Notes to Accounts of Source Natural Foods & Herbal Supplements Ltd.

Mar 31, 2024

d. Provisions

Provisions for legal claims, etc. are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest expense.

e. Income tax

Income tax expense comprises current and deferred tax. It is recognized in profit or loss except to the extent that it relates to an item recognized directly in equity or in other comprehensive income.

I. Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted as at the reporting date and applicable to the reporting period.

Current tax assets and liabilities are offset only if the Company:

1. has a legally enforceable right to set off the recognized amounts; and

2. intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. ii. Deferred tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also recognized in respect of carried forward tax losses.

Deferred tax is not recognized for:

• temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss at the time of the transaction;

• temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Company can control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

• taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which they can be used. In case of tax losses, the Company recognises a deferred tax asset only to the extent that it has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable profit will be available against

which such deferred tax asset can be realised.

Deferred tax assets, unrecognized or recognized, are reviewed at each reporting date and are recognized/ reduced to the extent that it is probable/ no longer probable respectively that the related tax benefit will be realised.

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

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or ondifferent tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

(f) Impairment of non-financial assets

The carrying amounts of the Company''s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset''s recoverable amount is estimated.

For impairment testing, assets that do not generate independent cash inflows are grouped together into cash generating units (CGUs). Each CGU represents the smallest group of assets that generates cash inflows that are largely independent of the cash inflows of other assets or CGUs.

The recoverable amount of a CGU (or an individual asset) is the higher of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the CGU (or the asset).

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its estimated recoverable amount. Impairment losses are recognized in the statement of profit and loss.

Impairment loss recognized in respect of a CGU is allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets of the CGU on a pro rata basis.

In respect of assets for which impairment loss has been recognized in prior periods, the Company reviews at each reporting date whether there is any indication that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. Such a reversal is made only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognized.

(g) Cash and cash equivalents

For presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within other current financial liabilities in the balance sheet.

(h) Financial instruments

Recognition and initial measurement

Trade receivables are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument.

Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the Management.

Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized in profit or loss.

Classification and subsequent measurement

I) Financial assets Classification

The Company classifies financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss on the basis of its business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.

Initial recognition and measurement

All financial assets are recognized initially at fair value. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Derecognition

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

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

2. The Company has transferred its rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset. If the Company enters into transactions whereby it transfers assets recognized on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognized.

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

4. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Impairment of financial assets

In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets:

1. Trade receivables

The Company follows ''simplified approach'' for recognition of impairment loss allowance on Trade receivables which do not contain a significant financing component.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

2. Others

For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss.

However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

ii) Financial liabilities Classification

Financial liabilities are classified as measured at amortised cost or fair value through profit and loss (''FVTPL''). A financial liability is classified as at FVTPL if it is classified as held - for - trading, or it is a derivative or it is designated as such on initial recognition.

Initial recognition and measurement

Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

Derecognition

Financial liabilities are derecognized when these are extinguished, that is when the obligation is discharged, cancelled or has expired.

(I) Property, plant and equipment

Items of property, plant and equipment are measured at historical cost, less accumulated depreciation and accumulated impairment losses, if any.Historical cost includes expenditure that is directly attributable to the acquisition of the assets incurred up to the date the asset is ready for its intended use.

Subsequent expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is de-recognized when replaced. All other repairs and maintenance costs are charged to profit or loss during the reporting period in which they are incurred.

Depreciation methods, estimated useful lives and residual value

Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives or, in the case of certain leased furniture, fittings and equipment, the shorter lease term as follows:

Asset Life of Assets

Office equipment 1-5 Years

Plant and equipment 1-7 Years

Furniture and fixtures 1-9 Years

Leasehold improvements 9 years or lease period whichever is less

The useful lives have been determined based on technical evaluation done by the management''s internal expert which are higher than those specified by Schedule II to the Companies Act, 2013, in order to reflect the actual usage of the assets.

The residual values are not more than 5% of the original cost of the asset. The assets'' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss within Other income / Other expenses.

(J) Intangible assets

Intangible assets purchased are initially measured at cost. Intangible assets acquired in a business combination are recognized at fair value at the acquisition date. Subsequently, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any.

The useful lives of intangible assets are assessed as either finite or indefinite. Finite-life intangible assets are amortised on a straight-line basis over the period of their estimated useful lives. Estimated useful lives by major class of finite-life intangible assets are as follows:

Computer software - 3 years

The amortisation period and the amortisation method for finite-life intangible assets is reviewed at each financial year end and adjusted prospectively, if appropriate.

For indefinite-life intangible assets, the assessment of indefinite life is reviewed annually to determine whether it continues; if not, it is impaired or changed prospectively basis revised estimates.

Internally generated:

Research and development Expenditure on research activities is recognized in profit or loss as incurred.

Development expenditure is capitalized as part of the cost of the resulting intangible asset only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development and to use the asset. Otherwise, it is recognized in profit or loss as incurred. Subsequent to initial recognition, the asset is measured at cost less accumulated amortization and any accumulated impairment losses.

(K) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of fiscal year which are unpaid. The amounts are unsecured. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method.

(l) Contributed equity

Equity shares are classified as equity.

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

(M) Earnings per share

i. Basic earnings per share

Basic earnings per share is calculated by dividing:

• the net profit/loss attributable to owners of the Company

• by the weighted average number of equity shares outstanding during the fiscal year

ii. Diluted earnings per share

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

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

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

(N) Statement of cash flows

The Company''s statement of cash flows is prepared using the Indirect method, whereby profit for the period is adjusted for the effect of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payment and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

34. Additional regulatory information required by Schedule II

i) Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

ii) Borrowing secured against current assets

The Company has sanctioned limit against overdraft facility, letter of credit and bank guarantee but the same has not been utilized during the year.

No security has been provided against these limits. No disclosure required against the sanctioned limits.

iii) Wilful defaulter

Company have not been declared wilful defaulter by any bank or financial institution or government or any government authority.

iv) Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act 1956 durring the financial year 2023-24

v) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013

vi) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year

vii) Utilisation of borrowed funds and share premium

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

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

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

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

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

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

viii) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account

ix) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year

x) Revaluation of PP&E, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

35. Defined benefit plan:

Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972, Employees who are in continuous service for a period of 5 years or more are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contribution to recognised funds in India.

As at 31 March 2023 52.38

Total amount recognised in profit or loss -5.89

As at 31 March 2024 46.49

The accompanying notes form an integral part of the financial statements.

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

For M/s Srinaga & Giridharan Source Natural Foods and Herbal Supplements Ltd

Chartered Accountants (CIN: L24231KA1995PLC101742)

S R Srinaga Arvind Varchaswi N Narayanan Narasimhan

Partner Managing Director Director

Membership No.022767 DIN:00143713 DIN:00143620

Firm Registration No.004013S R. Ramachandra Ruchi Chowdhury

UDIN: 24022767BKDMVB5336 Chief Financial Officer Company Secretary

Place : Bangalore | Date: 24-05-2024

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Mar 31, 2016

c) 47,86,891 Equity Shares are held by Sumeru Ayurveda Private Limted, the holding company as on 31st March, 2016 (Previous Year 44,50,000 Equity Shares)

1. The Deputy Commissioner (C.T.) had vide his Assessment order No. 2467/199-2000 has confirmed the action of C.T.O. Gowliguda and had issued a revised order to collect additional sales tax of Rs. 6,81,265 for the year 1999-2000. The company has effected payment of Rs. 3,40,633 towards 50% payment in respect of disputed sales tax liability for the Assessment year 1999-2000 pursuant to the order from Additional Commissioner. The Company received an order dated November 07, 2013 from the Deputy Commissioner that Rs. 343,633/- needs to be paid by the Company towards the sales tax collected during the period 1999-2000. The Company is yet to receive sales tax recovery order from the department for the same.

2. ESI Department has issued a show cause notice for Rs, 5,51,907 on adhoc basis vide their letter No. AP/Ins. I/52-5639-34/359 dated 26.11.2007 towards omission of contribution on different heads for the period 1999-2000 to 2001-2002. In contest to the Show Cause Notice, company has filed petition for stay vide No.436/09 in Employees Insurance Court, Andhra Pradesh, Hyderabad on 12.03.2009 and obtained stay order. Company has filed a petition challenging the order passed under section 45-A of the ESI Act and the subsequent recovery order issued by the department. The matter is before the ESI court at Hyderbad and the company is attending to the hearings and contesting that the said amount is not payable by company.

3. Commissioner of Central Excise, Hyderabad - IV has appealed to CESTAT against Order No. 7/2006 dated 31.10.2006 of Commissioner (Appeals-II). The Appellate tribunal dismissed the case in favour of the Company vide order passed on 21/11/2013 against which the department has went for an appeal in the tribunal. The Company had filed memorandum of objections against the appeal made by the department. Amount involved in the case is Rs. 13,42,727/This matter has been transferred to Hyderabad Office of the Central Excise Department and from now onwards the proceedings will be continued at Hyderabad Office of the Department.

4. The Assessment Order under CST Act 1956 was served on the Company on July 02, 2013. The order mentioned that net turnover of Rs. 16,30,835/- was not covered by C Forms and tax at 12.5% is payable on the same which amounts to Rs. 1,96,769/- along with the tax on interstate sales.

The Company had not received any prior communication before serving the Assessment Order and has filed an appeal before the Deputy Commissioner- Appeals by making a deposit of 12.5% on August 01, 2013.

Appeal is completed, Final Order from the department is awaited for. The Company had deposited Rs. 25,000 for the appeal. Consultant is following up for the order.

Further Re assessment order vide No.55926 under CST Act 1956 dated 28.11.2013 pertaining to the financial year 2009-10 was received . The order mentioned the balance tax payable is Rs.5,133/ only. This will be adjusted against existing CST credit of Rs.21,586.

5. The ongoing revenue/civil matter with PIL (Pochiraju Industries Limited) has not progressed for redressal of resolution . Hence the financial implications of the same are not ascertainable.

6. The Company had received order from Additional Commissioner of excise department for having availed cenvat credit without having any supporting documents during the month of October 2007 for an amount of Rs. 5,11,930/- even though the Company later submitted photocopies of all the invoices. The Company had filed a petition before Commissioner (Appeals) against the order of Additional Commissioner on April 30, 2013. The Commissioner (Appeals) passed an order in favour of the Company on September 20, 2013. The department later has appealed to the Central Excise Tribunal against the order passed by the Commissioner (Appeals). The Company has filed the memorandum of objections against the appeal with the tribunal.

The tribunal has rejected the appeal filed by the Department as the amount involved in this case is less than Rupees 10 lacs. Further communication from the Department is awaited.

7. The Company has received notice from Income Tax Department vide letter no. AAAC14536Q/1-101/07-08 proposing to disallow the deduction of work in progress for an amount of Rs. 30,62,512. The Company had filed appeal before the Commissioner of Income Tax Appeals-2 which was dismissed vide order dated April 13, 2015. The Company will be filing an appeal against the same with Income Tax Appellate Tribunal. If the said amount is eventually disallowed, the company’s loss as per Income Tax will be reduced.

Against the order of commissioner of Income Tax Appeals the company was in appeal before Income Tax Appellate Tribunal and Income Tax Appellate Tribunal has set aside the order of commissioner of Income Tax Appeal and sent the matter back to Commissioner of Income Tax Appeal for re-adjudicating the appeal.

8. Segment Reporting as per Accounting Standard - 17

Business Segment: The company is operating in a single segment ie. Ayurvedic Medicines and Health Supplements.

Geographical Segment: The company presently caters the needs of Indian public and the company is not operating in different economic environments and hence no information is provided under this standard.

Disclosure as required by the Accounting Standard 18 of the Institute of Chartered Accountants of India are given below:

Sumeru Ayurveda Private Limited Holding Company

Mr. Arvind Varchaswi N. Key Managerial Personnel

Mr. Narayanan Narasimhan Director

Mr. Vijayendra R Company Secretary,

Key Managerial Personnel

Sumeru Travel Solutions LLP Limited Liability Partnership

Sumeru Aviation LLP Limited Liability Partnership

Divine Services Partnership Firm

Madhurya Partnership Firm

Arvind Exports Partnership Firm

Broadvision Services Private Limited Private Limited Company

Advance Vital Enzymes Private Limited Private Limited Company

Advance Enzyme Technologies Limited Public Limited Company Broadvision Perspectives India Private Limited Private Limited Company Amar Bio Organics (India) Private Limited Private Limited Company

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Mar 31, 2015

1 44,50,000 Equity Share are held by Sumeru Ayurveda Private Limited, the holding company as on 31st March, 2015 (Previous Year 35,50,000 Equity Shares)

2 Contingent Liabilities Rs. In Lakhs

As on 31.03.2015 As on 31.03.2014

a. Bank guarantee against where Nil Nil counter Guarantee have been given

b. Claims against the Company not Nil Nil acknowledged as debt

3 The Deputy Commissioner (C.T.) had vide his Assessment order No. 2467/199-2000 has confirmed the action of C.T.O. Gowliguda and had issued a revised order to collect additional sales tax of Rs. 6,81,265 for the year 1999-2000. The company has effected payment of Rs. 3,40,633 towards 50% payment in respect of disputed sales tax liability for the Assessment year 1999-2000 pursuant to the order from Additional Commissioner. The Company received an order dated November 07, 2013 from the Deputy Commissioner that Rs. 343,633/- needs to be paid by the Company towards the sales tax collected during the period 1999-2000. The Company is yet to receive sales tax recovery order from the department for the same.

4 ESI Department has issued a show cause notice for Rs, 5,51,907 on adhoc basis vide their letter No. AP/Ins. 1/52-5639-34/359 dated 26.11.2007 towards omission of contribution on different heads for the period 1999-2000 to 2001-2002. In contest to the Show Cause Notice, company has filed petition for stay vide No.436/09 in Employees Insurance Court, Andhra Pradesh, Hyderabad on 12.03.2009 and obtained stay order. Company has filed a petition challenging the order passed under section 45-A of the ESI Act and the subsequent recovery order issued by the department.

5 Commissioner of Central Excise, Hyderabad - IV has appealed to CESTAT against Order No. 7/2006 dated 31.10.2006 of Commissioner (Appeals-II). The Appellate tribunal dismissed the case in favour of the Company vide order passed on 21/11/2013 against which the department has went for an appeal in the tribunal. The Company had filed memorandum of objections against the appeal made by the department. Amount involved in the case is Rs. 13,42,727/-

6 The Assessment Order No. 2944 under CST Act 1956 was served on the Company on July 02, 2013 pertaining to the FY 2009-10. The order mentioned that net turnover of Rs. 16,30,835/-was not covered by C Forms and tax at 12.5% is payable on the same which amounts to Rs. 196,769/- along with the tax on inter state sales. The Company had not received any prior communication before serving the Assessment Order and has filed an appeal before the Appeal Deputy Commissioner by making a deposit of 12.5% on August 01, 2013. Company has deposited Rs. 26719/- for the appeal. Final order from the department is awaited for.

Further Re Assessment order vide No.55926 under CST Act 1956 on dated 28/11/2013 pertaining to the FY 2009-10. The order mentioned only Balance tax payable is Rs.5133/-. The

Company has to file the letter at department for Adjustment against which is excess credit of Rs.21,586 /- available during the year.

7 The ongoing revenue/civil matter with PIL (Pochiraju Industries Limited) has not progressed for redressal of resolution. Hence the financial implications of the same are not ascertainable.

8 The Company had received order from Additional Commissioner of excise department for having availed cenvat credit without having any supporting documents during the month of October 2007 for an amount of Rs. 5,11,930/- even though the Company later submitted photocopies of all the invoices. The Company had filed a petition before Commissioner (Appeals) against the order of Additional Commissioner on April 30, 2013. The Commissioner (Appeals) passed an order in favour of the Company on September 20, 2013. The department later has appealed to the Central Excise Tribunal against the order passed by the Commissioner (Appeals). The Company has filed the memorandum of objections against the appeal with the tribunal.

9 The Company has received notice from Income Tax Department vide letter no. AAAC14536Q/1-101/07-08 proposing to disallow the deduction of work in progress for an amount of Rs. 30,62,512. The Company had filed appeal before the Commissioner of Income Tax Appeals-2 which was dismissed vide order dated April 13, 2015. The Company will be filing an appeal against the same with Income Tax Appellate Tribunal. If the said amount is eventually disallowed, the company's loss as per Income Tax will be reduced and there is no constitutionally liabilities . The company has prepared for file the appeal before IT return.

10. Segment Reporting as per Accounting Standard -17

Business Segment: The company is operating in a single segment ie. Ayurvedic Medicines and Health Supplements.

Geographical Segment: The company presently caters the needs of Indian public and the company is not operating in different economic environments and hence no information is provided under this standard.

11. Related Party Disclosure

Disclosure as required by the Accounting Standard 18 ofthe Institute of Chartered Accountants of India are given below:

Sumeru Ayurveda Private Limited Holding Company

Mr. Arvind Varchaswi N. Key Managerial Personnel

Mr. Narayanan Narasimhan Director

Ms. Rashmi P.G. Company Secretary, Key Managerial Personnel

Sumeru Travel Solutions LLP Limited Liability Partnership

Sumeru Aviation LLP Limited Liability Partnership

Divine Services Partnership Firm

Madhurya Partnership Firm

Arvind Exports Partnership Firm

Broadvision Services Private Limited Private Limited Company

Advance Vital Enzymes Private Limited Private Limited Company

Advance Enzyme Technologies Limited Public Limited Company

Broadvision Perspectives India Private Limited Private Limited Company

Amar Bio Organics (India) Private Limited Private Limited Company

12. Figures for the previous year have been re-grouped, re-classified and rearranged wherever necessary.

13. Since the Company is not aware of the SSI Status of its creditors, the amounts due to them have not been identified.

14. Paisa have been rounded off to the nearest rupee.

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Mar 31, 2014

1.1 Contingent Liabilities Rs. In Lakhs

As on 31.03.2014 As on 31.03.2013

a. Bank guarantee against where Nil Nil counter Guarantee have been given

b. Claims against the Company not Nil Nil acknowledged as debt

1.2 The Deputy Commissioner (C.T.) had vide his Assessment order No. 2467/199-2000 has confirmed the action of C.T.O. Gowliguda and had issued a revised order to collect additional sales tax of Rs. 6,81,265 for the year 1999-2000. The company has effected payment of Rs. 3,40,633 towards 50% payment in respect of disputed sales tax liability for the Assessment year 1999-2000 pursuant to the order from Additional Commissioner. The Company received a order dated November 07, 2013 from the Deputy Commissioner that Rs. 343,633/- needs to be paid by the Company towards the sales tax collected during the period 1999-2000.

1.3 ESI Department has issued a show cause notice for Rs, 5,51,907 on adhoc basis vide their letter No. AP/Ins. I/52-5639-34/359 dated 26.11.2007 towards omission of contribution on different heads for the period 1999-2000 to 2001-2002. In contest to the Show Cause Notice, company has filed petition for stay vide No.436/09 in Employees Insurance Court, Andhra Pradesh, Hyderabad on 12.03.2009 and obtained stay order. Company has now filed a petition challenging the order passed under section 45-A of the ESI Act and the subsequent recovery order issued by the department.

1.4 Commissioner of Central Excise, Hyderabad – IV has appealed to CESTAT against Order No. 7/2006 dated 31.10.2006 of Commissioner (Appeals-II). The Appellete tribunal dismissed the case in favour of the Company vide order passed on 21/11/2013 against which the department has went for an appeal in the tribunal. The Company has filed memorandum of objections against the appeal made by the department. Amount involved in the case is Rs. 13,42,727/- 22.5 We received a notice dated March 28, 2014 from the EPF department on April 2014 stating that there were certain belated payments being made by the Company for a period from 01/04/2000 to 31/12/2013 and the total amount of penalty and interest were charged to the Company for Rs. 1,25,557/-. Out of which Rs. 463 pertains to the belated payments made in the period from 2010-2012. The Company replied to the department that penalty amount upto March 2000 was already paid and we are waiting for the reply from the department.

1.5 ESI Department also raised a demand for Rs.8479 on actual basis vide their letter No. AP/Ins. I/52-5639-34/540 dated 27.11.2007 towards short payment of contributions for the period 04/01 to 08/01, 10& 11/01, 01/02 to 03/02, 04/02 to 05/02, 10/02 to 02/03.

1.6 PIL (Pochiraju Industries Limited) filed a petition on 23.01.2008 at III Additional Chief Judge, City Civil Court vide O.P.No.138/2008 for arbitration and for not to open locks of the factory. The Hon''ble judge after hearing dismissed the case.

PIL demanded Rs. 71.00 lakhs (Rs. 60.00 lakhs Security Deposit and Rs.11.00 lakhs towards commission for providing Technical Know how) vide their notice dated 25.03.2008.

The Company had to receive an amount of Rs. 53,67,803 for the year 2007-08 and 2008-09 from PIL. Hence Inwinex had adjusted the said amount from Rs. 60.00 lakhs of Security Deposit during 2009-10. Further during 2009-10 the company had adjusted an amount of Rs.3.00 lakhs towards Rent.

As the case is under Arbitration, if the Company is unable to adjust the said amounts against Security Deposit then the loss of the company will increase by Rs. 56,67,803.

The Court has dismissed the money suit case amounting to Rs. 11 lakhs since the other party did not submit the relevant documents.

1.7 The Company had received order from Additional Commissioner of excise department for having availed cenvat credit without having any supporting documents during the month of October 2007 for an amount of Rs. 5,11,930/- even though the Company later submitted photocopies of all the invoices. The Company had filed a petition before Commissioner (Appeals) against the order of Additional Commissioner on April 30, 2013. The Commissioner (Appeals) passed an order in favour of the Company on September 20, 2013. The department later has appealed to the Central Excise Tribunal against the order passed by the Commissioner (Appeals). The Company has filed the memorandum of objections against the appeal with the tribunal.

1.8 The Company has received notice from Income Tax Department vide letter no. AAAC14536Q/1-101/07-08 proposing to disallow the deduction of work in progress for an amount of Rs. 30,62,512. If the said amount is eventually disallowed, the company''s loss as per Income Tax will be reduced.

1.09 Deposits under Other Current Assets include amounts aggregating to Rs. 4,84,619 paid during the year towards arrear APGST for the years 1996-97, 1997-98 and 1998-99 against arrear notice dated 20.10.2009.

1.10 Deferred Revenue Expenditure:

During 2009-10 the company had incurred certain expenditure of non recurring nature like payment of underwriting commission, capital reduction scheme expenses, etc which were deferred for a period of five years commencing from 2009-10.

1.11 The Company has adopted AS 22 – Accounting for Taxes on Income. The accumulated net deferred tax asset on account of timing difference between book and tax loss has not been recognised due to virtual uncertainty that there will be future taxable income in near future available to realise such losses.

2. Segment Reporting as per Accounting Standard – 17

Business Segment: The company is operating in a single segment ie. Ayurvedic Medicines and Health Supplements.

Geographical Segment: The company presently caters the needs of Indian public and the company is not operating in different economic environments and hence no information is provided under this standard.

3. Figures for the previous year have been re-grouped, re-classified and rearranged wherever necessary.

4. Since the Company is not aware of the SSI Status of its creditors, the amounts due to them have not been identified.

5. Paisa have been rounded off to the nearest rupee.

---

Mar 31, 2013

1.1 The Deputy Commissioner (C.T.) had vide his Assessment order No. 2467/199-2000 has confirmed the action of C.T.O. Gowliguda and had issued a revised order to collect additional sales tax of Rs. 6,81,265 for the year 1999-2000. The company has effected payment of Rs. 3,40,633 towards 50% payment in respect of disputed sales tax liability for the Assessment year 1999-2000 pursuant to the order from Additional Commissioner. The Company later appealed to Sales Tax Appellate Tribunal wherein the tribunal has allowed appeal against the revision orders of the department vide STAT''s order dated 01-12-2010 vide TA No. 936/2001 and has directed the revisional authority to The Company received a notice from the Deputy Commissioner that Rs. 17,320 payable for which the Company replied that Tribunal Order needs to be considered and Rs. 342,633/- which is deposited before appeal needs to be refunded.

1.2 ESI Department has issued a show cause notice for Rs, 5,51,907 on adhoc basis vide their letter No. AP/Ins. I/52- 5639-34/359 dated 26.11.2007 towards omission of contribution on different heads for the period 1999-2000 to 2001-2002. In contest to the Show Cause Notice, company has filed petition for stay vide No.436/09 in Employees Insurance Court, Andhra Pradesh, Hyderabad on 12.03.2009 and obtained stay order. Company has now filed a petition challenging the order passed under section 45-A of the ESI Act and the subsequent recovery order issued by the department.

1.3 ESI Department also raised a demand for Rs.8479 on actual basis vie their letter No. AP/Ins. I/52-5639-34/540 dated 27.11.2007 towards short payment of contributions for the period 04/01 to 08/01, 10& 11/01, 01/02 to 03/02, 04/02 to 05/02, 10/02 to 02/03.

1.4 PIL (Pochiraju Industries Limited) filed a petition on 23.01.2008 at III Additional Chief Judge, City Civil Court vide O.P.No.138/2008 for arbitration and for not to open locks of the factory. The Hon''ble judge after hearing dismissed the case.

PIL demanded Rs. 71.00 lakhs (Rs. 60.00 lakhs Security Deposit and Rs.11.00 lakhs towards commission for providing Technical Know how) vide their notice dated 25.03.2008.

Inwinex had to receive an amount of Rs. 53,67,803 for the year 2007-08 and 2008-09 from PIL. Hence Inwinex had adjusted the said amount from Rs. 60.00 lakhs of Security Deposit during 2009-10. Further during 2009-10 the company had adjusted an amount of Rs.3.00 lakhs towards Rent.

As the case is under Arbitration, if the Company is unable to adjust the said amounts against Security Deposit then the loss of the company will increase by Rs. 56,67,803.

The Court has dismissed the money suit case amounting to Rs. 11 lakhs since the other party did not submit the relevant documents.

1.5 The Company has received order from Additional Commissioner of excise department for having availed cenvat credit without having any supporting documents during the month of October 2007 for an amount of Rs. 5,11,930/- even though the Company later submitted photocopies of all the invoices. The Company has filed a petition before Commissioner (Appeals) against the order of Additional Commissioner on April 30, 2013.

1.6 The Company has received notice from Income Tax Department vide letter no. AAAC14536Q/1-101/07-08 proposing to disallow the deduction of work in progress for an amount of Rs. 30,62,512. If the said amount is eventually disallowed, the company''s loss as per Income Tax will be reduced.

1.7 Deposits under Other Current Assets include amounts aggregating to Rs. 4,84,619 paid during the year towards arrear APGST for the years 1996-97, 1997-98 and 1998-99 against arrear notice dated 20.10.2009.

1.8 Deferred Revenue Expenditure:

During 2009-10 the company had incurred certain expenditure of non recurring nature like payment of underwriting commission, capital reduction scheme expenses, etc which were deferred for a period of five years commencing from 2009-10.

1.9 The Company has adopted AS 22 – Accounting for Taxes on Income. The accumulated net deferred tax asset on account of timing difference between book and tax loss has not been recognised due to virtual uncertainty that there will be future taxable income in near future available to realise such losses.

2. Segment Reporting as per Accounting Standard – 17

Business Segment: The company is operating in a single segment ie. Ayurvedic Medicines and Health Supplements.

Geographical Segment: The company presently caters the needs of Indian public and the company is not operating in different economic environment and hence no information is provided under this standard.

3. Related Party Disclosure

Disclosure as required by the Accounting Standard 18 of the Institute of Chartered Accountants of India are given below:

Sumeru Ayurveda Private Ltd Holding Company

Mr. Arvind Varchaswi N. Key Managerial Personnel

Mr. Narayanan Narasimhan Relative of Key Managerial Personnel

Sumeru Travel Solutions LLP Limited Liability Partnership

Sumeru Aviation Private Ltd Associate Company

Divine Services Partnership Firm

Madhurya Partnership Firm

Arvind Exports Partnership Firm

Broadvision Services Private Ltd Associate Company

Advance Vital Enzhymes Limited Associate Company

Advance Enzyme Technologies Limited Associate Company

Broadvision Prospective India Private Limited Associate Company

Amar Bio Organics (India) Private Limited Associate Company

Sri Sri Ayurveda Trust Associate Entity

4. Figures for the previous year have been re-grouped, re-classified and rearranged wherever necessary.

5. Since the Company is not aware of the SSI Status of its creditors, the amounts due to them have not been iden

6. Paisa have been rounded off to the nearest rupee.

---

Mar 31, 2012

A) 28,50,000 Equity Shares are held bv Sumeru Ayurveda Private Limted, the holdinq company as on March 31, 2012 (Previous Year 28,50,000 Equity Shares)

1.1 Contingent Liabilities Rs. In Lakhs

As on 31.03.2012 As on 31.03.2011

a. Bank guarantee against where counter Nil Nil Guarantee have been given

b. Claims against the Company not Nil Nil acknowledged as debt

C. The Deputy Commissioner (C.T.) has vide his Assessment order No. 2467/199-2000 has confirmed the action of C.T.O. Gowliguda and has issued a revised order to collect additional sales tax of Rs. 6,81.265 for the year 1999-2000. The Additional Commissioner (C.T.) legal vide his order LI 1(1 )564/2004 dated 22.03.2004 passed on a order staying the collection as the disputed tax subject to the condition that the Company shall pay 50% before 30.03.2004 pending disposal of the main appeal before STAT. The company has effected payment of Rs. 3,40,633 towards 50% payment in respect of disputed sales tax liability for the Assessment year 1999-2000. Pending final disposal of the disputed liability, the same has been reflected under loans and advances.

1.2 ESI Department has issued a show cause notice for Rs, 5,51,907 on adhoc basis vide their letter No. AP/Ins. 1/52-5639-34/359 dated 26.11.2007 towards omission of contribution on different heads for the period 1999-2000 to 2001-2002. In contest to the Show Cause Notice, company has filed petition for stay vide No.436/09 in Employees Insurance Court, Andhra Pradesh, Hyderabad on 1203.2009 and obtained stay order.

1.3 ESI Department also raised a demand for Rs.8479 on actual basis vie their letter No. AP/Ins. 1/52- 5639-34/540 dated 27.11.2007 towards short payment of contributions for the period 04/01 to 08/01, 10& 11/01, 01/02 to 03/02, 04/02 to 05/02, 10/02 to 02/03.

1.4 Commissioner of Central Excise, Hyderabad -IV has appealed to CESTAT against the Order No.7/2006 dated 31.10.2006 of Commissioner (Appeals-II) for stay and set aside the order of the Commissioner (Appeals -II). Amount involved in the Appeal is Rs. 13,42,727.

1.5 PIL (Pochiraju Industries Limited) filed a petition on 23.01.2008 at III Additional Chief Judge, City Civil Court vide O.P.No. 138/2008 for arbitration and for not to open locks of the factory. The Hon'ble judge after hearing dismissed the case.

PIL demanded Rs. 71.00 lakhs (Rs. 60.00 lakhs Security Deposit and Rs. 11.00 lakhs towards commission for providing Technical Know how) vide their notice dated 25.03.2008.

Inwinex had to receive an amount of Rs. 53,67,803 for the year 2007-08 and 2008-09 from PIL. Hence Inwinex had adjusted the said amount from Rs. 60.00 lakhs of Security Deposit during 2009-10. Further during 2009-10 the company had adjusted an amount of Rs.3.00 lakhs towards Rent.

As the case is under Arbitration, if the Company is unable to adjust the said amounts against Security Deposit then the loss of the company will increase by Rs. 56,67,803.

1.6 The Company has received a show cause notice from the excise department for having availed cenvat credit without having any supporting documents during the month of October 2007 for an amount of Rs. 5,11,930/-. However, the Company later submitted photocopies of all the invoices. Reply from the department has been awaited.

1.7 Deposits under Other Current Assets include amounts aggregating to Rs. 4,84,619 paid during the year 1 towards arrear APGST for the years 1996-97, 1997-98 and 1998-99 against arrear notice dated 20.10.2009.

1.8 Deferred Revenue Expenditure:

During 2009-10 the company had incurred certain expenditure of non recurring nature like payment of underwriting commission, capital reduction scheme expenses, etc which were deferred for a period of five years commencing from 2009-10.

1.9 The Company has adopted AS 22 - Accounting for Taxes on Income. The accumulated net deferred tax asset on account of timing difference between book and tax loss has not been recognised due to virtual uncertainty that there will be future taxable income in near future available to realise such losses.

2. Segment Reporting as per Accounting Standard - 17

Business Segment: The company is operating in a single segment ie. Ayurvedic Medicines and Health

Supplements.

Geographical Segment: The company presently caters the needs of Indian public and the company is not

operating in different economic environment and hence no information is provided under this standard.

3. Figures for the previous year have been re-grouped, re-classified and rearranged wherever necessary.

4. Since the Company is not aware of the SSI Status of its creditors, the amounts due to them have not been identified.

5. Paisa have been rounded off to the nearest rupee.

---

Mar 31, 2010

Rs in Lacs

1. Contingent Liabilities As on As on 31.03.10 31.03.09

a. Bank guarantee against where counter Guarantee Nil Nil has been given

b. Claim against the Company not acknowledge as debt Nil Nil

c. State subsidy subject to compliance of certain Nil 20.00 Conditions

d. The Deputy Commissioner (C.T.) has vide his Assessment order No. 2467/1999-2000 has confirmed the action of C.T.O. Gowliguda and has issued a revised order to collect additional sales tax of Rs.6,81,265/- for the year 1999-2000. The Additional Commissioner (C.T.) legal vide his order LIl(l)/564/2004 dated 22.03.2004 passed an a order staying the collection as the disputed tax subject to the condition that the company shall pay 50% before 30.03.2004 pending disposal of the main appeal before STAT. The company has effected payment of Rs.3,40,633/- towards 50% payment in respect of disputed sales tax liability for the Assessment year 1999-2000. Pending final disposal of the disputed liability, the same has been reflected under loans and advances.

2. ESI Department has issued a show cause notice for Rs.551,907 on adhoc basis vide their letter No.AP/Ins.I/52-5639-34/539 dated 26.11.2007 towards omission of contribution on different heads for the period 1999-2000 to 2001-2002. In contest to the Show Cause Notice, company has filed petition for stay vide No.436/09 in Employees Insurance court, Andhra Pradesh, Hyderabad on 12.03.2009 & obtained stay order.

3. ESI Department also raised a demand for Rs.8479/- on actual basis vide their letter No.AP/Ins.I/52- 5639-34/540 dated 27.11.2007 towards short payment of contributions for the period 04/01 to 08/01, 10 & 11/01, 01/02 to 03/02, 04/02 to 05/02, 10/02 to 02/03.

4. Commissioner of Central Excise, Hyderabad - IV has appealed to CESTAT against the Order No.7/2006 dated 31.10.2006 of Commissioner (Appeals -II) for stay & set aside the order of the Commissioner (Appeals-II). Amount involved in the Appeal is Rs. 13,42,727/-.

5. PIL (Pochiraju Industries Limited) filed a petition on 23.01.2008 at III Additional Chief Judge, City Civil Court vide O.P.No. 138/2008 for arbitration and for not to open locks of the factory. The Honble judge after hearing dismissed the case.

PIL demanded Rs.71.00 Lacs (Rs.60.00 Lacs Security Deposit & Rs. 11.00 Lacs towards Commission for providing Technical Know how) vide their notice dated 25.03.2008.

Inwinex has to receive an amount of Rs.5367803/- for the year 2007-2008 & 2008-2009 from PIL. Hence, Inwinex has adjusted the said amount from Rs.60.00 Lacs of Security Deposit.

Further during the financial year, company has adjusted an amount of Rs.300,000/- towards Rent.

As the case is under Arbitration, if the Company is unable to adjust the said amount against Security Deposit then the loss of the company will increase by Rs.56,67,803/-.

6. Excise Duty of Rs. 13,952/- is charged to Profit & Loss Account.

7. Deferred Revenue Expenditure:

During the year company has incurred certain expenditure of non recurring nature like payment of underwriting commission, capital reduction scheme expenses, etc which were deferred to current and subsequent four years equally.

8. During the year, the company has adjusted state subsidy of Rs.20,00,000 against Plant and Machinery.

9. The Company has adopted AS 22 - Accounting for Taxes on Income. The accumulated net deferred tax assets amounts to Rs. 146.65 Lacs on account of timing differences between book and tax losses as on 1.4.2010.

The Company has not recognized the above deferred tax assets due to virtual uncertainty that there will be future taxable income available to realize such losses.

10. ADDITIONAL INFORMATION PURSUANT TO THE PROVISIONS OF PARAGRAPHS 3, 4C & 4D OF PART II OF THE SCHEDULE VI OF THE COMPANIES ACT,1956.

A. CLASS OF GOODS CAPACITY AND PRODUCTION :

Class of goods manufactured : Allopathic & Ayurvedic Formulations

I. Licensed Capacity : NOT APPLICABLE

II. Installed Capacity : As certified by management

11. Prior period adjustments is Rs.Nil

12. Balance of Sundry Creditors, Sundry debtors, Loans, advances and deposits are subject to confirmation from parties concerned and reconciliation thereof.

13. Segment reporting as per Accounting Standard - 17

Business Segment : The Company is operating in two segments i.e. Allopathic and Ayurvedic Formulations. The revenue generated by the Allopathic formulations is Nil. Hence, it is not required to disclose figures for both the segments separately.

Geographical Segment : The Company presently caters the needs of the Indian public and the company is not operating in different economic environment and hence no information is provided under this standard.

14. RELATED PARTY DISCLOUSERS

Disclosures as required by the Accounting Standard 18 of the Institute of Chartered Accountants of India are given below:

a) Ionic Healthcare Private Ltd. Associate Company

Jenirik Products Partnership firm

Sumeru Ayurveda Pvt. Ltd Associate Company

Arvind Varchaswi Director, Sumeru Ayurveda Pvt. Ltd.

Narasimhan. N Director, Sumeru Ayurveda Pvt. Ltd

Ashok Kumar Agarwal Brother of Sri Ramesh Chandra Agarwal

b) Key Management Personnel

Ramesh Chandra Agarwal Managing Director

Manmohan Agarwal Executive Director

15. Figures for the previous year have re-grouped, re-classified and rearranged wherever necessary.

16. Since the Company is not aware of the SSI status of its creditors, the amounts due to them have not been identified.

17. Paise have been rounded off to the nearest rupee.

---

Mar 31, 2009

Rs in Lacs

1. Contingent Liabilities As on As on 31.03.09 31.03.08

a. Bank guarantee against where counter Guarantee has been given Nil Nil

b. Claim against the Company not acknowledge as debt Nil Nil

c. State subsidy subject to compliance of certain Conditions 20.00 20.00

d. The Deputy Commissioner (C.T.) has vide his Assessment order No. 2467/1999-2000 has confirmed the action of C.T.O. Gowliguda and has issued a revised order to collect additional sales tax of Rs.6,81,265/- for the year 1999-2000. The Additional Commissioner (C.T.) legal vide his order L11(l)/564/2004 dated 22.03.2004 passed an a order staying the collection as the disputed tax subject to the condition that the company shall pay 50% before 30.03.2004 pending disposal of the main appeal before STAT. The company has effected payment of Rs.3,40,633/- towards 50% payment in respect of disputed sales tax liability for the Assessment year 1999-2000. Pending final disposal of the disputed liability, the same has been reflected under loans and advances.

2. ESI Department has issued a show cause notice for Rs.551,907 on adhoc basis vide their letter No.AP/Tns.I/52-5639-34/539 dated 26.11.2007 towards omission of contribution on different heads for the period 1999-2000 to 2001-2002. In contest to the Show Cause Notice, company has filed petition for stay vide No.436/09 in Employees Insurance court, Andhra Pradesh, Hyderabad on 12.03.2009 & obtained stay order.

3. ESI Department also raised a demand for Rs.8479/- on actual basis vide their letter No.AP/Ins.I/52-5639-34/540 dated 27.11.2007 towards short payment of contributions for the period 04/01 to 08/01, 10 & 11/01, 01/02 to 03/02, 04/02 to 05/02, 10/02 to 02/03.

4. Commissioner of Central Excise, Hyderabad - IV has appealed to CESTAT against the Order No.7/2006 dated 31.10.2006 of Commissioner (Appeals -II) for stay & set aside the order of the Commissioner (Appeals-II). Amount involved in the Appeal is Rs. 13,42,727/-.

5. Contingent liability of Rs.358,701/- on account of delay in delivery of consignment to TNMSC with TVS Southern Roadways was settled on payment of Rs.200,000/- and the suit filed by TVS is withdrawn.

6. No Excise Duty is charged to Profit & Loss Account as there is no Sales during the year.

7. The Company has adopted AS 22 - Accounting for Taxes on Income. The accumulated net deferred tax assets amounts to Rs.146.40 Lacs on account of timing differences between book and tax losses as on 1.4.2009.

The Company has not recognized the above deferred tax assets due to virtual uncertainty that there will be future taxable income available to realize such losses.

8. ADDITIONAL INFORMATION PURSUANT TO THE PROVISIONS OF PARAGRAPHS 3,4C & 4D OF PART II OF THE SCHEDULE VI OF THE COMPANIES ACT,1956.

A. CLASS OF GOODS CAPACITY AND PRODUCTION :

Class of goods manufactured : Allopathic & Ayurvedic Formulations

I. Licensed Capacity : NOT APPLICABLE

II. Installed Capacity : As certified by management

9. Prior period adjustments is Rs.Nil

10. Balance of Sundry Creditors, Sundry debtors, Loans, advances and deposits are subject to confirmation from parties concerned and reconciliation thereof.

11.Segment reporting as per Accounting Standard - 17

Business Segment : The Company is operating in two segments i.e. Allopathic and Ayurvedic Formulations. The revenue generated by the Ayurvedic formulations is less than 10%. Hence, it is not required to disclose figures for both the segments separately.

Geographical Segment : The Company presently caters the needs of the Indian public and the company is not operating in different economic environment and hence no information is provided under this standard.

12. RELATED PARTY DISCLOUSERS

Disclosures as required by the Accounting Standard 18 of the Institute of Chartered Accountants of India are given below:

a) Ionic Healthcare Private Ltd. Associate Company

Jenirik Products Partnership firm

Sumeru Ayurveda Pvt. Ltd Associate Company

Arvind Varchaswi Director, Sumeru Ayurveda Pvt. Ltd.

Narasimhan. N Director, Sumeru Ayurveda Pvt. Ltd

Ashok Kumar Agarwal Brother of Sri Ramesh Chandra Agarwal

Praveen Kumar Agarwal Son of Sri Ramesh Chandra Agarwal

b) Key Management Personnel

Ramesh Chandra Agarwal Managing Director

Manmohan Agarwal Executive Director



13. Figures for the previous year have re-grouped, re-classified and rearranged wherever necessary.

14. Since the Company is not aware of the SSI status of its creditors, the amount due to them have not been identified.

15. Paise have been rounded of to the nearest rupee.