Provision for Taxation
- Current Tax
- Deferred Tax
- Fringe Benefit Tax

177494293
59.19

Notes :

1. The Company is exclusively in the pharmaceutical business segment.
2. *The paid-up equity share capital stands increased to Rs.155.46 crores (77,72,91,357 equity shares of Rs.2 each) upon allotment of 1,10,46,310 shares underlying Global Depository Receipts (GDRs) and 46,63,74,814 bonus shares during the quarter ended June 2006.
3. **The quarterly Earnings Per Share (EPS) figures are not annualized and previous years’ EPS figures are adjusted for the bonus issue.
4. No investor grievances were pending at the beginning of the quarter. During the quarter ended 31st March, 2007, fourteen investor grievances were received. As of 31st March, 2007 all grievances have been suitably replied to.
5. The Company had challenged the inclusion of the drugs – Salbutamol, Theophylline, Ciprofloxacin, Cloxacillin and Norfloxacin – within the ambit of price control. The petition filed by the Company had been decided in favour of the Company by the Bombay High Court, which held that the said drugs were outside the ambit of price control. However, on an appeal filed by the government, the Supreme Court remanded the matter to the Bombay High Court for further and more detailed examination in the light of the principles laid down by the Supreme Court. Pending this, the Supreme Court also gave liberty to government to recover 50% of the amount that they had claimed was overcharged. The government had sent notices to the Company demanding an aggregate of Rs.180.37 crores in respect of the said drugs, which, according to them, was 50% of the amount allegedly overcharged by the Company till July 2003. The Company had not deposited the amount demanded, as in another petition challenging the price fixation notifications of these drugs, the Karnataka High Court had granted an interim stay against the government. Subsequently, in separate proceedings on the same basis as before the Karnataka High Court, the Allahabad High Court had ruled that the prices fixed by the government in respect of the said drugs were ultra vires, illegal and void. On an appeal filed by the government against this ruling, the Supreme Court stayed the judgment of the Allahabad High Court but directed that no prosecution should be launched or coercive action taken against the Company for recovery, till the appeal was finally decided. The Company has, subsequently, in April 2007 received demand notices for the entire 100% of the aforesaid amount along with interest, aggregating Rs.748.27 crores - contrary to the orders of the Supreme Court. The Company has received legal advice that the demand notices of the government are not tenable and sustainable.
6. During the period under review the Company’s subsidiary set up at Jebel Ali, Dubai did not undertake any purchase or sale transactions. Consequently, the effect of consolidation in the Company’s books is not significant and therefore consolidated figures have not been given separately.
7. The figures of the previous year have been regrouped/recast to render them comparable with the figures of the current year.
8. The above results after being reviewed by the Audit Committee were approved and taken on record at the meeting of the Board of Directors held on 26th April 2007.