200603 - Quarter 2


Tax Includes Provision for

EPS is Basic and Diluted


Status of Investor Complaints for the quarter ended March 31, 2006

Complaints Pending at the beginning of the quarter 01

Complaints Received during the quarter Nil

Complaints disposed off during the quarter Nil

Complaints unresolved at the end of the quarter 01

1. The Fixed & Current assets of the Company at the Registered Office
& Factory at Cuddalore have
been taken possession by the Receiver appointed by the Hon´ble
High Court, Bombay on a notice
of motion taken out by Bank of India in its capacity as Trustees for
Secured Debenture Holders on &
from February 22, 2006.

2. As already reported, the manufacturing operation had remained
suspended due to continuously
unsustainable prices of pencillin - G till February 21, 2006.
Meanwhile, the Company had continued
its efforts for a viable alternative/ arrangement in order to revive
the unit upto February 21,
2006, After which the possesion of assets was taken over by the
Receiver. As such, the Accounts
have been prepared on a going concern basis without providing for any
impairment of assets as
required under AS-28, if any, at this point of time.

3. Depreciation has been provided on the Miscellaneous Fixed Assets
of the Company for the period
upto February 21, 2006. However, no depreciation has been provided on
Plant & Machinery, Building
for this quarter and Miscellaneous Fixed Assets after February 21,
2006 (when the possession of
assets was taken over by the Receiver in & from February 22, 2006)
amounting to Rs 24.4 million and
Rs 145.6 million upto this quarter.

4. Segment Reporting as defined under Accounting Standad-17 is not
applicable, as there is only one
reportable segment.

5. Non-Provision of Interest of a) Rs 1.529 million on Working
Capital Loan b) Rs 0.259 million on
Inter-Corporate Deposits and c) Rs 14.079 million on Debenture
(including interest on overdue
interest) for this quarter.

6. The company has made a reference to BIFR under sub-section (1) of
section 15 of the Sick
Industrial Companies (Special Provisions ) Act, 1985.

7. Auditor´s observation as explained in the Audited Accounts
for the year ended September
30, 2005 for-

i) Non-Provision of interest (including interest on overdue interest)
on debentures Rs 44.309
million for the year and Rs 115.743 million upto September, 2005 and
ii) Non-Provision of interest
of Rs.3.602 million on Inter-Corporate Deposits for the year iii)
preparation of accounts on a
going concern basis iv) Non-Provision of impairment of assets v)
Recoverability or otherwise of the
amount of Rs.3.516 million pending approval of the Director vi)
Non-Provision of depreciation on
certain assets of the company amounting to Rs 96.9 million for the
year due to suspension of
manufacturing operations for entire year. There is no material change
therein.

8. The above results were taken on record by the Board of Directors
at its meeting held on April
26, 2006.