Notes to Accounts of Vivimed Labs Ltd.

Mar 31, 2024

2.13Provisions

Provision for legal claims is 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
not recognized for future operating losses.

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 provisions due to
the passage of time is recognized as interest expense. Provision for
litigation related obligation represents liabilities that are expected
to materialize in respect of matters in appeal.

2.14Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, bonus, ex-gratia etc. that
are expected to be settled wholly within 12 months after the
end of the period in which the employees render the related
service are recognized in respect of employees'' services up
to the end of the reporting period and are measured at the
amounts expected to be paid when the liabilities are settled.
The liabilities are presented as current employee benefit
obligations in the balance sheet.

(ii) Long-term employee benefit obligations

The liabilities for compensated absences are not expected
to be settled wholly within 12 months after the end of the
period in which the employees render the related service.
They are therefore measured as the present value of expected
future payments to be made in respect of services provided

by employees up to the end of the reporting period using the
projected unit credit method. The benefits are discounted using
the market yields at the end of the reporting period that have
terms approximating to the terms of the related obligations.
Remeasurements as a result of the experience adjustments and
changes in actuarial assumptions are recognized in profit or loss.
The obligations are presented as current liabilities in the
balance sheet if the entity does not have an unconditional
right to defer settlement for at least twelve months after the
reporting period, regardless of when the actual settlement is
expected to occur.

(iii) Post-employment obligations

The Company operates the following postemployment schemes:

a) Defined benefit plans-Gratuity obligations

The liability or assets recognized in the balance sheet in
respect of defined benefit gratuity plans is the present
value of the defined benefit obligations at the end of
the reporting period less the fair value of plan assets.
The defined benefit obligation is calculated annually by
actuaries using the projected unit credit method.

The present value of the defined benefit obligation
denominated in INR is determined by discounting the
estimated future cash outflows by reference to market
yields at the end of the reporting period on government
bonds that have terms approximating to the terms of the
related obligation. The benefits which are denominated
in currency other than INR, the cash flows are discounted
using market yields determined by reference to high-
quality corporate bonds that are denominated in the
currency in which the benefits will be paid, and that have
terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount
rate to the net balance of the defined benefit obligation
and the fair value of plan assets. This cost is included in
employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience
adjustments and change in actuarial assumptions are
recognized in the period in which they occur, directly
in other comprehensive income. They are included in
retained earnings in the statement of changes in equity
and in the balance sheet.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or

curtailments are recognized immediately in profit or loss
as past service cost.

I n respect of funded post-employment defined benefit
plans, amounts due for payment within 12 months to
the fund may be treated as ''current'' Regarding unfunded
post-employment benefit plans, settlement obligations
which are due within 12 months in respect of employees
who have resigned or expected to resign or are due for
retirement within the next 12 months is ''current''. The
remaining amount attributable to other employees, who
are likely to continue in the services for more than a year, is
classified as "non-current".

Normally an actuary should determine the amount of
current and non-current liability for unfunded post¬
employment benefit obligations.

b) Defined contribution plans

The Company pays provident fund contributions to
publicly administered funds as per local regulations.
The Company has no further payment obligations once
the contributions have been paid. The contributions
are accounted for as defined contribution plans and the
contributions are recognized as employee benefit expense
when they are due. Termination benefits in the nature
of voluntary retirement benefits are recognised in the
Statement of Profit and Loss as and when incurred.

2.15 Dividends:

Provision is made for the amount of any dividend declared, being
appropriately authorized and no longer at the discretion of the
entity, on or before the end of the reporting period but not
distributed at the end of the reporting period. Proposed dividend
is recognised as a liability in the period in which it is declared by
the Company, usually when approved by shareholders in a general
meeting, or paid

2.16 Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

• The profit attributable to owners of the Company

• By the weighted average number of equity shares
outstanding during the financial year, adjusted for bonus
elements in equity shares issued during the 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.

2.17Contingent liabilities &Commitments

Contingent liability is disclosed in the case of:

- a present obligation arising from past events, when it is not
probable that an outflow of resources will be required to settle
the obligation.

- a present obligation arising from past events when no reliable
estimate possible.

- a possible obligation arising from past events unless the
probability of outflow of resources is remote.

Commitments include the amount of purchase order (net of
advances) issued to parties for completion of assets.

2.18 Critical estimates and Judgements:

The preparation of financial statements requires the use of
accounting estimates which, by definition, will seldom equal the
actual results. Management also exercise judgement in applying
the Company''s accounting policies.

Detailed information about the areas that involved a higher degree
ofjudgement or complexity, and of items which are more likely to be
materially adjusted due to estimates and assumptions turning out
to be different than those originally assessed. Detailed information
about each of these estimates and judgements is included

In relevant notes together with information about the basis of
calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgements are:

(i) Estimation of current tax expense and current tax payable -
refer Note: 31

(ii) Estimation of defined benefit obligations- refer note: 18

(iii) Allowance for uncollected accounts receivable and advances.
Trade receivables do not carry any interest and are stated at
their nominal value as reduced by appropriate allowances for
estimated irrevocable amounts. Individual trade receivables
are written off when management deems them not to be
collectible. Impairment is made on the expected credit losses,
which are the present value of the cash shortfall over the
expected life of the financial assets.

Estimates and judgements are continually evaluated. They are based
on historical experience and other factors, including expectations
of future events that may have a financial impact on the company
and that are believed to be reasonable under the circumstances.

2.19 Government grants:

Grants from the government are recognised at their fair value where
there is a reasonable assurance that the grant will be received and
the company will comply with all attached conditions.

Government grants relating to income are deferred and recognised
in the profit or loss over the period necessary to match them with
the costs that they are intended to compensate and presented
within other income.

Government grants relating to the purchase of property, plant
and equipment are included in non-current liabilities as deferred
income and are credited to profit or loss on a straight-line basis over
the expected lives of the related assets and presented within other
income

Export incentives comprise of Duty draw back and MEIS
(Merchandise Exports Incentive scheme) scrips. Export entitlements
from government authorities are recognised in the statement of
profit and loss as income or as a reduction from "Cost of materials
consumed", when there is reasonable assurance that the entity will
comply with the conditions attaching to them and the grants will be
received

2.20 Rounding of Amounts:

All amounts disclosed in the financial statements and notes have
been rounded off to the nearest Million as per the requirement of
Schedule III of the Companies Act, 2013 unless otherwise stated.

A. Loans:

Loan from Banks consists of:

(i) Loan taken from SBI for C700 mn (USD 10.1 mn)repayable in 16 instalments from October 2017 to June 2022. This loan carries an interest rate
of 16.5%. The same has been defaulted by the Company and So, the company is in negotiation with SBI for settlement.

Loan from Financial Institutions consists of:

(i) ECB loan taken from IFC for USD 12.5 million repayable in 10 instalments from June 2015 to December 2019 and Company has applied for
extenstion and its underprocess. This loan carries an interest rate of 6.02%.

All the term loans are secured by a charge on the moveable and immovable assets of the Company, present and future, with a paripassu charge.

B. Sales tax deferrment loan:

The Company has been granted an interest free sales tax deferment loan by the Government of Andhra Pradesh. This loan is unsecured.

C. FCCB''s from Financial Institutions:

The Company has obtained an FCCB from IFC in June 2011 for an amount of USD 7.5 million repayable in 5 years with a coupon rate of 0.55% per
annum and an interest rate of 4.23% per annum compounded semiannually if the conversion option is not exercised. Subsequently, the due date
for payment has been extended upto 30 September 2019. The Company has applied for extenstion and its underprocess. The entire portion was
classified under "Borrowings", and there is no equity portion of the instrument.

D. Cash credits and packaging credit loans:

The Company has working capital facilities in the form of cash credits and packaging credit from State Bank of India, Indian Bank( Erst.Allahabad
Bank), Bank of Bahrain and Kuwait and Exim with interest rates varying between 14.5% to 16.5%.

During the previous year, EXIM Bank have not renewed PCFC facility and the loan was called back during the previous year. During the year, Loan
taken from EXIM Bank have been repaid under One Time Settlement and no due certificate obtained.

E. The Company has defaulted in repayment of dues to Banks and Financial institution amounting to C3751.06 million as on 31.03.2024 as per books
of Account including the interest. All the loan accounts outstanding as on 31.03.2024 are classified as NPA by the banks.

F. The company has not been declared as willful defaulter by any bank or financial institution.

34 The company doesn''t have any transactions which are not recorded in books of accounts that has been surrender or disclosed for tax assessments

under Income Tax Act, 1961 during the year.

35 The Company doesn''t have any transactions or relationship with struck off companies.

35.1 The company has not made any long term contracts including derivative contracts for which there were any material foreseeable losses as
on 31-03-2024

36 The Company has not advanced or loaned or invested any funds (either from borrowed funds or share premium or any other sources or kind of

funds) to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing
or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
("Ultimate Beneficiaries") by or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

37 The company has not received any funds from any persons or entities, including foreign entities ("Funding Parties"), 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 whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Parties or provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries

38 The company has not traded or invested in crypto currency or virtual currency during the financial year.

39 The company has complied with number of layers prescribed under clause (87) of section 2 of the act read with company rules,2017

40 There are no charges or satisfaction of charges yet to be registered with ROC beyond the statutory period

41 The company has not applied for any scheme of arrangements in terms of section 230 to 237 of the companies act. .

45 Gratuity / Leave Encashment / Sick Leave

The Company provides its employees with benefits under a defined benefit plan, referred to as the "Gratuity Plan". The Gratuity Plan entitles an
employee, who has rendered at least five years of continuous service, to receive 15 days salary for each year of completed service (service of six
months and above is rounded off as one year) at the time of retirement/exit, restricted to a sum of C2,000,000.

The following tables summarize the components of net benefit expense recognised in the statement of profit or loss and the amounts recognised in
the balance sheet for the plan:

48 Earnings per share

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders 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 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.

52 Subsequent Events

There are no significant events that occurred after the balance sheet date.

53 Prior year comparatives

The figures of the previous year have been regrouped/reclassified, where necessary, to conform with the current year''s classification.

The accompanying notes are an integral part of the standalone financial statements.

As per our report of even date attached

for SVRL & Co. for and on behalf of the Board of Directors of

Chartered Accountants Vivimed Labs Limited

ICAI Firm Registration Number: 016182S CIN: L02411KA1988PLC009465

Sd/- Sd/- Sd/-

G. Ramakrishna Santosh Varalwar Manohar Rao Varalwar

Partner Managing Director Whole-Time Director

Membership No.: 213487 DIN: 00054763 DIN: 00059815

UDIN: 24213487BKHRAH1614 Sd/-

Yugandhar Kopparthi

Place: Hyderabad Company Secretary

Date: 14-11-2024 M. No: ACS19315

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Mar 31, 2023

2.13Provisions

Provision for legal claims is 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 not recognized for future operating losses.

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 provisions due to the passage of time is recognized as interest expense. Provision for litigation related obligation represents liabilities that are expected to materialize in respect of matters in appeal.

2.14Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, bonus, ex-gratia etc. that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

(ii) Long-term employee benefit obligations

The liabilities for compensated absences are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligations. Remeasurements as a result of the experience adjustments and changes in actuarial assumptions are recognized in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

(iii) Post-employment obligations

The Company operates the following postemployment schemes:

a) Defined benefit plans-Gratuity obligations

The liability or assets recognized in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligations at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation. The benefits which are denominated in currency other than INR, the cash flows are discounted using market yields determined by reference to high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms approximating to the terms of the related obligation. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and change in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss as past service cost.

I n respect of funded post-employment defined benefit plans, amounts due for payment within 12 months to the fund may be treated as ''current'' Regarding unfunded post-employment benefit plans, settlement obligations which are due within 12 months in respect of employees who have resigned or expected to resign or are due for retirement within the next 12 months is ''current''. The remaining amount attributable to other employees, who are likely to continue in the services for more than a year, is classified as "non-current".

Normally an actuary should determine the amount of current and non-current liability for unfunded postemployment benefit obligations.

b) Defined contribution plans

The Company pays provident fund contributions to publicly administered funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognized as employee benefit expense when they are due. Termination benefits in the nature of voluntary retirement benefits are recognised in the Statement of Profit and Loss as and when incurred.

2.15Dividends:

Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period. Proposed dividend is recognised as a liability in the period in which it is declared by the Company, usually when approved by shareholders in a general meeting, or paid.

2.16Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

• The profit attributable to owners of the Company

• By the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the 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.

2.17Contingent liabilities &Commitments

Contingent liability is disclosed in the case of:

- a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation.

- a present obligation arising from past events when no reliable estimate possible.

- a possible obligation arising from past events unless the probability of outflow of resources is remote.

Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets.

2.18Critical estimates and Judgements:

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also exercise judgement in applying the Company''s accounting policies.

Detailed information about the areas that involved a higher degree ofjudgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included

In relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgements are:

(i) Estimation of current tax expense and current tax payable -refer Note: 31

(ii) Estimation of defined benefit obligations- refer note: 18

(iii) Allowance for uncollected accounts receivable and advances. Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for estimated irrevocable amounts. Individual trade receivables are written off when management deems them not to be collectible. Impairment is made on the expected credit losses, which are the present value of the cash shortfall over the expected life of the financial assets.

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the company and that are believed to be reasonable under the circumstances.

2.19Government grants:

Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the company will comply with all attached conditions.

Government grants relating to income are deferred and recognised in the profit or loss over the period necessary to match them with the costs that they are intended to compensate and presented within other income.

Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred income and are credited to profit or loss on a straight-line basis over the expected lives of the related assets and presented within other income

Export incentives comprise of Duty draw back and MEIS (Merchandise Exports Incentive scheme) scrips. Export entitlements from government authorities are recognised in the statement of profit and loss as income or as a reduction from "Cost of materials consumed", when there is reasonable assurance that the entity will comply with the conditions attaching to them and the grants will be received

2.20 Rounding of Amounts:

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III of the Companies Act, 2013 unless otherwise stated.

34 The Company doesn''t have any transactions or relationship with struck off companies.

35 The Company has not advanced or loaned or invested any funds (either from borrowed funds or share premium or any other sources or kind of funds) to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

36 The company has not received any funds from any persons or entities, including foreign entities ("Funding Parties"), 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 whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Parties or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

37 The company has not traded or invested in crypto currency or virtual currency during the financial year.

38 The company has complied with number of layers prescribed under clause (87) of section 2 of the act read with company rules, 2017.

39 There are no charges or satisfaction of charges yet to be registered with ROC beyond the statutory period.

40 The company has not applied for any scheme of arrangements in terms of section 230 to 237 of the companies act.

49 Financial risk management objectives and policies

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support Company''s operations. The Company''s principal financial assets include inventory, trade and other receivables, cash and cash equivalents and refundable deposits that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.

a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as commodity risk. Financial instruments affected by market risk include loans and borrowings and refundable deposits. The sensitivity analysis in the following sections relate to the position as at March 31,2023 and March 31, 2022. The sensitivity analyses have been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest rates of the debt. The analysis excludes the impact of movements in market variables on: the carrying values of gratuity and other post retirement obligations; provisions.

51 Subsequent Events

There are no significant events that occurred after the balance sheet date.

52 Prior year comparatives

The figures of the previous year have been regrouped/reclassified, where necessary, to conform with the current year''s classification.

The accompanying notes are an integral part of the standalone financial statements.

As per our report of even date attached

for P C N & Associates for and on behalf of the Board of Directors of

Chartered Accountants Vivimed Labs Limited

ICAI Firm Registration Number: 016016S CIN: L02411KA1988PLC009465

Sd/- Sd/- Sd/-

K Gopala Krishna Santosh Varalwar Manohar Rao Varalwar

Partner Managing Director Whole-Time Director

Membership No.: 203605 DIN: 00054763 DIN: 00059815

UDIN: 23203605BGRTYB3187 Sd/- Sd/-

Ramakanta Tripathy Yugandhar Kopparthi

Place: Hyderabad CFO Company Secretary

Date: 30-05-2023 M. No: ACS19315

---

Mar 31, 2018

1 GENERAL INFORMATION

Vivimed Labs Limited (''the Company'') is a Public Limited Company incorporated in India, having its registered office at Bidar, India. The Company is primarily engaged in the Business of Active Pharmaceuticals Ingredients, CDMO Finished Dosage Formulation Specialty chemicals and Retail Branded Formulation manufacturing. The Company is listed in the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

2 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

2.1 Statement of Compliance

The financial statements have been prepared in accordance of Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules 2015 notified under Section 133 of Companies Act, 2013 (the ''Act'') and other relevant provisions of the Act.

The Company''s financial statements up to and for the year ended March 31, 2017 were prepared in accordance with the Companies (Accounting Standards) Rules 2006, notified under Section 133 of Companies Act, 2013 (the ''Act'') and other relevant provisions of the Act.

As these are the first financial statements prepared in accordance with Indian Accounting Standards (Ind AS), Ind AS 101, First-time Adoption of Indian Accounting Standards has been applied. An explanation of how the transition to Ind AS has affected the previously reported financial position, financial performance of the Company is provided in Note 42.

The financial statements were authorised for issue by the Company''s Board of Directors on May 30, 2018.

Details of the accounting policies are included in Note 3.

2.2 Basis of measurement

These financial statements have been prepared on the historical cost convention and on an accrual basis, except for the following material items in the statement of financial position:

- certain financial assets and liabilities are measured at fair value;

- employee defined benefit assets/(liability) are recognised as the net total of the fair value of plan assets, plus actuarial losses, less actuarial gains and the present value of the defined benefit obligation;

- long-term borrowings are measured at amortised cost using the effective interest rate method.

2.3 Functional currency

The financial statements are presented in Indian rupees millions, which is the functional currency of the Company. Functional currency of an entity is the currency of the primary economic environment in which the entity operates.

All amounts are in Indian Rupee millions except share data, unless otherwise stated.

2.4 Operating cycle

All the assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013.

Assets:

An asset is classified as current when it satisfies any of the following criteria:

a) it is expected to be realised in, or is intended for sale or consumption in, the Company''s normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) i t is expected to be realised within twelve months after the reporting date; or

d) i t is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

Liabilities:

A liability is classified as current when it satisfies any of the following criteria:

a) it is expected to be settled in the Company''s normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is due to be settled within twelve months after the reporting date; or

d) the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. Current assets/liabilities include the current portion of non-current assets/liabilities respectively. All other assets/liabilities are classified as non-current.

2.5 Critical accounting judgements and key sources of estimation uncertainty

i n the application of the Company''s accounting policies, which are described in note 3, the management of the Company are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the areas of estimation uncertainty and critical judgements that the management has made in the process of applying the Company''s accounting policies and that have the most significant effect on the amounts recognised in the financial statements:

Provision and contingent liability

On an ongoing basis, Company reviews pending cases, claims by third parties and other contingencies. For contingent losses that are considered probable, an estimated loss is recorded as an accrual in financial statements. Loss Contingencies that are considered possible are not provided for but disclosed as Contingent liabilities in the financial statements. Contingencies the likelihood of which is remote are not disclosed in the financial statements. Gain contingencies are not recognised until the contingency has been resolved and amounts are received or receivable.

Useful lives of depreciable assets

Management reviews the useful lives of depreciable assets at each reporting. As at March 31, 2018 management assessed that the useful lives represent the expected utility of the assets to the Company. Further, there is no significant change in the useful lives as compared to previous year.

2.6 Measurement of fair values

A number of the Company''s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

b) Terms / rights attached to the equity shares

Equity shares of the Company have a par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

A. Term loans:

Term loan from Banks consists of:

(i) Loan taken from SBI for USD 10.1 million repayable in 16 instalments from October 2017 to June 2021. This loan carries an interest rate of 5.84%.

(ii) Term loan from Allahabad Bank for Rs.500 million repayable in 16 instalments from May 2015 to February 2019.This loan carries an interest rate of 12.75%

Term loan from Financial Institutions consists of:

(i) ECB loan taken from IFC for USD 12.5 million repayable in 10 instalments from June 2015 to December 2019. This loan carries an interest rate of 6.02%.

(ii) Term loan from IFCI Limited for Rs.1,000 million repayable in 16 instalments from February 2015 to November 2018.This loan carries an interest rate of 13.65%

All the term loans are secured by a charge on the moveable and immovable assets of the Company, present and future, with a pari passu charge.

B. Sales tax deferment loan:

The Company has been granted an interest free sales tax deferment loan by the Government of Andhra Pradesh. As per the terms of this scheme, the Company has to repay the amount till FY 2018-19. This loan is unsecured.

C. FCCB’s from Financial Institutions:

The Company has obtained an FCCB from IFC in June 2011 for an amount of USD 7.5 million repayable in 5 years with a coupon rate of 0.55% per annum and an interest rate of 4.23% per annum compounded semiannually if the conversion option is not exercised. Subsequently, during the year, the due date for payment has been extended upto 30 September 2019. The entire portion was classified under "Borrowings", and there is no equity portion of the instrument.

D. Cash credits and packaging credit loans:

The Company has working capital facilities in the form of cash credits and packaging credit from State Bank of India, Allahabad Bank, Exim and PCFC amounting to a total limit of Rs.2,622 million with interest rates varying between 5.45% to 14.75%.

d) Terms and conditions of transactions with related parties:

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free.

e) Others:

The Company has given Corporate Guarantee for the credit facilities of ''1,076.60 million availed by the Subsidiaries.

3 SEGMENT INFORMATION

Ind AS 108 "Operating Segment" ("Ind AS 108") establishes standards for the way that public business enterprises report information about operating and geographical segments and related disclosures about products and services, geographic areas, and major customers. Based on the "management approach" as defined in Ind AS 108, Operating segments and geographical segments are to be reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM evaluates the Company''s performance and allocates resources on overall basis.

The Company has two reportable segments - Speciality Chemicals Business and Pharma Business.

4. GRATUITY

The Company provides its employees with benefits under a defined benefit plan, referred to as the "Gratuity Plan". The Gratuity Plan entitles an employee, who has rendered at least five years of continuous service, to receive 15 days salary for each year of completed service (service of six months and above is rounded off as one year) at the time of retirement/exit, restricted to a sum of Rs.2,000,000.

The following tables summarise the components of net benefit expense recognised in the statement of profit or loss and the amounts recognised in the balance sheet for the plan:

5. DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at March 31, 2018 has been made in the financial statements based on information received and available with the Company. Further in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006 (''The MSMED Act'') is not expected to be material. The Company has not received any claim for interest from any supplier.

6. LEASES

Where the Company is a lessee:

The Company has taken various office premises under operating leases. The leases typically run for a term ranging from eleven months to five years, with an option to renew the lease after the term completion. The escalation clause in these arrangement ranges from 5% to 10%.

7. EARNINGS PER SHARE

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders 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 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.

8. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support Company''s operations. The Company''s principal financial assets include inventory, trade and other receivables, cash and cash equivalents and refundable deposits that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as commodity risk. Financial instruments affected by market risk include loans and borrowings and refundable deposits. The sensitivity analysis in the following sections relate to the position as at March 31, 2018 and March 31, 2017. The sensitivity analyses have been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest rates of the debt.

The analysis excludes the impact of movements in market variables on: the carrying values of gratuity and other post retirement obligations; provisions.

The below assumption has been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2018 and March 31, 2017.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s short-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of variable rate borrowings. The Company does not enter into any interest rate swaps.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

b) 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. The credit risk arises principally from its operating activities (primarily trade receivables) and from its investing activities, including deposits with banks and financial institutions and other financial instruments.

Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom credit has been granted after obtaining necessary approvals for credit. The collection from the trade receivables are monitored on a continuous basis by the receivables team.

The Company establishes an allowance for credit loss that represents its estimate of expected losses in respect of trade and other receivables based on the past and the recent collection trend. The maximum exposure to credit risk as at reporting date

No single customer accounts for more than 10% of the revenue as of March 31, 2018, March 31, 2017 and April 1, 2016 and hence there is no significant concentration risk of revenue .

Credit risk on cash and cash equivalent is limited as the Company generally transacts with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

c) Liquidity risk

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank deposits and loans.

9. CAPITAL MANAGEMENT

The Company''s policy is to maintain a stable capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors capital on the basis of return on capital employed as well as the debt to total equity ratio.

For the purpose of debt to total equity ratio, debt considered is long-term and short-term borrowings. Total equity comprise of issued share capital and all other equity reserves.

10. EXPLANATION ON TRANSITION TO IND AS

As stated in Note 2.1, these are the first standalone financial statements prepared in accordance with Ind AS. For the year ended March 31, 2017, the Company had prepared its standalone financial statements in accordance with Companies (Accounting Standards) Rules, 2006 notified under Section 133 of the Act and other relevant provision of the Act (''Previous GAAP''). For the purpose of transition from Previous GAAP to Ind AS, the Company has followed the guidance prescribed under Ind AS 101-first time adoption of Indian Accounting Standards ("Ind AS-101"), with effect from April 1, 2016 (''transition date'').

The accounting policies set out in Note 3 have been applied in preparing these standalone financial statements for the year ended March 31, 2018 including the comparative information for the year ended March 31, 2017 and the opening standalone Ind AS balance sheet on the date of transition i.e. April 1, 2016.

I n preparing its standalone Ind AS balance sheet as at April 1, 2016 and in presenting the comparative information for the year ended March 31, 2017, the Company has adjusted amounts reported previously in standalone financial statement prepared in accordance with the Previous GAAP. This note explains how the transition from Previous GAAP to Ind AS has affected the Company''s financial position and financial performance.

A. Mandatory exceptions to retrospective application

The Company has applied the following exceptions to the retrospective application of Ind AS as mandatorily required under Ind AS 101 "First Time Adoption of Indian Accounting Standards":

1) Estimates: As per Ind AS 101, an entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with the Previous GAAP unless there is objective evidence that those estimates were in error.

As per Ind AS 101, where application of Ind AS requires an entity to make certain estimates that were not required under Previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition (for preparing opening Ind AS balance sheet) or at the end of the comparative period (for presenting comparative information as per Ind AS).

The Company''s estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the standalone financial statements that were not required under the Previous GAAP are listed below:

Impairment of financial assets based on the expected credit loss model.

Determination of the discounted value for financial instruments carried at amortised cost.

2) Classification and measurement of financial assets:

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable. Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.

B. Optional exemptions from retrospective application

Ind AS 101 "First time Adoption of Indian Accounting Standards" permits Companies adopting Ind AS for the first time to take certain exemptions from the full retrospective application of Ind AS during the transition. The Company has accordingly on transition to Ind AS availed the following key exemptions:

1) Property, plant and equipment: The Company has elected to treat carrying value under Previous GAAP as deemed cost for all items of its property, plant and equipment.

2) Intangible assets: The Company has elected to treat carrying value under Previous GAAP as deemed cost for all items of intangibles.

3) Business combination: Ind AS 101, provides the option to apply Ind AS 103, Business Combinations ("Ind AS 103") prospectively from the transition date or from a specific date prior to the transition date. The Company has elected to apply Ind AS 103 from transition date. Accordingly, business combinations occurring prior to the transition date have not been restated.

4) Investments in subsidiaries: On transition, Ind AS 101 allows an entity to treat previous GAAP carrying value as deemed cost for investments held in subsidiaries, associates and joint ventures. Accordingly, the Company has elected to treat previous GAAP carrying value as deemed cost for all its investments held in its subsidiaries.

A. Fair Valuation/ Amortised Cost of Financial Assets/ Liabilities and Other Assets

Fair Valuation/ Amortised Cost of Financial Assets/ Liabilities & Other Assets relates to amortised cost of Financial Assets using the effective interest rate method.

B. Guarantee income recognised on fair valuation of corporate guarantee

As required by Ind AS 109, the corporate guarantees provided by the Company are fair valued and income is recognised on amortised cost.

C. Expected credit loss on financial assets

Under Previous GAAP, Provision for doubtful receivables were created based on actual loss, however on transition to Ind AS, allowance of receivables has been done based on expected credit loss method as required by Ind AS 109.

D. Reversal of proposed dividend and taxes

Under Previous GAAP, dividend and the taxes on dividend are provided on accrual basis; where as under Ind AS, the same is provided on payment basis and hence the same has been reversed.

E. Deferred tax on land

In accordance with Ind AS 12, deferred tax on land is recognised for the difference between the book value and the indexed value of the land.

F. Actuarial gain/loss on post employement benefit obligations

Re-measurement gain/loss on defined benefit plans are re-classified from statement of profit and loss to OCI.

11 STANDARDS ISSUED BUT NOT EFFECTIVE

The standards issued, but not effective up to the date of issuance of the financial statements is disclosed below:

Ind AS 115 - Revenue from contracts with customers

In March 2018, the Ministry of Corporate Affairs has notified Ind AS 115, ''Revenue from Contracts with Customers'', which is effective for accounting periods beginning on or after 1 April 2018. This comprehensive new standard will supersede existing revenue recognition guidance, and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements.

Ind AS 115 is effective for annual reporting periods beginning on or after April 1, 2018. The Company intends to adopt Ind AS 115 effective April 1, 2018, using the modified retrospective method. The adoption of Ind AS 115 is not expected to have a significant impact on the Company''s recognition of revenues.

Other amendments to Indian Accounting Standards

The Ministry of Corporate Affairs (MCA), on 28 March 2018, issued certain amendments to Ind AS. The amendments relate to the following standards:

Ind AS 21, The Effects of Changes in Foreign Exchange Rates - The amendment lays down the principle regarding advance payment or receipt of consideration denominated or priced in foreign currency and recognition of nonmonetary prepayment asset or deferred income liability.

Ind AS 12, Income Taxes - The amendment explains that determining temporary differences and estimating probable future taxable profit against which deductible temporary differences are assessed for utilisation are two separate steps and the carrying amount of an asset is relevant only to determining temporary differences.

Ind AS 28, Investments in Associates and Joint Ventures

- The amendment clarifies when a venture capital, mutual fund, unit trust or similar entities elect to initially recognize the investments in associates and joint ventures.

Ind AS 112, Disclosure of Interests in Other Entities -

The amendment clarifies that disclosure requirements for interests in other entities also apply to interests that are classified as Held for sale or discontinued operations in accordance with Ind AS 105.

Ind AS 40, Investment Property - The amendment clarifies when a property should be transferred to / from investment property.

The amendments are effective 1 April 2018. The Company believes that the aforementioned amendments will not materially impact the financial position, performance or the cash flows of the Company.

12 PRIOR YEAR COMPARATIVES

The figures of the previous year have been regrouped/ reclassified, where necessary, to conform with the current year''s classification.

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Mar 31, 2016

1. SUB-DIVISION OF SHARES.

The Board of Directors of the company with the intention to encourage liquidity have proposed and resolved to Sub divide 1 (One) Equity Share of face value of Rs 10/- each into 5 (Five) Equity Shares of ''2/- each.

2. SALE OF UNIT AND LAND

a. Vivimed Labs Limited (VLL) which is engaged in the manufacture of various Specialty Chemicals, Dyes and API intermediates under its Chemical segment has entered into an Business Transfer Agreement with M/s CLARIANT INDIA LIMITED (CIL)to transfer one of its Manufacturing units located at Bonthapally, Medak District for a consideration of Rs 380 Crores. As per the agreement CIL would acquire as a slump sale on a going concern basis all the Assets located at Bonthapally along with the technical knowhow for the products manufactured.

b. During the financial year Fy 2015-16, the company has received advance amount of Rs 258.40 crores towards the slump sale consideration from CIL.

c. The ownership of the Assets at the Bonthapally Unit are being held by VLL as on 31st March 2016. The ownership over the assets at the unit will be transferred to CIL during the year Fy 2016-17 after receipt of the total consideration.

d. VLL has not provided for TAX liability on the said Slump sale during Fy 2015-16 as the transaction will be completed in Fy 2016-17.

3. amalgamation

a. Vivimed Labs Limited (''the Company'') has entered into a Scheme of Amalgamation with its wholly owned subsidiaries viz., Creative Health Care Private Limited, Klar Sehen Private Limited, Octtantis Nobel Labs Private Limited and Vivimed Labs (Alathur) Private Limited.

b. Description of the Scheme

i. The Scheme of Amalgamation under Section 391-394 of Companies Act, 1956 between Creative Health Care Private Limited, Klar Sehen Private Limited, Octtantis Nobel Labs Private Limited, Vivimed Labs (Alathur) Private Limited and Vivimed Labs Limited and their respective shareholders (hereinafter referred to as ''the Scheme'') provides for amalgamation of the aforementioned wholly owned subsidiaries with the Company. The Appointed Date for the amalgamation is April 1, 2014.

ii. The Scheme has been approved by Bombay High Court and is currently pending approval with Karnataka High Court. The amalgamation shall be effective on the date on which the High Court order approving the amalgamation is filed with the jurisdictional Registrar of Companies. Upon the Scheme becoming effective, the entire assets and properties, debts, liabilities, duties and obligations of the wholly owned subsidiaries shall be transferred to the Company retrospectively from the Appointed Date.

c. Consideration

No consideration shall be payable under the Scheme as the Scheme involves amalgamation of the wholly owned subsidiaries with the Company. The entire issued, subscribed and paid up share capital of the subsidiary companies held by the Company shall be cancelled on the effective date of the amalgamation and no new shares shall be issued in lieu of the amalgamation.

d. Accounting

In terms of the Scheme, the Company shall account for the amalgamation in accordance with "Purchase Method" referred in Accounting Standard-14 - Accounting for Amalgamation issued by the Institute of Chartered Accountants of India. Please note, the audited financial statements of the Company as at March 31, 2016 has not considered the effect of amalgamation as the same was not effective as on the date of approval of the financial statements by the Board of Directors.

4. CORPORATE SOCIAL RESPONSIBILITY:

(i) The Company has undertaken CSR activities like providing Water facilities to residents of Jinnarum Mandal located at Bonthapally Village.

5. Previous year''s numbers have been regrouped, rearranged, recanted, wherever necessary to confirm to Current Year Classification.

6. The numbers have been

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Mar 31, 2015

NOTE 1 : Equity Share Capital and Compulsory Convertible preference shares:

During the FY 2014-15 there was no issue of shares. However there was a reclassification of authorised preference capital worth Rs.200 million to authorised equity share capital.

NOTE 2 :

Warrant Application money of Rs.23.72 Million as represented in the financials as on 31-03-2014 was forfeited during the current FY 2014-15 and the aforesaid amount has been transferred to general reserve.

NOTE 3 : Employee Benefits (Gratuity & Earned Leave Encashment):

The details of the Company's post – retirement benefit plans for its employees including whole-time directors are given below which are certified by an Independent Actuary.

NOTE 4 : Treatment of Capital Work in Progress:

Capital Work in Progress includes Cost of Land under acquisition and Plant, Machinery &Equipments under installation. Management certification for the same is yet to be received.

NOTE 5 :

There are no dues outstanding to Micro and Small Enterprise as per MSME Development Act, 2006.

NOTE 6 :

Segment wise Information is furnished in Annexure -A.

NOTE 7 :

The advance given by the Company to Yantra Green Power Private Limited amounting to Rs.25 million pertaining to previous years is now treated as an investment in Yantra Green Power Pvt Ltd.

NOTE 8 :

The Company has fled a merger petition before Honourable High Court's of Karnataka & Maharashtra for amalgamating of its four 100% subsidiary Companies namely:

- Octtantis Nobel Labs Private Limited

- Klar Sehen Private Limited

- Creative Health Care Private Limited

- Vivimed Labs (Alathur) Private Limited

The scheme of amalgamation would be in accordance with the "Amalgamation by Purchase" referred in Accounting Standard-14.

As per the scheme of amalgamation the effective date of amalgamation is 1st April 2014. The Amalgamation petition is pending before Honourable High Court of Karnataka and High Court of Mumbai for the year ending 31st March 2015.

NOTE 9 :

Previous year's numbers have been regrouped, rearranged, recanted, wherever necessary to confirm to Current Year Classification..

NOTE 10 :

The numbers have been rounded of to the nearest millions of rupees.

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Mar 31, 2014

NOTE 1

Warrant Application money of H23.72 Million received during the earlier years represents monies received for which warrants were not issued by the Company for want of approval from stock exchanges.

NOTE 2 Employee benefits (Gratuity & Earned Leave Encashment)

The details of the Company''s post – retirement benefit plans for its employees including whole-time directors are given below which are certified by an Independent Actuary.

NOTE 3 Treatment of Capital Work in Progress

Capital Work in Progress includes Cost of Land under acquisition and Plant, Machinery &Equipments under installation.

NOTE 4 Detailed information regarding quantitative particulars under part II of schedule VI to the Companies Act, 1956

Quantitative information with regard to Licensed Capacity and & Installed Capacity per annum.

NOTE 5 Related Party Disclosures Accounting Standard 18

List of Related Parties and Relationships Country of Incorporation

(i) Holding Company

Vivimed Labs Limited India

(ii) Subsdiary Companies

1 Octanttis Nobel Labs Pvt Limited, India India

2 Creative Health Care Private Limited, India India

3 KlarSehen Private Limited, India India

4 FinosoPharma Private Liimited India

5 VivimedAlathur Private Limited India

6 Vivimed Holdings Limited, Hong Kong Hongkong

7 Vivimed Labs Europe Limited, UK United Kingdom

8 Vivimed Lab USA Inc. USA USA

9 Vivimed Labs Spain SL Spain

10 Union QuimicoFarmaceutica SAU, Spain Spain

11 Uquifa Mexico S A de C.V Mexico

12 Vivimed Labs Mauritius Limited Mauritius

13 Holiday International Limited United Kingdom

14 Vivimed Labs UK Limited United Kingdom

(iii) Enterprises in which key Management Personnel have significant influence

1 BBR Projects Pvt Ltd India

2 Kreative Hosts Atria Pvt. ltd. India

3 Yantra Green Power Pvt Ltd India

(iv) Key Management Personnel

Position

1 Santosh Varalwar CEO & Managing Director

2 Subhash Varalwar Whole Time Director

3 Dr. V Manohar Rao Whole Time Director

4 Sandeep Varalwar Whole Time Director

5 S Raghunandan Whole Time Director

NOTE 6 Contingent Liabilities (Rs.in Mn)

As at As at

Particulars 31-03-2014 31-03-2013

Letter of Credit Foreign LC''s 4.80 86.93

Inland LC''s 452.10 185.50

Axis Bank – SBLC 600.98 543.89

Bank Guarantee

State Bank of Hyderabad, 4.90 1.19

Balanagar Branch, Hyderabad.

NOTE 7 Contingent Liability on account of Corporate Guarantees

(Rs.in Mn)

As at As at

Name of the Subsidiary Details of the Lender 31-03-2014 31-03-2013

Vivimed Labs Europe Limited, UK. State Bank of India, London Branch 300.45 412.24

Vivimed Labs Spain S.L. EXIM Bank 1050.62 1218.55

Octantites Noble P Ltd YES Bank NIL 31.16

Vivimed Labs USA Inc., ICICI Bank, USA 106.49 103.06

Creative Health Care Pvt Ltd Axis Bank 100.35 Nil

NOTE 8

Amount of delayed outstanding dues to Micro and Small Enterprise as per MSME Development Act, 2006, could not be ascertained at the end of the Financial year.

NOTE 9 Commission paid to Independent Directors

During the financial year, H9,26,763/- was paid to Mr. P. V. Rathnam towards commission.

NOTE 10

Segment wise Information is furnished in Annexure -A.

NOTE 11

Closing Balances of Debtors / Creditors / Loans & Advances are subjected to confirmation from the parties.

NOTE 12

Previous year''s numbers have been regrouped, rearranged, recasted, wherever necessary to confirm to Current year Classification.

NOTE 13

The numbers have been rounded off to the nearest millions of rupees.

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Mar 31, 2013

BASIS OF PREPARATION:

The financial statements have been prepared to comply in all material respects with the accounting standards notified by Companies Accounting Standards Rules, 2006 and the relevant provisions of the Companies Act, 1956 (''the Act''). The financial statements have been prepared under historical cost convention on an accrual basis in accordance with accounting principles generally accepted in India. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous

USE OF ESTIMATES:

The preparation of financial statements in conformity with generally accepted accounting principles require the management to make estimates and assumptions that affect the reported amounts of Assets and Liabilities and disclosure of Contingent Liabilities at the date of the financial statements and the result of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. Significant estimates used by the management in the preparation of these financial statements include estimates of the economic useful life of Fixed Assets and provisions for bad and doubtful debts. Any revision to accounting estimates is recognized prospectively.

1. Preference Share Capital

During the Financial Year 2011-12, the company allotted 6,70,000 Compulsory Convertible Cumulative Preference shares of Rs.1,000/- each to M/s. NYLIM Jacob Balias India Fund III, LLC at par. During the financial year 2012-13, these preference shares were converted to 21,26,984 fully paid equity shares as per the terms of share subscription and shareholders agreement.

2. Warrant Application Money of Rs.237.21 Million received during the earlier years represents monies received for which Warrants were not issued by the company for want of approval from Stock Exchanges.

3. Employee Benefits (Gratuity & Earned Leave Encashment)

The details of the Company''s post - retirement benefit plans for its employees including whole-time directors are given below which are certified by an Independent Actuary.

a) Amounts recognized in the Balance Sheet as at 31-03-2013

b) Expenses recognized in Profit & Loss Account for the year ended 31-03-2013

4. Treatment of Capital Work in Progress

Capital Work in Progress includes Cost of Land under acquisition and Plant, Machinery & Equipments under installation.

5. Detailed information regarding quantitative particulars under part II of schedule VI to the Companies Act, 1956

i) Quantitative information with regard to Licensed Capacity and & Installed Capacity per annum.

6. Amount of delayed outstanding dues to Micro and Small Enterprise as per MSME Development Act, 2006, could not be ascertained at the end of the Financial Year.

7 Segment wise Information is furnished in Annexure -A.

8 Closing Balances of Debtors / Creditors / Loans & Advances are subject to confirmation from the parties.

9 Previous year''s numbers have been regrouped, rearranged, recasted, wherever necessary to conform to Current Year Classification.

10 The numbers have been rounded off to the nearest Million of rupees.

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Mar 31, 2012

1. Preference Share Capital:

During the Financial Year 2011-12, the company allotted 6,70,000 Compulsory Convertible Cumulative Preference shares of Rs. 1,000/- each to M/s. Nylim Jacob Ballas India Fund III, LLC at par.

2. Warrant Application Money of Rs. 23.72 mn received during the earlier years represents monies received for which Warrants were not issued by the company for want of approval from Stock Exchanges.

3. Long Term Borrowings:

(a) Term Loans From Banks:

1) EXIM Bank: Closing Balance as on 31-03-2012 - Rs. 345.07 mn.

Secured by Pari passu First charge on the Immovable and Movable Assets of the Company present and future including Equitable Mortgage of Factory Lands and Buildings and Second pari passu charge on the Current Assets.

2) State Bank of Hyderabad: Closing Balance as on 31-03-2012 - Rs. 100.24 mn.

Short Term Corporate Loan - Secured by Pari Passu First Charge on the Immovable and Movable Assets of the Company present and future including equitable mortgage of Factory Lands and Buildings and Second Pari Passu charge on Current Assets.

3) Axis Bank: Closing Balance as on 31-03-2012 - Rs. 308.66 mn.

Secured by Pari Passu First Charge on the Immovable and Movable Assets of the Company present and future including equitable mortgage of Factory Lands and Buildings and Second Pari Passu charge on Current Assets.

4) Term Loans against Hypothecation of Vehicles:

Closing Balance as on 31-03-2012 - Rs. 2.01 mn. Secured by Hypothecation of specific Vehicles of the Company.

5) Mortgage Loan from HDFC Bank :

Closing Balance as on 31-03-2012 - Rs. 1.09 mn. Secured by Mortgage of specific Immovable Property.

(b) Unsecured Loans from Banks:

Kotak Mahindra Bank : Closing Balance as on 31-03-2012 - Rs.200.00 mn.

(c) Unsecured Loan from Financial Institution:

International Finance Corporation Closing Balance as on 31-03-2012 - Rs.333.50 mn.

75 Nos. Optionally Convertible / Redeemable Foreign Currency Bonds (F.C.C.B.) at the face value of USD 100,000 each.

4. Treatment of Capital Work in Progress :

Capital Work in Progress includes Cost of Land under acquisition and Plant, Machinery & Equipments under installation.

5. Detailed information regarding quantitative particulars under part II of schedule VI to the Companies Act, 1956 :

i) Quantitative information with regard to

a) Licensed Capacity and Installed Capacity per annum

6. Contingent Liabilities : (Rs. in Rs.)

As at As at Particulars 31.03.2012 31.03.2011

Letter of Credit Foreign LC's 94.69 151.93

Inland LC's 55.89 32.48

SBLC – Axis Bank 51.15 -

Bank Guarantee State Bank of Hyderabad, Balanagar Branch, Hyderabad. 4.87 4.87

7. Amount of delayed outstanding dues to Micro and Small Enterprise as per MSME Development Act, 2006, could not be ascertained at the end of the Financial Year.

8. Segment wise Information is furnished in Annexure -A.

9. Closing Balances of Debtors / Creditors / Loans & Advances are subjected to confirmation from the parties.

10. Previous year's numbers have been regrouped, rearranged, recasted, wherever necessary to conform to Current Year Classification.

11. The numbers have been rounded off to the nearest millions of rupees.

Segment Information:

Company has identified two reporting segments viz., Speciality Chemicals and Pharmaceuticals. Segments have been identified and reported taking into account nature of products and services the differing risks, returns and the internal business reporting systems. Accounting policies adopted for segment reporting are in line with Accounting Policy of the company and are in accordance with the AS-17.

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Mar 31, 2011

1. warrant Application money of Rs. 88.64 million includes Rs. 65.29 million received towards warrant Application money for 1.49 million preferential warrants, the allotment of which is due in october, 2011. further Rs. 23.35 million received during the earlier years represents monies received for which warrants were not issued by the company for want of approval from stock exchanges.

The company during the year has allotted 1,99,112 shares @ Rs. 161 per share including premium of Rs. 151 per share for consideration other than cash.

2. Treatment of Capital Work in Progress

capital work in progress includes cost of land under acquisition and plant and equipment under installation.

3. Detailed information regarding quantitative particulars under part ii of schedule Vi to the companies Act, 1956:

i) Quantitative information with regard to

a) licensed capacity and

b) installed capacity per annum.

4. Related Party Disclosure

Particulars of related parties:

Name of the Related Party Nature of Relationship

Dr. V. manohar Rao chairman

subhash Varalwar Vice - chairman

santosh Varalwar ceo & managing Director

sandeep Varalwar executive Director

mr. s. Raghunandan Director (operations)

Dr. R.K. Dhar Director (technical)

creative health care private limited, mumbai. wholly owned indian subsidiary

Vivimed holdings limited, hong Kong wholly owned step Down foreign subsidiary

Vivimed labs usA inc. wholly owned foreign subsidiary

Vivimed labs europe limited, u.K. wholly owned foreign subsidiary

5. Contingent Liabilities ( Rs. in mn)

As at As at

31-03-2011 31-03-2010

foreign lc's 151.93 110.64

letter of credit Inland lcs 32.48 41.04

state Bank of hyderabad, Balanagar Bank Guarantee 4.87 4.66 Branch, hyderabad.

6. Contingent Liability on account of Corporate Guarantees:

(Rs. in mn)

As at As at

Name of the Subsidiary Details of the Lender 31-03-2011 31-03-2010

Vivimed holdings limited, state Bank of india, london Branch 571.61 760.50 hong Kong.

Vivimed labs europe state Bank of india, london Branch 124.51 63.51 limited, uK.

creative health care Axis Bank, hyderabad, india nil 65.00 private limited, india.

7. Amount of delayed outstanding dues to micro and small enterprise as per msme Development Act, 2006 could not be ascertained at the end of the financial Year.

8. segment wise information is furnished in Annexure.

9. closing Balances of Debtors / creditors / loans & Advances are subject to confirmation from the parties.

10. previous year's numbers have been regrouped, rearranged, recasted, wherever necessary to conform to current Year classification.

11. the numbers have been rounded off to the nearest million of rupees.

12. Segment Information is as follows

(i) our company has two reporting segments viz., speciality chemicals and pharmaceuticals. segments have been identified and reported taking into account nature of products and internal business reporting systems. Accounting policies adopted for segment reporting are in line with accounting policy of the company and are in accordance with the Accounting standard - 17.

(ii) the speciality chemicals segment manufactures a broad range of products active ingredients for home and personal care and personal hygiene products. pharmaceutical segment is engaged in contract manufacturing and Job works in addition to own patented products.

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Mar 31, 2010

1. Foreign Currency Convertible Bonds (FCCB) of nominal value of USD 12.5 million have been brought back and cancelled and FCCB of nominal value of USD 2.5 million have been converted into 5,63,918 Equity shares. Conversion was done at Rs. 41.73 per USD and Rs. 185 per Equity share.

Claim for allotment of about 2,00,000 additional Equity shares due to inadvertent error in the notice of conversion of Bondholder (FCCB) is not acknowledged as debt.

2. Warrant Application money of Rs. 49.56 million includes Rs. 23.35 million received in earlier years towards Warrant Application money for which Warrants were not issued for want of approval from stock Exchanges.

3. Treatment of Capital Work in Progress:

Capital Work in Progress includes cost of land under acquisition and plant & equipment under installation.

4. Detailed information regarding quantitative particulars under part ii of schedule Vi to the Companies Act,1956:

i) Quantitative information with regard to

a) Licensed Capacity and

b) Installed Capacity per annum

5. Related Party Disclosure:

Particulars of related parties and transactions with them are:

Name of the Related Party

Dr. V. manohar Rao, Chairman

Subhash Varalwar, Vice Chairman

Santosh Varalwar, managing Director & CEO

Sandeep Varalwar, Executive Director

Mr. S. Raghunandan, Director (Operations)

Dr. R.K. Dhar, Director (technical)

Creative Health Care Private Limited, Mumbai, (Wholly owned Indian Subsidiary)

Vivimed Holdings Limited, HongKong. (Wholly Owned Foreign Subsidiary)

Vivimed Labs USA Inc., (Wholly Owned Foreign Subsidiary)

Vivimed Labs Europe Limited, U.K., (Wholly Owned Foreign Step Down Subsidiary)

6. Contingent Liability on account of Corporate Guarantees

Rs. million

Name of the Details of the As at As at

Subsidiary Lender 31-03-2010 31-03-2009

Vivimed Holdings Private Limited, State Bank of India, 760.50 1139.40

HongKong. London Branch

VIvimed Labs Europe Limited, UK. State Bank of India, 63.51 249.66 London Branch

Creative health Care Private Axis Bank, Hyderabad, India 65.00 65.00 Limited, India.

7. Amount of delayed outstanding dues to micro and small Enterprise as per MAME Development Act 2006, could not be ascertained at the end of the financial year.

8. Employee benefits: Provision for Gratuity, Leave Encashment and Bonus is made as per AS-15, on the basis of Actuarial Valuation.

9. During the year confirmation of balances are not received from most of the Debtors / Creditors.

10. Previous year numbers have been regrouped, rearranged, recasted, wherever necessary to conform to Current Year Classification.

11. Numbers have been rounded off to the nearest million of rupees.