1.  Nature of Operations
 
 Fern Care Pharma Limited (Fern or the Company) is engaged in the
 business of Cosmetics along with Pharmaceutical and Specialty
 Chemicals.
 
 2 Segment Information
 
 I.  Business Segments
 
 The Company has considered Business Segments as the primary segment for
 disclosure. The Company operates in four Business Segments.
 
 a) Consumer Products: Consumer Products include fairness bleaches, hair
 removing creams, liquid soaps and other cosmetic products.
 
 b) Pharma Division: Pharma includes innovative and aesthetically
 designed dermatological range of products, cosmeceuticals and health
 products.
 
 c) Speciality Chemical Division: Speciality chemicals comprise of
 import-substitute drugs and drug intermediates.  (Discontinuing
 Operation - Refer Note 8 in Schedule 21)
 
 d) Others comprise of the third party processing and export oriented
 unit.  The above segments have been identified considering:
 
 a) the nature of products and services;
 
 b) the differing risks and returns;
 
 c) the organization structure; and
 
 d) the internal financial reporting systems.
 
 II.  Geographical Segments
 
 Secondary segmental reporting is based on the geographical location of
 customers. The geographical segments have been disclosed based on
 revenues within India (sales to customers in India ) and revenues
 outside India ( sales to customer located outside India.)
 
 3 Related Parties
 
 Related party disclosures:
 
 a) Name of related parties where control exists irrespective of whether
 transactions have occurred or not
 
 Subsidiary Company Jaquline Inc
 
 b) Name of other related parties with whom transactions have taken
 place during the year.
 
 Key Management Personnel
 Managing Director (CMD)
 Joint Managing Director (JMD)
 Company Secretary
 Company Secretary
 CEO - Works
 CEO - Chemical
 CEO - Pharmaceuticals
 CEO - IT
 CEO - Marketing
 
 Mr. S. H. Pophale
 Mrs. S. A. Ramnathkar
 Mr. Madan Vaishnawa (From 01/09/2007)
 Mr. S H Bhat (Up to 31/08/2007)
 Mr. H. V. Kolte
 Mr. A. L. Chaudhari
 Mr. D. Janardhanan
 Mr. P. M. Sarma
 Mr. Cageton Almeida
 
 Enterprises owned or significantly influenced by key management
 personnel or their relatives
 
 Aqua-In-Process (Aqua)
 Pentagon Manufacturing & Marketing Ltd. (Pentagon)
 Ivory Soap Works Ltd. (Ivory Soap)
 Mayfair Soaps Ltd. (Mayfair)
 
 4 Impairment of assets
 
 The impairment losses represent the write-down of certain fixed assets
 to recoverable amount due to the closure of EOU operations at Nashik
 Factory. The recoverable amount is the best estimate by the management.
 The carrying amount of fixed assets which will be disposed off as part
 of the closure has been transferred to Fixed Assets held for sale.
 
 5 The existing promoters of the Company have entered into a Share
 Purchase Agreement dated November 21,2008 with Dabur India Limited to
 sell their 72.15% holding in the Company. As per the said Share
 Purchase agreement, the existing promoters have agreed to undertake the
 following other transactions as a condition precedent to or
 simultaneous on completion of the above transactions, as approved by
 the Shareholders:
 
 a Disposal of the Speciality Chemical Division for a consideration of
 Rs. 108,450,084 to Mr. Sunil H Pophale and / or his nominees.
 
 b Sale or disposal of Flat No. 12 in the building known as Maison
 Belvedere for a consideration of Rs. 30,000,000 to Mr. Sunil H
 
 Pophale and / or his nominees.  c Sale of 25% of the ordinary voting
 shares held by wholly owned Subsidiary, Jaquline Inc in Fern Mitchell
 Group, USA, LLC for
 
 USD 1,000,000 to Mrs. Sunita A. Ramnathkar and / or her nominees.
 
 No accountingi effect has been made for the above transactions, since
 the aforesaid transactions are yet to be completed as on the date of
 the Balance Sheet.
 
 Further as per the Share Purchase Agreement, interest accrued on the
 Escrow amounts kept with an Escrow Agent will belong to the Company.
 The said interest will be recognized on completion of the aforesaid
 transactions.
 
 6 Capital Commitments
 
 Estimated amount Of contracts remaining to be executed on capital
 account and not provided for
 
 7.  Derivative Instruments and Un-hedged Foreign Currency Expsoure a
 Particulars of Derivatives
 
 Outstanding as at Balance Sheet date
 
 JPY Basis Swap with Embedded Options
 
 Purpose
 
 The Company has entered into a structured derivative contract to hedge
 its foreign currency risk associated with the repayment of External
 Commercial Borrowing (ECB). In terms of the ICAI notification dated
 29 March 2008, the Company has marked to market its outstanding
 derivative contract as at 31 March 2009 and has accordingly recognised
 a loss of Rs Nil (Previous year Rs.1,560,000) by debiting exchange
 loss.  Further, the Company has recognised a loss of Rs 34,626,917
 (Previous year: Rs. 27,238,109) in respect of the exchange rate
 translation of its ECB as at 31 March 2009.
 
 8 Excise duty on sales amounting to Rs. 10,527,275 (Previous Year: Rs.
 8,153,191) has been reduced from sales in Profit & Loss account and
 excise duty on increase / decrease in stock amounting to Rs. 36,158
 (Previous Year: (Rs. 289,260)) has been considered as (income) /
 expense in Schedule 19 of financial statements.
 
 9 Previous year comparatives
 
 Previous years figures have been regrouped, where necessary to conform
 to the current years classification.
 
 The figures of previous year were audited by a firm of Chartered
 accountants other than S. V. GHAT ALIA & ASSOCIATES.