Directors Report of Nectar Lifesciences Ltd.

Mar 31, 2025

Your directors take pleasure in presenting the 30^th Annual Report
together with the audited financial statements of Nectar Lifesciences
Limited (“NLL” or “Neclife” or “Nectar” or “the Company”) for the
Financial Year (“FY”) ended March 31,2025.

Financial results and state of affairs

	31-Mar-25	31-Mar-24
Gross Sales (Including GST)	19083.98	19258.32
Other Income	49.92	145.76
Profit (Loss) before interest and depreciation & exceptional items	(245.66)	1661.36
Interest	745.78	871.42
Depreciation & Amortization	623.89	607.18
Profit (Loss) before exceptional items & tax	(1615.34)	182.76
Exceptional items (Net of Tax)	-	-
Profit (Loss) before tax	(1615.34)	182.76
Tax expenses	(478.53)	132.74
Profit (Loss) after tax	(1136.81)	50.02
Other Comprehensive income (Net of Taxes)	5.40	(3.42)
Profit (Loss) after tax available for Appropriations	(1131.41)	46.60

The Company’s revenue during FY 2024-25 stood at INR 19084/-
million against INR 19258/- million in the previous year recording a
decrease of 0.91%. The Company reported a loss before tax of INR
1615.34 million in FY 2024-25 compared to profit before tax of INR
182.76 million in FY 2023-24 with a decrease of 983.86%.

During the financial year 2020-21, based on expert’s (nominated by
the Lead Bank) findings, the Company has reclassified certain
inventories from “Current” to “Non- Current”. Notwithstanding the
reports furnished by technical expert about the remaining non-current
inventory, the management has, adhering to conservatism principle,
decided to mark down the realizable value of inventory to INR 506.13
million from INR 1773.31 million, based on the fact that the inventory
has been in stocks for a considerable period. The resultant loss has
been charged to profit and loss account in 2024-25.

The detailed discussion on Company’s various operations, state of
Company’s affairs, nature of business and changes therein are set
out in Management Discussion and Analysis Report (“MDA”).
The MDA of financial condition and result of operations of the
Company for the year under review as required under Securities
and Exchange Board of India (“SEBI”) (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (“LODR Regulations”),
is given as Annexure 1 and forms and part of this report. Any
disclosure not given in this report and its annexures but disclosed in
Annexure 1, shall be deemed to be reported in this report and vice
versa. As the Company is not in the top 1000 companies list based
on the Market Capitalisation from March 31,2022 to December 31,

2024, the Business Responsibility and Sustainability Report (“BRSR”)
is not be applicable to the Company.

Board of Directors of Company in their meeting held on July 07,

2025, have approved the:

1. Sale of business of manufacture, distribution, marketing of active
pharmaceutical ingredients and formulations (“Business”) of the
Company to Ceph Lifesciences Private Limited (“Purchaser”)
for INR 12,70,00,00,000/- (Indian Rupees one thousand two
hundred seventy crore only) as a slump sale on a going concern
basis. For this purpose, a business transfer agreement dated
July 07, 2025 has been executed between the Company and
the Purchaser (“BTA”) and the Proposed Transaction shall take
place in accordance with the terms set out in the BTA and
subject to adjustments in accordance with the terms of the BTA.
The members in their 2025-26/01 st Extraordinary General
Meeting have approved the transaction by way special resolution
as well as by majority of public shareholders.

2. Sale, transfer and delivery of the assets of the Company in
relation to its menthol business (“Assets”) to Purchaser for INR
20,00,00,000/- (Indian Rupees Twenty Crores only), plus
applicable GST payable on the sale of such Assets under the
applicable law, on the terms and conditions as set out in the
asset purchase agreement dated July 07, 2025 (“APA”)
executed between the Company and the Purchaser.

The object and commercial rationale for the above transactions were
to utilise the sale proceeds for strategic purposes, including
repayment of existing debt, investment in new projects, rewarding
shareholders in the form of special dividends and / or Buyback of
Equity Shares by the Company or mix of both and general corporate
purposes, as deemed fit by the Board or its committee, in accordance
with applicable law.

There has been no change in the nature of business of the Company.
Apart from above and discussed in MDA, if any, there are no material
changes and commitments affecting the financial position of the
company during and after the closure of FY. The financial results of
the company for the quarter ended on June 30, 2025, will be made
available on the website of the company (URL: https://
www.neclife.com/about-1 ).

Indian Accounting Standards (“Ind AS”) and Secretarial
Standards

The company has adopted Ind AS prescribed under section 133 of
the Companies Act, 2013 (“Act”), read with the relevant rules issued
there under and accordingly, standalone and consolidated audited
financial statements have been prepared in accordance with the
recognition and measurement principles laid down in Ind AS and the
other accounting principles generally accepted in India.

The Company is in compliance of Secretarial Standards as issued
by Institute of Company Secretaries of India (“ICSI”).

Corporate Governance

The Company aimed to conduct its affairs in an ethical manner. A
separate Report on Corporate Governance is given as Annexure 2
and forms part of this report. A certificate from the Company’s
Auditors regarding the Compliance of Conditions of Corporate
Governance as stipulated under LODR Regulations is given in
Annexure 3. Any disclosure not given in this report and its annexures
but disclosed in Annexure 2, shall be deemed to be reported in this
report and vice versa.

Share capital

The authorised capital of the Company is INR 350.00 million divided
into 350 million equity shares of INR 1.00 each. The paid-up equity
share capital as on March 31,2025, was INR 224.26 million. There
was no public issue, rights issue, bonus issue or preferential issue,
etc. during the FY. The Company has not issued shares with

differential voting rights, sweat equity shares, nor has it granted any
stock options. Thus, nothing to report on change in share capital.

Global Depository Receipts (GDRs)

During the year all the GDRs underlying the equity shares in the
Company have been stand cancelled and converted to equity shares
therefore, no outstanding GDRs are pending or held by Deutsche
Bank Trust Company Americas, the Depository of GDRs. Therefore,
the GDRs have been delisted from Luxembourg Stock Exchange
(“LuxSE”) with effect from November 28, 2024.

Subsidiary Company

The Company has wholly owned subsidiary (“WOS”) namely
NECLIFE PT, UNIPESSOAL LDA (“NECLIFE PT”), incorporated in
Portugal. There is negligible investment in NECLIFE PT, and no
business activity has been carried out therein in FY 2024-25 and till
date in FY 2025-26. Therefore, nothing is to report on the performance
and financial position of NECLIFE PT. The contribution of WOS in
the performance of the Company was/ is negligible.

Pursuant to the provisions of Section 129(3) of the Act, a statement
containing salient features of financial statements of subsidiaries,
associates and joint venture companies in Form AOC-1 is attached to
the Financial Statements. The separate financial statements in respect
of the NECLIFE PT shall be kept open for inspection at the Registered
Office of the Company during working hours for a period of 21 days
before the date of the Annual General Meeting (“AGM”). Your Company
will also make available these documents upon request by any Member
of the Company interested in obtaining the same. The separate audited/
unaudited financial statements in respect of the NECLIFE PT are also
available on the website of your Company at URL:
https://www.neclife.com/ files/ugd/6aa048 fb0ac3f9212f4778b0d7cc20f4958bf1 .pdf.

The WOS is not material as per Policy for determining Material
Subsidiaries of the Company and LODR Regulations. The Company
does not have any associate company or joint venture company,
therefore, nothing to report thereon.

Consolidated financial Statements

As required under Section 129 of the Act and LODR Regulations,
consolidated financial statements for the year ended on March 31,
2025, of the Company are attached.

Dividend, Reserves and Dividend Distribution Policy

Considering the financial position of the Company, your directors
have decided not to recommended a Dividend for the year ended
March 31,2025. The Board of Directors of your company, has decided
not to transfer any amount to the Reserves for the year under review.

The Dividend Distribution Policy is placed on the website of the Company at
https://www.neclife.com/ files/ugd/6aa048 08a096eaff2643ee8944920c02642ea8.pdf
and Company is in compliance of the same.

The members may please refer to notes of Notice of AGM for
information on shares/dividend transferred / proposed to be
transferred to IEPF Authority.

Directors and Key Managerial Persons

Mr. Sanjiv Goyal (DIN: 00002841), Director will retire by rotation in
the forthcoming AGM and being eligible, offer himself for re¬
appointment. The Board recommends his re-appointment as a
Director.

Mr. Sanjiv Goyal (DIN-00002841) has been re-appointed as a
Chairman & Managing Director of the company w.e.f. May 31,2025
for a period of 3 years by the members in their AGM held on
September 21,2024.

Mr. Puneet Sud (DIN: 09735713) has been re-appointed as a
Wholetime Director designated Director (Operations) of the company
for a period of six months and seven days starting from September

24, 2024 and ending on March 31,2025 by members in their AGM
held on September 21, 2024. Pursuant to the authority granted by
the members in their AGM held on September 21,2024, the Board
has in their meeting held on April 01,2025, re-appointed Mr. Puneet
Sud as a Whole-time Director designated as Director (Operations)
of the Company for a period of two months starting from April 1,
2025 and ending on May 31,2025. On expiry of his term on May 31,
2025, Mr. Sud has also tendered his resignation as a Director of the
Company with effect from closing hours of May 31,2025.

Based on the recommendation of NRC, the Board of Directors vide
their resolutions dated May 30, 2025, have appointed Dr. Surulichamy
Senthilkumar (DIN- 11124083) as an Additional Director of the
Company w.e.f. June 01, 2025 as well as Whole time Director
designated as Director (R&D) of the Company for a period of three
years from June 01,2025. He has been appointed as regular director
and his appointment as a Whole time Director designated as Director
(R&D) approved, by the members in their Extraordinary General
Meeting held on August 04, 2025.

The Company has received declarations from all the Independent
Directors of the Company confirming that:

1. They meet the criteria of independence as prescribed both under
sub-section (6) of Section 149 of the Act, and under LODR
Regulations;

2. They hold highest standards of integrity and possess requisite
expertise and experience (including proficiency in terms of
Section 150(1) of the Act and applicable rules thereunder)
required to fulfill their duties as Independent Directors;

3. They are in compliance of sub-rule (1), sub-rule (2) and sub¬
rule (4) of Rule 6 of Companies (Appointment and Qualifications
of Directors) Rules, 2014;

4. They have complied with the Code of Conduct for Directors
and senior management.

Your Directors do hereby confirm that in the opinion of the board the
independent directors;

a. fulfil the conditions specified in the Act and LODR Regulations;

b. are independent of the management; and

c. possess integrity, expertise and experience (including the
proficiency in terms of Section 150(1) of the Act).

As on the date of the end of FY, the company has right proportion of
Independent Directors viz a viz Non-Independent Directors as per
applicable provisions of Section 149 of the Act, and LODR
Regulations.

Ms. Neha Vaishnav, Company Secretary & Compliance Officer has
resigned from the Company w.e.f. February 28, 2025 and Board has
in their meeting held on April 01,2025, appointed Mr. Sanjaymohan
Singh Rawat as a Company Secretary & Compliance Officer of the
Company.

Pursuant to the provisions of Section 203 of the Act, the key
managerial personnel of the Company as on March 31,2025, were
as under:

Mr. Sanjiv Goyal, Chairman & Managing Director
Mr. Puneet Sud, Director (Operations)

Mr. Amit Chadah, Chief Executive Officer (“CEO”)

Mr. Sushil Kapoor, Chief Financial Officer (“CFO”)

Number of meetings of the board

Four (4) meetings of the board were held during the year. The details
of Directors’ attendance and meeting held during FY 2024-25 are
provided in Corporate Governance Report which forms and part of
this report.

Directors’ responsibility statement

The Directors confirm that:

• in the preparation of the annual accounts, the applicable
accounting standards have been followed and that no material
departures have been made from the same;

• 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 FY and of
the profit & loss of the Company for that period;

• they have taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions
of the Act, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;

• they have prepared the annual accounts on a going concern
basis;

• they have laid down internal financial controls for the Company
and such internal financial controls are adequate and operating
effectively; and

• they have devised proper systems to ensure compliance with
the provisions of all applicable laws and such systems are
adequate and operating effectively.

Committees of the Board

The Company constituted the Committees as per the provisions of
Sections 135, 177, 178 and other applicable provisions of the Act
and LODR Regulations. The composition, powers and duties of the
Committees, during FY 2024-25, are detailed out in the Corporate
Governance Report which forms part of this report. The Board of
Directors accepted all recommendations of the Audit Committee.

Policy on directors’ appointment and remuneration and other
details

The Company’s policy on directors’ appointment and
remuneration and other matters namely Nomination,
Remuneration & Evaluation Policy as provided in Section 178(3)
of the Act has been uploaded on the website of the company at
https://www.neclife.com/ files/ugd/6aa048 17d769b4f1064d5eadb8fb8d97a4520f.pdf.
The salient features of the Policy are to provide a framework
and set standards for the nomination, remuneration & evaluation
of the Directors, Key Managerial Personnel and officials
comprising the Senior Management. The Company aims to
achieve a balance of merit, experience and skills amongst its
Directors, Key Managerial Personnel and Senior Management.
The criteria for Appointment of Directors/KMPs/Senior Officials
are as under:

For Enhancing the competencies of the Board and attracting as well
as retaining talented employees for role of KMP/a level below KMP
are the basis for the NRC to select a candidate for appointment to
the Board. When recommending a candidate for appointment, the
NRC has regard to:

• Assessing the appointee against a range of criteria which
includes but not be limited to qualifications, skills, regional and
industry experience, background and other qualities required
to operate successfully in the position, with due regard for the
benefits from diversifying the Board;

• The extent to which the appointee is likely to contribute to the
overall effectiveness of the Board, work constructively with the
existing directors and enhance the efficiencies of the Company;

• The skills and experience that the appointee brings to the role
of KMP/Senior Official and how an appointee will enhance the
skill sets and experience of the Board as a whole;

• The nature of existing positions held by the appointee including
directorships or other relationships and the impact they may
have on the appointee’s ability to exercise independent
judgment.

The criteria for deciding the Remuneration of Directors, Key
Managerial Personnel and Senior Management are as under:

• The guiding principle is that the level and composition of
remuneration shall be reasonable and sufficient to attract, retain
and motivate Directors, Key Management Personnel and other
senior officials.

• The Directors, Key Management Personnel and other senior
official’s salary shall be based & determined on the individual
person’s responsibilities and performance and in accordance
with the limits as prescribed statutorily, if any and other relevant
factors including but not limited to market, business performance
and practices in comparable companies, having due regard to
financial and commercial health of the Company as well as
prevailing laws and government/other guidelines.

There could be following component of Remuneration:

a) Base Compensation (fixed salaries): Must be competitive and
reflective of the individual’s role, responsibility and experience
in relation to performance of day-to-day activities, usually
reviewed on an annual basis;

b) Variable salary: The NRC may in its discretion structure any
portion of remuneration to link rewards to corporate and
individual performance, fulfillment of specified improvement
targets or the attainment of certain financial or other objectives
set by the Board.

There is no change in the policy during FY 2024-25.

Board evaluation

Pursuant to the provisions of the Act and LODR Regulations, the
evaluation of the Board involves multiple levels:

1. Board as a whole;

2. Committees of the Board;

3. Individual Directors and Chairperson, CEO, Independent
Directors, Non-independent directors, etc.

The performance of the Board and committees was evaluated by
the NRC and the Board after seeking inputs from all the directors/
committee members on the basis of the criteria such as the Board/
committee composition and structure, effectiveness of board
processes, information and functioning, etc.

The following information is provided in agenda papers for evaluation
of:

A. Board

1. Frequency of meetings

2. Attendance by Board members

3. Duration and conduct of meetings

4. Agenda and documentation

5. Board Structure

6. Functions of the Board

7. Communications and Interaction

B. Committees

1. Size of the Committee is appropriate for the complexity &
operations of the organization.

2. Effectiveness of the Committee in performing its role and
discharging its responsibilities (as mandated under the Act
and the LODR Regulations).

3. The Committee oversees the terms of references assigned
to it/ its statutory obligations/ role defined.

4. The Committee review / approves matters of its terms of
reference.

5. Agenda of the Committees are being circulated at a
reasonable time in advance

6. Draft and Signed Minutes of the Committees circulated to
the members of the Committee.

7. Minutes of meeting(s) of the Committee are placed before
the Board regularly.

8. The Committee effectively performs support functions to
the Board in fulfilling its responsibilities.

9. Overall functioning of the Committee.

C. Independent Directors, Chairman & Managing Director,

Wholetime Director and CEO:

1. Consistently and actively participated in the board and
committee meetings.

2. Prepared adequately for the board/ committee meetings.

3. Contributed to strategy and other areas impacting
Company performance.

4. Brought their experience and credibility to bear on the
critical areas of performance of the company.

5. Kept updated knowledge of their area of expertise.

6. Communicated in open and constructive manner.

7. Gave fair chance to other members to contribute,
participates actively in the discussions and were consensus
oriented.

8. Helped to create positive image of the Company and helped
the Company wherever possible.

9. Actively contributed toward positive growth of the
Company.

10. Conducted themselves in a manner that was ethical and
consistent with the laws of the land.

11. Attitude

12. Application to the job

The NRC and the Board have reviewed the performance of the
individual directors and CEO on the basis of the criteria such as the
contribution of the individual director to the Board and committee
meetings like preparedness on the issues to be discussed,
meaningful and constructive contribution and inputs in meetings, etc.
In addition, the Chairman was also evaluated on the key aspects of
his role. The performance evaluation forms of each of director get
filled from all directors based on Knowledge, Skills, Attitude,
Application to the job, Communication, Human Behavior & Teamwork
and Overall Performance.

In a separate meeting of independent Directors, performance of non¬
independent directors, performance of the board as a whole and
performance of the Chairman and CEO was evaluated on the basis
of parameters as provided above.

Internal financial control systems and their adequacy

The company has adequate financial controls. The details in respect
of internal financial control and their adequacy are included in the
MDA, which forms part of this report.

Auditors

M/s Deepak Jindal & Co, Chartered Accountants (Firm Registration
No. 023023N) have been appointed as the Statutory Auditors of the
Company in the 27^th AGM held on September 21,2022, for a period
of five years commencing from the conclusion of the 27^th AGM till
the conclusion of the 32^nd AGM to be held in the year 2027.

Auditors’ Report

The Report given by the M/s Deepak Jindal & Co, on the financial
statements of the Company is part of the Annual Report. There has
been no qualification, reservation, adverse remark or disclaimer given
by the Auditors in their Report. Observations made in the Auditors’
Report are self-explanatory and therefore do not call for any further
explanation.

Secretarial Auditor and Secretarial Audit Report

Secretarial Audit has been carried out by Mr. Prince Chadha of P.
Chadha & Associates, Practicing Company Secretary, the Secretarial
Auditor of the company for FY 2024-25. The Secretarial Audit Report
is appended as Annexure 4 to this report. There were no
qualifications, reservation or adverse remarks given by Secretarial
Auditors of the Company. Observations made in the Auditors’ Report
are self-explanatory and therefore do not call for any further
explanation.

The Company has undertaken an audit for the FY 2024-25 for all
applicable compliances as per SEBI Regulations and Circulars/
Guidelines issued thereunder. The Annual Secretarial Compliance
Report has been submitted to the stock exchanges within 60 days
of the end of the FY and also available on the website of the Company
at www.neclife.com.

Pursuant to amendments in LODR effective from April 01,2025, the
Board of Directors on recommendations of Audit Committee proposed
the appointment of Mr. Prince Chadha of P. Chadha & Associates,
Company Secretary in Practice (Firm Registration No. 12409) as
the Secretarial Auditors of the Company, for a period of five years
for FY 2025-26 to FY 2029-30.

Mr. Prince Chadha of P. Chadha & Associates have consented to
their appointment as Secretarial Auditors and have confirmed that if
appointed, their appointment will be in accordance with Section 204
read with other applicable provisions of the Act and LODR
Regulations.

Cost Records and Audit

The Company is required to maintain cost records as specified by
the Central Government under sub-section (1) of section 148 of the
Act and accordingly such accounts and records are made and
maintained.

The Cost Auditor has submitted the Cost Audit Report for FY 2023¬
24 on August 14, 2024, which has been filed on September 04, 2024,
within the prescribed time.

The Cost Auditor will forward the Cost Audit Report for FY 2024-25
by September 27, 2025. The report will be filed with the Ministry of
Corporate Affairs within 30 days of the date of Cost Audit Report.

The Company has re-appointed Dr. Vimal Kumar Aggarwal
(Membership No. 9982) prop. of M/s V. Kumar and Associates, #G-
104, Jaipuria Sunrise Green, VIP Road, Zirakpur, SAS Nagar (Mohali)
Punjab-140603, Cost and Works Accountants as the Cost Auditors
of the Company for FY 2025-26.

Report by Auditors under Section 143(12) of the Act

None of the Auditors have reported any fraud under sub-section (12)
of section 143 of the Act to the Audit Committee or the Board.

Risk management

The development and implementation of risk management policy
has been covered in the MDA, which forms part of this report.

The audit committee has additional oversight in the area of financial
risks and controls. Major risks identified by the businesses and
functions are systematically addressed through mitigating actions
on a continuing basis.

Particulars of loans, guarantees and investments

The Company has not given any loan or provided guarantee or
security as per Section 186 of the Act, however, the amount
receivable from subsidiaries, if any, and the investments under
section 186 of the Act are given in the Financial Statements forming
part of the Annual Report.

Transactions with related parties

Information on transactions with related parties pursuant to Section
134(3)(h) of the Act read with rule 8(2) of the Companies (Accounts)
Rules, 2014 are given in Annexure 5 in Form AOC-2 and the same
forms part of this report. Further details about these transactions
are provided in Report on Corporate Governance and Financial
Statements forming part of the Annual Report.

Corporate social responsibility

The information as required under Section 135 of the Act and
Companies (Corporate Social Responsibility Policy) Rules, 2014
(“CSR Rules”), the brief outline of the Corporate Social Responsibility
(“CSR”) Policy of the Company and the initiatives undertaken by the
Company on CSR activities during the year are set out in Annexure
6 of this report in the format prescribed in the CSR Rules. The CSR
policy is available on the website of the Company.

Annual Return and Extract of annual return

As provided under Section 92(3) of the Act, the Annual Return (MGT-
7) is also available on the website of the company at
https://www.neclife.com/ files/ugd/6aa048 03ac85dcb08f4eac9116183dd27f8feb.pdf.

Employees

The information required under Section 197 of the Act read with rule
5(1) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 is attached as Annexure 7. In terms of proviso
to Section 136 of the Act, the Report and Accounts are being sent to
the Members and others entitled thereto, excluding the information
on employees’ particulars as required pursuant to provisions of Rule
5(2) and 5(3) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014. The said information is available
for inspection by the Members at the Registered Office of the
Company during business hours on working days of the Company
up to the date of the ensuing AGM. If any Member is interested in
obtaining a copy thereof, such Member may write to the Company
Secretary in this regard. This information is also available on the
website of the Company (URL: www.neclife.com).

Deposits from Public

The Company has not accepted any deposits from public within the
meaning of Sections 73 and 74 of the Act and extant Rules framed
thereunder during the financial year 2024-25 and, as such, no amount
on account of principal or interest on deposits from public was
outstanding as on the date of this report.

Significant and Material Orders passed by the Regulators or
Courts or Tribunals impacting the going concern status and
Company’s operations in future

Considering the slump sale of Business, there were no significant
and material orders passed by the Regulators or Courts or Tribunals
impacting the going concern status and Company''s operations in
future. However, some material orders passed are disclosed in the
disclosures part of Corporate Governance Report of the Company.

The details of difference between amount of the valuation done
at the time of one time settlement and the valuation done while
taking loan from the Banks or Financial Institutions along with
the reasons thereof.

The Company has not made any one-time settlement for loans taken
from the Banks or Financial Institutions during the financial year under
review. Therefore, it is not applicable.

Disclosure requirements

• Details of the familiarization programme of the independent
directors are available on the website of the Company (URL:
https://www.neclife.com/about-3-11).

• Policy for determining material subsidiaries of the Company is
available on the website of the Company
(https://www.neclife.com/ files/ugd/6aa048 4d7e3d59872e4416a7a93371 bc898f7c.pdf).

• Policy on dealing with related party transactions is available on
the website of the Company (URL:
https://www.neclife.com/ files/ugd/6aa048 c454aa58de1 b40dca8c41354a7d5e7b5.pdf).

• The Whistle Blower Policy to provide Vigil Mechanism for

employees including directors is available on the website
of the Company (URL:

https://www.neclife.com/ files/ugd/6aa048 cafe48f72d7144a5928e793ccdbe532d.pdf).

Committee and Policy against Sexual Harassment of women at
Workplace

The company has complied with provisions relating to the constitution
of Internal Complaints Committee under the Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013 (“POSH Act”).

The Company has made the Policy for Prevention of Sexual
Harassment (“POSH Policy”) under POSH Act for all individuals
working for the Company at all levels and grades, including senior
executives, officers, employees (whether permanent, fixed term or
temporary), consultants, contractors, trainees, staff, casual workers,
interns. As per policy any aggrieved woman employee who feels
and is being sexually harassed directly or indirectly may make a
complaint of the alleged incident to any member of the Committee
constituted for this purpose.

Disclosures in relation to the POSH Act:

a. number of complaints pending as on April 01,2024 - NIL

b. number of complaints filed during the FY 2024-25 - NIL

c. number of complaints disposed of during the FY 2024-25 - N.A.

d. number of complaints pending as on March 31,2025 - N.A.

e. number of cases pending for more than ninety days - N.A.
Compliance of the Maternity Benefit Act 1961

The Company is fully compliance with the provisions relating to the
Maternity Benefit Act 1961.

Energy, technology and foreign exchange

The particulars relating to conservation of energy, technology
absorption, foreign exchange earnings and outgo, as required to be
disclosed under the Act, are provided in Annexure 8 to this Report.

Acknowledgement

Your Directors would like to express their sincere and grateful
appreciation for the assistance and cooperation received from
bankers and government authorities and also thank the shareholders
for the confidence reposed by them in the Company and looking
forward to their valuable support in the future plans of the Company.

Your Directors also thank its agents, the medical professionals and
its customers for their continued patronage to the Company’s
products.

For and on behalf of the Board of Directors
of Nectar Lifesciences Limited

(Sanjiv Goyal)

Place: Chandigarh Chairman & Managing Director

Date: August 14, 2025 DIN: 00002841

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Mar 31, 2024

The Company’s revenue during FY 2023-24 stood at INR 19258/-million against INR 17466/- million in the previous year recording an increase of 10.26%. With a significant improvement in its performance, the company reported a profit before tax of INR 182.76 million in FY 2023-24 compared to loss before tax of INR 406.94 million in FY 2022-23 with an improvement of 145%.

The detailed discussion on Company’s various operations, state of Company’s affairs, nature of business and changes therein are set out in Management Discussion and Analysis Report (“MDA”). The MDA of financial condition and result of operations of the Company for the year under review as required under Securities and Exchange Board of India (“SEBI”) (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR Regulations”), is given as Annexure 1 and forms and part of this report. Any disclosure not given in this report and its annexures but disclosed in Annexure 1, shall be deemed to be reported in this report and vice versa. As the Company is not in the top 1000 companies list based on the Market Capitalisation as on March 31, 2023, and March 31, 2024, the Business Responsibility and Sustainability Report (“BRSR”) is not be applicable to the Company.

There has been no change in the nature of business of the Company. Apart from above and discussed in MDA, if any, there are no material changes and commitments affecting the financial position of the company during and after the closure of FY. The financial results of the company for the quarter ended on June 30, 2024, will be made available on the website of the company (URL: https:// www.neclife.com).

Your directors take pleasure in presenting the 29^th Annual Report together with the audited financial statements of Nectar Lifesciences Limited (“NLL” or “Neclife” or “Nectar” or “the Company”) for the Financial Year (“FY”) ended March 31, 2024.

Financial results and state of affairs	INR in Million
	31-Mar-24	31-Mar-23
Gross Sales (Including GST)	19258.32	17465.57
Other Income	145.76	431.79
Profit before interest and depreciation & exceptional items	1661.36	979.02
Interest	871.42	794.76
Depreciation & Amortization	607.18	591.19
Profit (Loss) before exceptional items & tax	182.76	(406.94)
Exceptional items (Net of Tax)	-	-
Profit (Loss) before tax	182.76	(406.94)
Tax expenses	132.74	(182.37)
Profit (Loss) after tax	50.02	(224.57)
Other Comprehensive income (Net of Taxes)	(3.42)	1.88
Profit (Loss) after tax available for Appropriations	46.60	(222.69)

Indian Accounting Standards (“Ind AS”) and Secretarial Standards

The company has adopted Ind AS prescribed under section 133 of the Companies Act, 2013 (“Act”), read with the relevant rules issued there under and accordingly, standalone and consolidated audited financial statements have been prepared in accordance with the recognition and measurement principles laid down in Ind AS and the other accounting principles generally accepted in India.

The Company is in compliance of Secretarial Standards as issued by Institute of Company Secretaries of India (“ICSI”).

Corporate Governance

The Company aimed to conduct its affairs in an ethical manner. A separate Report on Corporate Governance is given as Annexure 2 and forms part of this report. A certificate from the Company’s Auditors regarding the Compliance of Conditions of Corporate Governance as stipulated under LODR Regulations is given in Annexure 3. Any disclosure not given in this report and its annexures but disclosed in Annexure 2, shall be deemed to be reported in this report and vice versa.

Share capital

The authorised capital of the Company is INR 350.00 million divided into 350 million equity shares of INR 1.00 each. The paid-up equity share capital as on March 31,2024, was INR 224.26 million. There was no public issue, rights issue, bonus issue or preferential issue, etc. during the FY. The Company has not issued shares with differential voting rights, sweat equity shares, nor has it granted any stock options. Thus, nothing to report on change in share capital.

Global Depository Receipts (GDRs)

The Company has 46,000,000 equity shares of INR 1/- each underlying 46,000,000 Global Depository Receipts (GDRs). The GDRs are listed on:

Luxembourg Stock Exchange/ LuxSE Societe de la Bourse de Luxembourg S.A.

B.P. 165, L-2011 Luxembourg Siege social, 11, av de la Porte-Neuve,

Telephone: [phone] - 1, Fax: [phone] Subsidiary Company

The Company has wholly owned subsidiary (“WOS”) namely NECLIFE PT, UNIPESSOAL LDA (“NECLIFE PT”), incorporated in Portugal. There is negligible investment in NECLIFE PT, and no business activity has been carried out therein in FY 2023-24 and till date in FY 2024-25. Therefore, nothing is to report on the performance and financial position of NECLIFE PT. The contribution of WOS in the performance of the Company was/ is negligible.

Pursuant to the provisions of Section 129(3) of the Act, a statement containing salient features of financial statements of subsidiaries, associates and joint venture companies in Form AOC-1 is attached to the Financial Statements. The separate financial statements in respect of the NECLIFE PT shall be kept open for inspection at the Registered Office of the Company during working hours for a period of 21 days before the date of the Annual General Meeting (“AGM”). Your Company will also make available these documents upon request by any Member of the Company interested in obtaining the same. The separate audited/ unaudited financial statements in respect of the NECLIFE PT are also available on the website of your Company at URL: httcs://www.nedife.com/ files/ugd/6aa048 1820cda6f32245f7a853c39ed1d5a247.pdf.

The WOS is not material as per Policy for determining Material Subsidiaries of the Company and LODR Regulations. The Company does not have any associate company or joint venture company, therefore, nothing to report thereon.

Consolidated financial Statements

As required under Section 129 of the Act and LODR Regulations, consolidated financial statements for the year ended on March 31, 2024, of the Company are attached.

Dividend, Reserves and Dividend Distribution Policy

Considering the financial position and working capital requirements of the company in forthcoming financial years, your directors have decided to retain the profits and not recommended a Dividend for the year ended March 31,2024.

The Board of Directors of your company, has decided not to transfer any amount to the Reserves for the year under review.

The members may please refer to notes of Notice of AGM for information on shares/dividend transferred / proposed to be transferred to IEPF Authority.

The Dividend Distribution Policy is placed on the website of the Company at https://www.neclife.com/ files/ugd/6aa048 08a096eaff2643ee8944920c02642ea8.pdf and Company is in compliance of the same.

Directors and Key Managerial Persons

Based on the recommendation of Nomination & Remuneration Committee (“NRC”) the Board of Directors vide resolution dated May 26, 2023, and Members in their AGM held on September 21, 2023, have re-appointed Dr. Rupinder Tewari (DIN: 07009485) on the Board as an Independent Director for a second term of five years from February 11, 2024.

Mr. Puneet Sud (DIN: 09735713), Director will retire by rotation in the forthcoming AGM and being eligible, offer himself for reappointment. The Board recommends his re-appointment as a Director.

Mr. Puneet Sud (DIN: 09735713) has been re-appointed as a Wholetime Director designated Director (Operations) of the company for a period of six months and seven days starting from September 24, 2024 and ending on March 31,2025 by the Board of Directors in their meeting held on August 14, 2024. Based on recommendation of NRC, the Board recommends his re-appointment as a Wholetime Director.

Mr. Sanjiv Goyal (DIN-00002841) has been re-appointed as a Chairman & Managing Director of the company w.e.f. May 31,2025 for a period of 3 years by the Board of Directors in their meeting held on August 14, 2024. Based on recommendation of NRC, the Board recommends his re-appointment as a Chairman & Managing Director.

The Company has received declarations from all the Independent Directors of the Company confirming that:

1. They meet the criteria of independence as prescribed both under sub-section (6) of Section 149 of the Act, and under LODR Regulations;

2. They hold highest standards of integrity and possess requisite expertise and experience (including proficiency in terms of Section 150(1) of the Act and applicable rules thereunder) required to fulfill their duties as Independent Directors;

3. They are in compliance of sub-rule (1), sub-rule (2) and subrule (4) of Rule 6 of Companies (Appointment and Qualifications of Directors) Rules, 2014;

4. They have complied with the Code of Conduct for Directors and senior management.

Your Directors do hereby confirm that in the opinion of the board the independent directors;

a. fulfil the conditions specified in the Act and LODR Regulations;

b. are independent of the management; and

c. possess integrity, expertise and experience (including the proficiency in terms of Section 150(1) of the Act).

As on the date of the end of FY, the company has right proportion of Independent Directors viz a viz Non-Independent Directors as per applicable provisions of Section 149 of the Act, and LODR Regulations.

Pursuant to the provisions of Section 203 of the Act, the key managerial personnel of the Company as on March 31,2024, were as under:

Mr. Sanjiv Goyal, Chairman & Managing Director Mr. Puneet Sud, Director (Operations)

Mr. Amit Chadah, Chief Executive Officer (“CEO”)

Mr. Sushil Kapoor, Chief Financial Officer (“CFO”)

Ms. Neha Vaishnav, Company Secretary & Compliance Officer Number of meetings of the board

Four (4) meetings of the board were held during the year. The details of Directors'' attendance and meeting held during FY 2023-24 are provided in Corporate Governance Report which forms and part of this report.

Directors’ responsibility statement

The Directors confirm that:

• in the preparation of the annual accounts, the applicable accounting standards have been followed and that no material departures have been made from the same;

• 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 FY and of the profit & loss of the Company for that period;

• they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

• they have prepared the annual accounts on a going concern basis;

• they have laid down internal financial controls for the Company and such internal financial controls are adequate and operating effectively; and

• they have devised proper systems to ensure compliance with the provisions of all applicable laws and such systems are adequate and operating effectively.

Committees of the Board

The Company constituted the Committees as per the provisions of Sections 135, 177, 178 and other applicable provisions of the Act and LODR Regulations. The composition, powers and duties of the Committees, during FY 2023-24, are detailed out in the Corporate Governance Report which forms part of this report. The Board of Directors accepted all recommendations of the Audit Committee.

Policy on directors’ appointment and remuneration and other details

The Company''s policy on directors'' appointment and remuneration and other matters namely Nomination, Remuneration & Evaluation Policy as provided in Section 178(3) of the Act has been uploaded

on the website of the company at https://www.neclife.com/ files/ugd/ 6aa048 17d769b4f1064d5eadb8fb8d97a4520f.pdf. The salient features of the Policy are to provide a framework and set standards for the nomination, remuneration & evaluation of the Directors, Key Managerial Personnel and officials comprising the Senior Management. The Company aims to achieve a balance of merit, experience and skills amongst its Directors, Key Managerial Personnel and Senior Management. The criteria for Appointment of Directors/KMPs/Senior Officials are as under:

For Enhancing the competencies of the Board and attracting as well as retaining talented employees for role of KMP/a level below KMP are the basis for the NRC to select a candidate for appointment to the Board. When recommending a candidate for appointment, the NRC has regard to:

• Assessing the appointee against a range of criteria which includes but not be limited to qualifications, skills, regional and industry experience, background and other qualities required to operate successfully in the position, with due regard for the benefits from diversifying the Board;

• The extent to which the appointee is likely to contribute to the overall effectiveness of the Board, work constructively with the existing directors and enhance the efficiencies of the Company;

• The skills and experience that the appointee brings to the role of KMP/Senior Official and how an appointee will enhance the skill sets and experience of the Board as a whole;

• The nature of existing positions held by the appointee including directorships or other relationships and the impact they may have on the appointee''s ability to exercise independent judgment;

• Personal specifications such as educational qualifications, Experience, interpersonal, skills etc.;

The criteria for deciding the Remuneration of Directors, Key Managerial Personnel and Senior Management are as under:

The guiding principle is that the level and composition of remuneration shall be reasonable and sufficient to attract, retain and motivate Directors, Key Management Personnel and other senior officials.

The Directors, Key Management Personnel and other senior official''s salary shall be based & determined on the individual person''s responsibilities and performance and in accordance with the limits as prescribed statutorily, if any and other relevant factors including but not limited to market, business performance and practices in comparable companies, having due regard to financial and commercial health of the Company as well as prevailing laws and government/other guidelines.

There could be following component of Remuneration:

a) Base Compensation (fixed salaries): Must be competitive and reflective of the individual''s role, responsibility and experience in relation to performance of day-to-day activities, usually reviewed on an annual basis;

b) Variable salary: The NRC may in its discretion structure any portion of remuneration to link rewards to corporate and individual performance, fulfillment of specified improvement targets or the attainment of certain financial or other objectives set by the Board.

There is no change in the policy during FY 2023-24.

Board evaluation

Pursuant to the provisions of the Act and LODR Regulations, the evaluation of the Board involves multiple levels:

1. Board as a whole;

2. Committees of the Board;

3. Individual Directors and Chairperson, CEO, Independent

Directors, Non-independent directors, etc.

The performance of the Board and committees was evaluated by the NRC and the Board after seeking inputs from all the directors/ committee members on the basis of the criteria such as the Board/ committee composition and structure, effectiveness of board processes, information and functioning, etc.

The following information is provided in agenda papers for evaluation of:

A. Board

1. Frequency of meetings

2. Attendance by Board members

3. Duration and conduct of meetings

4. Agenda and documentation

5. Board Structure

6. Functions of the Board

7. Communications and Interaction

B. Committees

1. Size of the Committee is appropriate for the complexity & operations of the organization.

2. Effectiveness of the Committee in performing its role and discharging its responsibilities (as mandated under the Act and the LODR Regulations).

3. The Committee oversees the terms of references assigned to it/ its statutory obligations/ role defined.

4. The Committee review / approves matters of its terms of reference.

5. Agenda of the Committees are being circulated at a reasonable time in advance

6. Draft and Signed Minutes of the Committees circulated to the members of the Committee.

7. Minutes of meeting(s) of the Committee are placed before the Board regularly.

8. The Committee effectively performs support functions to the Board in fulfilling its responsibilities.

9. Overall functioning of the Committee.

C. Independent Directors, Chairman & Managing Director,

Wholetime Director and CEO:

1. Consistently and actively participated in the board and committee meetings.

2. Prepared adequately for the board/ committee meetings.

3. Contributed to strategy and other areas impacting company performance.

4. Brought their experience and credibility to bear on the critical areas of performance of the company.

5. Kept updated knowledge of their area of expertise.

6. Communicated in open and constructive manner.

7. Gave fair chance to other members to contribute, participates actively in the discussions and were consensus oriented.

8. Helped to create positive image of the company and helped the company wherever possible.

9. Actively contributed toward positive growth of the company.

10. Conducted themselves in a manner that was ethical and consistent with the laws of the land.

11. Attitude

12. Application to the job

The NRC and the Board have reviewed the performance of the individual directors and CEO on the basis of the criteria such as the contribution of the individual director to the Board and committee meetings like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in meetings, etc. In addition, the Chairman was also evaluated on the key aspects of his role. The performance evaluation forms of each of director get filled from all directors based on Knowledge, Skills, Attitude, Application to the job, Communication, Human Behavior & Teamwork and Overall Performance.

In a separate meeting of independent Directors, performance of nonindependent directors, performance of the board as a whole and performance of the Chairman and CEO was evaluated on the basis of parameters as provided above.

Internal financial control systems and their adequacy

The company has adequate financial controls. The details in respect of internal financial control and their adequacy are included in the MDA, which forms part of this report.

Auditors

M/s Deepak Jindal & Co, Chartered Accountants (Firm Registration No. 023023N) have been appointed as the Statutory Auditors of the Company in the 27^th AGM held on September 21,2022, for a period of five years commencing from the conclusion of the 27^th AGM till the conclusion of the 32^nd AGM to be held in the year 2027.

Auditors’ Report

The Report given by the M/s Deepak Jindal & Co, on the financial statements of the Company is part of the Annual Report. There has been no qualification, reservation, adverse remark or disclaimer given by the Auditors in their Report. Observations made in the Auditors’ Report are self-explanatory and therefore do not call for any further explanation.

Secretarial Auditor and Secretarial Audit Report

Secretarial Audit has been carried out by Mr. Prince Chadha of P Chadha & Associates, Practicing Company Secretary, the Secretarial Auditor of the company for FY 2023-24. The Secretarial Audit Report is appended as Annexure 4 to this report. There were no qualifications, reservation or adverse remarks given by Secretarial Auditors of the Company. Observations made in the Auditors’ Report are selfexplanatory and therefore do not call for any further explanation.

The Company has undertaken an audit for the FY 2023-24 for all applicable compliances as per SEBI Regulations and Circulars/ Guidelines issued thereunder. The Annual Secretarial Compliance Report has been submitted to the stock exchanges within 60 days of the end of the FY and also available on the website of the Company at www.neclife.com.

Cost Records and Audit

The Company is required to maintain cost records as specified by the Central Government under sub-section (1) of section 148 of the Act and accordingly such accounts and records are made and maintained.

The Cost Auditor has submitted the Cost Audit Report for FY 202223 on August 14, 2023, which has been filed on September 09, 2023, within the prescribed time.

The Cost Auditor will forward the Cost Audit Report for FY 2023-24 by September 27, 2024. The report will be filed with the Ministry of Corporate Affairs within 30 days of the date of Cost Audit Report.

The company has appointed Dr. Vimal Kumar Aggarwal (Membership No. 9982) prop. of M/s V. Kumar and Associates, SCF 13, GF, VIP Galleria Market, VIP Road, Zirakpur, SAS Nagar (Mohali) Punjab-140603, Cost and Works Accountants as the Cost Auditors of the Company for FY 2024-25.

Report by Auditors under Section 143(12) of the Act

None of the Auditors have reported any fraud under sub-section (12) of section 143 of the Act to the Audit Committee or the Board.

Risk management

The development and implementation of risk management policy has been covered in the MDA, which forms part of this report.

The audit committee has additional oversight in the area of financial risks and controls. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis.

Particulars of loans, guarantees and investments

The company has not given any loan or provided guarantee or security as per Section 186 of the Act, however, the amount receivable from subsidiaries, if any, and the investments under section 186 of the Act are given in the Financial Statements forming part of the Annual Report.

Transactions with related parties

Information on transactions with related parties pursuant to Section 134(3)(h) of the Act read with rule 8(2) of the Companies (Accounts) Rules, 2014 are given in Annexure 5 in Form AOC-2 and the same forms part of this report. Further details about these transactions are provided in Report on Corporate Governance and Financial Statements forming part of the Annual Report.

Corporate social responsibility

The information as required under Section 135 of the Act and Companies (Corporate Social Responsibility Policy) Rules, 2014 (“CSR Rules”), the brief outline of the Corporate Social Responsibility (“CSR”) Policy of the Company and the initiatives undertaken by the Company on CSR activities during the year are set out in Annexure 6 of this report in the format prescribed in the CSR Rules. The CSR policy is available on the website of the Company.

Annual Return and Extract of annual return

As provided under Section 92(3) of the Act, the Annual Return (MGT-7) is also available on the website of the company at

https://www.neclife.com/ files/ugd/6aa048 1f53766dbbaa4c8da24825f1a8b04cef.pdf.

Employees

The information required under Section 197 of the Act read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is attached as Annexure 7. In terms of proviso to Section 136 of the Act, the Report and Accounts are being sent to the Members and others entitled thereto, excluding the information on employees’ particulars as required pursuant to provisions of Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. The said information is available for inspection by the Members at the Registered Office of the Company during business hours on working days of the Company up to the date of the ensuing AGM. If any Member is interested in obtaining a copy thereof, such Member may write to the Company Secretary in this regard. This information is also available on the website of the Company(URL: www.neclife.com).

Deposits from Public

The Company has not accepted any deposits from public within the meaning of Sections 73 and 74 of the Act and extant Rules framed thereunder during the financial year 2023-24 and, as such, no amount on account of principal or interest on deposits from public was outstanding as on the date of this report.

Significant and Material Orders passed by the Regulators or Courts or Tribunals impacting the going concern status and Company’s operations in future

There were no significant and material orders passed by the Regulators or Courts or Tribunals impacting the going concern status and Company’s operations in future.

The details of difference between amount of the valuation done at the time of one time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof.

The Company has not made any one-time settlement for loans taken from the Banks or Financial Institutions during the financial year under review. Therefore, it is not applicable.

Disclosure requirements

• Details of the familiarization programme of the independent directors are available on the website of the Company (URL: https://www.neclife.com/about-3-11).

• Policy for determining material subsidiaries of the Company is available on the website of the Company (URL: https://www.neclife.com/_files/ugd/6aa048_64ca0809f242486f99ce21aedbbff190.pdf).

• Policy on dealing with related party transactions is available on the website of the Company (URL: https://www.neclife.com/ _files/ugd/6aa048_3f0a10d3dced4c64a72545b94352b187.pdf).

• The Whistle Blower Policy to provide Vigil Mechanism for employees including directors is available on the website of the Company (URL: https://www.neclife.com/_files/ugd/ 6aa048_cafe48f72d7144a5928e793ccdbe532d. pdf).

Committee and Policy against Sexual Harassment of women at Workplace

The company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of

Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“POSH Act”).

The company has made the Policy for Prevention of Sexual Harassment (“POSH Policy”) under POSH Act for all individuals working for the Company at all levels and grades, including senior executives, officers, employees (whether permanent, fixed term or temporary), consultants, contractors, trainees, staff, casual workers, interns. As per policy any aggrieved woman employee who feels and is being sexually harassed directly or indirectly may make a complaint of the alleged incident to any member of the Committee constituted for this purpose.

Disclosures in relation to the POSH Act:

a. number of complaints pending as on April 01,2023 - NIL

b. number of complaints filed during the FY 2023-24 - NIL

c. number of complaints disposed of during the FY 2023-24 - N.A.

d. number of complaints pending as on March 31,2024 - N.A. Energy, technology and foreign exchange

The particulars relating to conservation of energy, technology absorption, foreign exchange earnings and outgo, as required to be disclosed under the Act, are provided in Annexure 8 to this Report.

Acknowledgement

Your Directors would like to express their sincere and grateful appreciation for the assistance and cooperation received from bankers and government authorities and also thank the shareholders for the confidence reposed by them in the Company and looking forward to their valuable support in the future plans of the Company.

Your Directors also thank its agents, the medical professionals and its customers for their continued patronage to the Company’s products.

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Mar 31, 2018

Board of Directors'' Report of Nectar Life sciences Limited

Dear members,

The Directors have pleasure in presenting the 23^rd Annual Report together with the audited accounts of Nectar Life sciences Limited (‘NLL'' or ‘Neclife'' or ‘Nectar'' or ‘the Company'') for the financial year ended March 31, 2018.

Financial results

(Rs. in millions)

	March 31, 2018	March 31, 2017
Gross Sales (Including GST)	20,923.19	17,436.27
Other Income	60.36	226.57
Profit before interest and depreciation	2,420.77	2,468.77
Interest	1,152.02	1,174.13
Depreciation & Amortization	643.09	622.51
Profit before tax	625.66	672.13
Tax expenses	104.12	120.79
Profit after tax	521.54	551.34
Other Comprehensive income (Net of Taxes)	10.97	0.2
Profit after tax available for Appropriations	532.51	551.54

Company’s performance

The company''s revenue during FY18 stood at Rs. 2092 Crores against Rs. 1744 Crores in previous year recording a strong growth of 20%. Finance cost decreased by 2% in this financial year to Rs. 115 Crores. Input cost has gone up significantly on the account of huge increase in the raw material costs which resulted into decrease in operational profit of the company for this financial year. The Profit After Tax has decreased by 6% as compared to last year due to high input costs and price erosion in the domestic market.

The financial results of the company for the quarter ended on June 30, 2017 are available on the website of the company (URL: www.neclife.com).

Indian Accounting Standards (IndAS) and Secretarial Standards

The company has adopted Indian Accounting Standards (Ind AS) prescribed under section 133 of the Companies Act, 2013, read with the relevant rules issued there under and accordingly, standalone and consolidated audited financial statements have been prepared in accordance with the recognition and measurement principles laid down in Ind AS 34 “Interim Financial Reporting” and the other accounting principles generally accepted in India.

The Company is in Compliance of Secretarial Standards as issued by Institute of Company Secretaries of India.

Management Discussion and Analysis Report

The details of the Company''s various operations and state of affairs and nature of business are discussed under Management Discussion and Analysis Report. The Management Discussion and Analysis of financial condition and result of operations of the Company for the year under review as required under Securities & Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR Regulations”), is given as Annexure 1 and forms and part of this report.

Corporate Governance

The Company aimed to conduct its affairs in an ethical manner. A separate Report on Corporate Governance is given as Annexure 2 and forms and part of this report. A certificate from the Company’s Auditors regarding the Compliance of Conditions of Corporate Governance as stipulated under LODR Regulations is given in Annexure 3.

Share capital

The paid up equity share capital as on March 31, 2018 was Rs. 224.26 Millions. There was no public issue, rights issue, bonus issue or preferential issue, etc. during the year. The Company has not issued shares with differential voting rights, sweat equity shares, nor has it granted any stock options.

Global Depository Receipts (GDRs)

The Company has issued and allotted 46,000,000 equity shares of Rs. 1/- each underlying 46,000,000 Global Depository Receipts (GDRs). The GDRs are listed on:

Luxembourg Stock Exchange/ LuxSE Societe de la Bourse de Luxembourg S.A.

B.P 165, L-2011 Luxembourg Siege social, 11, av de la Porte-Neuve,

Telephone: [phone] - 1, Fax: [phone]

Subsidiary companies

The company has a wholly owned subsidiaries namely Nectar Life sciences UK Limited, incorporated in United Kingdom and Nectar Life sciences US, LLC in United States. There are negligible investments in Nectar Life sciences UK Limited and no business activity has been carried out in it in financial year 2017-18 and till date in financial year 2018-19. Therefore, nothing is to report on the performance and financial position of Nectar Life sciences UK Limited.

However, the Nectar Life sciences US, LLC commenced the business operations of trading of pharmaceutical products. The company''s gained the profit of US$ 10387.20 during the year under review as compared to profit of US$ 16077.72 during last year.

Pursuant to the provisions of Section 129(3) of the Companies Act, 2013 (hereinafter referred as ‘Act''), a statement containing salient features of financial statements of subsidiaries, associates and joint venture companies in Form AOC-1 is attached to the Financial Statements. The separate financial statements in respect of each of the subsidiary companies shall be kept open for inspection at the Registered Office of the Company during working hours for a period of 21 days before the date of the Annual General Meeting (AGM). Your Company will also make available these documents upon request by any Member of the Company interested in obtaining the same. The separate audited financial statements in respect of each of the subsidiary companies are also available on the website of your Company at www.neclife.com.

None of the subsidiaries is material as per Policy for determining Material Subsidiaries of the Company and LODR Regulations.

Consolidated financial Statements

As required under Section 129 of the Act and LODR Regulations, a consolidated financial statements for the year ended on March 31, 2018 of the Company are attached.

Dividend

Your Directors are pleased to recommend a Final Dividend @ 5% i.e. Re. 0.05/- per equity shares of face value of Re. 1/- each aggregating to Rs. 11,213,048.50 for the year ended 31st March, 2018. The final dividend, subject to the approval by the shareholders in the forthcoming Annual General Meeting and if declared, will be paid on or after October 3, 2017, to those members whose names appears in the register of members as on date of book closure. The register of members and the share transfer books of the Company will remain closed from September 22, 2018 to September 28, 2018 (Both days inclusive) for Annual General Meeting and payment of dividend, if declared, on equity shares.

Your Directors are not proposing to carry any amount to any reserve. Directors and Key Managerial Persons

Mr. Sanjiv Goyal (DIN - 00002841), Director will retire by rotation in the forthcoming Annual General Meeting and being eligible, offer himself for reappointment. The Board recommends his reappointment as a Director.

Dr. Dinesh Dua has been re-appointed as Whole time Director designated as Chief Executive Officer & Director by the Board of Directors in their meeting held on August 07, 2018 w.e.f. October 14, 2018 for a period of One year. The Board recommends his reappointment as a Whole time Director.

Pursuant to the provisions of Regulation 17A of LODR Regulations, approval of the members by way of a special resolution is required, effective from April 01, 2019, for appointment of a person who has attained the age of 75, as Non-Executive Director and to continue the existing tenure of a Non- Executive Director of a Company. Dr. (Maj. Gen.) Shamsher Singh Chauhan, VSM, Non-Executive Independent Director, has already attained the age of 75 years. Considering the amendment made to the LODR Regulations, the Board at its meeting held on August 07, 2018, on basis recommendation of the Nomination and Remuneration Committee, proposed seeking consent of the members by way of special resolution for continuation of office of directorship of Dr. (Maj. Gen.) Shamsher Singh Chauhan, VSM, in the Non-Executive Independent category, for the remaining period of current tenure of appointment. The Board recommends the special resolution for continuing him as a Director.

Mr. Vijay J. Shah (DIN - 00747226), an Independent Director of the Company, due to certain eventualities, had not attended all the meetings of the Board of Directors of the Company held during the period of twelve months from June 27, 2017 to June 27, 2018. Accordingly, in view of the provisions of Section 167(1)(b) of the Companies Act, 2013, his office of Director in the Company had become vacant on June 27, 2018 i.e. he was ceased to be director on that date. As per SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 (LODR Regulations), the ceased independent director has to be replaced by a new independent director by listed entity at the earliest but not later than the immediate next meeting of the board of directors or three months from the date of such vacancy, whichever is later.

Based on recommendation of Nomination and Remuneration Committee, the Board of Directors on August 07, 2018, appointed Mr. Vijay J. Shah as an Additional Director in the capacity of Independent Director and he vacates his office at the ensuing Annual General Meeting. The Nomination and Remuneration Committee also proposed to re-appoint him as regular independent director for a second term. The Board recommends the appointment of Mr. Vijay J. Shah as regular independent director for a period up to August 07, 2023 for a second term.

As on the date of this report, the company has right proportionate of Independent Directors viz a viz Non-Independent Directors as per applicable provisions of Section 149 of the Act, and LODR Regulations.

The Company has received declarations from all the Independent Directors of the Company confirming that they meet with the criteria of independence as prescribed both under sub-section (6) of Section 149 of the Act, and under LODR Regulations.

Mr. Sunder Lal ceases to be the Company Secretary of Nectar Life sciences Limited upon his superannuation and relieved with effect from June 26, 2017. Further, Mr. Suk winder Singh has been appointed as Company Secretary and Compliance Officer of the company from July 1, 2017 and has been elevated to some other department and ipso facto ceased to be a Company Secretary and Compliance Officer of the company w.e.f. November 08, 2017. Thereafter, in Board Meeting held on November 11, 2017, Ms. Ankita Jain has been appointed as Company Secretary and Compliance Officer of the company with effect from that date.

Pursuant to the provisions of Section 203 of the Act, the key managerial personnel of the Company as on March 31, 2018 are as under:

Mr. Sanjiv Goyal, Chairman & Managing Director

Mr. Dinesh Dua, Whole time Director designated as Chief Executive Officer & Director

Mr. Harparkash Singh Gill, Whole time Director designated as President (Operations) & Director

Mr. Sandeep Goel, Chief Financial Officer

Ms. Ankita Jain, Company Secretary

Number of meetings of the board

Six meetings of the board were held during the year. The details of Directors and meeting held during the financial year 2017-2018 are provided in Corporate Governance Report which forms and part of this report.

Directors’ responsibility statement

The Directors confirm that:

- in the preparation of the annual accounts, the applicable accounting standards have been followed and that no material departures have been made from the same;

- 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 profits of the Company for that period;

- they have taken proper and sufficient care 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;

- they have prepared the annual accounts on a going concern basis;

- they have laid down internal financial controls for the Company and such internal financial controls are adequate and operating effectively; and

- they have devised proper systems to ensure compliance with the provisions of all applicable laws and such systems are adequate and operating effectively.

Board evaluation

Pursuant to the provisions of the Act, and the corporate governance requirements as prescribed by LODR Regulations, the performance of the Board and committees was evaluated by the Board after seeking inputs from all the directors/ committee members on the basis of the criteria such as the Board/ committee composition and structure, effectiveness of board processes, information and functioning, etc.

The Board and the Nomination and Remuneration Committee (“NRC”) reviewed the performance of the individual directors on the basis of the criteria such as the contribution of the individual director to the Board and committee meetings like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in meetings, etc. In addition, the Chairman was also evaluated on the key aspects of his role.

In a separate meeting of independent Directors, performance of no independent directors, performance of the board as a whole and performance of the Chairman was evaluated. The same was discussed in the board meeting that followed the meeting of the independent Directors, at which the performance of the Board, its committees and individual directors was also discussed.

Policy on directors’ appointment and remuneration and other details

The Company''s policy on directors'' appointment and remuneration and other matters namely Nomination Remuneration and Evaluation Policy as provided in Section 178(3) of the Act has been uploaded on the website of the company at http://www.neclife.com/public/ uploads/1533716025839470625.pdf.

Committees of the Board

The Company constituted the Committees as per the provisions of Sections 177 and 178 of the Act and LODR Regulations. The composition, powers and duties of the Committees, during financial year 2016-17, are detailed out in the Corporate Governance Report. The Board of Directors accepted all recommendations of the Audit Committee.

Internal financial control systems and their adequacy

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

Auditors and Auditors’ Report

M/s Ashwani K. Gupta & Associates, Chartered Accountants (ICAI Registration No. 003803N) were appointed as Statutory Auditors of your Company at the Annual General Meeting held on September 28, 2017 for a term of five consecutive years. In accordance with the Companies Amendment Act, 2017, enforced on 7th May, 2018 by the Ministry of Corporate Affairs, the appointment of Statutory Auditors is not required to be ratified at every Annual General Meeting.

The Report given by the Auditors on the financial statements of the Company is part of the Annual Report. There has been no qualification, reservation, adverse remark or disclaimer given by the Auditors in their Report.

Secretarial Auditor and Secretarial Audit Report

During the year, Secretarial Audit was carried out by Mr. Prince Chadha of P. Chadha & Associates., Practicing Company Secretary, the Secretarial Auditor of the company for the Financial Year 201718. There were no qualifications, reservation or adverse remarks given by Secretarial Auditors of the Company. The Secretarial Audit Report is appended as an Annexure 4 to this report.

However, there is a note on late submission of audited financial results for the year ended on March 31, 2018 by the Secretarial Auditor, which is self-explanatory. The company had submitted the audited financial results for the year ended on March 31, 2017 on June 27, 2017 which was 28 days after the prescribed period that was expired on May 30, 2017. National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) had imposed fine on the company for late submission of said financial results. The company had deposited the fine along with service tax, wherever applicable, which was acknowledged by NSE and BSE. Since, the company has regularized the lapse by paying the fine; no more comments from Directors are required. The company has complied all other provisions of LODR Regulations.

Cost Records and Audit

The Company is required to maintain of cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013 and accordingly such accounts and records are made and maintained.

The company has appointed Dr. Vimal Kumar (Membership No. 9982) prop. of M/s V. Kumar and Associates, SCO, 124-125, Sector 34A, Chandigarh, Cost and Works Accountants as the Cost Auditors of the Company for the financial year 2017-18.

The Cost Audit Reports for the financial year 2016-17 have been filed on October 7, 2017 being within 56 days of date of report i.e. August 12, 2017 with late filing fee. However, the last date of cost audit report was extended to December 31, 2017 by Ministry of Corporate Affairs vide circular dated December 04, 2017.

The Cost Auditor shall forward the Cost Audit Report for the financial year 2017-18 by September 30, 2018. The report will be filed with Ministry of Corporate Affairs within 30 days of date of Cost Audit Report.

Risk management

The development and implementation of risk management policy has been covered in the management discussion and analysis, which forms part of this report.

Though not mandatory, the Company has constituted a Risk Management Committee with Mr. Dinesh Dua as the Chairman and Mr. Harparkash Singh as a member to, inter-alia:

- to formulate and recommend to the Board, a Risk Management Policy which shall indicate the activities such as identification of risks and mitigation strategy thereof;

- to recommend the Board about risk assessment and minimization procedures ; and

- monitoring and reviewing of the risk management plan to the Board.

The audit committee has additional oversight in the area of financial risks and controls. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis.

Particulars of loans, guarantees and investments

The company has not given any loan or provide guarantee as per Section 186 of the Act, however, the amount receivable from subsidiaries and the investments under section 186 of the Act are given in the Financial Statements forming part of the Annual Report.

Transactions with related parties

Information on transactions with related parties pursuant to Section 134(3)(h) of the Act read with rule 8(2) of the Companies (Accounts) Rules, 2014 are given in Annexure 5 in Form AOC-2 and the same forms part of this report.

Corporate social responsibility

The brief outline of the Corporate Social Responsibility (CSR) Policy of the Company and the initiatives undertaken by the Company on CSR activities during the year are set out in Annexure 6 of this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. The policy is available on the website of the Company.

Extract of annual return

As provided under Section 92(3) of the Act, the extract of annual return is given in Annexure 7 in the prescribed Form MGT-9, which forms part of this report. The extract of annual return in MGT-9 and annual return in MGT-7 are also available on the website of the company at http://www.neclife.com/public/uploads/1533896433653228884.pdf and http://www.neclife.com/public/ uploads/15341562752035896430.pdf, respectively.

Employees

The information required under Section 197 of the Act read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is attached as Annexure 8. In terms of first proviso to Section 136 of the Act, the Report and Accounts are being sent to the Members and others entitled thereto, excluding the information on employees'' particulars as required pursuant to provisions of Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. The said information is available for inspection by the Members at the Registered Office of the Company during business hours on working days of the Company up to the date of the ensuing AGM. If any Member is interested in obtaining a copy thereof, such Member may write to the Company Secretary in this regard.

Fixed deposits

During the year under Report, your Company did not accept any deposits from the public in terms the provisions of Companies Act, 2013.

Disclosure requirements

- As per LODR Regulations, corporate governance report with auditors'' certificate thereon and management discussion and analysis are attached, which form part of this report.

- Details of the familiarization programme of the independent directors are available on the website of the Company (URL: www.neclife.com).

- Policy for determining material subsidiaries of the Company is available on the website of the Company (URL: www.neclife.com).

- Policy on dealing with related party transactions is available on the website of the Company (URL: www.neclife.com).

- The Whistle Blower Policy to provide Vigil Mechanism for employees including directors of the Company (URL: www.neclife.com).

Committee and Policy against Sexual Harassment at Workplace

The company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

The company has made the Anti-Sexual Harassment Policy under above referred Act for all individuals working for Nectar at all levels and grades, including senior executives, officers, employees (whether permanent, fixed-term or temporary), consultants, contractors, trainees, staff, casual workers, interns. As per policy any aggrieved woman employee who feels and is being sexually harassed directly or indirectly may make a complaint of the alleged incident to any member of the Committee constituted for this purpose.

No complaint of sexual harassment has been received from any women employee during the financial year ended on March 31, 2018.

Energy, technology and foreign exchange

The particulars relating to conservation of energy, technology absorption, foreign exchange earnings and outgo, as required to be disclosed under the Act, are provided in Annexure 9 to this Report.

Acknowledgement

Your Directors would like to express their sincere and grateful appreciation for the assistance and cooperation received from bankers and government authorities and also thank the shareholders for the confidence reposed by them in the Company and looks forward to their valuable support in the future plans of the Company.

Your Directors also thank its agents, the medical professionals and its customers for their continued patronage to the Company''s products.

For and on behalf of the Board of Directors of

Nectar Lifesciences Limited

Dated : 07-08-2018 (Sanjiv Goyal)

Place : Chandigarh Chairman and Managing Director

---

Mar 31, 2015

Dear members,

The Directors have pleasure in presenting the 20th Annual Report together with the audited accounts of Nectar Lifesciences Limited ('NLL' or 'Neclife' or' Nectar'or'the Company') for the financial year ended March 31,2015.

Financial results

March 31,2015 March 31,2014

Gross Turnover 17463.86 17203.55

Profit before interest and depreciation 2869.06 3003.96

Interest 1255.88 1379.87

Depreciations, Amortisation 765.64 841.86

Profit before tax 847.54 782.23

Tax Expenses 184.90 161.43

Profit after tax available for Appropriations 662.64 620.80

Final dividend 10% (Previous year 10%) 22.43 22.43

Tax on dividend 4.57 3.81

Depreciation relating to earlier years 321.06 -

Transfer to general reserve - -

Prior Period Adjustments 5.71 -

Balance c/f to balance sheet 314.58 594.56

Note: Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II/Accounting Standard issued by The Institute of Chartered Accountants of India. Accordingly, the unamortised carrying value is being depreciated/amortised over the revised / remaining useful life. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 (net of deferred tax) has been deducted from the Retained Earnings.

Company's performance

Overall, Active Pharmaceutical Ingredients (APIs) witnessed a tremendous increase in business. However, compared with steep pharmaceuticals growth curve, Phyto chemicals (Menthol) performance during FY 2014-15 witnessed a roller coaster ride which was consciously attributed to a strategic shift in business option. This de-growth in menthol was primarily owing to the following reasons:

- Company's decision to cater to high value Pharmaceutical products

- High Market fluctuations led to lower natural menthol demands.

Despite the, above, the Gross revenues increased to Rs. 17463.86 Million, a growth of around 1.51% against Rs. 17203.55 Million in the previous year. Profit before depreciation and taxation was Rs. 2869.06 Million against Rs. 3003.96 Million in the previous year. The Profit before Tax increased to Rs. 847.54 Million, a growth of around 8.35% against Rs. 782.23 Million in the previous year, due to effective cost management. The Profit after Tax increased to Rs. 662.64 Million, a growth of around 6.74% against Rs. 620.80 Million in the previous year.

The financial results of the company for the quarter ended on June 30, 2015 are available on the website of the company (URL: www.neclife.com).

Management Discussion and Analysis Report

The details of the Company's various operations and state of affairs and nature of business are discussed under Management Discussion and Analysis Report. The Management Discussion and Analysis of financial condition and result of operations of the Company for the financial year 2014-15 as required under the Clause 49 of the Listing Agreement with the stock exchanges, is Given as Annexure I and forms and part of this report.

Corporate Governance

The Company aimed to conduct its affairs in an ethical manner. A separate Report on Corporate Governance is given as Annexure 2 and forms and part of this report. A certificate from the Company's Auditors regarding the Compliance of Conditions of Corporate Governance as stipulated under Clause 49 of the Listing Agreement is given in Annexure 3.

Global Depository Receipts (GDRs)

The Company has issued and allotted 46,000,000 equity shares of Rs. 1/- each underlying 46,000,000 Global Depository Receipts (GDRs).The GDRs are listed on:

Luxembourg Stock Exchange/LuxSE Societede la Bourse deLuxembourg S.A. B.P. 165, L-2011 Luxembourg Siegesocial,II,avdela Porte-Neuve, Telephone:[phone]-l,Fax: [phone]

Subsidiary companies

The company has a wholly owned subsidiary namely Nectar Lifesciences UK Limited, incorporated in United Kingdom. During the year under review, the company has also incorporated Nectar Lifesciences US, LLC in United States. There are negligible investments in these subsidiaries and no business activity has been carried out in these subsidiaries in financial year 2014-15 and till date infinancialyear2015-16.Therefore,nothingisto report on the performance and financial position of these subsidiaries.

Pursuant to the provisions of Section 129(3) of the Companies Act, 2013 (hereinafter referred as 'Act'), a statement containing salient features of financial statements of subsidiaries, associates and joint venture companies in Form AOC-1 is attached to the Accounts. The separate financial statements in respect of each of the subsidiary companies shall be kept open for inspection at the Registered Office of the Company during working hours for a period of 21 days before the date of the Annual General Meeting. Your Company will also make available these documents upon request by any Member of the Company interested in obtaining the same. The separate audited financial statements in respect of each of the subsidiary companies are also available on the website of your Company at www.neclife.com.

Consolidated financial results

As required under Section 129 of the Act and Listing Agreement with the stock exchanges, a consolidated financial statements for the year ended on March 31,2015 of the Company are attached.

Dividend

Your Directors are pleased to recommend a Final Dividend @ 10% i.e. Re. 0.10/- per equity shares of face value of Re. 1/- each aggregating to Rs. 22,426,097/- for the year ended 31st March, 2015. The final dividend, subject to the approval by the shareholders in the forthcoming Annual General Meeting and if declared, will be paid on or after October 4,2015, to those members whose names appears in the register of members as on date of book closure. The register of members and the share transfer books of the Company will remain closed from September 24, 2015 to September 30, 2015 (Both days inclusive) for Annual General Meeting and payment of dividend, if declared, one quity shares.

Your Directors are not proposing to carry any amount to any reserve.

Directors and Key Managerial Persons

During the year under review, Mr. Aryan Goyal, Executive Director has resigned from Board with effect from November 12, 2014 and Mr. Basant Kumar Goswami IAS (Retd.), Independent Director has resigned from Board with effect from March 30,2015.

Members may please note the pursuant to Facility Agreement, the Export and Import Bank of India have appointed Ms. Rima Marphatia as their nominee director on the Board of Directors of the company with effect from August 11, 2014 and withdrawn her nomination with effect from Decembers, 2014.

Mr. Sanjiv Goyal, Director will retire by rotation in the forthcoming Annual General Meeting and being eligible, offer himself for reappointments Board recommends his reappointment.

Further, on February 13, 2015 Mrs. Neena Singh has been appointed as Additional Independent Director and vacates her office at the ensuing Annual General Meeting.

As on the date of this report, the company has right proportionate of Independent Directors viz a viz Non Independent Directors as per applicable provisions of Section 149 of the Act, and clause 49 of the Listing Agreement.

The Company has received declarations from all the Independent Directors of the Company confirming that they meet with the criteria of independence as prescribed both under sub-section (6) of Section 149 of the Act, and under Clause 49 of the Listing Agreement with the Stock Exchanges.

Mr. Sandeep Goel, Vice President (Finance) has been designated as Chief Financial Officer of the Company.

Pursuant to the provisions of Section 203 of the Act, which came into effect from April 1, 2014, the key managerial personnel of the Company are asunder:

Mr. Sanjiv Goyal, Chairman & Managing Director

Mr. Dinesh Dua, Wholetime Director designated as Chief Executive Officers Director

Mr. Harparkash Singh Gill, Whole time Director designated as President (Operations) & Director

Mr.Sandeep Goel, Chief Financial Officer

Mr.SunderLal, Company Secretary

Number of meetings of the board

Four meetings of the board were held during the year. The details of Directors and meeting held during the financial year 2014-2015 are provided in Corporate Governance Report which forms and part of this report.

Directors' responsibility statement

The Directors confirm that:

i) in the preparation of the annual accounts, the applicable accounting standards have been followed and that no material departures have been made from the same;

ii) 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 profits of the Company for that period;

iii) they have taken proper and sufficient care 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;

iv) they have prepared the annual accounts on a going concern basis;

v) they have laid down internal financial controls for the Company and such internal financial controls are adequate and operating effectively; and

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

Board evaluation

Pursuant to the provisions of the Act, 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 performance of the Board and committees was evaluated by the Board after seeking inputs from all the directors/ committee members on the basis of the criteria such as the Board/ committee composition and structure, effectiveness of board processes, information and functioning, etc.

The Board and the Nomination and Remuneration Committee ("NRC") reviewed the performance of the individual directors on the basis of the criteria such as the contribution of the individual director*, the Board and committee meetings like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in meetings, etc. In addition, the Chairman was also evaluated on the key aspects of his role.

In a separate meeting of independent Directors, performance of non-independent directors, performance of the board as a whole and performance of the Chairman was evaluated. The same was discussed in the board meeting that followed the meeting of the independent Directors, at which the performance of the Board, its committees and individual directors was also discussed.

Policy on directors' appointment and remuneration and other details

The Company's policy on directors' appointment and remuneration and other matters provided in Section 178(3) of the Act has been disclosed in the corporate governance report, which forms part of the directors' report.

Committees of the Board

The Company constituted the Committees as per the provisions of Sections 177 and 178 of the Act and Clause 49 of the Listing Agreement. The composition, powers and duties of the Committees, during financial year 2014-15, are detailed out in the Corporate Governance Report. The Board of Directors accepted all Recommendations of the Audit Committee.

Internal financial control systems and their adequacy

The company has adequate financial controls. The details in respect of internal financial control and their adequacy are included in the Management Discussions Analysis, which forms part of this report.

Auditors and Auditors' Report

M/s Datta Singla & Co., Chartered Accountants, Statutory Auditors of the Company, hold office till the conclusion of the ensuing Annual General Meeting (AGM) and are eligible for re-appointment. The Company has received a confirmation from them to the effect that their reappointment, if made, would be within the prescribed limits under Section 141(3)(g) of the Act and the provisions of the Companies (Audit and Auditors) Rules, 2014 and that they are not disqualified for re-appointment.

Since M/s Datta Singla & Co., Chartered Accountants, have been functioning as the auditors of the Company for more than 10 years, in accordance with the aforesaid rules, the Audit Committee and the Board of Directors have recommended the re-appointment of auditors for a period of one year.

Observations made in the Auditors' Report are self-explanatory and There fore do not call for any further explanation.

Secretarial Auditor and Secretarial Audit Report

During the year, Secretarial Audit was carried by Mr. Aseem Chhabra Of Aseem Chhabra & Associates., Practicing Company Secretary, the Secretarial Auditor of the company for the Financial Year 2014-15. There were no qualifications, reservation or adverse remarks given by Secretarial Auditors of the Company. The Secretarial Audit Report is appended as an Annexure 4 to this report.

Cost Audit

The company, with the approval of Central Government, has appointed Dr. Vimal Kumar (Membership No. 9982) prop, of M/s V. Kumar and Associates, SCO, 124-125, Sector 34A, Chandigarh, Cost and Works Accountants as the Cost Auditors of the Company for the financialyear2015-16.

The Cost Audit Reports for the financial year 2013-14 have been filed on September 29,2014, being on due date.

The Due date for filing of Cost Audit Reports for the financial year 2014-15 is September 13, 2015. The report will be filed before due date.

Prevention of Sexual Harassment at Workplace

As per the requirement of The Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 and Rules made thereunder, your Company has constituted Complaints Committees. During the year, No complaint with allegations of sexual harassment was filed with the Company.

Risk management

The Board of the Company has formed a risk management committee:

(a) to formulate and recommend to the Board, a Risk Management Policy which shall indicate the activities such as identification of risks and mitigation strategy thereof;

(b) to recommend the Board about risk assessment and minimization procedures; and

(c) monitoring and reviewing of the risk management plan to the Board.

The audit committee has additional over sight in the area of financial risks and controls. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis.

The development and implementation of risk management policy has been covered in the management discussion and analysis, which forms part of this report.

Particulars of loans, guarantees and investments

The company has not given any loan or provide guarantee as per Section 186oftheAct.Theinvestmentsundersection 186 of the Act are given in the notes to the Financial Statements forming part of the Annual Report.

Transactions with related parties

Information on transactions with related parties pursuant to Section 134(3)(h) of the Act read with rule 8(2) of the Companies (Accounts) Rules, 2014 are given in Annexure 5 in Form AOC-2 and the same forms part of this report.

Corporate social responsibility

The brief outline of the Corporate Social Responsibility (CSR) Policy of the Company and the initiatives undertaken by the Company on CSRactivitiesduringtheyeararesetoutinAnnexure6ofthis report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. The policy is available on the website of the Company.

Extract of annual return

As provided under Section 92(3) of the Act, the extract of annual return is given in Annexure 7 in the prescribed Form MGT-9, which forms part of this report.

Employees

The information required under Section 197 of the Act read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is attached as Annexure 8. The statement containing particulars of employees as required under Section 197(12) of the Act read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is provided in a separate annexure forming part of this report. Further, the report and the accounts are being sent to the members excluding the aforesaid annexure. In terms of Section 136 of the Act, the said annexure is open for inspection at the Registered Office of the Company. Any shareholder interested in obtaining a copy of the same may write to the Company Secretary.

Fixed deposits

During the year under Report, your Company did not accept any deposits from the public in terms the provisions of Companies Act, 2013.

Disclosure requirements

As per Clause 49 of the listing agreements entered into with the stock exchanges, corporate governance report with auditors' certificate thereon and management discussion and analysis are attached, which form part of this report.

Details of the familiarization programme of the independent directors are available on the website of the Company (URLwww.neclife.com).

Policy for determining material subsidiaries of the Company is available on the website of the Company (URL: www.neclife.com).

Policy on dealing with related party transactions is available on the website of the Company (URL: www.neclife.com).

The Company has formulated and published a Whistle Blower Policy to provide Vigil Mechanism for employees including directors of the Company to report genuine concerns. The provisions of this policy are in line with the provisions of the Section 177(9) of the Act and the revised Clause 49 of the Listing Agreements with stock exchanges. The Policy is available on:(URL: www.neclife.com).

Energy, technology and foreign exchange

The particulars relating to conservation of energy, technology absorption, foreign exchange earnings and outgo, as required to be disclosed under the Act, are provided in Annexure 9 to this Report.

Acknowledgement

Your Directors would like to express their sincere and grateful appreciation for the assistance and cooperation received from bankers and government authorities and also thank the shareholders for the confidence reposed by them in the Company and looks forward to their valuable support in the future plans of the Company. Your Directors also thank its agents, the medical professionals and its customers for their continued patronage to the Company's products.

Place: Chandigarh

Dated: August 14, 2015

For and on behalf of the Board of Directors

of Nectar Lifesciences Limited

(Sanjiv Goyal)

Chairman and Managing Director

---

Mar 31, 2014

Dear Shareholders,

The Directors have pleasure in presenting the 19th Annual Report together with the audited accounts of Nectar Lifesciences Limited (''NLL'' or ''Neclife'' or ''Nectar'' or ''the Company'') for the financial year ended March 31, 2014.

Financial results (Rs. in millions)

March 31, 2014 March 31, 2013

Sales and other income 17203.55 16907.24

Profit before interest and depreciation 3003.96 3061.20

Interest 1379.87 1154.89

Depreciation & Amortisation 841.86 759.56

Profit before tax 782.23 1146.75

Tax Expenses 161.43 290.09

Profit after tax available for Appropriations 620.80 856.66

Final dividend 10% (Previous year 10%) 22.43 22.43

Tax on dividend 3.81 3.64

Transfer to general reserve - -

Balancec/f to balancesheet 594.56 830.59

During the Year: Sales and other income are up by 1.10%. Profit before interest and depreciation is down by 1.87%. Profit after tax is down by 27.53%.

Management Discussion and Analysis Report

The details of the Company''s various operations are discussed under Management Discussion and Analysis Report. The Management Discussion and Analysis of financial condition and result of operations of the Company for the financial year 2013-14 as required under the Clause 49 of the Listing Agreement with the stock exchanges, is given as Annexure III.

Global Depository Receipts (GDRs)

GDRs : The Company has issued and allotted 46,000,000 equity shares of Rs. 1/- each underlying 46,000,000 Global Depository Receipts (GDRs). The GDRs are listed on :

Luxembourg Stock Exchange/ LuxSE Societe de la Bourse de Luxembourg S.A. B.P. 165, L-2011 Luxembourg Siege social, 11, av de la Porte-Neuve, Telephone: [phone] - 1, Fax: [phone]

Subsidiary companies

The company has a wholly owned subsidiary namely M/s Nectar Lifesciences UK Limited, incorporated United Kingdom. As of now no business activity has been carried out in this subsidiary.

In terms of the Circular no.2/ 2011 dated 8th February, 2011 issued by the Ministry of Corporate Affairs, Government of India, the Balance Sheet, Profit & Loss Account and other documents of the subsidiary companies are not required to be attached with the Balance Sheet of the company. Therefore, we have not attached said documents with this Annual Report. The said documents/details shall be made available upon request to any member of the Company and will also be made available for inspection by any member of the Company at the registered office of the Company during working hours up to the date of Annual General Meeting.

Dividend

During the current financial year the Board of Directors has recommended the final Dividend @ 10% i.e. Rs. 0.10/- per equity shares aggregating to Rs. 22,426,097/-, subject to the approval by the shareholders in the forthcoming Annual General Meeting. The register of members and the share transfer books of the Company will remain closed from August 23, 2013 to August 31, 2013 (both days inclusive) for Annual General Meeting and payment of dividend, if declared, on equity shares.

Directors

Mr. Harparkash Singh Gill, Director will retire by rotation in the forthcoming Annual General Meeting and being eligible, offer himself for reappointment. The Board recommends his reappointment.

The independent Directors of the Company Mr. Vijay J. Shah, Mr. B.K. Goswami IAS (Retd.), Mr. VivekSett, Mr. Raman Kapur, Dr. (MajGen.) S.S. Chauhan, Mr. Ajay Swaroop were liable to retire by rotation in terms of Provisions of articles of association. However, as per provisions of the Companies Act, 2013, the independent Directors are required to be appointed by Shareholders and for a term up to five consecutive years and they shall not be liable to retire by rotation. Accordingly, it is proposed to appoint them for a term of five consecutive years.

The Company has received declarations from all the Independent Directors of the Company confirming that they meet with the criteria of independence as prescribed both under sub-section (6) of Section 149 of the Companies Act, 2013 and under Clause 49 of the Listing Agreement with the Stock Exchanges.

As per the provisions of Section 152 of the Companies Act, 2013, the independent director shall not be subject to retire by rotation and out of non - independent directors not less than 2/3rd of such directors, whose period of office shall be liable to determination by retirement of directors by rotation. In the light of above-referred provisions of the Companies Act, 2013 it is desirable that the period of office of Managing/ Whole time Directors is made liable to determination by retirement of directors by rotation. Therefore, keeping in the view of current composition of the Board, it is proposed that Mr. Sanjiv Goyal and Mr. Aryan Goyal shall be the Directors, whose period of office shall be liable to determination by retirement of directors by rotation.

Further, on October 14,2013 Mr. Dinesh Dua has been appointed as Additional Director and vacates his office at the ensuing Annual General Meeting. However, the company has received a notice under section 160 of the Companies Act, 2013, from him signifying his intention to propose his candidature as a regular director of the company. Mr. Dua has also been appointed as Whole time Director designated as Chief Executive Officer & Director, subject to the approval of members in their ensuing Annual General Meeting.

The Board recommends the appointment of Mr. Dinesh Dua as regular director as well as Whole time Director designated as Chief Executive Office & Director of the company.

Members may please note the pursuant to Facility Agreement, the Export and Import Bank of India have appointed Ms. Rima Marphatia as their nominee director on the Board of Directors of the company.

Ms. Rima Marphatia, born on May 19, 1968, is a Commerce Graduate and also holds a Post Graduate Diploma in Business Management from IIM, Bangalore She has over two decades of work experience in the areas of credit, treasury operations, accounts and risk management.

The appointment of Ms. Rima Marphatia is also satisfy the requirement of appointment of woman director on the Board as per section 149 (1) of the Companies Act, 2013.

She does not hold any equity share in the Company. She is also does not have directorship and committee membership in any other company. This Statement may also be regarded as a disclosure under Clause 49 of the Listing agreement with the Stock Exchange.

Directors'' responsibility statement

Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956 with respect to Directors'' responsibility statement, your Directors confirm:

(i) That in the preparation of the accounts for the financial year ended March 31, 2014, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

(ii) That the Directors have selected such accounting policies and applied them consistently and made judgment and estimates that were 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 the year under review;

(iii) That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

(iv) That the Directors have prepared the accounts for the financial year ended March 31,2014 on a ''going concern'' basis.

Auditors

M/s Datta Singla & Co., Chartered Accountants, Statutory Auditors of the Company, hold office till the conclusion of the ensuing Annual General Meeting (AGM) and are eligible for re-appointment. The Company has received a confirmation from them to the effect that their reappointment, if made, would be within the prescribed limits under Section 141(3)(g) of the Companies Act, 2013 and the provisions of the Companies (Audit and Auditors) Rules, 2014 and that they are not disqualified for re-appointment.

Since M/s Datta Singla & Co., Chartered Accountants, have been functioning as the auditors of the Company for more than 10 years, in accordance with the aforesaid rules, the Audit Committee and the Board of Directors have recommended the re-appointment of auditors fora period of one year.

Auditors'' Report

Observations made in the Auditors'' Report are self-explanatory and therefore do not call for any further explanation.

Cost Audit

The company, with the approval of Central Government, has appointed Dr. Vimal Kumar (Membership No. 9982) prop, of M/s V. Kumar and Associates, SCO, 124-125, Sector 34A, Chandigarh, Cost and Works Accountants as the Cost Auditors of the Company for the financial year 2014-15.

The Cost Audit Reports for the financial year 2012-13 have been filed on September 30,2013, being on due date.

The Due date for filing of Cost Audit Reports for the financial year 2013-14 is September 30, 2014. The report will be filed before due date.

Committees of the Board

The Company constituted the Committees as per the provisions of Sections 177 and 178 of the Companies Act, 2013 and Clause 49 of the Listing Agreement. The composition, powers and duties of the Committees during financial year 2013-14, are detailed out in the Corporate Governance Report. The Board of Directors accepted all recommendations of the Audit Committee.

Energy, technology and foreign exchange

Information required under Section 217(l)(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the report of Board of Directors) Rules, 1988 with respect to conser- vation of energy, technology absorption and foreign exchange earnings and outgo is given in Annexure I and forms a part of this Report.

Personnel

Information pursuant to section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 as amended, forms part of the Report. However, as per the provisions of Section 219(l)(b)(iv) of the Companies Act, 1956 the Report and accounts are being sent to the share holders excluding statement of particulars of employees under Section 217(2A) of the Act. Any shareholder interested in obtaining the copy of the said statement, may write to Secretarial Department at the corporate office of the company.

The Company enjoyed cordial relations with its employees at all levels.

Fixed deposits

During the year under Report, your Company did not accept any deposits from the public in terms the provisions of Sections 58A and 58AA of the Companies Act, 1956.

Corporate Governance

The Company aimed to conduct its affairs in an ethical manner. A separate Report on Corporate Governance forms a part of the Annual Report. A certificate from the Company''s Auditors regarding the Compliance of Conditions of Corporate Governance as stipulated under Clause 49 of the Listing Agreement is given in Annexure II.

Acknowledgement

Your Directors would like to express their sincere and grateful appreciation for the assistance and cooperation received from bankers and government authorities and also thank the shareholders for the confidence reposed by them in the Company and looks forward to their valuable support in the future plans of the Company.

Your Directors also thank its agents, the medical professionals and its customers for their continued patronage to the Company''s products.

For and on behalf of the Board of Directors of Nectar Lifesciences Limited

(Sanjiv Goyal) Chairman and Managing Director

Place : Chandigarh Dated : August 11, 2014

---

Mar 31, 2012

The Directors have pleasure in presenting the 17th Annual Report together with the audited accounts of Nectar Lifesciences Limited ('NLL' or 'Neclife' or 'Nectar' or 'the Company') for the financial year ended March 31, 2012.

Financial results

(Rs. in millions)

March 31,2012 March 31,2011

Sales and other income 13644.50 11358.41

Profit before interest and depreciation 2491.90 2403.44

Interest 1029.95 740.84

Depreciation & Amortisation 607.29 461.03

Profit before tax 854.66 1201.57

Tax Expenses 122.16 162.38

Profit after tax available for Appropriations 732.50 1039.19

Final dividend 10% (Previous year 10%) 22.43 22.43

Tax on dividend 3.64 3.64

Transfer to general reserve - -

Balance c/f to balance sheet 706.43 1013.12

Operations

During the Year:

Sales and other income are up by 20.13%.

Profit before interest and depreciation is up by 3.68%.

Profit after tax has decreased due to high interest cost.

Management Discussion and Analysis Report

The details of the Company's various operations are discussed under Management Discussion and Analysis Report. The Management Discussion and Analysis of financial condition and result of operations of the Company for the financial year 2011- 12 as required under the Clause 49 of the Listing Agreement with the stock exchanges, is given as Annexure III.

Global Depository Receipts (GDRs)

GDRs: The Company has issued and allotted 46,000,000 equity shares of Rs. 1/- each underlying 46,000,000 Global Depository Receipts (GDRs). The GDRs are listed on:

Luxembourg Stock Exchange/ LuxSE

Societe de la Bourse de Luxembourg S.A.

B.P. 165, L-2011 Luxembourg

Siege social, 11, av de la Porte-Neuve,

Telephone: [phone] - 1, Fax: [phone]

Foreign currency convertible bonds

The Company had outstanding US$33,000,000 foreign currency convertible bonds (FCCBs), on April 1, 2011. The said FCCBs were redeemed on April 26, 2011 (Maturity Date), at the redemption price of 150.71% of its principal amount, as per the terms and conditions of the FCCBs issue. Therefore, the FCCBs were redeemed at an aggregate amount of US$ 49.7343 million consisting of payment of the principle amount US$33 million and accumulated premium on redemption of the FCCBs of US$ 16.7343 million.

Subsidiary companies

The company have following wholly owned subsidiaries:

1. M/s Nectar Capital Limited incorporated in Mauritius

2. M/s Nectar Lifesciences UK Limited, incorporated United Kigdom

As of now no business activity has been carried out these subsidiaries.

In terms of the Circular no.2/ 2011 dated 8th February, 2011 issued by the Ministry of Corporate Affairs, Government of India, the Balance Sheet, Profit & Loss Account and other documents of the subsidiary companies are not required to be attached with the Balance Sheet of the company. Therefore, we have not attached said documents with this Annual Report. The said documents/details shall be made available upon request to any member of the Company and will also be made available for inspection by any member of the Company at the registered office of the Company during working hours up to the date of Annual General Meeting.

However, the statement pursuant to Sections 212 of the Companies Act, 1956, in respect of the subsidiaries is given below:

Name of Financial year Date from Number of Subsidiary ending of the which it equity Company Subsidiary become shares held subsidiary and Extent of Holding

(1) (2) (3) (4)

M/s Nectar March 31, May 27, 1 ordinary Capital Limited 2012 2010 share of US$1 100%

M/s Nectar March 31, March 1, 1 ordinary Lifesciences UK 2011 2011 share of Limited GBP1 100%

Name of For financial year of Subsidiary the Subsidiary as For the previous Company financial years at 31.03.2012 since it become a subsidiary

Profits/ (losses) Profits/ (losses) so Profits/ (losses) so Profits/ so far it concerns far it concerns far it concerns the (losses) so far the members the members of members of the it concerns of the holding the holding holding company the company and company and not dealt with members of not dealt with in and dealt with in in the books of the holding the books of the books of account of the company and account of the account of holding dealt with in holding the holding company (except the books of company( except company to the extent dealt account of the to the extent with in col. 8) holding dealt with in col. company 6)

(1) (5) (6) (7) (8)

M/s Nectar NIL (Rs. 341636) NIL (Rs. 443427) Captial Limited

M/s Nectar NIL NIL NIL (Rs. 58575) Lifesciences UK Limited

Consolidated financial results

As required under the Listing Agreement with the stock exchanges, a consolidated financial statements for the year ended on March 31, 2012 of the Company are attached. Dividend

During the current financial year the Board of Directors has recommended the final Dividend @ 10% i.e. Re. 0.10/- per equity shares aggregating to Rs. 22,426,097/-,subject to the approval by the shareholders in the forthcoming Annual General Meeting. The register of members and the share transfer books of the Company will remain closed from September 22, 2012 to September 29, 2012 (both days inclusive) for Annual General Meeting and payment of dividend, if declared, on equity shares.

Directors

Dr. (Maj. Gen.) S. S. Chauhan, VSM, Mr. Raman Kapur and Mr. Saurabh Goyal, Directors will retire, by rotation, in the forthcoming Annual General Meeting and being eligible, offer themselves for reappointment. The Board recommends their reappointment.

Further, Mr. Dinesh Dua has resigned as Chief Executive Officer and Director from the company with effect from July 31, 2012.

Directors' responsibility statement

Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956 with respect to Directors' responsibility statement, your Directors confirm:

(i) That in the preparation of the accounts for the financial year ended March 31, 2012, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

(ii) That the Directors have selected such accounting policies and applied them consistently and made judgment and estimates that were 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 the year under review;

(iii) That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

(iv)That the Directors have prepared the accounts for the financial year ended March 31, 2012 on a 'going concern' basis.

Auditors

M/s Datta Singla & Co., Chartered Accountants, statutory auditors of the Company retire at the conclusion of the forthcoming Annual General Meeting and being eligible offer themselves for re-appointment.

The Audit Committee and Board of Directors recommend their re-appointment as auditors.

Auditors' Report

Observations made in the Auditors' Report are self-explanatory and therefore do not call for any further explanation.

Cost Audit

The company, with the approval of Central Government, has appointed Dr. Vimal Kumar (Membership No. 9982) prop. of M/s V. Kumar and Associates, SCO, 124-125, Sector 34A, Chandigarh, Cost and Works Accountants as the Cost Auditors of the Company for the financial years 2010-11, 2011-12 and 2012-13. The Cost Audit Reports for the financial year 2010-11 have been filed on September 30, 2011, being on due date.

The Due date for filing of Cost Audit Reports for the financial year 2011-12 is September 30, 2012. The report will be filed before due date.

Audit Committee

The Company constituted the Audit Committee as per the provisions of Section 292A of the Companies Act, 1956 and Clause 49 of the Listing Agreement. The composition, powers and duties of the Audit Committee are detailed out in the Corporate Governance Report. The Board of Directors accepted all recommendations of the Audit Committee.

Energy, technology and foreign exchange

Information required under 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 with respect to conservation of energy, technology absorption and foreign exchange earnings and outgo is given in Annexure I and forms a part of this Report.

Personnel

Information pursuant to section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 as amended, forms part of the Report. However, as per the provisions of Section 219(1)(b)(iv) of the Companies Act, 1956 the Report and accounts are being sent to the share holders excluding statement of particulars of employees under Section 217(2A) of the Act. Any shareholder interested in obtaining the copy of the said statement, may write to Secretarial Department at the corporate office of the company. The Company enjoyed cordial relations with its employees at all levels.

Fixed deposits

During the year under Report, your Company did not accept any deposits from the public in terms the provisions of Sections 58A and 58AA of the Companies Act, 1956.

Corporate Governance

The Company aims to conduct its affairs in an ethical manner. A separate Report on Corporate Governance forms a part of the Annual Report. A certificate from the Company's Auditors regarding the Compliance of Conditions of Corporate Governance as stipulated under Clause 49 of the Listing Agreement is given in Annexure II.

Acknowledgement

Your Directors would like to express their sincere and grateful appreciation for the assistance and cooperation received from bankers and government authorities and also thank the shareholders for the confidence reposed by them in the Company and looks forward to their valuable support in the future plans of the Company.

Your Directors also thank its agents, the medical professionals and its customers for their continued patronage to the Company's products.

For and on behalf of the Board of Directors

of Nectar Lifesciences Limited

Dated : August 9, 2012 (Sanjiv Goyal)

Place : Chandigarh Chairman and Managing Director

---

Mar 31, 2011

Dear Members,

The Directors have pleasure in presenting the 16th Annual Report together with the audited accounts of Nectar Lifesciences Limited ('NLL' or 'Neclife' or 'Nectar' or 'the Company') for the financial year ended March 31, 2011.

Financial results

(Rs. in millions)

March 31, 2011 March 31, 2010

Sales and other income 11358.40 9047.75

Profit before interest and depreciation 2403.36 2139.92

Interest 740.84 602.84

Depreciation 460.96 387.46

Profit before tax 1201.56 1149.62

Tax Expenses 162.38 222.86

Earlier years' adjustments 11.09 7.02

Profit after tax available for

Appropriations 1028.09 919.74

Interim Dividend Nil (Previous year 25%) - 38.07

Final dividend 10% (Previous year NIL) 22.43 -

Tax on dividend 3.64 6.47

Transfer to general reserve - 100.00

Balance c/f to balance sheet 1002.02 775.20

Operations

During the Year:

Sales and other income are up by 25.54%.

Profit before interest and depreciation is up by 12.31%.

Profit after tax is up by 11.78%.

Management Discussion and Analysis Report

The details of the Company's various operations are discussed under Management Discussion and Analysis Report. The Management Discussion and Analysis of financial condition and result of operations of the Company for the financial year 2010-11 as required under the Clause 49 of the Listing Agreement with the stock exchanges, is given as Annexure III.

Global Depository Receipts (GDRs)

GDRs: The Company has issued and allotted 46,000,000 equity shares of Re. 1/- each underlying 46,000,000 Global Depository Receipts (GDRs). The GDRs are listed on:

Luxembourg Stock Exchange/ LuxSE

Société de la Bourse de Luxembourg S.A.

B.P. 165, L-2011 Luxembourg

Siége social, 11, avdela Porte-Neuve,

Telephone: [phone] – 1, Fax : [phone]

Foreign currency convertible bonds

The Company had outstanding US$33,000,000 foreign currency convertible bonds (FCCBs), on March 31, 2011. The said FCCBs were due for redemption on April 26, 2011 (Maturity Date), at the redemption price of 150.71% of its principal amount, as per the terms and conditions of the FCCBs issue. Therefore, the FCCBs were redeemed at an aggregate amount of US$ 49.7343 million consisting of payment of the principle amount US$33 million and accumulated premium on redemption of the FCCBs of US$ 16.7343 million.

Subsidiary companies

During the financial year following wholly owned subsidiaries have been incorporated:

1. M/s Nectar Capital Limited incorporated in Mauritius

2. M/s Nectar Lifesciences UK Limited, incorporated United Kigdom

As of now no business activity has been carried out these subsidiaries. However, M/s Chempharma Private Limited incorporated in Sri Lanka stand wound up during the last financial year.

In terms of the Circular no.2/ 2011 dated 8th February, 2011 issued by the Ministry of Corporate Affairs, Government of India, the Balance Sheet, Profit & Loss Account and other documents of the subsidiary companies are not required to be attached with the Balance Sheet of the company. Therefore, we have not attached said documents with this Annual Report. The said documents/details shall be made available upon request to any member of the Company and will also be made available for inspection by any member of the Company at the registered office of the Company during working hours up to the date of Annual General Meeting.

Consolidated financial results

As required under the Listing Agreement with the stock exchanges, a consolidated financial statements for the year ended on March 31, 2011 of the Company are attached.

Dividend

During the current financial year the Board of Directors has recommended the final Dividend @ 10% i.e. Re. 0.10/- per equity shares aggregating to Rs. 22,426,097/- of the Company subject to the approval by the shareholders in the forthcoming Annual General Meeting. The register of members and the share transfer books of the Company will remain closed from September 23, 2011 to September 30, 2011 (both days inclusive) for Annual General Meeting and payment of dividend, if declared, on equity shares.

Directors

Mr. Basant Kumar Goswami, IAS (Retd.) and Mr. Dinesh Dua, retires by rotation and being eligible, offers themselves for reappointment. The Board recommends their reappointment.

Directors' responsibility statement

Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956 with respect to Directors' responsibility statement, your Directors confirm:

(i) That in the preparation of the accounts for the financial year ended March 31, 2011, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

(ii) That the Directors have selected such accounting policies and applied them consistently and made judgment and estimates that were 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 the year under review;

(iii) That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

(iv) That the Directors have prepared the accounts for the financial year ended March 31, 2011 on a 'going concern' basis.

Auditors

M/s Datta Singla & Co., Chartered Accountants, statutory auditors of the Company retires at the conclusion of the forthcoming Annual General Meeting and being eligible offer themselves for re-appointment.

The Audit Committee and Board of Directors recommend their re-appointment as auditors.

Auditors' Report

Observations made in the Auditors' Report are self-explanatory and therefore do not call for any further explanation.

Cost Audit

The Ministry of Corporate Affairs, Central Government of India vide order dated December 16, 2010 has required your company to get the audit of its cost accounts from the Cost and Works Accountant within the meaning of Cost and Works Accountants Act, 1959.

In this regard, the company, with the approval of Central Government, has appointed Dr. Vimal Kumar (Membership No. 9982) , Prof. of M/s V. Kumar and Associates, SCO 124-25, Sector 34-A, Chandigarh, Cost and Works Accountants as the Cost Auditors of the Company for the financial years 2010-11 and 2011-12.

The due date of filing of Cost Audit Report for the financial year 2010-11 is September 30, 2011. The Cost Auditors Report will be filed with Central Government by due date.

Audit Committee

The Company constituted the Audit Committee as per the provisions of Section 292A of the Companies Act, 1956 and Clause 49 of the Listing Agreement. The composition, powers and duties of the Audit Committee are detailed out in the Corporate Governance Report. The Board of Directors accepted all recommendations of the Audit Committee.

Energy, technology and foreign exchange

Information required under 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 with respect to conservation of energy, technology absorption and foreign exchange earnings and outgo is given in Annexure I and forms a part of this Report.

Personnel

Information pursuant to section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 as amended, forms part of the Report. However, as per the provisions of Section 219(1)(b)(iv) of the Companies Act, 1956 the Report and accounts are being sent to the share holders excluding statement of particulars of employees under Section 217(2A) of the Act. Any shareholder interested in obtaining the copy of the said statement, may write to Secretarial Department at the corporate office of the company.

The Company enjoyed cordial relations with its employees at all levels.

Fixed deposits

During the year under Report, your Company did not accept any deposits from the public in terms the provisions of Sections 58A and 58AA of the Companies Act, 1956.

Corporate Governance

The Company aimed to conduct its affairs in an ethical manner. A separate Report on Corporate Governance forms a part of the Annual Report. A certificate from the Company's Auditors regarding the Compliance of Conditions of Corporate Governance as stipulated under Clause 49 of the Listing Agreement is given in Annexure II.

Acknowledgement

Your Directors would like to express their sincere and grateful appreciation for the assistance and cooperation received from bankers and government authorities and also thank the shareholders for the confidence reposed by them in the Company and looks forward to their valuable support in the future plans of the Company.

Your Directors also thank its agents, the medical professionals and its customers for their continued patronage to the Company's products.

For and on behalf of the Board of Directors

of Nectar Lifesciences Limited

Date : August 12, 2011 (Sanjiv Goyal)

Place : Chandigarh Chairman & Managing Director

---

Mar 31, 2010

The Directors have pleasure in presenting the 15th Annual Report together with the audited accounts of Nectar Lifesciences Limited (NLL or Neclife or Nectar or the Company) for the financial year ended March 31, 2010.

Financial Results (Rs. in million) March 31,2010 March 31, 2009

Sales and other income 9047.75 7,860.43

Profit before interest and depreciation 2139.92 1,455.62 Interest 602.84 496.06

Depreciation 387.46 301.89

Profit before tax 1149.62 657.67

Provision for tax 195.35 74.49

Provision for deferred tax 100.02 98.06

Provision for FBT - 2.30

Earlier years adjustments 7.02 (1.66)

MAT credit entitlement (72.51) (61.29)

Profit after tax available for Appropriations 919.74 545.78

Interim Dividend 25% (Previous year NIL) 38.07 --

Final dividend NIL (Previous year 10%) -- 15.23

Tax on dividend 6.47 2.59

Transfer to general reserve 100.00 -

Balance c/f to balance sheet 7520 527.96

Operations

During the Year:

Sales and other income are up by 15.11%.

Profit before interest and depreciation is up by 47.01%.

Profit before tax is up by 74.80%.

Management Discussion and Analysis Report

The details of the Companys various operations are discussed under Management Discussion and Analysis Report. The Management Discussion and Analysis of financial condition and result of operations of the Company for the financial year 2009- 10 as required under the Clause 49 of the Listing Agreement with the stock exchanges, is given as Annexure III.

Preferential Allotment of equity shares

The Company issued 26,000,000 equity shares of Rs. 35/- per

share aggregating to Rs. 910.00 million by way of Preferential Allotment to NSR Direct PE Mauritius LLC (a non promoter entity) on February 20, 2010 as per the provisions of Section 81(1A) of the Companies Act, 1956 read with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009.

NSR Direct PE Mauritius LLC is a company of New Silk Route group. The group is a leading Asia-focused growth capital firm founded in 2006 with $1.4 billion under management, focused on the Indian subcontinent, as well as other rapidly growing economies in Asia and the Middle East.

The details of utilisation of such proceeds would be disclosed to the Audit Committee. The Company is utilizing these funds for purposes as stated in Notice for convening the Extraordinary General meeting held on February 11, 2010 vide which approval of members was received for the issue of said allotment.

Global Depository Receipts (GDRs)

GDRs: The Company has issued and allotted 46,000,000 equity shares of Re. 1/- each underlying 46,000,000 Global Depository Receipts (GDRs) of US$ 0.76 each on 26.02.2010. The total proceeds from the GDRs issue was US$ 34.96 Million. The GDRs are listed on:

Luxembourg Stock Exchange/ LuxSE Societe de la Bourse de Luxembourg S.A. B.P. 165, L-2011 Luxembourg Siége social, 11, avdela Porte-Neuve, Telephone: [phone], Fax : [phone]

After the allotment of underlying equity shares, the paid up equity capital of the company stands increased from Rs. 178,260,970/- to Rs. 224,260,970/- comprising of 224,260,970 equity shares of Re. 1/- each.

Foreign currency convertible bonds

The Company raised the funds to the tune of US$35,000,000 by way of foreign currency convertible bonds (FCCBs), on April 25, 2006. The details of utilisation of such proceeds were disclosed to the Audit Committee. The Company utilised these funds for purposes as stated in the notice for convening the Extraordinary General meeting held on December 15, 2005, vide which approval of members was received for the issue of the said FCCBs. The conversion price was adjusted on various occasions and currently it is Rs. 25.719.

The Companys equity share capital will further increase by 57,319,199 equity shares to 281,580,169 equity shares if the balance FCCBs of US$33 million are converted at an adjusted price of Rs. 25.719, at a predetermined exchange rate of US$1 = Rs. 44.6725.

Subsidiary company

The Companys wholly-owned subsidiary, M/s Chempharma Private Limited, was incorporated in Sri Lanka. The operations of said subsidiary remained suspended throughout the year and winding up process is going on.

A copy of the balance sheet, a copy of profit and loss account, a copy of Directors Report and a copy of Auditors Report of its subsidiary company is attached. However, the statement pursuant to Sections 212 of the Companies Act, 1956, in respect of the subsidiary is given below:

1. Name of the subsidiary M/s Chempharma Private Limited

2. Financial year of subsidiary ended on 31st March 2010

3. Date from which it become subsidiary 18th October 2002

4. Shares of subsidiary held by the Company as on March 31, 2010:

a. Number and face value 9,614,165 shares of SLR 10 each

b. Extent of holding 100%

5. The net aggregate amount of subsidiary companys profit (loss) so far as it concerns the members of the holding company

a. Not dealt with in holding companys accounts

i. For the financial year ended March 31, 2010 Rs. 2

ii. Up to the previous financial year of the subsidiary company Rs. 1

b. Dealt with in the holding companys accounts

i. For the financial year ended March 31, 2010 Rs. 3,151,974

ii. Up to the previous financial year of the subsidiary company Rs. 3,581,049

Consolidated financial results

As required under the Listing Agreement with the stock exchanges, a consolidated financial statements for the year ended on March 31, 2010 of the Company are attached. The consolidated financial statements include the financial statements of Nectar Lifesciences Limited, the parent company and its subsidiary company, Chempharma (Private) Limited, Sri Lanka.

Dividend

During the current Financial Year the Company has declared an Interim Dividend of Re. 0.25 per share i.e. 25% on every equity share of Re. 1/- each. In view of the ongoing expansion and diversification projects, your directors are not recommending any more dividends for the financial year 2009-10 and the interim dividend so declared may be treated as final dividend.

As per the requirements of Section 205(2A) of the Companies Act, 1956 read with Companies (Transfer of Profit to Reserve) Rules, 1975, your directors has proposed to transfer the amount of Rs. 100,000,000/- from Net Profit to the General Reserve Account.

Directors

Mr. Vijay J. Shah, retires by rotation and being eligible, offers himself for reappointment. The Board recommends his reappointment.

On February 18, 2010, Mr. Vivek Sett was appointed as the Additional Director and vacates his office at the ensuing Annual General Meeting. However, the Company received a notice under Section 257 of the Companies Act, 1956, from a member signifying his intention to propose the candidature of Mr. Vivek Sett as a regular Director of the Company. Mr. Vivek Sett is nominee director of NSR Direct PE Mauritius LLC, vide Investment Agreement for subscription of 26 Million Equity Shares on preferential basis.

Further, to meet the requirements of clause 49 of the Listing Agreement, the company has appointed Dr. (Maj. Gen.) S. S. Chauhan, VSM and Mr. Raman Kapur as additional directors on February 19, 2010. However, the Company received notices under Section 257 of the Companies Act, 1956, from members signifying their intentions to propose the candidature of Dr. (Maj. Gen.) S. S. Chauhan, VSM and Mr. Raman Kapur as regular Directors of the Company.

On August 11, 2010 Mr. Saurabh Goyal has been appointed as Additional Director and vacates his office at the ensuing Annual General Meeting. However, the company has received a notice under section 257 of the Companies Act, 1956, from a member signifying his intention to propose the candidature of Mr. Saurabh Goyal as a regular director of the company. Further, Mr. Saurabh Goyal has also been appointed as an Executive Director, subject to the approval of shareholders in their General Meeting.

On August 11, 2010, the Company has also appointed Mr. Ajay Swaroop as an additional Director of the company to meet the requirements of clause 49 of the Listing Agreement. Mr. Swaroop vacates his office at the ensuing Annual General Meeting. However, the company has received a notice under section 257 of the Companies Act, 1956, from a member signifying his intention to propose the candidature of Mr. Ajay Swaroop as a regular director of the company.

The Board recommend the appointment of above said directors as regular directors of the company.

Directors responsibility statement

Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956 with respect to Directors responsibility statement, your Directors confirm:

- That in the preparation of the accounts for the financial year ended March 31, 2010, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

- That the Directors have selected such accounting policies and applied them consistently and made judgment and estimates that were 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 the year under review;

- That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

- That the Directors have prepared the accounts for the financial year ended March 31, 2010 on a `going concern basis.

Auditors

M/s Datta Singla & Co., Chartered Accountants, statutory auditors of the Company retires at the conclusion of the forthcoming Annual General Meeting and being eligible offer themselves for re-appointment.

The Audit Committee and Board of Directors recommend their re-appointment as auditors.

Auditors Report

Observations made in the Auditors Report are self-explanatory and therefore do not call for a ny further explanation.

Audit Committee

The Company constituted the Audit Committee as per the provisions of Section 292A of the Companies Act, 1956 and Clause 49 of the Listing Agreement. The composition, powers and duties of the Audit Committee are detailed out in the Corporate Governance Report. The Board of Directors accepted all recommendations of the Audit Committee.

Energy, technology and foreign exchange

Information required under 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 with respect to conservation of energy, technology absorption and foreign exchange earnings and outgo is given in Annexure I and forms a part of this Report.

Personnel

Information pursuant to section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 as amended, forms part of the Report. However, as per the provisions of Section 219(1)(b)(iv) of the Companies Act, 1956 the Report and accounts are being sent to the share holders excluding statement of particulars of employees under Section 217(2A) of the Act. Any shareholder interested in obtaining the copy of the said statement, may write to Secretarial Department at the corporate office of the company.

The Company enjoyed cordial relations with its employees at all levels.

Fixed deposits

During the year under Report, your Company did not accept any deposits from the public in terms the provisions of Sections 58A and 58AA of the Companies Act, 1956.

Corporate Governance

The Company aimed to conduct its affairs in an ethical manner. A separate Report on Corporate Governance forms a part of the Annual Report. A certificate from the Companys Auditors regarding the Compliance of Conditions of Corporate Governance as stipulated under Clause 49 of the Listing Agreement is given in Annexure II.

Acknowledgement

Your Directors would like to express their sincere and grateful appreciation for the assistance and cooperation received from bankers and government authorities and also thank the shareholders for the confidence reposed by them in the Company and looks forward to their valuable support in the future plans of the Company.

Your Directors also thank its agents, the medical professionals and its customers for their continued patronage to the Companys products.



Place : Chandigarh

Date: August 11, 2010

For and on behalf of the Board of Directors of Nectar Lifesciences Limited

Sanjiv Goyal

Chairman & Managing Director