1. Sundry Debtors, Creditors and Loans & Advances:-
 
 In the absence of Balance confirmation certificates from Debtors,
 Creditors and the other parties, the balance as per ledger are taken as
 correct.
 
 2. Sales Tax Liability:-
 
 As informed, the sales tax assessment of Bharat Chem. Laboratories,
 Kalol, a division of the company, for the year 1991-1992 is not yet
 finalized and the sales tax liability for the same is unascertainable.
 
 3. Preliminary Expenditure & Equity Share Issue Expenses:-
 
 In earlier years, preliminary expenditure are written off equally over
 a period of 10 years. During the year company has not been written off
 any amount of preliminary expenditure & equity share issue expenses.
 
 4. Directors Remuneration:-
 
 During the previous year 2001-2002 Rs. 185000/- is paid to Director as
 Directors Remuneration.
 
 5. Payment to Auditors:-
 
 During the P. Y.   2001 - 2002
 
 Rs. 20000/-        for Audit Fees.
 
 Rs. 15000/-        for Tax Audit & Taxation services.
 
 Rs. 5000/-         for other work (Certificates etc.)
 
 Rs. 2000/-         for service tax
 
 6. The working capital facilities from banks are secured by first
 charged on the stock, stores and book debts and by second charge over
 the immovable and movable properties of the company, both present and
 future.
 
 7. Term loans are secured by first mortgage on immovable and movable
 properties of company including movable machinerys, spares, tools and
 accessories and second charge of all the remaining assets subject to
 prior charge created or to be created in favour of the bank for working
 capital facilities.
 
 8. Provision for interest on Banks loan is not made because same is
 not ascertainable due to N. P. A. and provision for interest on
 unsecured loan is also not made.
 
 9. Earnings Per Share                          31.03.2002   31.03.2001
 
 No. of equity shares of Rs. 10/- each              3770400      3770400
 
 Net profit after tax available for
 equity shareholders (Rs.)                       (-)1298294   (-)2563673
 
 Basic and Diluted Earnings Per Share (Rs.)         (-)0.34      (-)0.68
 
 10. The break up of net deferred tax asset as at 31st March, 2002 is
 as under:
 
                                             Deferred       Deferred
                                            Tax asset  tax liability
 
 Difference between book depreciation
 and depreciation
 under the Income-tax Act, 1961                               224889
 
 Others                                             -          21481
 
 Total Rs.                                     224889          21481
 
 Net Deferred Tax Asset                                       203408
 
 11.  Related Party Disclosures
 
 a)  List of Related Parties:-
 
 Dr. Dahyabhai J. Patel                    Chairman & Managing Director
 
 Shri Bharat R. Desai                      Managing Director
 
 Shri Jagdishbhai H. Shah                  Director
 
 Shri Hasmukhbhai R. Shah                  Director
 
 Shri Hasmukhbhai P. Patel                 Director
 
 Shri Manohar U. Kundnani                  Director
 
 Shri Vipul Popatlal Cheda                 Director
 
 Shri Shantilal C. Bhayani                 Director
 
 Shri Parvinbhai C. Joshi                  Director
 
 b) Transactions with related parties:-
 
 Remuneration to Managing Director Shri Bharat R. Desai Rs. 185000.00