A) Cash Credit Limit Primary Security

a) Hypothecation by way of First Charge of all the company's stocks of raw materials, semi finished, finished goods stores, spares, book debt/movables and the Company's Fixed assets both present and future.

Collateral Security

b) EM of immovable properties at Thimmapuram village, Bheemunipatnam Mandalam, Vishakapatnam District

c) Additional security of 91 acres of land at Sirumalai owned by Taurus Aromatics and Phytochemicals

2. Unsecured Loans

Unsecured Loans includes the soft loan of Rs. 6.85 Crores from Department of Science and Technology and Department of Biotechnology and Rs. 2.30 Crores from Directors.

3. Depreciation

Depreciation on Fixed Assets is calculated on straight line method in accordance with the rates prescribed under schedule XIV of the Companies Act, 1956. Sale of Assets had been adjusted and loss is charged to profit & loss account.

4. Investments

Shares held by M/S. ABL Biotechnologies Ltd in M/S. Samudra Biopharma Private Limited amounting to Rs. 130 lacs are pledged to TDB of Government of India as collateral security for the loan facility extended to M/S. Samudra Biopharma Private Limited. Investment represents the cost price and no adjustment has been made for change in the value of the share of the M/S. Samudra Biopharma Private Limited, being a private limited company and not traded.

5. Additional information as required in Para II of schedule VI to the companies Act, 1956.

6. The Equity Shares of the Company are listed in the Bombay Stock Exchange.

7. Related Party Disclosures

There is no related party transaction during the year under review.

8. No Confirmation of balances has been obtained with regard to Sundry Debtors and Sundry Creditors.

9.  Contingent Liabilities                  31.03.2012       31.03.2011
                                             ( In Rs )        ( In Rs )

( i ) Corporate Guarantee given on behalf 
of Samudra                                   19,120,000      19,120,000

(ii ) Guarantee to repay loan due to Shantha Biotechnics 26,103,200 Pvt. Limtied by Samudra Biopharma Pvt. Limited. 26,103,200

10. Segmental Reporting:

ABL has identified three distinctive segments / divisions. (a) Formulation (b) Research & Development (c) The DHA project. The main focus of the company is discovery , collection of microbes, establishment off compound libraries, discovery of drug and nutrition targets, conducting research and converting the strains/ compounds collected into deliverable active pharmaceutical products, be it ingredients or drugs. The company is currently conducting research on multiple API's . These have to further be converted into products which may require to undergo clinical trials. When the product is fully developed it becomes a formulation/ API which may or may not have patent protection.

Therefore Segmentisation in the company basically follows the drug discovery and exploitation process with differing risks and returns and internal business reporting systems. DHA is one specialized process developed by the company which is currently undergoing the patenting process and is ripe for commercial exploitation. Therefore the segments in the company are (a) R&D (b) DHA

11. Deferred Tax

In term of Accounting standard (AS22) on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, there is a net deferred tax liability.

In compliance with the provision of the Accounting Standard and based on general prudence, the company has not recognized the said deferred tax liability while preparing the accounts of the period.

12. Previous Year Figures have been regrouped and rearranged wherever necessary, to conform to current period's classification.

13. The figures have been rounded off to the nearest rupee.