(i) Basis of preparation
 
 The financial statements have been prepared to comply in all material
 respects with the notified accounting standards by Companies
 (Accounting Standards) Rules, 2006 and the relevant provisions of the
 Companies Act, 1956. The financial statements have been prepared under
 the historical cost convention on an accrual basis except in case of
 assets for which provision for impairment is made and revaluation is
 carried out. The accounting policies have been consistently applied by
 the Company and are consistent with those used in the previous period.
 
 (ii) Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 (a) Fixed assets, depreciation/amortisation and impairment
 
 Tangible assets:
 
 Fixed assets are stated at cost less accumulated depreciation and
 impairment losses, if any. The Company capitalises all costs relating
 to the acquisition and installation of fixed assets.
 
 The carrying amounts of fixed assets and intangible assets are reviewed
 at each balance sheet date to assess whether they are recorded in
 excess of their recoverable amounts and where carrying values exceed
 the estimated recoverable amount, assets are written down to the
 recoverable amount. The recoverable amount is the greater of the
 asset''s net selling price and value in use. In assessing value in use,
 the estimated future cash flows are discounted to their present value
 at the weighted average cost of capital.
 
 (b) Foreign currency translations
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount, the exchange rate between
 the reporting currency and the foreign currency at the date of
 transaction.
 
 Foreign currency monetary items are reported using closing foreign
 exchange rate. Non-monetary items, which are carried in terms of
 historical cost denominated in a foreign currency are reported using
 the exchange rate at the date of transaction.
 
 Exchange differences arising on the settlement of monetary items or on
 reporting company''s monetary items at rates different from those at
 which they were initially recorded during the year/period, or reported
 in previous financial statements, are recognized as income or as
 expenses in the year/period in which they arise.
 
 Premium or discount arising at the inception of forward exchange
 contracts is amortized as expense or income over the life of the
 contract. Exchange differences on such contracts are recognized in the
 statement of profit and loss in the year in which the exchange rates
 change. Any profit or loss arising on cancellation or renewal of
 forward exchange contract is recognized as income or as expense for the
 year/period.
 
 (c) Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis.  Long-term investments are stated at
 cost. Provision is made to recognise a diminution, other than
 temporary, in the value of investments.
 
 (d) Inventories
 
 All inventories are valued at moving weighted average price other than
 finished goods, which are valued on quarterly
 
 moving average price. Finished goods and Work in Progress is computed
 based on respective moving weighted average
 
 price of procured materials and appropriate share of labour and other
 manufacturing overheads.
 
 Inventories are valued at cost or net realizable value, whichever is
 lower. Cost also includes all charges incurred for bringing
 the inventories to their present location and condition. Excise and
 customs duty accrued on production or import of goods,
 as applicable, is included in the valuation of finished goods.
 
 Inventories of stores and spare parts are valued at cost.
 
 Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion
 and to make the sale.
 
 (e) Retirement and Other Employee benefits
 
 Retirement benefits in the form of Provident Fund, Family Pension Fund
 and Superannuation Schemes, which are defined contribution schemes, 
 are charged to the Profit & Loss Account of the period when the 
 contributions to the respective funds accrue. There are no other 
 obligations other than the contribution payable to the respective 
 trusts.
 
 Gratuity liability, which is a defined benefit scheme is provided for
 on the basis of an actuarial valuation made using Projected Unit 
 Credit Method at the end of each financial year.
 
 Short term compensated absences are provided for based on estimates.
 Long term compensated absences are provided for based on actuarial 
 valuation made using Projected Unit Credit Method at the end of 
 each financial year.
 
 Actuarial gains and losses are immediately taken to profit and loss
 account and are not deferred.
 
 (f) Revenue recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Sale of Goods
 
 Revenue is recognized when the significant risks and rewards of
 ownership of the goods have passed to the buyer, which coincides with
 dispatch of goods to customers. Revenues are recorded at invoice value,
 net of excise duty, sales tax, returns and trade discounts.
 
 Sale of Services
 
 Revenues from services are recognised on completion of rendering of
 services.
 
 Export Incentive
 
 Benefit on account of entitlement to import duty free materials under
 the Duty Entitlement Pass Book Schemes is recognized in the year of
 export.
 
 Royalties
 
 Revenue is recognized on an accrual basis in accordance with the terms
 of the relevant agreement.
 
 Interest
 
 Revenue is recognized on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 (g) Research and development
 
 Research costs are expensed as incurred. Development expenditure
 incurred on an individual project is carried forward when its future
 recoverability can reasonably be regarded as assured. Any expenditure
 carried forward is amortised over the period of expected future sales
 from the related project, not exceeding ten years.
 
 The carrying value of development costs is reviewed for impairment
 annually when the asset is not yet in use, and otherwise when events or
 changes in circumstances indicate that the carrying value may not be
 recoverable.
 
 (h) Income-tax
 
 Tax expense comprises of current, deferred and fringe benefit tax.
 
 Current income tax and fringe benefit tax is measured at the amount
 expected to be paid to the tax authorities in accordance with the
 provisions of Income Tax Act, 1961 as applicable to the financial year.
 Deferred income taxes reflects the impact of current year/period timing
 differences between taxable income and accounting income for the
 year/period and reversal of timing differences of earlier years.
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date. Deferred
 tax assets are recognised only to the extent it has timing differences
 the reversal of which will result in sufficient income. In situations
 where the company has unabsorbed depreciation or carry forward tax
 losses, all deferred tax assets are recognised only if there is virtual
 certainty supported by convincing evidence that they can be realised
 against future taxable profits.
 
 Minimum Alternative Tax (MAT) credit is recognized as an asset only
 when and to the extent there is convincing evidence that the Company
 will pay normal income tax during the specified period. MAT credit
 becomes eligible to be recognized as an asset in accordance with the
 recommendations contained in the Guidance Note issued by the Institute
 of Chartered Accountants of India, the said asset is created by way of
 credit to the profit and loss account and shown as MAT credit
 entitlement. The Company reviews the same at each balance sheet date
 and writes down the carrying amount of MAT credit entitlement to the
 extent there is no longer convincing evidence to the effect that
 Company will pay normal income tax during the specified period.
 
 (i) Leases
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased term are classified as
 operating lease. Operating lease payments are recognized as an expense
 in the Profit & Loss account on a straight-line basis over the lease
 term.
 
 (j) Financing/Borrowing cost
 
 Financing/Borrowing costs attributable to acquisition and/or
 construction of qualifying assets are capitalised as a part of the cost
 of such assets, up to the date such assets are ready for their intended
 use. Other financing/borrowing costs are charged to Profit & Loss
 account. Initial direct costs are recognised immediately as an expense.
 
 Expenses incurred in connection with raising of funds are amortised
 over the tenure of the borrowing.
 
 (k) Provisions
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event, 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 are not discounted to its
 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.
 
 (I) Earnings per share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the year/period attributable to equity shareholders (after
 deducting preference dividends and attributable taxes) by the weighted
 average number of equity shares outstanding during the year/period. The
 weighted average number of equity shares outstanding during the
 year/period are adjusted for events of bonus issue to existing
 shareholders and share split.
 
 For the purpose of calculating diluted earnings per share, the net
 profit for the year/period attributable to equity shareholders and the
 weighted average number of shares outstanding during the year/period
 are adjusted for the effects of all dilutive potential equity shares
 from the exercise of options on unissued share capital. The number of
 equity shares is the aggregate of the weighted average number of equity
 shares and the weighted average number of equity shares, which would be
 issued on the conversion of all the dilutive potential equity shares
 into equity shares. Options on unissued equity share capital are deemed
 to have been converted into equity shares.
 
 (m) Cash and Cash equivalents
 
 Cash and cash equivalents in the balance sheet comprise cash at bank
 and in hand.
 
 (n) Derivative Financial Instruments
 
 The Company uses derivative financial instruments such as option
 contracts and interest rate swaps to hedge its risk associated with
 foreign currency fluctuations and interest rates.
 
 As per the Institute of Chartered Accountants of India (ICAI)
 Announcement, accounting for derivative contracts, other than those
 covered under AS-11, are marked to market on a portfolio basis, and the
 net loss is charged to the income statement.  Net gains are ignored.
 
 (a) 70,123,304 (Previous Period - 70,123,304) fully paid-up equity
 shares of Rs. 51- each were allotted pursuant to scheme of arrangement to
 demerge pharmaceuticals business of Carol Info Services Limited (''CISL)
 (formerly Wockhardt Life Sciences Limited).
 
 (b) 2,400,000 (Previous Period - 2,400,000) fully paid-up equity shares
 of Rs. 51- each were allotted pursuant to amalgamation of Wockhardt
 Veterinary Limited (''WVL) with the Company.
 
 (c) 69,716,132 (Previous Period - 69,716,132) equity shares of Rs. 51-
 each fully paid up are held by Khorakiwala Holdings and Investments
 Private Limited, the holding company.
 
 (d) 439,200 (Previous Period - 439,200) fully paid equity shares of Rs.
 51- each were allotted pursuant to exercise of stock options.
 
 (e) 36,431,502 (Previous Period - 36,431,502) equity shares of Rs. 51-
 each were allotted as Bonus shares out of Capital Redemption Reserve in
 the year 2004.
 
 (a) Loans/advances to employees include remuneration paid to directors
 Rs. 8.07 million (Previous Period - Rs. 50.69 million) [maximum amount
 outstanding during the year Rs. 53.40 million (Previous Period - Rs. 50.69
 million)].
 
 The Company had made application to Central Government for payment of
 remuneration in excess of limits specified in Schedule XIII of the
 Companies Act, 1956, to Dr. H F Khorakiwala - Chairman. The Ministry of
 Corporate Affairs has approved a remuneration of Rs. 17.60 million per
 annum, payable to Dr. H F Khorakiwala during the three year period
 commencing from January 1, 2009 to December 31, 2011. As the said
 approval is not in line with remuneration proposed and approved by the
 shareholders, the Company has once again made an application to the
 Central Government for re-consideration of the same. Accordingly, the
 remuneration paid to Dr. H F Khorakiwala in excess of the above
 approval for the fifteen months ended March 31, 2010 and financial year
 ended March 31, 2011 amounting to Rs. 8.07 million has been shown as
 recoverable under loans/advances to employees.
 
 As on March 31, 2010 an amount of Rs. 50.69 million was recoverable. The
 said amount pertained to the excess remuneration paid to Dr. H F
 Khorakiwala and Mr. Rajiv Gandhi for the financial year ended December
 31, 2008 and fifteen months period ended March 31, 2010.  The Company
 has received approval from the Central Government for waiver of the
 excess amount paid during the year ended December 31, 2008 to Dr. H F
 Khorakiwala and Mr. Rajiv Gandhi. For the fifteen months period ended
 March 31, 2010 the Central Government has approved the remuneration
 proposed to be paid to Mr. Rajiv Gandhi.
 
 (b) Other Deposits includes deposit given to Carol Info Services
 Limited, the Company under same management Rs. 465 million (Previous
 Period - deposit/advance Rs. 475.52 million) [maximum outstanding during
 the year Rs. 475.52 million (Previous Period - Rs. 475.52 million)].
 
 (j) Information pursuant to clause 32 of the listing agreements with
 stock exchanges:
 
 Loans and advances to subsidiaries in the nature of loans comprises of
 amounts recoverable from Wockhardt Infrastructure Development Limited Rs.
 535.82 million (Previous Period - Rs. 461.01 million) [maximum amount
 outstanding during the year Rs. 535.82 million (Previous Period -Rs. 461.01
 million)], Vinton Healthcare Limited Rs. Nil (Previous Period - Rs.
 1,067.02 million)] [maximum outstanding during the yearRs. 1,164.18
 million (Previous Period-Rs. 1,067.02 million)], Wockhardt EU Operations
 (Swiss) AG Rs.243.72 million (Previous Period-Rs.  110.48 million) [maximum
 outstanding duringtheyearRs.256.73 million (PreviousPeriod-Rs. 1,042.70
 million)],Wockhardt HoldingCorpRs.513.01 million (Previous Period-Rs.
 516.90 million) [maximum outstanding duringtheyearRs. 540.79 million
 (Previous Period-Rs. 779.84 million), Z&Z Service GmbH Rs. Nil (Previous
 Period - Rs. Nil) [maximum amount outstanding during the year Rs. Nil
 (Previous Period - Rs. 202.97 million)], Morton Grove Pharmaceuticals,
 Inc. Rs. Nil (Previous Period - Rs. Nil) [maximum amount outstanding during
 the year Rs. Nil (Previous Period - Rs. 97.42 million)].
 
 Out of the above loans, interest on loan given to Wockhardt Holding
 Corp and Wockhardt EU Operations (Swiss) AG are based on spread plus
 LIBOR, as applicable. Hence, it is lower than interest rate specified
 u/s. 372A of Companies Act, 1956.