1.  Contingent Liabilities not provided for :
 
                                               (Amount in Millions)
 
 Particulars                              31.12.2010        31.12.2009
 
 I Pending Bank Guarantee                       0.00             19.71
 
 ii Corporate Guarantee against third 
 party loan                                   125.00            125.00
 
 iii Pending Letter of Credit                  97.12             74.65
 
 iv Estimated amount of contract remaining
 unexecuted on capital account and not 
 provided  for (Advance given Rs.1.03 
 million) (Previous Year Rs. 1.34 million).     2.10              2.60
 
 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.
 
 4.  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.
 
 5.  The working capital loan taken from Punjab National Bank is secured
 by
 
 (a) Hypothecation of company''s entire stocks and book debts on first
 paripassu 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.
 
 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.  Corporate Loan taken from State Bank of India is secured by
 
 (i) pledge of equity shares of the company held by one of the directors
 of the company
 
 (ii) Personal Guarantee of one of the directors of the company.
 
 8.  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.
 
 9.  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.
 
 10.  Vehicle \ House Loans are secured by hypothecation of related
 Vehicle \House Property.
 
 11.  Term Loan repayable within one year is Rs. 488.00 million
 (Previous year Rs. 280.28 million)
 
 12.  The Foreign Exchange Gain of Rs.136.88 million (previous year gain
 of Rs. 163.50 Million) arising out of revaluation in respect of
 outstanding FCCB of USD 75 Million as on 31.12.2010 has been recognized
 and credited to the Profit and Loss Account of the year as an Extra
 Ordinary Item.
 
 13.  Provision of Rs.268.93 million (previous year Rs. 285.99 Million.)
 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.  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.
 
 14.  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.
 
 15.  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.
 
 16.  There is no amount outstanding or due from firms/companies in
 which director(s) are interested as a Partner or Director.
 
 17.  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.
 
 18.  During the year under review, the company was subject to search
 and seizure operations by the Income Ta x department (Investigation).
 During the course of the search, certain documents and articles were
 seized from different locations and statements of company''s various
 executives including Chairman and Managing Directors were recorded.
 Pursuant to the ongoing proceedings, the final tax liability has not
 been determined hence provision made during the year for the tax
 liability is subject to final assessment.
 
 19.  Balance with a non-scheduled bank comprises balance of Rs.0.01
 million (Previous Year 1.42 Million) in current account with Karur
 Vysya Bank Ltd.
 
 20.  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.
 
 21.  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.
 
 22.  The figures of previous year have been regrouped / reclassified
 wherever necessary to conform to the current year''s presentation.
 
 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 Oct 2,2006. 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, 2 010
 Information about Primary Business segment. The company is Exclusively
 in the health care business segments Information about Secondary
 Geograp
 
 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.21.95 million (Previous year Rs.20.67
 million) 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.28.99 million whereas fair value of plan assets at the
 end of the year was of Rs.33.14 million. The total benefit of Rs.0.85
 million has been paid during the year. The return on plan assets during
 the year was Rs.2.05 million; however there was no excess / short
 amount over estimated return on plan assets.
 
 29.  The deferred tax liability of Rs.  10.54 million for the year
 ended Dec.  31,2010 has been debited to the profit & loss account.