1.  Contingent Liabilities not provided for :
 
                                                 (Rs. in Millions)
 
 Particulars                              31.12.2011     31.12.2010
 
 i Pending Bank Guarantee                     17.92           0.00
 
 ii Corporate Guarantee against             2150.00         125.00
    third party loan
 
 iii Pending Letter of Credit                 69.97          97.12
 
 iv  Estimated amount of contract
     remaining unexecuted on capital
     account and not provided for
     (Advance given Rs. 1.26 million)
     (Previous Year Rs. 1.03 million).           3.76           2.10
 
 2.  The working capital loans taken from Bank of Baroda are secured by
 :
 
 (a) Hypothecation of company''s entire stocks and book debts on first
 pari passu charge basis
 
 (b) On first pari passu charge basis by :
 
 (i) Equitable mortgage of company''s land and building situated at
 Khasra No. 821/1, Village Dharavara, Tehsil Depalpur, Indore and at
 Khasra No. 285/1/2, Village Gari Pipliya, Manglia, Indore.
 
 (ii) Hypothecation of Plant and Machinery installed in the aforesaid
 factory premises situated at Khasra No. 821/1, Village Dharavara,
 Tehsil Depalpur, Indore and at Khasra No.  285/1/2, Village Gari
 Pipliya, Manglia, Indore.
 
 (c) Personal Guarantee of two directors of the company.
 
 3.  The working capital loans taken from IDBI Bank are secured by :
 
 (a) Hypothecation of company''s entire stocks and book debts on first
 pari passu charge basis
 
 (b) Second charge by way of equitable mortgage over company''s land and
 building situated at Khasra No.285/1/1, Village Gari Pipliya, Manglia,
 Indore
 
 (c) Hypothecation of Plant and Machinery installed in the factory
 premises situated at Khasra No. 285/1/1, Village Gari Pipliya, Manglia,
 Indore
 
 (d) Personal Guarantee of one of the directors of the company.
 
 5.  The working capital loan taken from State Bank of India is secured
 by :
 
 (a) Hypothecation of company''s entire stocks and book debts on first
 pari passu charge basis
 
 (b) On first pari passu charge basis by :
 
 (i) Equitable mortgage of company''s land and building situated at
 Khasra No.821/1, Village Dharavara, Tehsil Depalpur, Indore and at
 Khasra No. 285/1/2, Village Gari Pipliya, Manglia, Indore.
 
 (ii) Hypothecation of Plant and Machinery installed in the aforesaid
 factory premises situated at Khasra No. 821/1, Village Dharavara,
 Tehsil Depalpur, Indore and at Khasra No. 285/1/2, Village Gari
 Pipliya, Manglia, Indore.
 
 (c) Personal Guarantee of a director of the company.
 
 4.  The working capital loan taken from Punjab National Bank is secured
 by:
 
 (a) Hypothecation of company''s entire stocks and book debts on first
 pari passu charge basis.
 
 (b) On first pari passu charge basis by :
 
 (i) Equitable mortgage of company''s land and building situated at
 Khasra No.821/1, Village Dharavara, Tehsil Depalpur, Indore and at
 Khasra No.285/1/2, Village Gari Pipliya, Manglia, Indore.
 
 (ii) Hypothecation of Plant and Machinery installed in the aforesaid
 factory premises situated at Khasra No. 821/1, Village Dharavara,
 Tehsil Depalpur, Indore and at Khasra No. 285/1/2, Village Gari
 Pipliya, Manglia, Indore.
 
 (c) Personal Guarantee of two directors of the company.
 
 5.  The working capital loan taken from Allahabad Bank is secured by :
 
 (a) Hypothecation of company''s entire stocks and book debts on first
 pari passu charge basis
 
 (b) On first pari passu charge basis by :
 
 (i) Equitable mortgage of company''s land and building situated at
 Khasra No.821/1, Village Dharavara, Tehsil Depalpur, Indore and at
 Khasra No.285/1/2, Village Gari Pipliya, Manglia, Indore.
 
 (ii) Hypothecation of Plant and Machinery installed in the aforesaid
 factory premises situated at Khasra No. 821/1, Village Dharavara,
 Tehsil Depalpur, Indore and at Khasra No. 285/1/2, Village Gari
 Pipliya, Manglia, Indore.
 
 (c) Personal Guarantee of a director of the company.
 
 6.  The corporate term loan of Punjab National Bank is secured by (a)
 Pledge of company''s equity shares held by one of the Directors.
 
 (b) Personal Guarantee of one of the Directors of the company
 
 7.  The term loans taken from EXIM Bank, Mumbai is secured by
 
 (i) Exclusive first charge by way of equitable mortgage of company''s
 land and building situated at Khasra No.821/2, Village Dharawara,
 Depalpur Tehsil, Indore (ii) Hypothecation of Plant and Machinery
 installed in the aforesaid factory premises situated at Khasra No.
 821/2, Village Dharawara, Depalpur Tehsil, Indore.  
 
 (iii) Pledge of equity shares of the company by a director of the
 company.
 
 (iv) Personal Guarantee of two directors of the company.
 
 8. The Term loan of IDBI Bank is secured by
 
 (a) First charge by way of equitable mortgage over company''s land and
 building situated at Khasra No.285/1/1, Village Gari Pipliya, Manglia,
 Indore
 
 (b) Hypothecation of Plant and Machinery installed in the factory
 premises situated at Khasra No. 285/1/1, Village Gari Pipliya, Manglia,
 Indore
 
 (c) Personal Guarantee of one of the directors of the company.
 
 9. Vehicle\House Loans are secured by hypothecation of related Vehicle
 \House Property.
 
 10. Term Loan repayable within one year is Rs. 409.21 million (Previous
 year Rs. 488.00 million).
 
 11. The Foreign Exchange loss of Rs. 630.00 million (previous year gain
 of Rs. 136.88 Million) arising out of revaluation in respect of
 outstanding FCCB of USD 75 Million as on 31.12.2011 has been recognized
 and credited to the Profit and Loss Account of the year as an Extra
 Ordinary Item.
 
 12. Provision of Rs. 540.02 Mn. (previous year Rs. 268.93 Mn.) has been
 made during the year on account of premium payable on redemption of
 FCCB in terms of the Offering Circular dated 18.10.2007, which has been
 charged to the Share Premium Account Rs. 165.07 Mn. and Profit & Loss
 Account Rs. 374.95 Mn.  The Company currently has outstanding bonds at
 face value of USD 75 million. Till date no bonds have been converted
 nor redeemed or cancelled. The term of the bonds are: 0% coupon,7.7%
 YTM, Reset conversion price is Rs. 484/- and maturity date is
 October''2012.
 
 13. The company holds 100% equity of Plethico Global Holding BV,
 Netherlands who in turn holds directly or indirectly 100% equity of
 Natrol INC, USA, Natrol Global, UAE and Plethico US Holding KFT,
 Hungary. Therefore, such companies are step down subsidiaries of our
 company. The company also holds 100% equity of Plethico International
 Ltd. UAE setting up medicated lozenges and solid dosage formulation
 manufacturing unit in UAE.
 
 14. The company does not have significant influence in any of the above
 companies as defined under AS18 Related Party Disclosure and AS23
 Accounting for Investment in Associates in consolidated financial
 statements and as such, all above companies are neither related party
 nor associate companies within the meaning of above accounting
 standards. Consequently consolidation of accounts has not been done for
 the above companies.
 
 15. There is no Loan & advances outstanding from firms/companies in
 which director(s) are interested as a Partner or Director.
 
 16. The company is duly applying to the competent authority for getting
 extension with respect to the overdue export proceeds in accordance
 with the provisions of the Foreign Exchange Management Act, 1999 and
 Foreign Exchange Management (Export of goods and services) Regulations,
 2000.
 
 17. Basic and Diluted Earning per share (''EPS'') computed in accordance
 with Accounting standard ( AS ) 20 Earning per Share
 
 18. Balance with a non-scheduled bank comprises balance of Rs. 0.00
 million (Previous Year Rs. 0.01 Million) in current account with Karur
 Vysya Bank Ltd.
 
 19. Debtors, Loans & Advances, Creditors and Bills Payable are subject
 to confirmation by the parties. The company has issued confirmation
 letters to such parties and differences if any shall be reconciled in
 the current Year.
 
 20.  In opinion of the Board, the provisions for known liabilities are
 adequate and current assets in the ordinary course of business have a
 value at least equal to the amount at which they are stated.
 
 21. The figures of previous year have been regrouped / reclassified
 wherever necessary to conform to the current year''s presentation.
 
 22. Computation of Net Profit under Section 349 read with Section 309
 (5) and Section 198 of the Companies Act, 1956:
 
 23.  The company is obtaining confirmation from suppliers regarding the
 registration under the MSME Act Micro Small and Medium Enterprises
 Development Act 2006, which came into effect from 2nd Oct, 2006. The
 suppliers are not registered wherever the confirmations are received
 and in other cases, the company is not aware of their registration
 status and hence information relating to outstanding balance or
 interest due is not disclosed as it is not determinable.
 
 24.  Additional Information pursuant to provisions of Para 3, 4c of
 Part II of Schedule VI to the Companies Act, 1956.
 
 25. Segment Information for the year ended 31st December, 2011
 Information about Primary Business segment. The company is Exclusively
 in the healthcare business segments Information about Secondary
 Geographical segments.
 
 B Key Managerial Personnel
 
 1.  Shashikant .A. Patel Chairman cum Managing Director
 
 2.  Chirag.S. Patel Whole Time Director and CEO
 
 3.  Gauravi.K.Parikh Executive Director
 
 4.  Sanjay Pai Chief Finance Officer
 
 5.  Anil K Mohta Chief Technical Officer
 
 6.  John Philip Roy VP - International Sales
 
 7.  Mangesh Joshi GM - HR
 
 No amount have been written off/provided for or written back during the
 year in respect of debt due from or to related party.
 
 26. Amount Receivable from Managerial Staff Rs. Nil (Max Balance Rs. Nil)
 
 27. Disclosure on Lease as per Accounting Standard 19 on  Accounting
 for lease: The company has entered into operating lease agreement for
 office premises, Guest house, warehouse and vehicle renewable on
 periodic basis and is cancelable. The rental expenses for operating
 lease are amounting to Rs. 21.86 Mn. (Previous year Rs.21.95 Mn.) have been
 recognized in the P&L account.
 
 28. The company has an Employees'' Gratuity Fund managed by Life
 Insurance Corporation of India.  As required by AS-15, the status of
 the present value of the obligations under the gratuity plan at the end
 of the year was Rs. 279.72 Mn. whereas fair value of plan assets at the
 end of the year was of Rs. 274.90 Mn. The total benefit of Rs.5.43 Mn. has
 been paid during the year. The return on plan assets during the year
 was Rs. 2.04 Mn., however there was no excess/short amount over estimated
 return on plan assets.