1. Pursuant to the amendments to Clause 41 of the Listing Agreement, the company has opted to publish only the consolidated results of the company.

2. The above audited results for the quarter and year ended March 31, 2009 were reviewed by the Audit Committee on April 27, 2009 and then approved by the Board of Directors at their meeting held on April 28, 2009.

3. In Consolidated Accounts, the accounts of foreign subsidiaries / a Joint Venture Company are audited up to December 31, 2008 / February 28, 2009 and subject to limited review by their auditors for the balance period up to March 31, 2009.

4. During the quarter, 90,000,000 equity shares of Rs. 5/- each were cancelled and 100,885,305 equity shares of Rs. 5/- each were issued simultaneously pursuant to Composite Scheme of Arrangement and as a result, the paid up capital of the Company is increased to 136,499,013 equity shares of Rs. 5/- each fully paid up.

5. Pursuant to Composite Scheme of Arrangement becoming effective, the Consumer Products Division of the Company was demerged and transferred to Carnation Nutra Analogue Foods Ltd. [Name changed to Zydus Wellness Ltd], a subsidiary of the Company, with appointed date April 01, 2008 & therefore, the figures of the current period / year are not exactly comparable with those of the previous period / year.

6. Hitherto the Company used to follow AS-11 read with the Schedule VI to the Companies Act, 1956, and used to write off all the amount of exchange rate difference arising from Long Term Foreign Currency Monetary Items [LTFCMI] to the Profit & Loss Account. The Company has opted for accounting the exchange rate differences arising on the LTFCMI in accordance with the notification dated March 31, 2009 under the Companies [Accounting Standards] Amendment Rules, 2009 on Accounting Standard 11 relating to the effects of changes in foreign exchange rates. In view of above change in policy, consolidated net profit, net of tax, of the company for the year is higher by Rs 945 Lacs.

7. The Board of Directors have recommended a dividend of Rs. 4.50 per equity share on the increased capital of 136,499,013 equity shares of Rs 5/- each for the financial year ended March 31, 2009.

8. The Company has one segment of activity viz. Pharmaceuticals.

Pankaj R. Patel
Chairman & Managing Director