1.  Basis for preparation of financial statements
 
 (a) The financial statements of the Company have been prepared in
 accordance with the Generally Accepted Accounting Principles in India
 (Indian GAAP) to comply with the Accounting Standards notified under
 the Companies (Accounting Standards) Rules, 2006 and the relevant
 provisions of the Companies Act, 1956. The financial statements have
 been prepared on accrual basis under the historical cost convention
 except forcertain financial & other assets and liabilities which are
 measured on fair value basis as permitted by:
 
 (i) the Scheme of Arrangement approved by the Honorable High Courts of
 Judicature (the ''Scheme'') or,
 
 (ii) Accounting Standard (AS) 30: Financials Instruments: ''Recognition
 and Measurement'' read with AS 31 Financial Instruments: ''Presentation''
 and AS 32 Financials Instruments: ''Disclosure'', to the extent such
 standards do not conflict with other standards notified under section
 211(3C) of the Companies Act, 1956.
 
 The accounting policies adopted in the preparation of the financial
 statements are consistent with those followed in the previous year.
 
 (b) In terms of a Business Transfer Agreement (BTA) with Agila
 Specialties Private Limited (ASPL), formerly known as Strides
 Specialties Private Limited, a wholly owned subsidiary of the Company,
 the Specialties Business of the Company was transferred to ASPL with
 effect from December 30, 2009. As per the BTA, until completion of all
 formalities and regulatory approvals, the Company was required to
 continue to carry on the Specialties Business in Trust and on behalf of
 ASPL. All required regulatory approvals for such transfer were received
 in the month of February 2011. The financial statements do not include
 the transactions pertaining to ASPL.
 
 2.  Revenue
 
 2.1 Revenue from export sales is recognised on the basis of the
 shipping bills for exports. Revenue from domestic sales is recognised
 based on the passage of title to goods which generally coincides with
 dispatch. Sales include excise duty and are stated net of discounts,
 other taxes, and sales returns.
 
 2.2 Revenue from development services:
 
 (a) In respect of contracts which require development on end to end
 basis, revenue is recognised based on technical estimates of the stage
 of work.
 
 (b) In respect of other development contracts, revenue is recognised on
 the basis of the performance milestones provided in the contract.
 
 2.3 Revenue from contract manufacturing is recognised based on the
 services rendered in accordance with the terms of the contract.
 
 2.4 Export incentives are accrued for based on fulfillment of
 eligibility criteria for availing the incentives and when there is no
 uncertainty in receiving the same. These incentives include estimated
 realisable values / benefits from special import licenses and benefits
 under Duty Entitlement Pass Book Schemes, Focus Market Schemes, and
 Market-Linked Focus Product Schemes wherever applicable.
 
 2.5 Dividends are recognised whenever the right to receive dividends is
 established.
 
 2.6 Interest and other income is recognised on accrual basis
 
 3.  Fixed Assets
 
 Fixed assets, except to the extent permitted to be fair valued under
 the Scheme are carried at cost less accumulated depreciation and
 impairment losses, if any. The cost of fixed assets includes interest
 on borrowings attributable to acquisition of qualifying fixed assets up
 to the date the asset is ready for its intended use and other
 incidental expenses incurred up to that date. Subsequent expenditure
 relating to fixed assets are capitalised only if such expenditure
 results in an increase in the future benefits from such asset beyond
 its previously assessed standard of performance.
 
 Fixed asset acquired in full or part exchange for another asset /
 security is recorded at the fair market value or the net book value of
 the asset given up, adjusted for any balancing cash consideration. Fair
 market value is determined either for the asset acquired or asset given
 up / security given up / issued, whichever is more clearly evident
 
 The Company fair valued land and machineries upon the Scheme becoming
 effective (December 31, 2009) and such assets are carried at the fair
 value less accumulated depreciation and impairment losses, if any.
 
 Intangible assets are carried at cost less accumulated amortisation and
 impairment losses, if any. The cost of an intangible asset comprises
 its purchase price, including any import duties and other taxes (other
 than those subsequently recoverable from the taxing authorities), and
 any directly attributable expenditure on making the asset ready for its
 intended use and net of any trade discounts and rebates. Subsequent
 expenditure on an intangible asset after its purchase / completion is
 recognised as an expense when incurred unless it is probable that such
 expenditure will enable the asset to generate future economic benefits
 in excess of its originally assessed standards of performance and such
 expenditure can be measured and attributed to the asset reliably, in
 which case such expenditure is added to the cost of the asset.
 
 In-house product development costs are capitalised in accordance with
 Paragraph 8 below.
 
 Capital work-in-progress
 
 Projects under which assets are not ready for its intended use and
 other Capital Work-in-Progress are carried at cost, comprising direct
 cost, related incidental expenses and attributable interest.
 
 4.  Impairment of Assets
 
 The carrying values of assets / cash generating units at each Balance
 Sheet date are reviewed for impairment. If any indication of impairment
 exists, the recoverable amount of such assets is estimated and
 impairment is recognised, if the carrying amount of these assets
 exceeds their recoverable amount. The recoverable amount is the greater
 of the net selling price and their value in use. Value in use is
 arrived at by discounting the future cash flows to their present value
 based on an appropriate discount factor.  When there is indication that
 an impairment loss recognised for an asset in prior accounting periods
 no longer exists or may have decreased, such reversal of impairment
 loss is recognised in the Profit and Loss account.
 
 5.  Depreciation / Amortisation
 
 The following assets are depreciated / amortised over the useful
 livesunder the straight line method.
 
 Dies and Punches                 : 4 years
 
 Registrations and Brands         : 5 to 10 years
 
 Software Licenses                : 5 years
 
 In respect of all other assets, depreciation is provided under the
 straight-line method at the rates and in the manner prescribed under
 Schedule XIV of the Companies Act, 1956, based on technical estimates
 that indicate the useful lives would be comparable with or higher than
 those arrived at using these rates.
 
 With respect to assets carried at fair value cost as permitted under
 the Scheme, depreciation / amortisation is recorded under the straight
 line method over the balance useful life of the respective assets.
 
 Individual assets costing less than Rs 5,000 are depreciated in full in
 the year of purchase.
 
 The estimated useful life of the intangible assets and the amortisation
 period are reviewed at the end of each financial year and the
 amortisation method is revised to reflect the changed pattern.
 
 6.  Inventories
 
 Inventories comprise raw materials, packing materials, consumables,
 work in process and finished goods. These are valued at the lower of
 cost and net realisable value after providing for obsolescence and
 other losses, where considered necessary. Cost is determined as
 follows:
 
 7.  Employee benefits
 
 Employee benefits include provident fund, superannuation fund, gratuity
 fund and compensated absences.
 
 Defined contribution plans
 
 The Company''s contribution to Provident Fund are considered defined
 contribution plans and are charged as an expense as they fall due based
 on the amount of contribution required to be made.
 
 Defined benefit plans
 
 Liability for gratuity is funded with SBI Life Insurance Company
 Limited. Gratuity expenses for the year are accounted based on
 actuarial valuation carried out as at the end of the fiscal year using
 the Projected Unit Credit method. Actuarial gains and losses are
 recognised in the Profit and Loss account in the period in which they
 occur. Past service cost is recognised immediately to the extent that
 the benefit. The retirement obligation recognised in the balance sheet
 represents the present value of the defined benefit obligation as
 adjusted for unrecognised past service cost, and as reduced by the fair
 value of the scheme assets. Any asset resulting from this calculation
 is limited to past service cost, plus the present value of available
 refunds and reductions in future contributions to the scheme.
 
 Short-term employee benefits
 
 The undiscounted amount of short-term employee benefits expected to be
 paid in exchange for the services rendered by employees is recognised
 during the period when the employees render the services. These
 benefits include performance incentives and compensated absences which
 are expected to occur within the twelve months after the end of the
 period in which the employee renders the related services. The cost of
 such compensated absences are accounted as under:
 
 (a) in case of accumulated compensated absences, when employees render
 the services that increase their entitlement of future compensated
 absences; and
 
 (b) in case of non - accumulating compensated absences, when the
 absences occur.
 
 Long term employee benefits
 
 Compensated absences which are not expected to occur within twelve
 months after the end of the period in which the employee renders the
 related services are recognised as a liability at the present value of
 the defined benefit obligation as at the Balance Sheet date less the
 fair value of the plan assets out of which the obligations are expected
 to be settled.
 
 The Company has introduced Long Term Employee Compensation Plan under
 which certain employees are eligible for retention and performance
 linked payouts. These payouts are accrued as and when services are
 rendered and or when the specific performance criteria are met.
 
 8.  Research & Development Expenditure
 
 Revenue expenditure pertaining to research is charged to the Statement
 of Profit and Loss. Development costs of products are also charged to
 the Profit and Loss account / Reserve for Business Restructure unless a
 product''s technological feasibility and commercial viability has been
 established, in which case such expenditure is capitalised. The amount
 capitalised comprises expenditure that can be directly attributed, or
 allocated on a reasonable and consistent basis, to creating, producing
 and making the asset ready for its intended use. Fixed assets utilised
 for research and development are capitalised and depreciated in
 accordance with the policies stated for Fixed Assets.
 
 9.  Foreign currency transactions and translations
 
 Initial recognition
 
 Transactions in foreign currencies by the Company and its integral
 foreign operations are accounted at the exchange rates prevailing on
 the date of the transaction or at rates that closely approximate the
 rate at the date of the transaction.
 
 Measurement of foreign currency monetary items at the balance sheet
 date
 
 Foreign currency monetary items (other than derivative contracts) of
 the Company and its net investment in non-integral foreign operations
 outstanding at the balance sheet date are restated at year end rates.
 
 In the case of integral operations, assets and liabilities (other than
 non-monetary items), are translated at the exchange rate prevailing on
 the balance sheet date. Non-monetary items are carried at historical
 cost. Revenue and expenses are translated at yearly average exchange
 rates prevailing during the year. Exchange differences arising out of
 these translations are charged to the Profit and Loss account.
 
 Treatment of exchange differences
 
 Exchange differences arising on settlement / restatement of short-term
 foreign currency monetary assets and liabilities of the Company and its
 integral foreign operations are recognised as income or expense in the
 Profit and Loss account. The exchange differences on restatement /
 settlement of loans to non-integral foreign operations that are
 considered as net investment in such operations are accumulated in a
 Foreign currency translation reserve, until disposal / recovery of
 the net investment.
 
 Accounting of forward contracts
 
 Premium / discount on forward exchange contracts, which are not
 intended for trading or speculation purposes, are amortised over the
 period of the contracts, if such contracts relate to monetary items as
 at the Balance sheet date. Refer Notes 19 and 20 in this Section for
 accounting for forward exchange contracts relating to firm commitments
 and highly probable forecast transactions.
 
 10.  Investments
 
 (a) Current investments are carried at lower of cost and fair market
 value.
 
 (b) Long-term investments are valued at cost (except for investments
 which are recorded at fair value as per the Scheme) less impairment
 considered to be other than temporary.
 
 (c) Cost of investments include acquisition charges such as brokerage,
 fees and duties.
 
 11.  Leases
 
 Where the Company as a lessor leases assets under finance leases, such
 amounts are recognised as receivables at an amount equal to the net
 investment in the lease and the finance income is based on a constant
 rate of return on the outstanding net investment.
 
 Assets leased by the Company in its capacity as lessee where
 substantially all the risks and rewards of ownership vest in the
 Company are classified as finance leases. Such leases are capitalised
 at the inception of the lease at the lower of the fair value or the
 present value of the minimum lease payments and a liability is created
 for an equivalent amount. Each lease rental paid is allocated between
 the liability and the interest cost so as to obtain a constant periodic
 rate of interest on the outstanding liability for each year.
 
 Lease arrangements where the risks and rewards incidental to ownership
 of an asset substantially vests with the lessor are recognised as
 operating leases. Lease rentals under operating leases are recognised
 in the Profit and Loss account on a straight- line basis
 
 12.  Financial Assets, Financial Liabilities, Financial Instruments,
 Derivatives and Hedge Accounting
 
 (a) The Company classifies its financial assets into the following
 categories: financial instruments at fair value through profit and
 loss, loans and receivables, held to maturity investments and available
 for sale financial assets.
 
 Financial assets of the Company mainly include cash and bank balances,
 sundry debtors, loans and advances and derivative financial instruments
 with a positive fair value.
 
 Financial liabilities of the Company mainly comprise secured and
 unsecured loans, sundry creditors, accrued expenses and derivative
 financial instruments with a negative fair value.
 
 Financial assets / liabilities are recognised on the balance sheet when
 the Company becomes a party to the contractual provisions of the
 instrument. Financial assets are derecognised when all of risks and
 rewards of the ownership have been transferred. The transfer of risks
 and rewards is evaluated by comparing the exposure, before and after
 the transfer, with the variability in the amounts and timing of the net
 cash flows of the transferred assets.
 
 Available for sale financial assets (not covered under the notified
 Accounting Standards) are carried at fair value, with changes in fair
 value being recognised in Equity, unless they are designated in a fair
 value hedge relationship, where such changes are recognised in the
 Profit and Loss Account. Loans and receivables, considered not to be in
 the nature of short- term receivables, are discounted to their present
 value. Short-term receivables with no stated interest rates are
 measured at original invoice amount, if the effect of discounting is
 immaterial.  Non-interest-bearing deposits, meeting the criteria of
 financial asset, are discounted to their present value.
 
 Financial liabilities held for trading and liabilities designated at
 fair value, are carried at fair value through profit and loss.
 
 Other financial liabilities are carried at amortised cost using the
 effective interest method. The Company measures the short- term
 payables with no stated rate of interest at original invoice amount, if
 the effect of discounting is immaterial.
 
 Financial liabilities are derecognised when extinguished.
 
 (b) Determining fair value
 
 Where the classification of a financial instrument requires it to be
 stated at fair value, fair value is determined with reference to a
 quoted market price for that instrument or by using a valuation model.
 Where the fair value is calculated using financial markets pricing
 models, the methodology is to calculate the expected cash flows under
 the terms of each specific contract and then discount these values back
 to a present value.
 
 13.  Employee Stock Option Schemes
 
 The Company has formulated Employee Stock Option Schemes (ESOS) in
 accordance with the SEBI (Employee Stock Option Scheme and Employee
 Stock Purchase Scheme) Guidelines, 1999. The Schemes provides for grant
 of options to employees of the Company and its subsidiaries to acquire
 equity shares of the Company that vest in a graded manner and that are
 to be exercised within a specified period. In accordance with the SEBI
 Guidelines, the excess, if any, of the closing market price on the day
 prior to the grant of the options under ESOS over the exercise price is
 amortised on a straight line basis over the vesting period in the
 Profit and Loss account /Reserve for Business Restructure.
 
 Options with cash settlement features are fair valued at the time of
 the grant and at each reporting date. Changes in the fair value of the
 options at each reporting date are recognized in the Profit and Loss
 Account.
 
 14.  Income Tax
 
 Current tax is the amount of tax payable on the taxable income for the
 year as determined in accordance with the provisions of the Income Tax
 Act,1961.
 
 Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
 gives future economic benefits in the form of adjustment to future
 income tax liability, is considered as an asset if there is convincing
 evidence that the Company will pay normal income tax. Accordingly, MAT
 is recognised as an asset in the Balance Sheet when it is probable that
 future economic benefit associated with it will flow to the Company.
 
 Deferred tax is recognised on timing differences, being the differences
 between the taxable income and the accounting income that originate in
 one period and are capable of reversal in one or more subsequent
 periods. Deferred tax is measured using the tax rates and the tax laws
 enacted or substantially enacted as at the reporting date. Deferred tax
 liabilities are recognised for all timing differences. Deferred Tax
 Assets in respect of unabsorbed depreciation and carry forward of
 losses are recognised only if there is virtual certainty that there
 will be sufficient future taxable income available to realise such
 assets. Deferred tax assets are recognised for timing differences of
 other items only to the extent that reasonable certainty exists that
 sufficient future taxable income will be available against which these
 can be realised. Deferred tax assets and liabilities are offset if such
 items relate to taxes on income levied by the same governing tax laws
 and the Company has a legally enforceable right for such set off.
 Deferred tax assets are reviewed at each Balance sheet date for their
 realisability.
 
 Current and deferred tax relating to items directly recognised in
 equity are recognised in equity and not in the Profit and Loss account.
 
 15.  Deferred Revenue Expenditure
 
 The Company operates in an environment which requires the manufacturing
 facilities to be approved by industry regulators in certain territories
 prior to manufacture and sale of products in such territories. If the
 interval between the date the facility is ready to commence commercial
 production and the date at which commercial production is expected to
 commence is prolonged, all expenses incurred during this period are
 treated as deferred revenue expenditure and amortised over a period not
 exceeding 3 years from the date of receipt of approvals.
 
 16.  Use of estimates
 
 The preparation of the financial statements in conformity with Indian
 GAAP requires the Management to make estimates and assumptions
 considered in the reported amounts of assets and liabilities (including
 contingent liabilities) and the reported income and expenses during the
 year. The Management believes that the estimates used in preparation of
 the financial statements are prudent and reasonable. Future results
 could differ due to these estimates and the differences between the
 actual results and the estimates are recognised in the periods in which
 the results are known / materialise.
 
 Examples of such estimates include the useful life of fixed assets
 (including intangible assets), provision for doubtful debts / advances,
 provision for employee benefits, deferred employee compensations,
 allowances for slow-moving / non-moving inventory, provision for tax,
 estimate of percentage of completion of work under contracts for
 development services and sale of dossiers.
 
 17.  Provisions and Contingencies
 
 A provision is recognised when the Company has a present obligation as
 a result of past events 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 (excluding retirement
 benefits) are not discounted to their present value and are determined
 based on 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. Contingent liabilities are
 disclosed in Notes to the financial statements.
 
 18.  Earnings per share
 
 Basic earnings per share is computed by dividing the profit / (loss)
 after tax (including the post tax effect of extraordinary items, if
 any) by the weighted average number of equity shares outstanding during
 the year. Diluted earnings per share is computed by dividing the profit
 / (loss) after tax (including the post tax effect of any extraordinary
 items, if any) as adjusted for dividend, interest and other changes to
 expense or income relating to the dilutive potential equity shares, by
 the weighted average number of equity shares considered for deriving
 basic earnings per share and also the weighted average number of equity
 shares which could have been issued on the conversion of all dilutive
 potential equity shares. Potential equity shares are deemed to be
 dilutive if only their conversion to equity shares would decrease the
 net profit per share. Potential dilutive equity shares are deemed to be
 converted as at the beginning of the period, unless they have been
 issued at a later date. The dilutive potential equity shares are
 adjusted for the proceeds receivable had the shares been actually
 issued at fair value (i.e. average market value of the outstanding
 shares). Dilutive potential equity shares are determined independently
 for each period presented. The number of equity shares and potentially
 dilutive equity shares are adjusted for share splits / reverse share
 splits and bonus shares, as appropriate.
 
 19.  Hedge accounting
 
 The Company uses foreign currency forward contracts to hedge its risks
 associated with foreign currency fluctuations relating to highly
 probable forecast transactions. The Company designates such forward
 contracts in a cash flow hedging relationship by applying the hedge
 accounting principles set out in Accounting Standard 30 Financial
 Instruments: Recognition and Measurement.  These forward contracts are
 stated at fair value at each reporting date. Changes in the fair value
 of these forward contracts that are designated and effective as hedges
 of future cash flows are recognised directly in Hedge reserve account
 under Reserves and surplus, net of applicable deferred income taxes and
 the ineffective portion is recognised immediately in the Profit and
 Loss account. Amounts accumulated in the Hedge reserve account are
 reclassified to the Profit and Loss account in the same periods during
 which the forecasted transaction affects profit and loss. Hedge
 accounting is discontinued when the hedging instrument expires or is
 sold, terminated, or exercised, or no longer qualifies for hedge
 accounting. For forecasted transactions, any cumulative gain or loss on
 the hedging instrument recognised in Hedge reserve account is retained
 until the forecasted transaction occurs. If the forecasted transaction
 is no longer expected to occur, the net cumulative gain or loss
 recognised in Hedge reserve account is immediately transferred to the
 Profit and Loss account.
 
 20.  Derivative contracts
 
 The Company enters into derivative contracts in the nature of full
 currency swaps, currency options, forward contracts with an intention
 to hedge its existing assets and liabilities, firm commitments and
 highly probable transactions. Derivative contracts which are closely
 linked to the existing assets and liabilities are accounted as per the
 accounting policy stated for Foreign currency transactions and
 translations.
 
 Derivative contracts designated as a hedging instrument for highly
 probable forecast transactions are accounted as per the policy stated
 for Hedge accounting.
 
 All other derivative contracts are marked-to-market and losses are
 recognised in the Profit and Loss account. Gains arising on the same
 are not recognised on grounds of prudence.