1) SHARE CAPITAL
 
 a) Terms/Rights attached to equity shares
 
 The Company has only one class of equity shares having a par value of
 Rs. 10/- per share. Each holder of equity shares is entitled to one
 vote per share. The Company declares and pays dividends in Indian
 rupees.
 
 In the event of liquidation of the Company, the holders of equity
 shares will be entitled to receive remaining assets of the company,
 after distribution of all preferential amounts. The distribution will
 be in the proportion to the number of equity shares held by the
 shareholders.
 
 b) Terms of redemption of preference shares
 
 55,80,000 10% Non Convertible Non Cumulative Redeemable Preference
 Shares of Rs. 10 each are redeemable at par on 15th March, 2025 or at
 any time after one year from 31st March, 2012 at the option of the
 company.
 
 10,00,000 10% Non Convertible Non Cumulative Redeemable Preference
 Shares of Rs. 10 each are redeemable at par on 28th June, 2019 or at
 any time after one year from 31st March, 2012 at the option of the
 company.
 
 20,00,000 10% Non Convertible Non Cumulative Redeemable Preference
 Shares of Rs. 10 each are redeemable at par on 22nd June, 2019 or at
 any time after one year from 31st March, 2012 at the option of the
 company.
 
 c) Shares held by holding/ultimate holding company and/or their
 subsidiaries/associates
 
 None of the shares of the Company are held by the Subsidiaries,
 Associates or Joint Ventures of the Company.
 
 2) LONG-TERM BORROWINGS
 
 (a) Term loan carries interest base rate  5.75% p.a. and is repayable
 in 10 equal quarterly installments of Rs. 50 lacs from April, 2012. The
 loan is secured by first mortgage charge on the company''s entire fixed
 assets on pari-passu basis with other working capital consortium banks
 and second charge on current assets of the company on pari-passu basis.
 
 (b) WCTL carried interest base Rate   4.80% p.a. to 5.75% p.a. during
 the year 2011 -12 and is repayable in 41 equal monthly installments of
 Rs. 41 lacs from April, 2010. The loan is secured by a pari-passu first
 charge by way of mortgage on all the immovable properties and by way of
 hypothecation on all the movable fixed assets of the Company both
 present and future and Second Charge on current assets of the company
 and guaranteed by three Directors/Promoters jointly and severally also
 by a corporate guarantee of Kopran Research Laboratories Ltd.
 (subsidiary company).
 
 (c) Vehicle Finance loan carries interest @ 12.40 % p.a. and is
 repayable in 35 equal monthly installments of Rs. 15,892 (Including
 Interest) from April 2011. The loans is secured by hypothecation of
 Vehicles.
 
 3) SHORT-TERM BORROWINGS
 
 * Cash credit/Packing credit facilities availed from banks are secured
 by hypothecation of inventories and book debts (present and future)
 also second charge by way of mortgage on all immoveable properties and
 by way of hypothecation on all the moveable fixed assets of the company
 both present and future and guaranteed by director/promoter jointly and
 severally. The said facility is repayable on demand.
 
 4) TRADE PAYABLES
 
 The company has not received information from vendors regarding their
 status under the Micro, Small and Medium Enterprises Development Act,
 2006 (the Act), hence disclosures required to be made under the Act
 has not be given.
 
 5) CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF
 
                                      As on 31/03/12  As on 31/03/11
                                                Rs.            Rs.
 
 i)    Guarantees given by the 
       Company''s bankers on 
       behalf of the Company               5,730,630       9,709,038
 
 ii)   Bills discounted with Banks
                                         337,849,826     207,222,858
 iii)  Disputed Tax Matters
 
 a)    Sales Tax demand disputed 
       in appeal                                   -       3,912,977
 
 b)    Service Tax demand disputed 
       in appeal                           3,295,000       9,398,218
 
 c)    Excise Duty demand disputed 
       in appeal                           3,781,596       1,377,189
 
 d)    Demand under Drug Price Control 
       Order - 95 ( DPCO - 95 )
       demand disputed in appeal          59,134,474      59,134,474
 
 1v)   Claims against the Company not              -      86,883,219 
       acknowledged as debts:
 
 iv) Claims against the Company not acknowledged as debts: - 86,883,219
 
 6) Estimated amount of contracts remaining to be executed on capital
 account not provided for Rs. 1,49,24,075/- (Previous year
 Rs. 1,10,70,744/-)
 
 7) 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
 
 8) 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 virtual certainty supported by convincing
 evidence that there will be sufficient future taxable inocme against
 which such deffered tax assets can be realised.
 
 9) The Company has made an investment of Rs. 5,00,60,750/- and has
 also advanced a sum of Rs. 46,82,04,969/- 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
 provision for diminution in value has not been considered necessary by
 the management.
 
 10) 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.
 
 II) Key Management Personnel
 
 Shri Surendra Somani - Executive Vice Chairman Shri Ajit Jain -Director
 and Chief Operating Officer (III) Company Under Common Control
 
 a) Oricon Enterprises Ltd.
 
 b) Oricon Properties Pvt Ltd.
 
 11) 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. The balances of few creditors are subject to their
 confirmation.
 
 12) a) The Company has taken certain office/factory premises on
 operating lease basis. Lease payments in respect of such leases
 recognised in statement of profit and loss account Rs. 1,91,67,540/- 
 (Previous year Rs. 1,93,64,670/-)
 
 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.
 
 13) PREVIOUS YEAR FIGURES
 
 Till the year ended 31.03.2011, the company was using pre revised
 schedule VI to the Companies Act, 1956 for preparation and presentation
 of its financial statements. During the year ended 31.03.2012, the
 revised schedule VI notified under the Companies Act, 1956 has become
 applicable to the company. The company has reclassified previous year
 figures to confirm to this year''s classification. The adoption of
 revised schedule VI does not impact recognition and measurement
 principles followed for preparation of financial statements.