As at 31 st 
                                         March, 2011      As at 31st 
                                                         March, 2010
 
                                       Rs. in Million   Rs. in Million
 
 1 CONTINGENT LIABILITIES NOT PROVIDED FOR
 
 Guarantees Given by the bankers on 
 behalf of the Company                        160.1           106.4
 
 Corporate Guarantees                          46.0            51.5
 
 Letters of Credit for Imports                166.7           505.5
 
 Liabilities Disputed - Appeals filed 
 with respect to :
 
 Income Tax on account of Disallowances / 
 Additions                                    290.2           446.6
 
 Sales Tax on account of Rebate / 
 Classification                                25.6            11.4
 
 Excise Duty on account of Valuation / 
 Cenvat Credit                                318.4           314.0
 
 ESIC Contribution on account of
 applicability                                  0.2             0.2
 
 Drug Price Equalisation Account 
 [DPEA] on account of                          14.0            14.0
 demand towards unintended benefit, 
 including interest there on, enjoyed
 by the Company
 
 Demand by JDGFT import duty with respect to 
 import                                        11.5            11.1
 alleged to be in excess of entitlement as 
 per the Advanced Licence Scheme
 
 Other Claims against the Company not          15.3             6.7
 acknowledged as debts
 
 10 The net exchange gain of Rs. 307.3 Million (Previous Year gain of Rs.
 36.4 Million) is included under various heads in the Profit and Loss
 account.
 
 11 Disclosures under the Micro, Small and Medium Enterprises
 Development Act, 2006:
 
 (a) An amount of Rs. 33.0 Million (Previous Year Rs.14.8 Million) and Rs. NIL
 (Previous Year Rs. NIL) was due and outstanding to suppliers as at the
 end of the accounting year on account of Principal and Interest
 respectively.
 
 (b) No interest was paid during the year.
 
 (c) No interest is payable at the end of the year under Micro, Small
 and Medium Enterprises Development Act, 2006.
 
 (d) No amount of interest was accrued and unpaid at the end of the
 accounting year.
 
 The above information and that given in Schedule 12 - “Current
 Liabilities and Provisions” regarding Micro, Small and Medium
 Enterprises has been determined to the extent such parties have been
 identified on the basis of information available with the Company.This
 has been relied upon by the auditors.
 
 12 Disclosure with respect to Accounting Standards notified by the
 Companies (Accounting Standards) Rules, 2006 : 
 
 (i) Related Party Disclosure - as per Annexure ‘A'' Consequent to the
 approval of the members of the Company and upon requisite regulatory
 compliance, during the year, one equity share of Rs.  5 each of the
 Company is sub-divided into five equity shares of Rs.1 each fully
 paid-up. The Earnings Per Share of Rs.1 each has been restated for all
 the corresponding periods in accordance with Accounting Standard
 (AS-20) on “Earnings Per Share” as notified under The Companies
 (Accounting Standards) Rules, 2006.
 
 (iv) Accounting Standard (AS-15) on Employee benefits
 
 Contributions are made to Recognised Provident Fund/ Government
 Provident Fund, Family Pension Fund, ESIC and other Statutory Funds
 which covers all regular employees. While both the employees and the
 Company make predetermined contributions to the Provident Fund and
 ESIC, contribution to the Family Pension Fund are made only by the
 Company. The contributions are normally based on a certain proportion
 of the employee''s salary. Amount recognised as expense in respect of
 these defined contribution plans, aggregate to Rs. 108.1 Million
 (Previous year Rs. 90.8 Million)
 
 In respect of Gratuity, Contributions are made to LIC''s Recognised
 Group Gratuity Fund Scheme based on amount demanded by LIC of India.
 Provision for Gratuity is based on actuarial valuation done by
 independent actuary as at the year end. Actuarial Valuation for
 Compensated Absences is done as at the year end and the provision is
 made as per Company rules amounting to Rs. 43.2 Million (Previous Year Rs.
 38.8 Million) and it covers all regular employees. Major drivers in
 actuarial assumptions, typically, are years of service and employee
 compensation. After the issuance of the Accounting Standard 15 on
 ‘Employee Benefits'', commitments are actuarially determined using the
 ‘Projected Unit Credit'' method. Gains and losses on changes in
 actuarial assumptions are accounted for in the Profit and Loss account.
 
 (v) Accounting Standard (AS-19) on Operating Leases
 
 (a) The company has obtained certain premises for its business
 operations (including furniture and fittings, therein as applicable)
 under operating lease or leave and license agreements. These are
 generally not non-cancellable and range between 11 months to 5 years
 under leave and licence, or longer for other lease and are renewable by
 mutual consent on mutually agreeable terms. The Company has given
 refundable interest free security deposits in accordance with the
 agreed terms.
 
 (b) Lease payments are recognised in the Profit and Loss Account under
 “Rent” in Schedule 17.
 
 17 Intangible assets consisting of trademarks, designs, technical
 knowhow, non compete fees and other intangible assets are stated at
 cost of acquisition based on their agreements and are available to the
 Company in perpetuity. The depreciable amount of intangible assets is
 arrived at based on the management''s best estimates of useful lives of
 such assets after due consideration as regards their expected usage,
 the product life cycles, technical and technological obsolescence,
 market demand for products, competition and their expected future
 benefits to the Company.
 
 18 Legal Proceedings
 
 The Company and / or its subsidiaries are involved in various legal
 proceedings including product liability, contracts, employment claims
 and other regulatory matters relating to conduct of its business. The
 Company carries product liability insurance / is contractually
 indemnified by the manufacturer, in an amount it believes is sufficient
 for its needs. In respect of other claims, the Company believes, these
 claims do not constitute material litigation matters and with its
 meritorious defences the ultimate disposition of these matters will not
 have material adverse effect on its Financial Statements.
 
 19 Taro Pharmaceutical Industries Ltd (Taro), a pharmaceutical company,
 incorporated in Israel became a subsidiary of the Company on September
 20, 2010.
 
 20 As per the best estimate of the management, no provision is required
 to be made as per Accounting Standard (AS) 29 as notified by Companies
 (Accounting Standards) Rules, 2006, in respect of any present
 obligation as a result of a past event that could lead to a probable
 outflow of resources, which would be required to settle the obligation.
 
 22 The Company enters into Forward Exchange Contracts being derivative
 instruments, which are not intended for trading or speculative
 purposes, but for hedge purposes, to establish the amount of reporting
 currency required or available at the settlement date.
 
 23 Previous years'' figures are restated / regrouped / rearranged
 wherever necessary in order to conform to current years'' groupings and
 classifications.
 
 
 
 Annexure ‘A'' to Notes on Account
 
 Names of related parties and description of relationship
 
 1.  Subsidaries 
 
 Alkaloida Chemical Company Zrt
 
 Caraco Pharmaceutical Laboratories Ltd.
 
 Chattem Chemical Inc.
 
 Green Eco Development Centre Ltd.
 
 OOO “Sun Pharmaceutical Industries” Ltd.
 
 Sun Farmaceutica Ltda (upto 30th September, 2010)
 
 TKS Farmaceutica Ltda.
 
 Sun Pharma De Mexico S.A. DE C.V.
 
 Sun Pharma De Venezuela, CA
 
 Sun Pharma Global Inc.
 
 Sun Pharmaceutical (Bangladesh) Ltd.
 
 Sun Pharmaceutical Industries (Europe) B.V.
 
 Sun Pharmaceutical Industries Inc.
 
 Sun Pharmaceutical Spain, S.L.
 
 Sun Pharmaceuticals France
 
 Sun Pharmaceuticals Germany GmbH
 
 Sun Pharma Global (FZE)
 
 Sun Pharmaceuticals Italia S.R.L.
 
 Sun Pharmaceuticals UK Ltd.
 
 Taro Pharmaeutical Industries Ltd.
 
 Sun Pharmaceutical Industries (Australia) Pty. Ltd.
 
 Aditya Acquisition Company Ltd.
 
 Sun Pharmaceuticals (SA) (Pty) Ltd.
 
 Sun Global Canada Pty Ltd.
 
 Sun Pharmaceutical Peru S.A.C.
 
 Taro Development Corporation
 
 Sun Development Corporation I (upto 20th September, 2010)
 
 ZAO Sun Pharma Industries Ltd.
 
 SPIL De Mexico S.A. DE C.V.
 
 Caraco Pharma Inc.
 
 3 Sky Line LLC
 
 One Commerce Drive LLC
 
 Taro Healthcare Ltd.
 
 Taro Hungary Intellectual Property Licensing LLC
 
 Taro Industries Ltd.
 
 Taro International Ltd - Isaral
 
 Taro Laboratories Ltd.
 
 Taro Manufacturing Ltd.
 
 Taro Pharmaceutical INC.
 
 Taro Pharmaceutical India Pvt. Ltd.
 
 Taro Pharmaceutical Laboratories INC.
 
 Taro Pharmaceutical U.S.A., INC.
 
 Taro Pharmaceuticals Europe B.V.
 
 Taro Pharmaceuticals Ireland Ltd.
 
 Taro Pharmaceuticals North America INC
 
 Taro Pharmaceuticals UK Ltd.
 
 Taro Research Institute Ltd.
 
 Tarochem Ltd.
 
 Morley and Company Inc.
 
 Sun Laboratories FZE
 
 Taro Pharmaceuticals Canada Ltd.
 
 Sun Laboratories Inc.
 
 Taro International Ltd - UK
 
 2.  Controlled Entity
 
 Sun Pharma Exports
 
 Sun Pharmaceutical Industries
 
 Sun Pharma Sikkim
 
 Sun Pharma Drugs
 
 Universal Enterprise Pvt. Ltd.
 
 3.  Key Management Personnel
 
 Mr. Dilip S. Shanghvi Chairman & Managing Director
 
 Mr. Sudhir V. Valia Wholetime Director
 
 Mr. Sailesh T. Desai Wholetime Director
 
 Mr. S. Kalyanasundaram Chief Executive Officer and Wholetime Director
 
 4.  Relatives of Key Management Personnel 
 
 Mr. Aalok Shanghvi Son of Chairman and Managing Director
 
 Ms. Khyati Valia Daughter of Wholetime Director
 
 5.  Enterprise under significant Influence of Key Management Personnel
 or their relatives
 
 Sun Petrochemicals Pvt. Ltd.
 
 Navjivan Rasayan (Gujarat) Pvt. Ltd.
 
 Sun Pharma Advanced Research Company Ltd.