1) CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:
 
                                                     (Rs. in Lacs)
 
 i) Guarantees given by the Company''s 
 bankers on behalf of the Company                            97.09 
 
                                                           (97.15)
 
 ii) Bills discounted with Banks                           2072.23
 
                                                         (1335.78)
 
 iii) Disputed Tax Matters
 
 a) Sales Tax demand disputed in appeal                      39.13
 
                                                           (39.13)
 
 b) Service Tax demand disputed in appeal                    93.98
 
                                                         (1029.68)
 
 c) Excise Duty demand disputed in appeal                    13.77
 
                                                           (13.77)
 
 d) Demand under Drug Price Control Order - 95 
 ( DPCO - 95 ) demand disputed in appeal                    591.34
 
                                                          (591.34)
 
 iv) Claims against the Company not 
 acknowledged as debts:                                     868.83
 
                                                          (868.83)
 
 2) Estimated amount of contracts remaining to be executed on capital
 account not provided for Rs 110.71 Lacs ( Previous year Rs. 23.89 Lacs
 )
 
 3) The disclosure as per Accounting Standard 17 (AS-17) Segment
 Reporting issued by the institute of Chartered Accountants of India:
 
 a) Business Segment:
 
 The Company is engaged primarily in Pharmaceuticals business and there
 are no separate reportable segments as per AS-17
 
 4) The Board of Directors have not recommended any dividend on
 Cumulative Preference Shares amounting to Rs.32.58 lacs, during the
 year. The total liability of dividend on Cumulative Preference Shares
 as on 31st March, 2011 is Rs. 566.48 lacs.
 
 5) The company has unabsorbed depreciation and carry forward of losses
 under Income Tax Laws. Hence deferred tax assets have not been
 recognised as there is no vitual certainty supported by convincing
 evidence that there will be sufficient future taxable inocme against
 which such deffered tax assets can be realised.
 
 6) The Company has made an investment of Rs. 500.61 lacs and has also
 advanced a sum of Rs.4882.62 lacs to Kopran Research Laboratories Ltd
 (KRLL), a wholly owned subsidiary of the Company, for Research and
 Development (R & D) activities. The accumulated losses of KRLL has
 exceeded its paid up capital and reserves.The said subsidiary has been
 awarded numerous patents in India and abroad for its novel Anti-Ulcer
 molecule KNC-6 and other molecule KNC-1206. KRLL has also developed
 enteric coating technology and has also been awarded Indian Patent for
 novel process of synthesis of Rofecoxib and Sildenafil Citrate. KRLL
 has, vide an agreement, agreed to give the Company the right to exploit
 the patents, intellectual properties and all rights appurtenant thereto
 in any manner so as to recover the dues- current and future,
 Considering that the investments are strategic and for long term the
 diminution in value has not been considered necessary by the
 management.
 
 7) The Company has not paid any commission to the Managerial
 Personnel.  Hence, the calculation under section 198/349 read with
 section 309 of the Companies Act, 1956 is not applicable.
 
 Mr Ajit Jain has been appointed as Director and Chief operating officer
 with effect from 1st February, 2010. The remuneration paid to him is in
 excess of the limit under schedule XIII of the Companies Act, 1956 and
 was subject to approval at the Annual General Meeting and also subject
 to approval of the Central Government. The company has received the
 approval from the central Government vide letter dated 29th July, 2011.
 
 8) Interest paid on term loans is net of interest received on Fixed /
 Margin Deposit Gross Rs.13.19 lacs, TDS Rs.1.32 lacs (Previous Year Rs.
 22.86 lacs, TDS Rs. 1.94 lacs). Interest paid on others is net of
 interest received Gross Rs.99.17 lacs, TDS Rs.Nil (Previous year -
 Gross Rs. 52.17, TDS Rs. Nil)
 
 9) The net Exchange Gain of Rs.235.24 lacs (Previous Period Gain of
 Rs.262.95 lacs) is included in the Profit and Loss Accounts.
 
 10) The company has alloted 19,50,000 equity shares of Rs. 10/-each for
 cash at par to a promoter group company on 10th August, 2010, against
 conversion of 19,50,000 shares warrants alloted to the company on 24th
 September, 2009.
 
 11) Disclosure as per Accounting Standard 18 (AS-18) Related Party
 Disclosure issued by the Institute of Chartered Accountants of India
 
 I) Wholly Owned Subsidiary
 
 a) Kopran Research Laboratories Ltd.
 
 b) Kopran (H.K) Ltd.
 
 c) Kopran Lifesciences Ltd. (w.e.f. 20th December, 2010)
 
 II) Associate Enterprises
 
 a) Pharmaceutical Business Group (I) Ltd. (up to 12th January, 2011)
 
 b) Panorma Finvest Pvt. Ltd.
 
 III) Key Management Personnel
 
 Shri Surendra Somani - Executive Vice Chairman 
 
 Shri Ajit Jain -Director and Chief Operating Officer
 
 12) In the opinion of the Board, Current Assets and Loans and Advances
 are approximately of the value stated if realised in the ordinary
 course of business.The provision for all known and determined
 liabilities are adequate and not in excess of the amounts reasonably
 required.
 
 13) Conversion of dividend payable of Rs. 36 lacs for the year ending
 31st March, 2002 to 31st March, 2004 on Preference Shares into Zero
 Coupon Debentures (ZCD) and repayable in 16 quarterly instalments
 commencing from 1st April, 2005 has been approved by Corporate Debt
 Restructuring (CDR) cell and same has been shown as unpaid dividend,
 pending conversion.
 
 14) (a) The Company has taken certain office / factory on operating
 lease basis. Lease payments in respect of such leases recognised in
 profit and loss account Rs. 193.65 Lacs ( Previous year Rs. 148.30 Lacs
 ).
 
 (b) Except for escalation contained in certain lease arrangements
 providing for increase in the lease payment by specified percentage/
 amounts after completion of specified period. Further the lease terms
 do not contain any exceptional / restrictive covenants other than prior
 approval of the leasee before the renewal of lease.
 
 (c) There are no restrictions such as those concerning dividend and
 additional debt other than in some cases where prior approval of lesser
 is required for further leasing. There is no contingent rent payment.
 
 15) Previous year''s figures have been regrouped and recasted wherever
 considered necessary.