1. The above results for the year ended March 31, 2009, as reviewed by the Audit Committee, were considered and approved by the Board of Directors at its meeting held on June 06, 2009.

2. The Company is primarily engaged in the manufacture of Active Pharmaceutical Ingredients and intermediates. Accordingly there are no reportable segments as per Accounting Standard - 17 notified under the Company Act, 1956.

3. The consolidated results include the audited results of the subsidiaries Divis Laboratories (USA) Inc and Divi´s Laboratories Europe AG.

4. Other Expenses include an amount of Rs 4553 lakhs towards loss on forex fluctuations and forward hedging / swap arrangements and an amount of Rs 490 lakhs towards employee compensation expense on Employee stock options.

5. The company has not exercised the option available under clause No.46 of Accounting Standard - II notified under the Companies Accounting standard (Amendment) Rules, 2009 for capitalizing or deferring exchange differences on long term monetary items.

6. The Company made provision for income-tax in respect of its profits from SEZ Unit considering 100% exemption on profits derived from exports as against the prevailing interpretation of Section 10AA(7) of the Income-tax Act, 1961 for exemption of export profits of the SEZ Unit as a proportion of the export turnover of the SEZ Unit to the total turnover of the company as a whole. Had the prevailing provision of Section 10AA(7) and its current interpretation been followed, the provision for the current income-tax will be higher by Rs 3425 lakhs and the profit after tax (PAT) for the year will be lower to that extent.

7. The Board of Directors of the company has recommended a dividend of Rs 6 per equity share of Rs 2 each (i.e. 300%), subject to approval of members.

8. The Board has also recommended issue of bonus shares in the ratio of one share for every share held, subject to approval of members.

9. The figures for the pervious year / period have been regrouped or recasted, wherever necessary.

Dr. Murali K Divi
Chairman & Managing Director