Notes to Accounts of Ind-Swift Ltd.

Mar 31, 2024

15. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources and reliable estimate can be made to settle the amount of obligation. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements

16. Government Grant

Government Grants are recognized in Profit & Loss account in accordance with the related schemes and in the period in which these are accrued.

Grants toward the specific assets are treated as deferred income in Profit & Loss Account are recognised on rational basis over the useful life of the depreciable asset

17. Impairment of Assets

An Asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

18. Trade Receivable/Advances

Trade receivables/advances outstanding for more than three years and other Trade receivables/advances outstanding for less than three years but are doubtful of recovery at the balance sheet date will be written off/provided in the books of accounts except those Trade receivables/advances pertaining to related parties and disputed Trade receivables/advances having matter pending before different courts.

19. Accounting policies not specifically referred to are consistent with generally accepted accounting principles.

b) Arrears of Cumulative Dividend on cumulative Redeemable Preference Shares amounting to Rs.184.60 Lacs Previous year (Rs.170.40 Lacs).

c) In respect of Income Tax matters pending before appellate authorities/Tribunal/ High Courts which the Company expects to succeed, based on decisions of Tribunals/Courts there is contingent liability amounting to Rs.43.40 Lacs.

d) In respect of Sale Tax matters pending before appellate authorities/Tribunal which the Company expects to succeed, based on decisions of Tribunals/Courts there is contingent liability amounting to Rs.6635.01 Lacs. Out of it the Punjab & Haryana High Court has directed the Sale Tax authorities to not to take coercive steps to recover the demand of 6633.62 lacs

e) In respect of Service Tax matters pending before appellate authorities/Tribunal which the Company expects to succeed, based on decisions of Tribunals/Courts there is contingent liability amounting to Rs.17.57 Lacs.

f) In respect of Central Excise matters pending before appellate authorities/Tribunal which the Company expects to succeed, based on decisions of Tribunals/Courts there is contingent liability amounting to Rs.213.63 Lacs.

g) In respect of GST matters pending before appellate authorities/Tribunal which the Company expects to succeed, based on decisions of Tribunals/Courts there is contingent liability amounting to Rs. 112.42 Lacs.

h) In respect of ESI matter pending before appellate authorities/Tribunal which the Company expects to succeed, based on decisions of Tribunals/Courts there is contingent liability amounting to Rs. 3.33 lacs.

29. During the year 2018-19 the sales tax deptt. Chandigarh has completed the sales tax assessment of the Company for the year 2011-12 and raised a demand of Rs. 66.34 crore on account of VAT and CST (VAT Rs. 14.33 cr, CST Rs. 0.17 cr, penalty Rs. 31.61 cr and interest Rs. 20.23 cr). However the Company has filed appeal against said order with VAT Tribunal as per Punjab VAT ACT and has deposited a sum of Rs 16.65 cr being 25.10% of the above said demand to the sales tax deptt, on 08.05.2019 and the matter is subjudice.

30. (i) R & D : Company is consistently undertaking Research & Development in new areas of Medicine. The R & D facility of the company is duly recognized by Deptt. of Science & Technology, Govt. of India. Company''s team consisting of highly qualified scientists has proven their expertise in various areas of technology development. Expenses on Research phase are charged to Profit and Loss account. as laid by Ind AS 38 issued by institute of Chartered Accountant of India on Intangible Assets. Expenditure on R&D incurred by the Company during the Year is:

iii) Compensatory absences

Actuarial Valuation for compensated Absences is done as at the year end and the provision is made as per Company rules with corresponding charge to the statement of Profit and Loss amounting to Rs 24.91 Lakhs and it covers all regular employees. Major drivers in actuarial assumptions, typically, are years of service and employees compensation.

33. During the year under review the Company has made re-payment of Fixed Deposits amounting to Rs. 4.89lacs. The Company has completed the re-payment of the Deposits as per the re-payment scheme approved by the Hon''ble Company Law Board vide its order dated 30th Sept, 2013. Few of the fixed deposits holders have however not encashed their Fixed Deposits repayments due to which the amount due to them remain unclaimed as at the year end . The Company is com-

mitted to make those repayments as and when the valid claim for the same is filed by the respective Deposit holder.

34 During the year the Company has sold its investment which was 9499720 nos of listed equity shares held in Ind Swift Laboratories Ltd to Essix Bioscinces Ltd for a consideration of Rs. 101/- per shares aggregating to Rs. 9594.72 lacs.

35 (i) During the year the Company has sold Plant & Machinery and other moveable assets of Unit III Baddi to ANG Life-

sciences Ltd for Rs. 544.36 lacs (including GST) In term of agreement dated 24.06.2020 with ANG Lifesciences Ltd.

(ii) During the year the Company has sold Plant & Machinery and other moveable assets of Unit IV Baddi to Kuldeep Kaur for Rs 239.92 Lacs (including GST) In term of agreement dated 30.01.2024 with Kuldeep Kaur.

36. During the year the Board in their meeting held on 25the September,2023 after considering the recommendation of Audit Committee and Independent Directors, approved the scheme of arrangement of amalgamation of the Company with Ind Swift Laborotaries Ltd (ISLL) under section 230-232 and other applicable provisions of the companies act, 2013. The Company has filed an application before the stock exchanges to obtain their no objection certificate. The same is pending before both stock exchanges.

37 (i). Since the company is having accumulated losses and there is no virtual certainty regarding availability of any future

taxable profits in coming financial years, as such in accordance with Ind AS12 (Income Tax) the company has not recognized deferred tax asset.

(ii) During the year no MAT liability arises in view of clause (iii) of Explanation I of sub section 2 of Section 115JB of Income Tax act, 1961.

38. During the year 2019-20 the Central bank of India (Lender Bank), had declared the Company and its Directors naming Sh. S.R. Mehta, Dr. Gopal Munjal, Dr. V.R. Mehta, Sh. Navrattan Munjal, Sh. S.P. Sharma, Dr. V.K. Arora, Sh. S.C. Galhotra Mr. R.S Bedi as willful defaulters.

However, on 03.03.2020 the Central Bank of India had assigned its debt to M/s Edelweiss Assets Reconsruction Company (India) Limited and after that the same was full paid by the Company. The Company has also satisfied the ROC Charge in respect of this loan after getting NOC from Edelweiss on 10th July, 2020. The Company has filed the legal suits against the Bank for setting aside the orders, whereby the Directors have been declared as willful defaulters and the matter is subjudice.

Further as per communication of Central Bank of India No RO/OPR/2022-23 dated 04.02.2023, the Bank has forwarded recommendation for deletion from RBI willful defaulters to its Central office on 04.02.2023.

39. The aggregate depreciation expenses on ROU assets is included under depreciation and amortisation expenses in statement of profit & loss account.

The break up of current & non current lease liabilities as at March 31st , 2024 is as under.

• Debt-Equity Ratio and Retun on Equity Ratio have not been calculated as the Equity/Net Worth of the Company is negative.. ** Net Capital turnover ratio has not been calculated as net capital of the Company is negative.

• Return on Capital Employed ratio has not been calculated as Capital Employed of the Company is negative.

• Debt Service Coverage Ratio has decreased due to decrease in Net Profit . Net proft in last year was more due to gain of exceptional/extraordinary item.

• Current ratio has improved due to sale of non current investments and conversion of current borrowing to non current borrowing.

• Inventory Turnover Ratio has increased due to increase in turnover of the Company.

• Net Profit ratio has decrease due to lower net profit in this year, net profit in last year was more due to gain of exceptional/ extraordinary item.

• Return on investment has decreased due to sale of non current investment.

41. Total Advance to the Executive Directors outstanding as on 31.03.2024 is Rs. 1065.16 Lacs (P.Y. 1087.16Lacs).

42. Sundry Balance/Excess Provision written Back amounting to Rs. 474.66 lacs (Previous year Rs. 262.58 lacs) have been written back during the year being not payable/provision not required.

43. Balance of Debtors, Creditors and Loan & Advances and other (imprest) are subject to Confirmation. The impact of the same if any could not be ascertained.

44. Remittance in Foreign Currency on Account of Dividend:

No Remittance in Foreign Currency on account of dividend was made during the year 2023-24.

45. Earning Per Share (EPS)

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

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

(v) The Company has not advanced or loaned or invested funds to any other person or entity, 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 Funding Party (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 or entity, 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 is not Covered under section 135 of the Companies Act 2013.

for and on behalf of the Board

AUDITOR''S REPORT

As per separate report of even date

For Jain & Associates S.R.MEHTA G.MUNJAL

Chartered Accountants Chairman Managing Director & CEO

(Regd No. 001361N) DIN - 00005668 DIN - 00005196

(Krishan Mangawa ) ARUN K. SETH ^{GINNY UPPAL}

Partner Chief Financial Officer Company Secretary

Membership No : 513236

Place: Chandigarh Date : 14.05.2024

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Mar 31, 2023

15. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources and reliable estimate can be made to settle the amount of obligation. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements

16. Government Grant

Government Grants are recognized in Profit & Loss account in accordance with the related schemes and in the period in which these are accrued.

Grants toward the specific assets are treated as deferred income in Profit & Loss Account are recognised on rational basis over the useful life of the depreciable asset

17. Impairment of Assets

An Asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

18. Trade Receivable/Advances

Trade receivables/advances outstanding for more than three years and other Trade receivables/advances outstanding for less than three years but are doubtful of recovery at the balance sheet date will be written off/provided in the books of accounts except those Trade receivables/advances pertaining to related parties and disputed Trade receivables/advances having matter pending before different courts.

19. Accounting policies not specifically referred to are consistent with generally accepted accounting principles.

b) Arrears of Cumulative Dividend on cumulative Redeemable Preference Shares amounting to Rs.170.40 Lacs Previous year (Rs.156.20 Lacs).

c) In respect of Income Tax matters pending before appellate authorities/Tribunal/ High Courts which the Company expects to succeed, based on decisions of Tribunals/Courts there is contingent liability amounting to Rs.43.40 Lacs.

d) In respect of Sale Tax matters pending before appellate authorities/Tribunal which the Company expects to succeed, based on decisions of Tribunals/Courts there is contingent liability amounting to Rs.6944.07 Lacs. Out of it the Punjab & Haryana High Court has directed the Sale Tax authorities to not to take coercive steps to recover the demand of 6633.62 lacs

e) In respect of Service Tax matters pending before appellate authorities/Tribunal which the Company expects to succeed, based on decisions of Tribunals/Courts there is contingent liability amounting to Rs.17.57 Lacs.

f) In respect of Central Excise matters pending before appellate authorities/Tribunal which the Company expects to succeed, based on decisions of Tribunals/Courts there is contingent liability amounting to Rs.213.63 Lacs.

g) In respect of GST matters pending before appellate authorities/Tribunal which the Company expects to succeed, based on decisions of Tribunals/Courts there is contingent liability amounting to Rs. 112.42 Lacs.

29. During the year 2018-19 the sales tax deptt. Chandigarh has completed the sales tax assessment of the Company for the year 2011-12 and raised a demand of Rs. 66.34 crore on account of VAT and CST (VAT Rs. 14.33 cr, CST Rs. 0.17 cr, penalty Rs. 31.61 cr and interest Rs. 20.23 cr). However the Company has filed appeal against said order with VAT Tribunal as per Punjab VAT ACT and has deposited a sum of Rs 16.65 cr being 25.10% of the above said demand to the sales tax deptt, on 08.05.2019 and the matter is subjudice.

30. Provision for Doubtful debt amounting to Rs.11.24 Lacs has been made by the company during the year, being considered doubtful of recovery, as per company''s policy.

31. R & D: Company is consistently undertaking Research & Development in new areas of Medicine. The R & D facility of the company is duly recognized by Deptt. of Science & Technology, Govt. of India. Company''s team consisting of highly qualified scientists has proven their expertise in various areas of technology development. Expenses on Research phase are charged to Profit and Loss account. as laid by Ind AS 38 issued by institute of Chartered Accountant of India on Intangible Assets. Expenditure on R&D incurred by the Company during the Year is:

33. Post Employment Benefits

(i) Defined Contribution plans: The Company makes contributions towards provident fund to a defined contribution retirement benefit plan for the qualifying employees. Under the plan, the Company is required to contribute a specified percentage of payroll cost of the retirement benefit plan to fund the benefits.

(ii) Defined Benefit Plan:

(A) The Company makes annual contributions to the Group Gratuity cum life Assurance Schemes administered by the LIC, a funded defined benefit plan for qualifying employees. The scheme provides for payment as under :

(a) On normal retirement / early retirement / withdrawal / resignation: As per the provisions of the payment of Gratuity Act, 1972 with vesting period of 5 years of service.

(b) On the death in Service.

The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the projected Unit Credit Method. Based on the actuarial valuation obtained in this respect the following table sets out the status of the gratuity plan and the amounts recognized in the Company''s financial statements as at the Balance Sheet date.

with corresponding charge to the statement of Profit and Loss amounting to Rs. 43.73 lacs and it covers all regular employees. Major drivers in actuarial assumptions, typically, are years of service and employees compensation.

34. During the year under review the Company has made re-payment of Fixed Deposits amounting to Rs. 28.42 lacs. The Company has completed the re-payment of the Deposits as per the re-payment scheme approved by the Hon''ble Company Law Board vide its order dated 30th Sept, 2013. Few of the fixed deposits holders have however not encashed their Fixed Deposits repayments due to which the amount due to them remain unclaimed as at the year end . The Company is committed to make those repayments as and when the valid claim for the same is filed by the respective Deposit holder.

35 (i) Debts of the Company have been assigned by the various banks/financial institution to Edelwiess Assets Recon

struction Companies (EARC). Accordingly the Company has finalized term sheet dated 25.11.2019 summarizing the principal terms with respect to restructuring the entire debts of the company with EARC. Master Restructuring Agreement with EARC is being finalized and is expected to be executed soon. Accordingly during the year 202223 the Company has provided interest liability amounting to Rs. 51.77 crores on the sustainable debt as per the term sheet finalized with EARC and the impact of the waiver of liability will be provided after execution of Master Restructuring Agreement.

(ii). Bank of India has assigned its debts to Edelweiss Asset Reconstruction Company (EARC) during the year 2021-22. The Company has settled the debt of Bank of India assigned to EARC. Now the company is repaying interest and principal to EARC as per the agreed terms. Accordingly waiver of principal and interest on loan amounting to Rs. 6057.87 lacs has been accounted for as exceptional/extra ordinary item.

37 (i). Since the company is having accumulated losses and there is no virtual certainty regarding availability of any future

taxable profits in coming financial years, as such in accordance with Ind AS12 (Income Tax) the company has not recognized deferred tax asset.

(ii) During the year no MAT liability arises in view of clause (iii) of Explanation I of sub section 2 of Section 115JB of Income Tax act, 1961.

38. During the year 2019-20 the Central bank of India (Lender Bank), had declared the Company and its Directors naming Sh. S.R. Mehta, Dr. Gopal Munjal, Dr. V.R. Mehta, Sh. Navrattan Munjal, Sh. S.P. Sharma, Dr. V.K. Arora, Sh. S.C. Galhotra Mr. R.S Bedi as willful defaulters.

However, on 03.03.2020 the Central Bank of India had assigned its debt to M/s Edelweiss Assets Reconsruction Company (India) Limited and after that the same was full paid by the Company. The Company has also satisfied the ROC Charge in respect of this loan after getting NOC from Edelweiss on 10th July, 2020. The Company has filed the legal suits against the Bank for setting aside the orders, whereby the Directors have been declared as willful defaulters and the matter is subjudice.

Further as per communication of Central Bank of India No RO/OPR/2022-23 dated 04.02.2023, the Bank has forwarded recommendation for deletion from RBI willful defaulters to its Central office on 04.02.2023.

39. The aggregate depreciation expenses on ROU assets is included under depreciation and amortisation expenses in statement of profit & loss account.

46. The previous year figures have been re-arranged and re-grouped wherever found necessary.

47. Related Party Disclosure

(a) List of related parties & their relationship - As per annexure- ''A''

(b) Related party transactions. - As per annexure- ''B''

48. 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 does not have any transactions with companies struck off.

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

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

(v) The Company has not advanced or loaned or invested funds to any other person or entity, 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 Funding Party (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 or entity, 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 is not Covered under section 135 of the Companies Act 2013.

for and on behalf of the Board

AUDITOR''S REPORT

As per separate report of even date

For Jain & Associates S.R.MEHTA G.MUNJAL

Chartered Accountants Chairman Managing Director & CEO

(Regd No. 001361N)

(S.C. Pathak) ARUN K. SETH GINNY UPPAL

Partner Chief Financial Officer Company Secretary

Membership No : 010194

Place: Chandigarh Date : 30.05.2023

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Mar 31, 2018

1.1 Total Cost of Quoted investment is Rs. 4005.53lacs (Market Value Rs. 5443.34/-lacs) as on 31.03.18

1.2 investments are valued at fair value on the basis of book value as per the last audited annual accounts of investee Companies available with the company i.e for the year ending 31.03.2017.

1.3 The shares of ind Swift Laboratories Ltd are pledged to Banks as per the sanctioned Corporate Debts Restructuring Scheme of ind Swift Laboratories Ltd.

1.4 Essix Biosciences Ltd, Fortune India Construction Ltd and Mansa Print & Publishers Pvt Ltd are Related Parties

2.1 Fixed Deposits with banks are Rs.91.14lacs (Previous Year Rs. 46.56lacs) are Pledged as margin money with banks against issue of Bank Gurantees.

2.2 Balance with Banks includes Balance on account of unpaid dividend of Rs. 2.93lacs(Previous Year Rs. 5.66lacs)

2.3 During the period the Company has Transferred a sum of Rs. 2.73lacs to investor Education and Protection Fund on account of Unclaimed dividend for Financial Year 2009-10 (Previous Year Rs. 2.67lacs)

3.1 in the opinion of the Board, the current assets,loans & advances shown in the Balance Sheet have a value of realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provision for all known and determined liabilities is adequate.

3.2 Advances recoverable includes advances to suppliers and advances to staff and other advances.

4.1 Term Loan from Banks & Financial Institutions are secured by way of first pari-passu charge over entire fixed assets of the company, second pari-passu charge over the entire current assets of the company, personal guarantee of Directors and by way of pledge of shares of promoters. Restructured Bill Discounting/Factoring facilities are secured by way of subservient charge over entire current assets of the company.

4.2 Since the Company is unable to repay the installments and Banks have exited from the CDR mechanism, the installments due and falling due in next twelve months have not been segregated as current liability. The entire loan amount has been shown as long term liability except loan accounts which are being repaid as per repayment schedule.

5.1 Company has provided remuneration to Directors in excess of the limits prescribed in schedule V of Companies Act, 2013.However Company is in process of obtaining the approval from Central Government in this regard as required in schedule V of Companies Act, 2013

6. Contingent liabilities outstanding as on 31.03.2018 are as under:

a) Foreign Letter of Credit/inland Letter of Credit/Bank Guarantee issued by Bankers:

b) Arrears of Cumulative Dividend on cumulative Redeemable Preference Shares amounting to Rs. 99.40 Lacs Previous year (85.20Lacs).

c) In respect of income Tax matters pending before appellate authorities/Tribunal/High Courts which the Company expects to succeed, based on decisions of Tribunals/Courts there is contingent liability amounting to Rs.576.16 Lacs.

d) In respect of Sale Tax matters pending before appellate authorities/Tribunal/High Courts which the Company expects to succeed, based on decisions of Tribunals/Courts there is contingent liability amounting to Rs.1069.96Lacs.

e) In respect of Service Tax matters pending before appellate authorities/Tribunal which the Company expects to succeed, based on decisions of Tribunals/Courts. There is contingent liability amounting to Rs.260.61 Lacs.

f) In respect of Central Excise matters pending before appellate authorities/Tribunal which the Company expects to succeed, based on decisions of Tribunals/Courts. There is contingent liability amounting to Rs.1473.82 Lacs.

7. Provision for Doubtful debt amounting to Rs. 3742.66 Lacs has been made by the company during the year, being considered doubtful of recovery, as per company''s policy and has been shown under the head exceptional items.

8. Loss for the year has increased by Rs. 592.81 lacs being the stocks written off by the company on account of expired/ spoilage of stocks of raw material which was identified by the management during the financial year, being not realizable in normal course of business.

9. Post applicability of Goods and Service Tax (GST) w.e.f 1^st July 2017, Revenue from operations are disclosed net of GST. Accordingly the revenue from operations and Excise Duty expenses for the year ended 31.03.2018 are not comparable with previous periods.

10. R & D: Company is consistently undertaking Research & Development in new areas of Medicine. The R & D facility of the company is duly recognized by Deptt. of Science & Technology, Govt. of India. Company''s team consisting of highly qualified scientists has proven their expertise in various areas of technology development. Expenses on Research phase are charged to Profit and Loss account. as laid by Ind AS 38 issued by institute of Chartered Accountant of India on Intangible Assets. Expenditure on R&D incurred by the Company during the Year is:

The Depreciation/Amortisation related to Research & development are clubbed under respective heads in profit & loss account.

11. Segment Reporting

Primary Segment (Business Segments)

The Company operates mainly in the business segment of Pharmaceutical Products, and in the opinion of the management the inherent nature of activities in which it is engaged are governed by the same set of risks and reward.

12. (i) The Company has provided Rs. 324.06lacs as provision towards the company''s gratuity policies maintained with LiC as per valuation by the LiC.

(ii) Provision for Leave Encashment has been made as per the rules of the Company without actuarial valuation.

13. (i) The fixed deposits of the company has been restructured by the Company Law Board vide its order dated 30.09.2013 in view of petition CP No, 27.02.2013 filed by the company. As per the scheme approved by the Company Law Board the fixed deposits are now repayable over a period of one to five years from the date of maturity. The effect of reschedulement of fixed deposits has been incorporated in Balance Sheet as per the approved scheme. However the company has again filed application with National Company Law Tribunal (NCLT) to again restructure the repayment schedule of fixed deposits as the company is finding it difficult to make the repayment due to liquidity problem. However NCLT vide its order dated 08.12.17 directed the company to repay its fixed deposits as per original Company Law Board order dated 30.09.2013. However the Company filed appeal against the said order with National Company Law Appellate Tribunal (NCLAT) and the matter is subjudice with NCLAT.

(ii) Interest Accrued on fixed deposit during the year for Rs.227.99 lacs has not been provided in accounts as the same is payable to fixed deposit holders at the time of maturity of fixed deposits as per the scheme approved by Company Law Board as mentioned above.

(iii) interest Excess Provided on Fixed Deposit in earlier Years for Rs. 269.32Lacs has been written Back during the year.

14. In view of the financial crisis being faced by the company, Company is finding difficulties in making payment of dues to the banks/financial institutions. Hence, accounts pertaining to Cash Credit (CC), Term Loans (TL), Working Capital Term Loans (WCTL), Funded interest Term Loans (FITL) with the banks have been declared as NPAs by respective banks due to nonpayment of dues on time. Some of the banks have not charged interest on CC,TL, WCTL & FITL accounts post such accounts becoming NPAs. The accrued liability on account of the same amounting to Rs. 153.63 Crore. (Previous Year 134.76 Crore) has not been provided in the books of accounts.

15.1 Following banks have assigned their debts to Assets Reconstruction Company:

16. IFCI Factors Ltd has vide its letter dated 13.04.2018 approved the one time settlement of due payable by the company for Rs. 6.00 Crore repayable in installment during the year 2018-19 against the outstanding of Rs. 1258.19 lacs as per books of account of the company (Principal Rs. 1050 Lacs in term Rs. 208.19 Lacs). The waiver on account of Principal and Interest for Rs. 658.19 Lacs have been accounted for as income under the head exceptional item in Profit & Loss account for the year ending March 2018.

17. Some of the Banks/ Asset Reconstruction Companies have not provided statements of account of the company. The Balance of Such Banks/Asset Reconstruction Company have been accounted for as per the balance available in the books of accounts of the company and these balances are subject to reconciliation.

18. Since the company is incurring losses and there is no virtual certainty regarding availability of any future taxable profits in coming financial years, as such in accordance with Ind AS12 (Income Tax) the company has not recognized deferred tax asset.

19. During the year the company has paid Rs. 239.50 Lacs to the Executive Directors as advance which is recoverable/to be settled against the remuneration for the financial year 2017-18 as and when the remuneration is approved by the Central Govt.

20. Advance to KMP include Rs. 816.76 lacs (P/Y 596.26Lacs) due from directors of the company. Maximum balance outstanding during the year is Rs 835.76 lacs (P/Y 596.26Lacs).

21 (i). The operations of Dairy unit of the Company were discontinued in the year 2013-14. Since there are no operation in Dairy unit, impairment loss in respect of Capital Work in Progress of Dairy unit for Rs. 93.93 lacs has been provided in accounts.

(ii). Due to Suspension of activities at Unit i, and ii at Parwanoo (H.P.) since March 2014, There are indication which suggest impairment as per Ind AS-36 issued by ICAI in the value of fixed assets being plant & machinery and other fixed assets of the Company. The management is in the process of getting an impairment study done and this financial impact of the impairment loss, if any, will be accounted for at the material time, when the impairment study will be completed.

22. Balance of Debtors, Creditors and Loan & Advances are subject to Confirmation.

23. Remittance in Foreign Currency on Account of Dividend:

No Remittance in Foreign Currency on account of dividend was made during the year 2017-18.

24. Earning Per Share (EPS)

(a) Basic EPS

25. The previous year figures have been re-arranged and re-grouped wherever found necessary.

26. Related Party Disclosure

(a) List of related parties & their relationship - As per annexure- ''A''

(b) Related party transactions. - As per annexure- ''B''

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Mar 31, 2015

1. The Prefrence Shares shall rank for dividends in priority to equity Shares for time being. These shares shall be entitled to rank in priority to equity shares as regards repayment of Capital and arrears of dividend declared, but shall not be entitled to any further participation in profit or assets of the Company.

2. Term Loan from Banks & Financial Institutions are secured by way of first pari-passu charge over entire fixed assets of the company,second pari-passu charge over the entire current assets of the company,personal guarantee of Directors and by way of pledge of shares of promoters. Restructured Bill Discounting/Factoring facilities are secured by way of subservient charge over entire current assets of the company. Vehicles loans are secured by way of hypothecation of vehicles financed.

3.regarding regd. under The Micro Small and Medium Enterprises Development act 2006. Hence, the information required to be given in accordance with Section 22 of the said act is not ascertainable and not disclosed.

4. Total Cost of Quoted Investment is Rs. 4005.53 lacs(Market Value Rs.3016.16lacs) and Unquoted Investment is Rs. 506.80 lacs

5. The shares of Ind Swift Laboratories Ltd are pledged to Banks as per the sanctioned Corporate Debts Restructuring Scheme of Ind Swift Laboratories Ltd.

6. Ind Swift Laboratories Ltd, Essix Biosciences Ltd, Fortune India Construction Ltd and Mansa Print & Publishers Pvt. Ltd are Associates.

7. Fixed Deposits with banks are Rs.43.17 lacs (P/Y Rs. 225.73 lacs) out of which Rs. 43.11 lacs (P/Y Rs. 225.53 lacs) are Pledged as margin money with banks.

8. Balance with Banks includes Balance on account of unpaid dividend of Rs. 12.98 lacs(P/Y Rs. 17.56 lacs)

9. During the period the Company has Transferred a sum of Rs. 4.58 lacs to Investor Education and Protection Fund on account of Unclaimed dividend for Financial Year 2006-07 (P/Y Rs. 3.26 lacs)

10. In the opinion of the Board, the current assets,loans & advances shown in the Balance Sheet have a value of realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provision for all known and determined liabilities is adequate.

11. Expenses includes Rs.142.76lacs- (P/Y Rs. 36.96lacs) as expenses relating to previous years.

12. In view of losses, the managerial remuneration paid/provided is in excess of limit prescribed main schedule V of Companies Act 2013. However Company is in process of obtaining the approval from Central Government in this regard.

13. The previous year figures have been re-arranged and re-grouped wherever found necessary.

14. Contingent liabilities outstanding as on 31.03.2015 are as under:

a) Foreign Letter of Credit/Inland Letter of Credit/Bank Guarantee issued by Bankers:

(Rs.in Lacs)

Particulars 2014-15 2013-14

FLC /ILC 9.40 1630.91

BG 106.60 18.06

b) Arrears of Cumulative Dividend on cumulative Redeemable Preference Shares amounting to Rs. 56.80 Lacs Previous year (42.60Lacs).

c) In respect of Income Tax matters pending before appellate authorities/CIT (Appeals) which the Company expects to succeed, based on decisions of Tribunals/Courts. There is contingent liability amounting to Rs.578Lacs.

d) In respect of Sale Tax matters pending before appellate authorities/CIT (Appeals) which the Company expects to succeed, based on decisions of Tribunals/Courts. There is contingent liability amounting to Rs.590.64Lacs.

15. During the year the Company has changed the depreciation policy from straight line method to Useful Life method of depreciation as prescribed in Schedule II of the Companies Act, 2013. Due to this change in the method of depreciation, the reported period of depreciation is higher by Rs. 1252.66 lacs. However depreciation on fixed assets whose useful life is already exhausted as on 01.04.2014 amounting to Rs. 335.26 lacs has been debited to General Reserve Account. The Corresponding Deferred Tax Liability on such fixed assets amounting to Rs. 63.88 lacs has also been reversed and credited to General Reserve Account.

16. Trade Receivables include a sum of Rs. 63.39 Cr. Which is outstanding for a period of more than 3 years and are doubtful of recovery. However, no provision against the same has been made in the books of account as the management is hopeful of recovery of the same through constant follow up or by legal process as the management is contemplating to initiate legal action against such debtors.

17. Loss for the year has increased by Rs. 2238.75 lacs being the stocks written off by the company on account of expired/spoilage stocks of finished goods/raw material which was identified by the management during the financial year, being not realizable in normal course of business.

Further, the management has also identified stocks of finished goods/raw material worth Rs 39.44 Cr. as slow moving/non moving stocks which has not been written off during the financial year. However the value of such stock has been taken at realizable value.

18. At the end of the financial year the accumulated losses of the company are in excess of fifty percent of its net worth. During the financial year the company has also incurred cash losses.

19. R & D: Company is consistently undertaking Research & Development in new areas of Medicine. The R & D facility of the company is duly recognized by Deptt. of Science & Technology, Govt. of India. Company's team consisting of highly qualified scientists has proven their expertise in various areas of technology development. Expenses on Research phase are charged to Profit and Loss account and Expenses relating to development phase is recognised as an Intangible Asset only if it meets the recognition criteria as laid by AS 26 issued by institute of Chartered Accountant of India on Intangible Assets. These assets are amortised over the useful period of life starting from the year when the asset first meets the recognition criteria. Expenditure on R&D incurred by the Company during the Year is:

20. Segment Reporting

Primary Segment (Business Segments)

The Company operates mainly in the business segment of Pharmaceutical Products, and in the opinion of the management the inherent nature of activities in which it is engaged are governed by the same set of risks and reward. The Company has closed its operation in Dairy Division in the year 2013-14

21. The debts of the company including interest have been restructured by the corporate debt restructuring cell w.e.f 01.07.2012 under the aegis of Corporate Debt Restructuring Scheme. As per the approved scheme, restructured debts are now repayable over a period of eight and half years including moratorium period of 1-2years. The Debt Restructuring Scheme is not approved by Non CDR member Tata Capital Financial Services Ltd. However effect of reschedulement of loan has been incorporated in Balance Sheet as per corporate debt restructuring scheme except in case of Tata Capital Financial Services Ltd which has been taken as per their original sanctioned letter.

22. The fixed deposits of the company has been restructured by the Company Law Board vide its order dated 30.09.2013 in view of petition CP No, 27.02.2013 filed by the company. As per the scheme approved by the Company Law Board the fixed deposits are now repayable over a period of one to five years from the date of maturity. The effect of rechedulement of fixed deposits has been incorporated in Balance Sheet as per the approved scheme.

23. In view of the financial crisis being faced by the company, Company is finding difficulties in making payment of dues to the banks/ financial institutions i.e. interest and installments in terms of the CDR package approved by CDR EG vide letter dated 27.12.2012 Hence, accounts pertaining to Cash Credit (CC), Term Loans (TL), Working Capital Term Loans (WCTL), Funded Interest Term Loans (FITL) with some banks have been declared as NPAs by respective banks due to non-payment of dues on time. Such banks have not charged interest on CC,TL, WCTL & FITL accounts post such accounts becoming NPAs. The accrued liability on account of the same amounting to Rs. 85.48 Cr. (Previous Year 37.10 Cr.) has not been provided in the books of accounts.

24. Since the Company is incurring losses and there is no virtual certainty regarding availability of any future taxable profits in coming financial years, as such in accordance with AS-22 (Accounting for Taxes) the Company has not recognized Deferred Tax Asset .

25. Due to Suspension of activities at Unit I, and II since March 2014 and suspension of activity at Dairy Unit since Aug.2013, There are indication which suggest impairment as per AS-28 issued by ICAI in the value of fixed assets being plant & machinery and other fixed assets of the Company. The management is in the process of getting an impairment study done and this financial impact of the impairment loss, if any, will be accounted for at the material time, when the impairment study will be completed.

26. Balance of Debtors,Creditors and Loan & Advances are subject to Confirmation.

27. Related Party Disclosure

(a) List of related parties & their relationship - As per annexure- 'A'

(b) Related party transactions. - As per annexure- 'B'

RELATED PARTY DISCLOSURES Annexure - '43 A'

LIST OF RELATED PARTIES AND RELATIONSHIPS

(A) ASSOCIATES

1. ESSIX BIOSCIENCES LIMITED.

2. IND SWIFT LABORATORIES LIMITED.

3. MANSA PRINT & PUBLISHERS LIMITED.

4. FORTUNE INDIA CONSTRUCTION LIMITED.

5 DASHMESH MEDICARE PVT LIMITED.

6. 3M ADVERTISING & PUBLISHERS LIMITED.

7. SWIFT FUNDAMENTAL RESEARCH & EDUCATION SOCIETY.

8. HALCYON LIFE SCIENCES PVT. LIMITED.

9. PUNJAB RENEWABLE ENERGY PVT LIMITED.

10. B. M. COSMED PVT. LIMITED.

11. HAKIM FARAYAND CHEMI CO. (IRAN)

12. AKJ PORTFOLIOS PVT. LIMITED.

13. NRM PORTFOLIOS PVT LIMITED.

14. SRM PORTFOLIOS PVT LIMITED.

15. GM PORTFOLIOS PVT LIMITED.

16. VRM PORTFOLIOS PVT LIMITED.

17. VKM PORTPOLIOS PVT LIMITED.

(B) KEY MANAGEMENT PERSONNEL

1. MR. S.R. MEHTA, CHAIRMAN DIRECTORS

2. DR. G. MUNJAL, MANAGING DIRECTOR & CEO

3. DR. V.R.MEHTA, JT. MANAGING DIRECTOR

4. MR.RAMAN K. SOOD, COMPANY SECRETARY

5. MR. ARUN K. SETH, G.M. (F&A) designated as CFO

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Mar 31, 2014

1. Leases:

Finance lease, which effectively transfer to the company all the risks and benefits incidental to ownership of the leased item, are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term and disclosed as leased assets. Lease payments are apportioned between the finance charges and reduction of the lease liability based on the implicit rate of return. Fi- nance charges are charged as expenses in the profit and loss account.

2. Accounting policies not specifically referred to are consistent with generally accepted accounting principles.

3. The Prefrence Shares shall rank for dividends in priority to equity Shares for time being. These shares shall be entitled to rank in priority to equity shares as regards repayment of Capital and arrears of dividend declared, but shall not be entitled to any further participation in profit or assets of the Company.

4. During the year the company has alloted 4168571 equity shares of Rs. 2/- each @ a preimum of Rs. 15.50 per share to promoters and promoter group compines as per the approved CDR Scheme.

5. Term Loan from Banks & Financial Institutions are secured by way of first pari-passu charge over entire fixed assets of the company,second pari-passu charge over the entire current assets of the company,personal guarantee of Directors and by way of pledge of shares of promoters. Restructured Bill Discounting/Factoring facilities are secured by way of subservient charge over entire current assets of the company. Vehicles loans are secured by way of hypothecation of vehicles financed.

6. The Company has not received any information from its suppliers regarding regd. under The Micro Small and Medium Enterprises Development act 2006. Hence, the information required to be given in accordance with Section 22 of the said act is not ascertainable and not disclosed.

7. Total Cost of Quoted Investment is Rs. 4005.53lacs(Market Value Rs.3671.64 lacs) and Unquoted Investment is Rs. 513.35 lacs

8. The shares of Ind Swift Laboratories Ltd are pledged to Banks as per the sanctioned Corporate Debts Restructuring Scheme of Ind Swift Laboratories Ltd.

9. Ind Swift Laboratories Ltd, Essix Biosciences Ltd, Fortune India Construction Ltd and Mansa Print & Publishers Pvt. Ltd are Associates.

10. Fixed Deposits with banks are Rs. 225.73 lacs (P/Y Rs. 949.24 lacs) out of which Rs.225.53 lacs (P/Y Rs. 948.11 lacs) are Pledged as '' margin money with banks.

11. Balance with Banks includes Balance on account of unpaid dividend of Rs. 17.56 lacs (P/Y Rs. 20.82 lacs)

12. During the period the Company has Transferred a sum of Rs. 3.26 lacs to Investor Education and Protection Fund on account of Unclaimed dividend for Financial Year 2005-06 (P/Y Rs. 3.24 lacs)

13. In the opinion of the Board, the current assets,loans & advances shown in the Balance Sheet have a value of realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provision for all known and determined liabilities is adequate.

14. Expenses includes Rs. 36.96 lacs (P/Y Rs. 32.08 lacs) as expenses relating to previous years.

15. In view of losses, the managerial remuneration paid/provided is in excess of limit prescribed main schedule XIV of Companies Act 1956. However Company is in process of obtaining the approval from Central Government in this regard.

During the year, the Company has undertaken a review of all fixed assets in line with the requirement of AS-28 on "Impairment of

16. Assets" issued by the Institute of Chartered Accountants of India. Based on such review, no provision for impairment is required to be recognized for the year.

17. The previous year figures have been re-arranged and re-grouped wherever found necessary.

18. Contingent liabilities outstanding as on 31.03.2014 are as under:

a) Foreign Letter of Credit/Inland Letter of Credit/Bank Guarantee issued by Bankers:

(Rs.in Lacs)

Particulars 2013-14 2012-13

FLC /ILC 1630.91 2310.91

BG 18.06 822.69

b) Arrears of Cumulative Dividend on cumulative Redeemable Preference Shares amounting to Rs. 42.60 Lacs Previous year (28.40Lacs).

c) In respect of Income Tax matters pending before appellate authorities/CIT (Appeals) which the Company expects to succeed, based on decisions of Tribunals/Courts. There is contingent liability amounting to Rs. 578 Lacs.

d) In respect of Sale Tax matters pending before appellate authorities/CIT (Appeals) which the Company expects to succeed, based on decisions of Tribunals/Courts. There is contingent liability amounting to Rs. 590.64 Lacs.

19. During the year, the Company has received a sum of Rs. 668.10 Lacs as promoters contributions towards Share Application Money in compliance with the term and conditions of CDR Package.

10. R & D: Company is consistently undertaking Research & Development in new areas of Medicine. The R & D facility of the company is duly recognized by Deptt. of Science & Technology, Govt. of India. Company''s team consisting of highly qualified scientists has proven their expertise in various areas of technology development. Expenses on Research phase are charged to Profit and Loss account and

11. The debts of the company including interest have been restructured by the corporate debt restructuring cell w.e.f 01.07.2012 under the aegis of Corporate Debt Restructuring Scheme. As per the approved scheme, restructured debts are now repayable over a pe- riod of eight and half years including moratorium period of 1-2years. The Debt Restructuring Scheme is not approved by Non CDR member Tata Capital Financial Services Ltd. However effect of Reschedulment of loan has been incorporated in Balance Sheet as per corporate debt restructuring scheme except in case of Tata Capital Financial Services Ltd which has been taken as per their original sanctioned letter.

12. The fixed deposits of the company has been restructured by the Company Law Board vide its order dated 30.09.2013 in view of petition CP No, 27.02.2013 filed by the company. As per the scheme approved by the Company Law Board the fixed deposits are now repayable over a period of one to five years from the date of maturity. The effect of reschedulement of fixed deposits has been incorporated in Balance Sheet as per the approved scheme.

13. During the year some banks have not charged interest for full year due to sub standard account on cash credit, working capital Term Loan, Term Loan and Funded interest Term Loan accounts. The accrued liability on account of the same amounting to Rs. 3709.75 lacs has not been provided in books of accounts.

14. Remittance in Foreign Currency on Account of Dividend:

The Company has paid dividend in respect of shares held by Non-Residents. Where the amount is also credited to Non-Resident External Account.

15. The current accounting period is for Twelve months from 01.04.2013 to 31.03.2014 and previous accounting period was for nine months from 01.07.2012 to 31.03.2013, hence the figures for the current period are not comparable with the previous period.

---

Mar 31, 2013

1. The Prefrence Shares shall rank for dividends in priority to equity Shares for time being. These shares shall be entitled to rank in priority to equity shares as regards repayment of Capital and arrears of dividend declared, but shall not be entitled to any further participation in profit or assets of the Company

2. Term Loan from Banks & Financial Institutions are secured by way of first pari-passu charge over entire fixed assets of the company,second pari-passu charge over the entire current assets of the company,personal guarantee of Directors and by way of pledge of shares of promoters. Restructured Bill Discounting/Factoring facilities aresecured by way of subservient charge over entire current assets of the company. Vehicles loans are secured byway of hypothecation of vehicles financed.

3. Fixed Deposits with banks are Rs. 949.24 lacs (P/Y Rs. 1976.93 lacs) out of which Rs.948.11 lacs (P/Y Rs. 1758.42 lacs) are Pledged as margin money with banks.

4. Balance with Banks includes Balance on account of unpaid dividend of Rs. 20.82 lacs(P/Y Rs. 24.16lacs)

5. During the period the Company has transferred a sum of Rs. 3.24 lacs to Investor Education and Protection Fund on account of Unclaimed dividend for Financial Year 2004-05 (P/Y Rs. 2.65 lacs)

6. In the opinion of the Board, the current assets,loans & advances shown in the Balance Sheet have a value of realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provision for all known and determined liabilities is adequate.

7. Expenses includes Rs. 32.08Lacs (P/Y Rs. 18.29Lacs) as expenses relating to previous years.

8. In view of losses, the managerial remuneration paid/provided is in excess of limit prescribed under schedule XIV of Companies Act 1956. However Company is in process of obtaining the approval from Central Government in this regard. During the year, the Company has undertaken a review of all fixed assets in line with the requirement of AS-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India. Based on such review, no provision for impairment is required to be recognized for the year.

9. The previous year figures have been re-arranged and re-grouped wherever found necessary.

10. Contingent liabilities outstanding as on 31.03.2013 are as under:

a) Foreign Letter of Credit/Inland Letter of Credit/Bank Guarantee issued by Bankers:

(Rs.in Lacs)

Particulars 2012-13 2011-12

FLC /ILC 2310.91 21427.49

BG 822.69 1404.25

b) Arrears of Cumulative Dividend on cumulative Redeemable Preference Shares amounting to Rs.28.40 Lacs Previous year (14.20Lacs).

c) In respect of Income Tax matters pending before appellate authorities/CIT (Appeals) which the Company expects to succeed, based on decisions of Tribunals/Courts. There is contingent liability amounting to Rs. 578 Lacs.

d) In respect of Sale Tax matters pending before appellate authorities/CIT (Appeals) which the Company expects to succeed, based on decisions of Tribunals/Courts. There is contingent liability amounting to Rs. 590.64 Lacs.

11. During the period, the Company has received a sum of Rs. 729.50 Lacs as promoters contributions towards Share Application Money in compliance with the term and conditions of CDR Package.

12. Segment Reporting

Primary Segment (Business Segments)

The Company operates mainly in the business segment of Pharmaceutical Products, and in the opinion of the management the inherent nature of activities in which it is engaged are governed by the same set of risks and reward. The company has also diversified into Dairy segment in addition to the Pharmaceuticals. As the revenue from the dairy segment is less than 10% of total income of the company, hence separate segment reporting has not been given.

13. The debts of the company including interest have been restructured by the corporate debt restructuring cell w.e.f 01.07.2012 under the aegis of Corporate Debt Restructuring Scheme. As per the approved scheme, restructured debts are now repayable over a period of eight and half years including moratorium period of 1-2years. The Debt Restructuring Scheme is pending for approval from Non CDR members IFCI and Tata Capital Financial Services Ltd, however effect of Reschedulment of loan has been incorporated in Balance Sheet as per corporate debt restructuring scheme subject to their approval.

14. Remittance in Foreign Currency on Account of Dividend:

The Company has paid dividend in respect of shares held by Non-Residents. Where the amount is also credited to Non-Resident External Account.

15. Related Party Disclosure

(a) List of related parties & their relationship - As per annexure- 'A' (b) Related party transactions. - As per annexure- 'B'

16. The current accounting period is for nine months from 01.07.2012 to 31.03.2013 and previous accounting period was for fifteen months from 01.04.2011 to 30.06.2012, hence the figures for the current period are not comparable with the previous period

RELATED PARTY DISCLOSURES

LIST OF RELATED PARTIES AND RELATIONSHIPS

S.NO. RELATIONSHIP NAME OF PARTY

(A) ASSOCIATES 1. ESSIX BIOSCIENCES LTD. 2. IND SWIFT LABORATORIES LIMITED 3. MANSA PRINT & PUBLISHERS LTD. 4. FORTUNE INDIA CONSTRUCTION LTD 5. DASHMESH MEDICARE PVT LTD. 6. 3M ADVERTISING & PUBLISHERS LTD 7. SWIFT FUNDAMENTAL RESEARCH & EDUCATION SOCIETY

(B) KEY MANAGEMENT PERSONNEL 1. MR. S.R. MEHTA - DIRECTORS 2. DR. G. MUNJAL 3. DR. V.R.MEHTA

---

Mar 31, 2011

1. The previous year fgures have been re-arranged and re-grouped wherever necessary.

2. The Company has sent letter of balance confirmation to all the parties but only a few have responded so far. So the balance in the party accounts whether in debit or in credit are subject to reconciliation.

3. The Company is a manufacturing company, so the information pursuant to the provisions of paragraph 3 & 4 of part II of schedule VI to the Companies Act, 1956 is as under: -

a) (i) Licensed Capacity - N.A.

(ii) Installed Capacity - (As on 31.03.2011)

- (As certified by the Management)

b) Particulars of actual production, sales & closing stock of fnished goods - As per annexure - I

c) Particulars of consumption of Material- As per annexure - II

4. Fixed deposits with banks are Rs.142534887/- (P/Y Rs.179826452/-) out of which Rs. 116208122/- (P/Y- Rs.90825353/-) are pledged as margin money with banks.

5. Expenses includes Rs.1828674/- (P/Y Rs.875994/-) as expenses relating to previous years.

6. Depreciation on assets has been provided for the entire accounting year on straight line method at the rates prescribed by Schedule XIV of the Companies Act, 1956. Depreciation in respect of additions to assets has been charged on prorata basis with reference to the period of use of such assets.

7. Contingent liabilities outstanding as on 31.03.2011 are as under:

a) Foreign Letter of Credit/Inland Letter of Credit/Bank Guarantee issued by Bankers:

(Rs.in Lacs)

Particulars 2010-11 2009-10

FLC 2221.77 679.00

ILC 17777.04 11762.58

BG 140.40 96.89

b) Corporate Guarantee on behalf of Ind Swift Laboratories Ltd of which company is the shareholder amounting to Rs. 3749 Lacs (Previous Year Rs.5000 Lacs) based on outstanding balances at the year end.

c) In respect of Income Tax matters pending before appellate authorities/CIT (Appeals) which the Company expects to succeed, based on decisions of Tribunals/Courts. There is contingent liability amounting to Rs. 5.78 crores.

8. Miscellaneous Income of Rs. 15,85,34,600/- is on account of surplus as difference of price on cancellation of contracts due to non supply of CMO by various parties during the year and on account of any possible error in the records. The said surplus has been accounted for on the basis of disclosure of income made by the company during action u/s 132 of the Income Tax Act ,1961.

9. Sales fgures for Chandigarh Depot are not reconcilied with Sales Tax Returns in the absence of sales tax records which was lying with sale tax deptt. at the time of compilation of Balance Sheet.

10. During the year the company was allotted 30,00,000 equity shares of Ind Swift Laboratories Ltd, the promoters Group company on conversion of 30,00,000 Zero Coupon convertible warrants.

11. a) During the year the company has allotted 1420000 cumulative Redeemable Preference Shares of Rs. 100/- each amounting to Rs.14.20 Crores against advance Share Capital money received.

b) During the year the Company has allotted 8000000 zero coupon convertible warrants to promoters group companies and other body corporate out of which 1000000 zero coupon convertible warrants have been converted in 1000000 equity shares of the company of Rs. 2/-each at a premium of Rs. 38/- per share.

c) During the year 4000000 zero coupon convertible Warrants issued by the company to M/s Essix Bioscinces Ltd have been converted in equity shares of Rs. 2/-each at a premium of Rs. 23/- each.

12. The company has introduced new product ranges like Inorine M, Menoguard MF, Aclovir 800(AD), Telhim, Arnold Combipack, Bodyfit, NEO Quadrimix (AD), Televo-OZ etc. during the year 2010-2011. The company has also substantially increased the number of head quarters in the states where it was working on a smaller scale. Expenses relating to the introduction & establishment of New Products Head Quarters have enduring beneficial effect beyond the year in which these are incurred. Such expenses are clubbed under the head Seed Marketing Expenses to be amortized in subsequent five equal annual installments.

13. R & D: Company is consistently undertaking Research & Development in new areas of Medicine. The R & D facility of the company is duly recognized by Deptt. of Science & Technology, Govt. of India. Company's team consisting of highly qualified scientists has proven their expertise in various areas of technology development. Expenses on Research phase are charged to Profit and Loss account and Expenses relating to development phase shall be capitalised in subsequent years in accordance with AS-26. Expenditure on R&D incurred by the Company during the Year is:

14. Total amount of term loans/installments of term loans repayable during twelve months following 31.03.2011 is Rs 8049.28 Lacs (Previous year Rs.5964.71 Lacs).

15. Loans and Advances due from officers of the company is Rs. Nil (Previous Year Rs.Nil)

16. In the opinion of the Board, the current assets, loans & advances shown in the Balance Sheet have a value of realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provision for all known and determined liabilities is adequate.

17. The Company has not received any information from its suppliers regarding registered under "The Micro Small and Medium Enterprises Development act 2006". Hence, the information required to be given in accordance in this section 22 of the said act is not ascertainable and not disclosed.

18. There were no lease obligations outstanding during the year and consequently no lease rentals were payable. There are no unexpired lease obligations as at the year end.

19. In the opinion of the management, the company is mainly engaged in the business of Pharmaceuticals. All activities of the company revolve around the main business and as such there are no separate reportable segments. The company caters mainly to the needs of the domestic market. The export turnover being less than 10% of the total turnover, there are no reportable geographical segments.

20. Company has taken a Defned Contribution Plan from Life Insurance Corporation of India which takes care its liability towards Gratuity entirely. As per Accounting Standard 15 on "Employee Benefits" the disclosure is given below.

i) Employer's Contribution to PF Rs .12046525/-

ii) Contribution to Gratuity Rs. 3593962/-

21. Intangible Assets :

a) Product Technology acquired by the company is recognized as an intangible asset and is amortised over its useful life of 5 years.

b) Product Technology addition forming Part of Depreciation schedule consists of following:

(Rs. in Lacs) Addition during the year 410.08

21 Related Party Disclosure

(a) List of related parties & their relationship – As per annexure- 'A'

(b) Related party transactions. – As per annexure- 'B'

22 During the year, the Company has undertaken a review of all fixed assets in line with the requirement of AS- 28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India. Based on such review, no provision for impairment is required to be recognized for the year.

23 The fgures have been rounded to the nearest rupee.

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Mar 31, 2010

1. The previous year figures have been re-arranged and re-grouped wherever necessary.

2. The Company has sent letter of balance confirmation to all the parties but only a few have re- sponded so far. So the balance in the party accounts whether in debit or in credit are subject to reconciliation.

3. Land Amounting to Rs. 4.43Lacs continues to be in the name of Mukur Pharmaceutical Co. Pvt. Ltd.

4. The Company is a manufacturing company, so the information pursuant to the provisions of paragraph 3 & 4 of part II of schedule VI to the Companies Act, 1956 is as under: -

a) (i) Licensed Capacity - N.A.

(ii) Installed Capacity - (As on 31.03.2010)

- (As certified by the Management)

5. Fixed deposits with banks are Rs. 179826452/- (P/Y Rs.81988543/-) out of which Rs.90825353/- ( P/Y- Rs.62444895/-) are pledged as margin money with banks.

6. Expenses includes Rs.875994/- (P/Y Rs.3038831/-) as expenses relating to previous years.

7 . Income includes Rs.Nil (P/Y Rs.999118/-) as income relating to previous years.

8. Depreciation on assets has been provided for the entire accounting year on straight line method at the rates prescribed by Schedule XIV of the Companies Act, 1956. Depreciation in respect of additions to assets has been charged on prorata basis with reference to the period of use of such assets.

9. Contingent liabilities outstanding as on 31.03.2010 are as under:

a) Foreign Letter of Credit/Inland Letter of Credit/Bank Guarantee issued by Bankers:

Particulars 2009-10 2008-09

(Rs.in Lacs)

FLC 679.00 351.39

ILC 11762.58 9055.31

BG 96.89 68.19

b) Corporate Guarantee on behalf of Ind Swift Laboratories Ltd of which company is the share- holder amounting to Rs.5000/- Lacs ( Previous Year Rs.1752/- Lacs) based on outstanding balances at the year end.

c) In respect of Income Tax matters pending before appellate authorities/CIT (Appeals) which the Company expects to succeed, based on decisions of Tribunals/Courts. There is contingent liability amounting to Rs. 5.56 crores.

10. Company has further invested Rs. 37500000/- in M/s Ind Swift Labs Ltd for which 30,00,000 of Zero coupon optionally convertible warrants from the Promoters Group Company have been received.

11. a) The Company has raised a sum of Rs. 24.20 Crores only (Twenty Four Crores twenty lacs only) as advance against Share Capital from private corporate Bodies, for which the company is in pro- cess of issuing Preference Shares.

b) The Company has received a sum of Rs. 2.5 crores (Rs. Two Crores Five lacs only) from M/s Essix Biosciences Ltd. as application money (25% of the issue price) for issue of 4000000 Zero Coupon Convertible Warrants (ZCCB) issued for Rs. 25/- per warrant.

12. The Investment in M/s Mansa Print & Publishers Ltd as on 31.03.2010 is Rs.1334500/-.

13. The company has introduced new product ranges like Anich-3,Clarie Dry Syrup,Cirrholiv Dry Syrup, PM Care Gold, Expodox-CV 100, Glypar-lmg, Glypar M1ER, Glypar 2mg etc. during the year 2009-2010. The company has also substantially increased the number of head quarters in the states where it was working on a smaller scale. Expenses relating to the introduction & establish- ment of New Products Head Quarters have enduring beneficial effect beyond the year in which these are incurred. Such expenses are clubbed under the head Seed Marketing Expenses to be amortized in subsequent five equal annual installments.

The Depreciation and Misc. exp. w/off related to Research & development are clubbed under respective heads in profit & loss account.

14. Total amount of term loans/installments of term loans repayable during twelve months following 31.03.2010 is Rs 5964.71 Lacs (Previous year Rs.4738.42 Lacs) and public deposits amounting to Rs. 482.50 Lacs (P/Y Rs.789.25 Lacs).

15. Loans and Advances due from officers of the company is Rs.3.72Lacs (Previous Year Rs.5.51Lacs) Maximum amount outstanding during the year was Rs.5.82 Lacs (Previous Year Rs.7.24 Lacs).

16. In the opinion of the Board, the current assets, loans & advances shown in the Balance Sheet have a value of realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provision for all known and determined liabilities is adequate.

17. Some of the suppliers of materials have been identified as Small Scale Industrial Undertakings on the basis of the information available with the company. However some of these parties has an outstanding credit balance for more than 30days as on 31.03.2010

18. There were no lease obligations outstanding during the year and consequently no lease rentals were payable. There are no unexpired lease obligations as at the year end.

19. In the opinion of the management, the company is mainly engaged in the business of Pharma- ceuticals. All activities of the company revolve around the fnain business and as such there are no separate reportable segments. The company caters mainly to the needs of the domestic market. The export turnover being less than 10% of the total turnover, there are no reportable geographi- cal segments.

20. Due to occurrence of fire at Parwanoo Plant there was loss of stocks and assets thus the company has lodged an insurance claim of Rs. 7.11 Crores with united India Assurance Company Ltd. and the same is pending as on 31.03.2010

21. Company has taken a Defined Contribution Plan from Life Insurance Corporation of India which takes care its liability towards Gratuity entirely. As per Accounting Standard 15 on "Employee Benefits the disclosure is given below.

i) Employers Contribution to PF Rs. 11361502/-

ii) Contribution to Gratuity Rs. 3107710/-

22. Intangible Assets :

a) Product Technology acquired by the company is recognized as an intangible asset and is amortised over its useful life of 5 years.

23. During the year, the Company has undertaken a review of all fixed assets in line with the require- ment of AS-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India. Based on such review, no provision for impairment is required to be recognized for the year.

24. The figures have been rounded to the nearest rupee.