Notes to Accounts of Gennex Laboratories Ltd.

Mar 31, 2025

2.21. Provision and Contingencies

Provisions are recognised when the Company has a present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources will be required to settle the obligation and the
amount can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management''s best estimate of the expenditure required
to settle the present obligation at the end of the reporting period. The discount rate used to determine
the present value is a pre-tax rate that reflects current market assessments of the time value of money
and the risks specific to the liability. The increase in the provision due to the passage of time is recognised
as interest expense.

A disclosure for contingent liabilities is made when there is a possible obligation arising from past
events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the Company or a present obligation that
arises from past events where it is either not probable that an outflow of resources embodying economic
benefits will be required to settle or a reliable estimate of the amount cannot be made.

2.22. Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer
at the discretion of the Company, on or before the end of the reporting period but not distributed at the
end of the reporting period.

2.23. Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

the profit attributable to owners of the Company by the weighted average number of equity shares
outstanding during the financial year

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share
to take into account:

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Mar 31, 2024

2.21. Provision and Contingencies

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

A disclosure for contingent liabilities is made when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources embodying economic benefits will be required to settle or a reliable estimate of the amount cannot be made.

2.22. Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the Company, on or before the end of the reporting period but not distributed at the end of the reporting period.

2.23. Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

• the profit attributable to owners of the Company

• by the weighted average number of equity shares outstanding during the financial year (ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

• the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

• the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

2.24.Segment Reporting

The Company is engaged in manufacture of Bulk Drugs & Intermediates which in the context of Accounting Standard - 17 issued by the Institute of Chartered Accountants of India is considered as a single segment- Ref. Note 31D.

2.25. Critical estimates and judgments

The preparation of financial statements in conformity with Ind AS requires management to make judgements, estimates and assumptions, that affect the application of accounting policies and the reported amounts of assets, liabilities, income, expenses and disclosures of contingent assets and liabilities at the date of these financial statements and the reported amounts of revenues and expenses for the years presented. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed at each Balance Sheet date. Revisions to accounting estimates are recognised in the period in which the estimate is revised and future periods affected.

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. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgements are:

• Employee benefits (estimation of defined benefit obligation)

Post-employment benefits represent obligations that will be settled in the future and require assumptions to project benefit obligations. Post-employment benefit accounting is intended to reflect the recognition of future benefit costs over the employee''s approximate service period, based on the terms of the plans and the investment and funding decisions made. The accounting requires the Company to make assumptions regarding variables such as discount rate and salary growth rate. Changes in these key assumptions can have a significant impact on the defined benefit obligations.

• Impairment of trade receivables

The risk of un-collectability of trade receivables is primarily estimated based on prior experience with, and the past due status of, doubtful debtors, based on factors that include ability to pay, bankruptcy and payment history. The assumptions and estimates applied for determining the provision for impairment are reviewed periodically.

• Estimation of expected useful lives of property, plant and equipment

Management reviews its estimate of the useful lives of property, plant and equipment at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of property, plant and equipment.

Employees Benefits:-

32. Company has not renewed the Group Gratuity Scheme with LIC.

Therefore, Gratuity Valuation has been done through independent agency as per Ind AS 19. As per the Valuation made by the Independent

Agency, the present accrued gratuity comes to ? 1128106/-(previous Year ^ 1144391) on estiamate of discounts @ 7.10% (7.37%) and escalation on salary @ 5% (5%).

Employees Benefits:-

33. Defined Contribution Plan:

Contribution to defined contribution plan, recognized as expenses for the year are as under:

Employer’s Contribution to Provident/Pension Fund - ^2302893/- (Previous Year ^.2194012/-)

The Company contributes applicable rates of salary of all eligible employees towards Provident Fund managed by the Central Government.

Leave Encashment: -

The Company has provided a sum of ? (1525829) (Previous Year ^ 625487) towards Leave encashment based on actuarial valuation.

34. Balance in Advances, Deposits, Unsecured loans, other Liabilities, Trade Receivables, Trade Payables and advances against suppliers are subject to confirmation by respective parties.

35. The Company’s Lease Agreement in respect of Building at Srinagar Colony. The Lease Rentals payable are charged as "Lease Rental Charges" under "Other Expenses’’ in Note No - 26. This leasing arrangement is for longer period and renewable by mutual consent on mutually agreeable terms. Future lease rental payable are as under: (Refer Note No 29)

The Company has not provided amount of ^ 2453160/- (Rupees Twenty four lacs fifty three thousand one hundred sixty only) towards rent of the office premises for the period January,2023 to march, 2024,since the damage caused to the Company’s assets due to heavy seepage of water inside the office premises exceeds the rental amount payable to the Landlord.

The Landlord has filed a civil suit before the Hon''ble City Civil Court of Hyderabad in OS No.363 of 2023.

The matter is sub-judice before the Hon''ble Court and we are confident that the case will be decided in our favour.

36 Investment includes ? 82542475 (Previous Yar ? 82542475) in Shares of Deccan Remedies Limited for the Company’s expansion plans.

37 There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

38 In accordance with the Accounting Standards (AS-28) on "Impairment of Assets" the management during the year carried out exercise of identifying the assets that may have been impaired in respect of each cash generating unit. On the basis of this review carried out by the management there was no impairment loss on the fixed assets during the year ended 31st March, 2024.

39 Investment Subsidy received from Andhra Pradesh Government is shown under Other Equity.

As Per our report attached For and on behalf of the Board

For R Pugalia & Company

Chartered Accountants

Firm Registration No: 318188E Dinesh Kumar Kej''riwal Arihant Baid

Company Secretary Managing Director

Rajeev Kumar Pugalia Laxmipat Baid Y Ravinder Reddy

Proprietor Chief Financial Officer Director

M.No. 053972

UDIN: 24053972BKCETH6602

Place: Hyderabad

Date : 30th May, 2024

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Mar 31, 2023

(a) Terms/rights attached to equity shares

The Company has only one class of equity shares having a part value of Re.l per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed if any by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting except in case of interim dividend. 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.

(b) Segment Details

The Company is engaged in manufacture of Bulk Drugs & Intermediates which in the context of Accounting Standard-17 issued by the Institute of Chartered Accountants of India is considered as a single segment.

The geographic segments individually contributing 10 percent or more of the Company''s revenues and segment assets are shown separately:

1. Employees Benefits:

1.1 Company has not renewed the Group Gratuity Scheme with LIC .

Therefore gratuity valuation has been done through Independent agency as per Ind As 19.As per the valuation made by the Independent Agency the present amount of accrued gratuity comes to Rs 1144391 (Previous Year Rs 2922601/-) on estimates of discounts @7.37% (7.12%) and escalation on salaries @5 % (5%).

1.2 Defined Contribution Plan:

Contribution to defined contribution plan, recognized as expenses for the year are as under:

Employer’s Contribution to Provident/Pension Fund - Rs. 2194012/-

The Company contributes applicable rates of salary of all eligible employees towards Provident Fund managed by the Central Government.

Leave Encashment: -

The Company has provided a sum of Rs. 625487/- towards Leave encashment based on actuarial valuation.

1.3 Balance in Advances, Deposits, Unsecured loans, other Liabilities, Trade Receivables, Trade Payables and advances against suppliers are subject to confirmation by respective parties.

1.4 Fixed Assets includes land for which Registration formalities are yet to be completed.

2. Investment includes Rs 82542475/- (Previous Year Rs.70,000,000/-) in Shares of Deccan Remedies Limited for the Company''s expansion plans.

3. There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

4. In accordance with the Accounting Standards (AS-28) on "Impairment of Assets" the management during the year carried out exercise of identifying the assets that may have been impaired in respect of each cash generating unit. On the basis of this review carried out by the management there was no impairment loss on the fixed assets during the year ended 31st March, 2023.

5. Investment Subsidy received from Andhra Pradesh Government is shown under Other Equity.

41. Capital management

The Company''s policy is to maintain strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of business.

The Company manages its Capital structure through a balanced mix of debt and equity.

The Company''s capital structure is influenced by the changes in the regulatory frameworks, government policies, available options of financing and impact of the same on liquidity position.

The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The table below shows the Gearing ratio for FY 2022-23 and FY 2021-22.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2023 and March 31, 2022.

The management assessed that fair value of cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

43. Fair values hierarchy

Financial assets and liabilities measured at fair value in the statement of financial position are grouped into three levels of fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for the financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using the valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.

The following table provides the fair value measurement hierarchy of the Company''s assets and liabilities: Quantitative disclosures fair value measurement hierarchy for assets as at March 31, 2023:

44. Financial risk management objectives and policies

The Company is exposed to financial risk such as Market Risk (Interest Rate Risk, fluctuation in foreign exchange rates and price risk), credit risk and liquidity risk. The general risk management program of the Company focuses on the unpredictability of the financial markets and attempts to minimize their potential negative influence on the financial performance of the Company. The Company continuously reviews its risk exposures and takes measures to limit it to acceptable levels. The Board of Directors have the overall responsibility for the establishment and oversight of the Company''s risk management framework.

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 i.e. interest rate risk, foreign currency risk and other price risk. Financial instruments of the Company affected by market risk include borrowings and deposits.

The sensitivity analysis in the following sections relate to the position as at March 31, 2023 and March 31, 2022.

The analysis exclude the impact of movements in market variables on the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and liabilities.

The following assumptions have been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or 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 31,2023 and March 31,2022.

Interest Rate Risk

The interest rate risk arise from long term borrowing of the company with variable interest rates (Bank one year MCLR plus spread). Although the spread is fixed, it is subject to change at fixed time interval or occurrence of specified event(s). Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by restructuring its financing arrangement.

Current Assets = Inventories, Trade receivables. Cash & Cash Equivalents,Banl< Balance other than Cash and Cash Equivalents, Loans and advances to employees, "Advances to Contractors,Supplies", Advances recoverable cash or in kind. Prepaid Expenses, CST credit receivable,Balances with Central Excise Deptt, Meis claim receivable. Accrued interest.

Current Liabilities - Borrowings,Trade Payable,Creditors for Capital Goods,Advances from Customers, other liabilities.Provision for leave encashment,Current Tax Liabilities

Total Liabilities - Borrowings,Trade Payable,Creditors for Capital Goods,Advances from Customers, other liabilities. Provision for leave encashment,Current Tax Liabilities,Other financial liabilities. Deferred Tax Liabilities (Net)

Total Shareholder’s Equity = Equity Share Capital,Other Equity (Share Premium,Investment Subsidy,

General Reserve,Capital Reserve(Forfit of Warrant),Retained Profit on Property,plant and equipment (net of deferred tax),Balance in Profit & Loss

Total Shareholder’s Equity = Equity Share Capital,Other Equity (Share Premium,Investment Subsidy, General Reserve,Capital Reserve(Forfit of Warrant),Retained Profit on Property,plant and equipment (net of deferred tax),Balance in Profit & Loss

Revenue = Sale of Products,Interstate Sales-Scrap,Interest lncome,Sundry Balancess written off/back,Profit on sale of fixed assets, Exchange rate fluctuation, Duty Draw Back

Cost = Cost ofMaterial Consumed, "changes in inventories of finished goods,Stock-in-tradeand work-in-progress".

Employees Benefits Expenses,Finance Cost,Depreciation expenses, Pollution control expenses,Consultancy & legal expense, Rent & Facilities, Electricity charges,security Charges, Printing & Stationery, Communication expnnse, Insurance, Travelling & Conveyance Expenses,Selling Expenses, Carriage Outwards, Audit Fees, Tax Audit Fees, Certification & Others,Vehicle Maintenance, Miscellaneous Expenses, Sundry balances written off, Stores, Spares & others, Packing Material, Power & Fuels, Repair & Maintenance-Buildings, Repair &Maintenance-Plant& Machinery, Repair & Maintenance-Others, Job Work Charges

Price risk

Price risk is the risk of fluctuations in the change in prices of equity Investments. The Company''s investment in JV company is of strategic in nature rather than for trading purpose.

Credit risk

Credit risk is the risk arising from credit exposure to customers and the counterparty will default on its contractual obligations.

The Company has adopted a policy of only dealing with creditworthy customers/ corporates to minimise collection losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience in payments and other relevant factors. Advance payments are obtained from customers in banquets, as a means of mitigating the risk of financial loss from defaults.

The carrying amount of trade and other receivables, advances to suppliers, cash and short- term deposits and interest receivable on deposits represents company''s maximum exposure to the credit risk. No other financial asset carry a significant exposure with respect to the credit risk. Deposits and cash balances are placed with Schedule Commercial banks.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company also holds advances as security from customers to mitigate credit risk.

Financial instruments and 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 held by the Company are in the nature of investment in jointly controlled entity and also an investment in an alternate energy supply company as required under the respective State energy policy. Both the categories are unquoted non-trade equity.

Liquidity risk

Liquidity risk is the risk that the Company will have difficulty in raising the financial resources required to fulfil its commitments.

Liquidity risk is held at low levels through effective cash flow management. Cash flow forecasting is performed internally by rolling forecasts of the Company''s liquidity requirements to ensure that it has sufficient cash to meet operational requirements, to fund scheduled capex and debt repayments and to comply with the terms of financing documents.

The Company primarily uses short-term bank facilities in the nature of bank overdraft facility to fund its ongoing working capital requirements.

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Mar 31, 2018

35 EMPLOYEES BENEFITS:

35.1 Company has obtain Group Gratuity Scheme with LIC and contributing the same. The assumption taken are discount rate @ 7.5% and salary escalation @ 6 % etc.

35.2 Defined Contribution Plan:

Contribution to defined contribution plan, recognized as expenses for the year are as under:

Employer’s Contribution to Provident/Pension Fund - Rs. 1750701/The Company contributes applicable rates of salary of all eligible employees towards Provident Fund managed by the Central Government.

Leave Encashment:

The Company has provided a sum of Rs. 1128939/- towards Leave encashment based on actuarial valuation.

35.3 Balances of Current Assets, Other Non-Current Assets, Non-Current Liabilities, Other Non-Current Liabilities, Current Liabilities & other Current Liabilities are subject to confirmation by respective parties.

35.4 Fixed Assets includes land for which Registration formalities are yet to be completed.

35.5 The Company’s Lease Agreement in respect of Building at Srinagar Colony. The Lease Rentals payable are charged as “Lease Rental Charges” under “Other Expenses” in Note No. 29. This leasing arrangement is for longer period and renewable by mutual consent on mutually agreeable terms. Future lease rental payable are as under:

- The above figures are given without discounting at present value

35.6 Investment includes Rs.70,000,000 in Shares of Deccan Remedies Limited for the Company’s expansion plans.

35.7 There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

35.8 In accordance with the Accounting Standards (AS-28) on “Impairment of Assets” the management during the year carried out exercise of identifying the assets that may have been impaired in respect of each cash generating unit. On the basis of this review carried out by the management there was no impairment loss on the fixed assets during the year ended 31st March, 2018.

35.9 Investment Subsidy received from Andhra Pradesh Government is shown under Reserve and Surplus.

NOTES TO FINANCIAL STATEMENTS

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

(All amounts in lakhs, except share data and where otherwise stated)

36. FIRST TIME ADOPTION OF IND AS

These are the first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 3 have been applied in preparing the Financial Statements for the year ended 31 March 2018, the comparative information presented in these Financial Statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2017 (the entity’s date of transition). An explanation of how the transition from previous GAAP to Ind AS has affected the Entity’s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Ind AS optional exemptions

A1 Deemed cost for property, plant and equipment, investment property and intangible assets

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by

Ind AS 38 Intangible Assets and investment property covered by Ind AS 40 Investment Properties. Accordingly, the Entity has elected to measure all of its property, plant and equipment, intangible assets and investment property at their previous GAAP carrying value.

B. Ind AS mandatory exemptions B1 Estimates

An Entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. B2 Classification and measurement of financial assets and liabilities

- The classification and measurement of financial assets will be made considering whether the conditions as per Ind AS 109 are met based on facts and circumstances existing at the date of transition.

- Financial assets can be measured using effective interest method by assessing its contractual cash flow characteristics only on the basis of facts and circumstances existing at the date of transition and if it is impracticable to assess elements of modified time value of money i.e. the use of effective interest method, fair value of financial asset at the date of transition shall be the new carrying amount of that asset. The measurement exemption applies for financial liabilities as well.

Applying a requirement is impracticable when the Entity cannot apply it after making every reasonable effort to do so. It is impracticable to apply the changes retrospectively if:

a. The effects of the retrospective application or retrospective restatement are not determinable;

b. The retrospective application or restatement requires assumptions about what management’s intent would have been in that period;

The retrospective application or retrospective restatement requires significant estimates of amounts and it is impossible to distinguish objectively information about those estimates that existed at that time.

B3 De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the Entity’s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

The Entity has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

OTHER COMPREHENSIVE INCOME

Items that will not be reclassified to profit or loss

Re-measurement gains (losses) on defined benefit plans. -

Net (loss)/gain on FVTOCI equity securities -

Exchange differences on translation of foreign operations -

Income tax relating to items that will not be reclassified to profit or loss Re-measurement gains (losses) on defined benefit plans -

Net (loss)/gain on FVTOCI equity securities -

Total comprehensive income for the year

-The IGAAP figures have been reclassified to conform to Ind AS presentation requirements for the purposes of this note.

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Mar 31, 2016

1. Segment Details

The Company is engaged in manufacture of Bulk Drugs & Intermediates which in the context of Accounting Standard- 17 issued by the Institute of Chartered Accountants of India is considered as a single segment.

2. EMPLOYEES BENEFITS:

3. Company has obtain Group Gratuity Scheme with LIC and contributing the same. The assumption taken are discount rate @ 8% and salary escalation @ 4 % etc.

4. Defined Contribution Plan:

Contribution to defined contribution plan, recognized as expenses for the year are as under:

Employer’s Contribution to Provident/Pension Fund – Rs. 1,257,277/The Company contributes applicable rates of salary of all eligible employees towards Provident Fund managed by the Central Government.

Leave Encashment:

The Company has provided a sum of Rs. 878,000/- towards Leave encashment based on actuarial valuation.

5. Balance in Advances, Deposits, Unsecured loans, other Liabilities, Trade Receivables, Trade Payables and advances against suppliers are subject to confirmation by respective parties.

6. Fixed Assets includes land for which Registration formalities are yet to be completed.

7. The Company’s Lease Agreement in respect of Building at Srinagar Colony. The Lease Rentals payable are charged as “Lease Rental Charges” under “Other Expenses” in Note No - 25. This leasing arrangement is for longer period and renewable by mutual consent on mutually agreeable terms. Future lease rental payable are as under:

8. Investment includes Rs. 70,000,000 in Shares of Deccan Remedies Limited for the Company’s expansion plans.

9. There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

10. In accordance with the Accounting Standards (AS-28) on “Impairment of Assets” the management during the year carried out exercise of identifying the assets that may have been impaired in respect of each cash generating unit. On the basis of this review carried out by the management there was no impairment loss on the fixed assets during the year ended 31st March, 2016.

11. Investment Subsidy received from Andhra Pradesh Government is shown under Reserve and Surplus.

12. Pursuant to enactment of Companies Act,2013, the company has applied the estimate useful life as specified in Schedule II.

Accordingly the unamortized carrying value is being depreciated/amortized over the revised/remaining useful life.

The written down value net of Deferred Tax amounting to Rs. 14.07 Lakhs of Fixed Assets whose lives has expired as at 01.04.2014 has been adjusted, in opening balance of Profit & Loss Account in Financial year 2014-15.

While adjusting the closing balances, retained earnings was excess adjusted earlier and now it is reversed in Financial Year 2015-16.

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Mar 31, 2015

1. All Equity Shares issued by the company carry equal voting and participatory rights.

2. Dues to Micro, Small and Medium enterprises has been determined to be 'Nil to the extent such parties have been identified on the basis of information available with the company.

3. CONTINGENT LIABILITY

i. Income-tax where appeals/petitions *56.67 *56.67 are pending with Various Authorities

ii. Sales Tax where Appeal is pending *111.04 *14.57

*Company is hopeful of complete relief, hence no provision is made.

4. EMPLOYEES BENEFITS:

(a) Company has obtain Group Gratuity Scheme with LIC and contributing the same. The assumption taken are discount rate @ 8% and salary escalation @ 4 % etc.

5. Defined Contribution Plan:

Contribution to defined contribution plan, recognized as expenses for the year are as under:

Employer's Contribution to Provident/Pension Fund - ' 1,038,908/-

The Company contributes applicable rates of salary of all eligible employees towards Provident Fund managed by the Central Government.

Leave Encashment:

The Company has provided a sum of Rs. 786,000/- towards Leave encashment based on actuarial valuation.

6. Balance in Advances, Deposits, Unsecured loans, other Liabilities, Trade Receivables, Trade Payables and advances against suppliers are subject to confirmation by respective parties.

7. Fixed Assets includes land for which Registration formalities are yet to be completed.

8. Investment includes Rs. 70,000,000 in Shares of Deccan Remedies Limited for the Company's expansion plans.

9. There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

10. In accordance with the Accounting Standards (AS-28) on "Impairment of Assets" the management during the year carried out exercise of identifying the assets that may have been impaired in respect of each cash generating unit. On the basis of this review carried out by the management there was no impairment loss on the fixed assets during the year ended 31st March, 2015.

11. Investment Subsidy received from Andhra Pradesh Government is shown under Re- serve and Surplus.

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Mar 31, 2014

1.1.1 All Equity Shares issued by the company carry equal voting and participatory rights.

1.2.2 The details of share holders holding more that 5% shares:

8.1 Dues to Micro, Small and Medium enterprises has been determined to be Rs.Nil to the extent such parties have been identified on the basis of information available with the company.

2 CONTINGENT LIABILITY

i. Income-tax where appeals/petitions *56.67 *56.16 are pending with Various Authorities

ii. Sales Tax where Appeal is pending *14.57 *14.57

iii. Claim against the Company not acknowledged as debts — *3.23

*Company is hopeful of complete relief, hence no provision is made.

3 Additional information pursuant to paragraphs 5 (viii) of part II of Schedule VI to the Companies Act, 1956 are as follows:

D. Segment Details

The Company is engaged in manufacture of Bulk Drugs & Intermediates which in the context of Accounting Standard- 17 issued by the Institute of Chartered Accountants of India is considered as a single segment.

The geographic segments individually contributing 10 percent or more of the Companiy''s

4 EMPLOYEES BENEFITS:

4.1 Company has obtain Group Gratuity Scheme with LIC and contributing the same. The assumption taken are discount rate @ 8% and salary escalation @ 4 % etc.

4.2 Defined Contribution Plan:

Contribution to defined contribution plan, recognized as expenses for the year are as under:

Employer''s Contribution to Provident/Pension Fund - Rs. 762420/- The Company contributes applicable rates of salary of all eligible employees towards Provident Fund managed by the Central Government.

Leave Encashment:

The Company has provided a sum of Rs. 674000/- towards Leave encashment based on actuarial valuation.

4.3 Balance in Advances, Deposits, Unsecured loans, other Liabilities, Trade Receivables, Trade Payables and advances against suppliers are subject to confirmation by respective parties.

4.4 Fixed Assets includes land for which Registration formalities are yet to completed.

4.5 The Company''s Lease Agreement in respect of Building at Srinagar Colony. The Lease Rentals payable are charged as "Lease Rental Charges" under "Other Expenses" in Note No. 25. This leasing arrangement is upto May 31, 2014 and are renewable for future period with mutual consent. However, the same is yet to be renewed. Future lease rental payable are as under:

4.6 Investment includes Rs.70,000,000 in Shares of Deccan Remedies Limited for the Company''s expansion plans.

4.7 There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

4.8 In accordance with the Accounting Standards (AS-28) on "Impairment of Assets" the management during the year carried out exercise of identifying the assets that may have been impaired in respect of each cash generating unit. On the basis of this review carried out by the management there was no impairment loss on the fixed assets during the year ended 31st March, 2014.

4.9 Investment Subsidy received from Andhra Pradesh Government is shown under Re- serve and Surplus.

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Mar 31, 2013

1 EMPLOYEES BENEFITS:

1.1 Company has obtain Group Gratuity Scheme with LIC and contributing the same. The assumption taken are discount rate @ 8% and salary escalation @ 4 % etc.

1.2 Defined Contribution Plan:

Contribution to denned contribution plan, recognized as expenses for the year are as under:

Employer''s Contribution to Provident/Pension Fund - Rs. 612590/-

The Company contributes applicable rates of salary of all eligible employees towards Provident Fund managed by the Central Government.

Leave Encashment:

The Company has provided a sum of Rs. 524000/- towards Leave encashment based on actuarial valuation.

1.3 Balance in Advances, Deposits, Unsecured loans, other Liabilities, Trade Receivables, Trade Payables and advances against suppliers are subject to confirmation by respective parties.

1.4 Fixed Assets includes land for which Registration formalities are yet to completed.

1.5 The Company''s Lease Agreement in respect of Building at Srinagar Colony. The Lease Rentals payable are charged as "Lease Rental Charges" under "Other Expenses" in Note No - 25. This leasing arrangement are for longer period and renewable by mutual consent on mutually agreeable terms. Future lease rental payable are as under:

1.6 Investment includes Rs.70,000,000 in Shares of Deccan Remedies Limited for the Company''s expansion plans.

1.7 There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

1.8 In accordance with the Accounting Standards (AS-28) on "Impairment of Assets" the management during the year carried out exercise of identifying the assets that may have been impaired in respect of each cash generating unit. On the basis of this review carried out by the management there was no impairment loss on the fixed assets during the year ended 31st March, 2013.

1.9 Investment Subsidy received from Andhra Pradesh Government is shown under Re- serve and Surplus.

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Mar 31, 2012

1.1 Dues to Micro, Small and Medium enterprises has been determined to be Rs.Nil to the extent such parties have been identified on the basis of information available with the company.

2 CONTINGENT LIABILITY

i. Income-tax where appeals are pending *65.48 *65.48

ii. Sales Tax where Appeal is pending *14.57 *14.57

iii. Advance License for Import/Export Obligation 61.51 45.31

iv. Claim against the Company not acknowledged as debts *3.23 *3.23

*Company is hopeful of complete relief,hence no provision is made.

A. Segment Details

The Company is engaged in manufacture of Bulk Drugs & Intermediates which in the context of Accounting Standard- 17 issued by the Institute of Chartered Accountants of India is considered as a single segment.

The geographic segments individually contributing 10 percent or more of the Companiy's revenues and segment assets are shown separately:

3 EMPLOYEES BENEFITS:

3.1 During the year the Company has obtain Group Gratuity Scheme with LIC and contributing the same. The assumption taken are discount rate @ 8% and salary escalation @ 4% etc.

3.2 Defined Contribution Plan:

Contribution to defined contribution plan, recognized as expenses for the year are as under:

Employer's Contribution to Provident/Pension Fund - Rs. 521388/- The Company contributes applicable rates of salary of all eligible employees towards providend fund managed by the Central Government.

Leave encashment:

The Company has provided a sum of Rs. 501000/- towards Leave encashment based on actuarial valuation.

3.3 Balance in Advances, Deposits, Unsecured loans, other Liabilities, Sundry Debtors, Sundry Creditors and advances against suppliers are subject to confiramtion by respective parties.

3.4 The Company acquired land for which Registration formalities are yet to completed, for Land purchased by the Company in earlier years.

3.5 Investment includes Rs.70,000,000 in Shares of Deccan Remedies Limited for the Company's expansion plans.

3.6 There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

3.7 Remuneration paid to Mr. Arihant Baid, S/o. Mr. Vinod Baid, subject to approval of members and Central Government.

3.8 In accordance with the Accounting Standards (AS-28) on "Impairment of Assets" the management during the year carried out exercise of indentifying the assets that may have been impaired in respect of each cash generating unit. On the basis of this review carreid out by the management there was no impairment loss on the fixed assets during the year ended 31st March, 2012.

3.9 Investment Subsidy received from Andhra Pradesh Government is shown under Reserve and Surplus.

3.10 The financial statement for the year ended 31st March,2011 had been prepared as per then applicable,pre-revised Schedule VI to the Companies Act,1956. Consequent to the notification of Revised Schedule VI under the Companies Act,1956,the Financial Statement for the year ended 31st March, 2012 are prepared as per Revised Schedule Vl.Previous year figures have been reclassified/regrouped to conform to this year classification.

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Mar 31, 2010

1. Contingent Liabilities: 2009-2010 2008-2009 (Rs. In Lacs) (Rs. In Lacs)

i. Counter Guarantee against Bank Guarantees 40.39 41.50 and Letters of Credit

ii. Income-Tax where appeals are pending *35.26 *61.53 *Company is hopeful of complete relief, hence no provision is made.

iii. Advance License for Import/Export Obligation 91.00 137.43

iv. Claim against the Company not 3.23 2.81 acknowledged as debts

2 Excise Duty estimated at Rs.2.22 Lacs (Previous year Rs. 2.78 Lacs) payable on Finished Goods lying at the factory has not been provided for and hence, not included in inventory valuation. However, there is no effect on the profit for the year on account of the above treatment of excise duty.

3.Employees Benefits:

As per the valuation made by the independent Agency the present value of accrued gratutity comes to Rs. 8,06,000 on estimates of discounts @ 8% and escalation on salaries @ 5% which has taken in accounts.

Defined Contribution Plan:

Contribution to defined contribution Plan, recognized as expenses for the year are as under:

Employers Contribution to Provident/Pension Fund - Rs. 3,73,839.

The Company contributes applicable rates of salary of all eligible employees towards provident fund managed by the Central Government.

4.Balance in Advances, Deposits, Unsecured loans, other Liabilities, Sundry Debtors, Sundry Creditors and advance against supplies are subject to confirmation by respective parties.

5. During the year the Company acquired land for which Registration formalities are yet to be completed.

6.The Company has issued 25 lacs Equity Share warrants @ Rs.29/- each at a Premium of Rs.19/- each on Preferential basis on 2nd February, 2008, with an option of its subsequent conversion into same number of Equity Shares. But upfront money received on issuance of Equity Share Warrants has been forfeited due to non-exercise of the said option by the warrant holders.

7.Investment includes Rs.70,000,000 in shares of Deccan Remedies Ltd. for the Companys expansion plans.

8. There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

9. Prior period adjustment represents amount of Rs.106.46 lakhs as bad debts which relates to earlier years, now accounted for.

10. As per the requirement of MSMED Act, 2006,certain disclosures are required to be made. As the Company is in the process of compiling the information, such disclosure is not made in the accounts.

11.Investment Subsidy received from Andhra Pradesh Govt., is shown under Reserves and Surplus.

12.Previous year figures have been regrouped/rearranged wherever considered necessary.

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Mar 31, 2009

1. Contingent Liabilities: 2008-2009 2007-2008 (Rs. In Lacs) (Rs. In Lacs)

i. Counter Guarantee against Bank Guarantees 41.50 11.50 and Letters of Credit

ii. Income-Tax where appeals are pending *61.53 *64.65 *Company is hopeful of complete relief, hence no provision is made.

iii. Advance License for Import/Export Obligation 137.43 -

iv. Claim against the Company not 2.81 - acknowledged as debts

2 Excise Duty estimated at Rs.2.78 Lacs (Previous year Rs. 1.28 Lacs) payable on Finished Goods lying at the factory has not been provided for and hence, not included in inventory valuation. However, there is no effect on the profit for the year on account of the above treatment of excise duty.

3. Employees Benefits:

As per the valuation made by the independent Agency the present value of accrued gratutity comes to Rs. 8,00,975 on estimates of discounts @ 8% and escalation on salaries @ 5% which has taken in accounts.

Defined Contribution Plan:

Contribution Plan:

Contribution to defined contribution Plan, recognized as expenses for the year are as under:

Employers Contribution to Provident/Pension Fund - Rs. 3,48,102.

The Company contributes applicable rates of salary of all eligible employees towards provident fund managed by the Central Government.

4.Balance in Advances, Deposits, Unsecured loans, other Liabilities, Sundry Debtors, Sundry Creditors and no movement of funds in few Debtors and Creditors account during the year. No deliveries of the Equity Shares have taken place against the advance made by the Company for purchase of shares and hence the balance is still lying in the account Advance against Shares. Side by side, the balance no delivery of shares has been made due to non- receipt of shares against purchases. As such the balance is shown in the account Advance against Shares not delivered and Advance against supplies respectively.

5. Fully Convertible Warrants represents the application amounts received for allotment of 25,00,000 warrants convertible within a period of 18 Months from the date of the allotment of the warrants into 25,00,000 Equity Shares of Rs. 10 each at an exercise price of Rs. 29 per share or at the price determined in accordance with the relevant SEBI guidelines, whichever is higher.

6.Investment includes Rs.70,000,000 in shares of Deccan Remedies Ltd. for the Companys expansion plans.

7. There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

8. As per the requirement of Small, Medium & Micro Industries Act, 2006,certain disclosures are required to be made. As the Company is in the process of compiling the information, such disclosure is not made in the accounts.

9. Investment Subsidy received from Andhra Pradesh Govt., is shown under Reserves and Surplus.

10. Previous year figures have been regrouped/rearranged wherever considered necessary.