There is in the rules or definitions (sutras) of Panini a remarkably subtle and penetrating account of Sanskrit grammar. The construction of sentence… - Panini

A treatise called Astadhyayi (or Astaka) is Panini's major work. It consists of eight chapters, each subdivided into quarter chapters. In this work Panini distinguishes between the language of sacred texts and the usual language of communication. Panini gives formal production rules and definitions to describe Sanskrit grammar. Starting with about 1700 basic elements like nouns, verbs, vowels, consonants he put them into classes. The construction of sentences, compound nouns etc., is explained as ordered rules operating on underlying structures in a manner similar to modern theory. In many ways Panini's constructions are similar to the way that a mathematical function is defined today.

The word `Sanskrit' means “prepared, pure, refined or prefect”. It was not for nothing that it was called the `devavani' (language of the Gods). It has an outstanding place in our culture and indeed was recognized as a language of rare sublimity by the whole world. Sanskrit was the language of our philosophers, our scientists, our mathematicians, our poets and playwrights, our grammarians, our jurists, etc. In grammar, Panini and Patanjali (authors of Ashtadhyayi and the Mahabhashya) have no equals in the world; in astronomy and mathematics the works of Aryabhata, Brahmagupta and Bhaskara opened up new frontiers for mankind, as did the works of Charaka and Sushruta in medicine.

We pass at once into the magnificent edifice which bears the name of Panini as its architect and which justly commands the wonder and admiration of everyone who enters, and which, by the very fact of its sufficing for all the phenomenon which language presents, bespeaks at once the marvelous ingenuity of its inventor and his profound penetration of the entire material of the language.