(a) Basis of Accounting
 
 The financial statements have been prepared and presented under the
 historical cost convention on an accrual basis of accounting and in
 accordance with the provisions of the Companies Act, 1956 and
 accounting principles generally accepted in India and comply with the
 accounting standards prescribed in the Companies (Accounting Standards)
 Rules, 2006 issued by the Central Government, in consultation with the
 National Advisory Committee on Accounting Standards, to the extent
 applicable.
 
 (b) Fixed Assets
 
 Fixed assets are stated at cost of acquisition, including any
 attributable cost for bringing the asset to its working condition for
 its intended use, less accumulated depreciation and impairment loss.
 
 Leasehold Land and Leasehold Improvements are amortised over the period
 of the lease.
 
 Fixed assets costing Rs. 5,000 or less are fully depreciated in the
 period/year of acquisition. Fixed assets costing more than Rs. 5,000
 but up to USD 5,000 are fully depreciated in the period/year of
 acquisition except for: multiple-like items the cost of which is over
 USD 10,000 in aggregate; and
 
 unlike items of capital nature within an asset category for large
 scale projects the aggregate cost of which exceeds USD 10,000 are
 considered as one asset and depreciated in accordance with the
 accounting policy and depreciation rate specified above.
 
 Computer Software are recorded at its acquisition cost and is amortised
 on straight-line basis over 3 to 5 years, which in managements
 estimate represents the period during which economic benefits will be
 derived from their use. Cost of computer software not exceeding Rs. 50
 lakhs is fully amortised in the period/year of acquisition.
 
 (c) Impairment of Assets
 
 In accordance with Accounting Standard 28 (AS 28) on Impairment of
 Assets where there is an indication of impairment of the Companys
 assets, the carrying amounts of the Companys assets are reviewed at
 each Balance Sheet date to determine whether there is any impairment.
 The recoverable amount of the assets (or where applicable that of the
 cash generating unit to which the asset belongs) is estimated at the
 higher of its net selling price and its value in use. Value in use is
 the present value of estimated future cash flows expected to arise from
 the continuing use of the assets and from its disposal at the end of
 its useful life. An impairment loss is recognised whenever the carrying
 amount of an asset or a cash-generating unit exceeds its recoverable
 amount. Impairment loss is recognized in the Profit and Loss Account.
 
 (d) Inventories
 
 Inventories are valued at lower of cost and net realisable value. Cost
 is determined on First-in-First-out basis.  Cost of work-in-progress
 and finished goods includes cost of materials, direct labour and
 manufacturing overheads, where applicable. Stores and Spares are valued
 at cost.
 
 Finished goods expiring within 90 days (near-expiry inventory) as at
 the Balance Sheet date have been fully provided for.
 
 (e) Samples
 
 Physicians samples are valued at standard cost, which approximates
 actual cost and are charged to the Profit and Loss account when
 distributed.
 
 (f) Foreign Currency Transactions
 
 Transactions in foreign exchange are accounted for at the standard
 exchange rates as determined by the Company on a monthly basis. The
 exchange differences arising on foreign exchange transactions settled
 during the year are recognized in the Profit and Loss Account of the
 year.
 
 Monetary assets and liabilities in foreign exchange, which are
 outstanding as at the year end, are translated at year end at the
 closing exchange rate and the resultant exchange differences are
 recognized in the Profit and Loss Account.
 
 (g) Revenue Recognition
 
 Revenue from sale of goods is recognised when significant risks and
 rewards of ownership are transferred to the customers. Sales are net of
 sales returns and trade discounts. Revenue from services is recognized
 as and when services are rendered and related costs are incurred, in
 accordance with the terms of the specific contracts. Interest income is
 recognised on time proportionate basis.
 
 (h) Employee Benefits
 
 (i) Long-term Employee Benefits
 
 (a) Defined Contribution Plans
 
 The Company has Defined Contribution Plans for post employment benefits
 in the form of Provident Fund, Superannuation Fund and Employees
 Pension Scheme which are administered through Government of India
 and/or Life Insurance Corporation of India (LIC). Provident Fund,
 Superannuation Fund (which constitutes an insured benefit) and
 Employees Pension Scheme are classified as Defined Contribution Plans
 as the Company has no further obligation beyond making
 
 the contributions. The Companys contributions to Defined Contribution
 Plans are charged to the Profit and Loss Account as incurred.
 
 (b) Defined Benefit Plans
 
 The Company has Defined Benefit Plans for post employment benefits in
 the form of Gratuity and Leave Encashment. Gratuity schemes of the
 Company are administered through LIC. The employees of the Company are
 entitled to Leave Encashment as per the policy of the Company.
 Liability for Defined Benefit Plans is provided on the basis of
 valuations, as at the Balance Sheet date, carried out by independent
 actuary. The actuarial valuation method used by independent actuary for
 measuring the liability is the Projected Unit Credit method.
 
 The obligation is measured at the present value of the estimated future
 cash flows. The discount rates used for determining the present value
 of the obligation under defined benefit plan, are based on the market
 yields on Government securities as at the Balance Sheet date.
 
 (c) Other Long-term Employee Benefit
 
 The employees of the Company are entitled to Compensated Absences as
 per the policy of the Company. Liability for Compensated Absences is
 provided on the basis of valuations, as at the Balance Sheet date,
 carried out by independent actuary. The actuarial valuation method used
 by independent actuary for measuring the liability is the Projected
 Unit Credit method. The discount rates used for determining the present
 value of the obligation under defined benefit plan, are based on the
 market yields on Government securities as at the Balance Sheet date.
 
 (ii) Actuarial gains and losses comprise experience adjustments and the
 effects of changes in actuarial assumptions and are recognised
 immediately in the Profit and Loss Account as income or expense.
 
 (i) Leases
 
 Lease rentals under an operating lease, are recognized as an expense in
 the statement of Profit and Loss Account on a straight line basis over
 the lease term. Lease income from operating leases are recognized in
 the Profit and Loss account on a straight line basis over the lease
 term.
 
 (j) Voluntary Retirement Scheme (VRS)
 
 Liability under the VRS is accrued on the acceptance of the
 applications of the employees under the VRS scheme issued by the
 Company. Compensation paid during the current year and previous year
 under the VRS is charged to the Profit and Loss Account.
 
 (k) Expenditure on Research and Development
 
 Revenue expenditure is recognised as an expense in the period/year in
 which it is incurred and the expenditure on capital assets is
 depreciated over the useful lives of the assets.
 
 (l) Taxes on Income
 
 Income tax expense comprises current tax, deferred tax charge or credit
 and fringe benefits tax. Provision for current tax is based on the
 results for the 16 months period ended 31st March, 2011, in accordance
 with the provisions of the Income Tax Act, 1961.
 
 The deferred tax charge or credit is recognized using substantively
 enacted rates. In the case of unabsorbed depreciation or carried
 forward losses, deferred tax assets are recognised only to the extent
 there is virtual certainty of realisation of such assets. Other
 deferred tax assets are recognized only to the extent there is
 reasonable certainty of realization in future. Such assets are reviewed
 as at each Balance Sheet date to reassess realization.
 
 Fringe Benefit Tax is not applicable since April 2009.