Notes to Accounts of Bilcare Ltd.

Mar 31, 2025

2.20 Provision and contingent liabilities

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that
an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. 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
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 financial statements.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate,
the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance
cost.

2.21 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Management and the Board of Directors
of the Company who are responsible for allocating the resources, assess the financial performance and position of the Company and make
strategic decisions. The Company has identified one reportable segment "Pharma Packaging Research Solutions" based on the information
reviewed by the Management and Board of Directors.

2(a) Recent accounting pronouncement

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting
Standards) Rules as issued from time to time. During the year ended March 31,2025, MCA has notified Ind AS 117 - Insurance Contracts and
amendments to Ind As 116 - Leases , relating to sale and lease back transactions, applicable from April 1,2024. The Company has assessed
that there is no significant impact on its financial statements.

On May 9, 2025, MCA notifies the amendments to Ind AS 21 - Effects of Changes in Foreign Exchange Rates. These amendments aim to
provide clearer guidance on assessing currency exchangeability and estimating exchange rates when currencies are not readily exchangeable.
The amendments are effective for annual periods beginning on or after April 1,2025. The Company is currently assessing the probable impact
of these amendments on its financial statements.

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations.
Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks.
Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been
granted after obtaining necessary approvals for credit. The assumptions for analysing Expected Credit Losses (ECL) are based on the current
prevailing market scenarios. The Company only deals with parties which have good credit rating/ worthiness given by external rating agencies
or based on Company''s internal assessment.

Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, investments, cash and cash
equivalents, bank deposits and other financial assets. None of the other financial instruments of the Company result in material concentration
of credit risk.

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was '' 30,766.68 lacs
and '' 30,878.31 lacs as at March 31, 2025 and 2024, respectively, being the total of the carrying amount of balances with banks, bank
deposits, investments,other financial assets excluding trade receivables. The maximum credit exposure on financial guarantees given by the
Company for the Group and various financial facilities is disclosed in Note 32 Contingent liabilities.

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain
sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining
adequate reserves, banking facilities and borrowing facilities by monitoring the rolling forecasts to assess its cash flow requirements to meet
operational needs and matching the maturity profiles of financial assets and liabilities.

3) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such
changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, price and other
market changes. The Company is not exposed to price risk, since the Company''s investment is in equity instruments of subsidiaries and it
carries no other external investments. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk.

a) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange
rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when
revenue or expense is denominated in a foreign currency). Foreign currency risks are managed within the approved policy parameters. The
Company has a natural hedge as it imports raw material and exports goods.

2) Fair Value Hierarchy

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instrument by valuation techniques:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities;

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly
observable;

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current
transaction between willing parties. The following methods and assumptions were used to estimate the fair values:

- The fair value of quoted equity investment and mutual funds are based on price quotations at the reporting date.

- The fair value of unquoted equity investments are based on market multiple approach. Market multiple of EV/EBITDA are considered
after applying suitable discounts for size, liquidity and other company specific discounts.

29 EMPLOYEE BENEFITS

Defined Contribution plans

Contributions to defined contribution plans are recognised as expense when employees have rendered services entitling them to such
benefits, such as provident fund. Amount of '' 44.56 lacs (31 March 2024: '' 30.44 lacs) is recognised as an expense towards defined
contribution plans and included in Employee Benefits Expense (refer Note 20).

Defined Benefit plans

For defined benefit plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations
being carried out at each balance sheet date. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset
ceiling and the return on plan assets (excluding interest), is reflected immediately in the balance sheet with a charge or credit recognised
in other comprehensive income in the period in which they occur. Past service cost, both vested and unvested, is recognised as an expense
at the earlier of (a) when the plan amendment or curtailment occurs; and (b) when the entity recognises related restructuring costs or
termination benefits.

The retirement benefit obligations recognised in the balance sheet represents the present value of the defined benefit obligations reduced
by the fair value of scheme assets. Any asset resulting from this calculation is limited to the present value of available refunds and reductions
in future contributions to the scheme.

The Company provides gratuity benefit to its employees which is treated as defined benefit plans.

Compensated absences

Compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders
the related services are recognised as undiscounted liability at the balance sheet date. Compensated absences which are not expected to
occur within twelve months after the end of the period in which the employee renders the related services are recognised as an actuarially
determined liability at the present value of the defined benefit obligation at the balance sheet date.

Gratuity

In accordance with Indian law, the Company operates a scheme of gratuity which is a defined benefit plan. The gratuity plan provides
for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount
equivalent to 15 to 30 days'' salary payable for each completed year of service. Vesting occurs upon completion of five continuous years of
service. The Company manages the plan through a trust and the fair value of the plan assets is deducted from the gross obligation.

b. Discount Rate Risk -

Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practice can have a significant
impact on the defined benefit liabilities.

c. Future Salary Escalation and Inflation Risk -

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often
result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary
increases provided at management''s discretion may lead to uncertainities in estimating this increasing risk.

2) Asset Risks

a. All plan assets are maintained in a trust fund managed by a public sector insurer viz; LIC of India. LIC has a sovereign guarantee and has
been providing consistent and competitive returns over the years.

b. The company has opted for a traditional fund wherein all assets are invested primarily in risk averse markets. The company has no
control over the management of funds but this option provides a high level of safety for the total corpus. A single account is maintained
for both the investment and claim settlement and hence 100% liquidity is ensured. Also interest rate and inflation risk are taken care of.

The Company will assess the impact of Code on Wages, 2019 and the Code on Social Security, 2020 and give effect in the financial
statements when the date of implementation of these codes and the Rules/Schemes thereunder are notified.

35 ASSETS HELD FOR SALE

(a) The Company had a capital advance for purchase of land parcels and building vide an agreement to sell with the promoters. In terms of the
agreements, the said land parcels and building were capitalized in the books during FY 2023-24 against the capital advance which became
Nil. As there are potential buyers for sale of these land parcels thus in accordance with Ind AS 105, these land parcels are classified as "Assets
Held for Sale" as at March 31, 2024. The due diligence of the potential buyers is on-going and the potential buyers have expressed their
continued interest to purchase the said land parcels, as at March 31, 2025 and it is expected to be concluded in FY 2025-26. Accordingly,
the same is continued to be classified as "Assets Held for Sale".

Pending the execution of the sale deed with the Company, the title deeds of the land parcels and building are not held in the name of the
Company. The physical possession of the land parcels and building is with the Company.

B OTHER DISCLOSURES

(a) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.

(b) The Company does not have any transactions with companies struck off.

(c) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

(e) 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:

(i) 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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(f) 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:

(i) 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

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(g) The Company has no 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).

(h) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013.

(i) Contribution to political parties during the year is Nil (31 March 2024 : Nil)

(j) Except for the instances mentioned below, the Company has maintained its books of account using accounting software which has a
feature of recording an audit trail (edit log). The said feature was enabled and operated throughout the year for all relevant transactions
recorded in such software. The Company has preserved the audit trail as per the statutory record retention requirements.

The Company engages a third-party service provider for payroll processing and quote generation. However, the Service Organisation
Control (SOC) Type 2 report specifically covering the maintenance of audit trail for such services was not available.

(k) During the year the Company has not been declared as a wilful defaulter.

(l) No material fraud by the Company and on the Company has been noticed or reported during the year.

38 In respect of the public fixed deposit liability taken over by the Caprihans India Limited as per the Business Transfer Agreement, the statutory
compliances is the responsibility of the Company.

39 The Company is under investigation by SFIO. In FY2020-21, the Company filed a writ petition challenging the investigation, and the matter
remains sub-judice as of the reporting date.

40 The accounts have been prepared on a going concern basis given the positive prospects going forward including the Management''s strategic
plans for the foreseeable future, cashflow projections and future business prospects for the GCS business. Though the Company had incurred
losses in the past years, there is a turnaround with a profit as at March 31, 2025 and there are sufficient current assets to meet the current
liabilities.

41 Disclosure pusuant to schedule V read with Regulations 34(3) and 53(F) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulation, 2015:

- Loans and advances in the nature of loans for working capital requirements to a subsidiary : NIL

- Loans and advances in the nature of loans to firm/companies in which directors are interested : NIL

- Investement by the loanee (borrower) in the shares of the Company or its subsidiary : NIL

42 Previous year figures have been regrouped / reclassified wherever necessary.

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Mar 31, 2024

2.20 Provision and contingent liabilities

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. 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 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 financial statements.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

2.21 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Internal Management and the Board of Directors of the Company who are responsible for allocating the resources, assess the financial performance and position of the Company and make strategic decisions. The Company has identified one reportable segment "Pharma Packaging Research Solutions" based on the information reviewed by the Internal Management and Board of Directors.

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. The assumptions for analysing Expected Credit Losses (ECL) are based on the current prevailing market scenarios. The Company only deals with parties which have good credit rating/ worthiness given by external rating agencies or based on Company''s internal assessment.

Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, investments, cash and cash equivalents, bank deposits and other financial assets. None of the other financial instruments of the Company result in material concentration of credit risk.

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was ''30,878.31 lacs and ''31,166.96 lacs as at March 31, 2024 and 2023, respectively, being the total of the carrying amount of balances with banks, bank deposits, investments excluding trade receivables. The maximum credit exposure on financial guarantees given by the Company for the Group and various financial facilities is disclosed in Note 32 Contingent liabilities.

The Company''s exposure to customers is diversified and no single customer contributes to more than 10% of outstanding trade receivable as at March 31, 2024 and March 31, 2023.

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, price and other market changes. The Company is not exposed to price risk, since the Company''s investment is in equity instruments of subsidiaries and it carries no other external investments. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk.

a) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency). Foreign currency risks are managed within the approved policy parameters. The Company has a natural hedge as it imports raw material and exports goods.

As at the end of the reporting period, the carrying amounts of the material foreign currency denominated monetary assets (including cash and bank balances) and liabilities are as follows:

2) Fair Value Hierarchy

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instrument by valuation techniques:

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

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable;

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties. The following methods and assumptions were used to estimate the fair values:

- The fair value of quoted equity investment and mutual funds are based on price quotations at the reporting date.

- The fair value of unquoted equity investments are based on market multiple approach. Market multiple of EV/EBITDA are considered after applying suitable discounts for size, liquidity and other company specific discounts.

29 EMPLOYEE BENEFITS

Defined Contribution plans

Contributions to defined contribution plans are recognised as expense when employees have rendered services entitling them to such benefits, such as provident fund.

Defined Benefit plans

For defined benefit plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling and the return on plan assets (excluding interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Past service cost, both vested and unvested, is recognised as an expense at the earlier of (a) when the plan amendment or curtailment occurs; and (b) when the entity recognises related restructuring costs or termination benefits.

The retirement benefit obligations recognised in the balance sheet represents the present value of the defined benefit obligations reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to the present value of available refunds and reductions in future contributions to the scheme.

The Company provides gratuity benefit to its employees which is treated as defined benefit plans.

Compensated absences

Compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as undiscounted liability at the balance sheet date. Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as an actuarially determined liability at the present value of the defined benefit obligation at the balance sheet date.

Employee benefit plans consist of the following:

Gratuity

In accordance with Indian law, the Company operates a scheme of gratuity which is a defined benefit plan. The gratuity plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 to 30 days'' salary payable for each completed year of service. Vesting occurs upon completion of five continuous years of service. The Company manages the plan through a trust and the fair value of the plan assets is deducted from the gross obligation.

Risk Analysis

Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as companies take on uncertain long term obligations to make future benefit payments.

1) Liability Risks

a. Asset-Liability Mismatch Risk-

Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the defined enefit liabilities, the company is successfully able to neutralize valuation swings caused by interest rate movements. Hence companies are encouraged to adopt asset-liability management.

b. Discount Rate Risk -

Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practise can have a significant impact on the defined benefit liabilities.

c. Future Salary Escalation and Inflation Risk -

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at management''s discretion may lead to uncertainities in estimating this increasing risk.

a. All plan assets are maintained in a trust fund managed by a public sector insurer viz; LIC of India. LIC has a sovereign guarantee and has been providing consistent and competitive returns over the years.

b. The company has opted for a traditional fund wherein all assets are invested primarily in risk averse markets. The company has no control over the management of funds but this option provides a high level of safety for the total corpus. A single account is maintained for both the investment and claim settlement and hence 100% liquidity is ensured. Also interest rate and inflation risk are taken care of.

30 LEASES

As a lessee

The Company has lease contracts for its facility usage with lease term between 1 year to 5 years. Details of carrying amount of right-of-use

assets and movement during the period is disclosed under Note 4.

Footnotes:

(a) The maturity analysis of lease liabilities are disclosed in Note 4 (iv) and Note 27 (2) Liquidity Risk.

(b) The effective interest rate for lease liabilities is 9.50%, with maturity between 2023-2028 on a renewable basis thereafter.

35 ASSETS HELD FOR SALE

The Company had a capital advance for purchase of land parcels and building vide an agreement to sell with the promoters. In terms of the agreements, the said land parcels and building have been capitalized in the books during the year against the capital advance which has become nil. As there are potential buyers for sale of these land parcels thus in accordance with Ind AS 105, these land parcels are classified as "Assets Held for Sale" as at March 31, 2024.

The Company has given the effect of the above and presented the Standalone Financial Statements as at 31 March 2024 in accordance -refer to statement below.

B OTHER DISCLOSURES

(a) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(b) The Company does not have any transactions with companies struck off.

(c) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

(e) 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:

(i) 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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(f) 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:

(i) 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

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(g) The Company has no 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).

(h) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013.

(i) The Company has not made any donation to political parties.

(j) Except for the instances mentioned below, the company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software.

(i) The feature of recording audit trail (edit log) facility was not enabled at the application layer of the accounting software relating to ''Salesforce'' for the period 1 April 2023 to 31 March 2024.

(ii) The feature of recording audit trail (edit log) facility was not operated at the application layer of the accounting software relating to ''GCS-related'' activity for the period from 1 April 2023 to 31 March 2024.

(ii) The feature of recording audit trail (edit log) facility was not operated at the application layer of the accounting software relating to ''GCS-related'' activity for the period from 1 April 2023 to 31 March 2024.

(iii) The Company uses the services of a third-party service provider for payroll processing, however, the Service Organisation Control Type 2 report i.e. SOC 2, was not available.

(iv) The feature of recording audit trail (edit log) facility was not operated at the database level throughout the reporting year to log any direct data changes for the accounting software used for maintaining the books of account.

The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except that the feature of recording audit trail (edit log) facility was not enabled at the database level in relation to SAP accounting software throughout the reporting year to log any direct data changes. Further no instance of audit trail feature being tampered with was noted in respect of the accounting software.

(k) During the year the company has not been declared as a wilful defaulter.

(l) No material fraud by the Company and on the Company has been noticed or reported during the year.

38 Bilcare Mauritius Limited (BML) has been liquidated and the investment of BML in its subsidiaries viz. Caprihans India Limited, Bilcare GCS Inc, Bilcare GCS Ireland Limited, Bilcare Inc and cash equivalent has been transferred to the shareholder viz. Bilcare Limited as part of the liquidation proceeds. There is no financial impact of the same in the financial statements.

39 Consequent to the slump-sale that was effected on 27.03.2023 wherein the PPI division was sold to Caprihans India Limited, there was a transition period wherein some business transactions were done in the name of Bilcare Limited in the capacity of "facilitator" which mainly pertained to sales and purchases and are not reflected in the financial statements.

40 In respect of the public fixed deposit liability taken over by the Caprihans India Limited as per the Business Transfer Agreement, the statutory compliances is the responsibility of the Company.

41 The Company is focussing on the GCS business vertical and given the positive prospects going forward, including management''s strategic projection plan for the foreseeable future, cashflow projection etc. the accounts are prepared on a going concern basis.

42 Disclosure pursuant to Schedule V read with Regulations 34 (3) and 53 (F) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:

- Loans and advances in the nature of loans for working capital requirements to a subsidiary: NIL

- Loans and advances in the nature of loans to firms/companies in which directors are interested: NIL

- Investment by the loanee (borrower) in the shares of the Company or its subsidiary: NIL

43 Previous year figures have been regrouped / reclassified wherever necessary.

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Mar 31, 2023

2.21 Provision and contingent liabilities

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. 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 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 financial statements.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

2.22 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Internal Management and the Board of Directors of the Company who are responsible for allocating the resources, assess the financial performance and position of the Company and make strategic decisions. The Company has identified one reportable segment "Pharma Packaging Research Solutions" based on the ''information reviewed by the Internal Management and Board of Directors.

2(b) Critical Estimates and Judgements

The preparation of Standalone Financial Statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Company''s accounting policies. This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed.

i) Provisions and contingent liabilities

The Company exercises judgement in measuring and recognising provisions and the exposures to contingent liabilities related to pending litigation or other outstanding claims subject to negotiated settlement, mediation, arbitration or government regulation, as well as other contingent liabilities. Judgement is necessary in assessing the likelihood that a pending claim will succeed, or a liability will arise, and to quantify the possible range of the financial settlement.

Because of the inherent uncertainty in this evaluation process, actual losses may be different from the originally estimated provision.

ii) Going Concern

As at the date of approval of the financial statements, the Company sold it''s PPI business undertaking on a slump sale basis. The Company has only the GCS business which is a profitable business. As per Ind AS 1, the Management neither intends to liquidate the entity nor to cease its business operations. On this basis, the Board of Directors believe it is appropriate to prepare the financial statements on a going concern basis.

Terms / rights, preferences and restrictions attached to equity shares:

The Company has only one class of equity shares having a par value of ''10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees, if any. During the year ended 31 March 2023, the amount of per share dividend recognized as distributions to equity shareholders was NIL (31 March 2022 : NIL). In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

27 FINANCIAL RISK MANAGEMENT

The Company is exposed primarily to fluctuations in foreign currency exchange rates, credit, liquidity and interest rate risks, which may adversely impact the fair value of its financial instruments. The Company has a risk policy which coveres the risks associated with financial assets and liabilities. The Company assesses the unpredictability of the financial environment and focuses to mitigate potential adverse effects on the financial performance of the Company

Credit risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.

Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, loans, investments, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the other financial instruments of the Company result in material concentration of credit risk.

- Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was ''1,252.99 lacs and ''579.38 lacs as at March 31,2023 and 2022, respectively, being the total of the carrying amount of balances with banks, bank deposits, investments excluding trade receivables.

The Company''s exposure to customers is diversified and no single customer contributes to more than 10% of outstanding trade receivable as at March 31, 2023 and March 31, 2022.

The allowance for lifetime expected credit loss on trade receivables for the years ended March 31, 2023 and 2022 was ''41.13 lacs and ''(197.63) lacs, respectively. The reconciliation of allowance for doubtful trade receivables is as follows:

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, price and other market changes. The Company is not exposed to price risk, since the Company''s investment is in equity instruments of subsidiaries and it carries no other external investments. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk. -Foreign currency risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit and loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the Company.

Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries.

The Company has a natural hedge as it imports raw material and exports goods . Further, any movement in the functional currency of the various operations of the Company against major foreign currencies may impact the Company''s revenue in international business.

The foreign exchange rate sensitivity is calculated by aggregation of the net foreign exchange rate exposure and a simultaneous parallel foreign exchange rates shift of all the currencies by 10% against the functional currency of the Company.

The following table sets forth information relating to unhedged foreign currency exposure in ''Lacs as at March 31,2023 :

29 EMPLOYEE BENEFIT OBLIGATIONS Defined Contribution plans

Contributions to defined contribution plans are recognised as expense when employees have rendered services entitling them to such benefits, such as provident fund.

Defined Benefit plans

For defined benefit plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling and the return on plan assets (excluding interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Past service cost, both vested and unvested, is recognised as an expense at the earlier of (a) when the plan amendment or curtailment occurs; and (b) when the entity recognises related restructuring costs or termination benefits.

The retirement benefit obligations recognised in the balance sheet represents the present value of the defined benefit obligations reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to the present value of available refunds and reductions in future contributions to the scheme.

The Company provides gratuity benefit to its employees which is treated as defined benefit plans.

Compensated absences

Compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as undiscounted liability at the balance sheet date. Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as an actuarially determined liability at the present value of the defined benefit obligation at the balance sheet date.

Employee benefit plans consist of the following:

Gratuity

In accordance with Indian law, the Company operates a scheme of gratuity which is a defined benefit plan. The gratuity plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 to 30 days'' salary payable for each completed year of service. Vesting occurs upon completion of five continuous years of service. The Company manages the plan through a trust and the fair value of the plan assets is deducted from the gross obligation.

38 RELATED PARTY DISCLOSURES Subsidiaries

Ultimate holding Company Bilcare Limited

Wholly owned subsidiaries Bilcare GCS Limited, UK

Bilcare Mauritius Limited, Mauritius

Step down subsidiaries Caprihans India Limited

Bilcare GCS Inc., USA Bilcare Inc., USA Bilcare GCS Ireland Limited

Key Management Personnel Shreyans M. Bhandari (Chairman & Managing Director)

(w.e.f. 01.07.2022)

Mohan H. Bhandari (Chief Executive Officer) (w.e.f. 01.07.2022) Nilesh Tiwari (Chief Financial Officer)

Prabhavi Mungee (Company Secretary)

---

Mar 31, 2018

1. CAPITAL MANAGEMENT

For the purposes of the Company''s capital management, capital includes issued capital and all other equity reserves. The primary objective of the Company''s capital management is to maximize shareholder value. The Company manages it''s capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants. The Company monitors capital using gearing ratio, which is net debt (i.e., total debt less cash) divided by total equity.

2. EMPLOYEE BENEFIT OBLIGATIONS

(a) Defined Contribution plans

Provident Fund: Contribution towards provident fund for employees is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as defined contribution schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis.

(b) Defined Benefit plans

Gratuity: The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan") covering eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. The fair value of the plan assets of the trust administered by the Company, is deducted from the gross obligation.

3. OPERATING LEASE

The Company has entered into operating leases in respect of office / factory premises, factory god owns and others which are mostly cancellable by giving appropriate notices as per respective agreements. However, there are certain non-cancellable lease/s which have an average life of between three and ten years. During the year, the lease expense recorded in the Statement of Profit and Loss is '' 116.85 lacs (31-Mar-17: '' 112.26 lacs).

4. SEGMENT INFORMATION

The Company is engaged in Pharma Packaging Research Solutions which is considered the only reporting business segment for disclosure in the financial statements by the Management. Further, the geographical information of revenues from external customers and non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets has not been presented as such segmentation is not compiled by the Company.

5. RELATED PARTY DISCLOSURES

Related Party Disclosures as required by Indian Accounting Standard 24 (Ind AS 24 ) are given below:

Subsidiaries

Ultimate holding Company Bilcare Limited

Wholly owned subsidiary Bilcare GCS Limited, UK

Bilcare GCS Inc., USA

Bilcare Packaging Ltd., Mauritius (for part of the F.Y.) Bilcare Technologies Singapore Pte. Ltd., Singapore

Step down subsidiaries Bilcare Technologies Italia Srl. , Italy

Wholly owned subsidiary Bilcare Mauritius Ltd., Mauritius

Step down subsidiaries Bilcare Research Swiss I AG

Bilcare Research Swiss II AG Bilcare Research Holding AG Bilcare Research AG Bilcare Germany Management GmbH Bilcare Research Singapore Pte.Ltd.

Bilcare Research Inc

Bilcare Research SRL

Bilcare Agency GmbH

Bilcare Research (Shanghai) Co., Ltd.

Films Germany Holding GmbH Bilcare Research GmbH Bilcare Research PPI Holding GmbH Bilcare Research PPI GmbH & Co. KG Bilcare Research SFS Holding GmbH Bilcare Research SFS GmbH & Co. KG BIL Leasing Verwaltungs GmbH & Co Caprihans India Limited

Key Management Personnel Mohan H. Bhandari (Chairman & Managing Director)

Anil Tikekar (Company Secretary & CFO)

Relatives of Key Management Personnel Ankita J. Kariya

Nutan M. Bhandari Kiran H. Bhandari Prakash H. Bhandari

# The Director/s have issued personal guarantee for these loans.

* a) The Company is in the negotiation of restructuring these loans and hence these have been disclosed as Non- Current Borrowings.

b) In view of the on- going discussions for restructuring, the Company has not provided interest on these loans which have been classified by the respective banks as Non-Performing Assets (NPA), from the date of such classification.

c) Bank accounts including NPA accounts, restructured loan accounts are based on actual confirmations received and Management Representation in case where no confirmation was received.

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Mar 31, 2016

NOTE - 1

SEGMENT INFORMATION

The Company is engaged in pharma packaging research solutions which is considered the only reporting business segment for disclosure in the financial statements by the Management. In the light of the dominant source and nature of risks and returns, location of its production facilities and assets of the group, and relied upon by the auditors as per accounting standard AS-17.

NOTE - 2

PRIOR PERIOD EXPENSES

Prior period items include reversal / write off of:

a) Excess provision of expenses – Rs.. (1,978.40) lacs

b) Advances & deposits - Rs. 333.17 lacs

c) Excess claim of credit in duties & taxes – Rs.. 606.90 lacs

d) Net Revenue of comparator sales booked in earlier years amounting to Rs.. 1,092.07 lacs.

NOTE - 3

EXTRAORDINARY ITEMS

a. Restructuring of Loans - During the year, the outstanding loans were assigned by some of the banks and restructured under a settlement, whereas one of the banks did a One Time Settlement. The total remission of Rs. 33,523.60 lacs comprising of principle amount of Rs.. 27,413.70 lacs & related unpaid interest provided in the earlier years of Rs.. 6,109.90 lacs that has been derived from this restructuring has been written back.

b. The Company has written off obsolete and non moving inventory amounting to Rs. 8,994.47 lacs (including Rs. 8,900.33 lacs pertaining to the overseas branch which has been closed during the year).

c. The Company has written off non recoverable Loans & Advances of 32,379.54 lacs (including 31,586.02 lacs pertaining to the overseas branch, which has been closed during the year).

d. The Company has written off non recoverable debtors of Rs. 618.97 lacs and deposits of Rs. 223.84 lacs

NOTE - 4

PREVIOUS YEAR FIGURES

Figures for the previous year have been regrouped / reclassified wherever necessary to conform with the current year''s classification.

NOTE- 5

The financial statements are presented in Rs. Lacs and decimal thereof except for per share information or as otherwise stated.

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Mar 31, 2015

NOTE - 1

DUES TO MICRO AND SMALL ENTERPRISES

Trade payables include Rs. 38.31 lacs (31 March 2014 : Rs. 44.33 lacs) payable to Micro and Small enterprises under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). No amount is overdue for payment to such undertakings.

NOTE - 2

DEFERRAL / CAPITALISATION OF EXCHANGE DIFFERENCES

The Ministry of Corporate Affairs (MCA) has issued the amendment dated 29 December 2011 to AS-11 The Effects of Changes in Foreign Exchange Rates, to allow companies deferral / capitalization of exchange differences arising on long term foreign currency monetary items. In accordance with the amendment, the Company has deferred the exchange loss arising on long term foreign currency loans amounting to Rs.NIL (31 March 2014 : Rs.NIL). As the Company does not have any other long term foreign currency monetary item, the same is reflected in the "Foreign Currency Monetary Items Translation Difference Account (FCMITDA)". During the year, the Company has written off Rs. NIL ( 31 March 2014: Rs. 823.10 lacs) from this account.

NOTE - 3

FOREIgN CURRENCY EXPOSURES

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the time of the transaction and monetary items denominated in foreign currencies at the year-end not covered by forward exchange contracts are translated at year end rates and those covered by forward exchange contracts are translated at the rate of forward exchange contract.

NOTE - 4

LEASE DETAILS

The Company has entered into commercial leases on property and items of machinery. These leases have an average life of between three and ten years and there are no restrictions placed upon the Company by entering into these leases.

NOTE - 5

SEGMENT INFORMATION

The Company is engaged in pharma packaging research solutions which is considered the only reporting business segment for disclosure in the financial statements by the management in the light of the dominant source and nature of risks and returns, location of its production facilities and assets of the group and relied upon by the auditors as per accounting standard AS-17.

NOTE - 6

EXCEPTIONAL ITEMS

During the year the company has parted with its Wholly owned subsidiary - Bilcare International. The profit on sale of this investment amounting to Rs. 9.37 lacs has been recognized as an exceptional item in the Profit & Loss Account. (In the previous year,the company had parted with its Joint Venture in USA. The Profit on Sale of this Business amounting to Rs.3,748.75 lacs has been recognized as an exceptional item in the Profit & Loss Account).

NOTE - 7

PREVIOUS YEAR FIGURES

Figures for the previous year have been regrouped / reclassified wherever necessary to conform with the current year's classification.

NOTE - 8

The financial statements are presented in Rs. Lacs and decimal thereof except for per share information or as otherwise stated.

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Mar 31, 2014

CONTINGENT LIABILITIES

i) Claims against the Company, not acknowledged as debts: Corporate guarantees given 147,140.47 105,151.84

ii) Estimated amount of contracts remaining to be executed on capital - - account not provided for (net of advances)

iii) Interest on Bank Loans (NPA Accounts) has been charged 4,237.97 at 10% p.a. being average base rate of lending.

The contingent liability for unprovided Interest on account of difference between the Sanctioned Rate of Interest and the Base Rate, which is subject to negotiation with individual banks as a part of the Restructuring undertaken by the Company.

iv) The Commissioner of Income Tax (Central), Pune has filed a Writ Petition in the honourable High Court of Judicature at Mumbai against Income Tax Settlement Commission (ITSC) & the Company. The Writ Petition is filed challenging the order of the ITSC u/s 245D(4) passed on 14th October 2013 in favour of the Company allowing the Company''s claim of certain expenditure. Thus, the Company may have a possible obligation based on the outcome of the Writ petition which is currently not possible to estimate.

NOTE - 1

DUES TO MICRO AND SMALL ENTERPRISES

Trade payables include Rs. 44.33 lacs (31 March 2013 : Rs. 63.77 lacs) payable to Micro and Small enterprises under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). No amount is overdue for payment to such undertakings.

DEFERRAL / CAPITALISATION OF EXCHANGE DIFFERENCES

The Ministry of Corporate Affairs (MCA) has issued the amendment dated 29 December 2011 to AS-11 The Effects of Changes in Foreign Exchange Rates, to allow companies deferral / capitalization of exchange differences arising on long term foreign currency monetary items. In accordance with the amendment, the Company has deferred the exchange loss arising on long term foreign currency loans amounting to Rs. NIL (31 March 2013 : Rs. NIL). As the Company does not have any other long term foreign currency monetary item, the same is reflected in the "Foreign Currency Monetary Items Translation Difference Account (FCMITDA)". During the year, the Company has written off the carried forward balance of Rs. 823.10 lacs ( 31 March 2013: Rs. 658.86 lacs) from this account, making it NIL.

NOTE - 2

MANAGERIAL REMUNERATION

According to Section 198, 269 read with Schedule XIII of the Companies Act 1956, the remuneration that could be paid to the Execu- tive Directors in case of inadequacy of Profits u/s 349 & 350 of the Companies Act is maximum up to Rs. 2.00 lacs per month, however, the remuneration paid to the Executive Directors during the financial year is NIL. The excess remuneration of Rs. 11.26 lacs of the previous financial year, calculated as per expert opinion, is recovered from the Executive Directors during the current financial year.

NOTE - 3

SEGMENT INFORMATION

The Company is engaged in pharma packaging research solutions which is considered the only reporting business segment for disclosure in the financial statements by the management in the light of the dominant source and nature of risks and returns, location of its production facilities and assets of the group and relied upon by the auditors as per accounting standard AS-17.

NOTE - 4

EXCEPTIONAL ITEMS

During the year the company has parted with its Joint Venture in USA. The profit on sale of this investment amounting to Rs. 3,748.75 lacs has been recognized as an exceptional item in the Profit & Loss Account.

NOTE - 5

EXTRAORDINARY ITEMS

The Company has written off absolute and non-moving inventory to the extent of Rs. NIL (31 March 2013 : Rs. 2,312.46 lacs). NOTE - 44

The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011 respectively read with General Circular No. 08/2014 dated 4th April 2014 has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The Com- pany 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 Financial Statements.

NOTE - 6

PREVIOUS YEAR FIGURES

Figures for the previous year have been regrouped / reclassified wherever necessary to confirm with the current year''s classification.

NOTE - 7

The financial statements are presented in Rs. Lacs and decimal thereof except for per share information or as otherwise stated.

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Mar 31, 2013

NOTE - 1

DUES TO MICRO AND SMALL ENTERPRISES

Trade payables inclue Rs..63.77 lacs (31 March 2012 : Rs..23.80 lacs) payable to Micro and Small enterprises under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). No amount is overdue for payment to such undertakings.

NOTE - 2

DEFERRAL / CAPITALISATION OF EXCHANGE DIFFERENCES

The Ministry of Corporate Affairs (MCA) has issued the amendment dated 29 December 2011 to AS-11 The Effects of Changes in Foreign Exchange Rates, to allow companies deferral / capitalization of exchange differences arising on long term foreign currency monetary items. In accordance with the amendment, the Company has deferred the exchange loss arising on long term foreign currency loans amounting to Rs..NIL (31 March 2012 : Rs..1,481.96 Lacs). As the Company does not have any other long term foreign currency monetary item, the same is reflected in the "Foreign Currency Monetary Items Translation Difference Account (FCMITDA)". During the year, the Company has written off Rs..658.86 lacs from this account.

NOTE - 3

MANAGERIAL REMUNERATION

According to Section 198, 269 read with Schedule XIII of the Companies Act 1956, the remuneration that can be paid to the Direc- tors in case of inadequacy of Profits u/s 349 & 350 of the Companies Act is maximum upto Rs. 2.00 Lacs per month, however, the remuneration paid to the Executive Directors during the Financial Year is Rs. 428.36 lacs for which application is being made by the Company to the Central Government for granting approval of the excess remuneration.

NOTE - 4

RELATED PARTY DISCLOSURES

Disclosure as required by Accounting Standard (AS) - 18 "Related party disclosures" as prescribed u/s. 211 (3C) of the Companies Act, 1956.

i) Names of related parties and related party relationship Related parties where control exists

Ultimate holding Company Bilcare Limited

Holding Company Bilcare Singapore Pte. Ltd.

Subsidiaries Bilcare GmbH

Bilcare Inc

Bilcare Farmacseutica Embalagem E Pesquisas Ltda

Bilcare Switzerland SA

Bilcare (UK) Ltd

Bilcare GCS (Europe) Ltd

Bilcare Technologies Singapore Pte. Ltd.

Bilcare Technologies Italia Srl. Holding Company Bilcare Mauritius Ltd.

Subsidiaries Bilcare Research AG

Bilcare Germany Management GmbH

Bilcare Germany GmbH & Co KG

Films Germany Holding GmbH

Bilcare Agency GmbH

Bilcare Research Srl.

Bilcare Fucine Srl.

Bilcare Research Inc

Bilcare Research GmbH

Caprihans India Limited

Bilcare International

B A Technologies Limited

Related parties - Joint venture 50% holding in International Labs LLC. USA

Key Management Personnel Mr. Mohan H. Bhandari (Managing Director)

Dr. Praful R. Naik (Executive Director)

NOTE - 5

SEGMENT INFORMATION

The Company is engaged in pharma packaging research solutions which is considered the only reporting business segment for- disclosure in the financial statements by the management in the light of the dominant source and nature of risks and returns, location of its production facilities and assets of the group and relied upon by the auditors as per accounting standard AS 17.

NOTE - 6 EXTRAORDINARY ITEMS

During the year, the Company has written off absolute and non-moving inventory to the extent of Rs. 2,312.46 lacs.

NOTE - 7

PREVIOUS YEAR FIGURES

Figures for the previous year have been regrouped / reclassified wherever necessary to confirm with the current year''s classifica- tion.

NOTE - 8

The financial statements are presented in Rs. Lacs and decimal thereof except for per share information or as otherwise stated.

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Mar 31, 2012

NOTE - 1

CONTINGENT LIABILITIES

i) Claims against the Company, not acknowledged as debts: Corporate guarantees given 61,954.55 69,251.05

Disputed income tax matters in appeal – 165.39 (Liability u/s.153 of the Income Tax Act, 1961 may accrue on account of the Search, amount not crystalised)

ii) Estimated amount of contracts remaining 2,086.95 823.00 to be executed on capital account not provided for (net of advances)

NOTE - 2

DUES TO MICRO AND SMALL ENTERPRISES

There are no amounts that need to be disclosed pertaining to Micro and Small enterprises under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) As at 31 March 2012, no supplier has intimated the Company about its status as Micro or Small enterprises or its registration with the appropriate authority under MSMED Act, 2006.

NOTE - 3

SEGMENT INFORMATION

The Company is engaged in pharma packaging research solutions which is considered the only reporting business segment for disclosure in the financial statements by the management in the light of the dominant source and nature of risks and returns, location of its production facilities and assets of the group and relied upon by the auditors as per accounting standard AS-17.

NOTE - 4

DEFERRAL / CAPITALISATION OF EXCHANGE DIFFERENCES

The Ministry of Corporate Affairs (MCA) has issued the amendment dated 29 December 2011 to AS-11 The Effects of Changes in Foreign Exchange Rates, to allow companies deferral / capitalization of exchange differences arising on long term foreign currency monetary items. In accordance with the amendment, the Company has deferred the exchange loss arising on long term foreign currency loans amounting to Rs..1,481.96 lacs (31 March 2011 : NIL). As the Company does not have any other long term foreign currency monetary item, the same is reflected in the "Foreign Currency Monetary Items Translation Difference Account (FCMITDA)"

NOTE - 5

PREVIOUS YEAR FIGURES

Till the year ended 31 March 2011, the Company was using pre-revised Schedule VI to the Companies Act, 1956 for preparation and presentation of its financial statements. During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company. The Company has re-classified the previous year figures to conform to this year's classification. Except accounting for dividend on investments in subsidiaries, the adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of balance sheet.

NOTE - 6

The financial statements are presented in Rs.. Lacs and decimal thereof except for per share information or as otherwise stated.

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Mar 31, 2011

Rs. Lacs

As on As on 31st March 2011 31st March 2010

1. Contingent Liabilities not provided for in respect of:

a) Counter guarantees given for subsidiary companies 69,251.05 13,492.41

b) Disputed Income Tax matters in appeal 165.39 694.94

c) Estimated amount of contracts remaining to be executed on 823.00 459.00 capital account not provided for (Net of Advances)

6. The Term loan facilities sanctioned by the Banks and Institutions are secured by first charge on immovable and movable properties and second charge on current assets, both present and future under the Security Trustee Arrangement.

The working capital facilities sanctioned by the banks and Institutions are secured by first charge on current assets and second charge on immovable and movable properties, both present and future, under the Security Trustee Arrangement.

7. In absence of any intimation received from vendors regarding the status of their registration under "Micro, Small and Medium Enterprises Development Act 2006" the Company is unable to comply with the disclosure required to be made under the said Act.

9. a) The Company has issued Foreign Currency Convertible Bonds (FCCB) on 27th December 2005 amounting to USD 50 million.

Out of the outstanding Bonds of USD 11.83 million as on 1st April, 2010, during the year, 906 Bonds amounting to USD 9.06 million were converted in fully paid-up equity shares and 277 Bonds amounting to USD 2.77 million were redeemed at a redemption value of Rs. 145.735, resulting in the outstanding at the end of the year to NIL.

b) During the year, the Company has allotted 857,341 Equity Shares of Rs.10/- each @ Rs. 483.28 (including share premium of Rs. 473.28) on conversion of the above 906 Foreign Currency Convertible Bonds.

Consequently, the paid-up equity share capital of the Company stands increased to Rs. 2,354.52 Lacs.

c) Expenses for FCCBs conversion and redemption premium aggregating to Rs.696.84 Lacs are debited to Securities Premium Account.

10. As required by Accounting Standard – AS 18 "Related Party Disclosures" issued by The Institute of Chartered Accountants of India, the disclosures are as follows:

a) Subsidiary Companies

i) Bilcare Singapore Pte Ltd.

ii) Bilcare GmbH

iii) Bilcare Inc

iv) Bilcare Farmacseutica Embalagem E Pesquisas Ltda

v) Bilcare (UK) Ltd

vi) Bilcare GCS (Europe) Ltd

vii) Bilcare SA

viii) Bilcare Technologies Singapore Pte. Ltd.

ix) Bilcare Technologies Italia Srl.

x) Bilcare Mauritius Ltd.

xi) Bilcare Research AG

xii) Bilcare Germany Management GmbH

xiii) Bilcare Germany GmbH & Co.KG

xiv) Films Germany Holding GmbH

xv) Bilcare Agency GmbH

xvi) Bilcare Research Srl

xvii) Bilcare Fucine Srl

xviii) Bilcare Research Inc

xix) Bilcare Research GmbH

xx) Bilcare Staufen GmbH

xxi) Caprihans India Limited

b) 50% Joint Venture in International Labs LLC.

c) Key Management Personnel

i) Mr. Mohan H. Bhandari (Managing Director)

ii) Dr. Praful R. Naik (Executive Director)

iii) Mr. Chandra Prakash Jaggi (Director)

11. The Company is engaged in packaging research solutions which as per Accounting Standard – AS 17 is considered the only reportable business segment by the Management in the light of the dominant source and nature of risks and returns, location of its production facilities and assets of the group and relied upon by the Auditors. As per AS 17 all reportable information as regards segment revenue, segment results, carrying amount of segment assets, segment liabilities, total cost of acquisition of segment assets and depreciation are fairly disclosed in the financial statements.

12. a) The Ministry of Corporate Affairs, Government of India vide General Circular No. 2/2011 dated 8th Feb 2011 has granted a general exemption under Section 211 of the Companies Act, 1956 from disclosure of quantitative details in the Profit & Loss Account under paras 3(i)(a) and 3(ii)(a) of Part II, Schedule VI to the Companies Act, 1956.

b) The Ministry of Corporate Affairs, Government of India vide General Circular No. 2/2011 dated 8th Feb 2011 has granted a general exemption from compliance with section 212 of the Companies Act, 1956. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

15. Financial Instruments

a) Financial contracts entered into by the company and outstanding as on 31st March 2011 –

i) For hedging Currency and Interest Rate Related Risks: NIL (Previous Year NIL).

ii) For hedging commodity related risks: NIL.

b) Foreign currency exposure (Net) that are not hedged by forward contract as on 31st March 2011 amount to Rs.17,560.08 Lacs. (Previous Year Rs.12,250.82 Lacs)

16. Balance in Non Scheduled Bank includes balance with Rajgurunagar Sahakari Bank Ltd. Maximum Balance during the year Rs.22.55 Lacs (Previous Year Rs.21.52 Lacs).

17. Leases

The Company's leasing arrangements are mainly in respect of residential / office premises and plant & machinery. The aggregate lease rentals payable are charged as Rent under "Overheads" under Schedule 16 except otherwise treated.

Lease rental accrued based on the terms of contract are credited to Profit and Loss Account and included in "Other Income" under Schedule 12.

18. Foreign currency transactions on revenue accounts

a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the time of the transaction.

b) Monetary items denominated in foreign currencies at the year end and not covered by forward exchange contracts are translated at year end rates and those covered by forward exchange contracts are translated at the rate of forward exchange contract.

c) The company had exercised the option given in the Notification dated 31st March 2009 issued by the Central Government to amend the AS-11 "The Effects of Changes in Foreign Exchange Rates…" in the F. Y. 2008-09. The amount of unrealized exchange fluctuation on long term monetary items under the said option was parked under the "Foreign Currency Monetary Items Translation Difference Account (FCMITDA)". The balance outstanding to the debit of FCMITDA Rs.541.22 Lacs is being amortised in the current year and now stands at NIL. Effect of exercising this option is understatement of Profit for the year to the extent of Rs.541.22 Lacs.

d) The loss or gain due to fluctuation of exchange rate on revenue items is charged to Profit and Loss Account other than on the long term funds utilized for acquisition of fixed assets in India.

20. Sundry Creditors etc. include Acceptances of Rs.2,944.90 Lacs (Previous Year Rs.2,172.90 Lacs).

21. Trial run income and expenses are directly capitalized to the respective assets.

22. Figures for the previous year have been regrouped / reclassified wherever necessary to confirm with the current years classification.

23. There are no amounts due and outstanding to be credited to Investor's Education and Protection Fund.

24. All figures are in Rupees Lacs, rounded off to two decimal places.

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Mar 31, 2010

As on 31st As on 31st March 2010 March 2009 Rs. Lacs Rs. Lacs

1. Contingent Liabilities not provided for in respect of:

a) Counter guarantees given for subsidiary company 13,492.41 22,927.50

b) Disputed Income Tax matters in appeal 694.94 22.10

c) Estimated amount of contracts remaining to be executed 459.00 1,580.20 on capital account not provided for (Net of Advances)



2. The Term loan facilities sanctioned by the Banks and Institutions are secured by first charge on immovable and movable properties and second charge on current assets, both present and future under the Security Trustee Arrangement.

The working capital facilities sanctioned by the banks and Institutions are secured by first charge on current assets and second charge on immovable and movable properties, both present and future, under the Security Trustee Arrangement.

3. In absence of any intimation received from vendors regarding the status of their registration under "Micro, Small and Medium Enterprises Development Act 2006" the Company is unable to comply with the disclosure required to be made under the said Act.

4. a) The Company has issued Foreign Currency Convertible Bonds (FCCB) on 27th December 2005 amounting to USD 50 million.

No interest is payable on the Bonds. The Company will redeem each Bond (unless previously converted, redeemed or cancelled), at 145.270% of its principal amount on the Maturity Date which is 22nd December 2010. The outstanding Bonds of USD 11.83 million are convertible into fully paid equity shares at any time prior to close of business on 22nd November 2010 or will be redeemed as above.

The Bonds will be converted with a fixed rate of exchange of Rs. 45.7325 = USD 1.00 on conversion. The Conversion Price was reset to Rs.704/- as per the offering circular dated 16th December 2005. The price is further reset to Rs. 483.28. There is an option for the Company to redeem the Bonds in whole but not in part at any time on or after 21st December 2007 and prior to 22nd December 2010 subject to certain conditions.

In the opinion of the Management the above mentioned Convertible Bonds issued upon terms and conditions set out in the offering circular dated 16th December 2005, would be outside the purview of Section 117(C) of the Companies Act, 1956 as regards creation of Debenture Redemption Reserve.

b) During the year, the Company has alloted:

i) GDRs with 2,986,341 underlying Equity Shares of Rs.10/- each at Rs.515/- per share (including share premium of Rs.505/-) to Deutsche Bank Trustee Company Americas as the Depository.

ii) 2,493,484 Equity Shares of Rs.10/- each @ Rs.483.28 (including share premium of Rs.473.28) on conversion of 2,635 Foreign Currency Convertible Bonds.

Consequently, the paid-up equity share capital of the Company stands increased to Rs.2,268.79 lacs.

c) Expenses for increase in Authorized Share Capital, GDR issue and FCCBs conversion aggregating to Rs.97.41 lacs are debited to Securities Premium Account.

11. As required by Accounting Standard – AS 18 “Related Party Disclosures” issued by the Institute of Chartered Accountants of India are as follows:

a) Subsidiary Companies

i) Bilcare Singapore Pte Ltd.

ii) Bilcare GmbH; subsidiary of Bilcare Singapore Pte Ltd.;

iii) Bilcare Inc, subsidiary of Bilcare Singapore Pte Ltd.;

iv) Bilcare Farmacseutica Embalagem E Pesquisas Ltda, subsidiary of Bilcare Singapore Pte Ltd.;

v) Bilcare (UK) Ltd., subsidiary of Bilcare Singapore Pte Ltd.;

vi) Bilcare GCS (Europe) Ltd. subsidiary of Bilcare (UK) Ltd.

vii) Bilcare SA, subsidiary of Bilcare Singapore Pte Ltd.;

viii) Bilcare Technologies Singapore Pte. Ltd., subsidiary of Bilcare Singapore Pte Ltd.; and

ix) Bilcare Technologies Italia Srl., subsidiary of Bilcare Technologies Singapore Pte. Ltd.

b) The company is a 50% Joint Venture partner with MeadWestvaco Corp in International Labs, LLC.

c) Key Management Personnel

i) Mr. Mohan H. Bhandari (Managing Director) ii) Mr. Chandra Prakash Jaggi (Executive Director) iii) Dr. Praful R. Naik (Executive Director)

5. The Company is engaged in pharma packaging research solutions which as per Accounting Standard - AS 17 is considered the only reportable business segment by the Management in the light of the dominant source and nature of risks and returns, ocation of its production facilities and assets of the group and relied upon by the Auditors. As per AS 17 all reportable nformation as regards segment revenue, segment results, carrying amount of segment assets, segment liabilities, total cost of acquisition of segment assets and depreciation are fairly disclosed in the financial statements.

6. The Department of Company Affairs, Government of India vide its order No. 47/452/2010-CL-III issued under Section 212 (8) of the Companies Act, 1956 has exempted the Company from attaching a copy of Accounts of its subsidiaries for the financial year ended 31st March 2010. The disclosures as per the terms of above order have been provided.

7. Financial Instruments –

a) Financial contracts entered into by the company and outstanding as on 31st March 2010 - i) For hedging Currency and Interest Rate Related Risks: NIL (Previous Year NIL). ii) For hedging commodity related risks: NIL.

b) Foreign currency exposure (Net) that are not hedged by forward contract as on 31st March 2010 amount to Rs.12,250.82 Lacs. (Previous Year Rs.23,440.85 Lacs)

8. Balance in Non Scheduled Bank includes balance with Rajgurunagar Sahakari Bank Ltd. Maximum Balance during the year Rs.21.52 Lacs (Previous Year Rs.33.15 Lacs).

9. Foreign currency transactions on revenue accounts

a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the time of the transaction.

b) Monetary items denominated in foreign currencies at the year end and not covered by forward exchange contracts are translated at year end rates and those covered by forward exchange contracts are translated at the rate of forward exchange contract.

c) The company had exercised the option given in the Notification dated 31st March 2009 issued by the Centra Government to amend the AS-11 “The Effects of Changes in Foreign Exchange Rates…” in the previous year. The amount of unrealized exchange fluctuation on long term monetary items under the said option was parked under the “Foreign Currency Monetary Items Translation Difference Account (FCMITDA)”. The balance outstanding to the debit of FCMITDA Rs.541.22 Lacs will be amortised in the next year. Effect of exercising this option is understatement of Profit for the year to the extent of Rs.1,172.34 Lacs.

d) The loss or gain due to fluctuation of exchange rate on revenue items is charged to Profit and loss account other than on the long term funds utilized for acquisition of fixed assets in India.

10. Sundry Creditors etc. include Acceptances of Rs.2,172.90 Lacs (Previous Year Rs.1,473.25 Lacs).

11. Trial run income and expenses are directly capitalized to the respective assets.

12. Figures for the previous year have been regrouped / reclassified wherever necessary to confirm with the current years classification.

13. There are no amounts due and outstanding to be credited to Investors Education and Protection Fund.

14. All figures are in Rupees Lacs, rounded off to two decimal places.