GlaxoSmithKline Consumer Healthcare

As at          At at
                                            December 31,  December 31,
                                              2008           2007
                                           (Rs. Lacs)     (Rs. Lacs)
 
 1. Estimated amount of Contracts 
    remaining to be executed on Capital 
    account (net of Capital advances) 
    and not provided for                   10,47.35        7,03.40
 
 2. Raw Materials consumed as shown under Notes 7 and 8 (a) above
 includes Rs. 4,70.78 Lacs (Previous Year Rs. 4,51.23 Lacs) being the
 cost of materials consumed on samples used for promotional purposes
 included under Advertising and Promotion expenses (Refer Schedule 14),
 Rs. 1,41.81 Lacs (Previous Year Rs. 1,23.58 Lacs) being the cost of
 stock breakages recoverable from Insurance company and provision for
 stock obsolescence Rs. 46.68 Lacs (Previous Year Rs. Nil).
 
 3. The Companys Nutritional business is organized and focused in
 India as a single business segment. Accordingly, Segment information is
 not required to be disclosed pursuant to Accounting Standard 17,
 Segment Reporting.
 
 4.  As at December 31, 2008, the Company has reviewed the future
 earnings of all its cash generating units in accordance with the
 Accounting Standard 28 Impairment of Assets. As the carrying amount
 of assets does not exceed the future recoverable amount, consequently,
 no adjustment to the carrying amount of assets is considered necessary
 by the management.
 
 5.  As part of the restructuring process, the Company has during the
 year made certain exgratia payments to its employees as per the VRS
 scheme duly approved by the Board of Directors aggregating Rs. 2,63.72
 Lacs (Previous Year Rs. 2,79.44 Lacs) included under Employees Cost
 (Refer Schedule 13).
 
 6.  The Company is in the process of compiling the information
 required to be disclosed under the Micro, Small and Medium Enterprises
 Development Act, 2006. The management does not envisage any material
 impact on the financials in this regard, which has been relied upon by
 the auditors.
 
 7.  (a) The Company has initiated a long term incentive plan to
 maintain its competitiveness in attracting and retaining Senior Grade
 Managers. In terms of this plan, the eligible employees will receive
 cash equivalent to the market price of the shares of GSK Plc. at the
 end of the three years restricted period provided eligible employees
 are in continuous employment with the Company during that time.
 Accordingly, a sum of Rs. 1,62.69 Lacs (Previous Year Rs. 1,12.41 Lacs)
 has been accounted in these financial statements on a prorata basis as
 Salaries, Wages, Bonus under Employees Cost (Refer Schedule 13).
 
 (b) Release of accruals in the previous year included a Prior Period
 adjustment aggregating Rs. 100.80 Lacs (net) pertaining to the long
 term incentive scheme of 2005.
 
 8.  The Company has unpaid disputed Excise Duty, Sales Tax and Income
 Tax demands outstanding at the year end amounting to Rs. 51,56.04 Lacs,
 Rs. 3,94.62 Lacs and Rs. 6,87.37 Lacs respectively against which
 adequate liability / provisions, have been provided / made in these
 accounts, wherever considered necessary by management.
 
 9.  In accordance with the requirements of Accounting Standard (AS) -
 19 Leases, the Company has entered into two non- cancellable
 operating leases in respect of office premises. The terms of the said
 lease include terms for the renewal, increase in rents in future
 periods for premises and terms of cancellation. The total lease
 payments recognized in the statement of Profit and Loss Account for the
 period amounted to Rs. 2,29.06 Lacs (Previous Year Rs. Nil). Total of
 future Minimum Lease Payment under non-cancellable leases in case of
 the premise on lease:
 
 Not later than 1 year Rs. 3,82.27 Lacs
 
 Later than 1 and not later than 5 years Rs. 11,86.75 Lacs
 
 Later Than five years Rs. Nil
 
 10. Previous Years figures have been regrouped, wherever necessary, to
 conform to the current years classification.