1. SECURED LOANS
 
 Working Capital from Union Bank of India is secured by hypothecation of
 the stocks of raw materials'' packing materials'' work-in-process and
 finished goods and also consumables stores and lien on all receivables
 and personal guarantee of Promoter Directors and First charges of fixed
 assets. During the year the bank has recalled the loan'' hence the same
 has been classified as current liability.
 
 2. DEPRECIATION
 
 Depreciation on fixed assets has been provided as per the rate
 prescribed in Schedule XIV of the Companies Act'' 1956 on straight line
 method. The depreciation in the current year is taken on Plant and
 Machinery on single shift basis
 
 3. BONUS
 
 No bonus has been paid or provided during the period in the accounts of
 the Company as no employee is eligible for the same
 
 4. INVENTORIES
 
 Excise duty has not been provided on finished goods not cleared from
 the factory. However'' this has no bearing on the profit/loss for the
 Current year.
 
 5. INCOME TAX
 
 Since the Company has incurred loss no provision is made for the I
 ncome Tax.
 
 6. MISCELLANEOUS EXPENDITURE
 
 Research and Development expenditure is being written off over a period
 of 5 years. During the year Rs. 2''07''135 have been written off.
 
 7. The Company is dealing only in pharmaceutical segment and only at
 one location and hence there are no segments to be reported separately.
 
 8. None of the employee were in receipt of over Rs.5''00''000.00 p.m. or
 Rs. 60''00''000.00 p.a.  whether the employed for the whole or part of
 the year respectively.
 
 9.The balances of all Sundry Debtors'' Sundry Creditors'' Loans and
 advances payables and receivables have not been confirmed by the
 parties.
 
 10.  Previous year figures have been regrouped and reclassified
 wherever considered necessary.
 
 11. Paisa has been rounded off to the nearest rupee.
 
 12.There is a claim of Rs. 5.00 Lakhs against the company for damages
 by Lee Pharma Ltd for delayed payment of advance.