1.1 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 (as amended) and the
 relevant provisions ofthe Companies Act, 1956. The financial statements
 have been prepared on accrual basis under the historical cost
 convention except for certain financial and other assets and
 liabilities which are measured on fair value basis as permitted by:
 
 (i) the Scheme ofArrangement approved bythe Honorable High Courts
 ofJudicature (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'' issued bythe Institute
 of Chartered Accountants of India, to the extent such standards do not
 conflict with other standards notified under Companies (Accounting
 Standards) Rules, 2006(as amended).
 
 The accounting policies adopted in the preparation of the financial
 statements are consistent with those followed in the previous year.
 
 1.2 Use of estimates :
 
 The preparation ofthe 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 incomes and expenses during
 the year. The Management believes that the estimates used in
 preparation ofthe 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.
 
 1.3 Inventories :
 
 Inventories comprise raw materials, packing materials, consumables,
 work in progress 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:
 
 1.4 Cash flow statement:
 
 Cash flows are reported using the indirect method, whereby profit /
 (loss) before extraordinary items and tax is adjusted for the effects
 of transactions of non-cash nature and any deferrals or accruals of
 past or future cash receipts or payments. The cash flows from
 operating, investing and financing activities ofthe Company are
 segregated based on the available information.
 
 Cash and cash equivalents (for the purpose of cash flow statement)
 
 Cash comprises cash on hand and demand deposits with banks. Cash
 equivalents are short-term balances, highly liquid investments that are
 readily convertible into known amounts of cash and which are subject to
 insignificant risk ofchanges in value.
 
 1.5 Depreciation/ Amortisation :
 
 The following assets are depreciated / amortised over the useful lives
 under the straight line method.
 
 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 as permitted under the
 Scheme, depreciation / amortisation is recorded under the straight line
 method over the balance useful life ofthe respective assets.
 
 Individual assets costing less than Rs. 5,000 are depreciated in full
 in the year of purchase.
 
 The estimated useful life ofthe intangible assets and the amortisation
 period are reviewed at the end ofeach financial year and the
 amortisation method is revised to reflect the changed useful life.
 
 1.6 Revenue :
 
 (a) Revenue from sales is recognised on transfer of significant risks
 and rewards to the purchaser, which generally coincides with the
 delivery of the goods in terms of the arrangement with the purchaser.
 Sales include excise duty and are stated net of discounts, other taxes,
 and sales returns.
 
 (b) Revenue from product development services:
 
 (i) In the respect of contracts where the Company undertakes to develop
 products for its customers (on an end- to end basis), revenues are
 recognised based on technical estimates ofthe stage of work completed
 under the contracts.
 
 (ii) In respect of other contracts where the Company performs
 specifically identified services in the development ofthe products,
 revenues are recognised on the basis ofthe performance milestones
 provided in the contract.
 
 (c) Revenue from contract manufacturing is recognised based on the
 services rendered in accordance with the terms of the contract.
 
 (d) 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.
 
 (e) Income from rendering advisory services is recognised based on
 contractual terms.
 
 (f) Share of Profits and Royalty incomes under manufacturing and supply
 agreements with Customers are accrued based on confirmation received
 from customers.
 
 1.7 Other income :
 
 Dividends are recognised whenever the right to receive dividends is
 established. Interest income is recognised on accrual basis.
 
 The Company provides corporate guarantees to subsidiaries and charges a
 commission for providing such guarantees.  Such incomes are accrued in
 terms ofthe agreements with the parties.
 
 1.8 Tangible 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. Machinery spares which
 can be used only in connection with an item of fixed asset and whose
 use is expected to be irregular are capitalised and depreciated over
 the useful life ofthe principal item ofthe relevant assets. Subsequent
 expenditure relating to fixed assets is capitalised only if such
 expenditure results in an increase in the future benefits from such
 asset beyond its previously assessed standard of performance.
 
 Fixed assets acquired in full or part exchange for another asset are
 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 assets acquired or asset given up,
 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.
 
 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.
 
 1.9 Intangible assets :
 
 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 ofthe asset. In-house
 product development costs are capitalised in accordance with paragraph
 2.20 below.
 
 1.10 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.
 
 1.11 Foreign currency transactions and translations :
 
 Initial recognition
 
 Transactions in foreign currencies 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) 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.
 
 In the case of non-integral operations, assets and the liabilities are
 translated at the exchange rates prevailing on the balance sheet date.
 Revenue and expenses are translated at yearly average exchange rates
 prevailing during the year.
 
 Treatment of exchange differences
 
 Exchange differences arising on settlement / restatement of foreign
 currency monetary assets and liabilities of the Company and their
 integral foreign operations are recognised as income or expense in the
 Statement of Profit and Loss.  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
 the Exchange reserve (on consolidation), 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 paragraph2.23 in this Section for accounting
 for forward exchange contracts relating to firm commitments and highly
 probable forecast transactions.
 
 1.12 Exceptional items :
 
 The Company consistently classifies the following as exceptional items
 in the Statement of Profit and Loss:
 
 (a) Exchange gain / loss arising on account of restatement and
 settlement of (i) long term foreign currency loans, (ii) foreign
 currency loans given to (or received from) subsidiaries ofthe Company,
 (iii) Foreign Currency Convertibles Bonds (FCCBs);
 
 (b) Changes in fair value of embedded derivatives in FCCBs and option
 contracts;
 
 (c) Profit / loss on sale of non-current investments and provision for
 diminution in non-current investments.
 
 1.13 Investments :
 
 Long-term investments are carried individually at cost less provision
 for diminution, other than temporary, in the value of such investments.
 Current investments are carried individually, at the lower of cost and
 fair value. Costs of investments include acquisition charges such as
 brokerage, fees and duties.
 
 1.14 Employee benefits:
 
 Employee benefits include provident 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 and Life Insurance Corporation of India. 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, with
 actuarial valuation being carried out at each balance sheet date.
 Actuarial gains and losses are recognised in the Statement of Profit
 and Loss in the period in which they occur. Past service cost is
 recognised immediately to the extent that the benefits are already
 vested and otherwise is amortised on a straight-line basis over the
 average period until the benefits become vested. The retirement
 obligation recognised in the balance sheet represents the present value
 ofthe defined benefit obligation as adjusted for unrecognised past
 service cost, as reduced bythe fair value ofthe 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 are recognised
 during the period when the employees render the service. These benefits
 include performance incentives and compensated absences which are
 expected to occur within twelve months after the end ofthe period in
 which the employee renders the related service. The cost of such
 compensated absences is 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 ofthe period in which the employee renders the
 related services are recognised as a liability at the present value
 ofthe defined benefit obligation as at the balance sheet date less the
 fair value ofthe plan assets out of which the obligations are expected
 to be settled.
 
 Long Term Incentive Plan (''Plan''):
 
 Under the Plan, 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.
 
 1.15 Employee share based payments :
 
 The Company has formulated Employee Stock Option Plans (ESOP) in
 accordance with the SEBI (Employee Stock Option Scheme and Employee
 Stock Purchase Scheme) Guidelines, 1999. The Plans provide 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, ofthe closing market price on the day
 prior to the grant of the options (under ESOP) over the exercise price
 is amortised on a straight line basis over the vesting period in the
 Statement of Profit and Loss /Reserve for Business Restructure.
 
 Employee stock options granted under the above ESOP on after April 1,
 2005 are accounted under the ''Intrinsic Value Method'' stated in the
 Guidance Note on Employee Share Based Payments issued by the Institute
 of Chartered Accountants of India.
 
 Options with a cash settlement feature are fair valued at the time of
 the grant and at each reporting date. Changes in the fair value ofthe
 Options at each reporting date are recognised in the Statement of
 Profit and Loss.
 
 1.16 Borrowing costs:
 
 Borrowing costs includes interest, amortisation of ancillary costs
 incurred and exchange differences arising from foreign currency
 borrowings to the extent they are regarded as an adjustment to the
 interest cost. Borrowing costs, related to acquisition for qualifying
 assets, pertaining to the period from commencement of activities
 relating to construction / development of the qualifying asset upto the
 date of capitalisation of such asset is added to the cost of the
 assets. Capitalisation of borrowing costs is suspended and charged to
 the Statement of Profit and Loss during extended periods when active
 development activity on the qualifying assets is interrupted.
 
 1.17 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 Statement of Profit and Loss on a straight-line basis.
 
 1.18 Earnings per share :
 
 Basic earnings per share is computed by dividing the profit/(loss)
 aftertax (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 charges 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 ofthe 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.
 
 1.19 Taxes on income :
 
 Current tax is the amount of tax payable on the taxable income for the
 year as determined in accordance with the provisions ofthe Income-tax
 Act, 1961.
 
 Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
 gives future economic benefits in the form ofadjustment 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 substantively enacted as at the reporting date. Deferred tax
 liabilities are recognised for all timing differences. Deferred tax
 assets in respect of unabsorbed depreciation and carryforward 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, is recognised in equity and not in the Statement of Profit and
 Loss.
 
 1.20 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 Statement of Profit and Loss / 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 tangible fixed
 assets and intangible fixed assets.
 
 1.21 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
 ofthe 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 Statement of Profit and Loss.
 
 1.22 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 not
 recognised but are disclosed in the notes to the financial statement.
 
 1.23 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 Statement of
 Profit and Loss, loans and receivables, held to maturity investments
 and available for sale financial assets.
 
 Financial assets ofthe Company mainly include cash and bank balances,
 trade receivables, loans and advances and derivative financial
 instruments with a positive fair value.
 
 Financial liabilities of the Company mainly comprise secured and
 unsecured loans, trade payables, 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 ofthe
 instrument. Financial assets are derecognised when all ofrisks and
 rewards ofthe 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 ofthe 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
 Statement of Profit and Loss. 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 Statement of 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.
 
 (c) Hedge accounting
 
 The Company uses foreign currency forward contracts to hedge its risks
 associated with foreign currency fluctuations relating to firm
 commitments and 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''
 issued by the Institute of Chartered Accountants of India. These
 forward contracts are stated at fair value at each reporting date.
 Changes in the fair value of these forward contracts that are
 designated as hedges of future cash flows are recognised directly in
 ''Hedge reserve account'' under Reserves and surplus, net of applicable
 deferred income taxes, if any, to the extent such hedges are considered
 effective and the ineffective portion is recognised immediately in the
 Statement of Profit and Loss. Amounts accumulated in the Hedge reserve
 account are reclassified to the Statement of Profit and Loss 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
 exchange 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 exchange gain or loss recognised in Hedge reserve account is
 immediately transferred to the Statement of Profit and Loss.
 
 (d) Derivative contracts
 
 The Company enters into derivative contracts in the nature of foreign
 currency swaps, currency options, forward contracts with an intention
 to hedge its existing assets and liabilities, firm commitments and
 highly probable transactions. Such 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 / gains
 are recognised in the Statement of Profit and Loss.
 
 Detail of the rights, preferences and restrictions attaching to each
 class of shares outstanding Equity shares of Rs. 10/- each: The Company
 has only one class of equity shares, having a par value of Rs.10/-. The
 holder of equity shares is entitled to one vote per share. The Company
 declares and pays dividends in Indian rupees. The dividend proposed by
 the Board of Directors is subject to approval by the shareholders at
 the ensuing Annual General Meeting. In the event of liquidation ofthe
 Company, the holders ofthe equity shares will be entitled to receive
 any of the remaining assets ofthe Company, after distribution to all
 other parties concerned. The distribution will be in proportion to
 number of equity shares held by the shareholders.