Notes:

1. Other Operating Income mainly includes export benefits, forex gain / (loss) (other than those relating to foreign currency borrowings) and share of revenue from Bayer A.G on Ciprofloxacin OD.
2. Employee cost related to R & D is included under the head "R & D Expenditure".
3. Foreign exchange (Gain )/ Loss represents exchange differences arising during the period(s) on foreign currency borrowings including Foreign Currency Convertible Bonds.
4. Pursuant to the Announcement "Accounting for Derivatives" by the Institute of Chartered Accountants of India, the Company intends to go for an early adoption of Accounting Standard 30 "Financial Instruments : Recognition and Measurement" (AS 30). Pending adoption of AS 30(when appropriate accounting would be carried out), it is pertinent to disclose the following –
   (i) The gain on fair valuation of underlying transactions against which the derivative contracts were undertaken amounts to Rs.13560 mn
   (net of tax). After offsetting the loss on fair valuation of such contracts outstanding on September 30, 2008 as mentioned in (ii) below, net
   gain amounts to Rs. 1050 million (net of tax).
   (ii) Without considering the effect of fair valuation of underlying transactions against which derivative contracts were undertaken, the loss
   on fair valuation of such outstanding contracts amounts to Rs. 12510 million (net of tax).
   The Company uses forward contracts and currency options as economic hedges and not for trading or speculative purposes.
   (iii) The limited review report for the previous quarter has been modified on the aforementioned matters.
5. Exceptional items for the quarter relate to the provision for inventory write off made by the Company as a matter of prudence consequent to import alert issued by US FDA on September16, 2008 for some of the products manufactured at two of the facilities of the Company.
6. The Committee of Board of Directors of the Company at its meeting held on October 20, 2008 approved allotment of Equity Shares and Warrants on preferential basis to Daiichi Sankyo Company Limited, Japan, ("Daiichi Sankyo") as per details given below :
   a) 46,258,063 fully paid Equity Shares of Rs. 5 each at a premium of Rs. 732 per share; and b) 23,834,333 Warrants-each warrant exercisable into one Equity Share of Rs. 5 at a premium of Rs.732 per share at any time between six months to eighteen months from the date of allotment at the option of the Warrant Holder ( Rs.73.70 per warrant being 10% of the exercise price has been received by the Company.)
   Post the preferential allotment, Daiichi Sankyo holds 52.5% of the Issued, Subscribed and Fully Paid-up Equity Shares of the Company comprising 220,690,423 shares per details given below:
   
   Number of Shares
   
   

   Acquisition of Shares under Open Offer	9,25,19,126
   Allotment of Shares on Preferential basis	4,62,58,063
   Acquisition of Shares from the existing Promoters of the Company	8,19,13,234
   (First of two tranches)
   Total	22,06,90,423

   
   
   Accordingly, effective October 20, 2008, the Company has become a subsidiary of Daiichi Sankyo.
7. On exercise of stock options, 41,902 Equity Shares have been allotted on October 13, 2008.
8. The total number of Employee Stock Options outstanding as at September 30, 2008 are 7,258,213 of which 3,519,738 have vested.
9. The entitlement of shares on exercise of stock options granted on or before October 3, 2002 would increase in the proportion of 3:5, keeping in view issue of Bonus shares on October 11, 2002.
10. The Company operates solely in the Pharmaceutical business and hence has only one reportable segment.
11. Figures for previous periods have been regrouped and recasted wherever necessary to make these comparable with those for the quarter ended Sept 30,2008.
12. Status of investor complaints: a) Pending as on June 30,2008-Nil; b) Received during the quarter-3;c) Disposed off during the quarter-3; d) Pending as on September 30, 2008- Nil.
13. The above results have been taken on record by the Board of Directors at its meeting held on Oct 31, 2008.