NOTES :

(1) The above results were reviewed by the Audit Committee and approved by the Board of Directors, in their respective meetings held on 5 June 2003. There is no qualification in the Auditors Report on this statement of financial results.

(2) The figures for the comparative periods have been regrouped to render them comparable with the figures for the current period.

(3) This statement of financial results has been prepared by applying the same accounting policies as were applied in the annual financial statements for the previous year.

(4a) The Company operates in a solitary business segment viz. pharmaceuticals, comprising mainly manufacture of branded formulations. A further breakdown of pharmaceutical sales is given below:

* includes inter-unit transfer for captive consumption, current quarter Rs. 473 lacs (comparative quarter Rs.373 lacs), current nine months Rs 667 lacs & current year Rs.1140 lacs (Previous year Rs.930 lacs).

(4b) Domestic formulations sales in the current quarter were affected due to postponement of purchases by the trade channel on account of uncertainties arising out of implementation of Value Added Tax in lieu of sales tax by the State Governments.

(5a) Sales include excise duty recovered, current quarter Rs. 842 lacs (comparative quarter Rs.894 lacs), current nine months Rs.3221 lacs & current year Rs.4063 lacs (comparative year Rs 3997 lacs) and sales tax recovered, current quarter Rs 541 lacs (comparative quarter Rs. 534 lacs), current nine months Rs.2065 lacs & current year Rs.2606 lacs (comparative year Rs 2385 lacs).

(5b) Sales & Income from Operations for the current nine months and year include Rs.241 lacs (current quarter & comparative quarter/year nil) income on account of Option Fees received from Novartis Pharma AG, Switzerland in terms of Research and Option Agreement between the Company and Novartis Pharma AG for Company's AGE Breaker compound

(6a) The net deferred tax adjustment for the previous year is credit of Rs.602 lacs and includes credit of Rs.654 lacs pertaining to write-off of Deferred Revenue Expenditure (included in Exceptional Items).
b For the previous year provision for current tax includes Rs.43 lacs pertaining to income tax on Exceptional Items.

(7a) The Company made further investments during the quarter amounting to Rs 233 lacs in equity shares of Torrent Do Brasil Ltda. (total investments made in current year Rs.1309 lacs), its wholly owned subsidiary in Brazil, and no further investments in equity share of Torrent Pharma GmbH during the quarter (total investments made in current year Rs.75 lacs), its wholly owned subsidiary in Germany.

(8a) The Board of Directors in their meeting of even date has proposed an equity dividend of Rs. 8.00 (previous year Rs.8.00) per equity share of Rs.10 each fully paid up. The aggregate amount of equity dividend proposed to be distributed is Rs. 1910 lacs (previous year Rs. 1693 lacs) including tax on distributed profits of Rs. 217 lacs.

(9) During the current year the Company has repaid Rs.1825 lacs of long term secured borrowing.

Notes to Consolidated Results :

(10) The consolidated financial results include the audited financial results for the following subsidiary companies:

• Zao Torrent Pharma, Russia
• Torrent Do Brasil Ltda., Brazil
• Torrent Pharma GmbH., Germany
• TPL Finance Ltd., India

(11) Torrent Pharma GmbH, a wholly owned subsidiary (WOS) was incorporated on 14-Oct-02 and accordingly accounts of that subsidiary prepared for the period of 14-Oct-02 to 31-Mar-03 have been consolidated.

(12) The consolidated financial results have been prepared by applying the same accounting policies as were applied in the consolidated financial statements for the previous year.