Directors Report of IOL Chemicals and Pharmaceuticals Ltd.

Mar 31, 2025

The Board of Directors presents the 38^th Annual Report of the Company on the business operations and performance of the Company along
with the audited financial statements for the year ended 31^st March 2025.

1. Financial performance:

The summary of the financial performance of the Company for the Financial Year ended 31^st March 2025, along with the comparative
figures for the previous year is provided herein below:

	Standalone		Consolidated
Particulars	Year ended 31-Mar-2025	Year ended 31-Mar-2024	Year ended 31-Mar-2025	Year ended 31-Mar-2024
Total income	2101.61	2162.86	2101.62	2162.86
Profit before interest & depreciation	224.57	261.59	224.71	260.66
Interest	14.76	16.10	14.76	16.10
Profit before depreciation	209.81	245.49	209.95	244.56
Depreciation	71.92	62.85	71.99	62.91
Profit before exceptional items	137.89	182.64	137.96	181.65
Exceptional items	0	0	0	0
Profit before tax	137.89	182.64	137.96	181.65
Provision for tax (including deferred tax)	36.89	47.22	36.89	47.22
Profit after tax	101.00	135.42	101.07	134.43

During the year under review, your Company reported a
standalone operating revenue of H 2,079.21 crore, as against
H 2,132.79 crore in the previous year. The EBITDA for FY 2024-25
stood at H 224.57 crore, marginally lower than H 261.59 crore
in the previous year, primarily due to a decline in the selling
prices of finished goods.

Pursuant to Regulation 34(2)(e) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 ("Listing
Regulations"), the Management Discussion and Analysis
Report forms an integral part of this Integrated Annual
Report. It provides, inter alia, detailed information on the
Company''s performance, its state of affairs and industrial
operations in India and abroad, significant developments, the
external environment, and the economic outlook during the
year under review.

During the year under review, there was no change in the
nature of the Company''s business.

2. Dividend

For the financial year 2024-25, the Board of Directors declared
an interim dividend of H 4 per equity share of face value H 10
each, resulting in a total cash outflow of H 23.48 crore during
the year. The Board has considered this interim dividend
as the final dividend for the year. The dividend has been
recommended in accordance with the parameters laid down
in the Company''s Dividend Distribution Policy.

In accordance with Regulation 43A of the SEBI Listing Regulations,
the Board of Directors has formulated and adopted a Dividend
Distribution Policy, which is available on the Company''s website
at https://www.iolcp.com/about-us/policies.

3. Transfer to reserves

The Board has decided to retain the entire amount of the profits
for the financial year 2024-25 in the profit and loss account. The
Board do not propose to transfer any amount to the reserves.

4. Fixed Deposits

The Company has not accepted any deposits within the
meaning of Section 73 of the Companies Act, 2013 and as
such no amount of principal or interest was outstanding as on
31^st March 2025.

5. Share Capital

During the period under review, the Board of Directors
approved the sub-division (split) of the Company''s equity
shares, whereby 1 (one) equity share of face value ^10.00
(Rupees Ten only) each, fully paid-up, was sub-divided into
5 (five) equity shares of face value ?2.00 (Rupees Two only)
each, fully paid-up.

Subsequently, the members of the Company, through a
resolution passed by postal ballot on 31^st January 2025,
approved the said sub-division/split and the consequential
alteration to the Capital Clause of the Company''s Memorandum
of Association.

Following the requisite approvals from the Stock Exchanges
(BSE and NSE) and the depositories (NSDL and CDSL), a new
ISIN - INE485C01029 was allotted. The change in the face value
of the shares was reflected in the share price on the Stock
Exchanges with effect from 11^th March 2025, being the record
date for the sub-division/split.

The sub-division has made the Company''s shares more
affordable and has broadened investor participation.

The capital structure of the Company as on 31^st March
2025 is as follows:

• Authorised Share Capital: H 80,00,00,000/- comprising
40,00,00,000 equity shares of face value H 2/-
each, fully paid-up.

• Issued, Subscribed and Paid-up Share Capital:
H 58,70,55,020/- comprising 29,35,27,510 equity shares of
face value H 2/- each, fully paid-up.

6. Investor Education and Protection Fund (IEPF)

Pursuant to the provisions of Section 124 of the Companies
Act,2013 ("the Act") read with Investor Education and
Protection Fund Authority (Accounting, Audit, Transfer and
Refund) Rules, 2016 ("IEPF Rules"), and relevant circulars and
amendments thereto, the amount of dividend remaining
unpaid or unclaimed for a period of seven years from
the due date is required to be transferred to the Investor
Education and Protection Fund ("IEPF"), constituted by the
Central Government.

During the year under review, no amount of unpaid/unclaimed
dividend was due for transfer to the Investors Education
protection Fund.

Members who have not encashed any dividend declared by the
Company, are advised to write to the Company immediately at
[e-mail]

7. Subsidiary Companies

Details of subsidiaries / associates of your Company are
provided in notes to financial statements.

We have 3 subsidiaries as on 31^st March 2025. Out of these
3 subsidiaries IOL Foundations is a Section 8 Company that
undertakes the CSR activities of the Company.

The consolidated financial statements of the Company and
its subsidiaries have been prepared in accordance with the
provisions of Section 129(3) of the Act, which forms part of the
Annual Report. A statement containing the salient features of
financial statements of the Company''s subsidiaries, associates
& joint ventures in Form No. AOC-1 is annexed as Annexure - 1
to this report.

Further, pursuant to the provisions of Section 136 of the Act, the
financial statements of the Company, consolidated financial
statements along with relevant documents and separate
audited financial statements in respect of subsidiaries, are
available on the website of the Company at www.iolcp.com

The company has neither a holding company nor an
associate company

8. Re-affirmation of External Credit Rating

During the year under review, the Credit Analysis & Research
Ltd (CARE) has reaffirmed the credit rating of the Company
for Long term Bank Facilities as ''CARE A '' (Single A plus;
Outlook: Stable) and the credit rating for Short Term Bank
Facilities as CARE A1 ''(A One plus).

9. Expansion

During the year 2024-25, the Company commenced a new
Unit 11 for "Paracetamol" production with installed capacity
of 10800 MTPA. The Company has enhanced the installed
capacity of Unit 5 for manufacturing "Clopidogrel Bisulphate"
from 180 MTPA to 240 MTPA.

During the year 2024-25, The Company received the approval
from National Medical Products Administration (NMPA), China
for "Fenofibrate". The Company has got GMP Certificate issued
by Brazilian Health Regulatory Agency (ANVISA) for all the 10
APIs manufacturing Units situated at Barnala. Indian Chemical
Council (ICC) awarded Responsible Care® Logo to the Company

The European Directorate for the Quality of Medicines
& Health Care (EDQM) also granted Certificates of
Suitability for "Gabapentin", "Pantoprazole Sodium
Sesquihydrate’; "Allopurinol" "Valsartan" "Mesalazine" and
"Quetiapine Fumarate".

Further, in April 2025, The company has also secured additional
approval from Center for Drug Evaluation (CDE) of National
Medical Products Administration (NMPA), China for "Ibuprofen".

10. Directors and Key Managerial Personnel

As on 31^st March 2025, the Company''s Board comprises of
eight directors, out of which four are Independent Director
(including one woman Independent Director) and four are
executive directors.

During the year under review, Ms. Rajni Jha (DIN: 10818947)
was appointed as an Additional and Independent Director on
the Board of the Company for a period of three years with effect
from 28^th October 2024. Her appointment as an Independent
Director was subsequently approved by the Members through
postal ballot on 12^th December 2024.

Further, the Board of Directors, in its meeting held on 16^th May
2025 re-appointed Mr. Vikas Gupta as Joint Managing Director
of the Company for a period of five years with effect from 29^th
May 2025, based on the recommendation of the Nomination
and Remuneration Committee (NRC). The re-appointment of
Mr Vikas Gupta is subject to approval of the Members at the
ensuing Annual General Meeting (AGM).

In accordance with the provisions of the Companies Act, 2013
and the Articles of Association of the Company, Mr. Abhiraj
Gupta, Executive Director, is liable to retire by rotation at
the forthcoming AGM and, being eligible, offers himself for
re-appointment.

Dr. Sandhya Mehta, Independent Director, ceased to hold office
with effect from 21^st August 2024 upon completion of her
tenure, in line with the provisions of the Companies Act, 2013
and SEBI Regulations. The Board places on record its sincere
appreciation and gratitude to Dr. Sandhya Mehta for her

invaluable contributions during her decade-long association
with the Company.

Mr. Vikas Vij resigned as Chief Executive Officer of the Company
due to personal reasons with effect from 30^th September 2024.

The brief details of all the directors seeking appointment/
re-appointment at the ensuing Annual General Meeting are
provided in the explanatory statement to the notice calling the
38^th Annual General Meeting.

During the year under review Mr Varinder Gupta, Managing
Director; Mr Kushal Kumar Rana, Director-Works(Whole-time
Director); Mr Vikas Gupta, Joint Managing Director (Whole-time
Director); Mr Abhiraj Gupta, Executive Director (Whole-time
Director); Mr Pardeep Kumar Khanna, Chief Financial Officer
(CFO); and Mr Abhay Raj Singh, Sr. Vice President & Company
Secretary continues to be the Key Managerial Personnel (KMP)
of the Company in accordance with the provisions of Section(s)
2(51) and Section 203 of the Companies Act, 2013 read with the
Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014.

11. Board Evaluation

Pursuant to the provisions of Companies Act, 2013 and SEBI
Listing Regulations, Company has formulated and adopted
Policy of Evaluation of Board (the "Board Evaluation Policy")
to formulate the procedures and to prescribe & lay down the

criteria to evaluate Board of Directors. The annual evaluation
is carried out by the Board of its own performance and that
of its committees and individual Directors by way of individual
and collective feedback from all the Directors. The Directors
expressed their satisfaction with the evaluation process. In
a separate meeting of independent directors, performance
of non-independent directors, the Board as a whole and
Chairman of the Company was evaluated, considering the
views of executive as well as non-executive directors. The
evaluation criteria are mainly based on the Guidance Note on
Board Evaluation issued by the SEBI.

12. Number of Meetings of the Board

During the year the Board met 6 times. The gap between any
2 two consecutive meetings was within the period prescribed
under the Companies Act, 2013 and Listing Regulations. The
details of meetings of the Board of Directors and its Committees
are provided in the Corporate Governance Report forming part
of this report.

13. Meeting of Independent Directors

Pursuant to the requirements of Schedule IV of the Companies
Act, 2013 and in terms of Regulation 25 of the Listing
Regulations, a separate meeting of the Independent Directors
of the Company were convened on 26^th March, 2025 to
review the matters as laid down in the aforesaid Schedule
and Regulations.

14. Directors'' Responsibility Statement

To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the
following statements in terms of Section 134(3)(c) of the Companies Act, 2013:

			that such accounting policies as mentioned in Note
that in the preparation of the	annual financial		1 of the Notes to the Financial Statements have been
statements for the year ended	31 March	2025,	selected and applied consistently and judgement
the applicable accounting standards have		been	and estimates have been made that are reasonable
followed along with proper explanation relating to material departures, if any;			and prudent so as to give a true and fair view of
			the state of affairs of the Company as at the
		a.	k end of the year and of the profit of the
			Company for that year;
that systems to ensure			that proper and sufficient care has been
compliance with the provisions			taken for the maintenance of adequate
of all applicable laws were in	f.		c accounting records in accordance with
place and were adequate and			the provisions of the Companies Act,
operating effectively		*	2013 for safeguarding the assets of the Company and for preventing and » detecting fraud and other irregularities;
that proper internal financial controls were in place and that the financial controls were adequate and were		e.	that the annual financial
			statements have been prepared on a going concern basis;
operating effectively.

15. Declaration by Independent Directors

The Independent Directors of the Company have given
declarations under Section 149(7) of the Act, that they meet the
criteria of independence as laid down under Section 149(6) of
the Act and Regulation 16(1)(b) of the SEBI Listing Regulations.

In terms of Regulation 25(8) of the Listing Regulations, the
Independent Directors have confirmed that they are not
aware of any circumstance or situation, which exists or may
be reasonably anticipated, that could impair or impact their
ability to discharge their duties with an objective independent
judgement and without any external influence.

The Independent Directors of the Company have undertaken
requisite steps towards the inclusion of their names in the data
bank of Independent Directors maintained with the Indian
Institute of Corporate Affairs, in terms of Section 150 read with
Rule 6 of the Companies (Appointment and Qualification of
Directors) Rules, 2014.

In the opinion of the Board, the Independent Directors possess
the requisite expertise and experience and are persons of high
integrity and repute. They fulfil the conditions specified in the
Act as well as the Rules made thereunder and are independent
of the management and Company.

16. Nomination and Remuneration Policy

The Board, has on the recommendation of the Nomination
& Remuneration Committee, framed a Nomination and
Remuneration Policy ("Remuneration Policy"), which provides
process for selection and appointment of Directors, key
managerial personnel and Senior Management employees
including criteria for determining qualifications, positive
attributes, fixation of remuneration, independence of a
Director and other matters, as required under sub-section (3)
of Section 178 of the Act.

The Remuneration Policy is available on the Company''s
website at https://www.iolcp.com/uploads/Nomination-and-
Remuneration-Policy.pdf

17. Procedure for Nomination and Appointment of
Directors

The Nomination and Remuneration Committee ("NRC")
plays a pivotal role in shaping the composition of the Board
by developing competency frameworks aligned with the
Company''s industry landscape and strategic objectives. In
doing so, the Committee undertakes a comprehensive analysis
of Board composition, grounded in a deep understanding of
the Company''s strategic direction, business environment,
operational needs, financial health, and regulatory obligations.

To ensure the Board remains well-equipped to meet evolving
challenges, the NRC conducts periodic gap analyses. These
reviews are particularly emphasized during the appointment
or re-appointment of Directors. As part of this process, the NRC

assesses potential candidates against a clearly defined set of
required competencies, undertakes thorough due diligence,
and engages with shortlisted individuals prior to making
formal recommendations to the Board.

Your directors firmly believe that Board diversity is essential
for fostering robust governance, enhancing innovation,
and supporting effective decision-making. A diverse Board
brings varied perspectives and experiences that strengthens
leadership capability, supports long-term value creation,
and promotes an inclusive corporate culture. As such, Board
diversity is recognized as a strategic enabler of improved
organizational performance, enhanced innovation, and a
strong corporate reputation.

In accordance with Regulation 19(4) and 20(4), and Part D
of Schedule II of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, the Board has adopted a
formal Policy on Diversity of the Board of Directors. This
policy underscores the Company''s commitment to promoting
a balanced and inclusive Board structure and is available
on the Company''s website at: https://www.iolcp.com/
about-us/policies

Detailed information regarding the nomination and
appointment process of Directors, along with the list of core
skills, expertise, and competencies of the Board of Directors,
are provided in the Corporate Governance Report, which forms
part of the Annual Report.

18. Corporate Governance

The Company has complied with the requirements of the
Listing Regulations regarding corporate governance. A report
on the Company''s Corporate Governance practices and the
Auditors'' Certificate on compliance of mandatory requirements
thereof are given as an annexure to this Report and the same is
also available on the website of the Company at https://www.
iolcp.com/investors

19. Management Discussion and Analysis

In terms of the Regulation 34(2)(e) of SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 a Report on
Management Discussion and Analysis (MDA) forms part of
the Annual Report. The MDA provides detailed insights on
Company''s business, financial performance, key achievements,
challenges etc.

20. Internal financial control systems and their
adequacy

The Company''s internal control systems are commensurate
with the nature of its business, the size and complexity of its
operations and such internal financial controls with reference
to the Financial Statements are adequate including adherence
to the Company''s policies, safeguarding of its assets, prevention
and detection of frauds and errors, accuracy and completeness
of the accounting records and timely preparation of reliable
financial disclosures.

Effectiveness of internal financial controls is ensured through
management reviews, controlled self-assessment and
Independent Auditors. Refer para on Internal Control Systems
and their Adequacy in MD&A for additional details.

21. Risk Management

The Risk Management Committee (''RMC'') is constituted
to frame, implement and monitor the Enterprise Risk
Management (''ERM'') Framework of the Company, while Board
takes responsibility for the overall process of risk management
throughout the organisation. Through an ERM programme,
our business units and corporate functions address risks
by adopting an institutionalized approach aligned to our
objectives. The Business risk is managed through cross¬
functional involvement and communication across businesses.

RMC reviews on a regular interval monitor and reviews the
ERM framework of the Company to assess and manage
various existing risk and to identify new risks and prepare
mitigation plan.

The Audit Committee also has an additional oversight in the
area of financial risks and controls.

A detailed note on Risk Management has been provided in
the Management Discussion and Analysis Report, which forms
part of this report.

22. Related Party Transactions

There was no material transaction entered with any related
party during the year under review. Further, no transaction
with related party falls under the ambit of Section 188(1) of the
companies Act, 2013. Accordingly, the disclosures of related
party transactions as required under Section 134(3)(h) of the
Companies Act 2013 read with Rule 8(2) of the Companies
(Accounts) Rules,2014 in Form No. AOC-2 is not applicable to
the Company for the financial year 2024-25 and hence does
not form part of this report.

All related party transactions were approved by the Audit
Committee and Board and periodically reviewed by the Audit
Committee. The details of the related party transaction during
financial year 2024-25 are provided in the accompanying
financial statements.

Pursuant to the provisions of the Companies Act 2013 and
SEBI Listing Regulations 2015, the Company has formulated
a Policy on Materiality of and Dealing with Related Party
Transactions and the same is available on the Company''s
website www.iolcp.com.

23. Corporate Social Responsibility (CSR)

The Board has constituted a Corporate Social Responsibility
Committee (''CSR Committee''). The Company has in place a
Corporate Social Responsibility Committee (''CSR Committee'')

in terms of the requirements of section 135 of the Companies
Act, 2013 read with the rules made thereunder.

A brief note regarding the Company''s initiatives with respect
to CSR and the composition of the CSR Committee and the
Annual Report on the Corporate Social Responsibility (CSR)
initiatives undertaken by the Company during the year under
review are set out in Annexure - 2 of this report in the format
prescribed in the Companies (Corporate Social Responsibility
Policy) Rules, 2014. The CSR Policy is available on Company''s
website: https://www.iolcp.com/about-us/policies

24. Research and Development

The Company remains steadfast in its commitment to research
and development—an essential pillar of its mission to deliver
innovative solutions that protect and enhance human lives
globally. Our R&D initiatives are strategically aligned to
develop safe, effective, and differentiated products that meet
market demands and comply with global regulatory standards.

During the year, our sustained R&D efforts led to
several key milestones

• Approval of two Certificates of Suitability (CEPs) for
Quetiapine and Mesalamine.

• Approval of a US Drug Master File (US-DMF)
for Fenofibrate.

• Seven new regulatory filings, comprising:

• 2 CEP submissions,

• 2 filings with the Korean regulatory authority,

• 1 filing each with the regulatory agencies of Brazil,
China, and Canada.

• Three API molecules successfully completed commercial
validation during the year.

• Two API molecules are at Pilot scale validation
during this year.

To enhance our analytical proficiency and deepen
understanding of API characteristics, we have strengthened
our laboratory infrastructure with the installation of
advanced equipment:

• High-Resolution Microscope - for in-depth morphological
analysis of API particles

• Micromeritics Surface Area Analyzer - for

accurate measurement of specific surface area,
essential for controlling particle behaviour and
formulation performance

These enhancements support robust quality control, facilitate
regulatory compliance, and contribute to high-precision
product development.

These achievements underscore our continued emphasis on
innovation, regulatory compliance, and expanding our global
footprint in the pharmaceutical space.

25. Audit Committee

The Composition and role of the Committee has been provided
in the Corporate Governance Report annexed with the report.

26. Statutory Auditors and Auditors'' Report

Pursuant to the provisions of Section 139 of the Companies
Act, 2013 and the Rules framed thereunder, M/s Ashwani &
Associates, Chartered Accountants, Ludhiana, Registration
No:000497N were appointed as statutory auditors of the
Company from conclusion of 36^th Annual General Meeting of
the Company held on 10^th August 2023 till the conclusion of
the 41^st Annual General Meeting to be held in the year 2028.

The report of the Statutory Auditors forms part of this Report
and Annual Accounts 2024-25. The said report does not contain
any qualification, reservation, adverse remark or disclaimer.
During the year under review, the Auditors did not report any
matter under Section 143(12) of the Act, therefore no detail is
required to be disclosed under Section 134(3)(ca)of the Act.

27. Secretarial Auditors and Audit Report

The Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) (Third Amendment)
Regulations, 2024 notified vide SEBI circular No. SEBI/LAD-
NRO/GN/2024/218 inter-alia prescribes detailed norms for
the appointment, re-appointment, and removal of Secretarial
Auditors in listed entities and its material Indian subsidiaries.

Accordingly, in accordance with the Regulation 24A(1)(b) of
the SEBI Listing Regulations 2015, as amended by SEBI (Listing
Obligations and Disclosure Requirements) (Third Amendment)
Regulations, 2024, the Board of Directors of the Company at
its meeting held on 16^th May 2025 considered the matter of
appointment of the Secretarial Auditor and have approved and
proposed to the members for their approval at the this (AGM),
appointment of M/s B. K. Gupta & Associates, as the Secretarial
Auditors of the Company for a term of five consecutive years
from FY 2025-26 to FY 2029-30.

The Secretarial Audit Report for the FY 2024-25, issued by the
Secretarial Auditor M/s B. K. Gupta & Associates, practicing
Company Secretary is annexed herewith as Annexure - 3 and
forms an integral part of this Report.

The Secretarial Audit Report is self-explanatory and does
not call for any comments. The Report does not contain any
qualifications, reservations, adverse remarks, or disclaimers,
except for the following observations:

• Delay in filling the vacancy of the Woman Independent
Director within the prescribed timeline, in accordance with
Regulation 17(1E) of the SEBI (LODR) Regulations, 2015.

• Non-compliance with the composition requirements of
the Nomination and Remuneration Committee under
Regulation 19 of the SEBI (LODR) Regulations, 2015.

The Board acknowledges the delay in appointment of a
Woman Independent Director, to fill the vacancy caused
due to retirement of Dr Sandhya Mehta during the year. The
Company made every effort to fill the vacancy, as the Board
determined that an expert is required for the role, however,
given the specific matrix of skills, expertise, and competencies
as identified by the Board for each director, alongside the need
for specialized qualifications and experience, it took longer
than anticipated to identify and finalize the ideal candidate. The
management remains fully committed to ensuring adherence
to both the letter and spirit of applicable laws and regulations.

Further, the Secretarial Auditors have not reported any matter
under Section 143(12) of the Companies Act, 2013. Accordingly,
no disclosure is required under Section 134(3)(ca) of the Act.

28. Secretarial Standards

The Company has proper system in place to ensure the
due compliance with the provisions of the applicable
secretarial standards issued by the Institute of the Company
Secretaries of India.

29. Cost Records & Cost Auditors

In accordance with Section 148 of the Act read with the
Companies (Audit and Auditors) Rules, 2014, the Company
maintains cost records as required, and a Cost Accountant
conducts the audit of these records.

The Board of Directors, based on the recommendation of
the Audit Committee, has approved the appointment of M/s.
Ramanath Iyer & Co., Cost Accountants, New Delhi, as the Cost
Auditors of the Company for the financial year 2025-26 at a
remuneration of H1,81,500/- plus applicable taxes and out-of¬
pocket expenses in connection with the cost audit.

Further, pursuant to the provisions of Section 148(3) and other
applicable provisions, if any, of the Companies Act, 2013 read
with Rule 14 of the Companies (Audit and Auditors) Rules, 2014,
the remuneration of Cost Auditors as approved by the Board is
required to be ratified by the shareholders of the Company and
therefore, the same is included in the ensuing AGM notice for
the ratification of the shareholders.

The Cost Audit Report for the financial year ended 31^st March
2024, provided by the Cost Auditor, does not contain any
qualification or adverse remarks that require any clarification
or explanation.

30. Particulars of managerial remuneration and
related disclosures

Disclosures relating to remuneration and other details as
required under Section 197(12) of the Act read with Rule 5(1) of

the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 are provided in Annexure-4.

In terms of the provisions of Section 197(12) of the Act read
with Rules 5(2) and 5(3) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014,
as amended, a statement showing the names and other
particulars of the employees drawing remuneration in excess
of the limits set out in the said rules are provided in the Annual
Report, which forms part of this Report.

31. CEO & CFO Certification

The Managing Director and CFO of the Company have certified
to the Board of Directors, inter-alia, the accuracy of financial
statements and adequacy of internal controls for the financial
reporting as required under Regulation 17(8) of the Listing
Regulations for the Financial Year 2024-25, which forms part
of this Report.

32. Annual Return

In terms of Section 92(3) of the Act and Rule 12 of the
Companies (Management and Administration) Rules,2014, the
Annual Return of your Company is available on the website
of your Company at the web-link https://www.iolcp.com/
investors/annual-returns

33. Loan, guarantees or investment under Section
186 of the Companies Act, 2013

The particulars of loans, guarantees and investments have
been provided in the notes of the financial statements.

34. Material Changes and Commitments

There have been no material changes and commitments
affecting the financial position of the Company which occurred
between the end of the Financial Year of the Company as on
31^st March 2025 and the date of this report.

35. Significant and Material Orders impacting
Operations of Company in Future

There are no significant or material orders that have been
passed by any Regulators/Court or Tribunals impacting the
going concern status and future operations of your company.

36. Reporting of Frauds

There have been no instances of fraud reported by the
Statutory Auditors of the Company under Section 143(12) of
the Companies Act, 2013 and the Rules framed thereunder
either to the Company or to the Central Government.

37. Industrial Relations

Industrial relations remained cordial and harmonious
throughout the year under review.

38. Safety, Health and Environment

The Company is committed to continuously raise awareness
of supply chain members to comply with applicable laws
and regulations related to labour and employment, including
gender diversity, human rights, child labour,wages, working
hours, bribery & corruption, occupational health, safety and
environment. IOL Responsible Sourcing Standard enshrines
the Company''s unwavering focus on fair treatment, human
rights, good labour practices, environmental conservation,
health and safety.Safety is Company''s top priority with regard
to employment and it is encouraging safety measures at all
levels of operations especially at the floor level. Regular training
programmes are being conducted to bring in awareness of
safety at workplace.

39. Prevention of Sexual Harassment Policy

As per the requirement of the Sexual Harassment of Women
at the Workplace (Prevention, Prohibition and Redressal)Act,
2013 ("POSH"), the Company has a policy which is available
on its website at https://www.iolcp.com/about-us/policies and
robust mechanism in place to redress complaints reported
under it. The Company has complied with provisions relating
to the constitution of Internal Committee under POSH. The
Internal Committee is comprised of internal members and an
external member who has extensive experience in the field. No
complaints have been received during the year 2024-25.

40. Vigil Mechanism

In pursuant to the provisions of Section 177(9) & (10) of the
Companies Act, 2013, a Vigil Mechanism for directors and
employees to report genuine concerns has been established.
The Vigil Mechanism Policy can be accessed at company''s
website: www.iolcp.com

41. Business Responsibility and Sustainability
Report

In terms of Regulation 34(2)f of the Listing Regulations, the
Business Responsibility and Sustainability Report (BRSR) of your
Company detailing initiatives undertaken by the Company on
environmental, social and governance front during the year
under review, forms part of this Annual Report and is also
available on the website of the Company at www.iolcp.com

42. Energy Conservation / Technology Absorption
and Foreign Exchange Earnings and Outgo

Energy conservation continues to be an area of major emphasis
in the Company. A statement giving details of conservation of
energy, technology absorption, foreign exchange earnings

and outgo, in accordance with Section 134 of the Companies
Act, 2013 read with Rule 8(3) of the Companies (Accounts)
Rules, 2014 is annexed hereto as Annexure - 5 and forms
part of the Report.

43. Integrated Reporting

The Company is complying with the applicable requirements
of the Integrated Reporting Framework. The Integrated

Report tracks the sustainability performance of the
organization and its interconnectedness with the financial
performance, showcasing how the Company is adding value
to its stakeholders. The Integrated Report forms a part of this
Integrated Annual report.

44. General

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these
items during the year under review:

	1.			2.		3.		4.
/		>		r a		r A		r A
						The Company does not have
	Issue of equity shares					any scheme of provision of		Neither the Managing Director
	with differential			Change in the nature of		money for the purchase of		nor the Whole-time Directors
	rights as to dividend,			business of the Company.		its own shares by employees		of the Company receive any
	voting or otherwise.					or by trustees for the		remuneration or commission
						benefit of employees.		from any of its subsidiaries.
\				v_y		A_>
	5.			6.		7.		GO
/				r a		r a
	No significant or material
	orders were passed by the							There are no proceedings
	Regulators or Courts or			No fraud has been reported		There has been no one time		admitted against
	Tribunals which impact			by the Auditors to the Audit		settlement of loans with any		the Company under
	the going concern			Committee or the Board.		bank or financial institution.		the Insolvency and
	status and Company''s							Bankruptcy Code, 2016.
\	operations in future.			V y		v y

45. Acknowledgement

The Directors wish to place on record their sincere appreciation
for the continued support extended to the Company by its
investors, bankers, central and state government departments,
customers, and suppliers.

The Board also acknowledges and deeply appreciates the
dedication, commitment, and hard work of employees at all
levels, whose unwavering efforts have been instrumental in
driving the Company''s sustained growth.

Further, the Board expresses its heartfelt gratitude to you, our
esteemed shareholders, for the trust and confidence you have
reposed in the management of the Company.

For and on behalf of the Board

Sd/- Sd/-

Varinder Gupta Rajender Mohan Malla

Place: Ludhiana Managing Director Chairman

Dated :16^th May 2025 DIN-00044068 DIN-00136657

---

Mar 31, 2024

The Board of Directors presents the 37^th Annual Report of the Company on the business operations and performance of the Company along with the audited financial statements for the year ended 31 March 2024.

1. Financial performance:

The brief summary of the financial performance of the Company for the Financial Year ended 31^st March 2024 along with the comparative figures for the previous year is summarized herein below:

(H in Crore)
	Standalone		Consolidated
	Year	Year	Year	Year
Particulars	ended	ended	ended	ended
	31-Mar-	31-Mar-	31-Mar-	31-Mar-
	2024	2023	2024	2023
Total income	2162.86	2242.68	2162.86	2242.72
Profit before interest &	261.59	252.09	260.66	251.28
depreciation
Interest	16.10	16.47	16.10	16.47
Profit before depreciation	245.49	235.62	244.56	234.81
Depreciation	62.85	46.13	62.91	46.16
Profit before exceptional	182.64	189.49	181.65	188.65
items
Exceptional items	0	0		0
Profit before tax	182.64	189.49	181.65	188.65
Provision for tax (including	47.22	49.51	47.22	49.51
deferred tax)
Profit after tax	135.42	139.98	134.43	139.14

During the year under review, the standalone operating revenue of your Company was H 2162.86 Crore as compared to H 2242.68 Crore in the previous year. The gross margin for FY 2023-24 was H 418.88 Crore as compared to H 381.20 Crore in the previous year. Margins were improved due to lower raw material cost as compared to previous year.

Pursuant to Regulation 34(2)(e) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“the Listing Regulations”), the Management Discussion and Analysis Report forms an integral part of this Integrated Annual Report and gives the details, inter alia, about the performance , Company''s state of affairs and Industrial Businesses of the Company in India and International , important changes, external environment, and economic outlook during the year under review.

During the year under review, there was no change in the nature of the Company''s business.

2. Dividend

The Board of Directors has declared interim dividends of H 5 per equity share involving a cash outflow of H 29.35 Crore during the year. The Board of Directors considers the same as

final dividend. The Board recommends the dividend based on the parameters laid down in the dividend distribution policy of the Company.

Pursuant to the Regulation 43A of the Listing Regulations, the Board of Directors of the Company formulated and adopted the Dividend Distribution Policy of the Company. The said policy is available on the Company''s website at https://www. iolcp.com/about-us/policies

3. Transfer to reserves

The Board has decided to retain the entire amount of the profits for the financial year 2023-24 in the profit and loss account and has not transferred any amount of profits to reserves not transferred any amount of profits to reserves for FY 2023-24.

4. Fixed Deposits

The Company has not accepted any deposits within the meaning of Section 73 of the Companies Act, 2013 and as such no amount of principal or interest was outstanding as on 31^st March 2024.

5. Share Capital

During the financial year 2023-24, there was no change in the authorised, issued, subscribed, and paid-up share capital of the Company. The paid up equity share capital of the Company has been H 58,70,55,020/- (Rupees Fifty Eight Crore Seventy Lakh Fifty Five Thousand and Twenty) consisting of 5,87,05,502 (Five Crore Eighty Seven Lakh Five Thousand Five Hundred Two) equity shares of H 10/- each as on 31.03.2024.

6. Investor Education and Protection Fund (IEPF)

Pursuant to the provisions of Section 124 of the Companies Act,2013 (“the Act") read with Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (“IEPF Rules"), and relevant circulars and amendments thereto, the amount of dividend remaining unpaid or unclaimed for a period of seven years from the due date is required to be transferred to the Investor Education and Protection Fund (“IEPF"), constituted by the Central Government.

During the year under review, no amount of unpaid/unclaimed dividend was due for transfer to the Investors Education protection Fund.

Members who have not encashed any dividend declared by the Company, are advised to write to the Company immediately at email id [e-mail]

7. Holding & Subsidiary Company

Details of subsidiaries / associates of your Company are provided in notes to financial statements.

We have 3 subsidiaries as on March 31, 2024. Out of these 3 subsidiaries IOL Foundations Corporate Overview Statutory Reports Financial Statements 41 is a Section 8 Company that undertakes the CSR activities of the Company. During the year under review, the company has closed its overseas subsidiary IOL GLOBAL LIMITED in UK

The consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with the provisions of Section 129(3) of the Act, which forms part of the Annual Report. A statement containing the salient features of financial statements of the Company''s subsidiaries, associates & joint ventures in Form No. AOC-1 is annexed as Annexure - 1 to this report.

Further, pursuant to the provisions of Section 136 of the Act, the financial statements of the Company, consolidated financial statements along with relevant documents and separate audited financial statements in respect of subsidiaries, are available on the website of the Company at www.iolcp.com

The company has neither a holding company nor an associate company

8. Re-affirmation of External Credit Rating

During the year under review, the Credit Analysis & Research Ltd (CARE) has reaffirmed the credit rating of the Company for Long term Bank Facilities as ''CARE A '' (Single A plus ; Outlook: Stable) and the credit rating for Short Term Bank Facilities as ''CARE A1 ''(A One plus).

9. Expansion

During the year 2023-24, the Company commenced “Acetic Anhydride” for captive consumption as well as merchant sale with installed capacity of 25000 MTPA .

During the year 2023-24, the Company has got additional approval from Center for Drug Evaluation (CDE) of National Medical Products Administration (NMPA), China for “Metformin Hydrochloride” whereas European Directorate for the Quality of Medicines & Health Care (EDQM) has issued a Certificate of Suitability for Gabapentin.

Further, during the year 2023-24, the Company successfully completed the Brazilian Health Regulatory Agency (ANVISA) GMP audit for all the 10 APIs manufacturing Units situated at Barnala, Punjab without any observation and later on received a Certificate of Good Manufacturing Practices in May 20024.

10. Directors and Key Managerial Personnel

The members of the company have appointed Mr Abhiraj Gupta as Executive Director for a Period of five years w.e.f 03^rd April 2022 till 2^nd April 2028 and has varied the terms of appointment of Mr Vikas Gupta by re-designating him as Joint Managing Director of the Company w.e.f 3^rd April 2023

The Board of Directors has appointed Mr. Vikas Vij as Chief Executive Officer of the Company effective from 3^rd April 2023 at the board meeting held same day.

Mr Vikas Gupta, Joint Managing Director of the Company retires by rotation at the ensuing Annual General Meeting and, being eligible, offers himself for re-appointment. A resolution seeking shareholders'' approval for his re-appointment forms part of the Notice for the ensuing AGM.

Further, On 14^th May, 2024 the Board of Directors, subject to the shareholders'' approval, re-appointed Mr. Kushal Kumar Rana as Director(Works) of the Company for a period of 5 years w.e.f. 4^th June 2024. A resolution in this regard has been proposed in the notice for the ensuing annual general meeting for the shareholders consideration and approval.

The brief details of all the directors seeking appointment/ re-appointment at the ensuing Annual General Meeting is furnished in the explanatory statement to the notice calling the Annual General Meeting.

During the year under review Mr Varinder Gupta, Managing Director; Mr Kushal Kumar Rana, Director-Works(Whole-time Director); Mr Vikas Gupta, Joint Managing Director (Wholetime Director); Mr Abhiraj Gupta, Executive Director (Wholetime Director); Mr Pardeep Kumar Khanna, Chief Financial Officer (CFO); Mr Abhay Raj Singh, Sr. VP & Company Secretary and Mr Vikas Vij, Chief Executive Officer continues to be the Key Managerial Personnel (KMP) of the Company in accordance with the provisions of Section(s) 2(51) and Section 203 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

11. Procedure for Nomination and Appointment of Directors

The Nomination and Remuneration Committee (''NRC'') evaluate the appropriate characteristics, skills and experience for the individual director and board with an idea to form a well diverse board having diversified backgrounds and experiences and recommends the eligible candidate to the Board for appointment as new directors.

Your directors consider that the Board diversity is a key factor in promoting effective governance, innovation, and decisionmaking. By focusing on board diversity, organizations can harness the full potential of their leadership teams, drive sustainable growth, and build a more inclusive corporate culture. Having a diverse Board is a strategic advantage that can lead to better performance, greater innovation, and enhanced reputation for the organization.

Pursuant to the Regulation 19(4) & 20(4) and Part D of Schedule II of Listing Regulations, 2015 the Board of the Company has adopted a Policy on diversity of Board of Directors. The said policy is available on the website of the company at https:// www.iolcp.com/about-us/policies

Detailed information regarding the nomination and appointment process of Directors, along with the list of core skills, expertise, and competencies of the Board of Directors, are provided in the Corporate Governance Report, which forms part of the Annual Report.

12. Woman Director

In terms of the provisions of Section 149 of the Companies Act, 2013 and Regulation 17 of the Listing Regulations, Dr Sandhya Mehta is serving as Independent Woman Director on the Board of the Company. She is also Chairperson of Stakeholders Relationship Committee and member of Audit Committee, Nomination and Remuneration Committee, CSR Committee and Risk Management Committee.

13. Board Evaluation

Pursuant to the provisions of Companies Act, 2013 and SEBI Listing Regulations, Company has formulated and adopted Policy of Evaluation of Board (the “Board Evaluation Policy”) to formulate the procedures and to prescribe & lay down the criteria to evaluate Board of Directors. The annual evaluation is carried out by the Board of its own performance and that of its committees and individual Directors by way of individual and collective feedback from all the Directors. The Directors expressed their satisfaction with the evaluation process. In a separate meeting of independent directors, performance of non-independent directors, the Board as a whole and Chairman of the Company was evaluated, considering the views of executive as well as non-executive directors. The evaluation criteria are mainly based on the Guidance Note on Board Evaluation issued by the SEBI.

14. Number of Meetings of the Board

During the year the Board met 4 times. The gap between any 2 two consecutive meetings was within the period prescribed under the Companies Act, 2013 and Listing Regulations. The details of meetings of the Board of Directors and its Committees are provided in the Corporate Governance Report forming part of this report.

15. Meeting of Independent Directors

Pursuant to the requirements of Schedule IV of the Companies Act, 2013 and in terms of Regulation 25 of the Listing Regulations, a separate meeting of the Independent Directors of the Company were convened on 29^th March, 2024 to review the matters as laid down in the aforesaid Schedule and Regulations.

16. Directors'' Responsibility Statement

To the best of their knowledge and belief and according to the information and explanations obtained by them, your

Directors make the following statements in terms of Section 134(3)(c) of the Companies Act, 2013:

a. that in the preparation of the annual financial statements for the year ended 31 March 2024, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

b. that such accounting policies as mentioned in Note 1 of the Notes to the Financial Statements have been selected and applied consistently and judgement and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at the end of the year and of the profit of the Company for that year;

c. that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. that the annual financial statements have been prepared on a going concern basis;

e. that proper internal financial controls were in place and that the financial controls were adequate and were operating effectively.

f. that systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively

17. Declaration by Independent Directors

All the Independent Directors have submitted declarations that each of them meets the criteria of independence as provided in Section 149(6) of the Companies Act along with Rules framed thereunder and Regulation 16(1)(b) of the SEBI Listing Regulations. There has been no change in the circumstances affecting their status as independent directors of the Company and hance, they continue to comply the criteria to serve as independent directors.

18. Nomination and Remuneration Policy

The Board, has on the recommendation of the Nomination & Remuneration Committee, framed a Nomination and Remuneration Policy (“Remuneration Policy”), which provides process for selection and appointment of Directors, key managerial personnel and Senior Management employees including criteria for determining qualifications, positive attributes, fixation of remuneration, independence of a Director and other matters, as required under sub-section (3) of Section 178 of the Act.

The Remuneration Policy is available on the company''s website at https://www.iolcp.com/uploads/Nomination-and-Remuneration-Policy.pdf

19. Corporate Governance

The Company has complied with the requirements of the Listing Regulations regarding corporate governance. A report on the Company''s Corporate Governance practices and the Auditors'' Certificate on compliance of mandatory requirements thereof are given as an annexure to this Report and the same is also available on the website of the Company at https://www. iolcp.com/investors

20. Management Discussion and Analysis

In terms of the Regulation 34(2)(e) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 a Report on Management Discussion and Analysis (MDA) forms part of the Annual Report. The MDA provides detailed insights on Company''s business, financial performance, key achievements, challenges etc.

21. Audit Committee

The Composition and role of the Committee has been provided in the Corporate Governance Report annexed with the report.

22. Internal financial control systems and their adequacy

The Company''s internal control systems are commensurate with the nature of its business, the size and complexity of its operations and such internal financial controls with reference to the Financial Statements are adequate including adherence to the Company''s policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records and timely preparation of reliable financial disclosures.

Effectiveness of internal financial controls is ensured through management reviews, controlled self-assessment and Independent Auditors. Refer para on Internal Control Systems and their Adequacy in MDA for additional details.

23. Risk Management

The Risk Management Committee (''RMC'') is constituted to frame, implement and monitor the Enterprise Risk Management (''ERM'') Framework of the Company, while Board takes responsibility for the overall process of risk management throughout the organisation. Through an ERM programme, our business units and corporate functions address risks by adopting an institutionalized approach aligned to our objectives. The Business risk is managed through crossfunctional involvement and communication across businesses.

RMC reviews on a regular interval monitor and reviews the ERM framework of the Company to assess and manage various existing risk and to identify new risks and prepare mitigation plan.

The Audit Committee also has an additional oversight in the area of financial risks and controls.

A detailed note on Risk Management has been provided in the Management Discussion and Analysis Report, which forms part of this report.

24. Related Party Transactions

All related party transactions that were entered into during the financial year were on arm''s length and were in the ordinary course of business and therefore did not attract the provisions of Section 188 of the Companies Act 2013. Moreover, there were no material transaction entered into with any related party during the year under review.

All related party transactions were approved by the Audit Committee and periodically reported to the Audit Committee. Prior omnibus approval of the Audit Committee was taken for related party transactions which are of repetitive nature and entered in the ordinary course of the business on arm''s length basis.

The details of the related party transaction during financial year 2023-24 are provided in the accompanying financial statements.

Accordingly, the disclosures of related party transactions as required under Section 134(3)(h) of the Companies Act 2013 read with Rule 8(2) of the Companies (Accounts) Rules,2014 in Form No. AOC-2 is not applicable to the Company for the financial year 2023-24 and hence does not form part of this report.

Pursuant to the provisions of the Companies Act 2013 and SEBI Listing Regulations 2015, the Company has formulated a Policy on Materiality of and Dealing with Related Party Transactions and the same is available on the Company''s website www.iolcp.com.

25. Corporate Social Responsibility (CSR)

The Board has constituted a Corporate Social Responsibility Committee (''CSR Committee''). The Company has in place a Corporate Social Responsibility Committee (''CSR Committee'') in terms of the requirements of section 135 of the Companies Act, 2013 read with the rules made thereunder.

A brief note regarding the Company''s initiatives with respect to CSR and the composition of the CSR Committee and the Annual Report on the Corporate Social Responsibility (CSR) initiatives undertaken by the Company during the year under review are set out in Annexure - 2 of this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. The CSR Policy is available on Company''s website: https://www.iolcp.com/about-us/policies

26. Research and Development

IOL is committed to investing in R&D, as part of our mission to find breakthroughs to safeguard lives. Our R&D program is designed to develop safe and effective breakthroughs for human lives across the globe. R&D has played a significant role in the development of customized requirements, addressing regulatory requirements, leading to four new CEP filings, three USDMF fillings & two new approval of CEPs.

We are active supporters of finding new ways of developing API''s using latest technological tools by minimizing energy consumption & minimal waste generation to keep environment cleaner. In this context R&D team has successfully developed & scale up a key intermediate of an API via continuous flow chemistry. In continuation to last year, we have established novel route of synthesis for one of our API & filed patent application.

Our Commitment to Improving Health through R&D in API''s is continuous & this year three products have been scaled up at commercial scale in multipurpose production facility, and three new products are at kilo scale.

27. Statutory Auditors

Pursuant to the provisions of Section 139 of the Companies Act, 2013 and the Rules framed thereunder, M/s Ashwani & Associates, Chartered Accountants, Ludhiana, Registration No:000497N were appointed as statutory auditors of the Company from conclusion of 36^th Annual General Meeting of the Company held on 10^th August 2023 till the conclusion of the 41^st Annual General Meeting to be held in the year 2028.

The report of the Statutory Auditor forms part of this Report and Annual Accounts 2023-24. The said report does not contain any qualification, reservation, adverse remark or disclaimer. During the year under review, the Auditors did not report any matter under Section 143(12) of the Act, therefore no detail is required to be disclosed under Section 134(3)(ca)of the Act.

28. Secretarial Audit

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board had appointed M/s B. K. Gupta & Associates, practicing Company Secretary for conducting secretarial audit of the Company. The Secretarial Audit Report is annexed herewith as Annexure - 3.

The Secretarial Audit report does not contain any qualification, reservation or adverse remark.

29. Secretarial Standards

The Company has proper system in place to ensure the due compliance with the provisions of the applicable secretarial standards issued by the Institute of the Company Secretaries of India.

30. Cost Records & Cost Auditors

In accordance with Section 148 of the Act read with the Companies (Audit and Auditors) Rules, 2014, the Company maintains cost records as required, and a Cost Accountant conducts the audit of these records.

The Board of Directors, based on the recommendation of the Audit Committee, has approved the appointment of M/s. Ramanath Iyer & Co., Cost Accountants, New Delhi, as the Cost Auditors of the Company for the financial year 2024-25 at a remuneration of H 181500/- plus applicable taxes and out-ofpocket expenses in connection with the cost audit.

Further, pursuant to the provisions of Section 148(3) and other applicable provisions, if any, of the Companies Act, 2013 read with Rule 14 of the Companies (Audit and Auditors) Rules, 2014, the remuneration of Cost Auditors as approved by the Board is required to be ratified by the shareholders of the Company and therefore, the same is included in the ensuing AGM notice for the ratification of the shareholders.

The Cost Audit Report for the financial year ended 31^st March 2023, provided by the Cost Auditor, does not contain any qualification or adverse remarks that require any clarification or explanation.

31. Particulars of managerial remuneration and related disclosures

Disclosures relating to remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided in Annexure-4.

In terms of the provisions of Section 197(12) of the Act read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said rules are provided in the Annual Report, which forms part of this Report.

32. CEO & CFO Certification

In accordance with the provisions of the SEBI Listing Regulations the Executive Director & CEO and Chief Financial Officer of the Company have submitted the relevant certificate

for the Financial Year 2023-24 to the Board of Directors, which forms part of this Report.

33. Annual Return

Pursuant to the provisions of Section 134(3)(a) of Companies Act, 2013, the web address of the Annual Return of the Company is https://www.iolcp.com/investors/annual-returns

34. Loan, guarantees or investment under Section 186 of the Companies Act, 2013

The particulars of loans, guarantees and investments have been provided in the notes of the financial statements.

35. Material Changes and Commitments

There have been no material changes and commitments affecting the financial position of the Company which occurred between the end of the Financial Year of the Company as on 31^st March 2024 and the date of this report.

36. Significant and Material Orders impacting Operations of Company in Future

There are no significant or material orders that have been passed by any Regulators/Court or Tribunals impacting the going concern status and future operations of your company.

37. Reporting of Frauds

There have been no instances of fraud reported by the Statutory Auditors of the Company under Section 143(12) of the Companies Act, 2013 and the Rules framed thereunder either to the Company or to the Central Government.

38. Industrial Relations

Industrial relations remained cordial and harmonious throughout the year under review.

39. Safety, Health and Environment

Safety is Company''s top priority with regard to employment and it is encouraging safety measures at all levels of operations especially at the floor level. Regular training programmes are being conducted to bring in awareness of safety at workplace.

40. Prevention of Sexual Harassment Policy

In line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)

Act, 2013, the Company has set up Complaints Committees at its workplace. No complaints have been received during the year 2023-24.

41. Vigil Mechanism

In pursuant to the provisions of Section 177(9) & (10) of the Companies Act, 2013, a Vigil Mechanism for directors and employees to report genuine concerns has been established. The Vigil Mechanism Policy can be accessed at company''s website: www.iolcp.com

42. Business Responsibility and Sustainability Report

In terms of Regulation 34(2)f of the Listing Regulations, the Business Responsibility and Sustainability Report (BRSR) of your Company detailing initiatives undertaken by the Company on environmental, social and governance front during the year under review, forms part of this Annual Report and is also available on the website of the Company at www.iolcp.com

43. Energy Conservation / Technology Absorption and Foreign Exchange Earnings and Outgo

Energy conservation continues to be an area of major emphasis in the Company. A statement giving details of conservation of energy, technology absorption, foreign exchange earnings and outgo, in accordance with Section 134 of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is annexed hereto as Annexure - 5 and forms part of the Report.

44. Integrated Reporting

The Company is complying with the applicable requirements of the Integrated Reporting Framework. The Integrated Report tracks the sustainability performance of the organization and its interconnectedness with the financial performance, showcasing how the Company is adding value to its stakeholders. The Integrated Report forms a part of this Integrated Annual report.

45. General

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:

1. Issue of equity shares with differential rights as to dividend, voting or otherwise.

2. Change in the nature of business of the Company.

3. The Company does not have any scheme of provision of money for the purchase of its own shares by employees or by trustees for the benefit of employees.

4. Neither the Managing Director nor the Whole-time Directors of the Company receive any remuneration or commission from any of its subsidiaries.

5. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company''s operations in future.

6. No fraud has been reported by the Auditors to the Audit Committee or the Board.

7. There has been no one time settlement of loans with any bank or financial institution.

8. There are no proceedings admitted against the Company under the Insolvency and Bankruptcy Code, 2016.

46. Acknowledgement

The Directors wish to place on record their appreciation of the continuous support received by the Company from the investors, Bankers, Central/State Government Departments, its Customers and Suppliers.

We also place on record our sincere appreciation of the contribution made by the employees at all levels. Our consistent growth is made possible by their devout, sincere and unstinted services.

Further, the Board expresses its gratitude to you as Shareholders for the confidence reposed in the management of the Company

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Mar 31, 2018

Dear Members

The Board of Directors hereby submits the report of the business and operations of your company for the financial year ended 31 March 2018.

Financial Results

Financial results of the company for the financial year under report are given below:

(Rs. in crore)

Particulars	Year ended 31 March 2018	Year ended 31 March 2017
Total revenue	1002.86	774.44
Profit before interest & depreciation	125.86	103.45
Interest	64.35	67.68
Profit before depreciation	61.51	35.77
Depreciation	30.21	29.84
Profit before tax	31.30	5.93
Provision for tax (including deferred tax)	3.60	1.26
Profit after tax	27.70	4.67
Other comprehensive income	(0.65)	(0.36)
Total comprehensive income for the year 2017-18	27.05	4.31

Performance Review

Your company has shown excellent results in the year under review and crossed landmark of Rs.1000 crore. The company has achieved total revenue Rs.1002.86 crore during the year under review in comparison to Rs.774.44 crore during the previous year, registering an increase of 29.49 %. The profit after tax is Rs.27.70 crore during the year against Rs.4.67 crore during the previous year, mainly due to increase in sales of the company and improved operational efficiencies during the year. The EBITDA during financial year ended 31 March 2018 went up to Rs.125.86 crore as against Rs.103.45 crore during previous financial year ended 31 March 2017.

The company continues to give more focus to increase the pharma share in its total business and is able to increase pharma share to 63% during the year under review against 56% during the previous year.

Cash Flow Statement

A Cash Flow Statement for the financial year 2017-18 is included in the annexed statement of accounts.

Dividend

The Board of Directors has not recommended any dividend due to inadequate profit during the year under review.

Share Capital

The paid up equity share capital of the company is Rs.56,20,55,020/consisting of 5,62,05,502 equity shares of Rs.10/- each as on 31 March 2018.

Holding & Subsidiary Company

The company has neither a holding company nor any subsidiary company.

Internal financial control systems and their adequacy

The details in respect of internal financial controls and their adequacy are included in the Management Discussion & Analysis Report , which forms part of this report.

Loan, guarantees or investment under Section 186 of the Companies Act, 2013

The particulars of loans, guarantees and investments have been provided in the notes of the financial statements.

Expansion Schemes

During the year 2017-18, your company has setup Unit III to manufacture Fenofibrate, Clopidogrel and Lamotrigine with project cost of Rs.16.48 crore met through internal accruals. The company has also setup Unit IV for manufacturing Metformin an anti-diabetic drug with a capacity of 3000 MT per annum with project cost of Rs.10.02 crore which was financed through internal accruals.

The company has also enhanced installed capacity of Ibuprofen from 7200 TPA to 10000 TPA by debottlenecking and re-engineering the plant in the month of August 2018.

Research and Development

Research and Development (R&D) capabilities have enabled your company to produce technology-intensive products, enhancing its presence in local & international markets. The company’s R&D strength is in developing processes for APIs and intermediates with substantial backward integration to minimize its dependency on external forces and to be a leader in highly competitive world of generic APIs. Currently, the company has five APIs and three intermediates in its pipeline, which are either on the verge of development or are ready for commercialization. Going forward, the company’s R&D is targeting to develop at-least 4-5 APIs every year. The company employs about 50 research scientists working in R&D centre equipped with cutting-edge technologies for research.

Credit Rating

The CARE Ratings Limited has revised the credit rating for long term bank facilities to ‘CARE BBB-; Stable’ (Triple B Minus; Outlook: Stable) from ‘CARE BB; Stable’ (Double B; Outlook: Stable) and the credit rating for short term bank facilities to ‘CARE A3’(A Three) from ‘CARE A4 Stable’ (A Four).

Composition and Number of Meetings of the Board

The Board comprises of well qualified and experienced persons having expertise in their respective areas. It has appropriate combination of Executive, Non Executive and Independent Directors.

During the financial year 2017-18, the Board met 4 (four) times on 27 May 2017, 18 August 2017, 13 November 2017 and 12 February 2018.

Directors /Key Managerial Personnel

In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the company, Mr Vijay Garg and Mr Vikas Gupta will retire in the ensuing Annual General Meeting and being eligible has offered themselves for re-appointment. The Board has recommended their re-election to the members.

During the current year, Mr Vijay Singla, Director (Works) has resigned from directorship with effect from 27 May 2017, however remains in the company as President (Chemicals).The Board places on record their appreciation for the services rendered by him during his tenure as director of the company.

Board evaluation

The Board has carried out an annual evaluation of its own performance, board committees and independent directors pursuant to the provisions of the Companies Act, 2013 and the corporate governance requirements as prescribed under Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, (hereinafter referred as SEBI Listing Regulations). The Board has evaluated the performance of independent directors mainly on the basis of their constructive participation in the board/ committee proceedings, their ability to monitor the management performance, providing guidance in the key issue in the best interest of the company and their commitment to the ethical and to fulfilment of fiduciary and other duties assigned by the act, regulations and rules by the Government. The performance evaluation of the chairman and the non-Independent directors was carried out by the Committee of Independent Directors.

Nomination and Remuneration Policy

The Nomination and Remuneration Policy on directors’ appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other matters, as required under Section 178 of the Companies Act, 2013 is available on our website www.iolcp.com. There has been no change in the policy since the last fiscal year.

Directors’ Responsibility Statement

Pursuant to the provisions of Section 1 34(5) of the Companies Act, 2013, the Directors of your company confirm that:

a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures.

b) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit or loss of the company for that period;

c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

d) they have prepared the annual accounts on a going concern basis.

e) they have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and operating properly; and

f) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Declaration by Independent Directors

The company has received necessary declaration from each of independent director under Section 149(7) of the Companies Act, 2013 that he/she meets the criteria of independence as laid down in Section 149(6) of the Companies Act, 2013 and Regulation 16 of the SEBI Listing Regulations, 2015.

Corporate Governance

The company has in place a system of Corporate Governance. A separate report on Corporate Governance along with auditors’ certificate regarding compliance of conditions of corporate governance set out by the SEBI Listing Regulations is annexed to this Report.

Management Discussion and Analysis Report

Management Discussion and Analysis Report is given separately in this Report.

Audit and Risk Management Committee

The Composition and role of the Committee has been provided in the Corporate Governance Report annexed with this report.

Risk Management

The Board has formed Audit and Risk Management Committee inter alia to frame, implement and monitor the risk management plan for the company. The Committee is responsible for reviewing the risk management plan and ensuring its effectiveness. It has been covered in the Management Discussion and Analysis Report, which forms part of this report.

Related Party Transactions

All related party transactions that were entered into during the financial year were on arm’s length and were in the ordinary course of business. During the year, the company had not entered into any contract / arrangement / transaction with related parties which could be considered material in accordance with the provisions of Policy on Materiality of and dealing with Related Party Transactions. The disclosures of related party transactions are provided in notes to financial statements.

The company has formulated a Policy on Materiality of and dealing with Related Party Transactions. The policy is available on the company’s website www.iolcp.com.

Fixed Deposits

The company has not accepted any fixed deposits from the public/ members during the year under review.

Investor Services

Your company is committed to provide its best services to the shareholders/ investors. M/s Alankit Assignments Limited, New Delhi is working as Registrars and Share Transfer Agents (RTA) of the company for transfer, dematerialization of shares and other investor related services. No correspondence /enquiry from any shareholder/ investor is pending with the company for reply.

Listing of Shares

The equity shares of the company continued to be listed and traded on National Stock Exchange of India Limited (Script code; IOLCP) and BSE Limited (Script code; 524164). The company has made all compliances of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including payment of annual listing fee.

Energy Conservation / Technology Absorption and Foreign Exchange Earnings and Outgo

Energy conservation continues to be an area of major emphasis in the company. A statement giving details of conservation of energy, technology absorption, foreign exchange earnings and outgo, in accordance with Section 134 of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is annexed hereto as Annexure I and forms part of this report.

Auditors

M/s SCV & Co. LLP, Chartered Accountants, New Delhi (formerly known as M/s S C Vasudeva & Co.) Statutory Auditors of the company have submitted Auditors’ Report on the financial statements of the company for the financial year ended on 31 March 2018. The Auditors’ Report for the year is self-explanatory & does not contain any modified opinion, hence no comment is required.

Pursuant to the provisions of Section 139 of the Companies Act, 2013 and the Rules framed thereunder, M/s SCV & Co. LLP, Chartered Accountants, New Delhi (formerly known as M/s S C Vasudeva & Co.) will mandatorily retire at the conclusion of the ensuing Annual General Meeting.

The Board of Directors based on the recommendations of the Audit and Risk Management Committee has recommended the appointment of M/s Ashwani & Associates (Firm Registration No: 000497N) Chartered Accountants, Ludhiana as Statutory Auditors of the company in place of M/s SCV & Co LLP., Chartered Accountants, New Delhi for a term of five consecutive years, from the conclusion of ensuing 31st Annual General Meeting until the conclusion of the 36th Annual General Meeting of the company for the approval of shareholders of the company in the ensuing 31st Annual General Meeting of the company.

M/s Ashwani & Associates has confirmed its willingness and eligibility, to act as statutory auditors to conduct audit of the company’s financial statements from the financial year 2018-19.

Secretarial Audit

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors has appointed M/s B. K. Gupta & Associates, practicing company secretary for conducting secretarial audit of the company for the financial year 2017-18. The Secretarial Audit Report is annexed hereto as Annexure II and forms part of the Report.

The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.

Cost Auditors

Pursuant to the provisions of Section 139 of Companies Act, 2013, the Board of Directors has appointed M/s Ramanath Iyer & Co., Cost Accountants, New Delhi as Cost Auditor to conduct the audit of cost accounts of bulk drugs and chemicals maintained by the company, for the financial year 2018-19, subject to determination of their remuneration by members of the company thereto.

The Cost Audit Report for the year ended 31 March 2017 has been filed on 02 September 2017 with Ministry of Corporate Affairs, New Delhi.

Extract of Annual Return

The details forming part of the extract of the Annual Return in form MGT-9 is annexed herewith as Annexure III forming part of this report.

Industrial Relations

Industrial relations remained cordial and harmonious throughout the year under review.

Safety, Health and Environment

Safety is company’s top priority with regard to employment and it is encouraging safety measures at all levels of operations especially at the floor level. Regular training programmers are being conducted to bring in awareness about the importance of safety at work place.

Prevention of Sexual Harassment Policy

The company has in place a Prevention of Sexual Harassment policy in line with the requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. An Internal Complaints Committee has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy. During the year 2017-2018, no complaint related to sexual harassment was received by the company.

Vigil Mechanism

In pursuant to the provisions of Section 177(9) & (10) of the Companies Act, 2013, a Vigil Mechanism for directors and employees to report genuine concerns has been established. The Vigil Mechanism Policy has been uploaded on the website of the company at www.iolcp.com.

Particulars of managerial remuneration and related disclosures

Disclosures relating to remuneration and other details as required under Section 197(12) of the Companies Act,2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided in the Annual Report, which forms part of this report.

In terms of the provisions of Section 197(12) of the Companies Act, 2013 read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said rules are provided in the Annual Report, which forms part of this report.

Having regard to the provisions of the first proviso to Section 136(1) of the Companies Act, 2013 the Annual Report excluding the aforesaid information is being sent to the members of the company. The said information is available for inspection at the registered office of the company during working hours and any member interested in obtaining such information may write to the Company Secretary and the same will be furnished on request.

Corporate Social Responsibility Committee (CSR Committee)

The Board of Directors have constituted a CSR Committee comprising of Mr Varinder Gupta as Chairman and Dr ( Mrs) Sandhya Mehta, Mr Vijay Garg and Mr Vikas Gupta ,Directors as its members. The CSR Committee is to oversees the company’s CSR initiatives under the overall supervision and guidance of the Board of Directors.

The provisions of Section 135 of Companies Act, 2013 and the Rules made thereunder for CSR are applicable to the company for financial year commenced on 01 April 2018.

GENERAL

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:

1. Details relating to deposits covered under Chapter V of the Act.

2. Issue of equity shares with differential rights as to dividend, voting or otherwise.

3. Change in the nature of business of the company.

4. The company does not have any scheme of provision of money for the purchase of its own shares by employees or by trustees for the benefit of employees.

5. Neither the Managing Director nor the Whole-time Directors of the company receive any remuneration or commission from any of its subsidiaries.

6. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and company’s operations in future.

7. No fraud has been reported by the Auditors to the Audit Committee or the Board.

Acknowledgement

We are pleased to place on record our sincere gratitude and appreciation for assistance and co-operation received from the Union Government, Punjab Government, bankers, members, customers, vendors and business constituents.

We also place on record our sincere appreciation of the contribution made by the employees at all levels. Our consistent growth is made possible by their devout, sincere and unstinted services.

For and on behalf of the Board

Sd/- Sd/-

Varinder Gupta Dr M A Zahir

Place : Ludhiana Managing Director Chairman

Dated : 11 August 2018 DIN -00044068 DIN-00002973

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Mar 31, 2016

Dear Members

The Directors are pleased to present the Twenty-ninth Annual Report and Audited Accounts for the financial year ended 31 March 2016.

Financial Results

Financial results of the Company for the financial year under report are given below:

(Rs. in crore)

Particulars	Year ended 31 March 2016	Year ended 31 March 2015
Gross sales and other income	645.44	427.02
Net sales and other income	581.64	386.04
Profit before interest & depreciation	52.60	12.58
Interest	61.47	59.11
Profit before depreciation	(8.86)	(46.53)
Depreciation	29.68	28.91
Profit before tax	(38.55)	(75.44)
Provision for tax (including deferred tax)	1.48	(8.79)
Profit after tax	(40.03)	(66.65)
Balance carried to the Balance Sheet	(59.96)	(19.93)

Performance Review

Net Revenue and other income of the Company went up by 51% to Rs. 581.64 crore during the year under review in comparison to Rs. 386.04 crore reported in the previous year. The Company was able to reduce its losses to Rs. 40.03 crore during the year under review from Rs. 66.65 crore incurred during the previous year, mainly due to increase in sales of the Company and improved operational efficiency during the year.

The Company continues to maintain strategic focus on grabbing more share in the market. Further, the Company is striving for improvement in the product mix to increase the share of pharma business, capitalizing product level opportunities for which regulatory approvals have been received. Product rationalization, cost effectiveness throughout the organization would be the key growth drivers.

Cash Flow Statement

A Cash Flow Statement for the financial year 2015-16 is included in the annexed Statement of Accounts.

Dividend

The Board of Directors has not recommended any dividend due to inadequate profits during the year under review.

Share Capital

The paid up equity share capital of the Company has been increased from Rs. 47,65,55,020/- consisting of 4,76,55,502 equity shares of Rs. 10/each to Rs. 56,20,55,020/- consisting of 5,62,05,502 equity shares of Rs. 10/- each due to allotment of 85,50,000 equity share of face value of Rs. 10/- each on the conversion of share warrants during the year ended 31 March 2016.

Holding & Subsidiary Company

The Company has neither any holding company nor a subsidiary company.

Internal financial control and its adequacy

The details in respect of internal financial control and its adequacy are included in the Management Discussion & Analysis Report, which forms part of this Report.

Loan, guarantees or investment under Section 186 of the Companies Act, 2013

The particulars of loans, guarantees and investments have been disclosed in the financial statements.

Recognitions

Members would be happy to note the receipt of following recognitions by the Company during the year under review:

- “Certificates of Pharmaceuticals Products” (COPP) for manufacturing facilities of Ibuprofen IP/BP/USP/Ph.Eur./JP and Lamotrigine IP/BP/USP/Ph.Eur products in its exiting Multiple Purpose Plant conforming to the WHO guidelines from, Food & Drugs Administration, Punjab.

- Approval of US Food and Drug Administration (USFDA) in July 2015 to launch API business in the US Market.

- “Certificate of Good Manufacturing Practices Compliance of Manufacturer” from Authority for Health and Consumer Protection, Hamburg, Germany.

- Company has got renewal of “HALAL CERTIFICATE” from Halal Committee, Jamiat Ulama - E - Maharashtra for Ibuprofen, Iso Butyl Benezene, Ethyl Acetate and other products of the Company for the year 2016-2017.

- The Company has been awarded with CEP certification (Certificates of Suitability) dated 17 April 2015 for its product Metformin Hydrochloride by European Directorate for the Quality of Medicines & HealthCare (EDQM) authorities, Council of Europe, France. The certificate is valid for a period of five years from the date of issue.

- The Company has got ‘Two Star Export House “certificate on 24 June 2015.

Composition and Number of Meetings of the Board

The Board comprises of well qualified and experienced persons having expertise in their respective areas. The Board has appropriate combination of Executive and Independent Directors.

During the financial year 2015-16, the Board met 5 (five) times on 29 May 2015, 11 August 2015, 13 August 2015, 30 October 2015 and 30 January 2016.

Directors /Key Managerial Personnel

The Board on the recommendation of Nomination and Remuneration Committee has re-appointed Mr Varinder Gupta as Managing Director of the Company for a period of three years with effect from

01 September 2015. The members of the Company in its Annual General Meeting held on 29 September 2015 have approved his reappointment as Managing Director of the Company.

The Board on the recommendation of Nomination and Remuneration Committee has re-appointed Mr Vijay Kumar Garg as Joint Managing Director for a period of three years with effect from 02 March 2016 subject to the approval of the members.

The Board on the recommendation of Nomination and Remuneration Committee has re-appointed Mr Vijay Singla as Director (Works) for a period of three years with effect from 01 April 2016 subject to the approval of the members.

The Board on the recommendation of Nomination and Remuneration Committee has appointed Mr Vikas Gupta as an Additional and Executive Director for a period of five years with effect from 29 May

2015 and members of the Company in its Annual General Meeting held on 29 September 2015 has approved his appointment as Executive Director of the Company.

In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Mr Vijay Kumar Garg, Mr Vikas Gupta and Mr Vijay Singla will retire in the ensuing Annual General Meeting and being eligible has offered themselves for re-appointment.

During the current year, Mr Yogesh Goel and Mr Ravi Pratap Singh, independent directors resigned from directorship of the Company with effect from 14 May 2016 due to their pre-occupations. The Board places on record appreciation for the services rendered by them during their tenure as directors of the Company.

The Company has appointed Mr Pardeep Kumar Khanna as Chief Financial Officer (CFO) of the Company with effect from 13 August 2015 in place of Mr Rakesh Mahajan. The Company has enhanced the role of Mr Rakesh Mahajan with higher responsibilities.

Woman director

In terms of the provisions of Section 149 of the Companies Act, 2013 and Regulation 17 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Dr Sandhya Mehta has been serving as independent woman director on the Board of the Company since 22 August 2014. She is also a member of Audit and Risk Management Committee and Nomination and Remuneration Committee.

Board evaluation

The Board has carried out an annual evaluation of its own performance, Board Committees and Independent Directors pursuant to the provisions of the Companies Act, 2013 and the corporate governance requirements as prescribed by Securities and Exchange Board of India (“SEBI”) under Regulation 17 (10) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board has evaluated the performance of Independent Directors mainly on the basis of their constructive participation in the Board/ Committee proceedings, their ability to monitor the management performance, providing guidance in the key issue in the best interest of the Company and their commitment to the ethical and to fulfillment of fiduciary and other duties assigned by the various act, regulations and rules by the Government. The performance evaluation of the Chairman and the Non-Independent Directors was carried out by the Committee of Independent Directors.

Nomination and Remuneration Policy

The Nomination and Remuneration Policy on directors’ appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other matters, as required under sub section (3) of Section 178 of the Companies Act, 2013 is available on our website www.iolcp.com. There has been no change in the policy since the last fiscal year.

Directors’ Responsibility Statement

Pursuant to the provisions of Section 134(5) of the Companies Act, 2013 the Directors of your Company confirm that:

a) in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures.

b) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period.

c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

d) they have prepared the annual accounts on a going concern basis.

e) they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and operating effectively; and

f) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Declaration by Independent Directors

The Company has received necessary declaration from each independent director under Section 149(7) of the Companies Act, 2013 that he/she meets the criteria of independence laid down in Section 149(6) of the Companies Act, 2013 and Regulation 16 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Corporate Governance

The Company has in place a system of Corporate Governance. A separate report on Corporate Governance along with Auditors’ Certificate regarding compliance of conditions of corporate governance under Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is annexed to this Annual Report.

Management Discussion and Analysis Report

Management Discussion and Analysis Report is given separately in this Annual Report.

Audit and Risk Management Committee

The Composition and role of the Committee has been provided in the Corporate Governance Report annexed with the report.

Risk management

The Board has formed Audit and Risk Management Committee inter alia to frame, implement and monitor the risk management plan for the Company. The Committee is responsible for reviewing the risk management plan and ensuring its effectiveness. It has been covered in the Management Discussion and Analysis Report, which forms part of this report.

Related Party Transactions

All Related Party Transactions that were entered into during the financial year were on arm’s length and were in the ordinary course of business. During the year, the Company had not entered into any contract / arrangement / transaction with related parties which could be considered material in accordance with the provisions of Policy on materiality of and dealing with Related Party Transactions. The disclosures of related party transactions are provided in notes to financial statements.

The Company has formulated a Policy on materiality of and dealing with Related Party Transactions. The policy is available on the Company’s website www.iolcp.com.

Fixed Deposits

The Company has not accepted any fixed deposits from the public/ members during the year under review.

Investor Services

The Company is committed to provide its best services to the shareholders/ investors. M/s Alankit Assignments Limited, New Delhi is working as Registrars and Share Transfer Agents (RTA) of the Company for transfer, dematerialization of shares and other investor related services. No correspondence /enquiry from any shareholder/ investor is pending with the Company for reply.

Listing of Shares

The equity shares of the Company continued to be listed and traded on National Stock Exchange of India Limited (Script code; IOLCP) and BSE Limited (Script code; 524164). The Company has made all compliances of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including payment of annual listing fee.

Auditors

Pursuant to the provisions of Section 139 of the Companies Act, 2013 and the Rules framed there under, M/s S C Vasudeva & Co., Chartered Accountants, New Delhi were appointed as statutory auditors of the Company from the conclusion of the twenty seventh Annual General Meeting of the Company held on 30 September 2014 till the conclusion of the thirty first Annual General Meeting to be held in the year 2018, subject to ratification of their appointment at every Annual General Meeting of the Company.

In terms of aforesaid provisions, the appointment of auditors’ is placed for rectification by the members.

Statutory Auditors’ Report

Auditors’ Report on the accounts is self-explanatory and does not contain any qualifications, reservations or adverse remarks.

Secretarial Audit

Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors has appointed M/s B. K. Gupta & Associates, practicing Company Secretaries for conducting secretarial audit of the Company for the financial year 2015-2016. The Secretarial Audit Report is annexed hereto as Annexure I and forms part of the report.

The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.

Cost Auditors

Pursuant to the provisions of Section 139 of Companies Act, 2013, the Company has appointed M/s Ramanath Iyer & Co., Cost Accountants, New Delhi as Cost Auditor to conduct the audit of cost accounts of bulk drugs and chemicals maintained by the Company, for the financial year 2016-17, subject to determination of their remuneration by members of the Company thereto.

The Cost Audit Report for the year ended 31 March 2015 has been filed on 16 September 2015 with Ministry of Corporate Affairs, New Delhi.

Energy Conservation / Technology Absorption and Foreign Exchange Earnings and Outgo

Energy conservation continues to be an area of major emphasis in the Company. A statement giving details of conservation of energy, technology absorption, foreign exchange earnings and outgo, in accordance with Section 134 of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is annexed hereto as Annexure II and forms part of the Report.

Extract of Annual Return

The details forming part of the extract of the Annual Return in form MGT 9 is annexed herewith as Annexure III forming part of the Report.

Particulars of remuneration and related disclosures

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided in the Annexure IV forming part of the Report.

The statement showing the name and other detail of the top ten employees in terms of remuneration drawn and every employee employed throughout the financial year was in receipt of remuneration of Rs. 1.02 crore or more, or posted for part of financial year and in receipt of remuneration of Rs. 8.50 lakh or more a month, as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(2), 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided in the Annexure V forming part of the Report.

Industrial Relations

Industrial relations remained cordial and harmonious throughout the year under review.

Safety, Health and Environment

Safety is Company’s top priority with regard to employment and it is encouraging safety measures at all levels of operations especially at the floor level. Regular training programmers are being conducted to bring in awareness about the importance of safety at work place.

Prevention of Sexual Harassment Policy

The Company has in place a Prevention of Sexual Harassment policy in line with the requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. An Internal Complaints Committee has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy. During the year 2015-2016, no complaint related to sexual harassment was received by the Company.

Vigil Mechanism

In pursuant to the provisions of Section 177(9) & (10) of the Companies Act, 2013, a Vigil Mechanism for directors and employees to report genuine concerns has been established. The Vigil Mechanism Policy has been uploaded on the website of the Company at www.iolcp.com.

Acknowledgement

We are pleased to place on record our sincere gratitude and appreciation for assistance and co-operation received from the Union Government, Punjab Government, bankers, members, customers, vendors and business constituents.

We also place on record our sincere appreciation for contribution made by the employees at all levels. Our consistent growth is made possible by their devout, sincere and unstinted services.

For and on behalf of the Board

Sd/- Sd/-

Place : Ludhiana Varinder Gupta Dr M A Zahir

Dated : 08 August 2016 Managing Director Chairman

DIN: 00044068 DIN: 00002973

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Mar 31, 2015

Dear Members

The Board is pleased to present the Twenty-Eighth Annual Report and Audited Accounts for the financial year ended 31 March 2015.

Financial Results

Financial results of the Company for the financial year under report are given below:

(Rs. in crore)

Particulars Year ended Year ended 31 March 2015 31 March 2014

Gross sales and other income 427.02 626.04

Net sales and other income 386.04 564.81

Profit before interest & 12.58 97.06

depreciation

Interest 59.11 60.34

Profit before depreciation (46.53) 36.72

Depreciation 28.91 31.63

Profit before tax (75.44) 5.08

Provision for tax (including (8.79) 1.78 deferred tax)

Profit after tax (66.65) 3.30

Balance carried to the Balance Sheet

Performance review

Net revenue and other income for the year ended 31 March 2015 was at Rs. 386.04 crore against Rs. 564.81 crore during the previous year representing decrease of 31.65 % over the previous year.

Loss before tax for the year ended 31 March 2015 was at Rs. 75.44 crore against profit before tax Rs. 5.08 crore for the year ended 31 March 2014.

Loss is mainly due to decrease in gross sales and other income which decreased from Rs. 626.04 crore to Rs. 427.02 crore during the year under review.

Overall performance of the Company lower than that of previous year due to mis-match in input and output prices in chemical business and Company was not able to pass on the increased price of raw materials to its customers because of subdued sentiments in overall economy.

Now Company continues to maintain strategic focus on grabbing more share in market, improvement in the product mix so as to increase the share of pharma business, capitalizing product level opportunities for which regulatory approvals have been received, product rationalization, cost effectiveness throughout the organization.

Cash Flow statement

A Cash Flow Statement for the financial year 2014-15 is included in the annexed Statement of Accounts.

Dividend

The Board has not recommended any dividend due to inadequate profits during the year under review.

Share Capital

The paid up equity share capital of the Company has been increased from Rs. 28,81,51,640/- consisting of 2,88,15,164 equity shares of Rs. 10/- each to Rs. 47,65,55,020/- consisting of 4,76,55,502 equity shares of Rs. 10/- each due to allotment of 1,88,40,338 equity share of face value of Rs. 10/- each on the conversion of Preference Shares, Foreign Currency

Convertible Bonds and Share Warrants and allotment on preferential basis during the year ended 31 March 2015.

During the current year, the Company has allotted 33,00,000 equity share of face value of Rs. 10/- each on the conversion of Share Warrants resulting in total equity paid up capital of Rs. 50,95,55,020/- consisting of 5,09,55,502 equity shares of face value of Rs. 10/- each and still 52,50,000 Share Warrants are outstanding for conversion.

DEBT RESTRUCTURING

The Joint Lender Forum (JLF) has sanctioned the comprehensive restructuring of all debts of the Company with cut-off date as 01 September 2014. The restructuring of facilities included restructuring of repayment schedule, interest funding, reduction in interest rates, sanction of working capital term loans.

The Company is complying the provisions of debt restructuring approved by Joint Lender Forum (JLF) .There is no default in repayment of debts and interest thereon.

Holding & subsidiary Company

The Company has neither any holding company nor a subsidiary company.

Internal financial control systems and their adequacy

The details in respect of internal financial control and their adequacy are included in the Management Discussion & Analysis Report, which forms part of this report.

Loan, guarantees or investment under section 186 of the Companies Act, 2013

The particulars of loans, guarantees and investments have been disclosed in the financial statements.

Awards

The Company has been awarded with "2nd prize in National Energy Conservation Award" by the Ministry of Power, Government of India in chemical sector. The Company has been awarded the prize consecutively for nine years by the Ministry of Power, Government of India.

RECOGNITIONS

Following recognitions were received by the Company during the year under review:

o Approval of US Food and Drug Administration (USFDA) in July 2015 to launch API business in US Market o Company has got "Two Star Export House" certificate from Joint Director General of Foreign Trade on 24 June 2015. o Company has got renewal of "HALAL CERTIFICATE" from Halal Committee, Jamiat Ulama - E - Maharashtra for Ibuprofen, Iso Butyl Benezene, Ethyl Acetate and other products of the Company for the year 2015-2016.

o The Company has been awarded with CEP certification (Certificates of Suitability) dated 17 April 2015 for its product Metformin Hydrochloride by European Directorate for the Quality of Medicines & HealthCare (EDQM) authorities, Council of Europe, France. The certificate is valid for a period of five years from the date of issue. Now, the Company is able to sell Metformin Hydrochloride in Europe resulting into increase in higher value added export turnover and margin.

The Company has already holding valid CEP certification (Certificates of Suitability) for its products Ibuprofen & Lamotrigine from European Directorate for the Quality of Medicines & HealthCare (EDQM) authorities, Council of Europe, France and selling these products in Europe.

Credit Rating

The Credit Analysis & Research Ltd (CARE) has rated Company as "CARE BB-" (pronounced " Double B Minus") for Long Term Facilities and "CARE A4" (pronounced "A Four") for Short Term Facilities.

Composition and Number of Meetings of the Board

The Board comprises of well qualified and experienced persons having expertise in their respective areas. It has appropriate combination of Executive, Non Executive and Independent Directors.

During the financial year 2014-15, the Board met 9 (nine) times on 21 May 2014, 30 May 2014, 20 June 2014, 14 August 2014, 22 August 2014, 29 October 2014, 28 November 2014, 31 December 2014 and 13 February 2015.

Directors /Key Managerial Personnel

In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Mr Vijay Singla is liable for retire by rotation at the ensuing Annual General Meeting and being eligible has offered himself for re-appointment. The Board has recommended the re-election to the members.

Mr Vikas Gupta appointed as an Additional Director and Executive Director of the Company with effect from 29 May 2015 on the recommendation of Nomination and Remuneration Committee and shall hold office upto the date of ensuing Annual General Meeting. He is BSc (Hons.) in Business Management from Kings College London. The Company has received requisite notice from a member proposing his name for appointment as director of the Company. The Board recommends his appointment as Executive Director for a term of five years.

The tenure of Mr Varinder Gupta as Managing Director of the Company is expiring on 31 August 2015. He is re-appointed as Managing Director of the Company for the period of 3 years from 01 September 2015 to 31 August 2018 on the recommendation of Nomination and Remuneration Committee held on 29 May 2015. The Board recommends his re-appointment to the mambers.

Mr Pardeep Khanna was appointed as Chief Financial Officer(CFO) of the Company w.e.f. 13 August 2015 in place of Mr Rakesh Mahajan. The Company is enhanced the role of Mr Rakesh Mahajan with higher responsibilities.

Woman Director

In terms of the provisions of Section 149 of the Companies Act, 2013 and Clause 49 of the Listing Agreement, the Company has appointed Dr Sandhya Mehta as Independent Director on the Board since 22 August 2014, who is presently the member of Audit and Risk Management Committee and Nomination and Remuneration Committee.

Board Evaluation

The Board has carried out an annual evaluation of its own performance, Board Committees and Independent Directors pursuant to the provisions of the Companies Act, 2013 and the corporate governance requirements as prescribed by Securities and Exchange Board of India ("SEBI") under Clause 49 of the Listing Agreements ("Clause 49"). The Board has evaluated the performance of Independent Directors mainly on the basis of their constructive participation in the Board/ Committee proceedings, their ability to monitor the management performance, providing guidance in the key issue in the best interest of the Company and their commitment to the ethical and to fulfillment of fiduciary and other duties assigned by the various act, regulation and rules by the Government. The performance evaluation of the Chairman and the Non-Independent Directors was carried out by the Committee of Independent Directors.

Nomination and Remuneration Policy

The Nomination and Remuneration Committee has formulated the Nomination and Remuneration Policy on directors' appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director in compliance with Section 178 of the Companies Act, 2013 read along with the applicable rules thereto and Clause 49 of the Listing Agreement. The Nomination and Remuneration Policy is annexed hereto as Annexure I and forms part of the report.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the provisions of Section 134(5) of the Companies Act, 2013 the Directors of your Company confirm that:

a) in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures.

b) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period.

c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

d) they have prepared the annual accounts on a going concern basis.

e) they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and operating effectively; and

f) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Declaration by Independent Directors

Every Independent Director, at the first meeting of the Board in which he participates as a Director and thereafter at the first meeting of the Board in every financial year, gives a declaration that he meets the criteria of independence laid down in Section 149(6) of the Companies Act, 2013 and Clause 49 of the Listing Agreement.

Corporate Governance

The Company has in place a system of corporate governance. A separate report on corporate governance alongwith Auditors' Certificate regarding compliance with Clause 49 of the Listing Agreement is annexed to this Annual Report.

Management Discussion and Analysis Report

Management Discussion and Analysis Report is given separately in this Annual Report.

Audit and Risk Management Committee

The composition and role of the Committee has been provided in the Corporate Governance Report annexed with the report.

Risk management

The Board has formed a Audit and Risk Management Committee inter alia to frame, implement and monitor the risk management plan for the Company. The Committee is responsible for reviewing the risk management plan and ensuring its effectiveness. The development and implementation of risk management policy has been covered in the Management Discussion and Analysis Report, which forms part of this report.

Related Party Transactions

All related party transactions that were entered into during the financial year were on arm's length and were in the ordinary course of business. All related party transactions were placed before the Audit and Risk Management Committee of the Board for their approval. The Committee has granted omnibus approval for related party transactions as per the provisions and restrictions contained in the Listing Agreement.

The Company has formulated a policy on materiality of related party transactions and also on dealing with related party transactions. The policy is available on the Company's website www.iolcp.com.

Fixed Deposits

The Company has not accepted any fixed deposits from the public/ members during the year under review.

Investor Services

The Company is committed to provide the best services to the shareholders/ investors. M/s Alankit Assignments Limited, New Delhi is working as Registrars and Share Transfer Agents (RTA) of the Company for transfer, dematerialization of shares and other investor related services. No correspondence /enquiry from any shareholder/ investor is pending with the Company for reply.

Listing of shares

The equity shares of the Company continued to be listed and traded on National Stock Exchange of India Limited (Script code; IOLCP) and BSE Limited (Script code; 524164). The Company has made all compliances of the Listing Agreements including payment of annual listing fee.

Change of Industrial Classification

Recently NSE and BSE has changed the industrial classification of the Company from specialty chemicals to pharmaceuticals.

Auditors

Pursuant to the provisions of Section 139 of the Companies Act, 2013 and the Rules framed thereunder, M/s S C Vasudeva & Co., Chartered Accountants, New Delhi were appointed as statutory auditors of the Company from the conclusion of the twenty seventh Annual General Meeting of the Company held on 30 September 2014 till the conclusion of the thirty first Annual General Meeting to be held in the year 2018, subject to ratification of their appointment at every Annual General Meeting of the Company.

In terms of aforesaid provisions, the appointment of auditors' is placed for rectification by the members. statutory auditors' Report

Auditors' Report on the accounts is self-explanatory and does not contain any qualifications, reservations or adverse remarks.

SECRETARIAL AUDIT

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board has appointed M/s B. K. Gupta & Associates, Practicing Company Secretaries for conducting secretarial audit of the Company for the financial year 2014-2015. The Secretarial Audit Report is annexed hereto as Annexure II and forms part of the report.

The Secretarial Audit report does not contain any qualification, reservation or adverse remark.

Cost Auditors

Pursuant to the provisions of Section 139 of Companies Act, 2013, Company has appointed M/s Ramanath Iyer & Co., Cost Accountants, New Delhi as Cost Auditor to conduct the audit of cost accounts of bulk drugs and chemicals maintained by the Company, for the financial year 2015-16, subject to determination of their remuneration by members of the Company thereto.

The Cost Audit Report for the year ended 31 March 2014 has been filed on 03 September 2014 with Ministry of Corporate Affairs, New Delhi. Energy Conservation / Technology Absorption and Foreign Exchange Earnings and Outgo

Energy conservation continues to be an area of major emphasis in the Company. A statement giving details of conservation of energy, technology absorption, foreign exchange earnings and outgo, in accordance with Section 134 of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is annexed hereto as Annexure III and forms part of the report.

The Company has awarded with "2nd Prize in National Energy Conservation Award" in consecutively for nine years by Ministry of Power, Government of India for its continued efforts towards new technology implementation so as to conserve the energy resources of the country. Extract of Annual Return

The details forming part of the extract of the Annual Return in Form MGT 9 is annexed herewith as Annexure IV forming part of the Annual Report. Particulars of remuneration and related disclosures

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided in the Annexure V forming part of the Report.

In terms of the provisions of Section 197(12) of the Companies Act, 2013 read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, there has no employee who was in receipt of remuneration equal to or exceeding Rs. 60 lacs per annum or Rs. 5 lacs per month if employed for part of the year.

Industrial Relations

Industrial relations remained cordial and harmonious throughout the year under review.

Safety, Health and Environment

Safety is Company's top priority with regard to employment and it is encouraging safety measures at all levels of operations especially at the floor level. Regular training programmers are being conducted to bring in awareness about the importance of safety at work place. Bi-monthly medical camps are also being organized for welfare of the members in addition to regular medical facilities provided to them.

Prevention of sexual Harassment Policy

The Company has in place a Prevention of Sexual Harassment policy in line with the requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. An Internal Complaints Committee has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy. During the year 2014-2015, no complaints was received by the Company related to sexual harassment.

Vigil Mechanism

In pursuant to the provisions of Section 177(9) & (10) of the Companies Act, 2013, a Vigil Mechanism for directors and employees to report genuine concerns has been established. The Vigil Mechanism Policy has been uploaded on the website of the Company at www.iolcp.com.

Acknowledgement

We are pleased to place on record our sincere gratitude and appreciation for assistance and co-operation received from the Union Government, Punjab Government, Company's Bankers, Members, Customers and Business Constituents.

We also place on record our sincere appreciation for contribution made by the employees at all levels. Our consistent growth is made possible by their devout, sincere and unstinted services.

For and on behalf of the Board

Sd/- Sd/-

Place : Ludhiana Varinder Gupta Dr M A Zahir

Dated : 13 August 2015 Managing Director Chairman

DIN: 00044068 DIN: 00002973

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Mar 31, 2014

Dear Members

The Board of Directors of the Company has the pleasure of presenting the Twenty-seventh Annual Report of IOL Chemicals and Pharmaceuticals Limited together with Audited Statements of Accounts for the fi nancial year ended 31 March 2014.

1. Financial Results

Financial results of the Company for the fi nancial year under report vis-a-vis previous year are as under:

(X in crore)

Particulars Year ended Year ended 31 March 2014 31 March 2013

Gross sales and other 626.04 536.43

Income

Net sales and other income 564.81 484.04

Profi t before interest & 97.06 91.57

depreciation

Interest 60.34 57.23

Profi t before depreciation 36.72 34.33

Depreciation 31.63 31.37

Profi t before tax 5.08 2.96

Provision for tax (including 1.78 1.37 deferred tax)

Profi t after tax 3.30 1.59

Balance carried to the 49.33 46.03

Balance Sheet

2. Performance Review

The Company, during fi nancial year 2013-14, has clocked a growth of 16.70% in gross revenue, which has grown to X 626.04 crore from the gross revenue of X 536.43 crore in the previous year.The profi t before depreciation interest and tax (PBDIT) to net revenue has decreased from 18.92% to 17.18%. The Company has earned profi t before tax (PBT) of X 5.08 crore during the year under review against X 2.96 crore during the previous year. Higher PBT is mainly due to increase in sale of the Company and improved in operation effi ciency during the year.

The Company continues to maintain strategic focus on grabbing more share in market, improvement in the product mix, capitalizing product level opportunities for which regulatory approvals have been received, product rationalization, cost effectiveness throughout the organization.

3. Cash Flow Statement

A Cash Flow Statement for the fi nancial year 2013-14 is included in the annexed Statement of Accounts.

4. Dividend

The Board of Directors has not recommended any dividend keeping in view the ongoing expansion, modifi cation and other future investment possibilities and decided to plough back profit.

5. Capital Structure Authorised Capital

The Company has enhanced the authorized share capital from X 54 crore to X 80 crore divided into 2,20,00,000 Preference Share of X 10/- each and 5,80,00,000 Equity Shares of X 10/- each on 20 June 2014

Paid -up Share Capital

The paid up equity share capital of the Company has been increased from Rs. 28,81,51,640/- to Rs. 39,31,15,910/- due to allotment of 1,04,96,427 equity share on the conversion of preference share and allotment on preferential basis in following trenches:

71,46,427 Equity Share of face value of Rs. 10/- each at a premium of Rs. 18/- per share on 21 June 2014 against redemption of 1,50,10,000 1% Non Cumulative Redeemable Preference Shares of Rs. 10/- each to promoter group Companies and 50,00,000 7% Non Cumulative Redeemable Preference Shares of Rs. 10/- each to a non-promoter;

22,00,000 equity share of face value of Rs. 10/- each at premium of Rs. 18/-each on preferential basis on 21 June 2014 to non- promoters;

11,50,000 equity share of face value of Rs. 10/- each at premium of Rs. 18/- each on preferential basis on 4 July 2014 to non promoters;

In addition of above, the Company has allotted 1,10,00,000 warrants with option to subscribe to a equity share of face vale of Rs. 10/- at the premium of Rs. 18/- for each warrant, within period of 18 month from the date of allotment on preferential basis to non- promoters on 04 July 2014.

6. Adjustment of Conversion Price of FCCBs

On the issue of aforesaid equity shares and warrants, the pursuant to para 6.3.12 of the Terms and Conditions relating to adjustment of conversion price in connection with the Zero Coupon Unsecured Foreign Currency Convertible Bonds (FCCB) issued by the Company in May 2010, the conversion price of said Bonds stands adjusted from date of allotment that is from 04 July 2014 from Rs. 78/- to Rs. 77/- per equity share.

7. Credit Rating

The Credit Analysis & Research Ltd (CARE) has rated Company as "CARE BB-" (pronounced "Double B Minus") for Long Term Facilities and "CARE A4" (pronounced "A Four") for Short Term Facilities.

8. Holding & Subsidiary Company

The Company has neither any holding company nor a subsidiary company.

9. Awards

Members would be happy to note the receipt of following Awards by the Company during the year under review:

The Company has been awarded with "1st prize in National Energy Conservation Award" in Drugs and Pharmaceuticals sector and with "2nd prize in National Energy Conservation Award" in Chemicals sector by the Ministry of Power, Government of India. The Company has been awarded the prize consecutively for eight years by the Government of India.

10. Recognitions

Following recognitions were received by the Company during the year under review:

- Certifi cate of Good Manufacturing Practices Compliance of Manufacturer" from Authority for Health and Consumer Protection, Hamburg, Germany

11. Directors

Pursuant to the provisions of Section 161(1) of the Companies Act, 2013 and the Articles of Association of the Company, Dr Sandhya Mehta, was appointed as an Additional Director designated as an

Independent Director w.e.f. 22 August 2014 on the recommendation of Nomination and Remuneration Committee and she shall hold offi ce up to the date of the ensuing Annual General Meeting. She has vast 22 experience to her credit. She has published seven books in addition to numerous papers published in reputed National & International Journals. She holds master degree in Business Management and Ph.D in Management Studies. The Company has received requisite notice in writing from a member proposing her name for appointment as an Independent Director. The Board recommends her appointment as Independent Directors for a term up to fi ve consecutive fi ve years.

As per the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Mr Vijay Singla and Mr Vijay Garg will retire in the ensuing Annual General Meeting and being eligible offers themselves for re-appointment. The Board recommends their re-appointment.

As per the provisions of the Companies Act, 2013, Independent Director are eligible to hold offi ce for a term maximum up to consecutive fi ve years and are eligible for re-appointment for the second term on passing a special resolution by the company. During their tenure, they shall not be retire by rotation.

In terms of the Articles of Association of the Company, Dr M A Zahir, Mr Chandra Mohan, Mr Yogesh Goel and Mr Ravi Pratap Singh, non-executive ( independent ) directors so appointed, will retire in the ensuing Annual General Meeting.

The Company has received from all the Independent Directors consents for their appointment and declarations confi rming that they meet the criteria of independence as envisaged under the Companies Act, 2013 and the Listing Agreement. The Company has received requisite notices in writing from members proposing their names for appointment as Independent Directors. The Board recommends their appointment as Independent Directors for a term up to fi ve consecutive years.

12. Corporate Governance

The Company has in place a system of Corporate Governance. A separate report on Corporate Governance alongwith Auditors'' Certifi cate regarding compliance with Clause 49 of the Listing Agreement is annexed to this Annual Report.

13. Management Discussion and Analysis Report

Management Discussion and Analysis Report is given separately in this Annual Report.

14. Safety, Health and Environment

Safety is Company''s top priority with regard to employment and it is encouraging safety measures at all levels of operations especially at the fl oor level. Regular training programmers are being conducted to bring in awareness about the importance of safety at work place. Bi-monthly medical camps are also being organized for welfare of the members in addition to regular medical facilities provided to them.

15. Fixed Deposits

The Company has not accepted any fi xed deposits from the public/ members during the year under review.

16. Investor Services

The Company is committed to provide the best services to the shareholders/ investors. M/s Alankit Assignments Limited, New Delhi are working as Registrars and Share Transfer Agents (RTA) of the Company for transfer, dematerialization of shares and other

investor related services.

No correspondence /enquiry from any shareholder/investor are pending with the Company for reply.

17. Listing of equity shares

The equity shares of the Company continued to be listed and traded on National Stock Exchange of India Limited (Script code; IOLCP) and BSE Limited (Script code; 524164). The Company has made all compliances of the Listing Agreements including payment of annual listing fee.

18. Statutory Auditors'' Report

Auditors'' Report on the accounts is self-explanatory and no comments are required.

19. Statutory Auditors

In terms of the provisions of the Companies Act, 2013, M/s S C Vasudeva and Co., Chartered Accountants, New Delhi (Firm Reg. No. 00235N) Statutory Auditors of the Company, will complete six consecutive years at the conclusion of the ensuing Annual General Meeting. They can be further appointed as Statutory Auditors for another term of four consecutive years i.e, till the conclusion of Annual General Meeting to be held in the year 2018. The Company has obtained necessary certifi cate under Section 141 of the Companies Act, 2013 from the auditors conveying their eligibility for the above appointment. The Audit & Risk Management Committee and the Board reviewed their eligibility criteria, as laid down under Section 141 of the Companies Act, 2013 and recommended their appointment as auditors for the above said period.

20. Cost Auditors

The Company has appointed M/s Ramanath Iyer & Co., Cost Accountants, New Delhi as Cost Auditors to conduct the audit of Cost Accounts of chemicals and bulk drugs maintained by the Company, for the fi nancial year 2013-14, subject to the approval of Central Govt. thereto. As mandated by Circular No.15/2011 dated 11th April, 2011 issued by the Ministry of Corporate Affairs, Govt. of India, full particulars of Cost Auditors are given herein below:-

Name M/s Ramanath Iyer & Co.Cost Accountants ICWA Membership No. 13848

Address No. 808, Pearls Business Park, Netaji Subhash Place, Delhi – 110034

Details of Cost Audit Report for the financial year ended 31 March 2013

(a) Due date of fi ling 30 September 2013

(b) Actual date of filing 06 September 2013

21. Industrial Relations

Industrial relations remained cordial and harmonious throughout the year under review.

22. Energy Conservation / Technology Absorption and Foreign Exchange Earnings and Outgo

Energy conservation continues to be an area of major emphasis in the Company. A statement giving details of conservation of energy, technology absorption, foreign exchange earnings and outgo, in accordance with Section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 is annexed hereto as Annexure I and forms part of the report.

The Company has been awarded with "1st prize in National Energy Conservation Award" in Drugs and Pharmaceuticals sector and with "2nd prize in National Energy Conservation Award" in Chemicals sector by the Ministry of Power, Government of India. The Company has been awarded the prize consecutively for eight years by the Government of India.

23. Information on personnel

Statement showing particulars of the employees as required by the provisions of Section 217(2A) of the Companies Act, 1956 is not given as no employee was in receipt of remuneration equal to or exceeding Rs. 60 lacs per annum or Rs. 5 lacs per month if employed for the part of the year.

24. Directors'' Responsibility Statement

Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, it is hereby confi rmed that:

1. in preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanations relating to material departures;

2. the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the fi nancial year and of the profi t of the Company for that period;

3. the directors had taken proper and suffi cient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

4. the directors had prepared the annual accounts on a going concern basis.

25. Acknowledgement

We are pleased to place on record our sincere gratitude and appreciation for assistance and co-operation received from the Union Government, Punjab Government, Company''s Bankers, Members, Customers and Business Constituents.

We also place on record our sincere appreciation for contribution made by the employees at all levels. Our consistent growth is made possible by their devout, sincere and unstained services.

For and on behalf of the Board

Sd/- Sd/- Place : Ludhiana Dr M A Zahir Varinder Gupta Dated : 22 August 2014 Chairman Managing Director DIN: 00002973 DIN: 00044068

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Mar 31, 2013

Dear Members

The Board of Directors of the Company has the pleasure of presenting the Twenty-sixth Annual Report of IOL Chemicals and Pharmaceuticals Limited together with Audited Statements of Accounts for the fnancial year ended 31 March 2013.

1. Financial Results

Financial results of the Company for the fnancial year under report vis-a-vis previous year are as under:

(Rs.in crore) Particulars Year ended Year ended 31 March 2013 31 March 2012

Gross sales and other 536.43 507.85

Income

Net sales and other income 484.04 473.02

Proft before interest & 91.57 70.94 depreciation

Interest 57.24 43.20

Proft before depreciation 34.33 27.74

Depreciation 31.37 23.94

Proft before tax 2.96 3.80

Provision for tax (including 1.37 (0.96) deferred tax)

Proft after tax 1.59 4.75

Balance carried to the 46.03 44.45

Balance Sheet

2. Performance Review

The Company, during FY 2012-13, has clocked a growth of 5.63% in Gross Revenue, which has grown to Rs. 536.43 crore from the gross revenue of Rs.507.85 crore in the previous year. Your Company has also improved in operational effciency this year and proft before depreciation interest and tax (PBDIT) to Net Revenue has increased from 14.99% to 18.92%. The Company has earned proft before tax (PBT) of Rs. 2.96 crore during the year under review against Rs. 3.80 crore during the previous year. Lower PBT is mainly due to increase in interest cost which increased from Rs. 43.20 crore to Rs. 57.24 crore during the year.

Your Company continues to maintain strategic focus on grabbing more share in market, improvement in the product mix, capitalizing product level opportunities for which regulatory approvals have been received, product rationalization, cost effectiveness throughout the organization.

3. Cash Flow Statement

A Cash Flow Statement for the fnancial year 2012-13 is included in the annexed Statement of Accounts.

4. Dividend

The Board of Directors has not recommended any dividend keeping in view the ongoing expansion, modifcation and other future investment possibilities and decided to plough back proft.

5. Credit Rating

The Credit Analysis & Research Ltd (CARE) has rated Company as "CARE BB-" (pronounced "Double B Minus") for long term facilities and "CARE A4" (pronounced "A Four") for short term facilities.

6. Holding & Subsidiary Company

Your Company has neither any holding company nor a subsidiary company.

7. Awards

Members would be happy to note the receipt of following Awards by the Company during the year under review:

The Company has been awarded with "2nd prize in National Energy Conservation Award" by the Ministry of Power, Government of India in chemical sector. The Company has been awarded the prize consecutively for seven years by the Ministry of Power, Government of India.

8. Recognitions

Following recognitions were received by the Company during the year under review:

- ANVISA Certifcate (Brazil) Ministry of Health Dated 12 June 2012

- EUGMP certifcation from "Freie und Hansestadt Hamburg", Germany Dated 21 February 2013 Company has also received "Trading House Certifcate" from Joint Director General of foreign trade on 03 May 2013

9. Directors

According to Article 146 of the Articles of Association of the Company and subject to the provisions of Section 255 of the Companies Act, 1956, all the directors other than Managing Director and Whole Time Directors of the Company shall retire from the offce. Accordingly, Dr M A Zahir, Mr Chandra Mohan, Mr Yogesh Goel and Mr Ravi Pratap Singh are liable to retire at the ensuing Annual General Meeting and, being eligible, have offered themselves for re-appointment. The Board has recommended the re-election of these directors to the members.

Mr Vijay Kumar Garg was appointed as Additional and Whole Time Director on the Board w.e.f. 02 March 2013 in terms of Article 133 of the Articles of Association of the Company and designated as Joint Managing Director of the Company. Pursuant to Section 260 of the Companies Act, 1956, he holds offce upto the date of ensuing Annual General Meeting. The Company has received a notice from a member under Section 257 of Companies Act,1956 for his appointment as Director of the Company.

Mr N K Pundir, resigned from the directorship of the Company w.e.f. 14 August 2012. The Board has placed on record their appreciation for the valuable services rendered by him during his tenure as director of the Company.

10. Corporate Governance

The Company has in place a system of Corporate Governance. A separate report on Corporate Governance alongwith Auditors'' Certifcate regarding compliance with Clause 49 of the Listing Agreement is annexed to this Annual Report.

11. Management Discussion and Analysis Report

Management Discussion and Analysis Report is given separately in this Annual Report.

12. Safety, Health and Environment

Safety is Company''s top priority with regard to employment and it is encouraging safety measures at all levels of operations especially at the foor level. Regular training programmers are being conducted to bring in awareness about the importance of safety at work place. Bi-monthly medical camps are also being organized for welfare of the members in addition to regular medical facilities provided to them.

13. Fixed Deposits

The Company has not accepted any fxed deposits from the public/ members during the year under review.

14. Investor Services

The Company is committed to provide the best services to the shareholders/ investors. M/s Alankit Assignments Limited, New Delhi are working as Registrars and Share Transfer Agents (RTA) of the Company for transfer, dematerialization of shares and other investor related services.

No correspondence /enquiry from any shareholder/investor are pending with the Company for reply.

15. Listing of equity shares

The equity shares of the Company continued to be listed and traded on National Stock Exchange Limited (Script code; IOLCP) and BSE Limited (Script code; 524164). The Company has made all compliances of the Listing Agreements including payment of annual listing fee.

16. Statutory Auditors'' Report

Auditors'' Report draw intention to note no. 36 to the fnancial statement, relating to remuneration paid/ provided in respect of Managing Director and Whole Time Director of the Company, in excess of the limit prescribed under Section 198 read with Schedule XIII to the Companies Act, 1956, which is subject to the approval of Central Government.

In this regard we wish to inform you that the Company has received approval of the Central Government vide its letter no. B61721627/1/2012-CL,VII dated 29 May 2013 to the appointment of Mr Varinder Gupta as Managing Director of the Company and the approval of the Central Government is awaited to the appointment of Mr Vijay Kumar Garg as Joint Managing Director of the Company .

17. Statutory Auditors

M/s S C Vasudeva and Co., Chartered Accountants, New Delhi (Firm Reg. No. 00235N) Statutory Auditors of the Company, retire at the conclusion of ensuing Annual General Meeting and being eligible, have offered themselves for re-appointment.

18. Cost Auditors

The Company has appointed M/s Ramanath Iyer & Co., Cost Accountants, New Delhi as Cost Auditor to conduct the audit of cost accounts of chemicals and bulk drugs maintained by the Company, for the fnancial year 2013-14, subject to the approval of Central Government thereto. As mandated by Circular No.15/2011 dated 11 April 2011 issued by the Ministry of Corporate Affairs, Govt. of India, full particulars of Cost Auditor are given herein below:- Name M/s Ramanath Iyer & Co., Cost

Accountants ICWA Membership No. 13848

Address No. 808, Pearls Business

Park, Netaji Subhash Place, Delhi – 110 034 Details of Cost Audit Report for the fnancial year ended 31 March 2012

(a) Due date of fling 28 February 2013

(b) Actual date of fling 9 January 2013

19. Industrial Relations

Industrial relations remained cordial and harmonious throughout the year under review.

20. Energy Conservation / Technology Absorption and Foreign Exchange Earnings and Outgo

Energy conservation continues to be an area of major emphasis in the Company. A statement giving details of conservation of energy, technology absorption, foreign exchange earnings and outgo, in accordance with Section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 is annexed hereto as Annexure I and forms part of the report.

The Company has been awarded with "2nd prize in National Energy Conservation Award" by Ministry of Power, Government of India in chemical sector. The Company has been awarded the prize consecutively for seven years by the Ministry of Power, Government of India.

21. Information on personnel

Statement showing particulars of the employees as required by the provisions of Section 217(2A) of the Companies Act, 1956 is not given as no employee was in receipt of remuneration equal to or exceeding Rs. 60 lacs per annum or Rs. 5 lacs per month if employed for the part of the year.

22. Directors'' Responsibility Statement

Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, it is hereby confrmed that:

1. in preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanations relating to material departures;

2. the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the fnancial year and of the proft of the Company for that period;

3. the directors had taken proper and suffcient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

4. the directors had prepared the annual accounts on a going concern basis.

23. Acknowledgement

We are pleased to place on record our sincere gratitude and appreciation for assistance and co-operation received from the Union Government, Punjab Government, Company''s Bankers, Members, Customers and Business Constituents.

We also place on record our sincere appreciation for contribution made by the employees at all levels. Our consistent growth is made possible by their devout, sincere and unstained services.

For and on behalf of the Board

Sd/- Sd/-

Place : Ludhiana Dr M A Zahir Varinder Gupta

Dated : 12 August 2013 Chairman Managing Director

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Mar 31, 2012

The Directors are pleased to present the Twenty-fifth Annual Report and Audited Accounts for the financial year ended 31 March 2012.

1. Financial Results

Financial results of the Company for the financial year under report are given below:

(in crore)

Particulars Year ended Year ended 31 March 2012 31 March 2011

Net sales and other income 473.02 391.30

Profit before interest & depreciation 70.94 69.60

Interest 43.20 36.80

Profit before depreciation 27.74 32.80

Depreciation 23.94 23.76

Profit before tax 3.80 9.04

Provision for tax (including deferred tax) (0.96) 2.86

Profit after tax 4.75 6.18

Balance carried to the Balance Sheet 44.45 52.37

2. Presentation of Financial Results

Notification dated 28 February 2011 issued by the Ministry of Corporate Affairs has stipulated a revised format for disclosure of financial statements under Schedule VI to the Companies Act, 1956. The financial results of the Company for the year ended 31 March 2012 are, therefore, disclosed as per the revised Schedule VI and the previous years' figures have been restated to align with the current year's presentation.

3. Performance Review

There was a healthy improvement in the overall performance of the Company in comparison to the previous year's performance. Net sales and other income of the Company has increased by 20.88% to Rs. 473.02 crore from Rs. 391.30 crore during the previous year. Profit before interest & depreciation has increased by 1.91% to Rs. 70.94 crore during the year under review against from Rs. 69.60 crore during the previous year. The Company has earned net profit after tax Rs. 4.75 crore during the year under review against Rs. 6.18 crore during the previous year.

4. Cash Flow Statement

A Cash Flow Statement for the financial year 2011-12 is included in the annexed Statement of Accounts.

5. Dividend

The Board of Directors has not recommended any dividend keeping in view the ongoing expansion, modification and other future investment possibilities and decided to plough back profit.

6. Merger

The Board for Industrial and Financial Reconstruction (BIFR) the competent authority under the Sick Industrial Companies (Special Provisions) Act, 1985 vide its order dated 15 March 2012 sanctioned merger of G Drugs and Pharmaceuticals Limited (GDPL) with the Company with appointed date of 1 April 2010. The merger become effective on 20 April 2012 with the filing of order with the Registrar of Companies. Consequently GDPL ceased to exit from that date. Pursuant to the aforesaid scheme, 4,34,500 equity shares of the Company were issued to the shareholders of GDPL on 2 May 2012 in swap ratio of 1:20 i.e. one fully paid equity share of Rs. 10/- each of the Company for every 20 equity shares of Rs. 10/- each of GDPL. With this issue, the paid-up equity share capital of the Company has increased from Rs. 25.72 crore consisting of 2,57,16,664 equity shares of face value of Rs. 10/- each to Rs. 26.15 crore consisting of 2,61,51,164 equity shares of face value of Rs. 10/- each. These shares are listed on BSE Limited (BSE) and the National Stock

Exchange of India Limited (NSE).

7. Change in Authorised share capital

Pursuant to merger of G Drugs and Pharmaceuticals Limited with the Company vide BIFR's order dated 15 March 2012 the Authorised share capital of the Company stands increased from Rs. 45 crore consisting of 4,00,00,000 equity shares of face value of Rs. 10/- each and 50,00,000 preference shares of Rs. 10/- each to Rs. 54 crore consisting of 4,90,00,000 equity shares of Rs. 10/- each and 50,00,000 preference shares of Rs. 10/- each.

8. Multi Product Plant and upgrading of R&D facilities

The project of capacity enhancement and multi product PPIs plant and other pharmaceutical intermediate products with a CAPEX of Rs. 130 crore has been completed and in process of stabilization. The Company has undertaken another project of multi product plant for manufacture active pharmaceutical ingredients and upgrading of R&D facilities involving a CAPEX of Rs. 58.41 crore. The aforesaid project is on schedule and likely to be completed during the current year.

9. Credit Rating

The Credit Analysis & Research Ltd (CARE) has rated Company as "CARE BBB" for Long Term Facilities which indicates moderate safety for timely servicing of debt obligations and as "CARE A2" for Short Term Facilities which indicates adequate capacity for timely payment of short term debt obligations.

10. Awards

Members would be happy to note the receipt of following Awards by their Company during the year under review:

Awarded with "2nd prize in National Energy Conservation Award" consecutively for the years 2005, 2006, 2007, 2008, 2009 & 2011 by Ministry of Power, Government of India in Chemical Sector and awarded with "1st prize in National Energy Conservation Award" 2010 in Drugs and Pharmaceutical Sector by Ministry of Power, Government of India.

11. Recognitions

Following recognitions were received by the Company during the year under review:

* OHSAS 18001:2007 for Occupational Health & Safety Management System

* Recognition for In house R & D unit by Department of Scientific & Industrial Research (DSIR), Ministry of Science & Technology, Government of India.

12. Directors

According to Article 146 of the Articles of Association of the Company, one third of the directors for time being liable to retire by rotation, shall retire from the office. Accordingly, Dr M A Zahir and Mr Chandra Mohan, are liable to retire by rotation at the ensuing Annual General Meeting and, being eligible, have offered themselves for re-appointment. The Board has recommended the re-election of these directors to the members.

Mr N K Pundir was appointed as Additional Director and Director (Commercial) on the Board w.e.f. 31 March 2012 in terms of Article 133 of the Articles of Association of the Company.

Mrs Dimple Gupta and Mr Kanwal Pushkarnath Pandita, Directors resigned from the directorship of the Company w.e.f 31 March 2012. Mr N K Pundir, Director (Commercial) resigned from the directorship of the Company w.e.f 14 August 2012. The Board has placed on record their appreciation for the valuable services rendered by them during their tenure as Director of the Company

13. Corporate Governance

The Company has in place a system of Corporate Governance. A separate report on Corporate Governance alongwith Auditors'Certificate regarding compliance with Clause 49 of the Listing Agreement is annexed to this Annual Report.

14. Management Discussion and Analysis Report Management Discussion and Analysis Report is given separately in this Annual Report.

15. Safety, Health and Environment

Safety is Company's top priority with regard to employment and it is encouraging safety measures at all levels of operations especially at the floor level. Regular training programmers are being conducted to bring in awareness about the importance of safety at work place. Bi-monthly medical camps are also being organized for welfare of the members in addition to regular medical facilities provided to them.

16. Fixed Deposits

The Company has not accepted any fixed deposits from the public/ members during the year under review.

17. Investor Services

The Company is committed to provide the best services to the shareholders/ investors. M/s Alankit Assignments Limited, New Delhi are working as Registrars and Share Transfer Agents (RTA) of the Company for transfer, dematerialization of shares and other investor related services. No correspondence /enquiry from any shareholder/ investor is pending with the Company for reply.

18. Listing of Shares

The equity shares of the Company continued to be listed and traded on National Stock Exchange Limited (Script code; IOLCP) and BSE Limited (Script code; 524164). The Company has made all compliances of the Listing Agreements including payment of annual listing fee.

19. Statutory Auditors' Report

Auditors' Report on the accounts is self-explanatory and no comments are required.

20. Statutory Auditors

M/s S. C. Vasudeva and Co., Chartered Accountants, New Delhi (Firm Reg. No. 00235N) Statutory Auditors of the Company, retire at the conclusion of ensuing Annual General Meeting and being eligible, have offered themselves for re- appointment.

21. Cost Auditors

The Company has appointed M/s Ramanath Iyer & Co., Cost Accountants, New Delhi as Cost Auditors to conduct the audit of cost Accounts of chemicals and bulk drugs maintained by the Company, for the financial year 2012-13, subject to the approval of Central Government thereto. As mandated by Circular No.15/2011 dated 11 April 2011 issued by the Ministry of Corporate Affairs, Government of India, full particulars of Cost Auditor are given herein below:-

Name M/s Ramanath Iyer & Co., Cost Accountants

ICWA Membership No. 13848

Address BL-4 (Paschmi), Shalimar Bagh, New Delhi - 110088

Details of Cost Audit Report for the financial year ended 31 March 2011

(a) Due date of filing 30 September 2011

(b) Actual date of filing 09 September 2011

22. Industrial Relations

Industrial relations remained cordial and harmonious throughout the year under review.

23. Energy Conservation / Technology Absorption and Foreign Exchange Earnings and Outgo Energy conservation continues to be an area of major emphasis in the Company. A statement giving details of conservation of energy, technology absorption, foreign exchange earnings and outgo, in accordance with Section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 is annexed hereto as Annexure I and forms part of the report.

The Company has Awarded with "2nd prize in National Energy Conservation Award" consecutively for the years 2005, 2006, 2007, 2008, 2009 & 2011 by Ministry of Power, Government of India in Chemical Sector. The Company has also Awarded with "1st prize in National Energy Conservation Award" for the year 2010 in Drugs & Pharmaceuticals Sector by Ministry of Power, Government of India.

24. Information on personnel

Statement showing particulars of the employees as required by the provisions of Section 217(2A) of the Companies Act, 1956 is not given as no employee was in receipt of remuneration equal to or exceeding Rs. 60 lacs per annum or Rs. 5 lacs per month if employed for the part of the year.

25. Directors' Responsibility Statement

Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, it is hereby confirmed that:

1. in preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanations relating to material departures;

2. the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;

3. the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

4. the directors had prepared the annual accounts on a going concern basis.

26. Acknowledgement

We are pleased to place on record our sincere gratitude and appreciation for assistance and co-operation received from the Union Government, Punjab Government, Company's Bankers, Members, Customers and Business Constituents.

We also place on record our sincere appreciation for contribution made by the employees at all levels. Our consistent growth is made possible by their devout, sincere and unstinted services.

For and on behalf of the Board

Sd/-

Place : Ludhiana Varinder Gupta

Dated : 14 August 2012 Chairman and Managing Director

---

Mar 31, 2011

Dear Members

The Directors are pleased to present the Twenty-forth Annual Report and Audited Accounts for the financial year ended 31 March 2011.

1. Financial Results

Financial results of the Company for the financial year under report are given below:

(Rs in crore)

Particulars Year ended Year ended 31 March 31 March 2011 2010

Net sales and other income 391.36 350.42

Profit before interest 69.60 39.54 & depreciation

Interest 36.80 14.87

Profit before depreciation 32.80 24.67

Depreciation 23.76 10.01

Profit before tax 9.04 14.66

Provision for tax 2.86 4.64 (including deferred tax)

Profit after tax 6.18 10.02

Balance carried to the 52.37 46.20 Balance Sheet

2. Performance Review

There was a healthy improvement in the overall performance of the Company in comparison to the previous year's performance. Net sales and other income of the Company has increased by 11.68% to Rs. 391.36 crore from Rs. 350.42 crore. Profit before interest & depreciation has increased by 76.02 % to Rs. 69.60 crore during the year under review against from Rs. 39.54 crore. The Company has earned net profit after tax Rs. 6.18 crore during the year under review against Rs. 10.02 crore due to the higher Interest and Depreciation.

3. Dividend

The Board of Directors have not recommended any dividend keeping in view the ongoing expansion, modification and other future investment possibilities and have decided to plough back profit.

4. Allotment of Equity Share and Warrants

During the year under review, paid up equity share capital of the Company has been increased from Rs. 22,71,66,640 to Rs. 25,71,66,640 due to allotment of 30,00,000 equity shares of Rs. 10 each on the exercise of option attached with the warrants in following trenches:

a) 15,00,000 equity shares at a premium of Rs. 68 per share on 25 August 2010 against exercise of option attached with warrants which were issued to non-promoters on preferential basis.

b) 15,00,000 equity shares at a premium of Rs. 46 per share on 25 August 2010 against exercise of option attached with warrants out of 30,00,000 warrants issued to promoters and their associates on preferential basis.

5. Issue of Foreign Currency Convertible Bonds ( FCCBs )

The Company has issued 70 Zero Coupon Unsecured Foreign Currency Convertible Bonds on 28 May 2010 due June 2015 (ISIN XS 0505067461) aggregating to USD 7 million to international investors to part finance capital expenditure programme of the Company. Each bond is convertible into equity shares of face value of Rs. 10 each of the Company at a conversion price of Rs. 78 per share subject to adjustment, if any, at any time on or after 28 May 2010 until the close of business on 28 May 2015, unless previously redeemed, converted or purchased and cancelled. The Company also has option to convert the bonds at any time from 28 November 2014 to 28 May 2015 at prevailing conversion price. Bonds which are not redeemed, converted or purchased and cancelled, are redeemable on 5 June 2015 at an amount equal to principal amount of the Bonds multiplied by 1.4124872.

These bonds have been listed on the Luxembourg Stock Exchange, Luxembourg.

6. Expansion project

The Company has undertaken capacity enhancement and diversification into more value-added pharmaceutical products involving a CAPEX of Rs. 130 crore.

Sr Product Unit Present Proposed No. capacities capacities

1. Proton Pumps Inhibitors (PPI's) TPA — 150

2. Multi Purpose Plant TPA — 2,400

3. Ethyl Acetate TPA 36,000 42,000

4. Acetic Anhydride TPA 18,000 30,000

5. Iso Butyl Benzene TPA 6,600 9,000

The aforesaid project is on schedule and are likely to be completed during the current year.

7. Credit Rating

The Credit Analysis & Research Ltd (CARE) has rated Company as "CARE BBB” for Long Term Facilities which indicates moderate safety for timely servicing of debt obligations and as "PR2” for Short Term Facilities which indicates adequate capacity for timely payment of short term debt obligations.

8. Awards

Members would be happy to note the receipt of following Awards by their Company during the year under review:

1. First Prize in National Energy Conservation Award 2010 in Drugs & Pharmaceuticals Sector by the Ministry of Power, Government of India (IOLCP awarded with this award in Chemical Sector consecutively for the Year 2005, 2006, 2007, 2008 and 2009).

2. First Prize in State Level Energy Conservation Award in Drugs and Pharmaceuticals Sector for the year 2010.

9. Recognitions

Following recognitions were received by the Company during the year under review:

1. Certificate of Registration from Department of Scientific & Industrial Research (DSIR) for In-house R&D unit(s) of the Company.

2. Certificate of suitability for ibuprofen from the European Directorate for Quality of Medicine & Healthcare (EDQM).

10. Directors

Dr (Mrs) H K Bal and Mr R K Thukral have resigned from the Board with effect from 21 May 2011 and 11 July 2011 respectively due to personal reasons. The Board places on record their appreciation for the valuable services rendered by them during their tenure as Director/ Executive Director of the Company.

Mr Kanwal Pushkarnath Pandita was appointed as Additional Director on the Board w.e.f. 16 August 2010 in terms of Article 133 of the Articles of Association of the Company. Pursuant to Section 260 of the Companies Act, 1956 he holds office upto the date of ensuing Annual General Meeting. The Company has received a notice from a member under Section 257 of Companies Act,1956 for his appointment as Director of the Company.

Mr Vijay Singla was appointed as Additional Director and Director (Works ) on the Board w.e.f. 11 July 2011 in terms of Article 133 of the Articles of Association of the Company. Pursuant to Section 260 of the Companies Act, 1956 he holds office upto the date of ensuing Annual General Meeting. The Company has received a notice from a member under Section 257 of Companies Act,1956 for his appointment as Director of the Company.

According to Article 146 of the Articles of Association of the Company, one third of the directors for time being liable to retire by rotation, shall retire from the office. Accordingly, Mr Ravi Pratap Singh and Mr Yogesh Goel, are liable to retire by rotation at the ensuing Annual General Meeting and, being eligible, have offered themselves for re-appointment.

A brief resume containing nature of expertise, details of directorship held in other companies, of the directors proposing appointment / re-appointment along with their shareholding in the Company as stipulated under Clause 49 of the Listing Agreement with the stock exchanges is given in the notice of ensuing Annual General Meeting.

11. Re-constitution of Committees

a. Audit and Risk Management Committee

The Board has re-constituted the committee consisting of Dr M A Zahir as a Chairman, Mr Ravi Pratap Singh and Mr Vijay Singla as members on 11 July 2011.

b. Investors' Grievance Committee

The Board has re-constituted the committee consisting of Mrs Dimple Gupta as a Chairman, Dr M A Zahir and Mr Vijay Singla as members on 11 July 2011.

12. Corporate Governance

The Company has in place a system of Corporate Governance. A separate report on Corporate Governance along with Auditors' Certificate regarding compliance with Clause 49 of the Listing Agreement is annexed to this Annual Report.

13. Management Discussion and Analysis Report

Management Discussion and Analysis Report is given separately in this Annual Report.

14. Safety, Health and Environment

Safety is the Company's top priority and it is encouraging safety measures at all levels of operations especially at the floor level. Regular training programmers are being conducted to bring in awareness about the importance of safety at work place. Bi- monthly medical camps are also being organized for welfare of the members in addition to regular medical facilities provided to them.

15. No Default

The Company has not made default in the payment of any statutory dues to government, interest and/or repayment of loans to any of the financial institutions / banks during the year under review.

16. Fixed Deposits

The Company has not accepted any fixed deposits from the public/ members during the year under review.

17. Investor Services

The Company is committed to provide the best services to the shareholders/ investors. M/s Alankit Assignments Limited, New Delhi are working as Registrars and Share Transfer Agents (RTA) of the Company for transfer, dematerialization of shares and other investor related services. No correspondence /enquiry from any shareholder/ investor is pending with the Company for reply.

18. Listing of Shares

During the year the Company got its equity shares listed on National Stock Exchange Limited (NSE) w.e.f. 8 November 2010. The equity shares of the Company continued to be listed and traded on National Stock Exchange Limited (Script code; IOLCP) and BSE Limited (Script code; 524164). The Company has made all compliances of the Listing Agreements including payment of annual listing fee.

19. Statutory Auditors' Report

Auditors' Report on the accounts is self-explanatory and no comments are required.

20. Statutory Auditors

M/s S C Vasudeva and Co., Chartered Accountants, New Delhi (Firm Reg. No. 00235N) Statutory Auditors of the Company, retire at the conclusion of ensuing Annual General Meeting and being eligible, have offered themselves for re- appointment.

21. Cost Auditors

The Central Government had directed that audit be carried out of the cost accounts maintained by the Company in respect of chemicals and bulk drugs by a qualified cost accountant. The Board subject to the approval of the Central Government has re-appointed M/s Ramanath Iyer & Co., Cost Accountants, New Delhi as Cost Auditors, for financial year 2011-12 and application is being submitted to the Central Government for its approval.

22. Industrial Relations

Industrial relations remained cordial and harmonious throughout the year under review.

23. Energy Conservation / Technology Absorption and Foreign Exchange Earnings and Outgo

Energy conservation continues to be an area of major emphasis in the Company. A statement giving details of conservation of energy, technology absorption, foreign exchange earnings and outgo, in accordance with Section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 is annexed hereto as Annexure I and forms part of the report.

The Company has received the National Award for Energy Conservation "National Energy Conservation Award 2010”, First prize in Drugs & Pharmaceuticals Sector from the Ministry of Power, Government of India. The Company has received the said award in chemical sector consecutively for the year 2005, 2006, 2007, 2008 and 2009. The Company has also received First Prize in State Level Energy Conservation Award for the year 2010.

24. Information on Personnel

Statement showing particulars of the employees as required by the provisions of Section 217(2A) of the Companies Act, 1956 is not given as no employee was in receipt of remuneration equal to or exceeding Rs. 60 lac per annum or Rs. 5 lac per month if employed for the part of the year.

25. Directors' Responsibility Statement

Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, it is hereby confirmed that:

1. in preparation of the annual accounts, the applicable accounting standards has been followed along with proper explanation relating to material departures;

2. the directors have selected such accounting policies and applied them consistently and made judgment and estimate that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;

3. the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

4. the directors have prepared the annual accounts on a going concern basis.

26. Acknowledgement

We are pleased to place on record our sincere gratitude and appreciation for assistance and co-operation received from the Union Government, Punjab Government, Company's Bankers, Members, Customers and Business Constituents.

We also place on record our sincere appreciation for contribution made by the employees at all levels. Our consistent growth is made possible by their devout, sincere and unstinted services.

For and on behalf of the Board Sd/- Varinder Gupta Chairman and Managing Director

Place : Ludhiana Dated : 11 July 2011

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Mar 31, 2010

The Directors are pleased to present the Twenty-third Annual Report and Audited Accounts for the financial year ended 31 March 2010.

1. Financial Results

Financial results of the Company for the financial year under

report are given below: (Rs in lac) Particulars Year ended Year ended 31 March 2010 31 March 2009 Net sales and other income 35,041.67 30,519.36 Profit before interest & depreciation 3,953.26 3,601.88 Interest 1,486.74 1,491.95 Profit before depreciation 2,466.52 2,109.93 Depreciation 1,001.12 1,000.16 Profit before tax 1,465.40 1,109.77 Provision for tax (including deferred tax) 463.80 (159.65) Profit after tax 1,001.60 1,269.42 Balance carried to the Balance Sheet 4,619.54 3,617.94

2. Performance Review

There was a healthy improvement in the overall performance and profitability of the Company in comparison to the previous years performance. Net sales and other income of the Company has increased by 14.82% to Rs 350.42 crore from Rs 305.19 crore. Corresponding profit before interest & depreciation has increased by 9.76% to Rs 39.53 crore during the year under review against from Rs 36.02 crore. Net profit after tax decreased by 21 % to Rs 10.02 crore during the year under review from Rs 12.69 crore of the previous year due to the higher provision for taxation of Rs 4.64 crore against during the year under review in comparison to a deferred tax credit of Rs (1.60) crore.

3. Dividend

The Board of Directors has not recommended any dividend keeping in view the ongoing expansion, modification and other future investment possibilities and decided to plough back profit.

4. Allotment of Equity Share and Warrants

During the year under review, paid up equity share capital of the Company has been increased from Rs 18,15,00,000 to Rs 22,71,66,640 due to allotment of 45,66,664 equity shares of Rs 10 each on conversion of fully convertible debenture and warrants in following trenches:

a) 18,66,664 equity shares at a premium of Rs 65 per share on 21 April 2009 against conversion of fully convertible debenture which were earlier issued to non-promoters on preferential basis.

b) 12,00,000 equity shares at a premium of Rs 65 per share on 21 April 2009 against exercise of options attached to warrants which were earlier issued to promoters on preferential basis.

c) 15,00,000 equity shares at a premium of Rs 46 per share on 16 January 2010 to promoters on preferential basis.

In addition to above, Company has allotted 30,00,000 (thirty lac) warrants on 16 January 2010, carrying an option to the holders of such warrants to subscribe to one equity share of Rs 10 at premium of Rs 46 per share for every warrant held, within a period of 18 months from the date of allotment of the warrants, to the promoters/ promoters companies on preferential basis.

5. Issue of Foreign Currency Convertible Bonds (FCCBs) Company has issued 50 Zero Coupon Unsecured Foreign Currency Convertible Bonds on 28 May 2010 due June 2015 (ISIN XS 0505067461) aggregating to USD 5 million (subject to an option to issue an additional USD 10 million of such bonds) to international investors to part finance capital expenditure programme of the Company. Each bond is convertible into equity shares of face value of Rs 10 each of the Company at

a conversion price of Rs 78 per share at any time on or after 28 May 2010 until the close of business on 28 May 2015, unless previously redeemed, converted or purchased and cancelled. The Company has also option to convert the bonds at any time from 28 November 2014 to 28 May 2015. Bonds which are not redeemed, converted or purchased and cancelled, are redeemable on 5 June 2015 at an amount equal to principal amount of the Bonds multiplied by 141.24872. These bonds have been listed on the Luxembourg Stock Exchange, Luxembourg.

6. Expansion project

Expansion cum Backward and Forward integration project, undertaken by Company has been successfully completed and implemented during the year under review with aggregated project cost of Rs 258 crore. Following enhanced capacities became commercially operative during the year:

Sr Product Unit Earlier Enhanced No. capacities capacities 1. Acetic Acid TPA 50,000 75,000 2. Ethyl Acetate TPA 33,000 36,000 3. Acetic Anhydride TPA 12,000 18,000 4. Ibuprofen TPA 3,600 6,000 5. Cogeneration Power MW 4 17 6. Acetyl Chloride TPA — 5,200 7. Mono Chloro Acetic AcidTPA — 7,200 8. Iso Butyl Benzene TPA — 6,600

Company has now embarked upon a second phase of capacity enhancement and diversification into more value-added pharmaceutical products which will involve a CAPEX of Rs 130 crore. Detail of proposed capacities under this project is as follow:

Sr Product Unit Present Proposed No. capacities capacities 1. Proton Pumps Inhibitors (PPIs) TPA - 150 2. Multi Purpose PlantTPA - 2,400 3. Ethyl Acetate TPA 36,000 42,000 4. Acetic Anhydride TPA 18,000 30,000 5. Iso Butyl Benzene TPA 6,600 9,000

7. Credit Rating

The Credit Analysis & Research Ltd (CARE) has rated Company as "CARE BBB" for Long Term Facilities which indicates moderate safety for timely servicing of debt obligations and as "PR2" for Short Term Facilities which indicates adequate capacity for timely payment of short term debt obligations.

8. Awards

Members would be happy to note the receipt of following awards by their Company during the year under review:

1 National Energy Conservation Award 2009 (Second Prize) for appreciation of its effors in energy conservation in Drugs & Pharmaceuticals Sector from Ministry of Power, Government of India

2 National Energy Conservation Award 2009 (Commendation Certificate) for appreciation of its effors in energy conservation in Chemical Sector from Ministry of Power, Government of India. (Company has received this award consecutively fifth year)

3 State Energy Conservation Award (Second Position) from the Punjab Energy Development Agency, Chandigarh.

9. Recognitions

Following recognitions were received by the Company during the year under review:

1. Registration certificate of Halal Committee, Jamiat Ulama- E-Maharastra;

2. A Kosher Certification from Kosher Inspection Services India;

3. A Star Export House recognition from the Ministry of Commerce and Industry, India.

10. Directors

According to Article 146 of the Articles of Association of the Company, one third of the directors for time being liable to retire by rotation, shall retire from the office. Accordingly, Mr Chandra Mohan and Mrs Dimple Gupta, are liable to retire by rotation at the ensuing Annual General Meeting and, being eligible, have offered themselves for re-appointment. Board has recommended the re-election of these directors to the members.

11. Corporate Governance

Company have in place a system of Corporate Governance. A separate report on Corporate Governance alongwith Auditors Certificate regarding compliance with Clause 49 of the Listing Agreement is annexed to this Annual Report.

12. Management Discussion and Analysis Report Management Discussion and Analysis Report is given separately in this Annual Report.

13. Safety, Health and Environment

Safety is Companys top priority with regard to employment and it is encouraging safety measures at all levels of operations especially at the floor level. Regular training programmers are being conducted to bring in awareness about the importance of safety at work place. Bi-monthly medical camps are also being organized for welfare of the members in addition to regular medical facilities provided to them.

Company has been awarded with the Punjab State Safety Awards in 2008 for the largest reduction in the frequency of accidents in chemical sector from the Punjab Industrial Safety Council and Chief Inspector of Factories, Punjab.

14. No Default

Company has not made default in the payment of any statutory dues to government, interest and/or repayment of loans to any of the financial institutions / banks during the year under review.

15. Fixed Deposits

Company has not accepted any fixed deposits from the public/ members during the year under review.

16. Investor Services

Company is committed to provide the best services to the shareholders/ investors. M/s Alankit Assignments Limited, New Delhi are working as Registrars and Share Transfer Agents (RTA) of the Company for transfer, dematerialization of shares and other investor related services. No correspondence /enquiry from any shareholder/investor is pending with the Company for reply.

17. Listing of Shares

Equity shares of the Company continued to be listed and traded on the Bombay Stock Exchange Limited (BSE); Script code is 524164. Company has made all compliances of the Listing Agreement including payment of annual listing fee.

18. Audit and Risk Management Committee

Audit and Risk Management Committee of the Company consists of the following three independent directors:

1. Dr M A Zahir (Chairman)

2. Dr (Mrs) H K Bal

3. Mr Parminder Singh Cheema

19. Statutory Auditors Report

Auditors Report on the accounts is self-explanatory and no comments are required.

20. Statutory Auditors

M/s S C Vasudeva and Co., Chartered Accountants, Auditors of the Company, retire at the conclusion of ensuing Annual General Meeting and being eligible, have offered themselves for re-appointment. Auditors Report on the accounts is self- explanatory and no comments are required.

21. Cost Auditors

The Central Government had directed that audit be carried out of the cost accounts maintained by the Company in respect of chemicals by a qualified cost accountant. Board subject to approval of the Central Government has appointed M/s Ramanath Iyer & Co., Cost Accountants, New Delhi as Cost Auditors, for financial year 2010-11 and application has been submitted to the Central Government for its approval.

22. Industrial Relations

Industrial relations remained cordial and harmonious throughout the year under review.

23. Energy Conservation / Technology Absorption and Foreign Exchange Earnings and Outgo

Energy conservation continues to be an area of major emphasis in the Company. A statement giving details of conservation of energy, technology absorption, foreign exchange earnings and outgo, in accordance with Section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 is annexed hereto as Annexure I and forms part of the report. Company has received the "National Energy Conservation Award 2009" for both divisions. Second prize in Drugs & Pharmaceuticals Sector and Commendataion Certificate in Chemical Sector from the Ministry of Power, Government of India. The said award is received by Company consecutively for the fifth year.

24. Information on personnel

Statement showing particulars of the employees as required by the provisions of Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 as amended, is not given as no employee was in receipt of remuneration equal to or exceeding Rs 24 lac per annum, if employed for the full year or Rs 2 lac per month if employed for the part of the year.

25. Directors Responsibility Statement

Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, it is hereby confirmed that:

1. in preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanations relating to material departures;

2. the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;

3. the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

4. the directors had prepared the annual accounts on a going concern basis.

26. Acknowledgement

We are pleased to place on record our sincere gratitude and appreciation for assistance and co-operation received from the Union Government, Punjab Government, Companys Bankers, Members, Customers and Business Constituents. We also place on record our sincere appreciation for contribution made by the employees at all levels. Our consistent growth is made possible by their devout, sincere and unstinted services.

For and on behalf of the Board Sd/- Place : Ludhiana (Varinder Gupta) Dated : 29 May 2010 Chairman and Managing Director