Notes to Accounts of Gujarat Terce Laboratories Ltd.

Mar 31, 2025

9. Provisions

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

Provisions for restructuring are recognised
by the Company when it has developed a
detailed formal plan for restructuring and
has raised a valid expectation in those
affected that the Company will carry out
the restructuring by starting to implement
the plan or announcing its main features to
those affected by it.

Provisions are measured at the best
estimate of the consideration required to
settle the present obligation at the end of
the reporting period, taking into account
the risks and uncertainties surrounding the
obligation. When a provision is measured
using the cash flows estimated to settle
the present obligation, its carrying amount
is the present value of those cash flows

(when the effect of the time value of money
is material). The measurement of provision
for restructuring includes only direct
expenditures arising from the restructuring,
which are both necessarily entailed by the
restructuring and not associated with the
ongoing activities of the Company.

10. Employee Benefits

Employee benefits include salaries, wages,
contribution to provident fund, gratuity,
leave encashment towards un-availed
leave, compensated absences, post¬
retirement medical benefits and other
terminal benefits.

Short-term Employee Benefits

Wages and salaries, including non¬
monetary benefits that are expected to be
settled within 12 months after the end of
the period in which the employees render
the related service are recognised in respect
of employees'' services up to the end of
the reporting period and are measured at
the amounts expected to be paid when
the liabilities are settled. The liabilities are
presented as current employee benefit
obligations in the balance sheet.

Liabilities recognised in respect of short¬
term employee benefits are measured at
the undiscounted amount of the benefits
expected to be paid in exchange for the
related service. Liabilities recognised in
respect of other long-term employee
benefits are measured at the present value
of the estimated future cash outflows
expected to be made by the Company in
respect of services provided by employees
up to the reporting date.

Post-employment Benefits

• Defined Benefit Plan

Defined benefit plans comprising
of gratuity, post-retirement medical
benefits and other terminal benefits,
are recognized based on the present
value of defined benefit obligations
which is computed using the projected

unit credit method, with actuarial
valuations being carried out at the
end of each annual reporting period.
These are accounted either as current
employee cost or included in cost of
assets as permitted.

The net interest cost is calculated
by applying the discount rate to the
net balance of the defined benefit
obligation and the fair value of plan
assets. This cost is included in employee
benefit expense in the statement of
profit and loss.

Remeasurement gains and losses arising
from experience adjustments and
changes in actuarial assumptions are
recognised in the period in which they
occur, directly in other comprehensive
income. They are included in retained
earnings in the statement of changes in
equity and in the balance sheet.

Changes in the present value of the
defined benefit obligation resulting
from plan amendments or curtailments
are recognised immediately in profit or
loss as past service cost.

11. Earnings per Share

Basic Earnings per Share

Basic earnings per share is computed by
dividing the net profit after tax by weighted
average number of equity shares outstanding
during the period. The weighted average
number of equity shares outstanding during
the year is adjusted for treasury shares,
bonus issue, bonus element in a rights issue
to existing shareholders, share split and
reverse share split (consolidation of shares).

Diluted Earnings per Share

Diluted earnings per share is computed by
dividing the profit after tax after considering
the effect of interest and other financing
costs or income (net of attributable taxes)
associated with dilutive potential equity
shares by the weighted average number of
equity shares considered for deriving basic
earnings per share and also the weighted
average number of equity shares that could
have been issued upon conversion of all
dilutive potential equity shares including
the treasury shares held by the Company
to satisfy the exercise of the share options
by the employees.

Right, Preferences and Restrictions attached to Shares
Equity Shares

The company has only one class of Equity having a par value '' 10.00 per share. Each shareholder is
eligible for one vote per share held. The dividend proposed by the board of directors is subject to the
approval of the shareholders in ensuing Annual General Meeting, except in case of interim dividend.
In the event of liquidation, the Equity shareholders are eligible to receive the remaining assets of the
company after distribution of all preferential amounts, in proportion to their shareholding.

Terms of repayment of loans:

1. Vehicle Loan from HDFC Bank (8347) is repayable in 60 monthly equal instalments of ''71,695
each, starting from December 2021. The total outstanding as on 31^st March 2025 is ''13,48,551.78.

2. Vehicle Loan from HDFC Bank (8131) is repayable in 60 monthly equal instalments of ''31,186
each, starting from May 2021. The total outstanding as on 31^st March 2025 is ''3,86,001.32.

3. Loan from Bank of Baroda (2820) is repayable in 36 monthly instalments of ''2,31,972 each, after
an initial moratorium period of 12 months, i.e. starting from January 2023. The total outstanding
as on 31^st March 2025 is ''48,71,420.00.

4. Loan from Bank of Baroda (3018) is repayable in 60 monthly instalments of ''2,62,000 each,
starting from April 2023. The total outstanding as on 31^st March 2025 is ''23,68,000.00.

5. The coupon rates for the secured long-term borrowings are 710 % to 11.40 % per annum
(Previous Year: 7.10% to 10.35% per annum).

6. Unsecured loans of ''3,00,000.00 had been received from Abundant Tradelink Private Limited.
No terms of repayment have been specified for the same.

7. Loans from Bank of Baroda (2820, 3018 and 1570) are secured by equitable mortgage of
factory land and building and residential bungalow of Director Shri Natwarbhai P Prajapati and
hypothecation of all plant and machinery, movable fixed assets, stock, book debts and all the
current assets of the company, as well as personal guarantee of the following directors:

a. Mr. Natwarbhai P. Prajapati

b. Mr. Amritbhai P. Prajapati

c. Mr. Aalap N. Prajapati

NOTE NO. 36: DISCONTINUED OPERATIONS

On 1^st January 2018, the board of directors of the company decided to discontinue the operations
of the Metal Division, which had been suspended by the management since last few years. As on 31^st
March 2018, the Metal Division was classified as Discontinued Operations. The Metal Division which
was earlier shown as an operating segment is no longer presented in the segment report. For the
financial year ended on 31^st March 2025, no financial transactions have occurred relating to the Metal
Division and there are no results to be declared for the same.

At the time of classification of the Metal Division as a discontinued operation, the recoverable value
of items of property, plant and equipment was estimated based on the report of a registered valuer.
As per the report of the registered valuer dated 18^th May 2022, no impairment losses were identified
in the value of property, plant and equipment.

NOTE NO. 37: PROVISION FOR TAX OF EARLIER YEARS UNDER DIRECT TAX VIVAAD
SE VISHWAS SCHEME

The Income Tax Department had made additions to the income of the company on various grounds
for the financial years 2010-11, 2011-12, 2012-13 and 2013-14, against which, the company had
preferred appeals before the Commissioner of Income Tax (Appeals) during the respective periods
in which the matters were decided. The appeals were disposed of by the Commissioner with a
reduction in demands, which were duly paid by the company. However, in respect of those matters,
the Income Tax Department had preferred further appeals before the Income Tax Appellate Tribunal,
Ahmedabad, and the matters were decided by the Hon. Tribunal against the company. The company
filed a Miscellaneous Application for rectification of the said orders which was also decided against the
company. Against the said orders, the company had filed a petition before Hon. Gujarat High court.

During the year under audit, the Income Tax Department launched a dispute resolution scheme, viz.
the Direct Tax Vivaad se Vishwas scheme. The company has opted for settlement of pending disputes
under this scheme and hence, filed an application in Form 1 as per the scheme. The company is
awaiting the certificate in Form 2 from the Income Tax Department. As per the declaration in the said
Form 1, the company has provided ''341.71 lakh as tax item.

Signature to notes 1 to 37.

In terms of our separate audit report of even date attached.

For M. A. Shah & Co. For Gujarat Terce Laboratories Limited

Chartered Accountants

Firm Registration No.: 0112630W

Pramesh Doshi, FCA Natwarbhai P Prajapati Aalap N Prajapati

Partner Chairman Managing Director &

Membership No.: 045319 DIN: 00031187 Chief Executive Officer (CEO)

DIN:08088327

Place: Anand Bhagirath Maurya CS Ripal S Sukhadiya

Date: 26 May 2025 Chief Finance Officer (CFO) Company Secretary

---

Mar 31, 2024

9. Provisions

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

Provisions for restructuring are recognised by the Company when it has developed a detailed formal plan for restructuring and has raised a valid expectation in those affected that the Company will carry out the restructuring by starting to implement the plan or announcing its main features to those affected by it.

Provisions are measured at the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). The measurement of provision for restructuring includes only direct expenditures arising from the restructuring, which are both necessarily entailed by the restructuring and not associated with the ongoing activities of the Company.

10. Employee Benefits

Employee benefits include salaries, wages, contribution to provident fund, gratuity.

leave encashment towards un-availed leave, compensated absences, post-retirement medical benefits and other terminal benefits.

Short-term Employee Benefits

Wages and salaries, including non-monetary benefits that are expected to be settled within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

Liabilities recognised in respect of shortterm employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service. Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.

Post-employment Benefits • Defined Benefit Plan

Defined benefit plans comprising of gratuity, post-retirement medical benefits and other terminal benefits, are recognized based on the present value of defined benefit obligations which is computed using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. These are accounted either as current employee cost or included in cost of assets as permitted. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

11. Earnings per Share

Basic Earnings per Share

Basic earnings per share is computed by dividing the net profit after tax by weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the year is adjusted for treasury shares, bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).

Diluted Earnings per Share

Diluted earnings per share is computed by dividing the profit after tax after considering the effect of interest and other financing costs or income (net of attributable taxes) associated with dilutive potential equity shares by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares including the treasury shares held by the Company to satisfy the exercise of the share options by the employees.

Terms of Repayment of Loans:

1. Vehicle Loan from HDFC Bank (8347) is repayable in 60 monthly equal instalments of? 71.695 each, starting from December 2021. The total outstanding as on 31^s'' March 2024 is ? 20,84,530.15.

2. Vehicle Loan from HDFC Bank (8131) is repayable in 60 monthly equal instalments of ? 31,186 each, starting from May 2021. The total outstanding as on 31^st March 2024 is ? 7.12.203.73.

3. Loan from Bank of Baroda (2820) is repayable in 36 monthly instalments of ? 2,31,972 each, after an initial moratorium period of 12 months, i.e. starting from January 2023. The total outstanding as on 31^st March 2024 is ? 76.55.084.00.

4. Loan from Bank of Baroda (3018) is repayable in 60 monthly instalments of ? 2,62,000 each, starting from April 2023. The total outstanding as on 31^st March 2024 is ? 55.12.000.00.

5. Loan from Bank of Baroda (1570) is repayable in 36 monthly instalments, after an initial moratorium period of 12 months, i.e. starting from July 2021. The total outstanding as on 31^s'' March 2024 is ? 3,64,989.00.

6 The coupon rates for the secured long-term borrowings are 710 % to 1140 % per annum (Previous Year: 7.10% to 10.35% per annum).

7. Unsecured loans of ? 3,00,000.00 had been received from Abundant Trade Link. No terms of repayment have been specified for the same.

8. Loans from Bank of Baroda (2820. 3018 and 1570) are secured by equitable mortgage of factory land and building and residential bungalow of Director Shri Natwarbhai P Prajapati and hypothecation of all plant and machinery, movable fixed assets, stock, book debts and all the current assets of the company, as well as personal guarantee of the following directors:

a. Mr. Natwarbhai P Prajapati

b. Mr. Amritbhai P. Prajapati

c. Mr. Aalap N. Prajapati

Note No. 33: Discontinued Operations

On 1^st January 2018, the board of directors of the company decided to discontinue the operations of the Metal Division, which had been suspended by the management since last few years. As on 31^st March 2018, the Metal Division was classified as Discontinued Operations. The Metal Division which was earlier shown as an operating segment is no longer presented in the segment report.

For the financial year ended on 31^s: March 2024, no financial transactions have occurred relating to the Metal Division and there are no results to be declared for the same.

The major classes of assets and liabilities of the metal division classified as held-for-sale in accordance with Ind AS 105 as on 3T'' March 2024 are presented as follows:

At the time of classification of the Metal Division as a discontinued operation, the recoverable value of items of property, plant and equipment was estimated based on the report of a registered valuer. As per the report of the registered valuer dated 18^th May 2022, no impairment losses were identified in the value of property, plant and equipment.

Note No. 34: Contingent Liabilities

The Income Tax Department has made additions to the income of the company on various grounds for the financial years 2010-11, 2011-12, 2012-13 and 2013-14, against which, the company had preferred appeals before the Commissioner of Income Tax (Appeals) during the respective periods in which the matters were decided. The appeals were disposed of by the Commissioner with a reduction in demands, which were duly paid by the company against the appeal orders. However, in respect of those matters, the Income Tax Department had preferred further appeals before the Income Tax Appellate Tribunal, Ahmedabad, and the matters were decided by the Hon. Tribunal against the company. The company filed a Miscellaneous Application for rectification of the said orders which is decided by the Hon. Tribunal against the company The company has decided to file petition before Hon. Gujarat High court. As per the opinion of the Advocate of the company, the amount of potential liability, if any, in respect of the pending matter is not ascertainable at this stage since there are points on which the company has favourable arguments.

Signature to notes 1 to 34.

In terms of our separate audit report of even date attached.

For M. A. Shah b Co. For Gujarat Terce Laboratories Limited

Chartered Accountants Firm Registration No.: 112630W

Pramesh Doshi, FCA Natwarbhai P. Prajapati Aalap Prajapati

Partner Chairman Managing Director b

Membership No : 045319 DIN: 00031187 Chief Executive Officer (CEO)

DIN: 08088327

Place: Anand Bhagirath Maurya CS Ripalben S. Sukhadiya

Date: 29 May 2024 Chief Finance Officer (CFO) Company Secretary

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Mar 31, 2015

1. Sundry Creditors, Sundry Debtors, Deposits, Loans & Advances recoverable in Cash or kind are subject to confirmation.

2. Balances in Share Allotment money, EEFC account and current account with Bank of Baroda is subject to reconciliation. It is taken on the basis of balances as per the books of the Company, as the Statement and certificates are not provided by the Bank.

3. None of the employees of the Company was in receipt of or entitled to receive emoluments in aggregate at a rate of Rs. 200000/- p.m. or more (P.Y. – Rs. 200000/- p.m.) (If employed for part of the year) or Rs. 2400000/- or more p.a. (P.Y. – Rs. 2400000/- or more p.a.) (If employed for full year) (Previous Year - Nil).

* Claims against the Company not Acknowledged as Debt does not include Demand from Indian Income Tax Authorities for payment of Tax Rs. 24031782 for financial year 2004-05, 2010-11 & 2011-12 on completion of assessment proceedings of respective years. The company has filed an appeal before Commissioner of Income Tax (Appeals). It also does not include Demand from Gujarat Sales Tax Authorities for payment of tax Rs.1535493 for financial years 2003-04 & 2004-05 on completion of assessment proceedings of respective years. The company has filed an appeal before Deputy Commissioner of Sales Tax (Appeals). Company is contesting the demand and the management believes that the demand will not sustain in the Appellate Process. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the company's financial position.

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Mar 31, 2014

1.1 Contingent Liabilities Not Provided For

2013-14 2012-13

a) Unutilized Letter of Credit Nil Nil

b) Counter guarantees furnished by the Company in respect of Bank Guarantee 0 1100000

c) Estimated amount of contracts to be executed 0 0 on capital account and not provided for

1.2 (A) Heather to Company was working in Pharma division and Metal division. During the year under review company has discontinued its manufacturing operations in metal division and intimated to department of Central Excise on 23/08/2013 for surrender of Central Excise registration certificate for metal division. Central Excise authority has conducted the audit of metal division in the month of September 2013 and worked out the duty to be paid as Rs. 734864 at the time of surrender of registration i.e. 31/10/2013 which has been duly paid by the company and accordingly the Central Excise Registration is cancelled.

(B) During the year under review Shri Paresh Patel, Managing director along with Miss Monica Patel, Director, who were in charge of the Metal Division, resigned from directorship by filing there resignation on MCA website on 23/09/2013 without authority of the Board of Directors. Later on these resignations were accepted by way of Doctrine of indoor management in view of Consent Sheet accepted by both the parties filed with Company Law Board.

(C) During the year under review, Land of the Metal division of the company was sold by the erstwhile Managing Director of the company Shri Paresh Patel and erstwhile Director Miss Monica Patel, who were in charge of Metal division, without authority of Board of Directors and Shareholders. The petition was filed by the company against the transfer of land which was reported in the unaudited result for the quarter ended on 30/ 09/2013 and 31/12/2013. Later on the petition was resolved amicably in view of Consent Sheet accepted by both the parties filed with Company Law Board. Accordingly the status quo was established regarding the ownership and possession of the property of the metal division situated at Block/Survey no. 140, Ramnagar, Ta: Kalol, Dist: Gandhinagar in favor of Gujarat Terce Laboratories Limited by cancellation of the sale deed executed on 9th May, 2013.

1.3 Petition under Section 397 & 398 of Companies Act, 1956

1) Shri Paresh Patel, Managing Director, in charge of the management of Metal Recycling Division illegally sold off the 4566 sq. mtr factory land located at Block/Survey no 140, Ramnagar, Ta: Kalol, Dist: Gandhinagar having a book value of Rs 1,59,80,120/- at a price of Rs 14.00 lacs on 9/05/2013 and along with it transferred building standing thereon, Plant and Machineries attached to the factory land having book value of Rs 2,46,05,291/- and inventories lying at factory having a book value of Rs 3,75,69,067/- without any consideration to his Associate company Sayona Industries Limited.

2) A criminal complaint was made at The Taluka Police Station, Kalol for misappropriation of funds against Shri Paresh Patel, Managing Director and as suggested by concerned PI & on the ground of financial fraud, a petition before the Company Law Board, Mumbai was filed on 28/01/2014 against him, Sayona Industries Limited and others for following reliefs:

- to declare the action of alleged sale of the property of Metal Division of the Company as invalid and to restore the property i.e. 4566 sq. mtr factory land located at Block/Survey no 140, Ramnagar, Ta: Kalol, Dist: Gandhinagar along with building standing thereon, Plant and Machineries attached to / on the factory land and inventories lying at factory.

- Relief under the provisions of sections 397 and 398 read with violations of Sections 192A, 209, 293 (1) (a), 297, 299 and 630 of the Companies Act 1956.

3) Company Petition No. 7 of 2014 was disposed off by the Hon''ble Company Law Board, Mumbai on 03/04/ 2014 on ground of consent sheet containing following term was filed before it:

i. The parties entered into amicable settlement and there remain no disputes, differences and hence upon consensus arrived whereby Sayona Industries Limited and others assured and promised to cancel the sale deed of 4566 sq. mtr factory land in respect of the "Metal Division" situated at at Block/Survey no 140, Ramnagar, Ta: Kalol, Dist: Gandhinagar.

4) Thereafter, Sayona Industries Limited cancelled the sale deed dated 9/5/2013 of 4566 sq. mtr factory land located at Block No. 140/P, Village : Ramnagar, Ta: Kalol, Dist: Gandhinagar, Gujarat on 2/4/2014 and restored the possession and ownership of the property to the Company.

5) Since fixed assets and other assets as referred under sub clause no (1) above were restored to the Company, there is no financial loss suffered by the Company.

1.4 Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

The Company has identified two reportable segments viz Pharmaceutical and Metal Divisions.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.

Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities".

Current year and previous year, Term loan from ICICI Car Finance is secured by way of first charge on Swift Car of the company;

Rate of interest (fIxed) 11.51% p.a.

Current year, Term loan from Kotak Mahindra Prime Ltd. is secured by way of first charge on Toyota Etios Car of the company;

Rate of interest (fIxed) 11.15% p.a.

Current year and previous year, Term loan from Bank of Baroda is secured by way of first charge on Staff Bus of the company;

Rate of interest (floating) 11.75 % p.a.

Current year, Term loan from Bank of Baroda is secured by way of first charge on Godown (122/3, Ravi Estate, Chhatral, Gandhinagar.) of the company; Rate of interest (floating) 13.75 % p.a.

Maturity Profile of Long - Term Borrowings from directors & their relatives and others is as set out below: Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2012

1.1 Sundry Creditors, Sundry Debtors, Deposits, Loans & Advances recoverable in Cash or kind are subject to confirmation.

1.2 Balances in Share Allotment money, EEFC account and current account with Bank of Baroda is subject to reconciliation. It is taken on the basis of balances as per the books of the Company, as the Statement and certificates are not provided by the Bank.

1.3 None of the employees of the Company was in receipt of or entitled to receive emoluments in aggregate at a rate of not less than Rs. 200000/- p.m. (P.Y. - Rs. 200000/- p.m.) (If employed for part of the year) or Rs. 2400000/ - or more p.a. (P.Y. - Rs. 2400000/- or more p.a.) (If employed for full year) (Previous Year - Nil).

1.4 Contingent Liabilities Not Provided For

2011-12 2010-11

a) Unutilized Letter of Credit Nil Nil

b) Counter guarantees furnished by the Company in respect of Bank Guarantee 1100000 1100000

c) Estimated amount of contracts to be executed 0 1500000 on capital account and not provided for

1.5 Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

The Company has identified two reportable segments viz Pharmaceutical and Metal Divisions.

The accounting policies adopted for segment reporting are in Line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified^ to segments on the basis of their relationship to the operating activities of the segment.

Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities".

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Mar 31, 2010

1. Contingent Liabilities not provided for:

2009-10 2008-09 Rs. Rs.

a) Unutilised Letter of Credit Nil Nil

b) Counter guarantees furnished by the Company in respect of Bank Guarantee 1100000 Nil

c) fstimated amount of contracts to be executed on capital account and not provided for 1500000 1500000

2. Previous years figures have been regrouped/ rearranged wherever necessary to confirm to the current years classification.

3. None of the employees of the Company was in receipt of or entitled to receive emoluments in aggregate at a rate of not less than Rs. 200000/- p.m. (P.Y. - Rs. 200000/- p.m.) (if employed for part of the year) or Rs. 2400000/- or more p.a. (P.Y. - Rs. 2400000/- or more p.a.) (if employed for full year) (Previous Year - Nil).

4. Details of C.I.F. Value of Imports, Expenditure in Foreign currency and earnings in foreign currency are as under:

5. Sundry Creditors, Sundry Debtors, Deposits, Loans & Advances recoverable in Cash or kind are subject to confirmation.

6. The amount in Balance Sheet and Profit & Loss account are rounded off to the nearest rupee.

7. Managerial Remuneration

a. The Company, has been advised that the computation of net profit (for the purpose of calculation of Directors remuneration u/s 349 of the Companies Act, 1956) need not be enumerated since no commission has been paid to the directors and only remuneration has been paid to the directors.

b. Details of payments and provisions on account of remuneration to Managing Director and Whole time Director are included in Profit & Loss account being in the limit of minimum managerial remuneration prescribed by Central Government

8. Balances in Share Allotment money, foreign currency account and current account with Bank of Baroda is subject to reconciliation. It is taken on the basis of balances as per the books of the Company, as the Statement and certificates are not provided by the Bank.

9. Liability for Excise Duty on Finished Goods is accounted as and when they are cleared from factory premises. No provision for Excise Duty is made in the accounts for goods manufactured and lying in bonded warehouses in Factory premises.

10. Company has adopted method of treatment of Modvat Credit in account as prescribed in guidance note on accounting treatment for MODVAT by ICAI. Excise Duty paid on inputs is debited to modvat credit receivable account, so the Purchase cost of inputs (Raw Material) is net of Excise duty. Therefore the inputs consumed (Raw Material) and the inventory of inputs (Raw Material) is valued on the basis of purchase cost net of Excise duty. The debit balance in modvat credit receivable account is shown on the Assets side under the head "Loans & Advances"

11. Due to unavailability of data, the management has not been able to ascertain as to whether there are any Small and Micro Enterprises to whom, the company owes any sum for more than 30 days.

12. As per AS 22 on Accounting for taxes on income issued by ICAI, the Company has provided deferred tax liabilities as on 31st March, 2010 of Rs. 1225605/- for the year by debiting to Profit & Loss A/c. The components of deferred tax liability for the current financial year are:

13. Segment Reporting

The Company is engaged in manufacturing of Tablets, Capsules, Syrup & Injection pertaining to the product group Pharmaceuticals. The Company is selling its product in Domestic as well as International Market. However, the Company is not managed as Segment organization and the location of operations of the Company and its related assets and liabilities are based at one place. This does not provide a reasonable basis for identification/ allocation of segment results/ segment assets segment liabilities. Hence there is only one reportable Business Segment viz. Pharmaceuticals.

14. Details of Raw Material consumed

15. Consumption of Raw Materials and Packing Materials during the period under review :

16. Details of Capacity, Production, Stock and Sale