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Standalone Financial Statements Annual Report 2014 - 15<br />
NOTES TO FINANCIAL STATEMENTS<br />
(All amounts in Indian Rupees millions, except share data and where otherwise stated)<br />
2.23: RESEARCH AND DEVELOPMENT EXPENSES<br />
Details of research and development expenses (excluding depreciation and amortisation expense) incurred during the year and included under various<br />
heads of expenditure are given below:<br />
PARTICULARS<br />
FOR THE YEAR ENDED<br />
31 MARCH 2015<br />
FOR THE YEAR ENDED<br />
31 MARCH 2014<br />
Employee benefits expense (included in note 2.19) 2,422 2,350<br />
Other expenses (included in note 2.21)<br />
Clinical trial expenses 1,778 1,808<br />
Materials and consumables 2,701 2,089<br />
Power and fuel 134 147<br />
Other research and development expenses 4,195 3,588<br />
11,230 9,982<br />
2.24: EARNINGS PER SHARE (EPS)<br />
PARTICULARS<br />
FOR THE YEAR ENDED<br />
31 MARCH 2015<br />
FOR THE YEAR ENDED<br />
31 MARCH 2014<br />
Earnings <br />
Profit for the year 16,794 19,328<br />
Shares <br />
Number of shares at the beginning of the year 170,108,868 169,836,475<br />
Add: Equity shares issued on exercise of vested stock options 272,306 272,393<br />
Total number of equity shares outstanding at the end of the year 170,381,174 170,108,868<br />
Weighted average number of equity shares outstanding during the year – Basic 170,314,506 170,044,518<br />
Add: Weighted average number of equity shares arising out of outstanding stock options<br />
(net of the stock options forfeited) that have dilutive effect on the EPS<br />
742,463 813,171<br />
Weighted average number of equity shares outstanding during the year – Diluted 171,056,969 170,857,689<br />
Earnings per share of par value `5/- – Basic (`) 98.60 113.67<br />
Earnings per share of par value `5/- – Diluted (`) 98.18 113.13<br />
2.25: CONTINGENT LIABILITIES AND COMMITMENTS<br />
PARTICULARS<br />
AS AT<br />
31 MARCH 2015<br />
AS AT<br />
31 MARCH 2014<br />
(A) Contingent liabilities: <br />
Guarantees: <br />
(a) Issued by the Company on behalf of subsidiaries, associates and joint ventures 10,419 13,836<br />
Claims against the Company not acknowledged as debts in respect of: <br />
(a) Income tax matters, under dispute (refer note ‘k’ below) 1,181 1,264<br />
(b) Excise matters (including service tax), under dispute (refer note ‘i’ below) 402 633<br />
(c) Sales tax matters, under dispute (refer note ‘j’ below) 317 319<br />
(d) DPCO matters<br />
The Company is contesting various demands for payment to the credit of the Drug Prices Equalisation Account under Drugs (Price Control) Order,<br />
1995 for few of its products, including norfloxacin. Based on its best estimate, the Company has made a provision for the potential liability related<br />
to the overcharged amount including the interest thereon and believes that the possibility of any liability that may arise on account of penalty on<br />
this demand is not probable. In the event the Company is unsuccessful in its litigation in the Supreme Court, it will be required to remit the sale<br />
proceeds in excess of the notified selling prices to the Government of India with interest and including penalties, if any, which amounts are not readily<br />
ascertainable.<br />
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