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1. |
Above results were reviewed
by the Audit Committee and approved by the Board of Directors in
meetings held on October 28, 2005. |
|
2. |
The prices of Penicillin-G
& Amoxicillin in both, the domestic & the international
markets have been falling since July, 2003. Due to the adverse market
conditions the production of Penicillin-G has been suspended w.e.f
. March 31, 2005 and Derivatives from June14, 2005. |
|
3. |
The Company was declared a
Sick Industrial Company by Board for Industrial and Financial Reconstruction
(BIFR) under the provisions of Section 3(1)(o) of the Sick Industrial
Companies (Special Provisions) Act, 1985. A scheme of Rehabilitation
has been sanctioned by BIFR vide its Order dated March 10, 2003
and an amount of Rs.6,665 lacs representing the waiver/reduction
in liabilities, has been kept in Reconstruction Reserve pending
compliance of certain conditions. |
|
4. |
The company has entered in
to Memorandum of Understanding (MOU) on October 12, 2005 with M/S
Sterling Biotech Ltd for sale of its manufacturing facilities at
Masar, Tal: Padra, Dist: Vadodara for Rs.55 crores in all cash deal,
subject to approval from BIFR, Debenture Trustees, GIIC and Shareholders.
Such approvals are yet to be received. The company would enter in
to Definitive Assets Transfer Agreement only after receipt of such
approvals. Necessary adjustment in the value of fixed assets will
be made in the books of accounts, only on completion of the deal.
|
|
5. |
In absence of taxable income,
no provision for Income-tax is considered necessary. The Company
has unabsorbed depreciation and carried forward losses under tax
laws. In absence of virtual certainty of sufficient
future taxable income, net deferred tax asset has not been recognized
in the accounts under review. |
|
6. |
The company operates only
in one segment i.e. Bulk Drugs. |
|
7. |
Accounts of the Company have
been prepared on going concern basis. Effect of sale of manufacturing
facility as envisaged in the MOU shall be made in the books of accounts
on completion of the deal. |
|
8. |
The equity shares of the company
have been delisted from The Stock Exchange, Ahmedabad w.e.f. October
10, 2005 |
|
9. |
During the quarter ended September
30,2005, the company has received and disposed off 26 Investors’
complaints. There was no investors’ complaint pending at the beginning
and at the end of the quarter. |
|
10. |
The figures for the corresponding
period have been regrouped wherever necessary to make them comparable. |
|
11. |
The results for the quarter
ended September 30, 2005 are subject to “Limited Review” by the
Statutory Auditors of the Company. |
