1 Disclosure under Revised Accounting Standard 15 on Employee Benefts:
 
 Consequent to Accounting Standard 15 Employee Benefts (Revised 2005)
 becoming effective, the Company has made the provision for Defned
 Contribution Plan and Defned Beneft Plan.
 
 A Defned Contribution Plan
 
 During the year, the Company has recognized Rs.10,08,726/- (Previous
 Year Rs. 10,91,244/-) towards Defned Contribution Plan Obligation.
 
 B Defned Beneft Plan 
 
 A) Leave Encashment
 
 Liability is computed on the basis of Leave Encashment beneft payable
 to all eligible employees at the rate of daily salary as per current
 accumulation of leave days, as per the Projected Unit Credit Method.
 
 2 Contingent Liabilities                       2011-12         2010-11
 
                                                  In Rs           In Rs
 
 Contingent liabilities not provided for 
 in respect of:
 
 I) Letter of credit in respect of purchases, 
 outstanding at the year-end                    106,047       4,071,198
 
 II) Income tax under dispute                 1,220,952       1,807,387
 
 III) Fringe beneft tax under dispute           201,972         201,972
 
 IV) Disputed Labour Dues                    44,638,168      37,903,835
 
 V) Claim of interest on unsecured Loan 
 from Gujarat Industrial Investment          11,261,277      10,793,277 
 Corporation (GIIC)
 
 VI) Claim made by an ex-employee pending 
 with Valsad Civil Court                              -         464,765 
 [including interest of Rs.Nil 
 (P.Y Rs.1,95,556)]
 
 VII) Claim made by an supplier pending 
 with Vadodra Civil Court                       548,816         465,098 
 [including interest of Rs.4,40,538 
 (P.Y Rs.3,56,820)]
 
 3 Estimated amount of contracts (net of advances) remaining to be
 executed on capital account and not provided for Rs.1,04,829/-
 (Previous year Rs.12,73,533 /-).
 
 4 The outstanding balance as at 31st March, 2012, in respect of
 certain balances of trade receivables, deposits, loans & advances, long
 term borrowings, liability for expenses, trade payables and creditors
 for capital expenditure are subject to confrmation and adjustments
 necessary upon reconciliation if any, consequential impact thereof in
 the fnancial statements is not ascertainable. The Mangement does not
 expect any material variation in the fnancial statements.
 
 5 (a) The Company is a sick industrial Company under the provisions of
 the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA).
 The Rehabilitation Scheme formulated for revival of the Company has
 been sanctioned by the BIFR at the hearing held on 12th January, 2012
 and the BIFR order has been issued to the Company on 1st March, 2012.
 However pending the necessary consent / formalities with statutory
 authorities and stock exchanges as at 31st March, 2012, adjustments
 with regard to effect of the directions as contained in the scheme
 approved by the order of BIFR including the effect of reduction in
 equity share capital and issue of further equity shares have been given
 subsequent to the balance sheet date, except that the Company has
 already accounted during the year, for the relief of interest amounting
 to Rs.1,33,75,163 given by the operating Agency, Union Bank of India on
 account of reduction in interest rate from 1st October, 2008, the
 cutoff date from which the Company is declared as sick unit, to 30th
 September, 2011 (Rs.1,20,43,280 for the period from 1st October, 2008
 to 31st March, 2011 which is shown as an exceptional item and
 Rs.13,31,883 for the period from 1st April, 2011 to 30th September,
 2011 which is credited to fnance cost) and write back of unsecured loan
 of Rs.3,95,10,377 in terms of the approved scheme & consent for waiver
 by promoter Company Yuhan Corporation for repayment of unsecured loan
 of Rs.3,95,10,377 which has been shown as income under the head
 exceptional item.
 
 (b) Other releif and concessions as provided in Rehabilitation Scheme
 sanctioned by the BIFR at the hearing held on 12th January 2012, are as
 under.
 
 (i) Income tax department to consider relief u/s. 41(1) i.e. additions
 not to consider write back of liabilities / no longer considered
 payable, exemption from Minimum Alternate Tax (MAT) till the total loss
 is adjusted, to allow relief u/s.
 
 72 for carry forward of losses beyond 8 years and until the earlier of
 their absorption against taxable income in future years, to consider
 waiver of penalty imposed.
 
 (ii) Securities and Exchange Board of India to grant of exemption from
 opertaions / applicability of regulations 7, 10, 11 and 12 of the SEBI
 (Substantial Acquisition of Shares and Takeover) Regulations 1997.
 
 (iii) Bombay Stock Exchange to allow continued listing of the Company''s
 shares on the BSE post share capital restructuring, to consider
 automatic listing of additional shares.
 
 (iv) Registrar of Companies (ROC) to consider waiver of fee payable to
 ROC, Gujarat in respect of increase in authorized share capital as and
 when contemplated.
 
 (v) The Company may exercise the option of revaluing the land and
 writing off accumulated book losses to that extent with the permission
 of BIFR.
 
 (vi) Promoters / Co-promoters to bring in funds to meet the cost of the
 scheme in the form of unsecured loan to the extent of Rs.3,50,00,000
 irrespective of the provisions of Companies Act, 1956 or any other
 guidelines.
 
 6 The Company has brought forward losses of Rs.27,90,76,856 which has
 resulted in negative net worth of Rs.13,86,43,883 as at 31st March,
 2012. Further, the Company also has a working capital defciency. The
 Company is also a sick Company within the meaning of Section 3 (1) (o)
 of the Sick Industrial Companies (Special Provisions) Act 1985, and in
 accordance with the provisions of section 15 (I) of the said Act. The
 Company has been registered with the Board for Industrial & Financial
 Reconstruction (BIFR). Further the Rehabilitation Scheme has been
 sanctioned by the Board for Industrial and Financial Reconstruction
 (BIFR) in the hearing held 12th January, 2012. The Company has
 initiated efforts including development of new products and has
 ventured into manufacturing of goods on own and on job work basis so as
 to reduce the losses.  Accordingly these accounts have been prepared on
 a going concern basis.
 
 7 The Company is manufacturing Bulk Drugs for its own and on job work
 basis for others. Hence, there is no separate reportable segment as per
 Accounting Standard - 17 (AS-17) Segment Reporting as notifed by
 Companies (Accounting Standards) Rules 2006.
 
 8 In view of carry forward losses of earlier years as per Income Tax,
 no provision for the Income Tax has been made on proft of the current
 year.
 
 9 In the opinion of the Management, Current / Non-current Assets, Long
 term / Short term Loans & Advances are approximately of the value
 stated, if realized, in the ordinary course of business. The provision
 for all known and determined liability is adequate and not in the
 excess of the amount reasonably required.
 
 10 During the year ended 31st March, 2012, the Revised schedule VI
 notifed under The Companies Act 1956, has become applicable to the
 Company, for presentation and preparation of its fnancial statement.
 The adoption of revised schedule VI does not impact recognition and
 measurement principles followed for preparation of fnancial statements.
 However, it has signifcant impacts on presentation and disclosure made
 in the fnancial statements. The Company has also reclassifed the
 previous year fgure in accordance with the requirements applicable in
 the current year.