i) Basis of Accounting
 
 The financial statements are prepared to comply in all material aspects
 with all the applicable accounting principles in India, the applicable
 Accounting Standards notified u/s 211(3C) of the Companies Act, 1956
 and the relevant provisions of the Companies Act, 1956.
 
 ii) Fixed Assets and Depreciation
 
 a.  Fixed Assets
 
 Intangibles
 
 Brands/k now-how (includ ing US F DA / TGA approvals and Busi ness
 Application Soft wa re intended for long term use) are recorded at
 their acquisition cost and in case of assets acquired on merger, at
 their carrying values.
 
 Tangibles
 
 All fixed assets are stated at cost of acquisition less accumulated
 depreciation and includes adjustment arising from exchange rate
 variations attributable to fixed assets. In the case of fixed assets
 acquired for new projects / expansion, interest cost on borrowings, and
 other related expenses incurred upto the date of completion of project
 are capitalised.
 
 b.  Depreciation
 
 Intangibles
 
 Brands/know-how (including US FDA / TGA approvals)/Intellectual
 Property Rights are amortised from the month of product
 launch/commercial production, over their estimated economic life not
 exceeding ten/fifteen years.
 
 Computer Software is being depreciated on straight line method at the
 rates specified in Schedule XIV of the Companies Act, 1956.
 
 Tangibles
 
 Depreciation on fixed assets has been provided on straight line method
 at the rates specified in Schedule XIV of the Companies Act, 1956.
 Diagnostic equipments placed with customers are amortised over a period
 of 60 months.  Depreciation on additions / deletions of assets during
 the year is provided on a pro-rata basis.
 
 c.  Impairment of Assets
 
 The Company assesses at each Balance Sheet date whether there is any
 indication that an asset may be impaired.  If any such indication
 exists, the Company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset or the recoverable amount of the
 cash generating unit to which the asset belongs is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount. The reduction is treated as an impairment loss and is
 recognised in the Profit and Loss Account. If at the Balance Sheet date
 there is an indication that if a previously assessed impairment loss no
 longer exists, the recoverable amount is reassessed and the asset is
 reflected at the recoverable amount.
 
 iii) Investments
 
 Investments that are readily realisable and intended to be held but not
 more than a year are classfied as current investments. All other
 investments are classfied as long term investments.
 
 Long term investments are stated at cost, except where there is a
 diminution in value (other than temporary), in which case the carrying
 value is reduced to recognise the decline. Current investments are
 carried at lower of cost and fair value, computed separately in respect
 of each category of investment.
 
 iv) Inventories
 
 Inventories are valued at lower of cost or net realizable value (Cost
 is determined on weighted average basis). The cost of work-in-progress
 and finished goods comprises of raw materials, direct labour, other
 direct costs and related production overheads and Excise duty as
 applicable. Net realizable value is the estimate of the selling price
 in the ordinary course of business as applicable.
 
 v) Retirement Benefits
 
 The Company has Defined Contribution Plan for its employees retirement
 benefits comprising of Provident Fund, Superannuation Fund, Pension and
 Employee State Insurance Fund which are recognised by the Income Tax
 Authorities and administered through its trustees. The Company and
 eligible employees
 
 make monthly contributions to the Provident Fund trust equal to
 specified percentage of the covered employees salary. The interest
 rate payable by the Provident Fund trust to the beneficiaries every
 year is being notified by the Government. The Company has an obligation
 to make good any shortfall, if any, between the return from the
 investments of the trust and the notified interest rates. The Company
 contributes to Superannuation Fund and Employees State Insurance Fund
 and Employees Pension Scheme 1995 and has no further obligations to
 the plan beyond its monthly contribution.
 
 The Company has Defined Benefit Plan comprising of Gratuity Fund,
 Pension Fund, Leave Encashment and Long Term Service Award. The Company
 contributes to the Gratuity Fund, which is recognized by the Income Tax
 Authorities and administered through its trustees. The liability for
 the Gratuity, Pension, Leave Encashment and Long Term Service Award is
 determined on the basis of an independent actuarial valuation done at
 the year-end. The actuarial valuation method used for measuring the
 liability is the Projected Unit Credit method. The obligations are
 measured as the present value of estimated future cashflows discounted
 at rates reflecting the prevailing market yields of Indian Government
 securities as at the Balance Sheet date for the estimated term of the
 obligations. The estimate of future salary increases considered takes
 into account the inflation, seniority, promotion and other relevant
 factors. The expected rate of return of the plan assets is the
 Companys expectation of the average long term rate of return expected
 on investments of the fund during the estimated term of the
 obligations. Plan assets are measured at fair value as at the Balance
 Sheet date.
 
 Actuarial gains and losses comprise experience adjustments and the
 effects of changes in actuarial assumptions and are recognised in the
 Profit and Loss Account in the year in which they arise.
 
 vi) Provisions and Contingent Liabilities
 
 The Company recognises a provision when there is a present obligation
 as a result of a past event that probably requires an outflow of
 resources and a reliable estimate can be made of the amount of the
 obligation. A disclosure for a contingent liability is made when there
 is a possible obligation or a present obligation that may, but probably
 will not, require an outflow of resources. Where there is a possible
 obligation or a present obligation that the likelihood of outflow of
 resources is remote, no provision or disclosure is made.
 
 vii) Revenue Recognition
 
 Sales are recognized upon delivery of products and are recorded
 inclusive of excise duty but are net of trade discounts and sales tax.
 
 viii) Foreign Currency Transaction
 
 Foreign currency transactions are accounted at the exchange rate
 prevailing on the date of transactions. Gains or losses resulting from
 the settlement of such transaction and from the translation of monetary
 assets and liabilities denominated in foreign currency are recognized
 in the Profit and Loss Account. In cases where they relate to
 acquisition of fixed assets, they are adjusted to the carrying cost of
 such assets. Premium or discount in respect of forward contracts is
 accounted over the period of the contract.
 
 ix) Research and Development
 
 Revenue expenditure on research and development is recognized as
 expense in the year in which it is incurred and the expenditure on
 capital assets is depreciated over the useful lives of the assets.
 
 x) Excise Duty
 
 The excise duty in respect of closing inventory of finished goods is
 included as part of inventory. The material consumed is net of Central
 Value Added Tax (CENVAT) credits.
 
 xi) Voluntary Retirement Scheme (VRS)
 
 Compensation paid on voluntary retirement scheme is charged off in the
 year in which they are incurred.
 
 xii) Taxes on Income
 
 Current Tax
 
 Current Tax is determined as the amount of tax payable in respect of
 taxable income for the year.
 
 Deferred Taxation
 
 Deferred Tax resulting from timing differences between book and tax
 profits is accounted for under the liability method, at the current
 rate of tax, to the extent that the timing differences are expected to
 crystallise.
 
 xiii) Proposed Dividend
 
 Dividend Proposed by the Board of Directors is provided in the books of
 account pending approval at the Annual General Meeting.