NOTE 1
 
 There is no marketable value of livestock used for R&D purpose, hence
 not considered in financials.
 
 NOTE 2
 
 There are no dues to SSI Units outstanding for more than 30 days.
 
 NOTE 3
 
 Confirmations were not obtained from debtors/creditors as to the
 balances receivable from/ payable to them as at year end.
 
 NOTE 4
 
 The Company has been awarded soft loan given by SBIRI (Small Business
 Innovation Research Initiative), Department of Bio Technology, towards
 the project - Production of recombinant exenatide (Incretin mimetic
 like GLP-1) (Phase II) a new generation cure for Diabetes given
 specifically for the R&D work being carried out by company''s biologic
 division operating from the facility located at Pothaipally Village,
 Hakimpet recognized by DSIR (Department of Scientific and Industrial
 Research) as in-house R&D unit vide approval F.No.  TU/IV-RD/2740/2010.
 Separate No Lien Account is opened for the project funds and will be
 spent towards projects objectives directly from that account.
 
 A separate mortgage is created for the whole of movable and immovable
 properties acquired from the loan sanctioned by the DBT under the SBIRI
 scheme including its movable plant and machinery, machinery spares,
 tools and accessories and other movables both present and future
 (except book debts)
 
 NOTE 5
 
 The company has taken lease of 12,500 sft area, at prevailing market
 rates, from M/s Virinchi Technologies Limited for R&D division in which
 one of the promoters is a Director.
 
 NOTE 6
 
 Previous years figures have been regrouped wherever necessary.
 
 NOTE 7
 
 The figures have been rounded off to the nearest rupee.
 
 NOTE 8 : Loans and Advances:
 
 We have taken a loan given by SBIRI (Small Business Innovation Research
 Initiative), Department of Bio Technology, towards the project -
 Production of recombinant exenatide (Incretin mimetic like GLP-1)
 (phase II) a new generation cure for Diabetes given specifically for
 the R&D work being carried out by company''s biologic division operating
 from the facility located Pothaiapally village, Hakimpet recognized by
 DSIR (Department of Scientific and Industrial Research) as in house R
 &D unit.
 
 On February 17,2011, DBT has provided the first installment of 224.3
 Lakhs, which is used exclusively towards purchase of equipments for the
 company''s in-house R&D unit located at Pothaipally village, Hakim pet
 and for the R&D and operational expenses related to the project under
 consideration.