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Notes to Accounts of Arvind Remedies Ltd.

Mar 31, 2014

1.Rights attached to equity shares

The company has only one class of equity shares having a par value of Rs 10/- per share. Each holder of equity shares is entitled to one vote per share. The shareholders are entitled for dividend declared by the company which is proposed by the Board of directors and approved by the shareholders in the Annual General Meeting.

During the year ended 31st March 2014, the amount of dividend proposed per share to equity shareholders is Re 0.80 on share of Rs 10 each (31st March 2013: Re 1 on share of Rs 10 each).

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after the distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2.Conversion of Equity Warrants in equity shares

During the year, the company has allotted 7,310,500 equity shares and 12,585,500 equity shares of Rs 10 each at a premium of Rs 15 per share on 31st August 2013 and 30th September 2013 respectively against conversion of warrants issued on 24th January 2013.

(a) During the year the company has acquired 1,00,000 equity shares of Rs 10 each in Arvind Wellness Limited,37,380 common stock of US $ 10 each in Arvind Remedies Inc. and 17,200 common stock of US $ 10 each in Arvind Remedies USA LLC to make them subsidiaries of the company.

(b) The losses incurred by the US subsidiaries incorporated during the year, have exceeded their networth. However, considering the start up stage and this being the first year of their operation, no provision is made for the diminution in the value of such investments.

1. During the year the company has commenced commercial production of few products at the new unit at Kakkalur. The balance amount of Rs 6658.49 incurred up to 31st March 2014 has been included under Capital Expenditure on New Projects.

2. The company is entitled to tax credit on account of tax paid as Minimum Alternate Tax (MAT) in earlier years for set-off in future years. Out of such credit, the company has utilized MAT Credit of Rs 225 in the current year.

3. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs 513.55 (Previous Year Rs 3940.51).

4. Contingent liabilities

(a) Outstanding Bank Guarantees Rs. 120.23 (Previous year Rs.238.21)

(b) Claim of interest by some shareholders of Coronet Labs Private Limited towards delay in payment for acquisition of the balance shares from them which is not acknowledged by the company (amount unascertained)

5. Freehold land represents land allotted by Small Industries Development Corporation Ltd. (SIDCO) vide a Memorandum of Understanding (MOU) dated November 21, 1995.

The company is in the process of complying with the terms of the said MOU.

6. The Company has entered into Lease Arrangements for office and godown premises. These Lease Agreements are for a period varying from 11 months to 3 years, and/or cancelable at the option of either party by giving 1-3 months notice. Lease payments recognized in Statement of Profit and Loss is Rs. 58.15 (Previous year Rs.41.84).There are no amount payable in respect of non cancelable lease.


Mar 31, 2013

Preface

The financial statements, statement of cash flows and the notes to the financial statements are the primary responsibility of the management of Arvind Remedies Limited (the Company).

1. During the previous year the company has acquired 12,75,000 equity shares (representing 63.75% of the share capital) of Coronet Labs Private Limited (CLPL) to make it a subsidiary of the company. In respect of acquisition of the remaining shares of CLPL, the company is taking necessary steps to acquire the same.

2. During the year, the commencement of commercial production at its new unit at State Industrial Promotion Corporation of Tamil Nadu Limited (SIPCOT) at Irrangattukottai has been completed.

In respect of the new project to manufacture Betalactum products at Kakkalur, the company has incurred Rs 3688.96 till 31st March 2013 (Rs 1749.13), which has been included under Capital Expenditure on New Projects.

3. The tax payable under normal provisions of Income Tax Act,1961 being lower than the tax payable as Minimum Alternate Tax (MAT) in terms of Section 115JB, provision for taxation for the year has been made as MAT, a part of which will be available as tax credit for set-off in future.

The company is also entitled to tax credit on account of tax paid as MAT in earlier years for the set off in future years.

4. The company''s liability towards gratuity is provided based on the figures provided by LIC. In absence of the figures of the gratuity payable to employees retiring within one year being provided by LIC, the entire provision towards gratuity has been shown as Long term provision.

5. Estimated amount of contracts remaining to be executed on capital account and not provided for(net of advances) Rs. 3940.51 (Previous Year Rs. 1556.00).

6. Contingent liabilities

Outstanding Bank Guarantees Rs. 238.21 (Previous year Rs.157.31)

7. Freehold land represents land allotted by Small Industries Development Corporation Ltd. (SIDCO) vide a Memorandum of Understanding (MOU) dated November 21, 1995.

The company is in the process of complying with the terms of the said MOU.

8. The Company has entered into Lease Arrangements for office and godown premises. These Lease Agreements are fora period varying from 11 months to 6 years, and/or cancelable at the option of either party by giving 3 months to 6 months notice. Lease payments recognized in Statement of Profit and Loss is Rs. 41.84 (Previous year Rs.35.08).There are no amount payable in respect of non cancelable lease

9. Related Party Disclosures

(a) Key Managerial Personnel

Dr. B Arvind Shah Managing Director

Dr. Chandra Ravindran Whole Time Director

Mr. Ankur Agarwal Executive Director (w.e.f. 18.04.2012)

Mr. Raghuveer Executive Director (from 28.04.2012 to 03.12.2012)

(b) Relative of Key Managerial Personnel Mrs. Baby Rani

Mrs. Dipti Kumari Jain Mr. Anand A Shah

(c) Subsidiary Company Coronet Labs Private Limited

10. Dues to suppliers under the Micro, Small and Medium Enterprises Development Act,2006:

There were no dues outstanding to the suppliers registered under the Micro, Small and Medium Enterprises Development Act, 2006, to the extent identified from the available documents / information. No interest in terms of such Act has either been paid or provided during the year.

11. Segment Information

The company deals in one product only - pharmaceutical products. As such it does not have reportable business segment. For the purpose of geographical segments, total sale is divided into India and other countries. The following table shows the distribution of the company''s sales by geographical markets:

12. Previous year''s figures

Previous year''s figures, which are given in bracket, have been regrouped or rearranged wherever necessary.


Mar 31, 2012

Basis of preparation of financial statements

The financial statements of the Company are prepared under the historical cost convention on accrual basis in accordance with Generally Accepted Accounting Principles in India and comply with the Accounting Standards notified by The Companies (Accounting Standards) Rules,2006 and the relevant provisions of The Companies Act, 1956 (the Act).

The accounting policies, in all material aspects, have been consistently applied by the company and are consistent with those used in the previous year, except for changes in the presentation and disclosures of the financial statements as described in Note 55 below.

1 During the year the company has acquired 12,75,000 equity shares (representing 63.75% of the share capital) of Coronet Labs Private Limited (CLPL) at Rs. 20 per share although the breakup value of the shares as per audited financial statements of CLPL as at 31st March 2011 was lower. However, the company has made investment in such shares for strategic reasons considering the long term prospects. Besides, based on valuation carried out by a firm of Chartered Accountants the value arrived is higher than the cost of acquisition. CLPL has become the subsidiary of the company.

2 The company has commenced commercial production of tablets, capsules, ointment and liquid at its new unit at State Industrial Promotion Corporation of Tamil Nadu Limited (SIPCOT) at Irrangattukottai during the year and the related capital expenditure has been capitalized. For the manufacture of Softgel and Injectibles, the commercial production is to start in the first quarter of the financial year 2012-13.

3 During the year the company has undertaken a new project to manufacture Betalactum products at Kakkalur and expenditure incurred on such project aggregating to Rs. 1749.13 has been included under Capital Expenditure on New Project.

4 In absence of taxable income, provision for taxation for the year has been made as Minimum Alternate Tax (MAT) in terms of Section 115JB of the Income Tax Act, 1961, which will be available as tax credit for set off in future years as per Section 115JAA of the said Act. The company is also entitled to tax credit on account of tax paid as MAT in earlier years for the set off in future years.

5 The company's liability towards gratuity is provided based on the figures provided by LIC. In absence of the figures of the gratuity payable to employees retiring within one year being provided by LIC, the entire provision towards gratuity has been shown as Long term provision.

6 Estimated amount of contracts remaining to be executed on capital account and not provided for Rs 1556.00 (net of advances) (Previous Year Rs 16152.82).

7 Contingent liabilities

Outstanding Bank Guarantees Rs. 157.31 (Previous year Rs.54.93)

8 Freehold land represents land allotted by Small Industries Development Corporation Ltd. (SIDCO) vide a Memorandum of Understanding (MOU) dated November 21,1995.

The company is in the process of complying with the terms of the said MOU.

9 The Company has entered into Lease Arrangements for office and godown premises. These Lease Agreements are for a period varying from 11 months to 6 years, and/or cancelable at the option of either party by giving 3 months to 6 months notice. Lease payments recognized in Statement of Profit and Loss is Rs. 35.08 (Previous year - Rs.25.42).There are no amount payable in respect of non cancelable lease

10 Previous year's figures

During the year ended 31st March 2012, Revised Schedule VI notified under the Companies Act, 1956 became applicable to the company for preparation & presentation of its financial statements. The adoption of Revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on the presentation and disclosures made in the financial statements. The company has also reclassified the previous year's figures in accordance with the requirements applicable in the current year.

During the year, the company has commenced commercial production at Irangattukottai Unit and accordingly, previous year's figures are not comparable with the current year's figures


Mar 31, 2010

Preface

The financial statements, statement of cash flows and the notes to the financial statements are the primary responsibility of the management of Arvind Remedies Limited (the Company).

1. (a) Capital Expenditure on New Projects of Rs. 369850.01 consists of unit being set up at State Industries Promotion Corporation of Tamilnadu Limited Industrial Estate at Irungatukottai in Tamilnadu for manufacture of Injectibles, Softgel, Tablets and Capsules.

(b) Exceptional item denotes surplus on sale of assets pertaining to Haridwar Unit.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs 1872660 (net of advances) (Previous Year Rs nil)

3. Contingent liabilities

Outstanding Bank Guarantees Rs.9397.39 (Previous year Rs. 13777.39)

4. Freehold land represents land allotted by Small Industries Development Corporation Ltd. (SIDCO) vide a Memorandum of Understanding (MOU) dated November 21, 1995. The Company is in the process of complying with the terms of the said MOU.

5.(a) The Company has entered into Lease Arrangements for office and godown premises. These Lease Agreements were for a period varying from 11 months to 6 years, and/or cancelable at the option of either party by giving 3 months to 6 months notice. Lease payments recognized in Profit and Loss account is Rs 1849.68 (Previous year -- Rs.1884.87)

6.(b) Non cancelable lease dues payable in respect of office premises are as follows:

2009-10 2008-09

Due within one year - - 108.00

Due later than one year and not later than five years - - 108.00

Due later than five years - - -

7.(a) Deferred Tax

Deferred tax liability of Rs. 2019.19 (Previous year Rs. 13267.44) has been charged to the Profit and Loss account.

8. Dues to suppliers under the Micro, Small and Medium Enterprises Development Act, 2006:

There were no dues outstanding to the suppliers registered under the Micro, Small and Medium Enterprises Development Act, 2006, to the extent identified from the available documents / information.

9. Previous years figures, which are given in bracket, have been regrouped /rearranged wherever necessary to conform to current year figures

 
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