Notes to Accounts of Denis Chem Lab Ltd.

Mar 31, 2025

16 Provisions & 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. When the Company expects some
or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised
as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is
presented in the statement of profit and loss net of any reimbursement.

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.

Contingent liability arises when the Company has:

a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or

b) a present obligation that arises from past events but is not recognised because:

(i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the
obligation; or

(ii) the amount of the obligation cannot be measured with sufficient reliability.

Contingent liabilities are not recorded in the financial statement but, rather, are disclosed in the note to the
financial statements.

17 Exceptional items

When items of income and expense within statement of profit and loss from ordinary activities are of such size,
nature or incidence that their disclosure is relevant to explain the performance of the enterprise for the period, the
nature and amount of such material items are disclosed separately as exceptional items.

18 The Ministry of Corporate Affairs (MCA) notified new Accounting Standards or amendments to the existing
standards. There is no such notification which would have been applicable from April 01,2020.

(B) Key accounting estimates

1 Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured
based on quoted prices in active markets, their fair value are measured using valuation techniques. The inputs to
these models are taken from observable markets where possible, but where this is not feasible, a degree of
judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity
risk, credit risk and volatility. Changes in assumptions relating to these factors could affect the reported fair value
of financial instruments. See Note 30 for further disclosures.

2 Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount,
which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal
calculation is based on available data from binding sales transactions, conducted at arm''s length, for similar assets

or observable market prices less incremental costs for disposing of the asset. The value in use calculation is
based on a discounted cashflow (DCF) model. The cash flows are derived from the budget and do not include
restructuring activities that the Company is not yet committed to or significant future investments that will enhance
the asset''s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used
for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation
purposes.

3 Taxes

Deferred tax assets are recognised for unused tax credits to the extent that it is probable that taxable profit will be
available against which the losses can be utilised. Significant management judgement is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable
profits together with future tax planning strategies.

4 Defined benefit plan

The cost of the defined benefit plans and other post-employment benefits and the present value of the obligation
are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may
differ from actual developments in the future. These include the determination of the discount rate, future salary
increases, mortality rates and future pension increases. Due to the complexities involved in the valuation and its
long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions
are reviewed at each reporting date.

The parameter that is subject to change the most is the discount rate. In determining the appropriate discount rate,
the management considers the interest rates of government bonds in currencies consistent with the currencies of
the post-employment benefit obligation and extrapolated as needed along the yield curve to correspond with the
expected term of the defined benefit obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at
intervals in response to demographic changes. Future salary increases are after considering the expected future
inflation rates for the country.

Refer note 31 for further details.

5 Property, Plant and Equipment

Refer to Note 3 (A) - 4 for the estimated useful life of Property, Plant and Equipment. The carrying values of
Property, plant and equipment have been disclosed in Note 4.

6 Intangible assets

Refer to Note 3 (A) - 6 for the estimated useful life of Intangible assets. The carrying values of Intangible assets
have been disclosed in Note 5.

7 Allowance for doubtful trade receivables

Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate
allowances for estimated irrecoverable amounts.

Estimated irrecoverable amounts are derived based on a provision matrix which takes into account various
factors such as customer specific risks, geographical region, product type, currency fluctuation risk, repatriation
policy of the country, country specific economic risks, customer rating, and type of customer, etc. Individual trade
receivables are written off when the management deems them not to be collectable.

I. Working Capital lerm Loan from Axis Bank Limited is secured against pari passu charge by way of mortgage of
land and building situated at Village- Chhatral, Taluka : Kalol, Dist Gandhinagar, and fixed-assets of the company
with other consortium bankers. Further it is also secured against pari pasu charge over entire current assets of
company (present & future) and by personal guarantee of the Managaing Director and CEO of the company. The
said loan is repayable in 48 monthly installments commencing from August, 2021. The said loan carries an interest
rate of 9.25 % p.a.

II. Working Capital Term Loan from Bank of India is secured against pari passu charge by way of mortgage of
company land and building situated at Village- Chhatral, Taluka : Kalol, Dist Gandhinagar, and fixed-assets of the
company with other consortium bankers.Further it is also secured against pari pasu charge over entire current
assets of company (present & future) and by personal guarantee of the Managaing Director and CEO of the
company The said loan is repayable in 36 monthly installments commencing from August, 2021. The said loan
carries an interest rate of 7.50 % p.a.

III. Working Capital Loans from the Axis Bank and Bank of India are secured against paripassu charge on current
assets (both present & future) and extension of paripassu charge by way of mortagage of company''s land &
Building situated at Village - Chhatral, Taluka : Kalol, Dist Gandhinagar. Further the same are having collarteral
securities by way of pari passu charge over entrie moveable fixed- assets ( present & future) except sepecfily
financed by other finance company and are also secured against personal guarantee of Managing Director and
CEO of the company. Rate of Interest on the above loans is 9.25% p.a.

The Company''s principal financial liabilities comprise of loans and borrowings, trade payables and other financial
liabilities. The loans and borrowings are primarily taken to finance and support the Company''s operations. The
Company''s principal financial assets include cash and cash equivalents, trade receivables and other financial
assets.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management
oversees the management of these risks. The Company''s senior management ensures that financial risk
activities are governed by appropriate policies and procedures and that financial risks are identified, measured
and managed in accordance with the Company''s policies and risk objectives. It is the Company''s policy that
no trading in financial instruments for speculative purposes may be undertaken.

1. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk
and other price risk, such as equity price risk or Net asset value(“NAV”) risk in case of investment in mutual
funds. Financial instruments affected by market risk include investments, trade receivables, trade payables,
loans and borrowings and deposits.

The sensitivity analysis in the following sections relate to the position as at March 31,2025 and as at March
31, 2024.

The sensitivity of the relevant profit and loss item is the effect of the assumed changes in respective market
risks. This is based on the financial assets and financial liabilities held at March 31,2025 and as at March
31, 2024.

2 Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily
trade receivables) and from its financing activities, including deposits with banks and financial institutions and
foreign exchange transactions.

T rade receivables

Customer credit risk is managed by the Company''s internal policies, procedures and control relating to customer
credit risk management. Credit quality of a customer is assessed based on an credit rating scorecard and credit
limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored
and any shipments to major customers are generally covered by letters of credit.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are
located in several jurisdictions and industries and operate in largely independent markets.

Trade receivables are non-interest bearing and are generally on 0 days to 60 days credit term. Credit limits are
established for all customers based on internal rating criteria. The Company has no concentration of credit risk as
the customer base is widely distributed both economically and geographically.

Cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department
in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties
who meet the minimum threshold requirements under the counterparty risk assessment process. The Company
monitors the ratings, credit spreads and financial strength of its counterparties. Based on its on-going assessment
of counterparty risk, the group adjusts its exposure to various counterparties. The Company''s maximum exposure
to credit risk for the components of the Balance sheet as of March 31,2025 and as at March 31, 2024 is the
carrying amount as disclosed in Note 8 and 11 except for financial guarantees. The Company''s maximum
exposure for financial guarantee is given in Note 36.

3 Liquidity Risk

The Company monitors its risk of shortage of funds through using a liquidity planning process that encompasses
an analysis of projected cash inflow and outflow.

The Company''s objective is to maintain a balance between continuity of funding and flexibility largely through
cashflow generation from its operating activities and the use of bank loans. The Company assessed the concentration
of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient
variety of sources of funding.

The table below summarises the maturity profile of the Company''s financial liabilities (including future interest
payable) based on contractual undiscounted payments.

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity
reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management
is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise
shareholder''s value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and
the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the
dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital
using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes, within net debt,
interest bearing loans and borrowings, trade and other payables, less cash and short-term deposits.

NOTE 39 : SEGMENT REPORTING

In the opinion of the management, there is only one reportable segment (“Manufacturing, and Sales of Transfusion
Solution in Bottles) as envisaged by Indian Accounting Standard 108 “Segment Reporting”. Further, from a geographical
segment perspective, export sales constitute less than 10% of enterprise revenues. Accordingly, no separate disclosure
for segment reporting is required to be made in the financial statements of the Company.

Note 42: Events occurred after balance sheet date:

The Board of Directors of the company has recommended a final dividend of Rs. 1.50 per equity share of face
value of Rs. 10/- each (15%)for the year ended March 31, 2025, subject to the approval of the members at
the ensuing annual general meeting.

Note 43: Code of social security, 2020

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions
by the Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released
draft rules for the Code on Social Security, 2020 on November 13, 2020 and has invited suggestions from the
stakeholders which are under active consideration by the Ministry. The Company will assess the impact and
its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in
the period in which, the said code become effective including related rules framed thereunder to determine the
financial impact are published.

Note 44:

Previous year figures have been regrouped/reclassified wherever necessary to confirm to this year''s classification.
Note 45 : Other Statutory Information

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

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

(iii) The Company does not have any transaction with struck-off companies.

(iv) The Company does not have any charge or satisfaction which is yet to be registered with Registrar of
Companies (ROC) beyond the statutory period.

(v) 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.

(vi) 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.

(vii) 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).

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

Note-46

As per the requirements of Rule 3(1) of the Companies (Accounts) Rules 2014, the Company uses only such
accounting software for maintaining its books of account that has a feature of, recording the audit trail of each
and every transaction, creating an edit log of each change made in the books of account along with the date
when such changes were made and who made those changes within such accounting software. This feature
of recording audit trail has operated throughout the year and was not tampered with during the year. Additionally,
the audit trail has been preserved by the Company as per the statutory requirements for record retention.

Explanations/Justifications for variance in Ratios for more than 25% as compared to preceding financial
year:

(a) During the year under review there is no current maturity of the long term borrowings as the term loans
have been fully paid and interest on term loan has also reduced which improved the Debt Service Coverage
Ratio (DSCR) of the Company.

(b) During the year under review, on account of increase in input costs the margins have remained under
pressure which adversely impacted Return on Equity ratio, Net Profit Ratio and ratio of Return on capital
employed.

Note-48

The Financial statements are approved for issue by the Audit Committee and Board of Directors at their
respective meetings held on 30th May, 2025

As per our Report of even date ^{For and on behalf of the Board of Directors}

M/S. SHAH & SHAH ASSOCIATES

Chartered Armuntanta Mr. Dinesh B. Patel Dr. Himanshu C. Patel

FRN l’13742W ^{f fS} DIN : 00171089 DIN : 00087114

Chairman Managing Director

VASANT C. TANNA M Y''^{kram R}; J°f^hi

Partner Chief Financial Officer

Membership No. 100422 ^Ms. ^{Anar H}. ^Patel

Place : Ahmedabad ^Mrs. ^{Anal Desai} DIN : 01335025

Date : 30th May, 2025 Company Secretary Director

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Mar 31, 2024

Terms/ rights attached to equity shares:

The Company has only one class of equity shares having par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share held. 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 shareholder.

As per the records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares

Nature and purpose of reserves

Capital profit on forfeiture of equity shares:

The profit on forfeiture of equity shares for non payment of call money being capital in nature is showan as capital profit on forfeiture of equity shares.

Cash subsidy:

Subsidy received in cash from state government in accordance with its policy/resolution is shown as cash subsidy. General reserve

General reserve is created from time to time by way of appropriation of profits from retained earnings . General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

Security premium

The amount received in excess of face value of the equity shares, in relation to issuance of equity, is recognised in Securities Premium account.

Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to the shareholders.

I. Working Capital Term Loan from Axis Bank Limited is secured against pari passu charge by way of mortgage of land and building situated at Village- Chhatral, Taluka : Kalol, Dist Gandhinagar, and fixed-assets of the company with other consortium bankers. Further it is also secured against pari pasu charge over entire current assets of company (present & future) and by personal guarantee of the Managaing Director and CEO of the company. The said loan is repayable in 48 monthly installments commencing from August, 2021. The said loan carries an interest rate of 8.25 % p.a.

II. Working Capital Term Loan from Bank of India is secured against pari passu charge by way of mortgage of company land and building situated at Village- Chhatral, Taluka : Kalol, Dist Gandhinagar, and fixed-assets of the company with other consortium bankers.Further it is also secured against pari pasu charge over entire current assets of company (present & future) and by personal guarantee of the Managaing Director and CEO of the company The said loan is repayable in 36 monthly installments commencing from August, 2021. The said loan carries an interest rate of 7.50 % p.a.

III. Working Capital Loans from the Axis Bank and Bank of India are secured against paripassu charge on current assets (both present & future) and extension of paripassu charge by way of mortagage of company''s land & Building situated at Village - Chhatral, Taluka : Kalol, Dist Gandhinagar. Further the same are having collarteral securities by way of pari passu charge over entrie moveable fixed- assets ( present & future) except sepecfily financed by other finance company and are also secured against personal guarantee of Managing Director and CEO of the company. Rate of Interest on the above loans is 9.70% p.a.

B. Defined benefit plans (Gratuity):

The Company has following post employment benefits which are in the nature of defined benefit plans: The Company operates gratuity plan wherein every employee is entitled to the benefit as per scheme of the Company, for each completed year of service. The benefit vests only after five years of continuous service, except in case of death/disability of employee while in service. The vested benefit is payable on separation from the Company, on retirement, death or termination.

C. Other Long term employee benefit plans

Leave encashment : The Company has also made provision in respect of Liability towards Leave Encashment Of Rs.18.48 Lakh (P.Y.: Rs. 9.79 Lakh) as per actuarial valuation in respect of accumulated leave/compensated absences.

1 The amount in bracket represents the figures in respect of previous years.

2. The transaction with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash other than for advance

3. The related party as well as transaction shown above is as certified by the Managing Director of the Company and accepted as such by the auditors

4. The Company has not provided any commitment to the related party as at 31st March,2024 (31st March,2023: Nil)

*including Goods & Service Tax

Note 34 : Financial risk management

The Company''s principal financial liabilities comprise of loans and borrowings, trade payables and other financial liabilities. The loans and borrowings are primarily taken to finance and support the Company''s operations. The Company''s principal financial assets include cash and cash equivalents, trade receivables and other financial assets.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management ensures that financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. It is the Company''s policy that no trading in financial instruments for speculative purposes may be undertaken.

1. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk or Net asset value(“NAV”) risk in case of investment in mutual funds. Financial instruments affected by market risk include investments, trade receivables, trade payables, loans and borrowings and deposits.

The sensitivity analysis in the following sections relate to the position as at March 31,2024 and as at March

31.2023.

The sensitivity of the relevant profit and loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31,2024 and as at March

31.2023.

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 long-term debt obligations with floating interest rates.

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment, showing a significantly higher volatility than in prior years.

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, i.e. when revenue or expense is denominated in a foreign currency.

2 Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and foreign exchange transactions.

Trade receivables

Customer credit risk is managed by the Company''s internal policies, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an credit rating scorecard and credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

Trade receivables are non-interest bearing and are generally on 0 days to 60 days credit term. Credit limits are established for all customers based on internal rating criteria. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically.

Cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties who meet the minimum threshold requirements under the counterparty risk assessment process. The Company monitors the ratings, credit spreads and financial strength of its counterparties. Based on its on-going assessment of counterparty risk, the group adjusts its exposure to various counterparties. The Company''s maximum exposure to credit risk for the components of the Balance sheet as of March 31,2024 and as at March 31,2023 is the carrying amount as disclosed in Note 8 and 11 except for financial guarantees. The Company''s maximum exposure for financial guarantee is given in Note 36.

3 Liquidity Risk

The Company monitors its risk of shortage of funds through using a liquidity planning process that encompasses an analysis of projected cash inflow and outflow.

The Company''s objective is to maintain a balance between continuity of funding and flexibility largely through cashflow generation from its operating activities and the use of bank loans. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding.

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder''s value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes, within net debt, interest bearing loans and borrowings, trade and other payables, less cash and short-term deposits.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period. No changes were made in the objectives, policies or processes for managing capital during the years ended as at March 31,2024 and March 31,2023.

NOTE 36 : CONTINGENT LIABILITIES	(Amount Rs.In Lakhs)
Particulars	As at	As at
	March 31,2024	March 31,2023
(a) Guarantees given by the Bankers on behalf of the Company	300.33	333.12
(b) Letter of credit outstanding amount	-	-
NOTE 37 : COMMITMENTS AND OBLIGATIONS Estimated amount of contracts remaining to be executed on capital account (Net of Advance paid)	60.78	196.27

NOTE 38 : DISCLOSURE OF MICRO, SMALL AND MEDIUM ENTERPRISES

No disclosure have been made under the Micro, Small and Medium Enterprises Development Act, 2006 in Note 20, for the year 2023-24. The company has undertaken that it has made sufficient efforts to get the necessary information from the “suppliers” regarding their status under the Act. This has been relied upon by the Auditors.

NOTE 39 : SEGMENT REPORTING

In the opinion of the management, there is only one reportable segment (“Manufacturing, and Sales of Transfusion Solution in Bottles) as envisaged by Indian Accounting Standard 108 “Segment Reporting”. Further, from a geographical segment perspective, export sales constitute less than 10% of enterprise revenues. Accordingly, no separate disclosure for segment reporting is required to be made in the financial statements of the Company.

The Company''s CSR projects are aligned to benefit the needy and underprivileged people of the society. During the year, the Company has undertaken its social activities and projects in the fields of women and youth empowerment, educational support, health & hygeine awareness and relief to poor etc;

Note 42: Events occurred after balance sheet date:

The Board of Directors of the company has recommended a final dividend of Rs. 2.50 per equity share of face value of Rs. 10/- each (25%)for the year ended March 31, 2024, subject to the approval of the members at the ensuing annual general meeting.

Note 43: Code of social security, 2020

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020 and has invited suggestions from the stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the said code become effective including related rules framed thereunder to determine the financial impact are published.

Previous year figures have been regrouped/reclassified wherever necessary to confirm to this year''s classification. Note 45 : Other Statutory Information

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

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

(iii) The Company does not have any transaction with struck-off companies.

(iv) The Company does not have any charge or satisfaction which is yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

(v) 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.

(vi) 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.

(vii) 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).

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

Note-46 Audit Trail

As per the requirements of Rule 3(1) of the Companies (Accounts) Rules 2014, the Company uses only such accounting software for maintaining its books of account that has a feature of, recording the audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and who made those changes within such accounting software. This feature of recording audit trail has operated throughout the year and was not tampered with during the year.

Note-47

The Financial statements are approved for issue by the Audit Committee and Board of Directors at their respective meetings held on 28th May, 2024

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Mar 31, 2018

Note 1 : Corporate Information

The standalone financial statements comprise of financial statements of Denis Chem Lab Limited (the “Company”) for the year ended March 31, 2018. The Company is a public Company domiciled in India and is incorporated under the provisions of the Companies Act ,1956. The Company’s shares are listed on BSE, a recognised stock exchange, in India. The registered office of the Company is located at Block No. 457, Village: Chhatral, Tal: Kalol (N.G.), Dist: Gandhinagar - 382 729. The Company is engaged in the business of manufacturing of Pharmaceuticals Transfustion Solution in Bottles.

The standalone financial statements were authorised for issue in accordance with a resolution of the board of directors on May 24, 2018.

Note 2 : Basis of preparation

The standalone financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015.

For all periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with the accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). These financial statements are the Company’s first standalone financial statements prepared in accordance with Ind AS based on the permissible options and exemptions available to the Company in terms of Ind AS 101 ‘First time adoption of Indian Accounting standards’. Reconciliations and descriptions of the effect of the transition have been summarized in Note 5.

The standalone financial statements have been prepared on a historical cost basis, on the accrual basis of accounting except for certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).

The standalone financial statements are presented in Indian Rupees and all values are rounded to the nearest Rupees, except where otherwise indicated. Any discrepancies in any table between totals and sums of the amounts listed are due to rounding off.

(A) Key accounting estimates

1 Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value are measured using valuation techniques. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions relating to these factors could affect the reported fair value of financial instruments. See Note 31 for further disclosures.

2 Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cashflow (DCF) model. The cash flows are derived from the budget and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset’s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.

3 Taxes

Deferred tax assets are recognised for unused tax credits to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

The Company has Rs.87,33,115 as at March 31, 2018 (Rs.40,52,260 as at March 31, 2017 and Rs.NIL as at April 1, 2016) of tax credits carried forward. These credits can be utilised over the period of 15 years. The Company has taxable temporary difference and tax planning opportunities available that could support the recognition of these credits as deferred tax assets. On this basis, the Company has determined that it can recognise deferred tax assets on the tax credits carried forward. Refer to Note 22 for further details.

4 Property, Plant and Equipment

Refer to Note 3 (A) - 4 for the estimated useful life of Property, Plant and Equipment. The carrying values of Property, plant and equipment have been disclosed in Note 6.

5 Intangible assets

Refer to Note 3 (A) - 7 for the estimated useful life of Intangible assets. The carrying values of Intangible assets have been disclosed in Note 7.

6 Allowance for doubtful trade receivables

Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts.

Estimated irrecoverable amounts are derived based on a provision matrix which takes into account various factors such as customer specific risks, geographical region, product type, currency fluctuation risk, repatriation policy of the country, country specific economic risks, customer rating, and type of customer, etc. The allowances for doubtful trade receivables were Rs.6,07,736/- as at March 31, 2018 (as at March 31, 2017 : Rs. NIL and April 1, 2016 : Rs.NIL).

Individual trade receivables are written off when the management deems them not to be collectable.

Note 3 : Recent accounting pronouncements Standards issued but not yet effective

The amendments to standards that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective. The Ministry of Corporate Affairs(“MCA”) has issued certain amendments to Ind AS through (Indian Accounting Standards) Amendment Rules, 2018. These amendments maintain convergence with IFRS by incorporating amendments issued by International Accounting Standards Board(IASB) into Ind AS and has amended the following standards:

1. Ind AS 115-Revenue from Contract with Customers

2. Ind AS 21 -The effect of changes in foreign exchanges rates

3. Ind AS 40-Investment Property

4. Ind AS 12-Income Taxes

5. Ind AS 28-Investment in Associates and Joint Ventures

6. Ind AS 112-Disclosure of Interest in Other Entities

These amendments are effective for annual periods beginning on or after April 01, 2018. Applicationof these amendments will not have any recognition and measurement impact. However, it will require additional disclosure in the financial statements.

The Company is assessing the potential effect of the amendments on its financial statements. The Company will adopt these amendments, if applicable, from their applicability date.

Note 4 : TRANSITION TO IND AS

These financial statements are the Company’s first standalone financial statements prepared in accordance with Ind AS based on the permissible options and exemptions available to the Company in terms of Ind AS 101 ‘First time adoption of Indian Accounting standards’. For periods up to and including the year ended on March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (previous GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at April 1, 2016, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its previous GAAP financial statements, including the balance sheet as at April 1, 2016 and the financial statements as at and for the year ended March 31, 2017.

4.1 Optional exemptions availed

1 Fair value measurement of financial assets or financial liabilities at Initial Recognition

Company has elected to apply requirement in paragraph B5.1.2A of Ind AS 109 prospectively to transactions entered into on or after the date of transition to Ind ASs.

2 Deemed Cost

The Company has elected to measure all its intangible assets at the previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS.

4.2 Applicable mandatory exceptions

1 Estimates

The estimates at April 1, 2016 and at March 31, 2017 are consistent with those made for the same dates in accordance with previous GAAP (after adjustments to reflect any differences in accounting policies, if any) apart from the following items where application of previous GAAP did not require estimation:

- FVTPL investments

- FVTOCI - debt securities

- Impairment of financial assets based on expected credit loss model

2 Classification and measurement of financial assets

As required under Ind AS 101, the classification of financial assets to be measured at amortised cost or fair value through other comprehensive income is made on the basis of the facts and circumstances that existed on the date of transition to Ind AS.

Notes :

i Amortisation of loan processing charges

Under previous GAAP, the loan processing charges were normally recognised as expense as and when incurred. Under Ind AS, borrowings have been measured at amortised cost using effective interest rate. This has resulted into amortisation of loan processing charges over the period of borrowings.

3. Adjustments to Statement of Cash Flows for the year ended 31^st March, 2017

There were no material differences between the Statement of Cash Flows presented under Ind AS and the Previous GAAP.

The Company has one class of equity shares having par value of Rs.10 each. Each shareholder is eligible for one vote per share held. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to shareholding

The Board of Director of a Company, at their meeting held on 12^th December, 2015, and as approved by the members at their extra ordinary general meeting held on 12^th December, 2015, had issued and alloted 27,00,000 preferential warrants to non promoters as per SEBI ICDR guidelines at a price of Rs 60 per warrant,entitling the holder of such warrants to apply for and obtain one equity share of face value of Rs. 10/- each fully paid up against each warrant on or before 18 month from the date of allotment i.e. 12^th December, 2015. During the previous financial year, these warranrs were converted into equity shares with a premium of Rs 50 per share resulting in increase in share capital by Rs. 2,70,00,000/During the year, the company has allotted 21,34,872 equity shares of face value of Rs. 10 each at a price of Rs. 84/per equity share (including a premium of Rs. 74/- per equity share) on rights basis. Pursuant to which, the paid-up share capital of the company stands increased to Rs. 13,87,66,680 divided into 1,38,76,668 equity shares of Rs. 10/- each.

NOTE - 5 : OTHER EQUITY

Refer to the statement of changes in equity for movement in Other equity.

Nature and purpose of reserves

Capital profit on forfeiture of equity shares:

The profit on forfeiture of equity shares for non payment of call money being capital in nature is showan as capital profit on forfeiture of equity shares.

Cash subsidy:

Subsidy received in cash from state government in accordance with its policy/resolution is shown as cash subsidy. General reserve

General reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

Security premium

The amount received in excess of face value of the equity shares, in relation to issuance of equity, is recognised in Securities Premium.

Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to the shareholders.

I. Loan from Axis Bank Limited is secured against pari passu charge by way on mortgage on land and building situated at Village- Chhatral, Taluka : Kalol, Dist Gandhinagar, and fixed-assets of the company with other consortium bankers. Further it is also secured against pari pasu over entire current assets of company (present & future) and by personal guarantee of the Managaing Director and CEO of the Company.The said loan is repayable in 71 monthly installments of 17.30 Lakhs commencing from December-2014. The said loan carries an interest rate of 13.75 %.

II. Loan from Bank of India is secured against pari passu charge by way on mortgage on company land and building situated at Village- Chhatral, Taluka : Kalol, Dist Gandhinagar, and fixed-assets of the company with other consortium bankers Further it is also secured against pari pasu over entire current assets of company (present & future) and by personal guarantee of the Managaing Director and CEO of the Company The said loan is repayable in 72 monthly installments commencing from April-2015. The said loan carries an interest rate of 14.10 %.

III. Loan from Life Insurance Corporation of India is Secured against assignment of Keyman Insurance Policy .

IV. Machinery loan from Intec Capital Limited amounting to ‘ NIL (As at 31.03.2017 Rs. 22.18 Lakhs and As at 01.04.2016 Rs. 45.57 Lakhs) and Reliance Capital Limited amounting to NIL (As at 31.03.2017 NIL and As at 01.04.2016 Rs. 140.82 Lakhs) are secured against hypothecation of concerned machinery.

V. Vehicle Loan from Kotak Mahendra Bank Ltd & Hdfc Bank Limited amounting to Rs. 5.36 Lakhs (As at 31.03.2017 Rs. 8.46 Lakhs and As at 01.04.2016 Rs. 4.67 lakhs) is secured against hypothecation of vehicle.

VI. Working Capital Loans from the Axis Bank and Bank of India are secured against paripassu charge on current assets (both present & future) and extension of paripassu charge by way of mortagage of Companys land situated at Village - Chhatral, Taluka : Kalol, Dist Gandhinagar. Further the same are having collarteral securities by of paripassu over entrie moveable fixed- assets ( present & future) except sepecfily finance by other finance Company and are also secured against personal guarantee of Managing Director and CEO of the Company.

Note : Post Implementation of Goods and service Tax (GST) with effect from July 1, 2017, revenue from operations is disclosed net of GST. Revenue from the operations for the year ended March 31, 2018 includes excise duty till June 30,2017 only. Accordingly, revenue from operations for the year ended March 31, 2018 are not comparable with those of previous periods presented.

NOTE - 6 :Related Party Transactions as per Indian Accounting Standard 24:

The disclosure in pursuance to Indian Accounting Standard 24 on “Related Party disclosures” is as under:

i) Associate Company : Denis Plast Limited (up to 15^th February, 2017)

Vadan Marketing Pvt Ltd

ii) Key Management Personnel & their relatives : Dr. Himanshu C. Patel(Managing Director)

Dr. Himanshu C. Patel (HUF)

Mr. Nirmal H. Patel (Chief Executive Officer)

Mrs. Khushbu H. Shah (Company Secretary)

iii) Directors : Mr. Dinesh B. Patel

Dr. Gaurang Dalal Mrs. Anar H. Patel Mr. Janak G. Nanavaty Mrs. Gauri S. Trivedi

Enterprise owned or significantly influenced by key management personnel or their relatives: a) Transactions with the Related Parties during the period :

Note:

1 The amount in bracket represents the figures in respect of previous years.

2. The transaction with related parties are made on terms equivalent to those that prevail in arm’s length transactions.

3. The related party as well as transaction shown above is as certified by the Managing Director of the Company.

Note 7 : Financial risk management

The Company’s principal financial liabilities comprise of loans and borrowings, trade payables and other financial liabilities. The loans and borrowings are primarily taken to finance and support the Company’s operations. The Company’s principal financial assets include investments, loans, cash and cash equivalents, trade receivables and other financial assets.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management ensures that financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. It is the Company’s policy that no trading in financial instruments for speculative purposes may be undertaken.

1. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk or Net assset value(“NAV”) risk in case of investment in mutual funds. Financial instruments affected by market risk include investments, trade receivables, trade payables, loans and borrowings and deposits.

The sensitivity analysis in the following sections relate to the position as at March 31, 2018 and March 31, 2017.

The sensitivity of the relevant profit and loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2018 and March 31, 2017.

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 long-term debt obligations with floating interest rates.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on loans and borrowings. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment, showing a significantly higher volatility than in prior years.

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, i.e. when revenue or expense is denominated in a foreign currency.

Given below is the foreign currency exposure arising from the non derivative financial instruments:

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD and EURO exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities.

2 Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and foreign exchange transactions.

Trade receivables

Customer credit risk is managed by the Company’s internal policies, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an credit rating scorecard and credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

Trade receivables are non-interest bearing and are generally on 0 days to 60 days credit term. Credit limits are established for all customers based on internal rating criteria. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically.

Cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties who meet the minimum threshold requirements under the counterparty risk assessment process. The Company monitors the ratings, credit spreads and financial strength of its counterparties. Based on its on-going assessment of counterparty risk, the group adjusts its exposure to various counterparties. The Company’s maximum exposure to credit risk for the components of the Balance sheet as of March 31, 2018, March 31, 2017 & April 1, 2016 is the carrying amount as disclosed in Note 9 and 12 except for financial guarantees. The Company’s maximum exposure for financial guarantee is given in Note 34.

3 Liquidity Risk

The Company monitors its risk of shortage of funds through using a liquidity planning process that encompasses an analysis of projected cash inflow and outflow.

The Company’s objective is to maintain a balance between continuity of funding and flexibility largely through cashflow generation from its operating activities and the use of bank loans. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding.

Note 8 : Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder’s value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes, within net debt, interest bearing loans and borrowings, trade and other payables, less cash and short-term deposits.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2018, March 31, 2017 and April 1, 2016.

NOTE 9 : DISCLOSURE OF MICRO, SMALL AND MEDIUM ENTERPRISES

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hense disclosures as required under section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 have not been made. The Compnay is making efforts to get the confirmations from the suppliers as regard to their status under the said Act.

NOTE 10 : SEGMENT REPORTING

In the opinion of the management, there is only one reportable segment (“Manufacturing, and Sales of Transfusion Solution in Bottles) as envisaged by Indian Accounting Standard 108 “Segment Reporting”. Further, from a geographical segment perspective, export sales constitute less than 10% of enterprise revenues. Accordingly, no separate disclosure for segment reporting is required to be made in the financial statements of the Company.

NOTE 11 : EMPLOYEE BENEFITS

Benefits by way of gratuity and leave encashment payble to retiring employees are measuered and accounted for in accordance with the present accounting policy of the Company as stated in Note 3A.14. The Company is taking adequate steps and process to get these liabilities valued by Acturian and the difference shall be accounted for in subsequent year. However, in the opinion of the management of the Company, no material or significant shortfall shall arise.

ii The presentation requirements under previous GAAP differs from Ind AS, and hence, previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The regrouped previous GAAP information is derived from the standalone financial statements of the Company prepared in accordance with previous GAAP.

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Mar 31, 2016

The Company has one class of equity shares having par value of Rs.10 each. Each shareholder is eligible for one vote per share held. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to shareholding.

D. The Board of Director of a company, at their meeting held on 12th December, 2015, and as approved by the members at their extra ordinary general meeting held on 12th December, 2015, have issued and alloted 27,00,000 preferential warrants to non promoters as per SEBI ICDR guidelines at a price of Rs.60 per warrant, entitling the holder of such warrants to apply for and obtain one equity share of face value of Rs.10/- each fully paid up against each warrant on or before 18 month from the date of allotment i.e. 12th December, 2015. 25% of the said price of warrant was paid up on subscription and balance 75% is to be paid upon exercise of entitlement to convert into equity shares as stated above .

I. Corporate loan from Axis Bank Limited is secured against first pari passu charge on the land at Block No. 460 and land at block No.457 of Village- Chhatral, Taluka : Kalol, Dist Gandhinagar, Plant and Machinery of the company with other consortium banks, fixed assets to be acquired out of bank finance with other consortium lenders. Further it is also secured against second charge on respective units of immovable properties & by personal guarantee of the Managaing Director of the company.

II. Corporate loan from Bank of India is secured against first pari passu charge on the land at Block No. 460 and land at block No.457 of Village- Chhatral, Taluka : Kalol, Dist Gandhinagar, Plant and Machinery of the company with other consortium banks, fixed assets to be acquired out of bank finance with other consortium lenders. Further it is also secured against second charge on respective units of immovable properties & by personal guarantee of the Managaing Director of the company.

III. Loan from Life Insurance Corporation of India is Secured against assignment of Keyman Insurance Policy .

IV. Machinery loan from Intec Capital Limted amounting to Rs.45.57 Lakhs (Previous year Rs.60.00 Lakhs) and Reliance Capital Limited amounting to Rs.140.82 Lakhs (Previous year Rs.39.89 Lakhs) are secured against hypothecation of concerned machinery.

V. Vehicle Loan from Kotak Mahendra Bank Ltd. amounting to Rs.4.67 Lakhs (Previous year Rs.6.21 Lakhs) is secured against hypothecation of vehicle.

I. Working Capital Loans from the Axis Bank is Secured against equitable mortagage of land situated at Block No . 460 of Village - Chhatral, Taluka : Kalol, Dist Gandhinagar. and exclusive charge by way of Stocks of Raw Materials, Work - in- Process , Finish Goods, Consumable Stores and Spares and such other movables including Book Debts. Further it is also secured against personal guarantee of Managing Director of the company.

II. Working Capital Loans from the Bank of India is Secured against equitable mortagage of land situated at Block No. 460 of Village - Chhatral, Taluka : Kalol, Dist Gandhinagar. and exclusive charge by way of Stocks of Raw Materials, Work - in- Process , Finish Goods, Consumable Stores and Spares and such other movables including Book Debts. Further it is also secured against personal guarantee of Managing Director of the company.

b) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.2,69,22,334/- (Previous Year Rs.5,10,47,302/-)

c) Balances of Debtors, Creditors and Loans and Advances in the Balance Sheet are subject to confirmation.

d) In the opinion of the management of the Company, provisions for all known liabilities have been made in the books of accounts. Further, the current assets and liabilities are stated at the value realizable in the ordinary course of business.

f) Under the Micro, Small and Medium Enterprises Development Act, 2006; certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The company is in the process of compiling relevant information from its suppliers about their coverage under the Act. Since the relevant information is not available, no disclosures have been made in the accounts.

g) The management of the company has carried out an exercise to ascertain impairment of Fixed Assets. In the opinion of the management of the company there are no indications of impairment of assets as at 31/03/2016 and therefore no effect of impairment is required to be given in the books of accounts.

i) C.I.F. Value of Imports in respect of Raw Materials : Nil (Previous Year Rs.3,71,484/-)

j) F.O.B. Value of Exports in respect of Goods : Rs.5,42,04,007/-(Previous Year Rs.4,21,72,467/-)

Note: The amount in bracket represents the figures in respect of previous year.

The related party as well as transaction shown above is as certified by the Managing Director of the Company.

l) The figures of previous year have been regrouped wherever necessary.

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Mar 31, 2015

Corporate Information:

Denis Chem Lab Limited is public limited company domiciled in India and incorporated in 1982 under the provisions of Companies Act, 1956. Its shares are listed on BSE in India. The company is engaged in the business of manufacturing of Pharmaceutical Products.

1) Contingent Liability not provided for:

Particulars As At As At 31-03-2015 31-03-2014 Rs. Rs.

i) In respect of counter guarantee 4,88,32,782 3,79,67,223 given by the bank

ii) Disputed demand not acknowledged as debt against which the company has preferred appeal:

Sales Tax 10,117,774 10,151,901

Income Tax 12,96,280 3,55,690

2) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.5,10,47,302/- (Previous Year Rs. 21,37,05,000/-)

3) Balances of Debtors, Creditors and Loans and Advances in the Balance Sheet are subject to confirmation.

4) In the opinion of the management of the Company, provisions for all known liabilities have been made in the books of accounts. Further, the current assets and liabilities are stated at the value realisable in the ordinary course of business.

5) Under the Micro, Small and Medium Enterprises Development Act, 2006; certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The company is in the process of compiling relevant information from its suppliers about their coverage under the Act. Since the relevant information is not available, no disclosures have been made in the accounts.

6) The management of the company has carried out an exercise to ascertain impairment of Fixed Assets. In the opinion of the management of the company there are no indications of impairment of assets as at 31/03/2015 and therefore no effect of impairment is required to be given in the books of accounts.

7) Unsecured Loans:

Unsecured loan from banks includes a sum of Rs. Nil (Previous year Rs. 4,12,813/-) borrowed from the different banks for the purpose of the business of the company sanctioned to Managing Director of the company in his personal capacity.

8) C.I.F. Value of Imports in respect of Raw Materials : Rs. 3,71,484/-(Previous Year Rs. 13,44,980/-)

9) F.O.B. Value of Exports in respect of Goods : Rs. 4,21,72,467/-

10) RELATED PARTY DISCLOSURES:-

a) Name of the Related Parties:-

i) Associate Company : Denis Plast Limited

ii) Key Management Personnel : Dr. Himanshu C. Patel

& their relatives : Dr. Himanshu C. Patel (HUF)

Mr. Nirmal H. Patel

iii) Directors : Shri Dinesh B. Patel

Dr. Gaurang Dalal

Ms. Anar H. Patel

Ms. Gauri S. Trivedi

Mr. Janak G. Nanavaty

The related party as well as transaction shown above is as certified by the Managing Director of the Company.

11) The figures of previous year have been regrouped wherever necessary.