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 and Business Application Software (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. 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
 
 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.
 Depreciation on Building has been provided on the basis of lease
 period.
 
 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) 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.
 
 iv) Research and Development Cost
 
 The research and development cost is accounted in accordance with
 Accounting Standard - 26 Intangible Assets.
 
 Research
 
 Research costs, including patent filing charges, technical know-how
 fees, testing charges on animal and expenses incurred on development of
 a molecule till the stage of Pre-clinical studies and till the receipt
 of regulatory approval for commencing phase I trials are treated as
 revenue expenses and charged off to the Profit and Loss Account of
 respective year.
 
 Development
 
 Development costs (costs incurred when the lead molecule enters phase I
 trial and after obtaining regulatory approval for conducting phase I
 studies) relating to design and testing of a new or improved materials,
 products or processes are recognized as an intangible assets and are
 carried forward under Capital Work in Progress until the completion of
 the project as it is expected that such assets will generate future
 economic benefits. During the course of the studies, if it is observed
 that the studies are not proceeding as per expectations, the same are
 discontinued and the amount classified under Capital Work in Progress
 is charged off to Profit and Loss Account.
 
 v) Retirement Benefits
 
 The Company has Defined Contribution Plan for its employees retirement
 benefits comprising of Provident Fund, Superannuation Fund and Pension
 which are 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 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, Leave
 Encashment and Long Term Service Award. The Company contributes to the
 Gratuity Fund, which is administered through its trustees. The
 liability for the Gratuity, 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.
 
 vi) Valuation of Inventories
 
 Raw materials and packing materials are valued at cost. Finished goods
 are valued at lower of cost or net realisable value. Net realizable
 value is the estimate of the selling price in the ordinary course of
 business as applicable.
 
 vii) Foreign Currency Transaction
 
 The transactions in foreign exchange are accounted at the exchange rate
 prevailing on the date of transactions. Gain or loss resulting from the
 settlement of such transaction and from the translation of monetary
 assets and liabilities denominated in foreign currency are recognised
 in the Profit and Loss Account.
 
 viii) 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.
 
 ix) Employee Stock Option Schemes
 
 In accordance with the Securities and Exchange Board of India
 guidelines, the excess of the Intrinsic value of shares, at the date of
 grant of options under the Employee Stock Option Schemes, over the
 exercise price is treated as employee compensation and amortised over
 the vesting period.
 
 x) 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.