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Notes to Accounts of Ambalal Sarabhai Enterprises Ltd.

Mar 31, 2015

1. Equity Shares:

The Company has one class of shares referred to as equity shares having a par value of Rs. 10 each. Each shareholder is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

2. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 and hence disclosures as required under Section 22 of The Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 regarding:

(a) Amount due and outstanding to suppliers as at the end of accounting year;

(b) Interest paid during the year;

(c) Interest payable at the end of the accounting year; and

(d) Interest accrued and unpaid at the end of the accounting year have not been given.

The Company is making efforts to get the confirmations from the suppliers as regard to their status under the said Act.

3. Effective from April 1, 2014, the Company has revised useful lives of tangible fixed assets as specified in Schedule II to the Companies Act-2013. Accordingly, the carrying value of fixed assets as on that date, net of residual value, has been depreciated over the remaining useful lives. Further, an amount of Rs. 41.67 Lakh representing the carrying value of assets, whose remaining useful life is Nil as at April 1, 2014, has been charged to Statement of Profit & Loss. As a result of such change the charge for the year ended March 31, 2015 is highter by Rs. 41.67 Lakh for the Assets held on April 1,2014.

4. Sundry Debtors, Sundry Creditors and Loans and Advances include certain accounts which are subject to confirmation/reconciliation and consequential adjustments if any , the effect of which is not ascertainable.

( v ) Guarantee given by company

on behalf of other Companies 1,083.49 1,225.65

5(b) Hon'ble Supreme Court has allowed Company's Civil Appeals against the judgment and order of the Division Bench of Gujarat High Court vide which Division Bench by its order had set aside the order of the Single Judge sanctioning Scheme of Arrangement relating to Company's erstwhile Swastik Division and Electronics Division While allowing the appeals, Hon'ble Supreme Court has directed that Company shall execute a guarantee favouring the Central Bank of India and Bank of Baroda in respect of their dues in the suit filed by them which is pending before Debts Recovery Tribunal. The Company has accordingly given the guarantee.

With regard to the Guarantee given by the Company favouring Central Bank of India and Bank of Baroda , the Company has received on 31.12.2010, a notice invoking the guarantee dated 16.12.2003 on behalf of Bank of Baroda the notice is received on behalf of International Asset Reconstruction Company Pvt. Ltd. The Company has not accepted the demand made of Rs. 37,770.51 Lakh and based on legal advice, the Company has taken necessary action required in the matter at various legal forum.

6. Segment Note:

Segment Information for the year ended 31st March 2015.

Information About Primary and Secondary Business Segments. The Company is in the business of manufacturing, trading and dealing in the Pharmaceuticals only operating in India In view of above the Company has only one reportable business Segments i. e. Pharmaceuticals

7. Related Party Disclosures:

As per the Accounting Standard on " Related Party disclosures ( AS 18 ) " the related parties of the Company are as follow :

1 List of Related Parties Relationship

(A) Name of Related Party Description of relationship

Synbiotics Limited Subsidiary Company

Haryana Containers Limited Subsidiary Company Asence Inc USA Subsidiary Company

Asence Pharma Pvt. Ltd Subsidiary of Subsidiary Company

Sarabhai M Chemicals Ltd Subsidiary Company Systronics ( I ) L td Subsidiary Company

Suvik Hitek Pvt. Ltd Subsidiary Company

Senaru Formulations Pvt. Ltd Subsidiary of Subsidiary Company

(B) Vovantis Lab. P vt. Ltd Joint Venture Company

(C) Key Management Personnel:

Name of the related party Nature of relationship Mr. Kartikeya V. Sarabhai Chairman

Mr. A.H. Parekh Whole time Director

Ms Chaula Shastri Whole time Director

Note:

Related party relationship is as identified by the Company and relied upon by the Auditors.

8. Previous year's figures have been regrouped to made then comparable with those of the current year.


Mar 31, 2014

1 Deferred Tax

In terms of the provisions of the Accounting Standard -22 "Accounting for Taxes on Income", there is a net deferred tax asset on account of accumulated business losses and unabsorbed depreciation.

In compliance with provisions of Accounting Standard and based on General Prudence, the Company has not recognized the deferred tax asset while preparing the accounts for the year under review.

2 Sundry Debtors, Sundry Creditors and Loans and Advances include certain accounts which are subject to confirmation/reconciliation and consequential adjustments if any, the effect of which is not ascertainable.

3. No provision is considered necessary for following contingent liabilities:

Year Ended YearEnded March 31,2014 March 31,2013 Rs. Lakh Rs. Lakh

(i) Disputed demand in respect of Customs and Excise

(a) Customs and Excise 133.82 133.82

(b) Sales Tax 18.90 18.90

(c) Income Tax 2,624.93 2,624.93

(d) Employees'' State Insurance Corporation 10.23 -

(e) Provident Fund 10.56 -

(ii) Claims not acknowledged as debt 39,282.61 39,296.28

(iii) Claims by Government for payment in to DPEA 39.25 39.25

(iv) Guarantee given by banks on behalf of the Company 265.29 262.29

(v) Guarantee given by company on behalf of other Companies 1,225.65 1,371.65

3b Hon''ble Supreme Court has allowed Company''s Civil Appeals against the judgment and order of the Division Bench of Gujarat High Court vide which Division Bench by its order had set aside the orderof the Single Judge sanctioning Scheme of Arrangement relating to Company''s erstwhile Swastik Division and Electronics Division While allowing the appeals, Hon''ble Supreme Court has directed that Company shall execute a guarantee favouring the Central Bankof India and Bankof

Baroda in respect of their dues in the suit filed by them which is pending before Debts Recovery Tribunal. The Company has accordingly given the guarantee.

With regard to the Guarantee given by the Company favouring Central Bank of India and Bank of Baroda , the Company has received on 31.12.2010, a notice invoking the guarantee dated 16.12.2003 on behalf of Bank of Baroda the notice is received on behalf of International Asset Reconstruction Company Pvt. Ltd. The Company has not accepted the demand made of Rs. 37770.51 lakh and based on legal advice, the Company has taken necessary action required in the matter at various legal forum.

4. Segment Note:

Segment Information for the year ended 31st March 2014.

Information About Primary and Secondary Business Segments. The Company is in the business of manufacturing, trading and dealing in the Pharmaceuticals only operating in India In view of above the Company has only one reportable business Segments i.e. Pharmaceuticals

5. Related Party Disclosures:

As per the Accounting Standard on "Related Party Disclosures (AS 18)" notified by Companies (Accounting Standards) Rules, 2006, the related parties of the Company are as follow:

1 List of Related Parties Relationship (A) Name of Related Party Description of relationship Synbiotics Limited Subsidiary Company

Haryana Containers Limited Subsidiary Company AsencelncUSA Subsidiary Company

Asence Pharma Pvt. Ltd Subsidiary of Subsidiary Company

Sarabhai M Chemicals Ltd Subsidiary Company

Systronics (I) Ltd Subsidiary Company

Suvik Hitek Pvt. Ltd Subsidiary Company

Senaru Formulations Pvt.Ltd Subsidiary of Subsidiary Company

(B) Vovantis Lab. Pvt. Ltd Joint Venture Company

(C) Key Management Personnel:

Name of the related party Nature of relationship

Mr.Kartikeya V. Sarabhai Chairman

Mr.A.H.Parekh Whole time Director

Ms Chaula Shastri Whole time Director

Note:

Related party relationship is as identified by the Company and relied upon by the Auditors.

6. Impairment of Fixed Assets

In accordance with the Accounting Standard (AS - 28) on "Impairment of Assets", the Company has reassesed its Fixed Assets and is of the view that no further Impairment / reversal is considered to be necessary in view of its expected realisable value.

7 Previous year''s figures have been regrouped to make them comparable with those of the current year.


Mar 31, 2013

1 Deferred Tax

In terms of the provisions of the Accounting Standard -22 "Accounting for Taxes on -Income" notified by Companies (Accounting Standards ) Rules, 2006, there is a net deferred tax asset on account of accumulated business losses and unabsorbed depreciation.

In compliance with provisions of Accounting Standard and based on General Prudence, the Company has not recognized the deferred tax asset while preparing the accounts for the year under review.

2 Sundry Debtors, Sundry Creditors and Loans and Advances include certain accounts which are subject to confirmation/reconciliation and consequential adjustments if any, the effect of which is not ascertainable.

3. No provision is considered necessary for following contingentliabilities:

Year Ended Year Ended March 31,2013 March 31,2012 Rs.Lakh Rs.Lakh

(i) Disputed demand of Customs and Excise

(a) Customs and Excise 133.62 62.98

(b) Sales Tax 18.90 18.90

(c) Income Tax 2,624.93 3,514.42

(ii) Claims not acknowledged as debt 39,296.28 39,331.88

(iii) Claims by Government for payment into DPEA 39.25 39.25

(iv) Guarantee given by banks on behalf of the Company 262.29 292.59

(v) Guarantee given by company on behalf of other Companies 1,446.65 1104.69

43,822.12 44364.71



3b Hon''ble Supreme Court has allowed Company''s Civil Appeals against the judgment and order of the Division Bench of Gujarat High Court vide which Division Bench by its order had set aside the order of the Single Judge sanctioning Scheme of Arrangement relating to Company''s erstwhile Swastik Division and Electronics Division While allowing the appeals, Hon''ble Supreme Court has directed that Company shall execute a guarantee favouring the Central Bank of India and Bank of

Baroda in respect of their dues in the suit filed by them which is pending before Debts Recovery Tribunal. The Company has accordingly given the guarantee.

With regard to the. Guarantee given by the Company favouring Central Bank of India and Bank of Baroda , the Company has received on 31.12.2010, a notice invoking the guarantee dated 16.12.2003 on behalf of Bank of Baroda the notice is received on behalf of International Asset Reconstruction Company Pvt. Ltd. The Company has not accepted the demand made of Rs. 37770.51 lakh and based on legal advice, the Company has taken necessary action required in the matter at various legal forum.


Mar 31, 2012

(a) Rights, Preferences and Restrictions attached to Shares

Equity Shares:

The Company has on« class of shades referred to as equity shares having a par valid of R.. 10 each. Each shareholder is entitled to one vote psi share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders *n the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

a The Company has not received any intimation from suppliers regarding their status- under the Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 and hence disclosures required under Section 22 of The Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 regarding:

(a) Amount due and outstanding to suppliers not the end of accounting year;

(b) Interest paid during the year;

(c) Interest payable at the end of the accounting year; and

(d) Interest accrued and unpaid at the end of form accounting year have not been given.

The Company is making efforts to get confirmations from the suppliers as regard to ten status under the said Act.

1 Deferred Tax

In terms of the provisions of the Accounting ' Standard -22 "Accounting for Taxes on Income" notified by Companies (Accounting Standards ) Rules, 2006, there is a net deferred tax asset on . account of accumulated business losses and unabsorbed depreciation.

In compliance with provisions of Accounting Standard and based on General Prudence, the Company has not recognized the deferred tax asset while preparing the accounts for the year under review.

2 Sundry Debtors, Sundry Creditors and Loans and ' Advances include certain accounts which are

subject to confirmation/reconciliation and consequential adjustments if any, the effect of which is not ascertainable.

3. No provision is considered necessary for following

contingent liabilities:

Year Ended Year Ended March 31,2012 March 31,2011

Rs. Lakh Rs. Lakh

(i) Disputed demand of Customs and Excise

(a) Customs and Excise 62.98 116.05

(b) Sales Tax 18.90 18.90

(c) Income Tax 3514.42 173.17

(ii) Claims not acknowledged

as debt 39331.88 39315.24

(iii) Claims by Government

for payment into DPEA 39.25 39.25

(iv) Guarantee given by banks

on behalf of the Company 292.59 293.30

(v) Guarantee given by company on Behalf of other Companies 1104.69 420.73

44364.71 40376.64

3b Hon'ble Supreme Court has allowed Company's Civil Appeals against the judgment and order of the Division Bench of Gujarat High Court vide which Division Bench by its order had set aside the order of the Single Judge sanctioning Scheme of ' Arrangement relating to Company's erstwhile Swastik Division and Electronics Division While allowing the appeals, Hon'ble Supreme Court has directed that Company shall execute a guarantee favouring the Central Bank of India and Bank of Baroda in respect of their dues in the suit filed by them ' which Ts pending before Debts Recovery Tribunal. The Company has accordingly given the guarantee. BIFR passed an order forwinding up of Swastik Surfactants Limited (SSL) since the Revival Scheme had failed. However, SSL appealed this order in AAIFR, which has remanded the case to BIFR with appropriate directives.

In all the earlier Revival Schemes, SSL had acknowledged liabilities of banks as we!! as liabilities of banks as well as liabilities towards ASE. In view of this, ASE had approached BIFR and AAIFR to be impleaded in the matter, which has been allowed by AAlFR.The Company has based on legai advice taken appropriate action at BIFR stage and the matter is being pursued by the company.

With regard to the Guarantee given by the Company favouring Central Bank of. India and Bank of Baroda, the Company has received on 31.12.2010, a notice from Kotak Mahindra Bank Limited, Mumbai invoking the guarantee dated 16.12.2003 on behalf of Bank of Baroda in its capacity as trustee of IARC-BOB-01/07 trust on behalf of International Asset Reconstruction Company Pvt. Ltd. The Company has not accepted the demand made of Rs. 37770.51 lakh and based on legal advice, the Company has taken necessary action required in the matter.

Notes:

1. The Company has dls&oaed business segments as the primary segment. Segments have boon Identified taking Into account the nature of the products, differential risks and returns, the Organizational structure and Internal reporting system. The Company's operations predominantly relate to manufacturing of Drugs, Formulation, Electronics Instrument and Services.

2. Types of Products' and Services In each business segment: Pharmaceuticals : Drugs, Formulations Electronics : Electronics Instruments and Services

3. Inter-segment Rovonuos are recognised at sales price

4. Related Party Disclosures:

As per the Accounting Standard on "Related Party Disclosures (AS 18)" notified by Companies (Accounting Standards) Rules, 2006, the related parties of the Company are as follow:

1 List of Related Parties Relationship

(A) Nams of Related Party Diserlptlon of relationship

Synblotlci Limited Subsidiary Company

5 The financial statements for the year ended March 31,2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.


Mar 31, 2010

1. Figures for the previous year have been re-grouped wherever necessary and are shown below those of current year or in brackets in the Notes.

2. 941,975 Ordinary Shares of Rs. 10 each fully paid of ORG Informatics Limited and 35,000 Ordinary Shares of Rs.1,000/- each Rs. 100 paid up of Synbiotics Limited have been pledged for financial assistance and 3,00,000 shares of Rs. 10 each fully paid of ORG Informatics Ltd. are pledged with a bankon behalf of another company.

3. (a) Transfer of Rs.30.50 lakh (Rs. 38.93 lakh) from Capital Reserve to Profit and Loss Account represents the difference between depreciation charged on "revalued amount" of assets and depreciation calculated on "historical cost" of assets;

(b) Further a sum of Rs. 4.02 Lakh (Rs. 752.00 Lakh) has been transferred to general reserve from capital reserve on account balance of Revaluation Surplus in respect of assets sold / otherwise disposed off during the year.

4. Honble Supreme Court has allowed Companys Civil Appeals against the judgment and order of the Division Bench of Gujarat High Court vide which Division Bench by its order had set aside the order of the Single Judge sanctioning Scheme of Arrangement relating to Companys erstwhile Swastik Division and Electronics Division. While allowing the appeals, Honble Supreme Court has directed that Company shall execute a guarantee favouring the Central Bank of India and Bank of Baroda in respect of their dues in the suit filed by them which is pending before the Debts Recovery Tribunal. The Company has accordingly given the guarantee. BIFR passed an order for winding up of Swastik Surfactants Limited (SSL) since the Revival Scheme had failed. However, SSL appealed this order in AAIFR, which has remanded the case to BIFR with appropriate directives.

In all the earlier Revival Schemes, SSL had acknowledged liabilities of banks as well as liabilities towards ASE. In view of this, ASE had approached BIFR and AAIFR to be imp leaded in the matter, which has been allowed by AAIFR.

With regard to the Guarantee given by the Company favouring Central Bank of India and Bank of Baroda, the Company has received on 31.12.2010, a notice from Kotak Mahindra Bank Limited, Mumbai, invoking the guarantee dated 16.12.2003 on behalf of Bank of Baroda in its capacity as trustee of IARC-BOB-01/07 trust on behalf of International Asset Reconstruction Company Pvt Ltd. The Company has not accepted the demand made of Rs. 3770.51 Lakh and based on legal advise, the Company is taking necessary action required in the matter.

5. Uncalled liability in respect of party paid shares held as investments Rs. 90 Lakh (Previous Year Rs 90 Lakh).

6. No provision is considered necessary for following contingent liabilities:

2009-10 2008-09 Rs. Lakh Rs. Lakh

(i) Customs and Excise 128.03 2.44 (ii) Income Tax 173.17 173.17 (iii) Sales Tax 21.96 9.20 (iv) Claims not acknowledged as debt 39830.68 1554.65 (v) Claims by Government for payment into DPEA 716.09 716.09 (vi) Guarantee given by banks on behalf of the Company 301.64 304.54

7. Contracts on Capital Account remaining to be executed amount to Rs.33.53 Lakh (Rs. 10.35 lakh).

8. Sales and Services comprise of Sales Rs. 5633.17 lakh (Rs. 6092.93 lakh) and recovery of share in cost of various utilities, expenses, etc. Rs. 278.53 lakh (Rs. 367.47 lakh).

9. Miscellaneous expenses include fees to Auditors for other services of Rs. 6.05 lakh (Rs. 4.44 lakh) and reimbursement of out of pocket expenses of Rs.1.30 lakh (Rs. 1.38 lakh).

10. Deferred Tax

In terms of the provisions of the Accounting Standard - 22 "Accounting for Taxes on Income" notified by Companies (Accounting Standards) Rules, 2006, there is a net deferred tax asset on account of accumulated business losses and unabsorbed depreciation.

In compliance with provisions of Accounting Standard and based on General Prudence, the Company has not recognized the deferred tax asset while preparing the accounts of the year under review.

11. Sundry Debtors, Sundry Creditors and Loans and Advances include certain accounts which are subject to confirmation/reconciliation and consequential adjustments if any, the effect of which is not ascertainable.

12. Small and Small and Medium Enterprises Dues:

The Company has not received any intimation from "Suppliers" regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 (the Act) and hence disclosures, regarding:

(a) Amount due and outstanding to suppliers as at the end of accounting year.

(b) Interest paid during the year

(c) Interest payable at the end of the accounting year

(d) Interest accrued and unpaid at the end of the accounting year, has not been provided.

The Company is making efforts to get the confirmation from the suppliers as regards their status under the Act.

 
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