CONTIGENT LIABILTY

Basic earning per share is calculated by dividing
the net profit or loss for the year attributable to the
equity shareholders (after deducting preference
dividends and attributable taxes) by the weighted
average number of equity shares outstanding
during the year.

For the purpose of calculating the diluted earnings
per share, the net profit or loss for the period
attributable to equity shareholders and the
weighted average number of shares outstanding
during the period are adjusted for the effects of all
dilutive potential equity shares. The dilutive
potential equity shares are deemed converted as
at beginning of the period, unless they have been
issued at a later date.

2.8 Employee Retirement benefits

i) Short term employee benefits

All employee benefits payable/available
within twelve months of rendering the service
are classified as short term employee benefits.
Benefits such as salaries, wages and bonus
etc., are recognised in the statement of profit
and loss in the period in which the employee
renders the related service.

ii) Post - employment benefits

Defined contribution plans -

Retirement benefits in the form of provident
fund is a defined contribution scheme. The
company has no obligation, other than the
contribution payable to the provident fund.

Payments to defined contribution plans are
recognised as an expense when employees
have rendered service entitling them to the
contributions.

Defined benefit plans -

Gratuity

The company has an obligation towards
gratuity, a defined benefit retirement plan
covering eligible employees. The Gratuity
payment plan provides for a lump sum
payment to the vested employees at
retirement, death, incapacitation while in
employment or on termination of
employment of an amount based on the
respective employee's salary and tenure of
employment. Vesting occurs upon completion
of five years of service.

Liabilities with regard to the Gratuity Plan are
determined by actuarial valuation, performed
by an independent actuary, at each balance
sheet date using the projected unit credit
method. Re-measurements comprising of
actuarial gains and losses, are recognised in
other comprehensive income which are not
reclassified to profit or loss in the subsequent
periods.

iii) Long - term employee benefits

Leave Encashment

The liability of accumulating compensated
absences is determined by actuarial valuation
performed by an independent actuary at each
balance sheet date using projected unit credit
method.

2.9 Segment Reporting

The company operates in one reportable business
segment i.e. "Pharmaceuticals".

3.0 Cash and cash equivalents

Cash and cash equivalents in the Balance Sheet
comprise cash at bank and in hand and short¬
term deposits with banks that are readily
convertible into cash which are subject to
insignificant risk of changes in value and are held
for the purpose of meeting short-term cash
commitments.