1.  Contingent liabilities Rs. in lakhs
 
                                              As at       As at
                                         March 31, 2010  March 31,2009
 
 Liability in respect of Bank guarantees      118.88      116.96
 
 Liability in respect of Letter of credits      -          48.33
 
 2.  Estimated amount of contracts remaining to be executed on capital
 account (net of advances) not provided for, as at March 31, 2010 is Rs.
 Nil (March 31, 2009: Rs. 20.56 lakhs).
 
 3.  Capital work-in-progress includes capital advances of Rs. Nil
 (March 31, 2009 Rs.24.44 lakhs)
 
 4.  Sundry Creditors:
 
 The Company has not received any confirmation from suppliers
 regarding their status under the Micro and Small Enterprises
 Development Act 2006 and hence disclosures, if any, relating to amount
 unpaid as at the year end together with interest paid/payable as
 required under the said Act have not been given.
 
 5.  Segment reporting:
 
 The Company has considered business segment as the primary segment for
 disclosure. The Company is engaged in the manufacture and trading of
 Pharmaceuticals in India, which in the context of Accounting Standard
 (AS) 17 - Segment Reporting notified by the Companies (Accounting
 Standards) Rules, 2006 is considered the only business segment.
 
 6.  Taxation:
 
 In view of the brought forwards losses and no taxable income for the
 current year, the company has not recorded the cumulative deferred tax
 liability/asset as on March 31, 2009 and for the year arising on
 account of timing differences, as stipulated in Accounting Standard(AS)
 22 - Accounting for taxes on income.
 
 7.  Related Party Disclosures:
 
 Information relating to Related Party transactions as per Accounting
 Standard (AS) 18 notified by the Companies (Accounting Standards)
 Rules, 2006.
 
 (A) Name of the Related Party Relationship
 
 Zenotech Farmaceutica Do Brasil Limiteda, Brazil (ZFDBL) I
 
 Zenotech Laboratories Nigeria Limited, Nigeria (ZLNL) > Subsidiary
 
 Zenotech, Inc., USA J
 
 Credence Organics Private Limited (COPL) Associate
 
 Ranbaxy Laboratories Limited (RLL) Entity holding more than 20%
 
 Hemarus Therapeutics Limited (HTHL) 
 
 (Formerly known as Credence Clinical   Promoter Group companies
 
 Research Private Limited)   where common control exists
 
 Rite Diagnostics Private Limited (RDPL) and with which the company
 
 Hemarus Technologies Limited (HTL) had transactions
 
 Credence Power Projects Limited (CPPL)
 
 Credence Infrastructure Limited (CIL)
 
 Hemarus Biologicals Limited (HBL) 
 
 Dr. Jayaram Chigurupati, Promoter and Key
 
 Managing Director Management Personnel
 
 8.  The Company has investments of Rs. 105.60 lakhs (31.03.2009 - Rs.
 105.60 lakhs) in Zenotech Inc., USA (Subsidiary) and has advance
 (including towards share capital Rs.110.55) aggregating to Rs.366.04
 lakhs (31.03.2009 - Rs.398.93 lakhs) to Zenotech Inc., USA. The
 networth of the subsidiary based on management accounts as at March 31,
 2009 has been completely eroded. However having regard to the long term
 involvement of the Company, management is of the view that no provision
 is required on this account at this stage.
 
 9.  The company has a investment of Rs.0.24 lakhs (31.03.2009 -
 Rs.0.24 lakhs) in Credence Organics Private Limited (Associate Company)
 and has given loan of Rs.14.71 lakhs (31.03.2009 - Rs.14.71 lakhs) to
 the aforesaid entity which is outstanding from earlier years. The
 networth of the associate based on management accounts as at March 31,
 2010 has been completely eroded. However having regard to the long term
 involvement of the Company, management is of the view that no provision
 is required on this account at this stage.
 
 10.  Capital work in progress shown under fixed assets includes
 Rs1040.03 lakhs (31.03.2009 - Rs.1041.65 lakhs) in respect of export
 oriented unit. The said unit has not yet been commissioned.
 
 11.  a) Under the Zenotech Employee Stock Option Scheme 2005, the
 company granted 17,000 options (net of options lapsed) of which 4,250
 vested options have been exercised during year, and is pending
 allotment. Accordingly Rs.  2.96 lakhs received on exercise of options
 has been shown under Share Application Money pending allotment.
 
 b) The Company uses the intrinsic value method for accounting employee
 share based payments.
 
 c) The company has not disclosed the impact on the net results and
 earnings per share (both basic and diluted) for the year using the fair
 value method as required in terms of the Guidance Note on Accounting
 for Employee Share- based Payment issued by the Institute of Chartered
 Accountants of India.
 
 12.  The Company has carried forward as at March 31, 2010 product
 development expenditure amounting to Rs. 152.32 lakhs to be written off
 in future years, notwithstanding the insignificant operations during
 the year and continuing operating losses and low utilization of plant,
 having regard to the Companys expectation of improving its future
 level of production and sales.
 
 13.  Figures of the previous year have been regrouped / recast wherever
 necessary to compare with current years classification.