Notes to Accounts of Phaarmasia Ltd.

Mar 31, 2024

1.11 Provisions, contingent liabilities and contingent assets Provisions

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Contingent liabilities

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets

Contingent assets are not recognized in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognized in the period in which the change occurs.

1.12 Revenue Recognition Revenue from contracts with customers

Revenue is recognized when the Company substantially satisfied its performance obligation while transferring a promised good or service to its customers. The company considers the terms of the contract and its customary business practices to determine the transaction price. Performance obligations are satisfied at the point of time when the customer obtains controls of the asset.

Revenue is measured based on transaction price, which is the fair value of the consideration received or receivable, stated net of discounts, returns and value added tax. Transaction price is recognised based on the price specified in the contract, net of the estimated sales incentives / discounts. Accumulated experience is used to estimate and provide for the discounts/ right of return, using the expected value method.

1.13 Tax Expenses

Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in Other comprehensive income.

The Company has determined that interest and penalties related to income taxes, including uncertain tax treatments, do not meet the definition of income taxes, and therefore accounted for them under Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets.

Current tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognised outside the statement of profit and loss is recognised outside the statement of profit and loss (either in OCI or in equity in correlation to the underlying transaction). Management periodically evaluates positions taken in the tax returns with respect to

situations in which applicable tax regulations are subject to interpretation and establishes provisions, where appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities and assets are recognized for all taxable temporary differences and deductible temporary differences.

Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.

Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside the statement of profit and loss is recognised outside the statement of profit and loss (either in OCI or in equity in correlation to the underlying transaction).

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Goods and Service Tax (GST) paid on acquisition of assets or on incurring expenses

When the tax incurred on purchase of assets or services is not recoverable from the taxation authority, the tax paid is recognised as part of the cost of acquisition of the asset or as part of the expense item, as applicable. Otherwise, expenses and assets are recognized net of the amount of taxes paid. The net amount of tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.

1.14 Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities.

The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received.

Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

The right-of-use assets are also subject to impairment. Refer to the accounting policies in section of Impairment of non-financial assets.

Lease liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. The Company’s lease liabilities are included in Borrowings.

Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered to be of low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

1.15 Earnings Per Share

The Company presents basic and diluted earnings per share (“EPS”) data for its ordinary shares. Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and alsothe weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

1.16 Segment reporting

The Company is engaged in the business of manufacturing and marketing of Cosmetics, Oral Contraceptive Pills (OCP) and Combipack with Iron Tablets and the same constitutes a single reportable business segment as per Ind AS 108. Accordingly, disclosure of segment information as prescribed in the Indian accounting standard 108 “Operating segments” is not applicable.

1.17 New standards adopted by the company Ind AS 1 — Presentation of financial information

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general-purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial statement.

Ind AS 12 — Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company does not expect this amendment to have any significant impact in its financial statements.

Ind AS 8 — Accounting Policies, Changes in Accounting Estimates and Errors The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities develop accounting estimates if accounting policies require items in Restated financial information to be measured in a way that involves measurement uncertainty. The company does not expect this amendment to have any significant impact in its financial statements.

1.18 New Accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Notes:

(i) The Code on Social Security, 2020 (‘Code’) relating to employee benefits received Presidential assent in September 2020. However, effective date and the final rules/interpretation have not yet been notified/issued. The Company is in the process of assessing the impact of the Code and will recognize the impact, if any, based on its effective date.

(ii) The Company operates defined benefit plan i.e., gratuity for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service. The fund has the form of a trust and it is governed by the Board of Trustees who is responsible for the administration of the plan assets and for the definition of the investment strategy.

Gratuity benefits

In accordance with applicable laws, the Company has a defined benefit plan which provides for gratuity payments (the “Gratuity Plan”) and covers certain categories of employees in India. The Gratuity Plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amount of the payment is based on the respective employee’s last drawn salary and the years of employment with the Company. Liabilities in respect of the Gratuity Plan are determined by an actuarial valuation.

Leave Encashment

The Company provides for accumulation of compensated absences by certain categories of its employees. These employees can carry forward a portion of the unutilized compensated absences and utilize them in future periods or receive cash in lieu thereof as per the Company’s policy. The Company records a liability for compensated absences in the period in which the employee renders the services that increases this entitlement.

Contribution to Provident Fund

The employees of the Company receive benefits from a provident fund, a defined contribution plan. Both the employee and employer each make monthly contributions to a government administered fund equal to 12% of the covered employee’s qualifying salary. The Company has no further obligations under the plan beyondits monthly contributions.

Contribution to Superannuation schemes NIL

32. Related Parties

In accordance with the provisions of Ind AS 24 “Related Party Disclosures” and the Companies Act, 2013, Company’s Directors, members of the Company’s Management Council and Company Secretary are considered as Key Managerial Personnel.

33. Financial instruments and fair value

All assets and liabilities for which fair value is measured or disclosed in the Ind AS financial statements are categorised within the fair value hierarchy, as below, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 : Quoted (unadjusted) market prices in active markets for identical assets or liabilities. Level 2 : Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3 : Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

There has been no transfers between levels during the year. The management has assessed that the carrying values of financial assets and financial liabilities for which fair values are disclosed, reasonably approximate their fair values because these instruments have short-term maturities. Borrowings include Indian currency and foreign currency long-term loans wherein interest rates are linked to benchmark rates (Marginal Cost of Lending Rates/Prime Lending Rates) of respective lenders. These benchmark rates are determined based on cost of funds of the lenders, as well as, market rates. The benchmark rates are periodically revised by the lenders to reflect prevalent market conditions. Accordingly, effective cost of debt for borrowings at any point of time is in line with the prevalent market rates. Due to these reasons, management is of the opinion that they can achieve refinancing, if required, at similar cost of debt, as current effective interest rates. Hence, the discounting rate for calculating the fair value of Borrowings has been taken in line with the current cost of debt.

34. Financial risk management objectives and policies

The Company’s principal financial liabilities comprise trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include trade and other receivables, cash and cash equivalents, bank balances, security deposits and derivatives that are out of regular business operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s risk management is carried out by under policies approved by the Board of Directors. The Board of Directors provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

(a) Market risk

Market risk is the risk that changes in market prices such as commodity prices risk, foreign exchange rates and interest rates which will affect the Company’s financial position. Market risk is attributable to all market risk sensitive financial instruments.

(b) Interest rate risk

Interest rate risk refers to risk that the fair value of future cash flows of a financial instrument may fluctuate because of changes in market interest rates.

© Credit Risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company has the following categories of financial assets that are subject to credit risk evaluation:

Trade Receivables- The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country, in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

(d) Liquidity Risks:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation.

The table below provides details regarding the contractual maturities of significant financial liabilities as at 31^st March 2024:

36. Other statutory information:

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

b) The Company does not have any transactions with struck off companies.

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

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

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

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

g) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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

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

j) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

k) The Company has not entered in to any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

l) The Company has not been declared as willful defaulter by any bank or financial institution or other lender.

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

n) No scheme of arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, during the year

o) The Company does not have any borrowings from banks or financial institutions against security of its current assets.

37. Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital, convertible preference shares, securities premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents, excluding discontinued operations

39. Leases

The Company has lease contracts for buildings. The leases generally have lease terms between 2 to 3 years. The Company’s obligations under its leases are secured by the lessor’s title to the leased assets. Generally, the Company is restricted from assigning and sub-leasing the leased assets. There lease contracts that include extension and termination options, which are further discussed below. The Company also has certain leases with lease terms of 12 months or less and leases with low value. The Company applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases.

Refer Note 2 for details of carrying amounts of right-of-use assets recognised and the movements during the year. Set out below are the carrying amounts of lease liabilities (included under interestbearing borrowings) and the movements during the year:

40. Previous period/year figures have been recompanyed /re-classified wherever necessary, to conform to current period’s classification in order to comply with the requirements of the amended Schedule III to the Companies Act, 2013 effective April 01, 2021.

For Sathuluri & Co.

Chartered Accountants Sd/- Sd/-

Firm Reg No. 006383S Maneesh R Sapte Y N Bhaskar Rao

Managing Director Whole Time Director

Sd/- DIN : 00020450 DIN 00019052

(S.S.PRAKASH)

Partner

Membership No.202710

UDIN: 24202710BKELYM7014 Sd/- Sd/-

Urvasi Bhatia N E V Prasad Rao

Place: Hyderabad Company Secretary C F O

Date: 25.05.2024 Reg. 46877

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Mar 31, 2015

1. CONTINGENT LIABILITIES AND COMMITMENTS

(TO THE EXTENT NOT PROVIDED FOR)

Contingent Liabilities NIL NIL

Note: There are Demands of Income Tax aggregating to Rs. 9,25,33,570/-for different Assessment Years i.e., from AY 2006-07 to AY 2012-13, from Central Circle-40, Mumbai, in respect of the assessments u/s 153 of IT Act., and the Company has filed appeals before "Commissioner of Income Tax (Appeals), Mumbai" in the month of April'2014, and management is of the opinion that, there will not be any liability on the Company and no provision is made for the above mentioned amount or part thereof.

2. The contribution to pension/gratuity fund and leave expense includes the following:

3. Related Party Disclosures

As per the Accounting Standard on "Related Party Disclosures" AS-18, issued by the ICAI, the related parties of the Company are as follows.

4. Related Parties:

Maneesh Pharmaceuticals Limited Svizera Health Remedies

5. Board of Directors

* Mr. Maneesh R. Sapte -- Managing Director

* Mr. Y.N. Bhaskara Rao -- Whole-time Director

* Mr. Vinay R. Sapte -- Director

* Mr. Bharat B. Merchant -- Director

* Mr Bupinder N. Garg -- Director

* Mrs. Rashmi V.Sapte -- Additional Director

6. Regrouping and rearrangement of Previous year's figures

7. Previous year's figures have been regrouped/ rearranged wherever necessary.

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Mar 31, 2014

1. The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company the holders of equity shares will be entiled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. In FY 2005-06, there was a scheme of re-arrangement and restructuring u/s 391 & 394, sanctioned by The Hon''ble High Court of Andhra Pradesh, as per which the Fixed assets of the company were revalued by Rs. 1367.58 lakhs, to which extent, the revaluation reserve was also created, and was allowed to be used to wipe out the accumulated losses of Rs.1097.22 lakhs as per the scheme. However, in the subsequent years, the depreciation on such revalued portion, is to be adjusted, against the same revaluation reserve, but due to the above wiping out losses, there is a shortfall of reserve. There are also some Free reserves and Capital reserves, and so the said depreciation on revalued portion is being adjustedreserves, and after exhausting the same, now against the Capital reserves of the Company.

The Free Reserves are fully exhausted/adjusted by adjusting the remaining depreciation on revalued assets and there is still such depreciated(on realued portion) at Rs.3,03,81,024/- (PY 3,46,13,490), as at the year end, is to be adjusted in future years, which may result into negative reserves.

3. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

Contingent Liabilities NIL NIL

Note: There are Demands of Income Tax aggregating to Rs. 9,25,33,570/- for different Assessment Years i.e.., from AY 2006-07 to AY 2012-13, from Central Circle-40, Mumbai, in respect of the assessments u/s 153 of IT Act., and the Company has filed appeals before "Commissioner of Income Tax (Appeals), Mumbai" in the month of April'' 2014, and management is of the opinion that, there will not be any liability on the Company and no provision is made for the above mentioned amount or part thereof.

4. Related Party Disclosures

As per the Accounting Standard on "Related Party Disclosures" AS-18, issued by the ICAI, the related parties of the Company are as follows.

5. Regrouping and rearrangement of Previous year''s figures

6. Previous year''s figures have been regrouped/rearranged wherever necessary.

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Mar 31, 2013

1 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

1.1 Contingent Liabilities NIL NIL

1.2 Commitments NIL NIL

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Mar 31, 2012

1.1. Contingent Liabilities NIL NIL

2. Related Party Disclosures

As per the Accounting Standard on " Related Party Disclosures" AS-18, issued by the ICAI, the related parties of the Company are as follows:

2.1. Related Parties:

Manosh Pharmaceuticals Limited

Svizera Health Remedies

2.2. Key Management Personnel

- Mr. Vinay R Septe - Chairman & Director

- Mr. Mangesh R Sapte - Managing Director

- Mr. Y.N. Bhaskara Rao - Executive Director

- Mr. Bharat B Merchant - Additional Director

- Mr. Bupinder G Nang - Additional Director

3.1. Expenses in Foreign Currency fully Paid 6948 1800

3.2 Earnings in Foreign Currency Nil Nil

4. Regrouping and rearrangement of previous year's figures

5. Previous year's figures have been regrouped / rearranged wherever necessary.

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Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on Capital Account and not provided for: Rs. NIL. (Previous Year - NIL)

2. Contingent liabilities- Rs. NIL.

3. All Outstanding balances for creditors, debtors, acceptances and other advances are subject to confirmation from the parties.

4. With regards to the compliance of the Provisions relating to the dues to Micro, Small and Medium Enterprises the Company explained that it sent letters to the creditors to confirm whether they are Micro, Small and Medium Enterprises and the replies are yet to be received by the Company. Hence it could not quantify the dues if any, to Micro, Small and Medium Enterprises Units.

5. Income Tax returns of the Company are filed up to the accounting year ending 31st March 2010, and there are no material demands or disputed amounts pending as on date.

6. The Sales Tax Assessment of the Company is completed up to accounting year 2007-08. For the Year 2008-09, 2009-10, 2010-11 assessments are pending. Management is of the opinion that there will be no additional liability will arise other than that provided for.

7. Gratuity is provided only for the completed period of service. No provision has been made for leave encashment as company's H.R. Policy does not allow encashment..

8. The Company operates in a solitary business segment i.e., pharmaceuticals, and bulk drugs comprising mainly manufacture of formulations and creams which as per Accounting Standard - AS17 is considered as the only one reportable business segment. The company also manufactures skin/face Creams and tooth paste both covered under Drugs & Cosmetics Act, with valid Drug Licenses obtained and there are also treated as same business segment. Accordingly, no further financial information for business segment is required to be given. The geographical segmentation is not relevant, as there are no exports for this year.

9. In accordance with the Accounting Standard on "Earnings per Share" AS - 20, issued by the Institute of Chartered Accountants of India, Earnings per Share has been computed as under:

Net Profit / Loss for the year (Rs / lakhs) 9.38

No. Of Equity Shares 6826960

(Face value of Rs. 10/- each)

Basic and Diluted EPS (Rs.) 0.14

10. As per the Accounting Standard on "Related Party Disclosures" AS - 18, issued by the Institute of Chartered Accountants of India, the related parties of the Company are as follows:

A. Key Management Personnel :

- Mr. Vinay R.Sapte -- Chairman & Director

- Mr. Maneesh R. Sapte -- Managing Director

- Mr. Y.N. Bhaskara Rao -- Executive Director

- Mr. C.Srinivas -- Director

- Mr RVijayasradhi -- Director

The nat ure and volumes of transactions of the Company during the year, with the above-related parties were as follows:

— Remuneration - Rs. 480000/- p.a. to Mr YN.Bhaskar Rao &

Rs. 28000/- to Non working Directors towards Sitting Fees.

— Details of related party Transactions:

11. Previous year's figures are regrouped wherever necessary to make them comparable with current year figures.

12. The Depreciation on the revalued portion of value of fixed assets for the period ended 31st March 2011 of Rs.63,70,611/-

(Previous year Rs. 73,30,671/-) is adjusted in Reserve & Surplus A/c.

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Mar 31, 2010

1. Contingent Liability in respect of Guarantee given by the company against Bank Guarantee not provided for Rs.2,90,000/- (Previous year - Rs.2,90,000).

2. Estimated amount of contracts remaining to be executed on Capital Account and not provided for: Rs. NIL. (Previous Year- NIL).

3. All Outstanding balances for creditors, debtors, acceptances and other advances are subject to confirmation from the parties.

4. With regards to the compliance of the Provisions relating to the dues to Micro, Small and Medium Enterprises the Company explained that it sent letters to the creditors to confirm whether they are Micro, Small and Medium Enterprises and the replies are yet to be received by the Company. Hence it could not quantify the dues if any, to Micro, Small and Medium Enterprises Units.

5. Income Tax returns of the Company are filed up to the accounting year ending 31s1 March 2009, and there are no material demands or disputed amounts pending as on date.

6. The Sales Tax Assessment of the Company is completed up to accounting year 2007-08. For the Year 2008-09, 2009-10 assessments are pending. Management is of the opinion thatthere will be no additional liability will arise other than that provided for.

7. Gratuity is provided only for the completed period of service. No provision has been made for leave encashment as companys H.R. Policy does not allow encashment..

8. The Company operates in a solitary business segment i.e., pharmaceuticals, comprising mainly manufacture of formulations and creams which as per Accounting Standard-AS17 is considered as the only one reportable business segment. The company also manufactures skin/face Creams and tooth paste both covered under Drugs & Cosmetics Act, with valid Drug Licenses obtained and there are also treated as same business segment. Accordingly, no further financial information for business segment is required to be given. The company also Exported Formulations to Nepal for Rs.1.12Crores and the balance Rs.10.29Crores as domestic sale as required for the geographical segmentation..

9. In accordance with the Accounting Standard on "Earnings per Share" AS - 20, issued by the Institute of Chartered Accountants of India, Earnings per Share has been computed as under:

10. As per the Accounting Standard on "Related Party Disclosures" AS - 18, issued by the Institute of Chartered Accountants of India, the related parties of the Company are as follows:

A. Key Management Personnel :

Mr. Vinay R.Sapte -- Chairman

Mr. Maneesh R. Sapte - Managing Director

Mr. Y.N. Bhaskara Rao -- Executive Director

Mr. C.Srinivas -- Director

* Mr P.Vijayasradhi - Director

The nature and volumes of transactions of the Company during the year, with the above-related parties were as follows:

- Remuneration - Rs. 480000/- p.a. to Mr Y.N.Bhaskar Rao and

Rs.32,000/- to Non working Directors towards

Sitting Fees.

12. Previous years figures are regrouped wherever necessary to make them comparable with current year figures.

13. The Depreciation on the revalued portion of value of fixed assets for the period ended 31s March 2010 of Rs.73,30,671/- (Previous year Rs. 84,18,716/-) is adjusted in Reserve & Surplus A/a.

14 Rpmunprptinn nairl tn Dimrtnrs

15. Information pursuant to the provisions of paragraph 3, 4C and 4D of Part II of ScheduleVI of CompaniessAct, 1956.

(As certified by the management and not verified by the Auditors being a Technical subject) Expenditure in foreign currency during the financial Year on account of traveling etc., Nil

16 Previous Years figures have been regrouped And rearranged wherever necessary 12. Figures are rounded off to the nearest rupee.