Notes to Accounts of Bafna Pharmaceuticals Ltd.

Mar 31, 2025

N. Provisions

A provision is recognized if, as a result of a past event, the
Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an
outflow of economic benefits will be required to settle
the obligation. Provisions are measured at the present
value of management''s best estimate of the expenditure
required to settle the present obligation at the end of the
reporting period.

Provisions are reviewed and adjusted, when required,
to reflect the current best estimate at the end of each
reporting period.

The Company recognizes decommissioning provisions
in the period in which a legal or constructive obligation
is incurred. A corresponding decommissioning cost is
added to the carrying amount of the associated property,
plant and equipment, and it is depreciated over the
estimated useful life of the asset.

O. Contingent Liabilities

Contingent liability is disclosed in case of:

• A present obligation arising from past events, when
it is not probable that an outflow of resources will be
required to settle the obligation;

• A present obligation arising from past events, when
no reliable estimate is possible;

• A possible obligation arising from past events whose
existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future
events beyond the control of the Company where the
probability of outflow of resources is not remote.

Contingent Assets

Contingent assets are not recognized but disclosed in
the Financial Statements when an inflow of economic
benefits is probable. Contingent assets are assessed
continually and, if it is virtually certain that an inflow of
economic benefits will arise, the asset and related income
are recognised in the period in which the change occurs.

}. Fair Value Measurements

Company follows the hierarchy mentioned underneath for
determining fair values of its financial instruments:

• Level 1 - Quoted prices (unadjusted) in active
markets for identical assets or liabilities;

• Level 2 - Inputs other than quoted prices included in
Level 1 that are observable for the asset or liability,
either directly (prices) or indirectly (derived from
prices); and

• Level 3 - Inputs for the asset or liability that are not
based on observable market data.

The fair value of financial instruments traded in active
markets is based on quoted market prices at the reporting
dates. A market is regarded as active if quoted prices are
readily and regularly available from an exchange, dealer,
broker, industry group, pricing service, or regulatory
agency, and those prices represent actual and regularly
occurring market transactions on an arm''s length basis.
The fair value for these instruments is determined using
Level 1 inputs.

The fair value of financial instruments that are not
traded in an active market (for example, over the
counter derivatives) is determined by using valuation
techniques. These valuation techniques maximize the
use of observable market data where it is available and
rely as little as possible on entity specific estimates. If
all significant inputs required to fair value an instrument
are observable, the instrument is fair valued using level 2
inputs.

If one or more of the significant inputs is not based on
observable market data, the instrument is fair valued
using Level 3 inputs. Specific valuation techniques used
to value financial instruments include:

• Quoted market prices or dealer quotes for similar
instruments

• The fair value of interest rate swaps is calculated as
the present value of the estimated future cash flows
based on observable yield curves

• The fair value of forward foreign exchange contracts
is determined using forward exchange rates at the
reporting dates, with the resulting value discounted
back to present value

• Other techniques, such as discounted cash flow
analysis, are used to determine fair value for the
remaining financial instruments.

R. Revenue Recognition

Revenue from contracts with customers is recognised
when control of the goods or services are transferred to
the customer at an amount that reflects the consideration
to which the Company expects to be entitled in exchange
for those goods or services.

The Company recognizes revenue from contracts with
customers based on a five-step model, such as to,
identifying the contracts with a customer, identifying the
performance obligations in the contract, determine the
transaction price, allocate the transaction price to the
performance obligations in the contract and recognize
revenue when (or as) the entity satisfies a performance
obligation at a point in time or over time.

The Company satisfies a performance obligation and
recognizes revenue over time, if one of the following
criteria is met:

• The customer simultaneously receives and
consumes the benefits provided by the Company
performance as the Company performs; or

• The Company''s performance creates or enhances
an asset that the customer controls as the asset is
created or enhanced; or

• The Company''s performance does not create an
asset with an alternative use to the Company and
the entity has an enforceable right to payment for
performance completed to date.

For performance obligations where one of the above
conditions are not met, revenue is recognized at the point
in time at which the performance obligation is satisfied.

S. Other Income
Interest Income

For all debt instruments measured either at amortized
cost or at fair value through other comprehensive
income, interest income is recorded using the effective

interest rate (EIR). EIR is the rate that exactly discounts
the estimated future cash payments or receipts over
the expected life of the financial instrument or a shorter
period, where appropriate, to the gross carrying amount
of the financial asset or to the amortized cost of a
financial liability. When calculating the effective interest
rate, the Company estimates the expected cash flows
by considering all the contractual terms of the financial
instrument (for example, prepayment, extension, call and
similar options) but does not consider the expected credit
losses. Interest income is included in finance income in
the Statement of Profit and Loss.

Interest income on fixed deposits is recognized on a
time proportion basis taking into account the amount
outstanding and the applicable interest rate.

Dividend income

Dividend income is recognized at the time when right to
receive the payment is established, which is generally
when the shareholders approve the dividend.

T. Foreign Currency Transactions
Functional and Presentation Currency

The Financial statements are presented in Indian Rupee
(INR/?) which is also the functional and presentation
currency of the Company.

Transactions and Balances

Transactions in foreign currencies are translated to
the functional currency at exchange rates in effect on
transaction date. At each reporting date, monetary
assets and liabilities denominated in foreign currencies
are translated at the exchange rate in effect at the date of
Financial Statement.

The translation for other non-monetary assets and
liabilities are not updated from historical exchange rates
unless they are carried at fair value.

U. Government Grants

Government grants are recognized where there is
reasonable assurance that the grant will be received
and all attached conditions will be complied with. When
the grant relates to an expense item, it is recognized as
income on a systematic basis over the periods that the
related costs, for which it is intended to compensate,
are expensed. When the grant relates to an asset, it is
recognized as income in equal amounts over the expected
useful life of the related asset.

V. Earnings per share

Basic earnings per share are calculated by dividing the
profit attributable to owners of the Company by the
weighted average number of equity shares outstanding
during the financial year, adjusted for bonus elements
in equity shares issued during the year and excluding
treasury shares.

Diluted earnings per share adjust the figures used in the
determination of basic earnings per share to take into
account, the after income tax effect of interest and other
financing costs associated with dilutive potential equity
shares and the weighted average number of additional
equity shares that would have been outstanding assuming
the conversion of all dilutive potential equity shares.

W. Segment Reporting

Operating segments are identified and reported in a
manner consistent with the internal financial reporting
provided to the chief operating decision makers,
responsible for allocating resources and assessing
performance of the operating segments.

X. Events after reporting date:

Where events occurring after the Balance Sheet date
provide evidence of conditions that existed at the end
of the reporting period, the impact of such events is
adjusted within the Financial Statements. Non Adjusting
events after the Balance Sheet date which are material
in size or nature are disclosed separately in the Financial
Statements.

33 EARNING PER SHARE

The Company''s Earnings Per Share (''EPS'') is determined based on the net profit attributable to the shareholders of the
Company. Basic earnings per share is computed using the weighted average number of shares outstanding during the year.
Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent
shares outstanding during the year including share options, except where the result would be anti-dilutive.

34 EMPLOYEE BENEFITS

Leave of absence and encashment:

The Company has different leave plans including paid leave of absence plans and encashment of leave plans for employees
at different grades and provision has been made in accordance with Ind AS-19. The total amount of provision available for the
unavailed leave balances as at 31^st March 2025 is INR 61 Lakhs (as at 31^st March 2024 INR 51.78 Lakhs). Liability has been
created based on actuarial valuation done during the year, with the Discount rate of 6.71% (Prev. Year 7.21%)

Defined Benefit Plans

The Company has a defined benefit gratuity plan, which is regulated as per the provisions of Payment of Gratuity Act, 1972.
Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on
retirement/ termination is the employee''s last drawn basic salary per month computed proportionately for 15 days salary
multiplied for the number of years of service. The scheme is funded by the Company. The liability for the same is recognized
on the basis of actuarial valuation

Note : Sensitivity due to mortality and withdrawals are not material and hence impact of change not calculated.

Defined Contribution Plans

In respect of the defined contribution plan (Provident fund), an amount of INR 76.28 Lakhs (31^st March 2024: INR 70.66
Lakhs) has been recognized as expenditure in the Statement of Profit and Loss.

In respect of the State Plans (Employee State Insurance), an amount of INR 6.54 Lakhs (31^st March 2024: INR 6.29 Lakhs)
has been recognized as expenditure in the Statement of Profit and Loss.

During the year the Company has provided Bonus and incentive of INR 107.18 Lakhs (31^st March 2024: INR 118.54 Lakhs) as
expenditure in the Statement of Profit & Loss.

the relevant claims stands extinguished. The Company has also filed writ petitions before the Honourable Madras High Court
requesting the demand to be quashed.

*The Income Tax Refund amounting to INR 45.17 Lakhs has been adjusted against the previous years demand by the
Income Tax Department. The Company has filed the writ petition in Honourable Madras High Court against such demands
which has been issued by the Centralized Processing Centre ("CPC"). The management of the Company is of the view that
post completion of CIRP no such demands is payable by the Company. Based on the writ petition filed by the Company, the
management is confident of obtaining a favourable outcome in this regard.

**The Company has received the demand of INR 265.42 Lakhs including penalties for the period FY 2017-18 to FY
2020-21against which a liability of INR 29.95 Lakhs has been paid by the Company. The Company has disputed INR 235.47
Lakhs and filed the appeal with CGST Appeals. Based on the management assessment, the Company is of the opinion that
said demand will be set aside and there will be no liability.

36 The Company has received communications from BSE Limited and National Stock Exchange of India Limited regarding
the non-compliance with respect to certain regulations including Minimum Public Shareholding ("MPS") requirements
specified in Rule 19 (2) and Rule 19A of the Securities Contracts (Regulations) Rules, 1957, as amended and Regulation 38
of the Listing Obligations and Disclosure Requirements Regulations of Securities Exchange Board of India ("SEBI") ("Listing
Regulations"). The Company has created a provision of INR 163.68 Lakhs as on 31^st March 2025 (as on 31^st March 2024: INR
88.39 Lakhs) towards penalties and also the Company has requested waiver for such penalties and also subsequently met
the MPS criteria. Based on the internal assessment and communication with the BSE Limited and National Stock Exchange
of India Limited, the management is confident of obtaining waiver from such penalties.

37 SEGMENT REPORTING

The Company is engaged in the business of manufacturing and trading of pharmaceuticals products. The Chief Operating
Decision Maker monitors the operating results of its business for the purpose of making decisions about resource allocation
and performance. Manufacturing and trading of pharmaceuticals products is considered as only segment.

39 CAPITAL MANAGEMENT

The objective of the Company''s capital management structure is to ensure sufficient liquidity to support its business, to
ensure the Company''s ability to continue as a going concern and provide adequate return to shareholders.

The Company monitors capital and the long term cash flow requirements including externally imposed capital requirements
of the business on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face.

Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure while
avoiding excessive leverage. This takes into account the subordination levels of the Company''s various classes of debt. The

40 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
Financial Risk Management Framework

Company''s principal financial liabilities comprises of borrowings, trade payables and Other financial liabilities. The main
purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include
trade receivables, loans, cash and bank balances and other financial assets.

Risk Exposures and Responses

The Company is exposed to market risk, credit risk and liquidity risk. The Board of Directors reviews policies for managing
each of these risks, which are summarised below.

i) Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the
price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates,
foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market risk sensitive
instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits,
foreign currency receivables, payables and borrowing.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the
Company''s borrowing with floating interest rates. The Company constantly monitors the credit markets and rebalances its
financing strategies to achieve an optimal maturity profile and financing cost. The Company''s exposure to interest rate risk
relates primarily to interest bearing financial liabilities. Interest rate risk is managed by the Company on an on-going basis
with the primary objective of limiting the extent to which interest expense could be affected by an adverse movement in
interest rates.

There are no hedging instruments to mitigate this risk.

Sensitivity Analysis

An increase/decrease of 100 basis points in interest rate at the end of the reporting period for the variable financial instruments
would increase/(decrease) profit before taxation for the year by the amounts shown below. This analysis assumes all other
variables remain constant.

Foreign currency risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of
changes in foreign exchange rates. The Company is exposed to foreign exchange risk arising from transactions i.e. import
and export of materials, recognised assets and liabilities denominated in a currency that is not the Company''s functional
currency. The Company''s foreign currency risks are identified, measured and managed at periodic intervals in accordance
with the Company''s policies.

Commodity Risk

Exposure to market risk with respect to commodity prices primarily arises from the Company''s purchases of Active
Pharmaceutical Ingredients and other direct materials, whose prices are exposed to risk of fluctuation over a period of
time. The prices of the Company''s raw materials generally fluctuate in line with commodity cycles, although the prices of
raw materials used in the Company''s active pharmaceutical ingredients business are generally more volatile. Cost of raw
materials forms the largest portion of the Company''s cost. Commodity price risk exposure is evaluated and managed through
operating procedures and sourcing policies. As of 31^st March, 2025, the Company had not entered into any material derivative
contracts to hedge exposure to fluctuations in commodity prices.

ii. Credit risk

Credit risk is the risk of financial loss to the Company if the customer or that counterparty to the financial instrument
fails to meet its contractual obligations and arises principally from the Company''s receivables from customers, loans and
investments. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the
creditworthiness of counterparty to which the Company grants credit terms in the normal course of business.

Credit risk management

The finance function of the Company assesses and manages credit risk based on internal credit rating system. Internal credit
rating is performed for each class of financial instruments with different characteristics. The Company assesses the credit
risk for each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

The risk parameters are same for all financial assets for all periods presented. The Company considers the probability of
default upon initial recognition of asset and whether there has been a significant increase in credit risk on an on-going basis
throughout each reporting period. In general, it is presumed that credit risk has significantly increased since initial recognition
if the payments are more than 30 days past due . A default on a financial asset is when the counterparty fails to make
contractual payments when they fall due. This definition of default is determined by considering the business environment in
which entity operates and other macro-economic factors.

Trade Receivables: The Company has exposure to credit risk from trade receivables on sale of pharmaceuticals products
and related services. The Company has used Expected Credit Loss (ECL) model for assessing the impairment loss. For that
purpose, the Company uses a provision matrix to compute the ECL amount. The provision matrix takes into account external
and internal risk factors and historical data of credit losses from various customers. The Company ensures concentration of
credit does not significantly impair the financial assets since the customers to whom the exposure of credit is given are well
established and reputed industries engaged in their respective field of business. The creditworthiness of customers to which
the Company grants credit in the normal course of the business is monitored regularly. The Company provides for expected
credit loss under simplified approach.

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company
manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when
due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company''s reputation.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of
funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the
business, the Company maintains flexibility in funding by maintaining availability under committed facilities. The Company''s
treasury team is responsible for liquidity, funding as well as settlement management. In addition, processes and policies
related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through
rolling forecasts on the basis of expected cash flows.

41 FAIR VALUE MEASUREMENTS

(i) Fair value hierarchy

Financial assets and Financial Liabilities measured at fair value in the Financial Statements are grouped into three Levels of
a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as
follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (prices)
or indirectly (derived from prices).

Level 3: Inputs for the asset or liability that are not based on observable market data.

43 LEASES
Company as lessee

The Company has entered into certain cancellable lease agreements mainly for office premises, land and infrastructure facilities''
which are renewable on mutual agreement with the parties. At the date of commencement of the lease, the Company recognises a
right of use asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for short-term leases
and low value leases. The Company applies the "short term lease" & "low value leases" recognition exemptions for these leases.
Rent Expenses recorded for Short term and Low value lease was INR 22.53 Lakhs (31^st March, 2024: INR 20.99 Lakhs).

44 INCOME TAX

The Company has opted for the new tax regime U/s 115BAA of the Income Tax Act from Financial Year ended 31^st March
2023. The Company has carried forward losses and unabsorbed depreciation of earlier years. Therefore, the Company has
not accounted any Income Tax on the profits earned during the year.

45 DEFERRED TAX

Deferred Tax assets arises on account of carried forward losses and unabsorbed tax depreciation. As a prudent measure
DTA is not recognised since it is not probable that future taxable profits will be available against which carried forward losses
and unabsorbed tax depreciation can be utilised.

46 CORPORATE SOCIAL RESPONSIBILITY (CSR)

(a) As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The areas for CSR
activities are promoting education, preventive healthcare, special education and employment enhancing vocation skills,
rural /nationally recognised/ Paralympic and Olympic sports, and Rural Development.

For the year ended 31^st March 2024, the Company has transferred the unspent amount to the specified funds within the the
time period for such transfer i.e. six months from the end of the Financial Year ended 31^st March 2024.

47 DISCLOSURES OF THE TRANSACTIONS WITH STRUCK OFF COMPANIES

The Company did not have any transactions with companies struck off under Section 248 of the Companies Act, 2013 or
Section 560 of Companies Act, 1956 during the financial year.

48 ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE COMPANIES ACT, 2013

(i) The Company does not have any Benami property held in its name. No proceedings have been initiated on or are
pending against the Company for holding benami property under the Prohibition of Benami Property Transactions Act,
1988 and Rules made thereunder.

(ii) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government
or any government authority.

(iii) The Company does not hold any investments in any subsidiary(ies), therefore, the provisions for compliance with the
number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies
(Restriction on number of Layers) Rules, 2017 (as amended) are not applicable.

(iv) Details of transactions of advances or loans or investments of funds (either from the borrowed funds or share premium
or any other sources or kind of funds), as prescribed to any other person(s) or entity (ies), including foreign entities
(intermediaries)

A The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the loan to or on behalf of the ultimate beneficiaries

B The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the loan on behalf of the ultimate beneficiaries

(v) The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act, 1961.

(vi) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(vii) No Scheme of Arrangements have been approved by the Competent Authority in terms of Sections 230 to 237 of the
Act, during the year.

49 The Company has foreign currency receivables as on 31^st March, 2025 of INR 120 Lakhs (31^st March 2024: INR 174 Lakhs)
which are outstanding beyond the stipulated time period permitted under the RBI Master Direction on Export of Goods and
Services vide FED Master Direction No. 16/2015-16 dated 1^st January, 2016 (as amended), issued by the Reserve Bank of
India (RBI) as of 31^st March, 2025. The management of the Company is in the process of obtaining approval for extension of
time limits for realization and also in process of receiving the payment and in regular discussion with the Customers. The
Management of the Company is confident of obtaining the approval for time extension and recovery of the amount within
such extended time period.

51 The Board of Directors of the Company, at its meeting held on 13^th August 2024, had approved the sale of assets of the
manufacturing unit of the Company located at Madhavaram, subject to regulatory approvals, which was also approved by
the shareholders at Annual General Meeting held on 25^th September 2024. Accordingly, the assets of the Madhavaram unit is
classified as "Non Current Assets Held for Sale". The management expects the sale process to be concluded in the ensuring
periods.

52 Previous year figures have been regrouped/reclassified where ever necessary, to conform to those of the current year.

53 As allowed under Schedule III of the Companies Act, 2013, Financial Statements are prepared in Lakhs and rounded off to
two decimals. The amounts / numbers below one thousands are appearing as zero.

In Terms of our Report of even date

For Brahmayya & Co. For and on behalf of the Board

Chartered Accountants Bafna Pharmaceuticals Limited

Firm Regn No. 000511S

S. Hemalatha Vinayak Dinesh Dendukuri Bafna Mahaveer Chand

Whole Time Director Whole Time Director Chief Executive Officer

DIN : 02714329 DIN : 07601309

Lokesh Vasudevan Melagiri Sridhar Mohanachandran A

Partner Chief Financial Officer Company Secretary

M.No. 222320 M.No.65827

Place: Chennai Place: Chennai

Date: 26^th May 2025 Date: 26^th May 2025

---

Mar 31, 2024

N Provisions

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period.

Provisions are reviewed and adjusted, when required, to reflect the current best estimate at the end of each reporting period.

The Company recognizes decommissioning provisions in the period in which a legal or constructive obligation is incurred. A corresponding decommissioning cost is added to the carrying amount of the associated property, plant and equipment, and it is depreciated over the estimated useful life of the asset.

O Contingent Liabilities

Contingent liability is disclosed in case of:

• A present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation;

• A present obligation arising from past events, when no reliable estimate is possible;

• A possible obligation arising from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company where the probability of outflow of resources is not remote.

P Contingent Assets

Contingent assets are not recognized but disclosed in the financial statements when an inflow of economic benefits is probable. Contingent assets are assessed continually and, if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs.

Q Fair Value Measurements

Company follows the hierarchy mentioned underneath for determining fair values of its financial instruments:

• Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities;

• Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (prices) or indirectly (derived from prices); and

• Level 3 - Inputs for the asset or liability that are not based on observable market data.

The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting dates. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm''s length basis. The fair value for these instruments is determined using Level 1 inputs.

The fair value of financial instruments that are not traded in an active market (for example, over the counter derivatives) is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is fair valued using level 2 inputs.

If one or more of the significant inputs is not based on observable market data, the instrument is fair valued using Level 3 inputs. Specific valuation techniques used to value financial instruments include:

• Quoted market prices or dealer quotes for similar instruments

• The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves

• The fair value of forward foreign exchange contracts is determined using forward exchange rates at the reporting dates, with the resulting value discounted back to present value

• Other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining financial instruments.

R Revenue Recognition

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

The Company recognizes revenue from contracts with customers based on a five-step model, such as to, identifying the contracts with a customer, identifying the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation at a point in time or over time.

The Company satisfies a performance obligation and recognizes revenue over time, if one of the following criteria is met:

• The customer simultaneously receives and consumes the benefits provided by the Company performance as the Company performs; or

• The Company''s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or

• The Company''s performance does not create an asset with an alternative use to the Company and the entity has an enforceable right to payment for performance completed to date.

For performance obligations where one of the above conditions are not met, revenue is recognized at the point in time at which the performance obligation is satisfied.

S Other Income

Interest Income

For all debt instruments measured either at amortized cost or at fair value through other comprehensive income, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset or to the amortized cost of a financial liability. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses. Interest income is included in finance income in the statement of profit and loss.

Interest income on fixed deposits is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate.

Dividend income

Dividend income is recognized at the time when right to receive the payment is established, which is generally when the shareholders approve the dividend.

T Foreign currency transactions

Functional and presentation Currency

The Financial statements are presented in Indian Rupee (?) which is also the functional and presentation currency of the Company.

Transactions and Balances

Transactions in foreign currencies are translated to the functional currency at exchange rates in effect on transaction date. At each reporting date, monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate in effect at the date of financial statement.

The translation for other non-monetary assets and liabilities are not updated from historical exchange rates unless they are carried at fair value.

U Government Grants

Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognized as income in equal amounts over the expected useful life of the related asset.

V Earnings per share

Basic earnings per share are calculated by dividing the profit attributable to owners of the Company by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take into account, the after income tax effect of interest and other financing costs associated with dilutive potential equity shares and the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

W Segment Reporting

Operating segments are identified and reported in a manner consistent with the internal financial reporting provided to the chief operating decision makers, responsible for allocating resources and assessing performance of the operating segments.

X Events after reporting date:

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the Financial Statements. Non Adjusting events after the Balance Sheet date which are material size or nature are disclosed separately in the Financial Statements.

Terms of the Borrowings

The Company has availed the Working Capital Loan, Cash Credit Facility and Term Loan from ICICI Bank Limited. The Company has availed Car Loan from Kotak Mahindra Bank. Working Capital Loans and are repayable in 48 and 60 equated monthly instalments. The loan carries interest rate of Repo Rate Spread. The loans from ICICI Bank are secured by Current Assets, Movable Fixed Assets and Immovable Fixed Assets of the Company. These loans are also guaranteed by the CVR Enterprise LLP and SRJR Lifesciences LLP (promoters of the Company). Car Loan is secured by hypothecation of the respective vehicles.

Loan received from related party is repayable after completion of one year from the end of the financial year at the option of the related party .

There is no default as on the balance sheet date in the repayment of borrowings and interest thereon.

The Company is generally regular in registering and filling of satisfaction of charges with ROC within the statutory period. However during the year ended 31st March, 2024, the Company has belated filed charge form for creation/ modification of charge against the loan obtained from ICICI Bank as on 31st March, 2024 .

The quarterly returns or statements of current assets filed by the Company with the banks or financial institutions are not in agreement with the books of accounts tabulated as follows:

*The amounts referred herein above corresponds to the claims made by the relevant statutory authorities pertaining to pre - Corporate Insolvency Resolution Process ("GRP") period. By virtue of Honourable NCLT order approving the resolution plan, the relevant claims stands extinguished. The Company has also filed writ petitions before the Honourable High Court of Madras requesting the demand to be quashed.

* The Income Tax Refund amounting to ? 45.17 Lakhs has been adjusted against the previous years demand by the Income Tax Department. The Company has filed the writ petition in Honourable High Court of Madras against such demands which has been issued by the Centralized Processing Centre ("CPC"). The management of the Company is of the view that post completion of CIRP, no such demands is payable by the Company. Based on the writ petition filed by the Company, the management is confident of obtaining a favourable outcome in this regard.

**The Company has received the demand of ? 265.42 Lakhs including penalties for the period FY 2017-18 to FY 2020-21against which a liability of ? 29.95 Lakhs has been paid by the Company. The Company has disputed 235.47 lakhs and filed the appeal with CGST Appeals. Based on the management assessment, the Company is of the opinion that said demand will be set aside and there will be no liability.

34 Segment Reporting

The Company is engaged in the business of manufacturing and trading of pharmaceuticals products. The Chief Operating Decision Maker monitors the operating results of its business for the purpose of making decisions about resource allocation and performance. Manufacturing and trading of pharmaceuticals products is considered as only segment.

36 Capital Management

The objective of the Company''s capital management structure is to ensure sufficient liquidity to support its business, to ensure the Company''s ability to continue as a going concern and provide adequate return to shareholders.

The Company monitors capital and the long term cash flow requirements including externally imposed capital requirements of the business on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face

Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company''s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

37 Financial Risk Management Objectives and Policies

Financial Risk Management Framework

Company''s principal financial liabilities comprise of borrowings, trade payables and Other financial liabilities. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include Trade receivables, loans, cash and bank balances and other financial assets.

Risk Exposures and Responses

The Company is exposed to market risk, credit risk and liquidity risk. The Board of Directors reviews policies for managing each of these risks, which are summarised below.

i) Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and borrowing.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s short term borrowing with floating interest rates. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost. The Company''s exposure to interest rate risk relates primarily to interest bearing financial liabilities. Interest rate risk is managed by the Company on an on-going basis with the primary objective of limiting the extent to which interest expense could be affected by an adverse movement in interest rates. There are no hedging instruments to mitigate this risk.

Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of changes in foreign exchange rates. The Company is exposed to foreign exchange risk arising from transactions i.e. import and export of materials, recognised assets and liabilities denominated in a currency that is not the Company''s functional currency. The Company''s foreign currency risks are identified, measured and managed at periodic intervals in accordance with the Company''s policies.

Commodity Risk

Exposure to market risk with respect to commodity prices primarily arises from the Company''s purchases of Active Pharmaceutical Ingredients and other direct materials, whose prices are exposed to risk of fluctuation over short period of time. The prices of the Company''s raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used in the Company''s active pharmaceutical ingredients business are generally more volatile. Cost of raw materials form the largest portion of the Company''s cost of revenues. Commodity price risk exposure is evaluated and managed through operating procedures and sourcing policies. As of 31^st March, 2024, the Company had not entered into any material derivative contracts to hedge exposure to fluctuations in commodity prices.

Credit risk is the risk of financial loss to the Company if the customer or that counterparty to the financial instrument fails to meet its contractual obligations and arises principally from the Company''s receivables from customers, loans and investments. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of counterparty to which the Company grants credit terms in the normal course of business.

Credit risk management

The finance function of the Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assesses the credit risk for each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

The risk parameters are same for all financial assets for all periods presented. The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an on-going basis throughout each reporting period. In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 30 days past due . A default on a financial asset is when the counterparty fails to make contractual payments when they fall due. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.

Trade Receivables: The Company has exposure to credit risk from trade receivables on sale of medicines. The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose, the Company uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and internal risk factors and historical data of credit losses from various customers. The Company ensures concentration of credit does not significantly impair the financial assets since the customers to whom the exposure of credit is taken are well established and reputed industries engaged in their respective field of business. The creditworthiness of customers to which the Company grants credit in the normal course of the business is monitored regularly. The Company provides for expected credit loss under simplified approach

iii. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company''s reputation. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. The Company''s treasury team is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through rolling forecasts on the basis of expected cash flows.

40 Leases Company as lessee

The Company has entered into certain cancellable lease agreements mainly for office premises, land and infrastructure facilities'' which are renewable on mutual agreement with the parties. At the date of commencement of the lease, the Company recognises a right of use asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for short-term leases and low value leases. The Company applies the "short term lease" & "low value leases" recognition exemptions for these leases. Rent Expenses recorded for Short term and Low value lease was ? 20.99 Lakhs (31st March 2023: 20.53 Lakhs).

41 Income Tax

The Company has opted for the new tax regime U/s 115BAA of the Income Tax Act from Financial Year ended 31^st March, 2023. The Company has carried forward losses and unabsorbed depreciation of earlier years. Therefore, the Company has not accounted any Income Tax on the profits earned during the year.

42 Deferred Tax

Deferred Tax assets arise on account of carried forward losses and unabsorbed tax depreciation. As a prudent measure DTA is not recognised since it is not probable that future taxable profits will be available against which carried forward losses and unabsorbed tax depreciation can be utilised.

43 Corporate Social Responsibility (CSR)

(a) As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the company. The areas for CSR activities are Promoting education, preventive healthcare, special education and employment enhancing vocation skills, rural /nationally recognised/ Paralympic and Olympic sports, and Rural Development. The funds were primarily allocated to a corpus and utilized throughout the year on those activities which are specified in Schedule VII of the Companies Act, 2013.

44 Disclosures of the transactions with Struck Off Companies

The Company did not have any material transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.

45 Additional Regulatory Information Required by Schedule III to the Companies Act, 2013

(i) The Company does not have any Benami property held in its name. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any government authority.

(iii) The Company does not hold any investments and hence provisions for compliance with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended) are not applicable.

(iv) Utilisation of borrowed funds and share premium

A The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

B The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(v) The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or disclosed as income during the year (previous year) in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

(vi) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(vii) No Scheme of Arrangements have been approved by the Competent Authority in terms of Sections 230 to 237 of the Act, during the year.

46 The Company''s major business is with Foreign Customers. The Company has foreign currency receivables as on 31^st March, 2024 of ? 174 Lakhs (31st March 2023: ? 203 Lakhs) which are outstanding beyond the stipulated time period permitted under the RBI Master Direction on Export of Goods and Services vide FED Master Direction No. 16/2015-16 dated 1^st January, 2016 (as amended), issued by the Reserve Bank of India (RBI) as of 31^st March, 2024. The management of the Company is in the process of obtaining approval for extension of time limits for realization and also in process of receiving the payment and in regular discussion with the Customers. The management of the Company is confident of obtaining the approval for time extension and recovery of the amount within such extended time period.

47 Disclosures required under Section 22 of MSMED Act 2006 under the Chapter on Delayed Payments to Micro, Small and Medium Enterprises

There are no Micro, Small and Medium Enterprises to whom the Company owes dues which are outstanding for more than 45 days as at 31^st March 2024. These information as required to be disclosed under Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the to the extent such parties have been identified on the information available with the Company.

48 Previous year figures have been regrouped/reclassified where ever necessary, to conform to those of the current year.

49 As allowed under Schedule III of the Companies Act, 2013, Financial Statements are prepared in lakhs and rounded off to two decimals. The amounts / numbers below one thousands are appearing as zero.

In Terms of our Report of even date For and on Behalf of the Board

_ _ , „ _ Bafna Pharmaceuticals Limited

For Brahmayya & Co.

Chartered Accountants ^{Sd/- Sd/- Sd/-}

^{S HEMALATHA} VINAYAK DINESH DENDUKURI BAFNA MAHAVEER CHAND

Firm Regn No. 000511S

^{[Whole-Time Director]} [Whole-Time Director] [Chief Executive Officer]

[DIN • 02714329]

Sd/- [DIN: 07601309]

Lokesh Vasudevan Sd/_- Sd/_-

^(Partner) MELAGIRI SRIDHAR MOHANACHANDRAN A

^M.^N°. ²²²³²⁰ [Chief Financial Officer] [Company Secretary]

M.No. 65827

Place : Coonoor Place : Chennai

Date : 29th May 2024 ^{Date : 29th Ma}y ²⁰²⁴

---

Mar 31, 2023

N Provisions

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation. Provisions are measured at the present value of management''s best estimate
of the expenditure required to settle the present obligation at the end of the reporting period.

Provisions are reviewed and adjusted, when required, to reflect the current best estimate at the end of each
reporting period.

The Company recognizes decommissioning provisions in the period in which a legal or constructive obligation
is incurred. A corresponding decommissioning cost is added to the carrying amount of the associated
property, plant and equipment, and it is depreciated over the estimated useful life of the asset.

O Contingent Liabilities

Contingent liability is disclosed in case of:

• A present obligation arising from past events, when it is not probable that an outflow of resources will
be required to settle the obligation;

• A present obligation arising from past events, when no reliable estimate is possible;

• A possible obligation arising from past events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the control of the Company where the
probability of outflow of resources is not remote.

P Contingent Assets

Contingent assets are not recognized but disclosed in the financial statements when an inflow of economic
benefits is probable. Contingent assets are assessed continually and, if it is virtually certain that an inflow of
economic benefits will arise, the asset and related income are recognised in the period in which the change
occurs.

Q Fair Value Measurements

Company follows the hierarchy mentioned underneath for determining fair values of its financial instruments:

• Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities;

• Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly (prices) or indirectly (derived from prices); and

• Level 3 - Inputs for the asset or liability that are not based on observable market data.

The fair value of financial instruments traded in active markets is based on quoted market prices at the
reporting dates. A market is regarded as active if quoted prices are readily and regularly available from an
exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent
actual and regularly occurring market transactions on an arm''s length basis. The fair value for these
instruments is determined using Level 1 inputs.

The fair value of financial instruments that are not traded in an active market (for example, over the counter
derivatives) is determined by using valuation techniques. These valuation techniques maximize the use of
observable market data where it is available and rely as little as possible on entity specific estimates. If all
significant inputs required to fair value an instrument are observable, the instrument is fair valued using level
2 inputs.

If one or more of the significant inputs is not based on observable market data, the instrument is fair valued
using Level 3 inputs. Specific valuation techniques used to value financial instruments include:

• Quoted market prices or dealer quotes for similar instruments

• The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows
based on observable yield curves

• The fair value of forward foreign exchange contracts is determined using forward exchange rates at the
reporting dates, with the resulting value discounted back to present value

• Other techniques, such as discounted cash flow analysis, are used to determine fair value for the
remaining financial instruments.

R Revenue Recognition

Revenue from contracts with customers is recognised when control of the goods or services are transferred
to the customer at an amount that reflects the consideration to which the Company expects to be entitled in
exchange for those goods or services.

The Company recognizes revenue from contracts with customers based on a five-step model, such as to,
identifying the contracts with a customer, identifying the performance obligations in the contract, determine
the transaction price, allocate the transaction price to the performance obligations in the contract and
recognize revenue when (or as) the entity satisfies a performance obligation at a point in time or over time.

The Company satisfies a performance obligation and recognizes revenue over time, if one of the following
criteria is met:

• The customer simultaneously receives and consumes the benefits provided by the Company
performance as the Company performs; or

• The Company''s performance creates or enhances an asset that the customer controls as the asset is
created or enhanced; or

• The Company''s performance does not create an asset with an alternative use to the Company and the
entity has an enforceable right to payment for performance completed to date.

For performance obligations where one of the above conditions are not met, revenue is recognized at the
point in time at which the performance obligation is satisfied.

S Other Income

Interest Income

For all debt instruments measured either at amortized cost or at fair value through other comprehensive
income, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts
the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter
period, where appropriate, to the gross carrying amount of the financial asset or to the amortized cost of a
financial liability. When calculating the effective interest rate, the Company estimates the expected cash flows
by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call
and similar options) but does not consider the expected credit losses. Interest income is included in finance
income in the statement of profit and loss.

Interest income on fixed deposits is recognized on a time proportion basis taking into account the amount
outstanding and the applicable interest rate.

Dividend income

Dividend income is recognized at the time when right to receive the payment is established, which is generally
when the shareholders approve the dividend.

T Foreign currency transactions

Functional and presentation Currency

The Financial statements are presented in Indian Rupee (?) which is also the functional and presentation
currency of the Company.

On the initial recognition, transactions in currencies other than the Company''s functional currency (foreign
currencies) are translated at exchange rates on the date of the transactions. Monetary assets and liabilities
denominated in foreign currencies at the reporting date are translated into the functional currency at
the exchange rate on that date. Exchange differences arising on the settlement of monetary items or on
translating monetary items at rates different from those at which they were translated on initial recognition
during the period or in previous period are recognised in profit or loss in the period in which they arise.

The translation for other non-monetary assets and liabilities are not updated from historical exchange rates
unless they are carried at fair value.

U Government Grants

Government grants are recognized where there is reasonable assurance that the grant will be received and
all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as
income on a systematic basis over the periods that the related costs, for which it is intended to compensate,
are expensed. When the grant relates to an asset, it is recognized as income in equal amounts over the
expected useful life of the related asset.

V Earnings per share

Basic earnings per share are calculated by dividing the profit attributable to owners of the Company by
the weighted average number of equity shares outstanding during the financial year, adjusted for bonus
elements in equity shares issued during the year and excluding treasury shares.

Diluted earnings per share adjust the figures used in the determination of basic earnings per share to
take into account, the after income tax effect of interest and other financing costs associated with dilutive
potential equity shares and the weighted average number of additional equity shares that would have been
outstanding assuming the conversion of all dilutive potential equity shares.

W Segment Reporting

Operating segments are identified and reported in a manner consistent with the internal financial reporting
provided to the chief operating decision makers, responsible for allocating resources and assessing
performance of the operating segments.

X Events after reporting date:

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end
of the reporting period, the impact of such events is adjusted within the Financial Statements. Non Adjusting
events after the Balance Sheet date which are material size or nature are disclosed separately in the Financial
Statements.

Terms of the Borrowings

The Company has availed the Working Capital Loan, Cash Credit Facility and Car Loan from ICICI Bank Limited and
Kotak Mahindra Bank. Working Capital Loans are repayable in 48 and 60 equated monthly installments. The loan
carries interest rate of Repo Rate 4.50%. Working Capital Loans and Cash Credit Facility are secured by Current
Assets, Movable Fixed Assets as primary security and Immovable Fixed Assets assets as collateral security. These
loans are also guaranteed by the CVR Enterprise LLP and SRJR Lifesciences LLP (promoters of the Company).
Car Loan is secured by hypothecation of the respective vehicles.

Loan received from related party is repayable after completion of one year from the end of the financial year at
the option of the related party.

There is no default as on the balance sheet date in the repayment of borrowings and interest thereon.

The Company is generally regular in registering and filing of charge forms with ROC within the statutory
period. However during the year ended 31^st March 2023, the Company has not filed charge form for creation/
modification of charge against the loan obtained from ICICI Bank as on 31^st March 2023.

The amounts referred herein above corresponds to the claims made by the relevant statutory authorities per¬
taining to pre - Corporate Insolvency Resolution Process ("GRP") period. By virtue of Honourable NCLT order
approving the resolution plan, the relevant claims stands extinguished. The Company has also filed writ petitions
before the Honourable High Court of Madras requesting the demand to be quashed.

The Income Tax Refund amounting to to ? 45.17 Lakhs has been adjusted against the previous years demand
by the Income Tax Department. The Company has filed the writ petition in Honourable High Court of Madras
against such demands which has been issued by the Centralized Processing Centre ("CPC"). The managemnet of
the Company is of the view that post completion of CIRP, no such demands is payable by the Company. Based
on the writ petition filed by the Company, the management is confident of obtaining a favourable outcome in
this regard.

34 Segment Reporting

The Company is engaged in the business of manufacturing and trading of pharmaceuticals products. The Chief
Operating Decision Maker monitors the operating reults of its business for the purpose of making decisions about
resource allocation and performance. Manufacturing and trading of pharmaceuticals products is considered as
only segment.

The objective of the Company''s capital management structure is to ensure sufficient liquidity to support
its business, to ensure the Company''s ability to continue as a going concern and provide adequate return to
shareholders.

The Company monitors capital and the long term cash flow requirements including externally imposed capital
requirements of the business on the basis of the carrying amount of equity less cash and cash equivalents as
presented on the face

Management assesses the Company''s capital requirements in order to maintain an efficient overall financing
structure while avoiding excessive leverage. This takes into account the subordination levels of the Company''s
various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of
changes in economic conditions and the risk characteristics of the underlying assets.

37 Financial Risk Management Objectives and Policies

Financial Risk Management Framework

Company''s principal financial liabilities comprise borrowings, trade payables and Other financial liabilities. The
main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal
financial assets include Trade receivables, loans, cash and bank balances and other financial assets.

Risk Exposures and Responses

The Company is exposed to market risk, credit risk and liquidity risk. The Board of Directors reviews policies for
managing each of these risks, which are summarised below.

i) Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in
the price of a financial instrument. The value of a financial instrument may change as a result of changes in the
interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that
affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments
including investments and deposits, foreign currency receivables, payables and borrowing.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates
relates primarily to the Company''s short term borrowing with floating interest rates. The Company constantly
monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile
and financing cost. The Company''s exposure to interest rate risk relates primarily to interest bearing financial
liabilities. Interest rate risk is managed by the Company on an on-going basis with the primary objective of
limiting the extent to which interest expense could be affected by an adverse movement in interest rates.
There are no hedging instruments to mitigate this risk.

Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate
because of changes in foreign exchange rates. The Company is exposed to foreign exchange risk arising from
transactions i.e. imports of materials, recognised assets and liabilities denominated in a currency that is not the
Company''s functional currency. The Company''s foreign currency risks are identified, measured and managed at
periodic intervals in accordance with the Company''s policies.

Commodity Risk

Exposure to market risk with respect to commodity prices primarily arises from the Company''s purchases of
Active Pharmaceutical Ingredients and other direct materials, whose prices are exposed to risk of fluctuation
over short period of time. The prices of the Company''s raw materials generally fluctuate in line with commodity
cycles, although the prices of raw materials used in the Company''s active pharmaceutical ingredients business
are generally more volatile. Cost of raw materials form the largest portion of the Company''s cost of revenues.
Commodity price risk exposure is evaluated and managed through operating procedures and sourcing policies.
As of 31^st March, 2023, the Company had not entered into any material derivative contracts to hedge exposure to
fluctuations in commodity prices.

Credit risk

Credit risk is the risk of financial loss to the Company if the customer or that counterparty to the financial
instrument fails to meet its contractual obligations and arises principally from the Company''s receivables from
customers, loans and investments. Credit risk is managed through credit approvals, establishing credit limits and
continuously monitoring the creditworthiness of counterparty to which the Company grants credit terms in the
normal course of business.

The finance function of the Company assesses and manages credit risk based on internal credit rating system.
Internal credit rating is performed for each class of financial instruments with different characteristics. The
Company assesses the credit risk for each class of financial assets based on the assumptions, inputs and factors
specific to the class of financial assets.

The risk parameters are same for all financial assets for all periods presented. The Company considers the probability
of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an
on-going basis throughout each reporting period. In general, it is presumed that credit risk has significantly
increased since initial recognition if the payments are more than 30 days past due . A default on a financial asset
is when the counterparty fails to make contractual payments when they fall due. This definition of default is
determined by considering the business environment in which entity operates and other macro-economic factors.

Trade Receivables: The Company has exposure to credit risk from trade receivables on sale of medicines. The
Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose, the
Company uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into
account external and internal risk factors and historical data of credit losses from various customers. The Company
ensures concentration of credit does not significantly impair the financial assets since the customers to whom
the exposure of credit is taken are well established and reputed industries engaged in their respective field of
business. The creditworthiness of customers to which the Company grants credit in the normal course of the
business is monitored regularly. The Company provides for expected credit loss under simplified approach

40 Leases
Company as lessee

The Company has entered into certain cancellable lease agreements mainly for office premises, land
and infrastructure facilities'' which are renewable on mutual agreement with the parties. At the date of
commencement of the lease, the Company recognises a right of use asset and a corresponding lease
liability for all lease arrangements in which it is a lessee, except for short-term leases and low value leases.
The Company applies the "short term lease" & "low value leases" recognition exemptions for these leases.
Rent Expenses recorded for Short term and Low value lease was ? 20.53 Lakhs (31^st March, 2022: ^19.20 Lakhs).

41 Income Tax

The Company has opted for the new tax regime U/s 115BAA of the Income Tax Act from Financial Year ended 31^st
March, 2023. The Company has carried forward losses and unabsorbed depreciation of earlier years. Therefore, the
Company has not accounted any Income Tax on the profits earned during the year.

42 Deferred Tax

Deferred Tax assets arise on account of carried forward losses and unabsorbed tax depreciation. As a prudent
measure DTA is not recognised since it is not probable that future taxable profits will be available against which
carried forward losses and unabsorbed tax depreciation can be utilised.

43 Corporate Social Responsibility

The Company has met the criteria as specified under sub-section (1) of section 135 of the Act read with the
Companies (Corporate Social Responsibility Policy) Rules, 2014, during the year ended 31^st March, 2023 however,
in the absence of average net profits in the immediately three preceding years, there is no requirement for the
Company to spend any amount under sub-section (5) of section 135 of the Act for the year ended 31^st March 2023.
Gross amount required to be spent by the Company during the year is ? NIL (31^st March, 2022: ? NIL).

44 Disclosures of the transactions with Struck Off Companies

The Company did not have any material transactions with companies struck off under Section 248 of the Companies
Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.

45 Additional Regulatory Information Required by Schedule III to the Companies Act, 2013

(i) The Company does not have any Benami property held in its name. No proceedings have been initiated
on or are pending against the Company for holding benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or
government or any government authority.

(iii) The Company does not hold any investments and hence provisions for compliance with the number of
layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number
of Layers) Rules, 2017 (as amended) are not applicable.

(iv) Utilisation of borrowed funds and share premium

A The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

B The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(v) The Company does not have any undisclosed income which is not recorded in the books of account that
has been surrendered or disclosed as income during the year (previous year) in the tax assessments under
the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act,
1961)

(vi) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(vii) No Scheme of Arrangements have been approved by the Competent Authority in terms of Sections 230 to
237 of the Act, during the year.

46 The Company''s major business is with Foreign Customers. The Company has foreign currency receivables as
on 31^st March, 2023 of ? 203 Lakhs which are outstanding beyond the stipulated time period permitted under
the RBI Master Direction on Export of Goods and Services vide FED Master Direction No. 16/2015-16 dated 1^st
January, 2016 (as amended), issued by the Reserve Bank of India (RBI) as of 31^st March, 2023. The management
of the Company is in the process of obtaining approval for extension of time limits for realization and also in
process of receiving the payment and in regular discussion with the Customers. The management of the Company
is confident of obtaining the approval for time extension and recovery of the amount within such extended time
period.

47 Consequent to the revival of the Company through the Corporate Insolvency resolution process, the management
is in the process of strengthening its Corporate Governance Practices including regularizing the requirement to
maintain minimum number of directors and continued association of the full time company secretary. Active
efforts are being undertaken to ensure effective compliance.

48 Disclosures required under Section 22 of MSMED Act 2006 under the Chapter on Delayed Payments to Micro,
Small and Medium Enterprises

There are no Micro, Small and Medium Enterprises to whom the Company owes dues which are outstanding for
more than 45 days as at 31^st March 2023. These information as required to be disclosed under Micro, Small and
Medium Enterprises Development Act, 2006 has been determined to the to the extent such parties have been
identified on the information available with the Company.

49 Previous year figures have been regrouped/reclassified where ever necessary, to conform to those of the current
year.

50 As allowed under Schedule III of the Companies Act, 2013, Financial Statements are prepared in lakhs and rounded
off to two decimals. The amounts / numbers below five thousands are appearing as zero.

In Terms of our Report of even date For and on Behalf of the Board

, Bafna Pharmaceuticals Limited

For Brahmayya & Co.

Chartered Accountants ^{Sd/- Sd/-}

S HEMALATHA BAFNA MAHAVEER CHAND

⁹ . ^[Chairp^erson & ^{Executive Director]} [Chief Executive Officer]

_Sd/_- [DIN : 02714329]

Lokesh Vasudevan Sd/- Sd/-

(Partner) MELAGIRI SRIDHAR VISHNU VASUDEVA KUPPA

M.N_o. 222320 [Chief Financial Officer] [Company Secretary]

M.No.57108

Place : Gurugram Place : Chennai

Date : 27th May 2023 Date : 27th May 2023

---

Mar 31, 2019

14.1 Secured by First Charge on entire Current Assets and fixed Assets acquired out of Term Loan from SBI.

14.2 Second pari passu Charge on the entire Fixed assets with Development Credit Bank, DBS Bank and Bank of Ceylon. except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

14.3 Personal guarantee of Promoter Directors- Mr. Bafna Mahaveer chand - Chairman and Managing Director and Mr.Paras Bafna- Whole Time Director.

14.4 State Bank of India has declared the account as NPA on 28.01.2017 and Hence the same is classified under Long Term.

DBS BANK LIMITED

14.5 DBS has converted it into WCTL.

14.6 First Pari Passu Charge on the entire current assets along with other MBA Banks.

14.7 Second pari passu Charge on the entire Fixed assets except Fixed Assets acquired out of Term Loan Sanctioned.

SECURITIES OFFERED

INDUSTRIAL DEVELOPMENT BANK OF INDIA

17.1 First Pari Passu Charge on the entire current assets along with other MBA Banks

17.2 Second pari passu Charge on the entire Fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

17.3 Personal guarantee of Promoter Directors- Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

DEVELOPMENT CREDIT BANK

17.4 First Pari Passu Charge on the entire current assets along with other MBA Banks

17.5 Second pari passu Charge on the entire Fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India

BANK OF CEYLON

17.6 First Pari Passu Charge on the entire current assets along with other MBA Banks

17.7 Second pari passu Charge on the entire Fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

18 TRADE PAYABLE

DUES TO MICRO AND SMALL ENTERPRISES (as per intimation received from vendor)

a. Principal and interest amount remaining unpaid.

b. Interest due thereon remaining unpaid.

c. Interest paid by the Company in terms of Sections 16 of the Micro,Small and Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day.

d. Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the period) but without adding interest specified under the Micro, Small and Medium Enterprise Act, 2006.

e. Interest accrued and remaining unpaid.

f. Interest remaining due and payable even in succeeding years, until such date when the interest dues as above are actually paid to this mall enterprises.

a. There no amounts due for payment to the Investor Education and Protection fund under section 125 of companies act 125 of the Companies Act 2013 as at 31st March 2019 (2018 : Nil).

30 RELATED PARTY DISCLOSURES

As per Indian Accounting Standard 24, the disclosures of transactions with the related Parties are given below:

List of Related Parties where control exists and related Parties with whom transactions have taken place and relationship

30.1 Name of the related Party

a) Mr. BAFNA MAHAVEER CHAND

b) Mr. PARAS BAFNA

b) Mrs. CHETNA BAFNA

c) Mr. NAVEEN BAFNA

30.2 Directors'' Interest

a) BAFNA LIFESTYLES REMEDIES LIMITED c ) BHANSILAL & CO (HUF)

30.3 The Directors of the Subsdiary Company Ms. Hemalatha and Ms. Sabitha are the employee of the Company

b) Balances under Trade Payables, debtors, loans and advances some of them remain unconfirmed.

c) Advances given to suppliers for supply of materials and others remain unconfirmed. It was explained that supply will be made in the ensuing year.

d) Loans and advances include outstanding balances of deposits with Corporate bodies is given below

e) The Company had granted Loan to Subsidiary M/s. BAFNA LIFESTYLES REMEDIES LIMITED (BLRL) during the previous years to the extent of Rs. 1222.93 Lakhs. Subsequent to the discontinuing operations by the subsdiary M/s. BLRL sold its properties and old machines and repaid Rs. 297.95 Lakhs to M/s. BAFNA PHARMACEUTICALS LIMITED during the Current Financial year 2018-2019. The balance of Rs. 924 .98 Lakhs could not be paid by the Subsdiary. Hence, the same had been written off during the current financial Year.

f) The Fixed deposit of sum of Rs. 257.37 (Rs. in Lakhs) (Previous Year Rs. 245.00 (Rs. In Lakhs) ) lying with BOC, IDBI, ICICI are under lien against Bank Gaurantee Margin, LC Margin Money.

g) In view of the Stay of the implementation of the approved Resolution Plan by the NCLAT, New Delhi. No Restatements of Assets and Liabilities (As per Approved Resolution Plan) in the financial statements is considered during the financial year 2018-19. The process of restructuring of fair values of assets and liabilities detailed in the Resolution Plan and restatement thereof in the accounts is being deferred to be carried out in the ensuing Financial Year.

Corporate Information, Significant Accounting Policies & Notes to the Financial Statements A. Corporate information

BAFNA PHARMACEUTICALS LIMITED (''BPL'' or ''the Company'') is a public limited company domiciled and incorporated in India having its registered office at No.299, ThambuChetty street, Chennai - 600 001.

The Company''s shares are listed and traded on Stock exchanges in India. the Company is engaged in the business of Manufacturing of Pharmaceuticals.

B. Significant Accounting Policies

1 Basis of preparation

a. The Ministry of Corporate affairs (''the MCA''), Government of India in exercise of the powers conferred by Section 133 read with Section 469 of the Companies act, 2013 (the ''act'') and sub-section 1 of Section 210a of the Companies act, 1956 (''the erstwhile act'') in consultation with national advisory Committee on accounting standards vide G.S.R. 111(E) dated 15th February, 2015 notified rules called Companies (Indian Accounting Standard) Rules, 2015 effective April 1, 2015. The MCA wide notification GSR 111(E) dated March 30, 2016 issued certain amendments to IND AS vide Companies (Indian accounting Standards) amendment rules 2016.

The MCA vide notification GSR 404(E) dated April 6, 2016 introduced amendments to Schedule III of the Act, requiring companies to prepare the financial statements in compliance with Companies (Indian Accounting Standards) rules, 2015.

The Company which was falling under the Mandatory adoption (Phase II) for listed companies with net worth less than Rs 500 crores (based on audited standalone statements) vide its Board resolution dated

10.11.2017 resolved to adopt Ind AS for the first time in preparation of financial statements for the year ended march 31, 2018, and had adopted the same.

The other amendments to Ind AS notified by the Companies (Indian Accounting Standards) Amendment Rules, 2018 and Companies (Indian Accounting Standards) Second Amendment Rules, 2018 that apply from 1 April 2018 and that are unrelated to the adoption of Ind AS 115 are primarily clarifications. The Company has prepared its financial statements in compliance with Companies (Indian Accounting Standards) rules and the above amendments as well. The Ministry of Corporate Affairs amended Schedule III on 11 October 2018 notifying certain additional presentation and disclosure requirements such as presentation of trade payables (current/non-current both) on face of the balance sheet as (a) total outstanding dues of micro and small enterprises; and (b) total outstanding dues other than micro and small enterprises

The comparative figures in the Balance Sheet as at March 31, 2019 and that of the previous period and Statement of Profit and Loss and Statement of Cash flow for the same periods have been presented.

b. The financial statements of the Company have been prepared and presented in accordance with INDAS principles, however items of current assets and Liabilities have not been measured at fair values on account of reasons stated in (3) below under Basis of Measurement Management evaluates all the applicable accounting standards on going concern basis.

Major items of Current Assets namely, Receivables outstanding for over one year and Advances to suppliers which are long outstanding and carried in the booksare yet to be tested for recovery or impairment as per principles underlined in IND AS 36 and hence, not restated at fair values in the accounts in accordance with IND AS 133.

With regard to Current liabilities, the balances of Sundry creditors and others are subject to confirmation, and these also have-not been restated at fair values in accordance with IND AS 133.

c. All assets and liabilities have been classified as current or non-current as per the company''s normal operating cycle. Based on the nature of products and services and the time between the acquisition of assets for processing and their realisation in cash and cash equivalent, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification ofassets and liabilities except for Receivables.

2 Statement of Compliance with ind AS

The Financial Statements comprising Balance Sheet for three periods, Statement of Profit and Loss, Statement of Changes in equity, Statement of Cash flow together with notes for two periods have been prepared in accordance with Ind AS as notified [subject to Clause 1 (b) above] above duly approved by the Board of Directors at its meeting held on 27^th May 2019

The Company adopted Ind AS for the first time in preparation of financial statements for the year ended march 31, 2018.

---

Mar 31, 2016

Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the final statement.

u. Cash and cash equivalents

Cash and cash equivalents for the purpose of cash flow statement comprises cash at bank and in hand and short-term investments with an original maturity of three months or less.

v. Research and Development Expenditure

Capital Expenditure is included in Fixed Assets & Capital Work in Progress and depreciation is provided at the respective applicable rates.

Revenue expenditure is charged off in the year in which they are incurred and are included with the respective nature of account heads in the profit and loss account statement.

STATE BANK OF INDIA

1 Secured by First Charge on the entire current assets & fixed assets acquired out of Term from SBI.

2 Second Pari passu charges on the entire fixed assets with Development Credit Bank, DBS Bank and Bank of Ceylon except Fixed Assets acquired out of Term Loan sanctioned by State Bank of India.

3 Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

ADITYA BIRLA FINANCE LTD

4 Secured by the Personal Property of the Promoter Shri Bafna Mahaveer Chand situated No 299, Thambu Chetty Street, Chennai 600001

5 Secured by the Pledge of 8,45,000 Shares held in Strides Health Care Limited by Bafna Pharmaceuticals Limited.

6 Secured by the Factory premises of M/s BAFNA LIFESTYLES REMEDIES LTD - Subsidiary of Bafna Pharmaceuticals Limited.

SECURITIES OFFERED STATE BANK OF INDIA

7 First Charge on the entire current assets on pari passu basis with all the MBA Banks

8 Second pari passu Charge on the entire fixed assets with IDBI, Development Credit Bank, Development Bank of Singapore and Bank of Ceylon, except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

9 Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

INDUSTRIAL DEVELOPMENT BANK OF INDIA

10. First Pari Passu Charge on the entire current assets along with other MBA Banks

11. Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

12. Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

DEVELOPMENT BANK OF SINGAPORE

13. First Pari Passu Charge on the entire current assets along with other MBA Banks

14. Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

DEVELOPMENT CREDIT BANK

15. First Pari Passu Charge on the entire current assets along with other MBA Banks

16. Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India

BANK OF CEYLON

17. First Pari Passu Charge on the entire current assets along with other MBA Banks

18. Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

19 RELATED PARTY DISCLOSURES

As per Accounting Standard 18, the disclosures of transactions with the related Parties are given below:

List of Related Parties where control exists and related Parties with whom transactions have taken place and relationship. The necessary approvals were obtained in the respective Board meetings of the Company. The terms of contracts or arrangements or transactions were at arm''s length basis.

20. Name of the related Party

a) Mr. BAFNA MAHAVEER CHAND

b) Mr. PARAS BAFNA

c) Mrs. CHETNA BAFNA

d) Mr. NAVEEN BAFNA

21. Directors interest

a) BAFNA LIFESTYLES REMEDIES LIMITED

b) BHANSILAL & CO (HUF)

22. CENVAT

Cenvat Credit is reckoned for the material, Capital Goods, stores and consumables purchased and entered into the factory Premises.

23 GENERAL

a) Tax deducted at Source from the payment to contractors, professional charges and salaries have been generally delayed in depositing. As on 31^st March 2016 Rs.4, 144.09(''000)

b) Balances under Trade Payables, debtors, loans and advances are subject to confirmation.

c) Advances given to suppliers for supply of materials and others remain unconfirmed. It was explained that supply will be made in the ensuing year

d) Loans and advances include outstanding balances of deposits with Corporate bodies is given below

The Fixed deposit of sum of Rs. 25368.36 (''000) (Previous Year Rs. 22888.58 (''000)) lying with State bank of India are under lien against Bank Guarantee Margin, LC Margin Money and Loan against Deposit

e) Margin Money and loan against Deposit.

The New Schedule II of the Companies Act, 2013 become applicable during the year 2014-15 to the Company and hence previous figures have been reclassified, regrouped and re-arranged wherever necessary.

---

Mar 31, 2015

1. Corporate Information

1. Bafna Pharmaceuticals Limited (The Company) is a public limited Company domiciled in India and incorporated under the provisions of the Companies Act 1956.Its Shares are listed in Bombay Stock Exchange and National Stock Exchange in India. The Company is engaged in the manufacture of drugs and medicines . The Company has also got an excellent Research and Development Facility for life saving drugs. The Company caters to both domestic and international markets.

2. The financial statements have been prepared in accordance with generally accepted accounting in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the Accounting Standards as notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial Statements have been prepared under the historical cost convention on an accrual basis except in case of Land (freehold and leasehold).

3. SECURITIES OFFERED

STATE BANK OF INDIA

(a)Secured by First Charge on the entire current assets & fixed assets acquired out of Term from SBI.

(b)Second Pari passu charges on the entire fixed assets with Development Credit Bank, DBS Bank and Bank of Ceylon except Fixed Assets acquired out of Term Loan sanctioned by State Bank of India.

(c)Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

4. SHRIRAM HOUSING FINANCE LTD

Secured by Mortgage of Personal Property situated No 299, Thambu Chetty Street, Chennai 600001 of the CMD BAFNA MAHAVEER CHAND.

5. SHRIRAM CITY UNIION FINANCE LTD

Secured by Mortgage of Personal Property situated No 299, Thambu Chetty Street, Chennai 600001 of the CMD BAFNA MAHAVEER CHAND and pledge of 1076666 shares of M/s Strides Health Care Pvt Limited.

6. SECURITIES OFFERED STATE BANK OF INDIA

(a)First Charge on the entire current assets on pari passu basis with all the MBA Banks

(b)Second pari passu Charge on the entire fixed assets with IDBI, Development Credit Bank, Development Bank of Singapore and Bank of Ceylon, except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

(c)Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

7. INDUSTRIAL DEVELOPMENT BANK OF INDIA

(a)First Pari Passu Charge on the entire current assets along with other MBA Banks

(b)Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

(c) Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

8. DEVELOPMENT BANK OF SINGAPORE

(a) First Pari Passu Charge on the entire current assets along with other MBA Banks

(b) Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

9. DEVELOPMENT CREDIT BANK

(a) First Pari Passu Charge on the entire current assets along with other MBA Banks

(b) Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India

10. BANK OF CEYLON

(a) First Pari Passu Charge on the entire current assets along with other MBA Banks

(b) Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

11. FOREIGN CURRENCY TRANSACTIONS

a) Income of foreign currency Transaction is recorded at the rate of exchange prevailing on the date, when the relevant transaction has taken place. Realized gains or losses on the exchange are recognized in the Profit and loss account.

12. RELATED PARTY DISCLOSURES

As per Accounting Standard 18, the disclosures of transactions with the related Parties are given below:

List of Related Parties where control exists and related Parties with whom transactions have taken place and relationship. The necessary approvals were obtained in the respective Board meetings of the Company. The terms of contracts or arrangements or transactions were at arm's length basis.

13. Name of the related Party

a) Mr. BAFNA MAHAVEER CHAND

b) Mr. PARAS BAFNA

c) Mrs. CHETNA BAFNA

d) Mr. NAVEEN BAFNA

14. Directors interest

a) BAFNA LIFESTYLES REMEDIES LIMITED

b) BHANSILAL & CO (HUF)

13. CONTINGENT LIABILITIES NOT PROVIDED FOR

(Rs. in '000)

Particulars As at 31st As at 31st March 2015 March 2014

a) In respect of Letter of Credit and Bank Guarantee 28,624.70 95,414.32

b) Bonds have been executed in favour of Customs Authorities for 87,000.00 87,000.00 the purchase of materials and capital goods without payment of duty

15. CENVAT

Cenvat Credit is reckoned for the material, Capital Goods, stores and consumables purchased and entered into the factory Premises.

16. GENERAL

a) Tax deducted at Source from the payment to contractors, professional charges and salaries have been deposited in time except in few cases.

b) Balances under Trade Payables, debtors, loans and advances are subject to confirmation.

c) Advances given to suppliers for supply of materials and others remain unconfirmed. It was explained that supply will be made in the ensuing year

e) Margin Money and loan against Deposit.

The New Schedule II of the Companies Act, 2013 become applicable during the year 2014-15 to the Company and hence previous figures have been reclassified, regrouped and re-arranged wherever necessary.

17. During the year, Pursuant to the notification of the PART C of schedule II to the Companies Act, 2013 with effect from April 2014, the Company has revised the estimated useful life of tits assets with those specified in schedule II. Pursuant to the transition provision prescribed in Schedule II to the Companies Act,2013, the Company has fully depreciated the carrying value of assets, net of residual value, where the remaining useful life of the asset was determined to be NIL as on 1st August 2014 and has adjusted an amount of Rs. 32,550.95('000) against retained earnings.

---

Mar 31, 2014

Corporate Information

Bafna Pharmaceuticals Limited (The Company) is a public limited Company domiciled in India and incorporated under the provisions of the Companies Act 1956. Its Shares are listed in Bombay Stock Exchange and National Stock Exchange in India. The Company is engaged in the manufacture of drugs and medicines and selling a reputed brand namely RARICAP. The Company has also got an excellent Research and Development Facility for life saving drugs. The Company caters to both domestic and international markets.

Basis of Preparation of Financial Statements

The financial statement are prepared under historical cost conversion, except for certain fixed assets which are revalued, in accordance with the generally accepted accounting principles in Indian and the provisions of the Companies Act, 1956.

1. SHARE CAPITAL

1.1 9,00,000 Shares out of the issued, subscribed and paid up share capital were allotted as a Preferential allotment on 13-01-2012 at a premium of Rs. 40/- per share.

1.2 The Company allotted 25,00,000 share warrants @ Rs. 50/- Per Share on 13.01.2012, the same was cancelled for Non- receipt of balance money.

1.3 15,00,000 shares out the issued, subscribed and paid up share capital were allotted as a preferential allotment on 17.03.2011 at a premium of Rs. 37.30 per share.

1.4 The company has allotted 23,18,000 share warrants @ Rs. 47.30 per share warrant on 17.03.2011, out of the 23,18,000 warrants allotted on 17.03.2011, 1,25,000 was allotted on 14.08.2012 and 1,50,000 Shares was allotted on 15.09.2012 pursuant to conversion of warrants, balance warrants were cancelled for Non-receipt of Balance Money.

1.5 54,29,014 Shares out of the issued, subscribed and paid up share capital were allotted as a bonus shares by capitalization of General Reserves.

1.6 1,00,000 shares out of the issued, subscribed and paid-up share capital were issued as a fully paid up shares pursuant to an agreement without payment being received in cash.

2 EQUITY SHARE WARRANT

2.1 Out of the 2500000 share warrants issued on 13.01.2012, the Company has cancelled 25,00,000 shares warrants for non receipt of balance money and the same has been transferred to Capital Reserve under the head Share forfeiture account.

3 OTHER LONGTERM BORROWING

SECURITIES OFFERED

3.1.1 First Charge on the entire current assets on pari passu basis with Export Import Bank of India.

3.1.2 First Charge on the entire fixed assets on Pari Passu basis with Export Import Bank of India except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India

3.1.3 Second pari passu Charge on the entire fixed assets with Development Credit Bank, Development Bank of Singapore and Bank of Ceylon except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

3.1.4 Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

EXPORT- IMPORT BANK OF INDIA

3.1.5 Charge on Brand RARICAP

3.1.6 First Charge on the entire fixed assets on Pari Passu basis with Export Import Bank of India except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

3.1.6 Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna - Whole Time Director.

SUNDARAM BNP PARIBAS HOME FINANCE LTD

3.1.7 Personal property of the CMD - Mr. Bafna Mahaveer Chand

4 SHORT TERM BORROWINGS

SECURITIES OFFERED

STATE BANK OF INDIA

4.1.1 First Charge on the entire current assets on pari passu basis with all the MBA Banks

4.1.2 First Charge on the entire fixed assets on Pari Passu basis with Export Import Bank of India except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

4.1.3 Second pari passu Charge on the entire fixed assets with IDBI, Development Credit Bank, Development Bank of Singapore and Bank of Ceylon, except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

4.1.4 Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

INDUSTRIAL DEVELOPMENT BANK OF INDIA

4.1.5 First Pari Passu Charge on the entire current assets along with other MBA Banks

4.1.6 Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

4.1.7 Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

DEVELOPMENT BANK OF SINGAPORE

4.1.8 First Pari Passu Charge on the entire current assets along with other MBA Banks

4.1.9 Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

DEVELOPMENT CREDIT BANK

4.1.10 First Pari Passu Charge on the entire current assets along with other MBA Banks

4.1.11 Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

BANK OF CEYLON

4.1.12 First Pari Passu Charge on the entire current assets along with other MBA Banks

4.1.12 Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

5 FOREIGN CURRENCY TRANSACTIONS

a) Income of foreign currency Transaction is recorded at the rate of exchange prevailing on the date, when the relevant transaction has taken place. Realized gains or losses on the exchange are recognized in the Profit and loss account.

6 RELATED PARTY DISCLOSURES

As per Accounting Standard 18, the disclosures of transactions with the related Parties are given below: List of Related Parties where control exists and related Parties with whom transactions have taken place and relationship

7 Name of the related Party

a) Mr. BAFNA MAHAVEER CHAND

b) Mr. PARAS BAFNA

c) Mrs. CHETNA BAFNA

d) Mr. NAVEEN BAFNA

8 Directors interest

a) BAFNA LIFESTYLES REMEDIES LIMITED

b) BAFNA LIFELINE PRIVATE LIMITED

c) BHANSILAL & CO (HUF)

9 CONTINGENT LIABILITIES NOT PROVIDED FOR (Rs. in ''000)

Particulars As at 31st As at 31st March 2014 March 2013

a) In respect of Letter of Credit and Bank Guarantee 95,414.32 53,726.08

b) Bonds have been executed in favour of Customs Authorities for the purchase of materials and capital goods without payment of duty 87,000.00 87,000.00

10 CENVAT

Cenvat Credit is reckoned for the material, Capital Goods, stores and consumables purchased and entered into the factory Premises.

11 GENERAL

a) Tax deducted at Source from the payment to contractors, professional charges and salaries have been deposited in time except in few cases.

b) Balances under Trade Payables, debtors, loans and advances are subject to confirmation.

c) Advances given to suppliers for supply of materials and others remain unconfirmed. It was explained that supply will be made in the ensuing year

d) The Fixed deposit of sum of Rs. 23388.23 (''000) (Previous Year Rs. 19620.53 (''000)) lying with State bank of India are under lien against Bank Guarantee Margin, LC Margin Money and Loan against Deposit

e) The Revised schedule VI of the companies Act 1956 become applicable during the year 2011-12 to the Company and hence Previous Years figures have been reclassified, regrouped and re-arranged wherever necessary.

12 The Ministry of corporate affairs, Government of India, vide General Circular No : 2 and 3 dated 8th February 2011 and 21st February 2011 respectively, has granted a general exemption from Compliance of Section 212 of the Companies Act 1956, subject to fulfillment of conditions stipulated in the circular. The company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the consolidated Financial Statements.

---

Mar 31, 2013

1. Corporate Information

Bafna Pharmaceuticals Limited (The Company) is a public limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its Shares are listed in BSE and NSE in India. The Company is engaged in the manufacture of drugs and medicines and selling a reputed brand namely RARICAP. The Company has also got an excellent Research and Development Facility for life saving drugs. The Company caters to both domestic and international markets.

2. Basis of Preparation of Financial Statements

The financial statement are prepared under historical cost conversion, except for certain fixed assets which are revalued, in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

3.1 FOREIGN CURRENCY TRANSACTIONS

a) Income of foreign currency Transaction is recorded at the rate of exchange prevailing on the date, when the relevant transaction has taken place. Realized gains or losses on the exchange are recognized in the Profit and loss account.

4 RELATED PARTY DISCLOSURES

As per Accounting Standard 18, the disclosures of transactions with the related Parties are given below: List of Related Parties where control exists and related Parties with whom transactions have taken place and relationship

5.1 Name of the related Party

a) Mr. BAFNA MAHAVEER CHAND

b) Mr. PARAS BAFNA

c) Mrs. CHETNA BAFNA

d) Mr. NAVEEN BAFNA

5.2 Directors interest

a) BAFNA LIFESTYLES REMEDIES LIMITED

b) BAFNA LIFELINE PRIVATE LIMITED

c) BHANSILAL & CO (HUF)

7 CENVAT

Cenvat Credit is reckoned for the material, Capital Goods, stores and consumables purchased and entered into the factory Premises.

8 GENERAL

a) Tax deducted at Source from the payment to contractors, professional charges and salaries have been deposited in time.

b) Balances under Trade Payables, debtors, loans and advances are subject to confirmation.

c) Advances given to suppliers for supply of materials and others remain unconfirmed. It was explained that supply will be made in the ensuing year

d) Loans and advances include outstanding balances of deposits with Corporate bodies is given below

e) The Fixed deposit of sum of Rs. 19,620.53 (''000) (Previous Year Rs. 21,288.55 (''000)) lying with State bank of India are under lien against Bank Guarantee Margin, LC Margin Money and Loan against Deposit

f) The Revised schedule VI of the Companies Act, 1956 become applicable during the year 2011-12 to the Company and hence previous Years figures have been reclassified, regrouped and re-arranged wherever necessary.

9 The Ministry of corporate affairs, Government of India, vide General Circular No: 2 and 3 dated 8th February 2011 and 21st February 2011 respectively, has granted a general exemption from Compliance of Section 212 of the Companies Act 1956, subject to fulfillment of conditions stipulated in the circular. The company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the consolidated Financial Statements.

---

Mar 31, 2012

1. Corporate Information

Bafna Pharmaceuticals Limited (The Company) is a public limited Company domiciled in India and incorporated under the provisions of the Companies Act 1956. Its Shares are listed in Bombay Stock Exchange in India. The Company is engaged in the manufacture of drugs and medicines and selling a reputed brand namely RARICAP. The Company has also got an excellent Research and Development Facility for life saving drugs. The Company caters to both domestic and international markets.

2. Basis of Preparation of Financial Statements

The financial statement are prepared under historical cost conversion, except for certain fixed assets which are revalued, in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

3.1 9,00,000 Shares out of the issued, subscribed and paid up share capital were allotted as a Preferential allotment on 13.01.2012 at a premium of Rs. 40/- per share. Pending listing approval.

3.2 15,00,000 shares out of the issued, subscribed and paid up share capital were allotted as Preferential allotment on 17.03.2011 at a premium of Rs.37.30/- per share.

3.3 54,29,014 Shares out of the issued, subscribed and paid up share capital were allotted as a bonus shares by capitalisation of General Reserves.

3.4 1,00,000 shares out of the issued, subscribed and paid-up share capital were issued as a fully paid up shares pursuant to an agreement without payment being received in cash.

4.1 The Company has raised money by issuing Equity share warrant to the extent of 25,00,000 share warrants @ Rs.50/- per Warrant out of which 25% upfront money has been received during the year.

5.1.1 First Charge on the entire current assets as paripassu basis with Industrial Development Bank of India and Development Bank of Singapore.

5.1.2 First Charge on the entire Fixed assets created/ proposed to be acquired out of FCRNB and Term Loan.

5.1.3 Personally guaranteed by Directors Mr. Bafna Mahaveer Chand and Mr. Paras Bafna INDUSTRIAL DEVELOPMENT BANK OF INDIA

5.1.4 First Paripassu Charge on the entire current assets

5.1.5 Personally guaranteed by Directors Mr. Bafna Mahaveer Chand and Mr. Paras Bafna EXPORT- IMPORT BANK OF INDIA

5.1.6 Exclusive charge on the Brand RARICAP

5.1.7 First paripassu charge on the entire movable and immovable fixed assets both present and future DEVELOPMENT BANK OF SINGAPORE

5.1.8 First Paripassu Charge on the entire current assets along with other Working Capital Bankers in MBA

5.1.9 Second Paripassu charge on the entire fixed assets of the company.

6.1.1 First Charge on the entire current assets as paripassu basis with Industrial Development Bank of India and Development Bank of Singapore.

6.1.2 First Charge on the entire Fixed assets created/ proposed to be acquired out of Term Loan.

6.1.3 Personally guaranteed by Directors Mr. Bafna Mahaveer Chand and Mr. Paras Bafna INDUSTRIAL DEVELOPMENT BANK OF INDIA

6.1.4 First Paripassu Charge on the entire current assets

6.1.5 Personally guaranteed by Directors Mr. Bafna Mahaveer Chand and Mr. Paras Bafna

6.1.6 Second charge on the Brand RARICAP

6.1.7 First paripassu charge on the entire movable and immovable fixed assets both present and future DEVELOPMENT BANK OF SINGAPORE

6.1.8 First Paripassu Charge on the entire current assets along with other Working Capital Bankers in MBA

6.1.9 Second Paripassu charge on the entire fixed assets of the company.

7.1 FOREIGN CURRENCY TRANSACTIONS

a) Income of foreign currency Transaction is recorded at the rate of exchange prevailing on the date, when the relevant transaction has taken place. Realized gains or losses on the exchange are recognized in the Profit and loss account.

Rs. in 'Laks'

8 CONTINGENT LIABILITIES NOT PROVIDED FOR As at 31st As at 31st March 2012 March 2011

a) In respect of Letter of Credit and Bank Guarantee 60,080.02 62,212.56

b) Bonds have been executed in favour of Customs Authorities 77,000.00 57,000.00

for the purchase of materials and capital goods without payment of duty

9 RELATED PARTY DISCLOSURES

As per Accounting Standard 18, the disclosures of transactions with the related Parties are given below:

List of Related Parties where control exists and related Parties with whom transactions have taken place and relationship

9.1 Name of the related Party

a) Mr. BAFNA MAHAVEER CHAND

b) Mr. PARAS BAFNA

c) Mrs. CHETNA BAFNA

d) Mr. NAVEEN BAFNA

9.2 Directors' Interest

a) BAFNA LIFESTYLES REMEDIES LIMITED

b) BAFNA LIFELINE PRIVATE LIMITED c ) BHANSILAL & CO (HUF)

10 CENVAT

CENVAT Credit is reckoned for the material, Capital Goods, stores and consumables purchased and entered into the factory Premises

11 GENERAL

a) Tax deducted at Source from the payment to contractors, professional charges and salaries have been deposited in time.

b) Balances under Trade Payables, debtors, loans and advances are subject to confirmation.

c) Advances given to suppliers for supply of materials and others remain unconfirmed. It was explained that supply will be made in the ensuing year

d) Loans and advances include outstanding balances of deposits with Corporate bodies is given below

e) The Fixed deposit of sum of Rs. 21,288.55 ( Rs.33,024.31) lying with State bank of India are under lien against Bank Guarantee Margin, LC Margin Money and Loan against Deposit

f) The Company has raised Rs.76,250 ('000) through preferential allotment and deployed Rs.412.50 ('000')for Expansion activities of the Marketing Division of RARICAP in various

12 The Ministry of Corporate Affairs, Government of India, vide General Circular No: 2 and 3 dated 8th February 2011 and 21st February 2011 respectively, has granted a general exemption from Compliance of Section 212 of the Companies Act 1956, subject to fulfilment of conditions stipulated in the circular. The company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the consolidated Financial Statements.

---

Mar 31, 2011

1. CONTINGENT LIABILITIES AND PROVIDED FOR:

a) In respect of Letter of Credit and Bank Guarantee Rs.6,22,12,563/-( previous year Rs.3,15,77,447 )

b) Bonds have been executed in favour of customs authorities for Rs.5,70,00,000/- for the purchase of materials and capital goods without payment of duty ( previous year 4,20,00,000/-).

2. RELATED PARTY DISCLOSURES:

I ) List of Directors

Mr.Bafna Mahaveer Chand

Mr.Paras Bafna

Mr. Sunil Bafna II) Directors' Interest

1. Bafna Lifestyles Remedies Limited

2. Bafna Life Line Private Limited

3. Bhansilal & Co (HUF)

3. SECONDARY SEGMENT /GEOGRAPHICAL SEGMENT :

The Company has identified manufacture of medicine and drugs as the only primary reportable segment.

4. MISCELLANEOUS EXPENSES:

a. Preliminary expenses and Public Issue Expenses Rs.50,27,092/- written off during the year (Previous year Rs.5,187,192/-).

5. CENVAT

a) CENVAT credit is reckoned for the material, capital goods, stores and consumables purchased and entered into the factory premises.

6. GENERAL

a) Tax deducted at source from the payment to Contractors, Professional charges, Interest and Salaries have been deposited in time.

b) Balance under current liabilities, debtors, loans and advances are subject to confirmation.

c) Advances given to suppliers for supply of materials and others remain unconfirmed. It was explained that supply will be made in the ensuing year.

d) Loans and advances include outstanding balance of deposits with Corporate Bodies is given below.

e) The fixed Deposit of sum of Rs. 330,24,319/- (Previous Year Rs. 17,924,375/-) lying with the State bank of India are under the lien against Bank Guarantee Margin / LC Margin money and loan against deposit.

f) In view of the insufficient information from the suppliers regarding their status as SSI units the amount due to Small Scale Industrial Undertakings cannot be ascertained.

g) The Company has raised Rs.983 lakhs through preferential allotment and deployed an amount of Rs. 707.72 lakhs as Advance as on 31.03.2011 towards Brand Acquisition 'RARICAP' from M/s. N.R.Jet Enterprises-an associate of M/s. Johnson & Johnson Limited and the balance amount was utilized towards setting up of Marketing division of the Company.

h) The Company has not provided for Cess as Specified in Section 441 A of the Companies Act in the absence of any Notification by the Central Government.

i) Additional information pursuant to the provisions of paragraphs 3, 4C & 4D of part II of Schedule VI of Companies Act, 1956 to the extent applicable to the company.

j) Previous year's figures have been rearranged and regrouped wherever found necessary to confirm to current year's figures.

---

Mar 31, 2010

1. CENVAT

a, CENVAT credit is reckoned for the material, capita! goods, stores and consumables purchased and entered into the factory premises,

2. General

a. Tax deducted at source from the payment to Contractors, Professional charges. Interest and Salaries have been deposited in time,

b. Balance under current liabilities, debtors, loans and advances are subject to confirmation.

d. The fixed Deposit of sum of Rs. 17,924,375/- (Previous Year Rs. 19,394,730/-) lying with the State bank of India are under the lien against Bank Guarantee Margin / LC Margin money.

e. In view of the insufficient information from the suppliers regarding their status as SSI units, the amount due to Smalt Scale Industrial Undertakings cannot be ascertained,

f. The Company has raised Rs.2560 lakhs through Public Issue and deployed it as proposed in prospectus except the following:

- For Public Issue Expenses Rs.251.35 lakhs against proposed Rs.200.00 lakhs.

- For setting up R & D Unit (still in progress) Rs.639.12 lakhs against (Previous year Rs.319.05) proposed Rs.300.00 lakhs.

- Other than the amount used as per the terms of Prospectus, an amount of Rs*217 lakhs was deposited with Corporate Bodies and the balance amount was utilized towards day to day operations of the Company.

g. Previous years figures have been rearranged and regrouped wherever found necessary to confirm to current years figures.

h. Additional information pursuant to the provisions of paragraphs 3, 4C & 4D of part II of Schedule VI of Companies Act, 1956 to the extent applicable to the company.