Notes to Accounts of Sandu Pharmaceuticals Ltd.

Mar 31, 2024

r. Provisions, Contingent Liabilities and Contingent Assets

The company creates a provision when there is a present obligation(legal or constructive) because of past event that will probably result in the outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made of the amount of such obligation. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation.

Major contingent liabilities are disclosed in the financial statements unless the possibility of an outflow of economic resources is remote.

Contingent assets are not recognised in the financial statements but disclosed , where an inflow of economic benefit is probable.

s. Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprises cash on hand and cash at banks and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

t. Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organization and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

u. Mesurement of fair value Financial instrument

The estimated fair value of the company’s financial instruments is based on market Prices and valuation techniques.

Valuations are made with the objective to include relevant factors that market participants would consider in setting a price and to apply accepted economic and financial methodologies for the pricing of financial instruments .References for less active markets are carefully reviewed to establish relevant and comparable data.

Derivatives

Fair value of financial derivatives is estimated as the present value of future cash flows, calculated by reference to quoted price curves and exchange rates as of the balance sheet date.

v. Government subsidy / grants:

Government grant is recognized only when there is a reasonable assurance that the entity will comply with the conditions attached to them and the grants will be received.

• Subsidy related to assets is recognized as deferred income which is recognized in the Standalone Statement of Profit and Loss on systematic basis over the useful life of the assets.

• Purchase of assets and receipts of related grants are separately disclosed in Standalone Statement of Cash Flow.

• Grants related to income are treated as other operating income in Standalone Statement of Profit and Loss subject to due disclosure about the nature of grant.

w. Cash Dividend:

The Company recognizes a liability to make cash distributions to the equity holders of the Company when the distribution is authorized and the distribution is no longer at the discretion of the Company. As per the provisions of the Act, a distribution is authorized when it is approved by the shareholders. A corresponding amount is recognized directly in reduction in other equity.

Notes to Standalone Financial Statements (Contd...)

Note 28 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit attributable to equity holders of the company by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity Shares.

Note 28 Contingent liabilities, contingent assets and commitments

There are demands of Income tax aggregating to '' 283 lakhs, (P.Y.?283 Lakhs) against which the company had filed an appeal to Hon''ble Mumbai ITAT and the demand has been deleted in view of favourable decision of Mumbai ITAT. Further, against the decision of ITAT, the department filed an appeal to High Court of Mumbai. The company has been legally advised that it has a strong case and thus the management is of the view that there is a fair chance that outcome of the appeal would be in favour of the company. In view of this, no provision was required.

There are demands of GST aggregating to '' 54.22 lakhs, (P.Y.?54.22 Lakhs) (including Interest & Penalty) against which the company had filed an appeal to Hon''ble Commissioner of State Tax (Appeal).The company has been legally advised that it has a strong case and thus the management is of the view that there is a fair chance that outcome of the appeal would be in favour of the company. In view of this, no provision was required.

The Company has disclosed financial instruments such as cash and cash equivalents, other bank balances, loan receivable, trade receivables, short term borrowing, trade payables, at carrying value because their carrying amounts are a reasonable approximation of the fair values due to their short-term nature.

B. Fair Value Hierarchy

The fair value of financial instruments as referred to in note (A) above have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

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

Level 3:If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

C. Fair Value measurements

For assets and liabilities which are measured at fair value as at Balance Sheet date, the classification of fair value calculations by category is summarised below:

Financial assets and liabilities measured at fair value as at Balance Sheet date:

1. The fair values of investment in quoted investment in equity shares is based on the current bid price of respective investment as at the Balance Sheet date.

2. The fair values of investments in mutual fund units is based on the net asset value (‘NAV’) as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.

Other financial assets and liabilities

1. Cash and cash equivalents, trade receivables, investments in term deposits, other financial assets (except derivative financial instruments), trade payables and other financial liabilities (except derivative financial instruments) have fair values that approximate to their carrying amounts due to their short-term nature.

2. Loans have fair values that approximate to their carrying amounts as it is based on the net present value of the anticipated future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.

II. Financial risk management

Financial risk management objectives and policies

The Company''s principal financial liabilities, comprises borrowings, trade and other payable. The main purpose of these financial liabilities is to finance the Company operations. The Company''s principal financial assets, includes investments,loan receivable, trade & other receivables, and cash &cash equivalents derived directly from its operations. The Company is exposed primarily to credit risk, liquidity risk and market risk (including interest rate risk and other price risk), which may adversely impact the fair value of its financial instruments. The Company''s senior management oversees the management of these risks. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

(i) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, investments, derivative financial instruments, cash and cash equivalents, loans and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.

(ii) Liquidity risk:

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(iii) Market risk:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. It also have impact of Interest rate risk which is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. The Company''s exposure to risk of change in market interest rates because it borrows funds at both fixed and floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

The Company’s significant leasing arrangements are in respect of premises used for business, are accounted as a short term lease, Less than one year. The aggregate lease rentals payable are charged as rent in the statement of profit and loss (Refer note 27). These lease arrangements are cancellable in nature and can be terminated by giving notice for a period, which vary from one months to three months.

i) The Company does not have any Benami Property where any proceedings have been initiated or pending against the Company for holfing nay benami property.

ii) The Company does not have any transaction with struck off company.

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

iv) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (''Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

v) To the best of its knorvledge and belief, no funds have been received by the Company fi''om,any person or entity, including foreign entity ("Funding Parlies"), with the understanding,whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner r,vhatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

1. All transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions.

Outstanding balances for trade receivable, trade payable and other payables are unsecured. The Company has not recorded any impairment of balances relating to amounts owed by related parties during the year ended March 31, 2024 (March 31, 2023 Nil). The assessment is undertaken each financial year through evaluating the financial position of the related party and the market in which the related party operates.

2 * Sales, Purchase & Royalty paid figures mentioned are Net of GST .

Significant Accounting policies 2

The accompanying Notes from 28 to 34 are an integral part of Financial Statements.

As per our report of even date attached.

p₀r Dil_eep & Prithvi For and on behalf of the Board of Directors

Chartered Accountants ^{Sandu Pharmaceuticals Limited}

Firm Reg No 122290W ^CIN : ^{L24233GA1985PLC001587}

By the hand of

Himmat Mali Sd/- Sd/-

(Partner) Umesh B. Sandu Shashank B. Sandu

M.No:183378 Managing Director Director

DIN:01132141 DIN:00678098

Sd/- Sd/-

Vijay Kajrekar Pratika Mhambray

_CFO Company Secretary &

Compliance Officer

Place: Mumbai Place: Mumbai

Dated : 05/06/2024 Dated: 05/06/2024

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Mar 31, 2023

r. Provisions, Contingent Liabilities and Contingent Assets

The company creates a provision when there is a present obligation(legal or constructive) because of past event that will probably result in the outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made of the amount of such obligation. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation.

Major contingent liabilities are disclosed in the financial statements unless the pssibility of an outflow of economic resources is remote.

Contingent assets are not recognised in the financial statements but disclosed , where an inflow of economic benefit is probable.

s. Cash and cash equivalents

Cash and cash equipments in the balance sheet comprises cash on hand and cash at banks and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

t. Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

u. Mesurement of fair value Financial instrument

The estimated fair value of the company’s financial instruments is based on market Prices and valuation techniques.

Valuations are made with the objective to include relevant factors that market participants would consider in setting a price and to apply accepted economic and financial methodologies for the pricing of financial instruments .References for less active markets are carefully reviewed to establish relevant and comparable data.

Derivatives

Fair value of financial derivatives is estimated as the present value of future cash flows, calculated by reference to quoted price curves and exchange rates as of the balance sheet date.

v. Government subsidy / grants:

Government grant is recognized only when there is a reasonable assurance that the entity will comply with the conditions attached to them and the grants will be received.

• Subsidy related to assets is recognized as deferred income which is recognized in the Standalone Statement of Profit and Loss on systematic basis over the useful life of the assets.

• Purchase of assets and receipts of related grants are separately disclosed in Standalone Statement of Cash Flow.

• Grants related to income are treated as other operating income in Standalone Statement of Profit and Loss subject to due disclosure about the nature of grant.

w. Cash Dividend:

The Company recognizes a liability to make cash distributions to the equity holders of the Company when the distribution is authorized and the distribution is no longer at the discretion of the Company. As per the provisions of the Act, a distribution is authorized when it is approved by the shareholders. A corresponding amount is recognized directly in reduction in other equity.

x. Standards (including amendments) issued but not yet effective:

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards. There is no such notification which would have been applicable from April 01, 2023.

c. Terms / Rights attached to equity shares

The Company is having only one class of shares i.e. Equity carrying a nominal value of '' 10/- per share. Every holder of the equity share of the Company is entitled to one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval ofthe Shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event ofliquidation of the Company, the equity shareholders will be entitled to receive remaining assets of the Company after the distribution / repayment of all creditors.The distribution to the equity shareholders will be in proportion of the number of shares held by each shareholder.

Notes to Standalone Financial Statements (Contd...)

Notes Nature and Purpose of reserves:

1. General Reserve

General Reserve forms part of the retained earnings and is permitted to be distributed to sharholders as part of dividend

2. Equity Instrument through Other Comprehensive Income

Equity instrument through other Comprehensive income is the increase / decrease in the value of the investments at the end of the year

3. Revaluation Surplus

Revaluation surplus shows the details of the changes in the fair value of the right -to-use assets such as lease hold land including transfer of depreciation to retained earnings in the year end.

4. Other Comprehensive Income -Employee Benefits

Employee Benefit such as Gratuity valuation is done on yearly basis by the actuary & increase /decrease in the liability is shown through this account

5. Security Premium

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

Note 27 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit attributable to equity holders of the company by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity Shares.

Note 28 Contingent liabilities, contingent assets and commitments

There are demands of Income tax aggregating to '' 283 lakhs, against which the company had filed an appeal to Hon''ble Mumbai ITAT and the demand has been deleted in view of favourable decision of Mumbai ITAT. Further, against the decision of ITAT, the department filed an appeal to High Court of Mumbai. The company has been legally advised that it has a strong case and thus the management is of the view that there is a fair chance that outcome of the appeal would be in favour of the company. In view of this, no provision was required.

There are demands of GST aggregating to '' 54.22 lakhs,( including Interest & Penalty ) against which the company had filed an appeal to Hon''ble commissioner of State Tax (appeal).The company has been legally advised that it has a strong case and thus the management is of the view that there is a fair chance that outcome of the appeal would be in favour of the company. In view of this, no provision was required.

B. Fair Value Hierarchy

The fair value of financial instruments as referred to in note (A) above have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

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

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Financial assets and liabilities measured at fair value as at Balance Sheet date:

1. The fair values of investment in quoted investment in equity shares is based on the current bid price of respective investment as at the Balance Sheet date.

2. The fair values of investments in mutual fund units is based on the net asset value (‘NAV’) as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.

Other financial assets and liabilities

1. Cash and cash equivalents, trade receivables, investments in term deposits, other financial assets (except derivative financial instruments), trade payables and other financial liabilities (except derivative financial instruments) have fair values that approximate to their carrying amounts due to their short-term nature.

2. Loans have fair values that approximate to their carrying amounts as it is based on the net present value of the anticipated future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.

II. Financial risk management

Financial risk management objectives and policies

The Company''s principal financial liabilities, comprises borrowings, trade and other payable. The main purpose of these financial liabilities is to finance the Company operations. The Company''s principal financial assets, includes investments,loan receivable, trade & other receivables, and cash &cash equivalents derived directly from its operations.

The Company is exposed primarily to credit risk, liquidity risk and market risk (including interest rate risk and other price risk), which may adversely impact the fair value of its financial instruments. The Company''s senior management oversees the management of these risks. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

(i) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, investments, derivative financial instruments, cash and cash equivalents, loans and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.

(ii) Liquidity risk:

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(iii) Market risk:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. It also have impact of Interest rate risk which is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. The Company''s exposure to risk of change in market interest rates because it borrows funds at both fixed and floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

Note 31 Leases

The Company’s significant leasing arrangements are in respect of premises used for business, are accounted as a short term lease, Less than one year. The aggregate lease rentals payable are charged as rent in the statement of profit and loss (Refer note 27). These lease arrangements are cancellable in nature and can be terminated by giving notice for a period, which vary from one months to three months.

Note 33 Other Statutory Information

i) The Company does not have any Benami Property where any proceedings have been initiated or pending against the Company for holfing nay benami property.

ii) The Company does not have any transaction with struck off company.

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

iv) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (''Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

v) To the best of its knorvledge and belief, no funds have been received by the Company fi''om,any person or entity, including foreign entity ("Funding Parlies"), with the understanding,whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner r,vhatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vi) The Company has not been declared a willful defaulter by any bank or financial institution,or other lender.

Note 34 Related party disclosures

Related parties where control exists and related parties with whom transactions have taken place during the year are listed

below:

Names of related parties and description of relationship

A. Enterprises over which key management personnel or their relatives exercise significant influence

Sandu Brothers Private Limited

B Key managerial personnel

Umesh .B .Sandu Managing Director

Rakesh Parekh Chief Financial Officer

Pratika Mhambray Company Secretary

Dilip R Salgoacar Independent Director

Krishna.B . Deshpande Independent Director

Dr Madan L Kapre Independent Director

Shri K Vinay Kumar Independent Director

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Mar 31, 2015

Payments for

- taxation matters would include tax audit fees, certifications under the Income Tax Act, tax advisory services, etc.

- company law matters would include certifications (e.g. certificate for buy-back of shares, etc.), company law advisory services, etc.

- other services would include limited reviews, group reporting, other attest services and certifications under other laws, etc.

Note 1. Disclosures under Accounting Standards

Employee benefit plans

Defined contribution plans

The Company makes Provident Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs.13,39,352 (Year ended 31 March, 2014 Rs.10,55,499) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity: On the basis of actuarial valuation the Company has recognized Gratuity Liability of Rs 129,646/- (P.Y.) and paid Rs. 129,308/- (C.Y.)

Related party transactions Details of related parties:

Description of relationship Names of related parties

Key Management Personnel (KMP) Mr.Umesh B.Sandu - Managing Director

Relatives of KMP Mr B G. Sandu,

Companies in which KMP / Relatives of KMP can Mr Shashank Sandu exercise significant influence Akshath Finvest & Properties Pvt. Ltd.

Neelamber Leasing And Finvest Pvt. Ltd Noumura Realty & Constructions Pvt. Ltd Phybrichem Engineers Pvt. Ltd Sandu Brothers Pvt Ltd Sanbert Packaging Pvt. Ltd Sanbro Marketing Services Pvt. Ltd Sandu Research Foundation Pvt. Ltd Sanfar Communication Pvt. Ltd Sanmark Realty And Finance Pvt. Ltd

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Mar 31, 2014

1 Corporate information

Sandu Pharmaceuticals is an ISO 9001:2000 Certified Company. It was established in the year 1985. The company specializes in manufacture and marketing of Ayurvedic medicines. It has acquired a unique position and reputation as a leading enterprise in the field of Ayurved.

Note 2 Disclosures under Accounting Standards

Employee benefit plans

Defined contribution plans

The Company makes Provident Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.10,55,499 (Year ended 31 March, 2013 Rs.8,81,522) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

I. Gratuity: On the basis of acturial valuation the Company has recognised Gratuity Liability paid Rs. 181,108/ - (P.Y.) and Rs.129,646/- (C.Y.)

Note 3 Previous year''s figures

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2013

1 Corporate information

Sandu Pharmaceuticals is an ISO 9001:2000 Certified Company. It was established in the year 1985. The company specializes in manufacture and marketing of Ayurvedic medicines. It has acquired a unique position and reputation as a leading enterprise in the field of Ayurved.

Note 2 Previous year''s figures

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2012

1 Corporate information

Sandu Pharmaceuticals is an ISO 9001:2000 Certified Company. It was established in the year 1997. The company specializing in manufacture and marketing of Ayurvedic medicines. It has acquired a unique position and reputation as a leading enterprise in the field of Ayurved. The company manufactures quality Ayurvedic products and has acquired a unique position and reputation as a leading enterprise in the field of Ayurved. During the year it has opened several saies outlets & started seiling gooas directly to distributors & stockiest.

Employee benefit plans

Defined contribution plans

The Company makes Provident Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.7,86,206 (Year ended 31 March, 2011 Rs.2,78,880) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity: On the basis of acturial valuation the Company has recgnised Gratuity Liability of Rs.195,844/-

Note 2 Details of borrowing costs:

Borrowing costs are directly debited to Profit & Loss account Note 25 Disclosures under Accounting Standards

Related party transactions

Note 3 Previous year's figures

The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Mar 31, 2011

1. Loans & Advances include loans to companies amounting to Rs. 23,27,314/- against which the company has instituted suit for recovery and the management is confident of recovery.

2. Balance of sundry debtors, creditors, loans and advances to the companies are subject to confirmation.

3. As regards to compliance of provision relating to the dues to the Small Scale Industries in terms to the companies(Amendment) Act, 1998, the Company has not received from any parties claim to be Small Scale Industries. Hence, the said information is not given.

4. In the opinion of the Board of Directors, the current assets and loans and advances, have value on realisation in the ordinary course of business, atleast equal to the amount at which they are stated unless expressly stated otherwise.

5. The Company is in Pharmaceuticals Business and considering the organisational structure of the company and its internal financial reporting, the company has only one reporatble segment i.e. Pharmaceuticals considering the requiements of Accounting Standards on "Accounting Standard on Segment Reporting" (AS-17) issued by The Instiutute of Chartered Accountants of India. Since the company operates in only one Segment no seperate reporting is made under this standard.

6. Managerial remuneration :-

Remuneration payable as per section 198, 309 and other relevant provision pertaining to Mangerial remuneration is as follows:

1) In view of only one executive director, the amount payable is @ 5% of Net profit of the Company.

The Company has Net Profit of Rs.10,594,951/-

5% thereof works out to Rs.529,748/-

2) Under Section II (1) of part II of schedule XIII of the Companies Act, 1956, in view of inadequate profits, maximum remuneration payable works out to Rs. 125,000/- p.m. or Rs. 15,00,000/- pa.

3) The Company has paid Rs.12,49,320/- as Salary and Director Fees Rs.5,000/- to the Managing Director which is within the limits mentioned above.

4) Directors sitting fees to other Directors Rs. 15,000/-

7. Related Parties :-

a Name of related parties and description of relationship

(i) related parties where there is significant influences: -

Sandu Brothers Pvt.Ltd., Ascent Management Services, Noumura Realty & Constructions Pvt. Ltd.,

(ii) Key management personnel:-

Mr. Umesh B. Sandu - Managing Director

8. Contingent Liabilities :-

There are no contingent liability as on Balance Sheet date in the opinion of the Management.

Estimated amount of contracts remaining to be executed on Capital Account and not provided for Net of advances Rs. NIL

(Previous year Rs. NIL)

9. Previous years figures are regrouped and re-arranged wherever necessary to confrom to this years classification.

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Mar 31, 2010

1. Expenses on issue of equity shares amounting to Rs.33,30,133/-have been amortised over a period of ten years, and accordingly the balance one tenth of the same i.e. Rs.3,30,132/- have been charged to profit and loss account during the year and classified under the head Miscellaneous Expenses.

2. Balance of sundry debtors,creditors,loans and advances to the companies are subject to confirmation.

3. As regards to compliance of provision relating to the dues to the Small Scale Industries in terms to the companies(Amendment) Act, 1998, the Company has not received from any parties claim to be Small Scale Industries. Hence, the said information not given.

4. In the opinion of the Board of Directors, the current assets and loans and advances, have value on realisation in the ordinary course of business, atleast equal to the amount at which they are stated unless expressly stated otherwise.

5. The Company is in Pharmaceuticals Business and considering the organisational structure of the company and its internal financial reporting, the company has only one reporatble segment i.e. Pharmaceuticals considering the requiements of Accounting Standardson "Accounting Standard on Segment Reporting"(AS-17) issued by The Instiutute of Chartered Accountants of India. Accordingly the financial details as required under the standard are reflected in respect of the said segment in Profit and Loss Account and Balance Sheet.

6. Managerial remuneration :-

1) Profit and Loss Account includes remuneration paid to Shri Umesh B. Sandu, Managing Director and Company Secretary of the Company and the detail of the same are as follows:

Remuneration: Rs 11,86,080/-P.A., Directors sitting fees: Rs. 10,0007- And the same are in accordance with Schedule XIII of the companies Act, 1956.

2) Directors sitting fees to other Directors: Rs. 25,000/-

7. Related Parties :-

a Name of related parties and description of relationship (i) related parties where control exists:-

Sandu Brothers Pvt.Ltd. Ascent Management Services

(ii) Key management personnel:-

Mr. Umesh B. Sandu - Managing Director

8. Contingent Liabilities :-

Apart from gratuity there are no other contingent liability as on Balance Sheet date.

Estimated amount of contracts remaining to be executed on Capital Account and not provided for Net of advances Rs. NIL

(Previous year Rs. NIL)

9. Previous years figures are regrouped and re-arranged wherever necessary to confrom to this years classification.