Interest accrued and due

- 18% 300,000 Secured Redeemable Non-Convertible Debentures of Rs. 100 each. Redeemable 4 equal annual instalments commencing from 28-03-2002 i.e, on expiry of 4th year from the date of allotment. (Privately placed with Financial Institution) Secured by equitable mortgage by deposit of title deeds relating to the company's immovable properties situated at company's technical plant and further excluding those hypothecated in favour of banks for securing working capital facilities, ranking paripassu with the term loan from financial institutions.

Term Loans :

- From Financial Institutions

Interest accrued and due

Secured by equitable mortgage by deposit of title deeds relating to the company's immovable properties situated at company's technical plant and further hypothecation of movable properties, present and future excluding those hypothecated in favour of Banks for securing working capital facilities.

- From others

Interest accured and due

Secured by equitable mortgage by deposit of title deeds relating to the staff quarters and land appurtenant thereto.

Other than Term Loans :

- From others

Secured by equitable mortgage by deposit of title deeds relating to the land belonging to other company and personnel properties of some of the directors.

Cash Credits - From Banks

Secured by equitable mortgage by deposit of title deeds relating to company's immovable properties situated at company's formulation plant and further hypothecation of plant and machinery thereat and by a second charge by way of hypothecation of plant and machinery at Company's technical plant and further hypothecation of inventories and book debts.

Hire Purchase - From others

Secured by way of hypothecation of specific plant and machinery and vehicles

The above Loans are Guaranteed by some of the Directors of the Company.

3. Pursuant to resolution of the members of the company, passed at the Annual General Meeting held on Monday, the 29th September 1997, the Authorised Share Capital of the company has been altered and increased from Rs. 6,00,00,000 (Rupees Six Hundred Lakhs) divided into 60,00,000 (Sixty Lakhs) Equity Shares Rs. 10 (Rupees Ten only) each to Rs. 8,00,00,000 (Rupees Eighty Hundred Lakhs) divided into 80,00,000 (Eighty Lakhs) Equity Shares of Rs. 10 (Rupees Ten only). However, Under Schedule I, the Authorised Share Capital is stated at the level prior to the increase, pending completion of other procedures under the Companies Act, 1956.

4. State Subsidy of Rs. 16,61,760 (1999 : Rs. 16,61,760) included under Capital Reserve is refundable in the event of non compliance of certain conditions attached to the grant of the subsidy.