Notes to Accounts of Bafna Pharmaceuticals Ltd.

Mar 31, 2019

14.1 Secured by First Charge on entire Current Assets and fixed Assets acquired out of Term Loan from SBI.

14.2 Second pari passu Charge on the entire Fixed assets with Development Credit Bank, DBS Bank and Bank of Ceylon. except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

14.3 Personal guarantee of Promoter Directors- Mr. Bafna Mahaveer chand - Chairman and Managing Director and Mr.Paras Bafna- Whole Time Director.

14.4 State Bank of India has declared the account as NPA on 28.01.2017 and Hence the same is classified under Long Term.

DBS BANK LIMITED

14.5 DBS has converted it into WCTL.

14.6 First Pari Passu Charge on the entire current assets along with other MBA Banks.

14.7 Second pari passu Charge on the entire Fixed assets except Fixed Assets acquired out of Term Loan Sanctioned.

SECURITIES OFFERED

INDUSTRIAL DEVELOPMENT BANK OF INDIA

17.1 First Pari Passu Charge on the entire current assets along with other MBA Banks

17.2 Second pari passu Charge on the entire Fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

17.3 Personal guarantee of Promoter Directors- Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

DEVELOPMENT CREDIT BANK

17.4 First Pari Passu Charge on the entire current assets along with other MBA Banks

17.5 Second pari passu Charge on the entire Fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India

BANK OF CEYLON

17.6 First Pari Passu Charge on the entire current assets along with other MBA Banks

17.7 Second pari passu Charge on the entire Fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

18 TRADE PAYABLE

DUES TO MICRO AND SMALL ENTERPRISES (as per intimation received from vendor)

a. Principal and interest amount remaining unpaid.

b. Interest due thereon remaining unpaid.

c. Interest paid by the Company in terms of Sections 16 of the Micro,Small and Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day.

d. Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the period) but without adding interest specified under the Micro, Small and Medium Enterprise Act, 2006.

e. Interest accrued and remaining unpaid.

f. Interest remaining due and payable even in succeeding years, until such date when the interest dues as above are actually paid to this mall enterprises.

a. There no amounts due for payment to the Investor Education and Protection fund under section 125 of companies act 125 of the Companies Act 2013 as at 31st March 2019 (2018 : Nil).

30 RELATED PARTY DISCLOSURES

As per Indian Accounting Standard 24, the disclosures of transactions with the related Parties are given below:

List of Related Parties where control exists and related Parties with whom transactions have taken place and relationship

30.1 Name of the related Party

a) Mr. BAFNA MAHAVEER CHAND

b) Mr. PARAS BAFNA

b) Mrs. CHETNA BAFNA

c) Mr. NAVEEN BAFNA

30.2 Directors'' Interest

a) BAFNA LIFESTYLES REMEDIES LIMITED c ) BHANSILAL & CO (HUF)

30.3 The Directors of the Subsdiary Company Ms. Hemalatha and Ms. Sabitha are the employee of the Company

b) Balances under Trade Payables, debtors, loans and advances some of them remain unconfirmed.

c) Advances given to suppliers for supply of materials and others remain unconfirmed. It was explained that supply will be made in the ensuing year.

d) Loans and advances include outstanding balances of deposits with Corporate bodies is given below

e) The Company had granted Loan to Subsidiary M/s. BAFNA LIFESTYLES REMEDIES LIMITED (BLRL) during the previous years to the extent of Rs. 1222.93 Lakhs. Subsequent to the discontinuing operations by the subsdiary M/s. BLRL sold its properties and old machines and repaid Rs. 297.95 Lakhs to M/s. BAFNA PHARMACEUTICALS LIMITED during the Current Financial year 2018-2019. The balance of Rs. 924 .98 Lakhs could not be paid by the Subsdiary. Hence, the same had been written off during the current financial Year.

f) The Fixed deposit of sum of Rs. 257.37 (Rs. in Lakhs) (Previous Year Rs. 245.00 (Rs. In Lakhs) ) lying with BOC, IDBI, ICICI are under lien against Bank Gaurantee Margin, LC Margin Money.

g) In view of the Stay of the implementation of the approved Resolution Plan by the NCLAT, New Delhi. No Restatements of Assets and Liabilities (As per Approved Resolution Plan) in the financial statements is considered during the financial year 2018-19. The process of restructuring of fair values of assets and liabilities detailed in the Resolution Plan and restatement thereof in the accounts is being deferred to be carried out in the ensuing Financial Year.

Corporate Information, Significant Accounting Policies & Notes to the Financial Statements A. Corporate information

BAFNA PHARMACEUTICALS LIMITED (''BPL'' or ''the Company'') is a public limited company domiciled and incorporated in India having its registered office at No.299, ThambuChetty street, Chennai - 600 001.

The Company''s shares are listed and traded on Stock exchanges in India. the Company is engaged in the business of Manufacturing of Pharmaceuticals.

B. Significant Accounting Policies

1 Basis of preparation

a. The Ministry of Corporate affairs (''the MCA''), Government of India in exercise of the powers conferred by Section 133 read with Section 469 of the Companies act, 2013 (the ''act'') and sub-section 1 of Section 210a of the Companies act, 1956 (''the erstwhile act'') in consultation with national advisory Committee on accounting standards vide G.S.R. 111(E) dated 15th February, 2015 notified rules called Companies (Indian Accounting Standard) Rules, 2015 effective April 1, 2015. The MCA wide notification GSR 111(E) dated March 30, 2016 issued certain amendments to IND AS vide Companies (Indian accounting Standards) amendment rules 2016.

The MCA vide notification GSR 404(E) dated April 6, 2016 introduced amendments to Schedule III of the Act, requiring companies to prepare the financial statements in compliance with Companies (Indian Accounting Standards) rules, 2015.

The Company which was falling under the Mandatory adoption (Phase II) for listed companies with net worth less than Rs 500 crores (based on audited standalone statements) vide its Board resolution dated

10.11.2017 resolved to adopt Ind AS for the first time in preparation of financial statements for the year ended march 31, 2018, and had adopted the same.

The other amendments to Ind AS notified by the Companies (Indian Accounting Standards) Amendment Rules, 2018 and Companies (Indian Accounting Standards) Second Amendment Rules, 2018 that apply from 1 April 2018 and that are unrelated to the adoption of Ind AS 115 are primarily clarifications. The Company has prepared its financial statements in compliance with Companies (Indian Accounting Standards) rules and the above amendments as well. The Ministry of Corporate Affairs amended Schedule III on 11 October 2018 notifying certain additional presentation and disclosure requirements such as presentation of trade payables (current/non-current both) on face of the balance sheet as (a) total outstanding dues of micro and small enterprises; and (b) total outstanding dues other than micro and small enterprises

The comparative figures in the Balance Sheet as at March 31, 2019 and that of the previous period and Statement of Profit and Loss and Statement of Cash flow for the same periods have been presented.

b. The financial statements of the Company have been prepared and presented in accordance with INDAS principles, however items of current assets and Liabilities have not been measured at fair values on account of reasons stated in (3) below under Basis of Measurement Management evaluates all the applicable accounting standards on going concern basis.

Major items of Current Assets namely, Receivables outstanding for over one year and Advances to suppliers which are long outstanding and carried in the booksare yet to be tested for recovery or impairment as per principles underlined in IND AS 36 and hence, not restated at fair values in the accounts in accordance with IND AS 133.

With regard to Current liabilities, the balances of Sundry creditors and others are subject to confirmation, and these also have-not been restated at fair values in accordance with IND AS 133.

c. All assets and liabilities have been classified as current or non-current as per the company''s normal operating cycle. Based on the nature of products and services and the time between the acquisition of assets for processing and their realisation in cash and cash equivalent, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification ofassets and liabilities except for Receivables.

2 Statement of Compliance with ind AS

The Financial Statements comprising Balance Sheet for three periods, Statement of Profit and Loss, Statement of Changes in equity, Statement of Cash flow together with notes for two periods have been prepared in accordance with Ind AS as notified [subject to Clause 1 (b) above] above duly approved by the Board of Directors at its meeting held on 27^th May 2019

The Company adopted Ind AS for the first time in preparation of financial statements for the year ended march 31, 2018.

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Mar 31, 2016

Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the final statement.

u. Cash and cash equivalents

Cash and cash equivalents for the purpose of cash flow statement comprises cash at bank and in hand and short-term investments with an original maturity of three months or less.

v. Research and Development Expenditure

Capital Expenditure is included in Fixed Assets & Capital Work in Progress and depreciation is provided at the respective applicable rates.

Revenue expenditure is charged off in the year in which they are incurred and are included with the respective nature of account heads in the profit and loss account statement.

STATE BANK OF INDIA

1 Secured by First Charge on the entire current assets & fixed assets acquired out of Term from SBI.

2 Second Pari passu charges on the entire fixed assets with Development Credit Bank, DBS Bank and Bank of Ceylon except Fixed Assets acquired out of Term Loan sanctioned by State Bank of India.

3 Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

ADITYA BIRLA FINANCE LTD

4 Secured by the Personal Property of the Promoter Shri Bafna Mahaveer Chand situated No 299, Thambu Chetty Street, Chennai 600001

5 Secured by the Pledge of 8,45,000 Shares held in Strides Health Care Limited by Bafna Pharmaceuticals Limited.

6 Secured by the Factory premises of M/s BAFNA LIFESTYLES REMEDIES LTD - Subsidiary of Bafna Pharmaceuticals Limited.

SECURITIES OFFERED STATE BANK OF INDIA

7 First Charge on the entire current assets on pari passu basis with all the MBA Banks

8 Second pari passu Charge on the entire fixed assets with IDBI, Development Credit Bank, Development Bank of Singapore and Bank of Ceylon, except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

9 Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

INDUSTRIAL DEVELOPMENT BANK OF INDIA

10. First Pari Passu Charge on the entire current assets along with other MBA Banks

11. Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

12. Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

DEVELOPMENT BANK OF SINGAPORE

13. First Pari Passu Charge on the entire current assets along with other MBA Banks

14. Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

DEVELOPMENT CREDIT BANK

15. First Pari Passu Charge on the entire current assets along with other MBA Banks

16. Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India

BANK OF CEYLON

17. First Pari Passu Charge on the entire current assets along with other MBA Banks

18. Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

19 RELATED PARTY DISCLOSURES

As per Accounting Standard 18, the disclosures of transactions with the related Parties are given below:

List of Related Parties where control exists and related Parties with whom transactions have taken place and relationship. The necessary approvals were obtained in the respective Board meetings of the Company. The terms of contracts or arrangements or transactions were at arm''s length basis.

20. Name of the related Party

a) Mr. BAFNA MAHAVEER CHAND

b) Mr. PARAS BAFNA

c) Mrs. CHETNA BAFNA

d) Mr. NAVEEN BAFNA

21. Directors interest

a) BAFNA LIFESTYLES REMEDIES LIMITED

b) BHANSILAL & CO (HUF)

22. CENVAT

Cenvat Credit is reckoned for the material, Capital Goods, stores and consumables purchased and entered into the factory Premises.

23 GENERAL

a) Tax deducted at Source from the payment to contractors, professional charges and salaries have been generally delayed in depositing. As on 31^st March 2016 Rs.4, 144.09(''000)

b) Balances under Trade Payables, debtors, loans and advances are subject to confirmation.

c) Advances given to suppliers for supply of materials and others remain unconfirmed. It was explained that supply will be made in the ensuing year

d) Loans and advances include outstanding balances of deposits with Corporate bodies is given below

The Fixed deposit of sum of Rs. 25368.36 (''000) (Previous Year Rs. 22888.58 (''000)) lying with State bank of India are under lien against Bank Guarantee Margin, LC Margin Money and Loan against Deposit

e) Margin Money and loan against Deposit.

The New Schedule II of the Companies Act, 2013 become applicable during the year 2014-15 to the Company and hence previous figures have been reclassified, regrouped and re-arranged wherever necessary.

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Mar 31, 2015

1. Corporate Information

1. Bafna Pharmaceuticals Limited (The Company) is a public limited Company domiciled in India and incorporated under the provisions of the Companies Act 1956.Its Shares are listed in Bombay Stock Exchange and National Stock Exchange in India. The Company is engaged in the manufacture of drugs and medicines . The Company has also got an excellent Research and Development Facility for life saving drugs. The Company caters to both domestic and international markets.

2. The financial statements have been prepared in accordance with generally accepted accounting in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the Accounting Standards as notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial Statements have been prepared under the historical cost convention on an accrual basis except in case of Land (freehold and leasehold).

3. SECURITIES OFFERED

STATE BANK OF INDIA

(a)Secured by First Charge on the entire current assets & fixed assets acquired out of Term from SBI.

(b)Second Pari passu charges on the entire fixed assets with Development Credit Bank, DBS Bank and Bank of Ceylon except Fixed Assets acquired out of Term Loan sanctioned by State Bank of India.

(c)Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

4. SHRIRAM HOUSING FINANCE LTD

Secured by Mortgage of Personal Property situated No 299, Thambu Chetty Street, Chennai 600001 of the CMD BAFNA MAHAVEER CHAND.

5. SHRIRAM CITY UNIION FINANCE LTD

Secured by Mortgage of Personal Property situated No 299, Thambu Chetty Street, Chennai 600001 of the CMD BAFNA MAHAVEER CHAND and pledge of 1076666 shares of M/s Strides Health Care Pvt Limited.

6. SECURITIES OFFERED STATE BANK OF INDIA

(a)First Charge on the entire current assets on pari passu basis with all the MBA Banks

(b)Second pari passu Charge on the entire fixed assets with IDBI, Development Credit Bank, Development Bank of Singapore and Bank of Ceylon, except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

(c)Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

7. INDUSTRIAL DEVELOPMENT BANK OF INDIA

(a)First Pari Passu Charge on the entire current assets along with other MBA Banks

(b)Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

(c) Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

8. DEVELOPMENT BANK OF SINGAPORE

(a) First Pari Passu Charge on the entire current assets along with other MBA Banks

(b) Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

9. DEVELOPMENT CREDIT BANK

(a) First Pari Passu Charge on the entire current assets along with other MBA Banks

(b) Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India

10. BANK OF CEYLON

(a) First Pari Passu Charge on the entire current assets along with other MBA Banks

(b) Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

11. FOREIGN CURRENCY TRANSACTIONS

a) Income of foreign currency Transaction is recorded at the rate of exchange prevailing on the date, when the relevant transaction has taken place. Realized gains or losses on the exchange are recognized in the Profit and loss account.

12. RELATED PARTY DISCLOSURES

As per Accounting Standard 18, the disclosures of transactions with the related Parties are given below:

List of Related Parties where control exists and related Parties with whom transactions have taken place and relationship. The necessary approvals were obtained in the respective Board meetings of the Company. The terms of contracts or arrangements or transactions were at arm's length basis.

13. Name of the related Party

a) Mr. BAFNA MAHAVEER CHAND

b) Mr. PARAS BAFNA

c) Mrs. CHETNA BAFNA

d) Mr. NAVEEN BAFNA

14. Directors interest

a) BAFNA LIFESTYLES REMEDIES LIMITED

b) BHANSILAL & CO (HUF)

13. CONTINGENT LIABILITIES NOT PROVIDED FOR

(Rs. in '000)

Particulars As at 31st As at 31st March 2015 March 2014

a) In respect of Letter of Credit and Bank Guarantee 28,624.70 95,414.32

b) Bonds have been executed in favour of Customs Authorities for 87,000.00 87,000.00 the purchase of materials and capital goods without payment of duty

15. CENVAT

Cenvat Credit is reckoned for the material, Capital Goods, stores and consumables purchased and entered into the factory Premises.

16. GENERAL

a) Tax deducted at Source from the payment to contractors, professional charges and salaries have been deposited in time except in few cases.

b) Balances under Trade Payables, debtors, loans and advances are subject to confirmation.

c) Advances given to suppliers for supply of materials and others remain unconfirmed. It was explained that supply will be made in the ensuing year

e) Margin Money and loan against Deposit.

The New Schedule II of the Companies Act, 2013 become applicable during the year 2014-15 to the Company and hence previous figures have been reclassified, regrouped and re-arranged wherever necessary.

17. During the year, Pursuant to the notification of the PART C of schedule II to the Companies Act, 2013 with effect from April 2014, the Company has revised the estimated useful life of tits assets with those specified in schedule II. Pursuant to the transition provision prescribed in Schedule II to the Companies Act,2013, the Company has fully depreciated the carrying value of assets, net of residual value, where the remaining useful life of the asset was determined to be NIL as on 1st August 2014 and has adjusted an amount of Rs. 32,550.95('000) against retained earnings.

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Mar 31, 2014

Corporate Information

Bafna Pharmaceuticals Limited (The Company) is a public limited Company domiciled in India and incorporated under the provisions of the Companies Act 1956. Its Shares are listed in Bombay Stock Exchange and National Stock Exchange in India. The Company is engaged in the manufacture of drugs and medicines and selling a reputed brand namely RARICAP. The Company has also got an excellent Research and Development Facility for life saving drugs. The Company caters to both domestic and international markets.

Basis of Preparation of Financial Statements

The financial statement are prepared under historical cost conversion, except for certain fixed assets which are revalued, in accordance with the generally accepted accounting principles in Indian and the provisions of the Companies Act, 1956.

1. SHARE CAPITAL

1.1 9,00,000 Shares out of the issued, subscribed and paid up share capital were allotted as a Preferential allotment on 13-01-2012 at a premium of Rs. 40/- per share.

1.2 The Company allotted 25,00,000 share warrants @ Rs. 50/- Per Share on 13.01.2012, the same was cancelled for Non- receipt of balance money.

1.3 15,00,000 shares out the issued, subscribed and paid up share capital were allotted as a preferential allotment on 17.03.2011 at a premium of Rs. 37.30 per share.

1.4 The company has allotted 23,18,000 share warrants @ Rs. 47.30 per share warrant on 17.03.2011, out of the 23,18,000 warrants allotted on 17.03.2011, 1,25,000 was allotted on 14.08.2012 and 1,50,000 Shares was allotted on 15.09.2012 pursuant to conversion of warrants, balance warrants were cancelled for Non-receipt of Balance Money.

1.5 54,29,014 Shares out of the issued, subscribed and paid up share capital were allotted as a bonus shares by capitalization of General Reserves.

1.6 1,00,000 shares out of the issued, subscribed and paid-up share capital were issued as a fully paid up shares pursuant to an agreement without payment being received in cash.

2 EQUITY SHARE WARRANT

2.1 Out of the 2500000 share warrants issued on 13.01.2012, the Company has cancelled 25,00,000 shares warrants for non receipt of balance money and the same has been transferred to Capital Reserve under the head Share forfeiture account.

3 OTHER LONGTERM BORROWING

SECURITIES OFFERED

3.1.1 First Charge on the entire current assets on pari passu basis with Export Import Bank of India.

3.1.2 First Charge on the entire fixed assets on Pari Passu basis with Export Import Bank of India except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India

3.1.3 Second pari passu Charge on the entire fixed assets with Development Credit Bank, Development Bank of Singapore and Bank of Ceylon except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

3.1.4 Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

EXPORT- IMPORT BANK OF INDIA

3.1.5 Charge on Brand RARICAP

3.1.6 First Charge on the entire fixed assets on Pari Passu basis with Export Import Bank of India except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

3.1.6 Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna - Whole Time Director.

SUNDARAM BNP PARIBAS HOME FINANCE LTD

3.1.7 Personal property of the CMD - Mr. Bafna Mahaveer Chand

4 SHORT TERM BORROWINGS

SECURITIES OFFERED

STATE BANK OF INDIA

4.1.1 First Charge on the entire current assets on pari passu basis with all the MBA Banks

4.1.2 First Charge on the entire fixed assets on Pari Passu basis with Export Import Bank of India except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

4.1.3 Second pari passu Charge on the entire fixed assets with IDBI, Development Credit Bank, Development Bank of Singapore and Bank of Ceylon, except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

4.1.4 Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

INDUSTRIAL DEVELOPMENT BANK OF INDIA

4.1.5 First Pari Passu Charge on the entire current assets along with other MBA Banks

4.1.6 Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

4.1.7 Personal guarantee of Promoter Directors - Mr. Bafna Mahaveer Chand - Chairman and Managing Director and Mr. Paras Bafna- Whole Time Director.

DEVELOPMENT BANK OF SINGAPORE

4.1.8 First Pari Passu Charge on the entire current assets along with other MBA Banks

4.1.9 Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

DEVELOPMENT CREDIT BANK

4.1.10 First Pari Passu Charge on the entire current assets along with other MBA Banks

4.1.11 Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

BANK OF CEYLON

4.1.12 First Pari Passu Charge on the entire current assets along with other MBA Banks

4.1.12 Second pari passu Charge on the entire fixed assets except Fixed Assets acquired out of Term Loan Sanctioned By State Bank of India.

5 FOREIGN CURRENCY TRANSACTIONS

a) Income of foreign currency Transaction is recorded at the rate of exchange prevailing on the date, when the relevant transaction has taken place. Realized gains or losses on the exchange are recognized in the Profit and loss account.

6 RELATED PARTY DISCLOSURES

As per Accounting Standard 18, the disclosures of transactions with the related Parties are given below: List of Related Parties where control exists and related Parties with whom transactions have taken place and relationship

7 Name of the related Party

a) Mr. BAFNA MAHAVEER CHAND

b) Mr. PARAS BAFNA

c) Mrs. CHETNA BAFNA

d) Mr. NAVEEN BAFNA

8 Directors interest

a) BAFNA LIFESTYLES REMEDIES LIMITED

b) BAFNA LIFELINE PRIVATE LIMITED

c) BHANSILAL & CO (HUF)

9 CONTINGENT LIABILITIES NOT PROVIDED FOR (Rs. in ''000)

Particulars As at 31st As at 31st March 2014 March 2013

a) In respect of Letter of Credit and Bank Guarantee 95,414.32 53,726.08

b) Bonds have been executed in favour of Customs Authorities for the purchase of materials and capital goods without payment of duty 87,000.00 87,000.00

10 CENVAT

Cenvat Credit is reckoned for the material, Capital Goods, stores and consumables purchased and entered into the factory Premises.

11 GENERAL

a) Tax deducted at Source from the payment to contractors, professional charges and salaries have been deposited in time except in few cases.

b) Balances under Trade Payables, debtors, loans and advances are subject to confirmation.

c) Advances given to suppliers for supply of materials and others remain unconfirmed. It was explained that supply will be made in the ensuing year

d) The Fixed deposit of sum of Rs. 23388.23 (''000) (Previous Year Rs. 19620.53 (''000)) lying with State bank of India are under lien against Bank Guarantee Margin, LC Margin Money and Loan against Deposit

e) The Revised schedule VI of the companies Act 1956 become applicable during the year 2011-12 to the Company and hence Previous Years figures have been reclassified, regrouped and re-arranged wherever necessary.

12 The Ministry of corporate affairs, Government of India, vide General Circular No : 2 and 3 dated 8th February 2011 and 21st February 2011 respectively, has granted a general exemption from Compliance of Section 212 of the Companies Act 1956, subject to fulfillment of conditions stipulated in the circular. The company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the consolidated Financial Statements.

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Mar 31, 2013

1. Corporate Information

Bafna Pharmaceuticals Limited (The Company) is a public limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its Shares are listed in BSE and NSE in India. The Company is engaged in the manufacture of drugs and medicines and selling a reputed brand namely RARICAP. The Company has also got an excellent Research and Development Facility for life saving drugs. The Company caters to both domestic and international markets.

2. Basis of Preparation of Financial Statements

The financial statement are prepared under historical cost conversion, except for certain fixed assets which are revalued, in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

3.1 FOREIGN CURRENCY TRANSACTIONS

a) Income of foreign currency Transaction is recorded at the rate of exchange prevailing on the date, when the relevant transaction has taken place. Realized gains or losses on the exchange are recognized in the Profit and loss account.

4 RELATED PARTY DISCLOSURES

As per Accounting Standard 18, the disclosures of transactions with the related Parties are given below: List of Related Parties where control exists and related Parties with whom transactions have taken place and relationship

5.1 Name of the related Party

a) Mr. BAFNA MAHAVEER CHAND

b) Mr. PARAS BAFNA

c) Mrs. CHETNA BAFNA

d) Mr. NAVEEN BAFNA

5.2 Directors interest

a) BAFNA LIFESTYLES REMEDIES LIMITED

b) BAFNA LIFELINE PRIVATE LIMITED

c) BHANSILAL & CO (HUF)

7 CENVAT

Cenvat Credit is reckoned for the material, Capital Goods, stores and consumables purchased and entered into the factory Premises.

8 GENERAL

a) Tax deducted at Source from the payment to contractors, professional charges and salaries have been deposited in time.

b) Balances under Trade Payables, debtors, loans and advances are subject to confirmation.

c) Advances given to suppliers for supply of materials and others remain unconfirmed. It was explained that supply will be made in the ensuing year

d) Loans and advances include outstanding balances of deposits with Corporate bodies is given below

e) The Fixed deposit of sum of Rs. 19,620.53 (''000) (Previous Year Rs. 21,288.55 (''000)) lying with State bank of India are under lien against Bank Guarantee Margin, LC Margin Money and Loan against Deposit

f) The Revised schedule VI of the Companies Act, 1956 become applicable during the year 2011-12 to the Company and hence previous Years figures have been reclassified, regrouped and re-arranged wherever necessary.

9 The Ministry of corporate affairs, Government of India, vide General Circular No: 2 and 3 dated 8th February 2011 and 21st February 2011 respectively, has granted a general exemption from Compliance of Section 212 of the Companies Act 1956, subject to fulfillment of conditions stipulated in the circular. The company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the consolidated Financial Statements.

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Mar 31, 2012

1. Corporate Information

Bafna Pharmaceuticals Limited (The Company) is a public limited Company domiciled in India and incorporated under the provisions of the Companies Act 1956. Its Shares are listed in Bombay Stock Exchange in India. The Company is engaged in the manufacture of drugs and medicines and selling a reputed brand namely RARICAP. The Company has also got an excellent Research and Development Facility for life saving drugs. The Company caters to both domestic and international markets.

2. Basis of Preparation of Financial Statements

The financial statement are prepared under historical cost conversion, except for certain fixed assets which are revalued, in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

3.1 9,00,000 Shares out of the issued, subscribed and paid up share capital were allotted as a Preferential allotment on 13.01.2012 at a premium of Rs. 40/- per share. Pending listing approval.

3.2 15,00,000 shares out of the issued, subscribed and paid up share capital were allotted as Preferential allotment on 17.03.2011 at a premium of Rs.37.30/- per share.

3.3 54,29,014 Shares out of the issued, subscribed and paid up share capital were allotted as a bonus shares by capitalisation of General Reserves.

3.4 1,00,000 shares out of the issued, subscribed and paid-up share capital were issued as a fully paid up shares pursuant to an agreement without payment being received in cash.

4.1 The Company has raised money by issuing Equity share warrant to the extent of 25,00,000 share warrants @ Rs.50/- per Warrant out of which 25% upfront money has been received during the year.

5.1.1 First Charge on the entire current assets as paripassu basis with Industrial Development Bank of India and Development Bank of Singapore.

5.1.2 First Charge on the entire Fixed assets created/ proposed to be acquired out of FCRNB and Term Loan.

5.1.3 Personally guaranteed by Directors Mr. Bafna Mahaveer Chand and Mr. Paras Bafna INDUSTRIAL DEVELOPMENT BANK OF INDIA

5.1.4 First Paripassu Charge on the entire current assets

5.1.5 Personally guaranteed by Directors Mr. Bafna Mahaveer Chand and Mr. Paras Bafna EXPORT- IMPORT BANK OF INDIA

5.1.6 Exclusive charge on the Brand RARICAP

5.1.7 First paripassu charge on the entire movable and immovable fixed assets both present and future DEVELOPMENT BANK OF SINGAPORE

5.1.8 First Paripassu Charge on the entire current assets along with other Working Capital Bankers in MBA

5.1.9 Second Paripassu charge on the entire fixed assets of the company.

6.1.1 First Charge on the entire current assets as paripassu basis with Industrial Development Bank of India and Development Bank of Singapore.

6.1.2 First Charge on the entire Fixed assets created/ proposed to be acquired out of Term Loan.

6.1.3 Personally guaranteed by Directors Mr. Bafna Mahaveer Chand and Mr. Paras Bafna INDUSTRIAL DEVELOPMENT BANK OF INDIA

6.1.4 First Paripassu Charge on the entire current assets

6.1.5 Personally guaranteed by Directors Mr. Bafna Mahaveer Chand and Mr. Paras Bafna

6.1.6 Second charge on the Brand RARICAP

6.1.7 First paripassu charge on the entire movable and immovable fixed assets both present and future DEVELOPMENT BANK OF SINGAPORE

6.1.8 First Paripassu Charge on the entire current assets along with other Working Capital Bankers in MBA

6.1.9 Second Paripassu charge on the entire fixed assets of the company.

7.1 FOREIGN CURRENCY TRANSACTIONS

a) Income of foreign currency Transaction is recorded at the rate of exchange prevailing on the date, when the relevant transaction has taken place. Realized gains or losses on the exchange are recognized in the Profit and loss account.

Rs. in 'Laks'

8 CONTINGENT LIABILITIES NOT PROVIDED FOR As at 31st As at 31st March 2012 March 2011

a) In respect of Letter of Credit and Bank Guarantee 60,080.02 62,212.56

b) Bonds have been executed in favour of Customs Authorities 77,000.00 57,000.00

for the purchase of materials and capital goods without payment of duty

9 RELATED PARTY DISCLOSURES

As per Accounting Standard 18, the disclosures of transactions with the related Parties are given below:

List of Related Parties where control exists and related Parties with whom transactions have taken place and relationship

9.1 Name of the related Party

a) Mr. BAFNA MAHAVEER CHAND

b) Mr. PARAS BAFNA

c) Mrs. CHETNA BAFNA

d) Mr. NAVEEN BAFNA

9.2 Directors' Interest

a) BAFNA LIFESTYLES REMEDIES LIMITED

b) BAFNA LIFELINE PRIVATE LIMITED c ) BHANSILAL & CO (HUF)

10 CENVAT

CENVAT Credit is reckoned for the material, Capital Goods, stores and consumables purchased and entered into the factory Premises

11 GENERAL

a) Tax deducted at Source from the payment to contractors, professional charges and salaries have been deposited in time.

b) Balances under Trade Payables, debtors, loans and advances are subject to confirmation.

c) Advances given to suppliers for supply of materials and others remain unconfirmed. It was explained that supply will be made in the ensuing year

d) Loans and advances include outstanding balances of deposits with Corporate bodies is given below

e) The Fixed deposit of sum of Rs. 21,288.55 ( Rs.33,024.31) lying with State bank of India are under lien against Bank Guarantee Margin, LC Margin Money and Loan against Deposit

f) The Company has raised Rs.76,250 ('000) through preferential allotment and deployed Rs.412.50 ('000')for Expansion activities of the Marketing Division of RARICAP in various

12 The Ministry of Corporate Affairs, Government of India, vide General Circular No: 2 and 3 dated 8th February 2011 and 21st February 2011 respectively, has granted a general exemption from Compliance of Section 212 of the Companies Act 1956, subject to fulfilment of conditions stipulated in the circular. The company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the consolidated Financial Statements.

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Mar 31, 2011

1. CONTINGENT LIABILITIES AND PROVIDED FOR:

a) In respect of Letter of Credit and Bank Guarantee Rs.6,22,12,563/-( previous year Rs.3,15,77,447 )

b) Bonds have been executed in favour of customs authorities for Rs.5,70,00,000/- for the purchase of materials and capital goods without payment of duty ( previous year 4,20,00,000/-).

2. RELATED PARTY DISCLOSURES:

I ) List of Directors

Mr.Bafna Mahaveer Chand

Mr.Paras Bafna

Mr. Sunil Bafna II) Directors' Interest

1. Bafna Lifestyles Remedies Limited

2. Bafna Life Line Private Limited

3. Bhansilal & Co (HUF)

3. SECONDARY SEGMENT /GEOGRAPHICAL SEGMENT :

The Company has identified manufacture of medicine and drugs as the only primary reportable segment.

4. MISCELLANEOUS EXPENSES:

a. Preliminary expenses and Public Issue Expenses Rs.50,27,092/- written off during the year (Previous year Rs.5,187,192/-).

5. CENVAT

a) CENVAT credit is reckoned for the material, capital goods, stores and consumables purchased and entered into the factory premises.

6. GENERAL

a) Tax deducted at source from the payment to Contractors, Professional charges, Interest and Salaries have been deposited in time.

b) Balance under current liabilities, debtors, loans and advances are subject to confirmation.

c) Advances given to suppliers for supply of materials and others remain unconfirmed. It was explained that supply will be made in the ensuing year.

d) Loans and advances include outstanding balance of deposits with Corporate Bodies is given below.

e) The fixed Deposit of sum of Rs. 330,24,319/- (Previous Year Rs. 17,924,375/-) lying with the State bank of India are under the lien against Bank Guarantee Margin / LC Margin money and loan against deposit.

f) In view of the insufficient information from the suppliers regarding their status as SSI units the amount due to Small Scale Industrial Undertakings cannot be ascertained.

g) The Company has raised Rs.983 lakhs through preferential allotment and deployed an amount of Rs. 707.72 lakhs as Advance as on 31.03.2011 towards Brand Acquisition 'RARICAP' from M/s. N.R.Jet Enterprises-an associate of M/s. Johnson & Johnson Limited and the balance amount was utilized towards setting up of Marketing division of the Company.

h) The Company has not provided for Cess as Specified in Section 441 A of the Companies Act in the absence of any Notification by the Central Government.

i) Additional information pursuant to the provisions of paragraphs 3, 4C & 4D of part II of Schedule VI of Companies Act, 1956 to the extent applicable to the company.

j) Previous year's figures have been rearranged and regrouped wherever found necessary to confirm to current year's figures.

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Mar 31, 2010

1. CENVAT

a, CENVAT credit is reckoned for the material, capita! goods, stores and consumables purchased and entered into the factory premises,

2. General

a. Tax deducted at source from the payment to Contractors, Professional charges. Interest and Salaries have been deposited in time,

b. Balance under current liabilities, debtors, loans and advances are subject to confirmation.

d. The fixed Deposit of sum of Rs. 17,924,375/- (Previous Year Rs. 19,394,730/-) lying with the State bank of India are under the lien against Bank Guarantee Margin / LC Margin money.

e. In view of the insufficient information from the suppliers regarding their status as SSI units, the amount due to Smalt Scale Industrial Undertakings cannot be ascertained,

f. The Company has raised Rs.2560 lakhs through Public Issue and deployed it as proposed in prospectus except the following:

- For Public Issue Expenses Rs.251.35 lakhs against proposed Rs.200.00 lakhs.

- For setting up R & D Unit (still in progress) Rs.639.12 lakhs against (Previous year Rs.319.05) proposed Rs.300.00 lakhs.

- Other than the amount used as per the terms of Prospectus, an amount of Rs*217 lakhs was deposited with Corporate Bodies and the balance amount was utilized towards day to day operations of the Company.

g. Previous years figures have been rearranged and regrouped wherever found necessary to confirm to current years figures.

h. Additional information pursuant to the provisions of paragraphs 3, 4C & 4D of part II of Schedule VI of Companies Act, 1956 to the extent applicable to the company.