a) Basis of preparation
 
 The financial statements of Dr. Reddy''s Laboratories Limited (''DRL
 or the Company) have been prepared and presented in accordance with
 Indian Generally Accepted Accounting Principles (GAAP) under the
 historical cost convention on the accrual basis. GAAP comprises
 accounting standards notified by the Central Government of India under
 Section 211 (3C) of the Companies Act, 1956, other pronouncements of
 Institute of Chartered Accountants of India, the provisions of
 Companies Act, 1956 and guidelines issued by Securities and Exchange
 Board of India. The financial statements are rounded off to the nearest
 million.
 
 b) Use of estimates
 
 The preparation of the financial statements in conformity with GAAP
 requires management to make estimates and assumptions that affect the
 reported amounts of assets and liabilities and disclosure of contingent
 liabilities on the date of the financial statements and reported
 amounts of revenues and expenses for the year.  Actual results could
 differ from these estimates. Estimates and underlying assumptions are
 reviewed on an ongoing basis. Any revision to accounting estimates is
 recognised prospectively in the current and future periods.
 
 c) fixed assets and depreciation
 
 Fixed assets are carried at the cost of acquisition or construction
 less accumulated depreciation. The cost of fixed assets includes
 non-refundable taxes, duties, freight and other incidental expenses
 related to the acquisition and installation of the respective assets.
 Borrowing costs directly attributable to acquisition or construction of
 those fixed assets which necessarily take a substantial period of time
 to get ready for their intended use are capitalised.
 
 Depreciation on fixed assets is provided using the straight-line method
 at the rates specified in Schedule XIV to the Companies Act, 1956 or
 based on the useful life of the assets as estimated by Management,
 whichever is higher. Depreciation is calculated on a pro-rata basis
 from the date of installation till the date the assets are sold or
 disposed. Individual assets costing less than Rs 5,000/- are depreciated
 in full in the year of acquisition. Assets acquired on finance leases
 are depreciated over the period of the lease agreement or the useful
 life whichever is shorter.
 
 d) Intangible assets and amortisation
 
 Intangible assets are recorded at the consideration paid for
 acquisition. Intangible assets are amortised over their estimated
 useful lives on a straight-line basis, commencing from the date the
 asset is available to the Company for its use. The management estimates
 the useful lives for the various intangible assets as follows:
 
 e) Investments
 
 Non-current investments are carried at cost less any
 other-than-temporary diminution in value, determined separately for
 each individual investment. The reduction in the carrying amount is
 reversed when there is a rise in the value of the investment or if the
 reasons for the reduction no longer exist.
 
 Current investments are carried at the lower of cost and fair value.
 The comparison of cost and fair value is done separately in respect of
 each category of investment.
 
 f) Inventories
 
 Inventories are valued at the lower of cost and net realisable value.
 Cost of inventories comprises all cost of purchase, cost of conversion
 and other costs incurred in bringing the inventories to their present
 location and condition.
 
 Effective as of 1 April 2011, the Company has changed its policy on
 valuation of inventory from the first-in first-out method (FIFO) to the
 weighted average cost method (WAC). Under the prior policy, the cost of
 all categories of inventories, except stores and spares, had been based
 on the first-in first-out method. Stores and spares consists of packing
 materials, engineering spares (such as machinery spare parts) and
 consumables (such as lubricants, cotton waste and oils), which are used
 in operating machines or consumed as indirect materials in the
 manufacturing process, had been valued at cost based on a weighted
 average method. Effective as of 1 April 2011, the cost of all
 categories of inventory is based on a weighted average cost method.
 Using the weighted average method will produce more accurate,
 reasonable and relevant information on the amounts of inventory
 reported in the balance sheet and, in turn, more accurate material
 consumption reported in the statement of profit and loss. The effect of
 this change in the methodology of valuation of inventory is immaterial
 and, accordingly, no further disclosures have been made in these
 financial statements.
 
 g) Research and development
 
 Expenditures on research activities undertaken with the prospect of
 gaining new scientific or technical knowledge and understanding are
 recognized as expense in the statement of profit and loss when
 incurred.
 
 Development activities involve a plan or design for the production of
 new or substantially improved products and processes. Development
 expenditures are capitalized only if:
 
 - development costs can be measured reliably,
 
 - the product or process is technically and commercially feasible,
 
 - future economic benefits are probable and ascertainable, and
 
 - the Company intends to and has sufficient resources to complete
 development and has the ability to use or sell the asset.
 
 Expenditure incurred on fixed assets used for research and development
 is capitalised and depreciated in accordance with the depreciation
 policy of the Company.
 
 h) Employee benefits Defined contribution plan
 
 A defined contribution plan is a post-employment benefit plan under
 which an entity pays fixed contributions into a separate entity and
 will have no legal or constructive obligation to pay further amounts.
 Obligations for contributions to recognized provident funds and
 approved superannuation schemes which are defined contribution plans
 are recognized as an employee benefit expense in the statement of
 profit and loss as and when the services are received from the
 employees.
 
 Defined benefit plans
 
 A defined benefit plan is a post-employment benefit plan other than a
 defined contribution plan. The Company''s net obligation in respect of
 an approved gratuity plan, which is a defined benefit plan, and certain
 other defined benefit plans is calculated separately for each plan by
 estimating the amount of future benefit that employees have earned in
 return for their service in the current and prior periods; that benefit
 is discounted to determine its present value. Any unrecognized past
 service costs and the fair value of any plan assets are deducted. The
 discount rate is the yield at the reporting date on risk free
 government bonds that have maturity dates approximating the terms of
 the Company''s obligations and that are denominated in the same currency
 in which the benefits are expected to be paid. The calculation is
 performed annually by a qualified actuary using the projected unit
 credit method.
 
 Contributions payable to an approved gratuity fund determined by an
 independent actuary at the balance sheet date are charged to the
 statement of profit and loss.  All actuarial gains and losses arising
 during the year are recognized in the statement of profit and loss.
 
 Provision for compensated absences is made on the basis of actuarial
 valuation at the balance sheet date.
 
 Employee stock option schemes
 
 In accordance with the Securities and Exchange Board of India
 guidelines, the excess of the market price of shares, at the date of
 grant of options under the Employee stock option schemes, over the
 exercise price is treated as employee compensation and amortised over
 the vesting period.
 
 i) Foreign currency transactions and balances
 
 Foreign currency transactions are recorded using the exchange rates
 prevailing on the dates of the respective transactions. Exchange
 differences arising on foreign currency transactions settled during the
 year are recognised in the statement of profit and loss.
 
 Monetary assets and liabilities denominated in foreign currencies as at
 the balance sheet date are translated using the foreign exchange rates
 as at the balance sheet date. The resultant exchange differences are
 recognised in the statement of profit and loss. Non-monetary assets and
 liabilities are not translated.
 
 Exchange differences arising on a monetary item that, in substance,
 forms part of an enterprise''s net investment in a non-integral foreign
 operation are accumulated in a foreign currency translation reserve in
 the enterprise''s financial statements. Such exchange differences are
 recognized in the statement of profit and loss in the event of disposal
 of the net investment.
 
 j) Derivative instruments and hedge accounting
 
 The Company uses foreign exchange forward contracts and option
 contracts (derivatives) to mitigate its risk of changes in foreign
 currency exchange rates and does not use them for trading or
 speculative purposes.
 
 The premium or discount on foreign exchange forward contracts is
 amortized as income or expense over the life of the contract. The
 exchange difference is calculated and recorded in accordance with AS-11
 (revised). The exchange difference on such a forward exchange contract
 is calculated as the difference of the foreign currency amount of the
 contract translated at the exchange rate at the reporting date, or the
 settlement date where the transaction is settled during the reporting
 period and the corresponding foreign currency amount translated at the
 later of the date of inception of the forward exchange contract and the
 last reporting date. Such exchange differences are recognized in the
 statement of profit and loss in the reporting period in which the
 exchange rates change. The changes in the fair value of foreign
 currency option contracts are recognised in the statement of profit and
 loss as they arise. Fair value of such option contracts is determined
 based on the appropriate valuation techniques considering the terms of
 the contract.
 
 Pursuant to ICAI Announcement Accounting for Derivatives on the
 early adoption of Accounting Standard AS-30 Financial Instruments:
 Recognition and Measurement, the Company has adopted the Standard,
 to the extent that the adoption does not conflict with existing
 mandatory accounting standards and other authoritative pronouncements,
 Company law and other regulatory requirements.
 
 Cashflow hedges
 
 The Company classifies its option and forward contracts that hedge
 highly probable forecasted transactions as cash flow hedges and
 measures them at fair value.  The effective portion of such cash flow
 hedges is recorded as part of reserves and surplus within the Company''s
 hedging reserve, and re-classified in the statement of profit and
 loss as revenue in the period corresponding to the occurrence of the
 forecasted transactions. The ineffective portion is immediately
 recorded in the statement of profit and loss.
 
 The Company also designates certain non-derivative financial
 liabilities, such as foreign currency borrowings from banks, as hedging
 instruments for the hedge of foreign currency risk associated with
 highly probable forecasted transactions and, accordingly, applies cash
 flow hedge accounting for such relationships.  Re-measurement gain /
 loss on such non-derivative financial liabilities is recorded as a part
 of reserves and surplus within the Company''s hedging reserve, and
 re-classified in the statement of profit and loss as revenue in the
 period corresponding to the occurrence of the forecasted transactions.
 
 If the hedging instrument no longer meets the criteria for hedge
 accounting, gets expired or is sold, terminated or exercised before the
 occurrence of the forecasted transaction, the hedge accounting on such
 transaction is discontinued prospectively. The cumulative gain or loss
 previously recognized in hedging reserve continues to remain there
 until the forecasted transaction occurs. If the forecasted transaction
 is no longer expected to occur, the balance in hedging reserve is
 recognized immediately in the statement of profit and loss.
 
 Fair value hedges
 
 The Company uses derivative financial instruments to hedge its exposure
 to changes in the fair value of firm commitment contracts and measures
 them at fair value.  Any amount representing changes in the fair value
 of such derivative financial instruments is recorded in the statement
 of profit and loss. The corresponding gain / loss representing the
 changes in the fair value of the hedged item attributable to hedged
 risk is also recognized in the statement of profit and loss.
 
 k) Revenue recognition Sale of goods
 
 Revenue from sale of goods is recognised when significant risks and
 rewards in respect of ownership of products are transferred to
 customers. Revenue from domestic sales of generic products is
 recognized upon delivery of products to stockists by clearing and
 forwarding agents of the Company. Revenue from domestic sales of active
 pharmaceutical ingredients and intermediates is recognized on delivery
 of products to customers, from the factories of the Company. Revenue
 from export sales is recognized when the significant risks and rewards
 of ownership of products are transferred to the customers, which is
 based upon the terms of the applicable contract.
 
 Revenue from product sales is stated exclusive of returns, sales tax
 and applicable trade discounts and allowances.
 
 Service Income
 
 Service income is recognised as per the terms of contracts with
 customers when the related services are performed, or the agreed
 milestones are achieved.
 
 License fee
 
 The Company enters into certain dossier sales, licensing and supply
 arrangements with certain third parties. These arrangements include
 certain performance obligations by the Company. Revenue from such
 arrangements is recognized in the period in which the Company completes
 all its performance obligations.
 
 Dividend and interest income
 
 Dividend income is recognised when the unconditional right to receive
 the income is established. Income from interest on deposits, loans and
 interest bearing securities is recognised on the time proportionate
 method.
 
 Export entitlements
 
 Export entitlements are recognised as reduction from material
 consumption when the right to receive credit as per the terms of the
 scheme is established in respect of the exports made and where there is
 no significant uncertainty regarding the ultimate collection of the
 relevant export proceeds.
 
 l) Income tax expense
 
 Income tax expense comprises current tax and deferred tax charge or
 credit.
 
 Current tax
 
 The current charge for income taxes is calculated in accordance with
 the relevant tax regulations applicable to the Company.
 
 Deferred tax
 
 Deferred tax charge or credit reflects the tax effects of timing
 differences between accounting income and taxable income for the
 period. The deferred tax charge or credit and the corresponding
 deferred tax liabilities or assets are recognised using the tax rates
 that have been enacted or substantially enacted by the balance sheet
 date. Deferred tax assets are recognised only to the extent there is
 reasonable certainty that the assets can be realised in future;
 however, where there is unabsorbed depreciation or carry forward of
 losses, deferred tax assets are recognised only if there is a virtual
 certainty of realisation of such assets. Deferred tax assets are
 reviewed at each balance sheet date and is written-down or written-up
 to reflect the amount that is reasonably / virtually certain (as the
 case may be) to be realised.  The break-up of the major components of
 the deferred tax assets and liabilities as at balance sheet date has
 been arrived at after setting off deferred tax assets and liabilities
 where the Company has a legally enforceable right to set-off assets
 against liabilities and where such assets and liabilities relate to
 taxes on income levied by the same governing taxation laws.
 
 m) Earnings per share
 
 The basic earnings per share (EPS) is computed by dividing the net
 profit after tax for the year by the weighted average number of equity
 shares outstanding during the year. For the purpose of calculating
 diluted earnings per share, net profit after tax for the year and the
 weighted average number of shares outstanding during the year are
 adjusted for the effects of all dilutive potential equity shares. The
 dilutive potential equity shares are deemed converted as of the
 beginning of the period, unless they have been issued at a later date.
 The diluted potential equity shares have been adjusted for the proceeds
 receivable had the shares been actually issued at fair value (i.e. the
 average market value of the outstanding shares).
 
 n) provisions and contingent liabilities
 
 The Company creates a provision when there is a present obligation as a
 result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of the obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources. Where there is possible obligation or
 a present obligation in respect of which the likelihood of outflow of
 resources is remote, no provision or disclosure is made.
 
 o) Impairment of assets
 
 The Company assesses at each balance sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset or the recoverable amount of the
 cash generating unit to which the asset belongs is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount. The reduction is treated as an impairment loss and is
 recognised in the statement of profit and loss. If at the balance sheet
 date there is an indication that if a previously assessed impairment
 loss no longer exists, the recoverable amount is reassessed and the
 asset is reflected at the recoverable amount subject to a maximum of
 amortised historical cost.
 
 p) Leases
 
 The lease arrangement is classified as either a finance lease or an
 operating lease, at the inception of the lease, based on the substance
 of the lease arrangement.  Finance leases
 
 Finance leases
 
 A finance lease is recognized as an asset and a liability at the
 commencement of the lease, at the lower of the fair value of the asset
 and the present value of the minimum lease payments. Initial direct
 costs, if any, are also capitalized and, subsequent to initial
 recognition, the asset is accounted for in accordance with the
 accounting policy applicable to that asset. Minimum lease payments made
 under finance leases are apportioned between the finance expense and
 the reduction of the outstanding liability. The finance expense is
 allocated to each period during the lease term so as to produce a
 constant periodic rate of interest on the remaining balance of the
 liability.
 
 Operating leases
 
 Other leases are operating leases, and the leased assets are not
 recognized on the Company''s balance sheet. Payments made under
 operating leases are recognized in statement of profit and loss on a
 straight-line basis over the term of the lease.