Notes to Accounts of Indoco Remedies Ltd.

Mar 31, 2025

s. Provisions

A provision is recognised when the Company has a present obligation as a result of past events and it
is probable that an outflow of resources will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement benefits) are determined based on the
best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each
Balance Sheet date and adjusted to reflect the current best estimates.

t. Financial Instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

A. Financial Assets:

a. Initial recognition and measurement: All financial assets are recognised initially at fair value.
Transaction costs that are attributable to the acquisition of the financial asset which are not at
Fair Value Through Profit and Loss Account are adjusted to fair value on initial recognition.
Purchases or sales of financial assets are recognised on the settlement date i.e. the date that
the Company settles to purchase or sell the asset.

b. Subsequent measurement: For purposes of subsequent measurement, financial assets are
classified in four categories:

i. Financial Assets measured at amortised cost:

A "financial asset" is measured at the amortised cost if both the following conditions are
met:

- The asset is held with an objective of collecting contractual cash flows

- Contractual terms of the asset give rise on specified dates to cash flows that are "solely
payments of principal and interest" [SPPI] on the principal amount outstanding. After
initial measurement, such financial assets are subsequently measured at amortised
cost using the effective interest rate [EIR] method. Amortised cost is calculated by
taking into account any discount or premium on acquisition and fees or costs that
are an integral part of the EIR. The EIR amortisation is included in finance income in
the Statement of Profit and Loss. The losses arising from impairment are recognised
in the Statement of profit and loss.

ii. Financial Assets at fair value through other comprehensive income [FVTOCI]:

A ''financial asset'' is classified as at the FVTOCI if both of the following criteria are met:

- The asset is held with objective of both for collecting contractual cash flows and
selling the financial assets

- The asset''s contractual cash flows represent SPPI.

Financial Assets included within the FVTOCI category are measured initially as well as
at each reporting date at fair value. Fair value movements are recognized in the OCI.
However, the Company recognizes interest income, impairment losses & reversals and
foreign exchange gain or loss in the Statement of Profit and Loss. On derecognition of the
asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity
to Statement of Profit and Loss. Interest earned whilst holding FVTOCI debt instrument is
reported as interest income using the EIR method.

iii. Financial Assets at fair value through profit or loss [FVTPL]:

Financial assets, which are not classified in any of the above categories are measured at
FVTPL.

iv. Equity instruments:

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments
which are held for trading are classified as at FVTPL. For all other equity instruments,
the Company may make an irrevocable election to present subsequent changes in the
fair value in other comprehensive income. The Company has made such election on an
instrument by instrument basis. The classification is made on initial recognition and is
irrevocable. If the Company decides to classify an equity instrument as at FVTOCI, then
all fair value changes on the instrument, excluding dividends, are recognized in the OCI.
There is no recycling of the amounts from OCI to Statement of Profit and Loss, even on
sale of investment.

However, the Company may transfer the cumulative gain or loss within equity. Equity
instruments included within the FVTPL category are measured at fair value with all
changes recognized in the Statement of Profit and Loss.

v. Investments in subsidiaries and joint ventures:

I nvestments in subsidiaries and joint ventures are carried at cost less accumulated
impairment losses, if any. Where an indication of impairment exists, the carrying amount
of the investment is assessed and written down immediately to its recoverable amount.
On disposal of investments in subsidiaries and joint ventures, the difference between
net disposal proceeds and the carrying amounts are recognised in the statement of profit
and loss. Upon first-time adoption of Ind AS, the Company has elected to measure its
investments in subsidiaries and joint ventures at the Previous GAAP carrying amount as
its deemed cost on the date of transition to Ind AS i.e., April 1, 2015.

c. Derecognition:

A financial asset [or, where applicable, a part of a financial asset] is primarily derecognised
[i.e. removed from the Company''s balance sheet] when:

i. The rights to receive cash flows from the asset have expired, or

ii. The Company has transferred its rights to receive cash flows from the asset or has
assumed an obligation to pay the received cash flows in full without material delay to a
third party under a ''pass-through'' arrangement and either

[a] the Company has transferred substantially all the risks and rewards of the asset, or

[b] the Company has neither transferred nor retained substantially all the risks and
rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered
into a pass-through arrangement, it evaluates if and to what extent it has retained the risks
and rewards of ownership. When it has neither transferred nor retained substantially all of
the risks and rewards of the asset, nor transferred control of the asset, the Company continues
to recognise the transferred asset to the extent of the Company''s continuing involvement.
In that case, the Company also recognises an associated liability. The transferred asset and
the associated liability are measured on a basis that reflects the rights and obligations that
the Company has retained. When the Company has transferred the risks and rewards of
ownership of the financial asset, the same is derecognised.

d. Impairment of financial assets:

In accordance with Ind AS 109, the Company applies expected credit loss [ECL] model for
measurement and recognition of impairment loss on the following financial assets and credit
risk exposure:

i. Financial assets that are debt instruments, and are measured at amortised cost

ii. Trade receivables or any contractual right to receive cash or another financial asset

iii. Financial assets that are debt instruments and are measured as at FVTOCI. The Company
follows ''simplified approach'' for recognition of impairment loss allowance on Point b
above.

The application of simplified approach does not require the Company to track changes in
credit risk. Rather, it requires the Company to recognise the impairment loss allowance based
on lifetime ECLs at each reporting date, right from its initial recognition. For recognition of
impairment loss on other financial assets and risk exposure, the Company determines that
whether there has been a significant increase in the credit risk since initial recognition. If
credit risk has not increased significantly, 12-month ECL is used to provide for impairment
loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a
subsequent period, credit quality of the instrument improves such that there is no longer a
significant increase in credit risk since initial recognition, then the entity reverts to recognising
impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over
the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime
ECL which results from default events that are possible within 12 months after the reporting
date. ECL is the difference between all contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that the entity expects to receive [i.e., all
cash shortfalls], discounted at the original EIR. ECL impairment loss allowance [or reversal]
is recognized as expense/ income in the Statement of profit and loss. The balance sheet
presentation for various financial instruments is described below:

Financial assets measured as at amortised cost and contractual revenue receivables: ECL
is presented as an allowance, i.e., as an integral part of the measurement of those assets
in the balance sheet, which reduces the net carrying amount. Until the asset meets write¬
off criteria, the Company does not reduce impairment allowance from the gross carrying
amount. For assessing increase in credit risk and impairment loss, the Company combines
financial instruments on the basis of shared credit risk characteristics.

B. Financial Liabilities:

a. Initial recognition and measurement:

All financial liabilities are recognised at fair value and in case of borrowings, net of directly
attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit
and Loss as finance cost.

b. Subsequent measurement:

Subsequently all financial liabilities are measured as amortised cost, using EIR method. Gains
and losses are recognised in Statement of profit and loss when the liabilities are derecognised
as well as through the EIR amortisation process. Amortised cost is calculated by taking into
account any discount or premium on acquisition and fees or costs that are an integral part of
the EIR. The EIR amortisation is included as finance costs in the Statement of profit and loss.

c. Derecognition:

A financial liability is derecognised when the obligation under the liability is discharged
or cancelled or expires. When an existing financial liability is replaced by another from
the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the derecognition of
the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised in the Statement of profit and loss.

d. Embedded derivatives:

An embedded derivative is a component of a hybrid [combined] instrument that also includes
a non-derivative host contract - with the effect that some of the cash flows of the combined
instrument vary in a way similar to a standalone derivative. Derivatives embedded in all
other host contracts are accounted for as separate derivatives and recorded at fair value if
their economic characteristics and risks are not closely related to those of the host contracts
and the host contracts are not held for trading or designated at fair value though profit or loss.
These embedded derivatives are measured at fair value with changes in fair value recognised
in Statement of profit and loss, unless designated as effective hedging instruments.

C. Offsetting of financial instruments:

Financial assets and financial liabilities are offset and the net amount is reported in the balance
sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

u. Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly

transaction between market participants at the measurement date. The fair value measurement is based

on the presumption that the transaction to sell the asset or transfer the liability takes place either :

a. In the principal market for the asset or liability, or

b. In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company. The fair
value of an asset or a liability is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming that market participants act in their economic
best interest. A fair value measurement of a non-financial asset takes into account a market
participant''s ability to generate economic benefits by using the asset in its highest and best use
or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair
value is measured or disclosed in the financial statements are categorised within the fair value
hierarchy, described as follows, based on the lowest level input that is significant to the fair value
measurement as a whole:

a) Level 1 — Quoted [unadjusted] market prices in active markets for identical assets or
liabilities

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

c) Level 3 — Valuation techniques for which the lowest level input that is significant to the
fair value measurement is unobservable for assets and liabilities that are recognised in the
financial statements on a recurring basis, the Company determines whether transfers have
occurred between levels in the hierarchy by re-assessing categorisation [based on the lowest
level input that is significant to the fair value measurement as a whole] at the end of each
reporting period.

v. Employee Benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled
wholly 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.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave and sick leave that are not expected to be settled wholly within
12 months are measured as the present value of expected future payments to be made in respect
of services provided by employees up to the end of the reporting period using the projected unit
credit method. The benefits are discounted using the Government Securities (G-Sec) at the end
of the reporting period that have terms approximating to the terms of the related obligation. Re¬
measurements as a result of experience adjustments and changes in actuarial assumptions are
recognised in the Statement of Profit and Loss.

(iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) Defined benefit plans such as gratuity

(b) Defined contribution plans such as provident fund and Superannuation
Gratuity obligations

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is
the present value of the defined benefit obligation at the end of the reporting period less the fair
value of plan assets. The defined benefit obligation is calculated annually by actuaries using the
projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated
future cash outflows by reference to market yields at the end of the reporting period on government
bonds that have terms approximating to the terms of the related obligation.

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.

Re-measurement 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.

Defined Contribution Plans

Defined Contribution Plans such as Provident Fund, Superannuation etc., are charged to the
Statement of Profit and Loss as incurred.

w. Contributed Equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
i. Earnings per Share

Basic earnings per share

Basic earnings per share is calculated by dividing:

- The profit attributable to owners of the Company

- By the weighted average number of equity shares outstanding during the financial year,
adjusted for bonus elements in equity shares issued during the year.

Diluted earnings per share

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

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

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

ii. Dividends to shareholders

Annual dividend distribution to the shareholders is recognised as a liability in the period in which
the dividends are approved by shareholders. Any interim dividend paid is recognised on approval
by the board of directors. Dividend payable and corresponding tax on dividend distribution is
recognised directly in equity.

x. Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognised because it is not probable that
an outflow of resources will be required to settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot be recognised.

y. Leases

The Company has adopted IND AS 116, "Leases", effective April 1,2019, using modified retrospective
approach.

The Company, as a lessee, recognises a right-of-use asset and a lease liability for its leasing arrangements,
if the contract conveys the right to control the use of an identified asset. The cost of the right-of-use
asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any
lease payments made at or before the commencement date plus any initial direct costs incurred. The
right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated
impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use
assets is depreciated using the straight-line method from the commencement date over the shorter of
lease term or useful life of right-of-use asset.

The Company measures the lease liability at the present value of lease payments that are not paid
at the commencement date of the lease. The lease payments are discounted using the interest rate
implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined,
the Company uses incremental borrowing rate. For short term and low value leases, the Company
recognises the lease payments as an operating expense on a straight line basis over the lease term.

z. Equity settled share-based payments

Equity-settled share based payments to employees are measured at the fair value (i.e. excess of fair
value over the exercise price of the option) of the Employee Stock Options Plan at the grant date.
The fair value of option at the grant date is calculated by Black-Scholes model. In case the options
are granted to employees of the Company, the fair value determined at the grant date is expensed
on a straight-line basis over the vesting period, based on the Company''s estimate of options that will
eventually vest, with a corresponding increase in equity.

The dilutive effect of outstanding options is reflected in determining the diluted earnings per share.
NOTE 2: Use of Estimates and Judgments

The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the
Company and are based on historical experience and various other assumptions and factors (including expectations
of future events) that the Company believes to be reasonable under the existing circumstances. Differences between
actual results and estimates are recognised in the period in which the results are known/materialised.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that
date but provide additional evidence about conditions existing as at the reporting date.

1. Going Concern Assumption for Subsidiaries:

Warren Remedies Private Limited and FPP Holding Company, LLC had incurred a net loss of ''3,809.05 lakhs and ''2,741.25 lakhs respectively for
the year ended March 31, 2025 and its net worth has been fully eroded as at that date. However, the financial statements have been prepared on a
going concern basis, as the management is confident of the Company''s ability to continue its operations and meet its obligations in the foreseeable
future, based on the following considerations:

- Management expects that the Company will achieve improved operating performance and positive cash flows in the near future through increased
sales and improved gross margins.

In view of the above factors, management believes that the Company will be able to realize its assets and discharge its liabilities in the normal course
of business. Accordingly, the financial statements have been prepared on a going concern basis and do not include any adjustments relating to the
recoverability and classification of recorded assets or to the amounts and classification of liabilities that may be necessary should the Company be
unable to continue as a going concern.

2. The Company holds a 26% equity interest in Jalansar Wind Energy Private Limited and Kanakal Wind Energy Private Limited, both of which are
private companies. Despite holding more than 20% of the equity share capital, the Company does not have any representation on the board of
directors, nor does it participate in financial or operating policy decisions of these investees. Further, the Company does not possess any contractual
or other rights that would confer significant influence, as defined under Ind AS 28 - Investments in Associates and Joint Ventures.

Accordingly, these investments have not been classified as associates. In line with the requirements of Ind AS 109 - Financial Instruments,
the investments are classified as equity instruments measured at cost, given that these are unquoted shares for which fair value cannot be
measured reliably.

Note 19 : Equity Share Capital : Contd.

C) Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of '' 2/- per share. Each holder of equity
shares is entitled to one vote per share. All equity shares of the Company rank pari passu in all respects including
the right to dividend. The company declares and pays dividends in Indian rupees. The dividend proposed by the
Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2025, the amount of '' 0.20 per share on the face value of '' 2/- is proposed
to the equity shareholders of the Company (Previous year - '' 1.50 per share on face value of '' 2/- declared and
paid to the equity shareholders of the Company).

In the event of winding-up, subject to the rights of holders of shares issued upon special terms and conditions,
the holders of equity shares shall be entitled to receive remaining assets, if any, in proportion to the number of
shares held at the time of commencement of winding-up.

The description of the nature and purpose of each reserve within equity as follows :

Capital Reserve :

The Company recognises profit and loss on purchase, sale, issue or cancellation of the Company''s own equity
instruments to capital reserve.

Securities Premium :

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with
the provision of the Companies Act, 2013.

Employee Stock Options Outstanding Account :

The fair value of the equity-settled share based payment transactions with employees is recognised in standalone
statement of profit and loss with corresponding credit to Employee Stock Options Outstanding Account.

General Reserve :

The General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes.

As the general reserve is created by a transfer from one component of equity to another and is not an item of other
comprehensive income, items included in the general reserve will not be reclassified subsequently to statement of
profit and loss.

Retained Earnings :

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

Critical judgements in calculating amounts

When a customer has a right to return the product within a given period, the company recognises a provision for sales
return '' 1,682.36 lakhs as at March 31,2025 (March 31, 2024 - '' 1,900.60 lakhs). This is measured on the previous
history of sales return. Revenue is adjusted for the expected value of the returns and cost of sales & Inventory are
adjusted for the value of the corresponding goods to be returned.

Additional disclosures as required by Ind AS 115

Disaggregate revenue information

The table below presents disaggregated revenue information from contracts with customers for the year ended March
31, 2025. The company believes that this disaggregation reasonably depicts how the nature, amount, timing and
uncertainty of revenue and cash flows are affected by economic factors.

Note 40 : Employee benefit obligations

As required by IND AS 19 ''Employee benefits'' the disclosures are as under :

(i) Defined benefit plans

a. Leave obligations

The leave obligations cover the company''s liability for sick and earned leave.

The amount of the provision of '' 288.49 lakhs (March 31, 2024 - '' 250.68 lakhs) is presented as current,
since the company does not have an unconditional right to defer settlement for any of these obligations.
However, based on past experience, the company does not expect all employees to take the full amount of
accrued leave or require payment within the next 12 months and therefore provision is made on the basis of
actuarial valuation obtained.

b. Post-employment obligations
i. Gratuity

The company provides gratuity for employees in India as per the Payment of Gratuity Act, 1972.
Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount
of gratuity payable on retirement/termination is the employees last drawn basic salary per month
computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity
plan is a funded plan and the company makes contributions to recognized funds in India. The company
maintains a target level of funding to be maintained over a period of time based on estimations of
expected gratuity payments.

(ii) Defined contribution plans

a. Provident Fund

The company also has certain defined contribution plans. Contributions are made to provident fund in India
for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered
provident fund administered by the government. The obligation of the company is limited to the amount
contributed and it has no further contractual nor any constructive obligation. The expense recognized during
the period towards defined contribution plan is '' 2,488.66 lakhs (March 31,2024 - '' 2,535.77 lakhs).

b. Superannuation

The company contributed '' 138.78 lakhs (March 31, 2024 - '' 131.06 lakhs) to the superannuation plan.
The same has been recognized in the Statement of profit and loss account under the head employee benefit
expenses.

Level 1 : Hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments
and mutual funds that have quoted price. The mutual funds are valued using the closing NAV.

Level 2 : The fair value of financial instruments that are not traded in an active market (like forward contract) is
determined using valuation techniques which maximise the use of observable market data and rely as little as possible
on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument
is included in level 2.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3. This is the case for unlisted equity securities etc. included in level 3.

__)

This section explains the judgements and estimates made in determining the fair values of the financial instruments
that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are
disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining
fair value, the company has classified its financial instruments into the three levels prescribed under the accounting
standard. An explanation of each level follows underneath the table.

Note 43 : Capital Management
(a) Risk management

The company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern
and to optimise returns to our shareholders.

The capital structure of the company is based on management''s judgement of the appropriate balance of key
elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to
risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of
the underlying assets. In order to maintain or adjust the capital structure, the company may adjust the amount of
dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to
maintain investor, creditors and market confidence and to sustain future development and growth of its business.
The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

The company monitors capital on the basis of the following gearing ratio : Net debt (total borrowings net of cash
and cash equivalents) divided by Total Equity.

Note 44 : Segment Information

(a) Description of segments and principal activities

The company has only one reporting segment of its business i.e. Pharmaceutical, wherein the company''s strategic
steering committee, consisting of the chief executive officer, the chief financial officer and the manager for
corporate planning, examines the group''s performance both from a product and geographic perspective.

The steering committee primarily uses a measure of adjusted earnings before other income, finance cost, tax,
depreciation and amortisation (EBITDA, see below) to assess the performance of the operating segments. However,
the steering committee also receives information about the segment''s revenue and assets on a monthly basis

(b) Adjusted EBITDA

Adjusted EBITDA excludes discontinued operations and the effects of significant items of income and expenditure
which may have an impact on the quality of earnings such as restructuring costs, impairments when the impairment
is the result of an isolated, non-recurring event. It also excludes the effects of share-based payments and gains or
losses on financial instruments.

Interest income and finance cost are not allocated to segments, as this type of activity is driven by the central
treasury function, which manages the cash position of the company.

Note 51 : FINANCIAL RISK MANAGEMENT
Financial risk management objectives and policies

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The
Company''s financial risk management policy is set by the Audit Committee of the Board of Director.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in
the price of a financial instrument. The value of a financial instrument may change as a result of changes in the
interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive
instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and
deposits, foreign currency receivables, payables and loans and borrowings.

The Company manages market risk through a Finance department, which evaluates and exercises independent
control over the entire process of market risk management. The Finance department recommend the risk management
objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this
department include management of cash resources, implementing hedging strategies for foreign currency exposures
like foreign exchange forward contracts, borrowing strategies and ensuring compliance with market risk limits and
policies.

Market Risk- Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because
of changes in market interest rates. In order to optimize the Company''s position with regards to interest income
and interest expenses and to manage the interest rate risk, finance department performs a comprehensive corporate
interest rate risk management policy by balancing the proportion of fixed rate and floating rate financial instruments
in its total portfolio.

According to the Company interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities,
the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was
outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally
to key management personnel and represents management''s assessment of the reasonably possible change in interest
rates.

Market Risk- Foreign currency risk.

The company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions,
primarily with respect to USD, EURO, GBP and AUD. Foreign exchange risk arises from future commercial transactions
and recognised assets and liabilities denominated in a currency that is not the company''s functional currency (INR).

Note 51 : FINANCIAL RISK MANAGEMENT : Contd.

The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is
to minimise the volatility of the INR cash flows of highly probable forecast transactions.

The company risk management policy is to hedge forecasted foreign currency sales for the subsequent 24 to 60
months. As per the risk management policy, foreign exchange forward contracts are taken to hedge forecasted sales.

The company also imports certain materials and Capital Goods which are denominated in USD, EURO, GBP, CHF,
JPY, CNY which exposes the company to foreign currency risk to minimise the risk of imports, the company naturally
hedges its imports.

The spot component of forward contracts is determined with reference to relevant spot market exchange rates. The
differential between the contracted forward rate and the spot market exchange rate is defined as the forward points.

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To
manage this, the Company periodically assesses financial reliability of customer and other counter parties, taking into
account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial
assets. Individual risk limits are set and periodically reviewed on the basis of such information.

The Company consider the probability of default upon initial recognition of asset and whether there has been a
significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a
significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date
with the risk of default as at the date of initial recognition. It considers reasonable and supportive forward looking
information such as:

• Actual or expected significant adverse changes in business,

• Actual or expected significant changes in the operating results of the counterparty,

• Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to
meet its obligations,

• Significant increase in credit risk on other financial instruments of the same counterparty,

• Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party
guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage
in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues
to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are
recognized as income in the statement of Profit and Loss.

The Company measures the expected credit loss of trade receivables and loan from individual customer based on
historical trend, industry practices and the business environment in which the entity operates. Loss rates are based
on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not
material hence no additional provision considered.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out
market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility
in funding by maintaining availability under committed credit lines. Management monitor rolling forecasts of the
Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on
the basis of expected cash flows.

(i) Financing arrangements

The Company had access to the following undrawn borrowing facilities at the end of the reporting period:

Legal Case -

a) MR''s / Petitioners have filed a defamation suit against the company under Section 38 / Section 40 of the Specific
Relief Act 1963 and the matter is pending before civil court of Jalandhar jurisdiction for '' 5 Lakhs each. Total
Contingent liability against the suit is '' 20 Lakhs (Previous Year - '' 20 Lakhs)

b) Chartered of Demand (COD) case filed by Union FMRAI (Federation of Medical and Sales Representatives of
India) for revision of field employee''s salary which is pending since 2012 in Industrial Tribunal Mumbai in case
bearing no. ITR No. 2 of 2012 FMRAI V/s Indoco Remedies Limited, Mumbai. Total Contingent liability against
the suit is '' 30 Lakhs (Previous Year - '' 30 Lakhs)

* Income Tax demand comprises of

a) '' 5.98 lakhs (Previous year - '' 5.98 lakhs) appearing as TDS defaults on account of short Deduction / Short
Payment & Interest thereon etc. of various assessment years.

b) '' 82.15 lakhs (Previous year - '' 82.15 lakhs) demand issued by AO on account of Regular Assessment u/s 143(3)
for AY 2018-19. The Company has preferred the appeal against the aggrieved demand order before CIT(A) which
is yet to be heard. The said demand is as per rectification order u/s 154 passed in favour of the company due to

correct calculation of book profit u/s 115JB and allowing MAT credit u/s 115JAA.

c) '' 38.12 lakhs (Previous year - '' 38.12 lakhs) demand issued by AO on account of proceedings u/s 201(1) /
201(1A) of the Income tax Act for AY 2019-20. The Company has preferred the appeal against the aggrieved
demand order before CIT(A) which is yet to be heard.

d) '' 260.22 lakhs (Previous year - '' 260.22 lakhs) demand issued by AO on account of Regular Assessment u/s
143(3) for AY 2022-23. The Company has preferred the appeal against the aggrieved demand order before CIT(A)
which is yet to be heard.

e) '' 89.24 lakhs (Previous year - '' NIL) demand issued by AO on account of Regular Assessment u/s 143(3) for AY
2023-24. The Company has preferred the appeal against the aggrieved demand order before CIT(A) which is yet
to be heard.

** Sales Tax demand comprises of

(I) Vijayawada A.P.Sales Tax :-

a) '' 12.83 lakhs (Previous year - '' 12.83 lakhs) in respect of order from Asst. Commissioner (CT) Audit, Vijayawada
for classification dispute for the period June 14 to March 2016. The Company has preferred an appeal before
Appellate Deputy Commissioner (CT), Vijayawada which was dismissed. The Company preferred appeal to AP
VAT Appellate Tribunal Vishakhapatnam which is yet to be heard.

b) '' 3.21 lakhs (Previous year - '' 3.21 lakhs) is penalty imposed on demand pertaining to order from Asst.
Commissioner (CT) Audit, Vijayawada for classification dispute for the period June 14 to March 2016. The
Company has preferred an appeal before Appellate Deputy Commissioner (CT), Vijayawada which was dismissed.
The Company preferred appeal to AP VAT Appellate Tribunal Vishakhapatnam which is yet to be heard.

(II) Goa Sales Tax :-

c) '' 46.32 lakhs (Previous year - '' 46.32 lakhs) as the amount of demand (including penalty) raised by sales tax
officer for Financial Year 2007-08, 2009-10 and 2013-14 on account of input credit of entry tax. The Company
has filed appeal before Asst. Commissioner of Commercial Taxes, who has set aside the previous order and
directed Assessing Officer for Re-assessment.

*** Excise tax demand comprises of

a) Company appeal is pending before CESTAT for wrong availment of notification on exempted goods '' 0.66 lakhs
(Previous year - '' 0.66 lakhs).

b) Appeal pending before Divisional Dy. Commissioner, Boisar for classification dispute '' 5.04 lakhs (Previous year
- '' 5.04 lakhs).

c) CENVAT credit on input service '' NIL (Previous year - '' NIL), appeal pending before CESTAT, Mumbai.

d) Company appeal is pending before Divisional Dy. Commissioner, Mumbai for wrong availment of CENVAT
credit '' 0.79 lakhs (Previous year - '' 0.79 lakhs).

e) Central excise department is in appeal before Supreme Court for Differential duty on intermixture of vitamins /
minerals amounting to '' 2.91 lakhs (Previous year - '' 2.91 lakhs).

f) CENVAT credit on input service '' 494.42 lakhs (Previous year - '' 494.42 lakhs), appeal pending before CESTAT,
Mumbai.

g) Company appeal is pending before CESTAT for CENVAT credit availment on physician sample amounting to
'' 0.20 lakhs (Previous year - '' 0.20 lakhs).

h) Central excise department is in appeal at Supreme Court for valuation of physician sample '' 11.20 lakhs (Previous
year - '' 11.20 lakhs).

i) '' 139.78 lakhs (Previous year - '' 139.78 lakhs) pending before CESTAT, Mumbai for Exempted product-
Allopurinol Value Based Duty Reversal.

**** GST demand comprises of

a) The Company received Order under section 73 from Office of the Dy. Comm, of State Tax for tax period
2017-18 of ''. 4.67 lakhs (Previous year - '' 4.99 lakhs). The Company has preferred the appeal against the
aggrieved demand order before Appellate Authority which is yet to be heard.

b) To regularised the Transitional ITC availed through GSTR-3B, The Company has file Revised Tran-1 Return as
per the directions issued by Hon''ble Supreme Court vide Order Dated 22.07.2022 in the matter of Union Bank
of India Vs. Filco Trade Centre Pvt. Ltd. SLP (C) No. 32709-32710 / 2018. The Company has received State wise
orders in this case for rejection of revise Tran-1 credit. Details are as under:-

The Company has filed appeal in the above mentioned orders at respective state Appellate Authorities against
rejection of revised Tran-1 Credit.

c) The Company received Order Dt. October 31, 2023 from the Office of the Jt. Commissioner CGST and Central
Excise Mumbai East Commissionerate under section 73(1) of CGST Act, 2017 for wrong availment of Tran-
1 Credit. The Company has distributed this Tran-1 Credit to its various units registered under different states.
The Company has also received adverse order in those states also and demand order was issued by State GST
authorities for availment of Tran-1 credit (as mentioned in para c above). Hence this is duplicate addition by
Central as well as by State GST authorities for the same issue of availment of Tran-1 credit. The Company has
preferred appeal against the aggrieved demand order before Appellate Authority which is passed in favour of the
Company hence demand reduced to '' NIL during the year (Previous year - '' 631.75 lakhs)

d) The Company received Order Dt. 29^th November, 2023 from the Office of the Joint Commissioner, GST & CX,
Mumbai East under section 73(1) of CGST Act, 2017 of '' 75.37 lakhs (Interest '' 32.39 lakhs Penalty '' 42.97
lakhs) (Previous year - '' 75.37 lakhs) for the period from July 2018 to January 2019 during which the Company
has availed excess ITC as per Order. The Company has preferred appeal against the aggrieved demand order
before Appellate Authority which is pending.

e) The Company received SCN from Office of the Dy. Commissioner of State Tax, Patna, Bihar of '' 2.93 lakhs
(Previous year - '' 2.93 lakhs). The assessment is under progress.

f) The Company received Order from Office of the Assistant Commissioner LGSTO 062- Bengaluru, Karnataka of
'' 0.75 lakhs (Previous year - '' 0.75 lakhs). The Company has preferred appeal against the aggrieved demand
order before Appellate Authority which is pending.

g) The Company received Order from Office of the Deputy Commissioner of State Tax Mumbai Maharashtra of
'' 263.21 lakhs (Previous year - '' 263.21 lakhs) including interest for the year 2018-19. The Company has
received adverse order for the same issue of Tran-1 credit which is mentioned in Para c and Para d above. Hence
this is duplicate addition by Central as well as by State GST authorities for the same issue of availment of Tran-1
credit. The Company has preferred appeal against the aggrieved demand order before Appellate Authority which
is pending.

h) The Company received Order from Office of the Dy. Commissioner Dehradun Uttarakhand of '' 1.50 lakhs
(Previous year - '' 1.50 lakhs) for the year 2017-18. The Company has preferred appeal against the aggrieved
demand order before Appellate Authority which is pending.

i) The Company received Order from Office of the Commissioner, Goa of '' 1584,31 lakhs (Previous year -
'' 1584,31 lakhs) for the year 2017-18. The Company has preferred appeal against the aggrieved demand order
before Appellate Authority which is pending,

j) The Company received Order from Office of the Dy. Commissioner, Jaipur, Rajasthan of '' 13,46 lakhs (Previous
year - '' NIL) for the year 2019-20, The Company has preferred appeal against the aggrieved demand order before
Appellate Authority which is pending,

k) The Company received Intimation from the office of the Joint Commissioner of State Tax, Special Circle, Ranchi,
Jharkhand of '' 2,82 lakhs (Previous year - '' NIL) for the year 2020-21, The Company will be taking all necessary
actions to present and defend its case before the relevant authorities and address the demand and penalties, if
any,

l) The Company received Notice from Office of the Asst Commissioner of State Tax, Raipur, Chhattisgarh of '' 9,99
lakhs (Previous year - '' NIL) for the year 2023-24, The Company will be taking all necessary actions to present
and defend its case before the relevant authorities and address the demand and penalties, if any,

m) The Company received Order from Office of the Deputy Commissioner, West Bengal of '' 15,85 lakhs (Previous
year - '' NIL) for the year 2020-21, The Company will be taking all necessary actions to present and defend its
case before the relevant authorities and address the demand and penalties, if any,

n) The Company received Order from Office of the Asst, Commissioner, Dehradun of '' 0,39 lakhs (Previous year -
'' NIL) for the year 2020-21, The Company will be taking all necessary actions to present and defend its case
before the relevant authorities and address the demand and penalties, if any,

o) The Company received Order from Office of the Asst, Commissioner of State Tax, Guwahati Assam of '' 12,49
lakhs (Previous year - '' NIL) for the year 2018-19, The Company has preferred appeal against the aggrieved
demand order before Appellate Authority which is pending,

The above information regarding Micro Enterprises and small Enterprises has been determined on the basis of
information available with the Company, No interest has been accrued on delayed payments, if any.

Note 57

Previous year''s figures have been regrouped and reclassified wherever necessary.

As per our Report of even date attached For and on behalf of the Board of Directors

Sd/- Sd/-

For Gokhale & Sathe Aditi Panandikar Sundeep V Bambolkar

Chartered Accountants Managing Director Jt. Managing Director

Firm Registration no.: 103264W DIN : 00179113 DIN : 00176613

Sd/- Sd/- Sd/-

Atul Kale Pramod Ghorpade Ramanathan Hariharan

Partner Chief Financial Officer Company Secretary & Head-Legal

M. No. 109947 M. No. A20593

Mumbai : May 22, 2025

---

Mar 31, 2024

Amounts recognised in profit or loss

Provision for write-downs of inventories amounted to INR 889.74 lakhs (March 31,2023 - INR 2,087.61 lakhs). These were recognised as an expense during the year and included in changes in value of inventories of work-in-progress, stock-in-trade and finished goods in statement of profit and loss.

Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of '' 2/- per share. Each holder of equity shares is entitled to one vote per share. All equity shares of the Company rank pari passu in all respects including the right to dividend. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended March 31, 2024, the amount of '' 1.50 per share on the face value of '' 2/- is proposed to the equity shareholders of the Company (Previous year - '' 2.25 per share on face value of '' 2 declared and paid to the equity shareholders of the Company).

In the event of winding-up, subject to the rights of holders of shares issued upon special terms and conditions, the holders of equity shares shall be entitled to receive remaining assets, if any, in proportion to the number of shares held at the time of commencement of winding-up.

The description of the nature and purpose of each reserve within equity as follows :

Capital Reserve :

The Company recognises profit and loss on purchase, sale, issue or cancellation of the Company''s own equity instruments to capital reserve.

Securities Premium :

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the Companies Act, 2013.

Employee Stock Options Outstanding Account :

The fair value of the equity-settled share based payment transactions with employees is recognised in standalone statement of profit and loss with corresponding credit to Employee Stock Options Outstanding Account.

General Reserve :

The General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to statement of profit and loss.

Retained Earnings :

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

(i) Information about individual provisions and significant estimates Sales Returns

When a customer has a right to return the product within a given period, the company recognises a provision for returns INR 1,900.60 lakhs as at March 31, 2024 (March 2023 - INR 1,728.18 lakhs). This is measured on the previous history of sales return. Revenue is adjusted for the expected value of the returns and cost of sales & Inventory are adjusted for the value of the corresponding goods to be returned.

Critical judgements in calculating amounts

When a customer has a right to return the product within a given period, the company recognises a provision for sales return INR 1,900.60 lakhs as at March 31,2024 (March 31,2023 - INR 1,728.18 lakhs). This is measured on the previous history of sales return. Revenue is adjusted for the expected value of the returns and cost of sales & Inventory are adjusted for the value of the corresponding goods to be returned.

Additional disclosures as required by Ind AS 115 Disaggregate revenue information

The table below presents disaggregated revenue information from contracts with customers for the year ended March 31, 2024. The company believes that this disaggregation reasonably depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

Performance obligations

a. Significant payment terms

In case of Domestic Sales, payment terms ranges from 7 days to 90 days based on geography and customers. In case of Export Sales these are either DP at sight, Document against acceptance - 30 days to 120 days, Letters of Credit - 30 days to 120 days.

b. Obligations for returns, refunds and similar obligations

In case of domestic sales, sales return may take place anytime before / after the expiry of goods.

Note 40 : Employee benefit obligations

As required by IND AS 19 ''Employee benefits'' the disclosures are as under :

(i) Defined benefit plans

a. Leave obligations

The leave obligations cover the company''s liability for sick and earned leave.

The amount of the provision of INR 250.68 lakhs (March 31,2023 - INR 297.27 lakhs) is presented as current, since the company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months and therefore provision is made on the basis of actuarial valuation obtained.

b. Post-employment obligations i. Gratuity

The company provides gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the company makes contributions to recognized funds in India. The company maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

(ii) Defined contribution plans

a. Provident Fund

The company also has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognized during the period towards defined contribution plan is INR 2,535.77 lakhs (March 31,2023 - INR 2,156.39 lakhs).

b. Superannuation

The company contributed INR 131.06 lakhs (March 31, 2023 - INR 115.13 lakhs) to the superannuation plan. The same has been recognized in the Statement of profit and loss account under the head employee benefit expenses.

(iii) Balance sheet amounts - Gratuity

The amounts recognized in the balance sheet and the movements in the net defined benefit obligation over the year are as follows :

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

Fair value hierarchy

Level 1 :Hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The mutual funds are valued using the closing NAV.

Level 2 : The fair value of financial instruments that are not traded in an active market (like forward contract) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities etc. included in level 3.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Note 43 : Capital Management (a) Risk management

The company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to our shareholders.

The capital structure of the company is based on management''s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

The company monitors capital on the basis of the following gearing ratio : Net debt (total borrowings net of cash and cash equivalents) divided by Total Equity.

Note 44 : Segment Information

(a) Description of segments and principal activities

The company has only one reporting segment of its business i.e. Pharmaceutical, wherein the company''s strategic steering committee, consisting of the chief executive officer, the chief financial officer and the manager for corporate planning, examines the group''s performance both from a product and geographic perspective.

The steering committee primarily uses a measure of adjusted earnings before other income, finance cost, tax, depreciation and amortisation (EBITDA, see below) to assess the performance of the operating segments. However, the steering committee also receives information about the segment''s revenue and assets on a monthly basis.

(b) Adjusted EBITDA

Adjusted EBITDA excludes discontinued operations and the effects of significant items of income and expenditure which may have an impact on the quality of earnings such as restructuring costs, impairments when the impairment is the result of an isolated, non-recurring event. It also excludes the effects of share-based payments and gains or losses on financial instruments.

Interest income and finance cost are not allocated to segments, as this type of activity is driven by the central treasury function, which manages the cash position of the company.

Note 45 : Share Based Payment Plan (ESOP)

A) Employee Stock Option Plan

The Nomination and Remuneration Committee of the Board has approved in the earlier year the grant of equity based incentive scheme under Indoco Remedies Limited Employee Stock Option Plan- 2022. The Company has created Indoco Employees Welfare Trust for implementation of Indoco Remedies Limited Employee Stock Option Plan- 2022.

The options issued under the above scheme vest in a phased manner. During the year 1,03,000 options have been granted by the Company under the above aforesaid Equity based incentive scheme to the employees of the Company.

Note 49 : Additional Regulatory Information

S no. Particulars

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

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

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

4 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

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

5 The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

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

6 The Company has no such transaction which is not recorded in the books of accounts that have 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).

7 The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

8 The Company has not given any loans or advances in the nature of loans to the promoters, directors, KMP''s and other related parties (as defined under Companies Act 2013) either severely or jointly except for its subsidaries-Warren Remedies Private Limited and FPP Holding Company, LLC.

9 The Company has not been declared as a wilful defaulter by any bank or financial institution or other lenders during the year.

Note 51 : FINANCIAL RISK MANAGEMENT Financial risk management objectives and policies

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Audit Committee of the Board of Director.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.

The Company manages market risk through a Finance department, which evaluates and exercises independent control over the entire process of market risk management. The Finance department recommend the risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures like foreign exchange forward contracts, borrowing strategies and ensuring compliance with market risk limits and policies.

Market Risk- Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regards to interest income and interest expenses and to manage the interest rate risk, finance department performs a comprehensive corporate interest rate risk management policy by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

According to the Company interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.

Market Risk- Foreign currency risk.

The company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to USD, EURO, GBP and AUD. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company''s functional currency (INR).

The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility of the INR cash flows of highly probable forecast transactions.

The company risk management policy is to hedge forecasted foreign currency sales for the subsequent 24 to 60 months. As per the risk management policy, foreign exchange forward contracts are taken to hedge forecasted sales.

The company also imports certain materials and Capital Goods which are denominated in USD, EURO, GBP, CHF, JPY, CNY which exposes the company to foreign currency risk to minimise the risk of imports, the company naturally hedges its imports.

The spot component of forward contracts is determined with reference to relevant spot market exchange rates. The differential between the contracted forward rate and the spot market exchange rate is defined as the forward points.

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customer and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forward looking information such as:

• Actual or expected significant adverse changes in business,

• Actual or expected significant changes in the operating results of the counterparty,

• Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations,

• Significant increase in credit risk on other financial instruments of the same counterparty,

• Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of Profit and Loss.

The Company measures the expected credit loss of trade receivables and loan from individual customer based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitor rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time in INR. The amount is arrived at based on the Sanctioned Limits by the Banks and the same is subject to change based on the Maximum Permissible Bank Finance (MPBF) and Drawing Power.

Note 52 on financial statements for the year ended March 31, 2024 Contingent Liabilities not provided for: ('' in lakhs)
Particulars		As at March 31, 2024	As at March 31, 2023
A)	Matters under dispute
i)	Income Tax (? 59.67 lakhs has been paid as pre-deposit Previous year '' 7.63 lakhs)*	386.47	1,899.29
ii)	Sales Tax (? 8.02 lakhs has been paid under protest / settlement, Previous year '' 696.52 lakhs) **	62.36	1034.09
iii)	Excise / Service Tax (? 79.65 lakhs has been paid as pre-deposit Previous Year '' 82.08 Lakhs)***	655.00	656.80
iv)	GST ('' 156.99 lakhs has been paid as pre-deposit Previous Year '' 0.45 Lakhs)****	3,080.73	522.94
v)	Labour Law Matter	50.00	50.00
B)	Bank Guarantees	1,269.52	485.97
C)	Letters of Credit	2,355.88	404.89
D)	Corporate Guarantee	21,450.00	-
E)	Estimated amount of contracts remaining to be executed	5,480.15	3,856.84

Legal Case -

a) MR''s / Petitioners have filed a defamation suit against the company under Section 38 / Section 40 of the Specific Relief Act 1963 and the matter is pending before civil court of Jalandhar jurisdiction for '' 5 Lakhs each. Total Contingent liability against the suit is '' 20 Lakhs (Previous Year - '' 20 Lakhs).

b) Chartered of Demand (COD) case filed by Union FMRAI (Federation of Medical and Sales Representatives of India) for revision of field employee''s salary which is pending since 2012 in Industrial Tribunal Mumbai in case bearing no. ITR No. 2 of 2012 FMRAI V/s Indoco Remedies Limited, Mumbai. Total Contingent liability against the suit is '' 30 Lakhs (Previous Year - '' 30 Lakhs).

* Income Tax demand comprises of

a) '' 5.98 lakhs (Previous year - '' 5.98 lakhs) appearing as TDS defaults on account of short Deduction / Short Payment & Interest thereon etc. of various assessment years.

b) '' 82.15 lakhs (Previous year - '' 1855.19 lakhs) demand issued by AO on account of Regular Assessment u/s 143(3) for AY 2018-19. The Company has preferred the appeal against the aggrieved demand order before CIT(A) which is yet to be heard. Meanwhile the Company has also applied for rectification u/s 154. The Company received rectification order u/s 154 and tax demand reduced to '' 82.14 Lacs due to correct calculation of book profit u/s 115Jb and allowing MAT credit u/s 115JAA.

c) '' 38.12 lakhs (Previous year - '' 38.12) demand issued by AO on account of proceedings u/s 201(1) / 201(1A) of the Income tax Act for AY 2019-20. The Company has preferred the appeal against the aggrieved demand order before CIT(A) which is yet to be heard.

d) '' 260.22 lakhs (Previous year - '' NIL lakhs) demand issued by AO on account of Regular Assessment u/s 143(3) for AY 2022-23. The Company has preferred the appeal against the aggrieved demand order before CIT(A) which is yet to be heard.

** Sales Tax demand comprises of

(I) Telangana Sales Tax:-

a) '' NIL (Previous year - '' 189.81 lakhs) demand pertaining to classification dispute under Andhra Pradesh VAT Act for the period April 2005 to March 2009. The Company has filed an appeal before High Court which is yet to be heard.

b) '' NIL (Previous year - '' 619.19 lakhs) demand (including penalty) pertaining to classification dispute under Andhra Pradesh VAT Act for the period April 2009 to December 2013. The Company has filed an appeal before Telangana VAT Appellate Tribunal Hyderabad which is yet to be heard.

c) '' NIL (Previous year - '' 96.86 lakhs) is penalty imposed on demand of April 2009 to October 2012 under Andhra Pradesh VAT Act for classification dispute. The Company has filed an appeal before Appellate Deputy Commissioner (CT), Hyderabad Rural Division which is yet to be heard.

d) '' NIL (Previous year - '' 59.88 lakhs) demand pertaining to classification dispute under Telangana VAT Act for the period Jan 2014 to June 2017. The Company has filed an appeal before Appellate Deputy Commissioner (CT), Hyderabad Rural Division which is yet to be heard.

e) '' NIL (Previous year - '' 5.99 lakhs) is penalty imposed on demand pertaining to classification dispute under Telangana VAT Act for the period Jan 2014 to June 2017. The Company has filed an appeal before Deputy Commissioner (CT), Saroornagar Division, Hyderabad which is yet to be heard.

The Company has applied for One Time Settlement (OTS) Scheme 2022 as per the Amnesty Scheme declared by Government of Telangana for the above mentioned disputed Commercial Taxes pending at various forums. As per the Scheme, 50% of balance outstanding taxes will be collected while remaining 50% of demand will be waived off. The Interest & penalty shall be waived off for the dealers availing the scheme. No refunds shall be given under the scheme. As per the Letter of Acceptance of Application of OTS in Form 4, We have paid settlement amount during FY 2022-23. The Final Settlement Order is received and in view of the above settlement payment, pending cases are stated to be withdrawn and arrears are settled as per the Final Settlement Order.

(II) Vijayawada A.P.Sales Tax :-

f) '' 12.83 lakhs (Previous year - '' 12.83 lakhs) in respect of order from Asst. Commissioner (CT) Audit, Vijayawada for classification dispute for the period June 14 to March 2016. The Company has preferred an appeal before Appellate Deputy Commissioner (CT), Vijayawada which was dismissed. The Company preferred appeal to AP VAT Appellate Tribunal Vishakhapatnam which is yet to be heard.

g) '' 3.21 lakhs (Previous year - '' 3.21 lakhs) is penalty imposed on demand pertaining to order from Asst. Commissioner (CT) Audit, Vijaywada for classification dispute for the period June 14 to March 2016. The Company has preferred an appeal before Appellate Deputy Commissioner (CT), Vijaywada which was dismissed. The Company preferred appeal to AP VAT Appellate Tribunal Vishakhapatnam which is yet to be heard.

(III) Goa Sales Tax :-

h) '' 46.32 lakhs (Previous year - '' 46.32 lakhs) as the amount of demand (including penalty) raised by sales tax officer for Financial Year 2007-08,2009-10 and 2013-14 on account of input credit of entry tax. The Company has filed appeal before Asst. Commissioner of Commercial Taxes, who has set aside the previous order and directed Assessing Officer for Re-assessment.

*** Excise tax demand comprises of

a) Company appeal is pending before CESTAT for wrong availment of notification on exempted goods '' 0.66 lakhs (Previous year - '' 0.66 lakhs).

b) Appeal pending before Divisional Dy. Commissioner, Boisar for classification dispute '' 5.04 lakhs (Previous year - '' 5.04 lakhs).

c) CENVAT credit on input service '' NIL lakhs (Previous year - '' NIL lakhs), appeal pending before CESTAT, Mumbai.

d) Company appeal is pending before Divisional Dy. Commissioner, Mumbai for wrong availment of CENVAT credit '' 0.79 lakhs (Previous year - '' 0.79 lakhs).

e) Central excise department is in appeal before Supreme Court for Differential duty on intermixture of vitamins / minerals amounting to '' 2.91 lakhs (Previous year - '' 2.91 lakhs).

f) CENVAT credit on input service '' 494.42 lakhs (Previous year - '' 494.42 lakhs), appeal pending before CESTAT, Mumbai.

g) Company appeal is pending before CESTAT for CENVAT credit availment on physician sample amounting to '' 0.20 lakhs (Previous year - '' 0.20 lakhs).

h) Central excise department is in appeal at Supreme Court for valuation of physician sample '' 11.20 lakhs (Previous year - '' 11.20 lakhs).

i) '' 139.78 lakhs (Previous year - '' 139.78 lakhs) pending before CESTAT, Mumbai for Exempted product-Allopurinol Value Based Duty Reversal.

**** GST demand comprises of

a) The Company received Order under section 73 from Office of the Dy. Comm. of State Tax for tax period 201718 of '' 4.99 lakhs (Previous year - '' 4.99 lakhs). The Company has preferred the appeal against the aggrieved demand order before Appellate Authority which is yet to be heard.

b) The Company received Order from Appellate Authority which is in favour of the Company. The Company has preferred appeal earlier against the Order passed under section 73 from Office of the Additional CT & GST Officer and Cuttack - I City Circle, Cuttack, Odisha for tax period 2020-21 of '' 2.03 lakhs. Pre-deposit of tax against appeal received during the year and demand deleted. Hence, current year demand reduced to '' NIL (Previous Year '' 2.03 lakhs)

c) To regularise the Transitional ITC availed through GSTR-3B, The Company has file Revised Tran-1 Return as per the directions issued by Hon''ble Supreme Court vide Order Dated 22.07.2022 in the matter of Union Bank of India Vs. Filco Trade Centre Pvt.Ltd. SLP (C) No. 32709-32710 / 2018. The Company has received state wise orders in this case for rejection of revise Tran-1 credit. Details are as under:-

The Company is in process of filing appeal in the above mentioned orders at respective state Appellate Authorities against rejection of revised Tran-1 Credit.

d) The Company received Order Dt. October 31, 2023 from the Office of the Jt. Commissioner CGST and Central Excise Mumbai East Commissionerate under section 73(1) of CGST Act, 2017 of '' 631.75 lakhs ('' 574.32 lakhs Interest '' 57.43 lakhs) (Previous year - '' NIL) for wrong availment of Tran-1 Credit. The Company has distributed this Tran-1 Credit to its various units registered under different states. The Company has also received adverse order in those states also and demand order was issued by State GST authorities for availment of Tran-1 credit (as mentioned in para c above). Hence this is duplicate addition by Central as well as by State GST authorities for the same issue of availment of Tran-1 credit. The Company has preferred an appeal against the aggrieved demand order before Appellate Authority which is pending.

e) The Company received Order Dt. November 29, 2023 from the Office of the Joint Commissioner, GST & CX, Mumbai East under section 73(1) of CGST Act, 2017 of '' 75.37 lakhs (Interest '' 32.40 lakhs Penalty '' 42.97 lakhs) (Previous year - '' NIL) for the period from July 2018 to January 2019 during which the Company has availed excess ITC as per Order. The Company has preferred an appeal against the aggrieved demand order before Appellate Authority which is pending.

f) The Company received SCN from Office of the Dy.Commissioner of State Tax, Patna, Bihar of '' 2.93 lakhs (Previous year - '' NIL). The assessment is under progress.

g) The Company received Order from Office of the Assistant Commissioner LGSTO 062- Bengaluru, Karnataka of '' 0.75 lakhs (Previous year - '' NIL). The Company has preferred appeal against the aggrieved demand order before Appellate Authority which is pending.

h) The Company received Order from Office of the Deputy Commissioner of State Tax Mumbai Maharashtra

of '' 263.21 lakhs (Previous year - '' NIL) including interest for the year 2018-19. The Company has received

adverse order for the same issue of Tran-1 credit which is mentioned in Para c and Para d above. Hence this is duplicate addition by Central as well as by State GST authorities for the same issue of availment of Tran-1 credit. The Company has preferred an appeal against the aggrieved demand order before Appellate Authority which is pending.

i) The Company received Order from Office of the Dy Commissioner Dehradun Uttarakhand of '' 1.50 lakhs

(Previous year - '' NIL). The Company has preferred an appeal against the aggrieved demand order before

Appellate Authority which is pending.

j) The Company received Order from Office of the Commissioner, Goa of '' 1,584.31 lakhs (Previous year -'' NIl). The Company has preferred an appeal against the aggrieved demand order before Appellate Authority which is pending.

(C) (i) Individuals owning and having control of the reporting company

Mr. Suresh G Kare, Mrs. Aruna S Kare, Ms. Aditi Panandikar, Mrs. Madhura S Kare

(ii) Their relatives:

Dr. Milind Panandikar, Mr. Ramnath Kare, Mrs. Sudha Pai, Mrs. Pratima Vaidya, Dr. Mahika Panandikar, Mr. Rohan Ramani, Mr. Megh Panandikar

(D) (i) Key Management Personnel :

Mr. Suresh G Kare, Ms. Aditi Panandikar, Mr. Sundeep V Bambolkar, Mr. Pramod Ghorpade,

Mr. Ramanathan Hariharan

Independent Directors: Mr. Divakar M Gavaskar, Mr. Rajiv P Kakodkar, Dr. (Ms) Vasudha V Kamat, Mr. Abhijit Y Gore

Non Executive Director: Dr. Anand M Nadkarni

(ii) Their Relatives :

Mrs. Aruna S Kare, Mrs. Madhura S Kare

(E) Enterprises controlled by Key Management Personnel

SPA Holdings Pvt. Ltd., Shanteri Investments Pvt. Ltd., Indoco Capital Market Ltd., A.K.Services, Suresh Kare Indoco Foundation, Warren Generics s.r.o.

*Company contribution to Super Annuation Fund which is not considered while calculating the ceiling of Remuneration specified above under Section 198 of the Companies Act, 2013.

** Members have by way of Postal Ballot, on March 7, 2019, passed a Special Resolution approving the payment of remuneration without restriction in case of no profit or inadequate profit.

*** Mr. Suresh G Kare, has ceased to be an Executive Director of the Company w.e.f. June 30, 2023. Hence the Salary of Mr. Suresh G Kare included above is only for the period of April 01, 2023 to June 30, 2023.

*** Shareholders of the Company passed special resolution pursuant to Regulation 17(1A) and 17(1C) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 on June 25, 2023 for re-appointment of Mr. Suresh G Kare as the Chairman of the Company in the capacity of Non-Executive Non-Independent Director w.e.f. July 01, 2023. Consequent to this change in designation from Executive Chairman to Non-Executive Chairman, remuneration to Mr. Suresh G Kare for the period of July 01, 2023 to March 31, 2024 consists only of sitting fees and is based on the number of meetings attended by him during the year.

The above information regarding Micro Enterprises and small Enterprises has been determined on the basis of information available with the Company. No interest has been accrued on delayed payments, if any.

Note 57

Previous year''s figures have been regrouped and reclassified wherever necessary.

---

Mar 31, 2023

Amounts recognised in profit or loss

Provision for write-downs of inventories amounted to INR 2087.61 lakhs (March 31, 2022 - INR 2806.31 lakhs). These were recognised as an expense during the year and included in changes in value of inventories of work-inprogress, stock-in-trade and finished goods in statement of profit and loss.

Mode of valuation of inventories - refer note no. (k) of significant accounting policies.

C) Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of '' 2/- per share. Each holder of equity shares is entitled to one vote per share. All equity shares of the Company rank pari passu in all respects including the right to dividend. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2023, the amount of '' 2.25 per share on the face value of '' 2/- is proposed to the equity shareholders of the Company (Previous year - '' 2.25 (including a special dividend of '' 0.75) per share on face value of '' 2/- declared and paid to the equity shareholders of the Company).

In the event of winding-up, subject to the rights of holders of shares issued upon special terms and conditions, the holders of equity shares shall be entitled to receive remaining assets, if any, in proportion to the number of shares held at the time of commencement of winding-up.

The description of the nature and purpose of each reserve within equity as follows :

Capital Reserve :

The Company recognises profit and loss on purchase, sale, issue or cancellation of the Company''s own equity instruments to capital reserve.

Securities Premium :

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the Companies Act, 2013.

Employee Stock Options Outstanding Account :

The fair value of the equity-settled share based payment transactions with employees is recognised in standalone statement of profit and loss with corresponding credit to Employee Stock Options Outstanding Account.

General Reserve :

The General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to statement of profit and loss.

Retained Earnings :

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

(i) Information about individual provisions and significant estimates Sales Returns

When a customer has a right to return the product within a given period, the company recognises a provision for returns INR 1,728.18 lakhs as at March 31, 2023 (March 31, 2022 - INR 1,730.82 lakhs). This is measured on the previous history of sales return. Revenue is adjusted for the expected value of the returns and cost of sales & Inventory are adjusted for the value of the corresponding goods to be returned.

Critical judgements in calculating amounts

When a customer has a right to return the product within a given period, the company recognises a provision for sales return INR 1,728.18 lakhs as at March 31,2023 (March 31,2022 - INR 1,730.82 lakhs). This is measured on the previous history of sales return. Revenue is adjusted for the expected value of the returns and cost of sales & Inventory are adjusted for the value of the corresponding goods to be returned.

Performance obligations

a. Significant payment terms

In case of Domestic Sales, payment terms ranges from 7 days to 90 days based on geography and customers. In case of Export Sales these are either DP at sight, Document against acceptance - 30 days to 120 days, Letters of Credit - 30 days to 120 days.

b. Obligations for returns, refunds and similar obligations

In case of domestic sales, sales return may take place anytime before / after the expiry of goods.

Note 38 : Employee benefit obligations

As required by IND AS 19 ''Employee benefits'' the disclosures are as under :

(i) Defined benefit plans

a. Leave obligations

The leave obligations cover the company''s liability for sick and earned leave.

The amount of the provision of INR 297.27 lakhs (March 31, 2022 - INR 427.36 lakhs) is presented as current, since the company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months and therefore provision is made on the basis of actuarial valuation obtained.

b. Post-employment obligations i. Gratuity

The company provides gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the company makes contributions to recognized funds in India. The company maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

(ii) Defined contribution plans

a. Provident Fund

The company also has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognized during the period towards defined contribution plan is INR 2,156.39 lakhs (March 31, 2022 - INR 1,985.34 lakhs).

b. Superannuation

The company contributed INR 115.13 lakhs (March 31, 2022 - INR 95.34 lakhs) to the superannuation plan. Thesamehasbeen recognized in theStatement of profitand loss account underthe head employee benefit expenses.

(iii) Balance sheet amounts - Gratuity

The amounts recognized in the balance sheet and the movements in the net defined benefit obligation over the year are as follows :

Fair value hierarchy

Level 1 :Hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The mutual funds are valued using the closing NAV.

Level 2 : The fair value of financial instruments that are not traded in an active market (like forward contract) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities etc. included in level 3.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Note 41 : Capital Management (a) Risk management

The company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to our shareholders.

The capital structure of the company is based on management''s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

The company monitors capital on the basis of the following gearing ratio : Net debt (total borrowings net of cash and cash equivalents) divided by Total Equity.

Note 42 : Segment Information

(a) Description of segments and principal activities

The company has only one reporting segment of its business i.e. Pharmaceutical, wherein the company''s strategic steering committee, consisting of the chief executive officer, the chief financial officer and the manager for corporate planning, examines the group''s performance both from a product and geographic perspective.

The steering committee primarily uses a measure of adjusted earnings before other income, finance cost, tax, depreciation and amortisation (EBITDA, see below) to assess the performance of the operating segments. However, the steering committee also receives information about the segments'' revenue and assets on a monthly basis

(b) Adjusted EBITDA

Adjusted EBITDA excludes discontinued operations and the effects of significant items of income and expenditure which may have an impact on the quality of earnings such as restructuring costs, impairments when the impairment is the result of an isolated, non-recurring event. It also excludes the effects of share-based payments and gains or losses on financial instruments.

Interest income and finance cost are not allocated to segments, as this type of activity is driven by the central treasury function, which manages the cash position of the company.

Note 49 : FINANCIAL RISK MANAGEMENT Financial risk management objectives and policies

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Audit Committee of the Board of Director.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.

The Company manages market risk through a Finance department, which evaluates and exercises independent control over the entire process of market risk management. The Finance department recommend the risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures like foreign exchange forward contracts, borrowing strategies and ensuring compliance with market risk limits and policies.

Market Risk- Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regards to interest income and interest expenses and to manage the interest rate risk, finance department performs a comprehensive corporate interest rate risk management policy by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

According to the Company interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.

Market Risk- Foreign currency risk.

The company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to USD, EURO, GBP and AUD. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility of the INR cash flows of highly probable forecast transactions.

The company risk management policy is to hedge forecasted foreign currency sales for the subsequent 24 to 60 months. As per the risk management policy, foreign exchange forward contracts are taken to hedge forecasted sales.

The company also imports certain materials and Capital Goods which are denominated in USD, EURO, GBP, CHF,JPY,CNY which exposes the company to foreign currency risk to minimise the risk of imports, the company naturally hedges its imports.

The spot component of forward contracts is determined with reference to relevant spot market exchange rates. The differential between the contracted forward rate and the spot market exchange rate is defined as the forward points.

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customer and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.

The Company consider the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forward looking information such as:

• Actual or expected significant adverse changes in business,

• Actual or expected significant changes in the operating results of the counterparty,

• Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations,

• Significant increase in credit risk on other financial instruments of the same counterparty,

• Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of Profit and Loss.

The Company measures the expected credit loss of trade receivables and loan from individual customer based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitor rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

Legal Case -

a) MR''s / Petitioners has filed a defamation suit against the company under Section 38 / Section 40 of the Specific Relief Act 1963 and the matter is pending before civil court of Jalandhar jurisdiction for '' 5 Lakhs each. Total Contingent liability against the suit is '' 20 Lakhs (Previous Year - '' 20 Lakhs)

b) Chartered of Demand (COD) case filed by Union FMRAI (Federation of Medical and Sales Representatives of India) for revision of field employee''s salary which is pending since 2012 in Industrial Tribunal Mumbai in case bearing no. ITR No. 2 of 2012 FMRAI V/s Indoco Remedies Limited, Mumbai. Total Contingent liability against the suit is '' 30 Lakhs (Previous Year - '' 30 Lakhs)

* Income Tax demand comprises of

a) '' 5.98 lakhs (Previous year - '' 5.98 lakhs) appearing as TDS defaults on account of short Deduction / Short Payment & Interest thereon etc. of various assessment years

b) '' 1855.19 lakhs (Previous year - '' 1855.19 lakhs) demand issued by AO on account of Regular Assessment u/s 143(3) for AY 2018-19. The Company has preferred the appeal against the aggrieved demand order before CIT(A) which is yet to be heard.

c) '' 38.12 lakhs (Previous year - '' NIL) demand issued by AO on account of proceedings u/s 201(1) / 201(1A) of the Income tax Act for AY 2019-20. The Company has preferred the appeal against the aggrieved demand order before CIT(A) which is yet to be heard.

** Sales Tax demand comprises of

(I) Telangana Sales Tax:-

a) '' 189.81 lakhs (Previous year - '' 189.81 lakhs) demand pertaining to classification dispute under Andhra Pradesh VAT Act for the period April 2005 to March 2009. The Company has filed an appeal before High Court which is yet to be heard.

b) '' 619.19 lakhs (Previous year - '' 619.19 lakhs) demand (including penalty) pertaining to classification dispute under Andhra Pradesh VAT Act for the period April 2009 to December 2013. The Company has filed an appeal before Telangana VAT Appellate Tribunal Hyderabad which is yet to be heard.

c) '' 96.86 lakhs (Previous year - '' 96.86 lakhs) is penalty imposed on demand of April 09 to October 12 under Andhra Pradesh VAT Act for classification dispute. The Company has filed an appeal before Appellate Deputy Commissioner (CT), Hyderabad Rural Division which is yet to be heard.

d) '' 59.88 lakhs (Previous year - '' 59.88 lakhs) demand pertaining to classification dispute under Telangana VAT Act for the period Jan 14 to June 2017. The Company has filed an appeal before Appellate Deputy Commissioner (CT), Hyderabad Rural Division which is yet to be heard.

e) '' 5.99 lakhs (Previous year - '' 5.99 lakhs) is penalty imposed on demand pertaining to classification dispute under Telangana VAT Act for the period Jan 14 to June 2017. The Company has filed an appeal before Deputy Commissioner (CT), Saroornagar Division, Hyd which is yet to be heard.

The Company have applied for One Time Settlement (OTS) Scheme 2022 as per the Amnesty Scheme declared by Government of Telangana for the above mentioned disputed Commercial Taxes pending at various forums. As per the Scheme, 50% of balance outstanding taxes will be collected while remaining 50% of demand will be waive off. The Interest & penalty shall be waive off for the dealers availing the scheme. No refunds shall be given under the scheme. As per the Letter of Acceptance of Application of OTS in Form 4, We have paid settlement amount during FY 2022-23. The Final Settlement Order is awaited as on date.

(II) Vijayawada A.P.Sales Tax :-

f) '' 12.83 lakhs (Previous year - '' 12.83 lakhs) in respect of order from Asst. Commissioner (CT) Audit, Vijayawada for classification dispute for the period June 14 to March 2016. The Company has preferred an appeal before Appellate Deputy Commissioner (CT), Vijayawada.

g) '' 3.21 lakhs (Previous year - '' 3.21 lakhs) is penalty imposed on demand pertaining to order from Asst. Commissioner (CT) Audit, Vijayawada for classification dispute for the period June 14 to March 2016. The Company has preferred an appeal before Appellate Deputy Commissioner (CT), Vijayawada.

(III) Goa Sales Tax :-

h) '' 46.32 lakhs (Previous year - '' 46.32 lakhs) as the amount of demand (including penalty) raised by sales tax officer for Financial Year 2007-08, 2009-10 and 2013-14 on account of input credit of entry tax. The Company has filed appeal before Asst. Commissioner of Commercial Taxes, who has set aside the previous order and directed Assessing Officer for Re-assessment.

*** Excise tax demand comprises of

a) Company appeal is pending before CESTAT for wrong availment of notification on exempted goods '' 0.66 lakhs (Previous year - '' 0.66 lakhs).

b) Appeal pending before Divisional Dy. Commissioner, Boisar for classification dispute '' 5.04 lakhs (Previous year - '' 5.04 lakhs).

c) CENVAT credit on input service '' NIL lakhs (Previous year - '' NIL lakhs), appeal pending before CESTAT, Mumbai.

d) Company appeal is pending before Divisional Dy. Commissioner, Mumbai for wrong availment of CENVAT credit '' 0.79 lakhs (Previous year - '' 0.79 lakhs).

e) Central excise department is in appeal before Supreme Court for Differential duty on intermixture of vitamins / minerals amounting to '' 2.91 lakhs (Previous year - '' 2.91 lakhs).

f) CENVAT credit on input service '' 494.42 lakhs (Previous year - '' 494.42 lakhs), appeal pending before CESTAT, Mumbai.

g) Company appeal is pending before CESTAT for CENVAT credit availment on physician sample amounting to '' 0.20 lakhs (Previous year - '' 0.20 lakhs).

h) Central excise department is in appeal at Supreme Court for valuation of physician sample '' 11.20 lakhs (Previous year - '' 11.20 lakhs).

i) '' 139.78 lakhs (Previous year - '' 139.78 lakhs) pending before CESTAT, Mumbai for Exempted product-Allopurinol Value Based Duty Reversal.

a) The Company received Order under section 73 from Office of the Dy. Com. of State Tax for tax period 2017-18 of '' 4.67 lakhs (Previous year - '' 4.99 lakhs). The Company has preferred the appeal against the aggrieved demand order before Jt. Comm. of State Tax (Appeal) which is yet to be heard.

b) The Company received Order under section 73 from Office of the Additional CT & GST Officer and Cuttack - I City Circle, Cuttack, Odisha for tax period 2020-21 of '' 2.03 lakhs (Previous year - '' NIL). The Company has preferred appeal against the aggrieved demand order before Jt. Comm. of State Tax (Appeal) which is yet to be heard.

The above information regarding Micro Enterprises and small Enterprises has been determined on the basis of information available with the Company. No interest has been accrued on delayed payments, if any.

Note No: 55

Previous year''s figures have been regrouped and reclassified wherever necessary.

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Mar 31, 2018

Corporate Information

Indoco Remedies Limited (the Company) is a Public Limited Company domiciled in India and incorporated under the provision of the Companies Act, VII of 1913. Its Shares are listed on two stock exchanges in India i.e Bombay Stock Exchange and National Stock Exchange. Indoco Remedies Limited is engaged in the manufacturing and marketing of Formulations (Finished Dosage Forms) and Active Pharmaceutical Ingredients (APIs). The Company caters to both domestic and International markets, Company has Three wholly owned subsidiaries Xtend Industrial Designers and Engineers Pvt Ltd (formerly known as Indoco Industrial Designers & Engineers Pvt.Ltd.), Indoco Pharmachem Ltd and Indoco Remedies Singapore PTE Ltd.

The Financial statements are approved for issued by the Board of Directors of the Company on May 30, 2018.

NOTE 1: Use of Estimates and Judgments

The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognised in the period in which the results are known/materialised.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

A) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share. All equity shares of the Company rank pari passu in all respects including the right to dividend. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2018, the amount of Rs.1.00 per share on the face value of Rs.2 is proposed to the equity shareholders of the Company (Previous year - Rs.1.60 per share on face value of Rs.2 declared and paid to the equity shareholders of the Company).

In the event of winding-up, subject to the rights of holders of shares issued upon special terms and conditions, the holders of equity shares shall be entitled to receive remaining assets, if any, in proportion to the number of shares held at the time of commencement of winding-up.

Nature of reserves

(a) Capital reserve

The Company recognises profit and loss on purchase, sale, issue or cancellation of the Company’s own equity instruments to capital reserve.

(b) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the Companies Act, 2013.

(c) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to statement of profit and loss.

(i) Information about individual provisions and significant estimates

Sales Returns

When a customer has a right to return the product within a given period, the company recognises a provision for returns INR 2,000.49 lakhs as at March 31, 2018 (March 31, 2017 - INR 1,808.64 lakhs). This is measured on the previous history of sales return. Revenue is adjusted for the expected value of the returns and cost of sales & Inventory are adjusted for the value of the corresponding goods to be returned.

(ii) Movements in provisions for Sales Return

Movements in each class of provision during the financial year, are set out below:

Critical judgements in calculating amounts

When a customer has a right to return the product within a given period, the company recognises a provision for returns INR 2,000.49 lakhs as at March 31, 2018 (March 31, 2017 - iNr 1,808.64 lakhs). This is measured on the previous history of sales return. Revenue is adjusted for the expected value of the returns and cost of sales & Inventory are adjusted for the value of the corresponding goods to be returned.

Note 2 : Employee benefit obligations

As required by IND AS 19 ‘Employee benefits’ the disclosures are as under :

(i) Leave obligations

The leave obligations cover the company’s liability for sick and earned leave.

The amount of the provision of INR 162.99 lakhs (March 31, 2017 - INR 1 73.23 lakhs) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the group does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months.

(ii) Post-employment obligations

a) Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the company makes contributions to recognised funds in India. The company maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

(iii) Defined contribution plans

a. Provident Fund

The Company also has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary plus DA and VDA as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan is INR 1,130.81 lakhs (March 31, 2017 - INR 1,119.77 lakhs).

b. Superannuation

The Company contributed INR 66.24 lakhs (March 31, 2017 - INR 61.72 lakhs) to the superannuation plan. The same has been recognized in the Statement of profit and loss account under the head employee benefit expenses.

Balance sheet amounts - Gratuity

The amounts recognised in the balance sheet and the movements in the net defined benefit obligation over the year are as follows :

(iv) Post-Employment benefits (gratuity)

Significant estimates: actuarial assumptions and sensitivity The significant actuarial assumptions were as follows:

(v) Sensitivity analysis

The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

(vi) The major categories of plans assets are as follows:

(vii) Maturity profile of projected benefit obligation (from fund) :

Note 3 : Lease Operating Lease

The Company has not entered into non-cancelleable operating lease.

Finance Lease

Fair value hierarchy

Level 1 :Hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The mutual funds are valued using the closing NAV.

Level 2 : The fair value of financial instruments that are not traded in an active market (like forward contract) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities etc. included in level 3.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the group has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Note 4 : Capital Management

(a) Risk management

The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to our shareholders.

The capital structure of the Company is based on management’s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

The Company monitors capital on the basis of the following gearing ratio : Net debt (total borrowings net of cash and cash equivalents) divided by Total Equity.

The Company’s strategy is to maintain a gearing ratio within 50%. The gearing ratios were as follows:

Note 5 : Segment Information

(a) Description of segments and principal activities

The Company has only one reporting segment of its business i.e. Pharmaceutical, wherein the group’s strategic steering committee, consisting of the chief executive officer, the chief financial officer and the manager for corporate planning, examines the group’s performance both from a product and geographic perspective.

The steering committee primarily uses a measure of adjusted earnings before other income, finance cost, tax, depreciation and amortisation (EBITDA, see below) to assess the performance of the operating segments. However, the steering committee also receives information about the segments’ revenue and assets on a monthly basis

(b) Adjusted EBITDA

Adjusted EBITDA excludes discontinued operations and the effects of significant items of income and expenditure which may have an impact on the quality of earnings such as restructuring costs, impairments when the impairment is the result of an isolated, non-recurring event. It also excludes the effects of share-based payments and gains or losses on financial instruments.

Interest income and finance cost are not allocated to segments, as this type of activity is driven by the central treasury function, which manages the cash position of the Company.

(c) Segment revenue

The segment revenue is measured in the same way as in the statement of profit or loss.

Note 6 : Events occurring after the reporting period Other events

Refer to note 42 for the final dividend recommended by the directors which is subject to the approval of shareholders in the ensuing annual general meeting

Note: 7- FINANCIAL RISK MANAGEMENT Financial risk management objectives and policies

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s financial risk management policy is set by the Audit Committee of the Board of Directors.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments, deposits, foreign currency receivables, payables and loans and borrowings.

The Company manages market risk through a Finance department, which evaluates and exercises independent control over the entire process of market risk management. The Finance department recommend the risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures like foreign exchange forward contracts, borrowing strategies and ensuring compliance with market risk limits and policies.

Market Risk- Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company’s position with regards to interest income and interest expenses and to manage the interest rate risk, finance department performs a comprehensive corporate interest rate risk management policy by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

According to the Company interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

Market Risk- Foreign currency risk.

The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to USD, EURO, GBP and AUD. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company’s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility of the INR cash flows of highly probable forecast transactions.

The Company risk management policy is to hedge forecasted foreign currency sales for the subsequent 24 to 60 months. As per the risk management policy, foreign exchange forward contracts are taken to hedge forecasted sales. The Company also imports certain materials and Capital Goods which are denominated in USD, EURO, GBP, CHF, JPY, CNY which exposes the Company to foreign currency risk to minimise the risk of imports, the Company hedges imports upto 12 to 60 months in advance by entering into foreign exchange forward contracts.

The spot component of forward contracts is determined with reference to relevant spot market exchange rates. The differential between the contracted forward rate and the spot market exchange rate is defined as the forward points.

Derivative financial instruments such as foreign exchange forward contracts are used for hedging purposes and not as trading or speculative instruments.

Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forward looking information such as:

- Actual or expected significant adverse changes in business,

- Actual or expected significant changes in the operating results of the counterparty,

- Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability to meet its obligations,

- Significant increase in credit risk on other financial instruments of the same counterparty,

- Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of Profit and Loss.

The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

(i) Financing arrangements

The Company had access to the following undrawn borrowing facilities at the end of the reporting period:

The bank over draft facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time in INR. The amount is arrived at based on the Sanctioned Limits by the Banks and the same is subject to change based on the Maximum Permissible Bank Finance (MPBF) and Drawing Power.

Note 8:

Contingent Liabilities not provided for:

Legal Case -

The Company had availed a factoring facility from a Bank who refused to pay the amount of USD 25,004 to the Company on failure of a Customer to pay for the same. The case is pending in the City Civil Court.

A CFA has filed a case against the company for recovery of the amount adjusted against credit note of Rs.1.49 Lakhs the Company has disputed the Claim.

The Company has filed a case against a stockiest under section 138 under Negotiable Instruments Act 1881 for cheque bounce of Rs.2.23 lakhs.

* Income Tax demand comprises of

a) TDS of Rs.9.54 Lakhs (Previous year - Rs.15.72 Lakhs) for Short Deduction appearing in traces.

** Sales Tax demand comprises of

a) Rs.809.00 Lakhs (Previous year - Rs.421.58 Lakhs) in respect of order from sales tax dept, Andhra Pradesh for classification dispute. The Company has filed an appeal before High Court which is yet to be heard.

b) Rs.20.21 Lakhs (Previous year - Rs.20.21 Lakhs ) as the amount of demand raised by sales tax officer for Financial Year 2007-08 and 2009-10 on account of input credit of entry tax. Company has filed appeal before Commissioner.

c) Rs.21.35 Lakhs (Previous year - ‘ Nil) in respect of order from sales tax dept, Seemandhra for classification dispute. The Company has preferred an appeal before High Court which is yet to be heard.

***Excise Duty / Service tax demand comprises of

a) Company appeal is pending before CESTAT for wrong availment of notification on exempted goods Rs.0.66 Lakhs (Previous year - Rs.0.66 Lakhs).

b) Appeal pending before Dy Commissioner for classification dispute Rs.5.04 Lakhs (Previous year - Rs.5.04 Lakhs).

c) CENVAT credit on input service Rs.91.97 Lakhs (Previous year - Rs.91.97 Lakhs), appeal pending before CESTAT.

d) Company has Filed an appeal before CESTAT for valuation of physician sample ‘ NIL (Previous year - Rs.1.25 Lakhs).

e) Company appeal is pending before Divisional Dy. Commissioner for wrong availment of CENVAT credit Rs.0.79 Lakhs (Previous year - Rs.0.79 Lakhs ).

f) Central excise department is in appeal before Supreme Court for Differential duty on intermixture of vitamins / minerals amounting to Rs.2.91 Lakhs (Previous year - Rs.2.91 Lakhs).

g) CENVAT credit on input service Rs.247.21 Lakhs (Previous year - Rs.247.21 Lakhs), appeal pending before Commissioner of Service Tax.

h) Company appeal is pending before CESTAT for CENVAT credit availment on physician sample amounting to Rs.0.20 Lakhs (Previous year - Rs.0.20 Lakhs).

i) Central excise department is in appeal at Supreme Court for valuation of physician sample Rs.11.20 Lakhs (Previous year - Rs.11.20 Lakhs ).

j) Rs.139.78 Lakhs (Previous year - Rs.139.78 Lakhs) pending before Commissioner of Central Excise Raigad Commissionerate for Exempted product- Allopurinol Value Based Duty Reversal.

The above information regarding Micro Enterprises and small Enterprises has been determined on the basis of information available with the Company. No interest has been accrued on delayed payments, if any.

Note 9:

Previous year’s figures have been regrouped and reclassified wherever necessary.

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Mar 31, 2017

NOTE 1: Use of Estimates and Judgments

The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognized in the period in which the results are known / materialized.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

(i) Leased Assets

Land includes the following amounts where the Company is a lessee under a finance lease.

The lease term in respect of assets acquired under finance lease is 95 years. Renewal shall be based on further terms and payment of premium as may be decided / determined by lessor.

(ii) Capital Work in Progress

Capital work in progress mainly comprises :

a. Sterile plant at Goa

b. New plant at Patalganga

c. Regular Capex for new projects

(iii) Property, Plant and Equipment pledged as security

Refer to note 35 for information on Property, Plant and equipment pledged as security by the Company.

Amounts recognized in profit or loss

Provision for write-downs of inventories to net realizable value amounted to Rs. 918.43 lakhs (March 31, 2016 -Rs. 820.48 lakhs). These were recognized as an expense during the year and included in changes in value of inventories of work-in-progress, stock-in-trade and finished goods'' in statement of profit and loss.

C) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. All equity shares of the Company rank pari passu in all respects including the right to dividend. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2017, the amount of Rs. 1.60 per share on the face value of Rs. 2/- is proposed to be paid to the equity shares holders of the Company. (Previous year Rs. 1.40 declared and paid as Interim Dividend and Final dividend of Rs. 0.20 declared and paid to the equity shareholders of the Company.

In the event of winding-up, subject to the rights of holders of shares issued upon special terms and conditions, the holders of equity shares shall be entitled to receive remaining assets, if any, in proportion to the number of shares held at the time of commencement of winding-up.

(i) Information about provision for sale return and significant estimates:-

When a customer has a right to return the product within a given period, the Company recognises a provision for returns Rs. 1,808.64 lakhs as at March 31, 2017 (March 31, 2016 - Rs. 1,513.62 lakhs, April 1, 2015 - Rs. 1,393.25 lakhs). This is measured based on the previous history of sales return. Revenue is adjusted for the expected value of the returns and cost of sales & Inventory are adjusted for the value of the corresponding goods to be returned.

(ii) Movement in provision for Sales Return

Critical judgements in calculating amounts

When a customer has a right to return the product within a given period, the Company recognizes a provision for returns Rs. 1,808.64 lakhs as at March 31, 2017 (March 31, 2016 - Rs. 1,513.62 lakhs, April 1, 2015 - Rs. 1,393.25 lakhs). This is measured based on the previous history of sales return. Revenue is adjusted for the expected value of the returns and cost of sales & Inventory are adjusted for the value of the corresponding goods to be returned.

Note 2 : Employee Benefit Obligations

As required by IND AS 19 ''Employee benefits'' the disclosures are as under :

(i) Leave obligations

The leave obligations cover the Company''s liability for sick and earned leave.

The amount of the provision of Rs. 1 73.23 lakhs (March 31, 2016 - Rs. 115.73 lakhs, April 1, 2015 - Rs. 86.38 lakhs) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months.

The following amounts reflect leave that is not expected to be taken or paid within the next 12 months.

(ii) Post-employment obligations

a) Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to recognized funds in India. The Company maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

(iii) Defined contribution plans

a. Provident Fund

The Company also has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognized during the period towards defined contribution plan is Rs. 1,119.77 lakhs (March 31, 2016 - Rs. 968.1 1 lakhs).

b. Superannuation

The Company contributed Rs. 61.72 lakhs (March 31, 2016 - Rs. 49.83 lakhs) to the superannuation plan. The same has been recognized in the Statement of profit and loss account under the head employee benefit expenses.

(iv) Post-Employment benefits (gratuity)

Significant estimates: actuarial assumptions and sensitivity

(v) Sensitivity analysis

The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

Fair value hierarchy

Level 1 :Hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The mutual funds are valued using the closing NAV.

Level 2 : The fair value of financial instruments that are not traded in an active market (like forward contract) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities etc. included in level 3.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Note: 3 - Financial Risk Management

Financial risk management objectives and policies

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Audit Committee of the Board.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.

The Company manages market risk through a Finance department, which evaluates and exercises independent control over the entire process of market risk management. The Finance department recommend the risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures like foreign exchange forward contracts, borrowing strategies and ensuring compliance with market risk limits and policies.

Market Risk- Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regards to interest income and interest expenses and to manage the interest rate risk, finance department performs a comprehensive corporate interest rate risk management policy by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

According to the Company interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.

Market Risk- Foreign currency risk.

The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to USD, EURO, GBP and AUD. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the Company''s functional currency (Rs.). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimize the volatility of the Rs. cash flows of highly probable forecast transactions.

The Company risk management policy is to hedge forecasted foreign currency sales for the subsequent 24 to 60 months. As per the risk management policy, foreign exchange forward contracts are taken to hedge forecasted sales.

The Company also imports certain materials and Capital Goods which are denominated in USD, EURO, GBP, CHF which exposes the Company to foreign currency risk to minimize the risk of imports, the Company hedges imports up to 12 to 60 months in advance by entering into foreign exchange forward contracts.

The spot component of forward contracts is determined with reference to relevant spot market exchange rates. The differential between the contracted forward rate and the spot market exchange rate is defined as the forward points.

Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forward looking information such as:

- Actual or expected significant adverse changes in business,

- Actual or expected significant changes in the operating results of the counterparty,

- Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations,

- Significant increase in credit risk on other financial instruments of the same counterparty,

- Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of Profit and Loss.

The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

(i) Financing arrangements

The Company had access to the following undrawn borrowing facilities at the end of the reporting period:

The borrowing facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time in future.

Note 4 : Capital Management

(a) Risk management

The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimize returns to our shareholders.

The capital structure of the Company is based on management''s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

The Company monitors capital on the basis of the following gearing ratio : Net debt (total borrowings net of cash and cash equivalents) divided by Total Equity.

(a) Description of segments and principal activities

The Company has only one reporting segment of its business i.e. Pharmaceutical, wherein the Company''s strategic steering committee, consisting of the chief executive officer, the chief financial officer and the manager for corporate planning, examines the Company''s performance both from a product and geographic perspective.

The steering committee primarily uses a measure of adjusted earnings before finance cost, tax, depreciation and amortization (EBITDA, see below) to assess the performance of the operating segments. However, the steering committee also receives information about the segments'' revenue and assets on a monthly basis.

(b) Adjusted EBITDA

Adjusted EBITDA excludes discontinued operations and the effects of significant items of income and expenditure which may have an impact on the quality of earnings such as restructuring costs, impairments when the impairment is the result of an isolated, non-recurring event. It also excludes the effects of share-based payments and gains or losses on financial instruments.

Interest income and finance cost are not allocated to segments, as this type of activity is driven by the central treasury function, which manages the cash position of the Company.

(c) Segment revenue

The segment revenue is measured in the same way as in the statement of profit or loss.

Note 5 : Events occurring after the reporting period Other events

Refer to note 28 for the final dividend recommended by the directors which is subject to the approval of shareholders in the ensuing annual general meeting.

Legal Case -

The Company had availed a factoring facility from a Bank who refused to pay the amount of USD 25,004 to the Company on failure of a Customer to pay for the same. The case is pending in the City Civil Court.

The Company has filed case against a Stockiest under Section 138 under Negotiable Instruments Act 1881 for Cheque Bounce of Rs. 1.50 Lakhs.

A CFA has filed a case against the Company for recovery of the amount adjusted against credit note of Rs. 1.49 lakhs the Company has disputed the Claim.

* Income Tax demand comprises of

a) TDS of Rs. 15.72 Lakhs (Previous year - Rs. 21.12 Lakhs ) for Short Deduction appearing in traces.

** Sales Tax demand comprises of

a) Rs. 421.58 Lakhs (Previous year - Rs. 421.58 Lakhs) in respect of order from sales tax dept, Andhra Pradesh for classification dispute. The Company has filed an appeal before High Court which is yet to be heard.

b) Rs. 20.21 Lakhs (Previous year - Rs. 20.21 Lakhs ) as the amount of demand raised by sales tax officer for Financial Year 2007-08 and 2009-10 on account of input credit of entry tax. Company has filed appeal before Commissioner

***Excise tax demand comprises of

a) Company appeal is pending before CESTAT for wrong availment of notification on exempted goods Rs. 0.66 Lakhs (Previous year - Rs. 0.66 Lakhs).

b) Appeal pending before Dy Commissioner for classification dispute Rs. 5.04 Lakhs (Previous year - Rs. 5.04 Lakhs).

c) Appeal pending before CESTAT for classification dispute Rs. NIL (Previous year - Rs. 2.71 Lakhs).

d) CENVAT credit on input service Rs. 91.97 Lakhs (Previous year - Rs. 91.97 Lakhs), appeal pending before CESTAT.

e) Company has Filed an appeal before CESTAT for valuation of physician sample Rs.1.25 Lakhs (Previous year - Rs. 1.25 Lakhs).

f) Company appeal is pending before Divisional Dy. Commissioner for wrong availment of CENVAT credit Rs. 0.79 Lakhs (Previous year - Rs. 0.79 Lakhs ).

g) Central excise department is in appeal before Supreme Court for Differential duty on intermixture of vitamins / minerals amounting to Rs. 2.91 Lakhs (Previous year - Rs. 2.91 Lakhs).

h) CENVAT credit on input service Rs. 247.21 Lakhs (Previous year - Rs. 247.21 Lakhs), appeal pending before Commissioner of Service Tax.

i) Company appeal is pending before CESTAT for CENVAT credit availment on physician sample amounting to Rs. 0.20 Lakhs (Previous year - Rs. 0.20 Lakhs).

j) Central excise department is in appeal at Supreme Court for valuation of physician sample Rs. 11.20 Lakhs (Previous year - Rs. 11.20 Lakhs ).

k) Rs. 279.55 Lakhs (Previous year - Rs. 279.55 Lakhs) pending before Commissioner of Central Excise Raigad Commissionerate for Exempted product- Allopurinol Value Based Duty Reversal.

Note 6:

Related Party Disclosure as required by Ind AS 24.

Note 7:

Previous year''s figures have been regrouped and reclassified wherever necessary.

Note 8 : First-time adoption of Ind AS Transition to Ind AS

This is the Company''s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended March 31, 2017, the comparative information presented in these financial statements for the year ended March 31, 2016 and in the preparation of an opening Ind AS balance sheet at April 1, 2015 (the Company''s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous Indian GAAP). An explanation of how the transition from previous IGAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous IGAAP to Ind AS.

A.1 Ind AS optional exemptions

A.1.1 Cumulative translation differences

Ind AS 101 permits cumulative translation gains and losses to be reset to zero at the transition date. This provides relief from determining cumulative currency translation differences in accordance with Ind AS 21 from the date a subsidiary or equity method investee was formed or acquired. The Company elected to reset all cumulative translation gains and losses to zero by transferring it to opening retained earnings at its transition date.

A.1.2 Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous IGAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and investment property covered by Ind AS 40 Investment Properties.

Accordingly, the Company has elected to measure all of its property, plant and equipment, intangible assets and investment property at their previous IGAAP carrying value.

A.1.3 Designation of previously recognized financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS.

The Company has elected to apply this exemption for its investment in equity investments

A.1.4 Leases

Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material.

The Company has elected to apply this exemption for such contracts/arrangements.

A.2.2 Estimates

An entity''s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous IGAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at April 1, 2015 are consistent with the estimates as at the same date made in conformity with previous IGAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous IGAAP:

Investment in equity instruments carried at FVPL or FVOCI;

Investment in debt instruments carried at FVPL; and

Impairment of financial assets based on expected credit loss model.

B: Reconciliations between previous IGAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous IGAAP to Ind AS.

C: Notes to first-time adoption:

9: Fair valuation of investments

Under the previous IGAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and realisability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments (other than equity instruments designated as at FVOCI) have been recognized in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended March 31, 2016. This increased the retained earnings by Rs. 47.20 lakhs as at March 31, 2016 (April 1, 2015 - NIL ).

10: Deferred tax

Deferred tax have been recognized on the adjustments made on transition to Ind AS.

11: Borrowings

Ind AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognized in the profit or loss over the tenure of the borrowing as part of the interest expense by applying the effective interest rate method.

Under previous IGAAP, these transaction costs were charged to profit or loss as and when incurred. Accordingly, borrowings as at March 31, 2016 have been reduced by Rs. 56.41 lakhs (April 1, 2015 - Rs. 23.61 lakhs) with a corresponding adjustment to retained earnings. The total equity increased by an equivalent amount. The profit for the year ended March 31, 2016 increased by Rs. 36.29 lakhs as a result of the additional interest expense.

12: Proposed dividend

Under the previous IGAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend including dividend distribution tax was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend including dividend distribution tax of Rs. 221.83 lakhs as at March 31, 2016 (April 1, 2015 -Rs. 1,774.56 lakhs) included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount.

13 : Excise duty

Under the previous IGAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended March 31, 2016 by Rs. 1,003.37 lakhs. There is no impact on the total equity and profit.

14 : Cash Discount

Under previous IGAAP, cash discount amounting to Rs. 111.64 lakhs was recognised as part of other expenses which has been adjusted against the revenue under Ind AS during the year ended March 31, 2016. There was no impact on the total equity and profit.

15: Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the previous IGAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended March 31, 2016 reduced by Rs. 19.40 lakhs. There is no impact on the total equity as at March 31, 2016.

16 : Assets classified as held for sale

In the year 2015-16, the Company announced its intention to sale its Tarapur plant and initiated an active program to locate a buyer. Under previous IGAAP, the concept of disposal group held for sale does not exist. Accordingly, assets and liabilities of disposal group have not been presented as held for sale. The Company has disclosed property, plant and equipment held for sale under ''Current assets'' in accordance with AS 10 Accounting for Fixed Assets.

Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations requires disposal group to be identified as held for sale if the carrying amount will recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. Ind AS 105 lays down detailed guidelines and criteria in this regard. Based on the assessment performed by the management, it has been determined that the plant held at Tarapur should be presented as held for sale under Ind AS. Consequently, the assets of disposal group held for sale have been presented separately from the other assets respectively in the balance sheet. There is no impact on the total equity or profit as a result of this adjustment

Based on above, the following assets and liabilities were classified as held for sale as at March 31, 2016:

17: Retained earnings

Retained earnings as at April 1, 2015 has been adjusted consequent to the above Ind AS transition adjustments.

18: Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ''other comprehensive income'' includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under previous IGAAP.

19 : Provision for Sales Return & Cost of Goods Sold

The Company has provided for sales return @ 3.4% on the domestic sales based on average sales returns of the last 3 years. The Company has, therefore, recognized revenue on this transaction with a corresponding provision against revenue for estimated returns. Accordingly, short term provisions as at March 31, 2016 have been increased by Rs. 1,525.99 lakhs (April 1, 2015 - Rs. 1,393.26 lakhs) with a corresponding adjustment to retained earnings. The total equity reduced by an equivalent amount. The profit for the year ended March 31, 2016 reduced by Rs. 132.72 lakhs as a result of sales provision (net).

Cost on goods sold has been created on saleable returns. Accordingly, inventory have been increased by Rs. 149.99 lakhs (April 1, 2015 - Rs. 115.84 lakhs) with a corresponding adjustment to retained earnings. The total equty increased by an equivalent amount. The profit for the year ended March 31, 2016 increased by Rs. 34.15 lakhs.

20 : Mark to Market Gain / (Loss) (MTM)

Mark to Market Gain (Net of loss) have been accounted in books. Accordingly, Other financial assets have been reduced by Rs. 239.74 lakhs (April 1, 2015 - Rs. 436.20 lakhs) with a corresponding adjustment to retained earnings. The total equity increased by an equivalent amount. The profit for the year ended March 31, 2016 reduced by Rs. 196.45 lakhs.

21 : Property, Plant & Equipment

Depreciation has been created on lease hold land on the basis of its lease terms. Accordingly, Property, plant & equipment have been reduced by Rs. 143.34 lakhs (April 1, 2015 - Rs. 114.07 lakhs) with a corresponding adjustment to retained earnings. The total equity reduced by an equivalent amount. The profit for the year ended March 31, 2016 reduced by Rs. 29.27 lakhs.

---

Mar 31, 2016

1. CORPORATE INFORMATION

Indoco Remedies Limited (the Company) is a public Limited Company domiciled in India and incorporated under the provision of the Companies Act, VII of 1913. Its Shares are listed on two stock exchanges in India. Indoco Remedies Limited is engaged in the manufacturing and marketing of Formulations (Finished Dosage Forms) and Active Pharmaceutical Ingredients (APIs). The Company caters to both Domestic and International markets. The Company has three wholly owned subsidiaries Xtend Industrial Designers and engineers Pvt Ltd, Indoco Pharmchem Ltd and Indoco Remedies Singapore PTe Ltd.

Note 2:

Tax deducted at source from Other Income consists of:

Rs. 34.80 lakhs on account of Professional or Tech Services (Previous year Rs. 17.11 lakhs)

Rs. 4.15 lakhs on account of Interest received (Previous year Rs. 3.86 lakhs)

Rs. 2.18 lakhs on account of Contracts (Previous year Rs. 6.77 lakhs)

Note 3:

Segment Reporting: Primary Segment:

The Company has only one business segment i.e. Pharmaceutical.

Note 4:

The Company is exposed to risk associated with foreign currency fluctuations as well as interest rate. The company has entered into forward contract and derivative contracts to hedge the interest rate risk & currency risk. However the company does not use these contracts for any speculative purposes.

The outstanding position of the forward contracts as at march 31, 2016 is Rs. 9,193.33 Lakhs (Previous Year Rs. 6,654.88 Lakhs) with Banks. Category wise break up is given here under:

Note 5:

The company has opted to avail the option provided under paragraph 46A of AS 11: The effects of changes in Foreign Exchange Rates inserted vide notification dated December 29, 2011. Consequently, the foreign exchange differences on long term Foreign Currency monetary item is accumulated in a "Foreign Currency monetary item Translation Difference Account" and accordingly exchange loss on long term foreign currency loans have been amortised over the balance period of such loans.

Note 6:

Related Party Disclosure as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India.

I. Related Parties

(A) enterprises that control or are controlled by the reporting company: Holding Companies NIL

Subsidiary Companies

I) Xtend Industrial Designers & engineers Pvt Ltd.

II) Indoco Pharmchem Limited

III) Indoco Remedies Singapore PTe Ltd. Fellow Subsidiaries NIL

(B) Associates and Joint Ventures of reporting company:

Associates Indoco Analytical Solution LLP

Joint Ventures NIL

(C) (i) Individuals owning and having control of the reporting company

Mr. Suresh G. Kare, Mrs. Aruna S. Kare, Ms. Aditi Panandikar, Mrs. madhura Ramani.

(ii) Their relatives:

Dr. milind Panandikar, Dr. Anup Ramani, Mr. Ramnath Kare, Mrs. Suman Naik, mrs. Sudha Pai, Mrs. Laxmi Bambolkar, Mrs. Pratima Vaidya, Mrs. Amita Rajadhyaksha, Mrs. meera Karnik.

(D) (i) Key management Personnel :

Mr. Suresh g. Kare, Ms. Aditi Panandikar, Mr. Sundeep V. Bambolkar.

(ii) Their Relatives :

Mrs. Aruna S. Kare, Mrs. madhura A. Ramani, Mr. Ramnath Kare, Mrs. Suman Naik, Mrs. Sudha Pai, Mrs. Laxmi Bambolkar, Dr. milind Panandikar, Mrs. Neeta Bambolkar, Mr. Vasant Bambolcar,

Ms. manali Bambolkar, Mr. Paresh Bambolkar.

(e) enterprises controlled by key management personnel :

SPA Holdings Pvt. Ltd., Shanteri Investments Pvt. Ltd., Indoco Capital markets Ltd., A K Services, Suresh Kare Foundation, Warren generics s.r.o, Indoco Remedies Singapore Pte Ltd.

Note 7:

Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful life as specified in Schedule II, except in certain assets as disclosed in the Accounting policy on Depreciation, Amortisation and depletion. Accordingly the unamortised carrying value is being depreciated / amortised over the revised / remaining useful lives. The written down value of Fixed Assets whose lives have expired at 1st April,2014 have been adjusted net of tax , in the opening balance of Profit and Loss account amounting to Rs. 471.40 Lakhs in the previous year.

Note 8:

Previous year''s figures have been regrouped and reclassified wherever necessary.

---

Mar 31, 2015

1. CORPORATE INFORMATION

Indoco Remedies Limited (the Company) is a public Limited Company domiciled in India and incorporated under the provision of the Companies Act, VII of 1913. Its Shares are listed on two stock exchanges in India. Indoco Remedies Limited is engaged in the manufacturing and marketing of Formulations (Finished Dosage Forms) and Active Pharmaceutical Ingredients (APIs). The Company caters to both domestic and International markets Company has two wholly owned subsidiaries Xtend Industrial Designers and Engineers Pvt Ltd (formerly known as Indoco Industrial Designers & Engineers Pvt.Ltd.) and Indoco Pharmchem Ltd.

b) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. All equity shares of the Company rank pari passu in all respects including the right to dividend. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31 March 2015, the amount of per share dividend recognized as distributions to equity shareholders was Rs. 1.60 on the face value of Rs. 2/- (Previous year Rs. 1.40 on the face value of Rs. 2/-) of the Company.

In the event of winding-up, subject to the rights of holders of shares issued upon special terms and conditions, the holders of equity shares shall be entitled to receive remaining assets, if any, in proportion to the number of shares held at the time of commencement of winding-up.

(Rs.In lakhs) As at 31st As at 31st March, 2015 March, 2014

Note 3 :

Contingent Liabilities not provided for:

A) Matters under dispute

i) Sales Tax (Rs. 163.03 lakhs has been paid under protest Previous year Rs. 118.08 lakhs) ** 441.79 396.83

ii) Excise / Service Tax *** 363.94 363.92

iii) Income Tax 23.34 134.84

B) Bank Guarantees 81.60 98.47

C) Letters of Credit 162.12 538.19

D) Estimated amount of contracts remaining to be executed on Capital Account, net of advances of Rs. 341.00 lakhs (Previous year Rs. 201.64 lakhs 637.32 776.13

E) Corporate Guarantee given to Bank on behalf of the Subsidiary 200.00 200.00

Legal Case - The Company had availed a factoring facility from a Bank who refused to pay the amount of USD 25,004 to it on failure of a Customer to pay for the same. The case is pending in the City Civil Court.

* Income Tax demand comprises of

a) TDS of Rs. 15.88 Lakhs (Previous year - Rs. 127.38 Lakhs ) for Short Deduction appearing in traces.

b) Penalty demand of Rs. 7.46 Lakhs (Previous year - Rs. 7.46 Lakhs ) raised by assessing officer, as per order under section 271(1)(c) of the Income Tax Act 1961 due to disallowance pertaining to depreciation on land for Assessment Year 2002-03, 2003-04. Company is in appeal before ITAT against said order.

** Sales Tax demand comprises of

a) Rs. 421.58 Lakhs (Previous year - Rs. 375.23 Lakhs ) (Rs. 163.03 Lakhs has been paid under protest Previous year Rs.118.08 Lakhs ) in respect of order from sales tax dept, Andhra Pradesh for classification dispute. The Company has filed an appeal before High Court which is yet to be heard.

b) Rs. 20.21 Lakhs (Previous year - Rs. 20.21 Lakhs ) as the amount of demand raised by sales tax officer for Financial Year 2007-08 and 2009-10 on account of input credit of entry tax. Company has filed appeal before Commissioner.

c) Rs. Nil (Previous year - Rs. 1.39 Lakhs) as the amount of demand raised by sales tax officer for year 2009-10 on account of adjustment of refund. The Company has filed an appeal with Commissioner appeals. During the current year the ruling has been issued in favour of the Company.

***Excise tax demand comprises of

a) Company appeal is pending before CESTAT for wrong availment of notification on exempted goods Rs. 0.66 Lakhs (Previous year - Rs. 0.66 Lakhs).

b) Appeal pending before Dy Commissioner for classification dispute Rs. 5.04 Lakhs ( Previous year - Rs. 5.04 Lakhs).

c) Appeal pending before CESTAT for classification dispute Rs. 2.71 Lakhs (Previous year - Rs. 2.71 Lakhs).

d) CENVAT credit on input service Rs. 91.97 Lakhs (Previous year - Rs. 91.97 Lakhs ), appeal pending before CESTAT.

e) Company has Filed an appeal before CESTAT for valuation of physician sample Rs. 1.25 Lakhs (Previous year - Rs. 1.25 Lakhs).

f) Company appeal is pending before Divisional Dy. Commissioner for wrong availment of CENVAT credit Rs. 0.79 Lakhs (Previous year - Rs. 0.79 Lakhs ).

g) Central excise department is in appeal before Supreme Court for Differential duty on intermixture of vitamins/ minerals amounting to Rs. 2.91 Lakhs (Previous year - Rs. 2.91 Lakhs).

h) CENVAT credit on input service Rs. 247.21 Lakhs (Previous year - Rs. 247.21 Lakhs), appeal pending before Commissioner of Service Tax.

i) Company appeal is pending before CESTAT for CENVAT credit availment on physician sample amounting to Rs. 0.20 Lakhs (Previous year - Rs. 0.20 Lakhs).

j) Central excise department is in appeal at Supreme Court for valuation of physician sample Rs. 11.20 Lakhs (Previous year - Rs. 11.20 Lakhs).

Note 4 :

Tax deducted at source from Other Income consists of:

Rs. 17.11 lakhs on account of Professional or Tech Services ( Previous year Rs. 13.85 lakhs) Rs. 3.86 lakhs on account of Interest received (Previous year Rs. 5.30 lakhs) Rs. 6.77 lakhs on account of Contracts (Previous year Rs. 2.23 lakhs)

Note 5 :

A) The Company is exposed to risk associated with foreign currency fluctuations as well as interest rate. The Company has entered into forward contract and derivative contracts to hedge the interest rate risk & currency risk. However the Company does not use these contracts for any speculative purposes.

B) Some of the ECB loans availed in JPY & SGDs have been converted into USD by entering into derivative contracts. The company has also entered into Interest Rate Swap agreements for all the ECBs. Thus, any cross currency movement in USD / JPY & USD / SGD as well as any movement in LIBOR has no impact on the future financials of the Company.

Note 6 :

The Company has opted to avail the option provided under paragraph 46A of AS 11: The Effects of changes in Foreign Exchange Rates inserted vide notification dated 29th December, 2011. Consequently, the foreign exchange differences on long term Foreign Currency Monetary item is accumulated in a "Foreign Currency Monetary item Translation Difference Account" and accordingly exchange loss on long term foreign currency loans have been amortised over the balance period of such loans.

Note 7 :

Related Party Disclosure as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India.

I. Related Parties

A. Enterprises that control or are controlled by the reporting company:

Holding Companies Nil

Subsidiary Companies I) Xtend Industrial Designers & Engineers Pvt. Ltd.

II) Indoco Pharmchem Limited.

Fellow Subsidiaries NIL

B. Associates and Joint Ventures of reporting company:

Associates Indoco Analytical Solution LLP

Joint Ventures Nil

C. (i) Individuals owning and having control of the reporting company

Mr. Suresh G. Kare, Mrs. Aruna S. Kare, Ms. Aditi Panandikar, Mrs. Madhura A. Ramani (ii) Their relatives :

Dr. Milind Panandikar, Dr. Anup Ramani, Mr. Ramnath Kare, Mrs. Suman Naik, Mrs. Sudha Pai, Mrs. Laxmi Bambolkar, Mrs. Pratima Vaidya, Mrs. Amita Rajadhyaksha, Mrs. Meera Karnik

D. (i) Key Management personnel:

Mr. Suresh G. Kare, Ms. Aditi Panandikar, Mr. Sundeep V. Bambolkar (ii) Their relatives:

Mrs. Aruna S. Kare, Mrs. Madhura A. Ramani, Mr. Ramnath Kare, Mrs. Suman Naik, Mrs Sudha Pai, Mrs. Laxmi Bambolkar, Dr Milind Panandikar, Mrs. Neeta Bambolkar, Mr. Vasant Bambolcar, Ms. Manali Bambolkar, Mr. Paresh Bambolkar

E. Enterprises controlled by key management personnel:

SPA Holdings Pvt. Ltd., Shanteri Investments Pvt. Ltd., Indoco Capital Markets Ltd., A K Services, Suresh Kare Foundation, Warren Generics s.r.o

The above information regarding Micro Enterprises and small Enterprises has been determined on the basis of information available with the Company. No interest has been accrued on delayed payments, if any.

Note 8 :

Pursuant to the enactment of Companies Act 2013, the Company has applied the estimated useful life as specified in Schedule II, except in certain assets as disclosed in the Accounting policy on Depreciation, Amortisation and depletion. Accordingly the unamortised carrying value is being depreciated / amortised over the revised / remaining useful lives. The written down value of Fixed Assets whose lives have expired at at 1st April, 2014 have been adjusted net of tax , in the opening balance of Profit and Loss account amounting to Rs. 471.40 Lakhs.

Note 9 :

On 21st April,2015 there was a fire at our Indore Central Warehouse, Samples and Goods to the tune of Rs. 6.65 Crores has been damaged in the fire. The same were adequately insured. The Company has lodged a claim with Insurance Company.

Note 10 :

On 6th April,2015 the Company acquired the Clinical Research organisation (CRO) a division from Piramal Enterprise Limited.

Note 11 :

Previous year''s figures have been regrouped and reclassified wherever necessary.

---

Mar 31, 2013

1. CORPORATE INFORMATION

Indoco Remedies Limited (the Company) is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, VII of 1913. Its Shares are listed on two stock exchanges in India. Indoco Remedies Limited is engaged in the manufacturing and marketing of Pharmaceutical Formulations (Finished Dosage Forms) and Active Pharmaceutical Ingredients (APIs). The Company caters to both domestic and International markets. Company has two subsidiaries Indoco Industrial Designers & Engineers Pvt.Ltd. and Indoco Pharmchem Ltd.

Note 2 :

Tax deducted at source from Other Income consists of:

Rs. 5.65 lakhs on account of Professional or Tech Services ( Previous year Rs. 5.80 lakhs) Rs. 3.92 lakhs on account of Interest received (Previous year Rs. 15.27 lakhs) Rs. 0.95 lakhs on account of Contracts (Previous year Rs. 0.38 lakhs)

Note 3 :

Segment Reporting:

Primary Segment:

The Company has only one business segment i.e. Pharmaceutical.

Note 4 :

A) The Company is exposed to risk associated with foreign currency fluctuations as well as interest rate. The company has entered into forward contract and derivative contracts to hedge the interest rate risk & currency risk. However the company does not use these contracts for any speculative purposes.

Note 5 :

Changes in the Capital Structure

The Board of Directors in their meeting held on 29th March, 2012 proposed to subdivide one equity share having face value of Rs. 10/- each into five equity shares having face value of Rs. 2/- each fully paid up. The Board of Directors also proposed to enhance the authorised capital from present Rs. 1,800 lakhs to Rs. 2,500 lakhs and also to issue Bonus shares in proportion to one equity share of Rs. 2/- each fully paid for every two shares held by existing shareholders.

The members of the Company have given their approval to the above proposals by Postal Ballot on 08th May, 2012 and the allotment of the bonus shares was done on 21st May 2012.

Pursuant to the above approvals by the members, the Company has issued Bonus share by capitalising Securities Premium account. The Equity share capital as on date has been increased to Rs. 1,843.01 lakhs consisting of 9,21,50,355 Equity shares of Rs. 2/- each fully paid up.

Note 6 :

The company has opted to avail the option provided under paragraph 46A of AS 11: The Effects of changes in Foreign Exchange Rates inserted vide notification dated December,29 2011. Consequently, the foreign exchange differences on long term Foreign Currency Monetary item is accumulated in a "Foreign Currency Monetary item Translation Difference Account" and accordingly exchange loss on long term foreign currency loans have been amortised over the balance period of such loans.

Note 7 :

Related Party Disclosure as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India.

I. Related Parties

A. Enterprises that control or are controlled by the reporting company:

Holding Companies Nil

Subsidiary Companies I) Indoco Industrial Designers & Engineers Pvt. Ltd.

II) Indoco Pharmchem Limited.

Fellow Subsidiaries NIL

B. Associates and Joint Ventures of reporting company:

Associates Nil

Joint Ventures Nil

C. (i) Individuals owning and having control of the reporting company

Mr. Suresh G. Kare, Mrs. Aruna S. Kare, Mrs. Aditi Panandikar, Mrs. Madhura A. Ramani (ii) Their relatives :

Dr. Milind Panandikar, Dr. Anup Ramani, Mr. Ramnath Kare, Mrs. Suman Naik, Mrs. Sudha Pai, Mrs. Laxmi Bambolkar, Mrs. Pratima Vaidya, Mrs. Amita Rajadhyaksha, Mrs. Meera Karnik

D. (i) Key Management personnel:

Mr. Suresh G. Kare, Mrs. Aditi Panandikar, Mr. Sundeep V. Bambolkar

(ii) Their relatives:

Mrs. Aruna S. Kare, Mrs. Madhura A. Ramani, Mr. Ramnath Kare, Mrs. Suman Naik, Mrs Sudha Pai, Mrs. Laxmi Bambolkar, Dr Milind Panandikar, Mrs. Neeta Bambolkar, Mr. Vasant Bambolcar, Ms. Manali Bambolkar, Mr. Paresh Bambolkar

E. Enterprises controlled by key management personnel:

SPA Holdings Pvt Ltd., Shanteri Investments Pvt Ltd., Indoco Capital Markets Ltd., A K Services, Suresh Kare Indoco Foundation

Note 8 :

During the year the Company has subscribed to 15,015 shares of Indoco Industrial Designers and Engineers Private Limited face Value Rs. 10/- at a premium of Rs. 140/- per share. Pursuant to the Issue Indoco Industrial Designers and Engineers Private Limited became a subsidiary of Indoco Remedies Limited.

Note 9 :

During the year the Company has also subscribed to 50,000 shares of Indoco Pharmchem Limited face Value Rs. 10/- per share at par. Pursuant to the Issue Indoco Pharmchem Limited became a subsidiary of Indoco Remedies Limited.

Note 10 :

Previous year''s figures have been regrouped and reclassified wherever necessary.

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Mar 31, 2012

1. CORPORATE INFORMATION

Indoco Remedies Limited (the Company) is a Public Limited Company domiciled in India and incorporated under the provision of the Companies Act, VII of 1913. Its Shares are listed on two stock exchanges in India. Indoco Remedies Limited is engaged in the manufacturing and marketing of Pharmaceutical Formulations (Finished Dosage Forms) and Active Pharmaceutical Ingredients (APIs). The Company caters to both domestic and International markets.

a) Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs 10 per share (Refer Note No. 37 for disclosure regarding post balance sheet event). Each holder of equity shares is entitled to one vote per share. All equity shares of the Company rank pari passu in all respects including the right to dividend. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March 2012, the amount of per share dividend recognized as distributions to equity shareholders was Rs 1.10 on the face value of Rs 2/- per share (Previous year Rs 8/- on the face value of Rs 10/- per share.)

In the event of winding-up, subject to the rights of holders of shares issued upon special terms and conditions, the holders of equity shares shall be entitled to receive remaining assets, if any, in proportion to the number of shares held at the time of commencement of winding-up.

(Rs Lakhs) Current Year Previous Year As at 31.03.2012 As at 31.03.2011

Note 2 :

Contingent Liabilities not provided for:

A) Matters under dispute

i) Sales Tax (Rs 100.87 lakhs has been paid under protest Previous year Rs 72.65 lakhs) 203.59 189.81

ii) Excise / Service Tax 365.78 370.58

iii) Income Tax 258.22 564.09

iv) In respect of claims made against the Company not acknowledged as debts (Labour matters) - 6.12

B) Bank Guarantees 245.09 150.85

C) Letters of Credit 523.77 564.84

D) Estimated amount of contracts remaining to be executed on Capital Account, net of advances of Rs 26.21 lakhs (Previous year Rs 2,163.32 lakhs) 598.86 2,985.02

Note 3 :

Company's proposal to the "Department of Scientific and Industrial Research" (DSIR) "Ministry of Science & Technology", Government of India for financial support under TDDP project of DSIR has been approved by DSIR in the previous year. Company has received Rs 20 lakhs as an advance under the said project. The said advance is grouped under the head "Non-Current Liabilities" - Other Long Term Liabilities at "Note 7" forming part of the Balance Sheet.

Note 4 :

Tax deducted at source from Other Income consists of:

Rs 7.40 lakhs on account of Professional or Technical Services ( Previous year Rs 4.45 lakhs)

Rs 15.25 lakhs on account of Interest received (Previous year Rs 29.55 lakhs)

B) Some of the ECB loans availed in JPY & SGDs have been converted into USD by entering into derivative contracts. The company has also entered into Interest Rate Swap agreements for all the ECBs. Thus, any cross currency movement in USD / JPY & USD / SGD as well as any movement in LIBOR has no impact on the future financials of the company.

Note 5 :

Changes in the Capital Structure post Balance Sheet date

The Board of Directors in their meeting held on 29th March, 2012 proposed to subdivide one equity share having face value of Rs 10/- each into five equity shares having face value of Rs 2/- each fully paid up. The Board of Directors also proposed to enhance the authorised capital from present Rs 1,800 lakhs to Rs 2,500 lakhs and also to issue Bonus shares in proportion to one equity share of Rs 2/- each fully paid for every two shares held by existing shareholders.

The members of the Company have given their approval to the above proposals by Postal Ballot on 08th May, 2012 and the allotment of the bonus shares was done on 21st May, 2012.

Pursuant to the above approvals by the members, the Company has issued Bonus share by capitalising Securities Premium account. The Equity share capital as on the reporting date has been increased to Rs 1,843.01 lakhs consisting of 9, 21, 50,355 Equity shares of Rs 2/- each fully paid up.

Accordingly, the calculation of proposed dividend has been done on the entire new share capital of 9,21,50,355 equity shares of Rs 2/- each fully paid up.

Note 6 :

During the year unclaimed share application money amounting to Rs 7.60 lakhs (Previous Year NIL) has been transferred to Investor Education and Protection Fund.

Note 7 :

Donation includes amount of Rs 49,00,000 paid to South Goa District Congress (I) Committee and Rs10,00,000 to Goa Pradesh Committee Previous Year (Rs Nil ).

Note 8 :

The company has opted to avail the option provided under paragraph 46A of AS 11 regarding the effects of Effects of changes in Foreign Exchange Rates inserted vide notification dated December,29 2011. Consequently, the foreign exchange differences on long term Foreign Currency Monetary item is accumulated in a "Foreign Currency Monetary item Translation Difference Account" and accordingly exchange loss on long term foreign currency loans have been amortised over the balance period of such loans.

Note 9 :

Related Party Disclosure as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India.

I. Related Parties

A. Enterprises that control or are controlled by the reporting company:

Holding Companies Nil

Subsidiary Companies Nil

Fellow Subsidiaries Nil

B. Associates and Joint Ventures of reporting company:

Associates Nil

Joint Ventures Nil

C. (i) Individuals owning and having control of the reporting company:

Mr. Suresh G. Kare, Mrs. Aruna S. Kare, Ms. Aditi Panandikar, Mrs. Madhura A. Ramani (ii) Their relatives :

Dr. Milind P. Panandikar, Dr. Anup Ramani, Mr. Ramnath Kare, Mrs. Suman Naik, Mrs. Sudha Pai, Mrs. Laxmi Bambolkar, Mrs. Pratima Vaidya, Mrs. Amita Rajadhyaksha, Mrs. Meera Karnik

D. (i) Key Management personnel:

Mr. Suresh G. Kare, Ms. Aditi Panandikar, Mr. Sundeep V.Bambolkar (ii) Their relatives:

Mrs. Aruna S. Kare, Mrs. Madhura A. Ramani, Mr. Ramnath Kare, Mrs. Suman Naik, Mrs Sudha Pai, Mrs. Laxmi Bambolkar, Dr Milind P. Panandikar, Mrs. Neeta Bambolkar, Mr. Vasant Bambolcar, Ms. Manali Bambolkar, Mr. Paresh Bambolkar

E. Enterprises controlled by key management personnel:

SPA Holdings Pvt Ltd., Shanteri Investments Pvt Ltd., Indoco Industrial Designers and Engineers Pvt. Ltd., Indoco Capital Markets Ltd., A K Services, Suresh Kare Indoco Foundation

Note 10 :

Miscellaneous Expenditure to the extent not written off includes Rs. Nil (previous year Rs. 1.40 lakhs on account of preliminary expenses incurred by erstwhile M/s. Shree Herbal Technologies Ltd.)

Note 11 :

Previous year's figures have been regrouped and reclassified wherever necessary.

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Mar 31, 2011

Current Year Previous Year (Rs.in Lakhs) (fin Lakhs)

1) Contingent Liabilities Not Provided For :

(a) Matters under dispute

(i) Sales Tax 189.81 199.48

(Rs. 72.65 lakhs has been paid under protest Previous year Rs. 72.65 lakhs)

(ii) Excise / Service Tax 370.58 370.58

(iii) Income Tax

- Where the Company is in appeal 564.09 120.27 (Rs. 48.30 lakhs has been paid under protest Previous year Rs. 48.30 lakhs)

- Where the department is in appeal 263.98 269.97

(iv) In respect of claims made against the Company not acknowledged as debts (Labour matters) 6.12 3.57

(b) Bank Guarantees 150.85 205.82

(c) Letters of Credit 564.84 792.24

(d) Estimated amount of contracts remaining to be executed on Capital Account, net of advances of Rs. 2,163.32 lakhs (Previous year Rs. 338.41 lakhs) 2,985.02 1,056.30

(e) Discounting of debtors to the extent not actually realized on Balance Sheet date Nil 70.33

2) Research & Development expenses include salary & wages, chemicals/materials consumed, electricity, travel, repairs, insurance premium and such similar expenses.

3) Companys proposal to the "Department of Scientific and Industrial Research" ( DSIR ) "Ministry of Science & Technology", Government of India for financial support under TDDP project of DSIR has been approved by the DSIR during the year and Company has received Rs. 20 Lakhs as an advance under the said project. The said advance is grouped under the head "Other Liabilities" at "Schedule I" forming part of the Balance Sheet.

4) Tax deducted at source from Other Income consists of: Rs. 4.45 Lakhs on account of Professional or Tech Services(Previous year Rs. 8.87 Lakhs) ^ 29.55 Lakhs on account of Interest received (Previous year Rs. 20.75 Lakhs)

5) A) The Company is exposed to risk associated with foreign currency fluctuations as well as interest rate. The Company has entered into forward contracts and derivative contracts to hedge the interest rate risk and currency risk. These transactions are in consistence with the Companys Risk Management Policy. However the company does not use these contracts for any speculative purposes.

B) Out of total ECB loans, part of ECB is availed in JPY & SGDs which are converted into USD by entering into derivative contracts. The Company has also entered into Interest Rate Swap agreements for all the ECBs. Thus, any cross currency movement in USD/JPY & USD/SGD as well as any movement in LIBOR has no impact on the future financials of the company.

6) Miscellaneous Expenditure to the extent not written off includes Rs. Nil (Previous year Rs. 3.64 Lakhs) on account of product registration charges and Rs. 1.40 Lakhs (Previous year Rs. 1.57 Lakhs) on account of preliminary expenses incurred by erstwhile M/s. Shree Herbal Technologies Ltd.

7) Related Party Disclosures as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India.

I Related Parties

A. Enterprises that control or are controlled by the reporting company Holding Companies Nil Subsidiary Companies Nil Fellow Subsidiaries Nil

B. Associates and Joint Ventures of reporting company Associates Nil Joint Ventures Nil

C. (i) Individuals owning and having control of the reporting company

Mr. Suresh G. Kare, Mrs. Aruna S. Kare, Mrs. Aditi M. Panandikar, Mrs. Madhura A. Ramani (ii) their relatives

Dr. Milind P. Panandikar, Dr. Anup Ramani, Mr. Ramnath Kare, Mr. Ashok Kare, Mrs. Suman Naik, Mrs. Sudha Pai, Mrs. Laxmi Bambolkar, Mrs. Pratima Vaidya, Mrs. Amita Rajadhyaksha, Mrs. Meera Karnik

D. (i) Key Management personnel

Mr. Suresh G. Kare, Mrs. Aditi Kare Panandikar, Mr. Sundeep Bambolkar, Mr. F. X. Coutinho (Part of the year)

(ii) their relatives :

Mrs. Aruna S. Kare, Mrs. Madhura A. Ramani, Mr. Ramnath Kare, Mr. Ashok Kare, Mrs. Suman Naik, Mrs Sudha Pai, Mrs. Laxmi Bambolkar, Dr. Milind P. Panandikar, Ms. Ivy Coutinho, Ms. Sushma Dsouza, Ms. Karen Lemos, Mr. John Coutinho, Mrs. Celine Elias, Mrs. Alice Pillai, Mrs. Neeta Bambolkar, Mr. Vasant Bambolcar, Ms. Manali Bambolkar, Mr. Paresh Bambolkar,

E. Enterprises controlled by key management personnel

SPA Holdings Pvt Ltd, Shanteri Investments Pvt Ltd, Indoco Industrial Designs and Engineers Pvt. Ltd., Indoco Capital Markets Ltd, A K Services

8) The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures if any, relating to amounts unpaid as at the year end together with the interest paid / payable as required under the said Act have not been given.

9) Previous years figures have been regrouped and reclassified wherever necessary.

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Mar 31, 2010

Current Year Previous Year Rs Lakhs Rs Lakhs

1) Contingent Liabilities Not Provided For :

(a) Matters under dispute

(i) Sales Tax 199.48 10.37 (Rs 72.65 lakhs has been paid under protest)

(ii) Excise / Service Tax....... 370.58 146.83

(iii) Income Tax.................

- Where the Company is in appeal 120.27 231.95 (Rs 48.30 lakhs has been paid under protest)

- Where the department is in appeal 269.97 436.62

(iv) In respect of claims made against the Company not acknowledged as debts (Labour matters) 3.57 5.49

(b) Bank Guarantees ........... 205.82 98.52

(c) Letters of Credit .......... 792.24 734.35

(d) Estimated amount of contracts remaining to be executed on Capital Account [Net of advances of Rs 338.41 lakhs (Previous year Rs 589.97 lakhs)] ..... 1,056.30 1,047.83

(e)Discounting of debtors to the extent not actually realized as on Balance Sheet date........ 70.33 195.08

2) Research & Development expenses include salary & wages, chemicals/materials consumed, electricity, travel, repairs, insurance premium and similar such expenses.

3) Tax deducted at source from Other Income consists of:

Rs 8.87 lakhs on account of Professional or Tech Services (Previous year Rs. 7.32 lakhs) Rs Nil on account of Job work Charges (Previous Year Rs. 0.48 lakhs) Rs 20.75 lakhs on account of Interest received (Previous Year Rs.7.78 lakhs)

4) The Companys exclusive business is manufacturing and selling of pharmaceutical products comprising of bulk drugs and formulations and therefore it is the only reportable segment as per Accounting Standard 17 on segment reporting issued by the Institute of Chartered Accountants of India. Although the Company caters to the needs of export markets, the export turnover is not significant in the context of total turnover. As such there is no reportable geographical segment.

5) The Company is exposed to various financial risks which relate to changes in exchange rates and interest rates. The Company hedges risks of the aforesaid nature using forward contracts. The outstanding position and exposure is as under:

a) As at 31 st March, 2010 the outstanding position in respect of the forward contracts is Rs.2851.88 lakhs with Banks

6) Miscellaneous Expenditure to the extent not written off includes Rs. 3.64 lakhs (Previous year Rs. 12.20 lakhs) on account of product registration charges & Rs. 1.57 lakhs (Previous year Rs. 1.75 lakhs) on account of preliminary expenses incurred by erstwhile Shree Herbal Technologies Ltd.

7) Related Party Disclosure as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India.

I Related Parties

A. Enterprises that control or are controlled by the reporting company

Holding Companies Nil

Subsidiary Companies Nil

Fellow Subsidiaries Nil

B. Associates and Joint Ventures of reporting company

Associates Nil

Joint Ventures Nil

C. (i) Individuals owning and having control of the reporting company

Mr. Suresh G. Kare, Ms. Aruna S. Kare, Ms. Aditi Kare Panandikar, Ms. Madhura A. Ramani (ii) their relatives

Dr. Milind Panandikar, Dr. Anup Ramani, Mr. Ramnath Kare, Mr. Ashok Kare, Ms. Suman Naik, Ms. Sudha Pai, Ms. Laxmi Bambolkar, Ms. Pratima Vaidya, Ms. Amita Rajadhyaksha, Ms. Meera Karnik

D. (i) Key Management personnel

Mr. Suresh C. Kare, Ms. Aditi Kare Panandikar, Mr. FX Coutinho, Mr. Sundeep V. Bambolkar (ii) their relatives :

Ms. Aruna S. Kare, Ms. Madhura A. Ramani, Mr. Ramnath Kare, Mr. Ashok Kare, Ms. Suman Naik, Ms. Sudha Pai, Ms. Laxmi Bambolkar, Dr. Milind Panandikar, Ms. Ivy Coutinho, Ms. Sushma Dsouza, Ms. Karen Lemos, Mr. John Coutinho, Ms. Celine Elias, Ms. Alice Pillai, Ms. Neeta Bambolkar, Mr. Vasant Bambolcar, Ms. Manali Bambolkar,

Mr. Paresh Bambolkar

E. Enterprises controlled by key management personnel

SPA Holdings Pvt Ltd, Shanteri Investments Pvt Ltd, Indoco Global Markets Pvt Ltd, Indoco Capital Markets Ltd, and AK Services.

8) The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures if any, relating to amounts unpaid as at the year end together with the interest paid / payable as required under the said Act have not been given.

9) Previous years figures have been regrouped and reclassified wherever necessary.