported in previous financial statements, are recognized as
 income or as expenses in the year in which they arise.
 
 Forward Exchange Contracts not intended for trading or speculation
 purposes : The premium or discount arising at the inception of forward
 exchange contracts is amortized as an expense or income over the life
 of the contract. Exchange differences on such contracts are recognized
 in the statement of Profit and Loss Account in the year in which the
 exchange rates change. Any profit or loss arising on cancellation or
 renewal of forward exchange contract is recognized as income or as
 expense for the year.
 
 16.  Income Taxes
 
 Tax expense comprises of current and deferred tax. Current income tax
 is measured at the amount expected to be paid to the tax authorities in
 accordance with the Income Tax Act, 1961, enacted in India. Deferred
 income taxes reflect the impact of current year timing differences
 between taxable income and accounting income for the year and reversal
 oftiming differences of earlier years.
 
 Deferred Income Tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date.  Deferred
 tax assets and deferred tax liabilities are offset, if a legally
 enforceable right exists to set off current tax assets against current
 tax liabilities and the deferred tax assets and deferred tax
 liabilities relate to the taxes on income levied by same governing
 taxation laws. Deferred tax assets are recognized only to the extent
 that there is reasonable certainty that sufficient future taxable
 income will be available against which such deferred tax assets can be
 realized. If the Company has unabsorbed depreciation or carry forward
 tax losses, deferred tax assets are recognized only if there is virtual
 certainty supported by convincing evidence that such deferred tax
 assets can be realized against future taxable profits.
 
 At each Balance Sheet date the Company re-assesses unrecognized
 deferred tax assets. It recognizes unrecognized deferred tax assets to
 the extent that it has become reasonably certain or virtually certain,
 as the case may be, that sufficient future taxable income will be
 available against which such deferred tax assets can be realized.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date.The Company writes down the carrying amount of a deferred
 tax assets to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax assets can be
 realized. Any such write-down is reversed to the extent that it becomes
 reasonably certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available.
 
 Minimum Alternative tax credit is recognised as an asset only when and
 to the extent there is convincing evidence that the company will pay
 normal income tax during the specified period. In the year in which the
 MAT credit becomes eligible to be recognized as an asset in accordance
 with the recommendations contained in guidance Note issued by the
 Institute of Chartered Accountants of India, the said asset is created
 by way of a credit to the profit and loss account and shown as MAT
 Credit Entitlement. The Company reviews the same at each balance sheet
 date and writes down the carrying amount of MAT Credit Entitlement to
 the extent there is no longer convincing evidence to the effect that
 Company will pay normal IncomeTax during the specified period.
 
 17.  Earnings Per Share
 
 Basic Earnings per Share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders (after
 deducting preference dividends and attributable taxes) by the weighted
 average number of equity shares outstanding during the period.The
 weighted average number of equity shares outstanding during the period
 is adjusted for events of bonus issue, bonus element in a rights issue
 to existing shareholders, share split, and reverse share split
 (consolidation of shares), if any.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of Shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 18.  Provisions
 
 A provision is recognized when the Company has a present obligation as
 a result of past event and 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 management''s 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.
 
 19.  Segment Reporting Policies
 
 (a) Identification of Segments:
 
 Primary Segment
 
 Business Segment: The Company''s operating businesses are organized and
 managed separately according to the nature of products, with each
 segment representing a strategic business unit that offers different
 products.The identified segments are Vaccines, Formulations and
 Research & Development Activities.
 
 Secondary Segment
 
 Geographical Segment: The analysis of geographical segment is based on
 the geographical location of the customers.
 
 The geographical segments considered for disclosure are as follows:
 
 Revenue from domestic market includes sales to customers located within
 India.
 
 Revenue from overseas market includes sales to customers located
 outside India.
 
 (b) Allocation of Common Costs: Common allocable costs are allocated to
 each segment on a rational basis based on nature of each such common
 cost.
 
 (c) Unallocated Items: Corporate income and expenses are considered as
 a part of unallocable income & expense, which are not identifiable to
 any business segment.
 
 (d) Segmental Policies: The Company prepares its segment information in
 conformity with the accounting policies adopted for preparing and
 presenting the financial statements of the company as a whole.
 
 20.  Derivative Instruments
 
 As per announcement of Institute of Chartered Accountants of India,
 accounting for derivative contracts, other than those covered under
 AS-11, are marked to market on a portfolio basis, and the net loss
 after considering the offsetting effect on the underlying hedge item is
 charged to the Profit and Loss Account. Net gains are ignored.
 
 21.  Cash & Cash Equivalent
 
 Cash and cash equivalents in the cash flow statement comprise cash at
 bank and in hand and short-term investments with an original maturity
 of three months or less.
 
 22.  Expenditure on new projects and substantial expansion
 
 Expenditure directly relating to construction activity is capitalized.
 Direct expenditure incurred during construction period is capitalized
 as part of the direct construction cost to the extent to which the
 expenditure is directly related to construction.