Home  »  Company  »  Ind-Swift Laboratori  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Ind-Swift Laboratories Ltd.

Mar 31, 2023

i) There is no income or expenses directly related to Investment property during the year apart from depreciation disclosed above.

ii) All borrowing cost is recognised in the statement of Profit &Loss account as they are not directly attributable to acquisition, construction or production of qualifying asset as defended in IND-AS 23 " Borrowing Costs".

Nature and purpose of each reserve

Securities premium - The amount received in excess of face value of the equity shares is recognised in securities premium. In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal value of share is accounted as securities premium. It is utilised in accordance with the provisions of the Companies Act, 2013.

Revaluation reserves - This reserve has been created at the time of re-valuation of Fixed assets of the company. The same is getting utilised in accordance with provisions of Ind-AS.

General reserve - The reserve arises on transfer portion of the net profit pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

Retained Earnings - Retained earnings are the profits that the company has earned till date, less any transfers to other reserves, dividends or other distribution paid to its equity shareholders general reserve is not required under the Companies Act, 2013.

Remeasurement of the defined benefit liabilities / (asset) - The cumulative balances of actuarial gain or loss arising on remeasurements of defined benefit plan is accumulated and recognised with in this component of other comprehensive income. Items included in actuarial gain or loss reserve will not be reclassified subsequently to statement of profit and loss.

(b) The NCDS amounting to H424.50 crores raised through private placement of 10 % Secured Listed Rated Redeemable. It consists of 4245 Numbers of Non- Convertible Debentures @ H10 Lacs each redeemable at premium at the end of 6 years so that the total IRR on the amount so raised shall be 20 %.

(c) Edelweiss Assets Reconstruction Company Limited (EARCL) Term loan of H132 Crores @ 9% p.a payable in 23 quarterly instalments starting from 30.09.18. The current outstanding amount is H49.99 crores

(d) During the year under review the Company has made re-payment of Fixed Deposits amounting to H42.13 Lakhs. The Company has completed the re-payment of the Deposits as per the re-payment scheme approved by the Hon''ble Company Law Board vide its order dated 30th March, 2013. Few of the fixed deposits holders have however not encashed their Fixed Deposits repayments due to which the amount due to them remain unclaimed as at the year end. The Company is committed to make those repayments as and when the valid claim for the same is filed by the respective Deposit holder.

e) DETAIL OF CHARGES ON ASSETS

(1) The Non Convertible Debenture (NCD) of H424.50 crores ; Edelweiss Assets Reconstruction Company limited debt of H49.99

crores (PY H74.99 crores) is secured as under :

(i) a first ranking pari passu charge over the entire fixed assets (both present and future) of the borrower by way of an equitable mortgage, in favour of "Security trustee 1" for the benefit of the respective lenders and

(ii) a second ranking pari passu charge over the entire current assets on the borrower in favour of "Security trustee 2" for the benefit of the respective lenders and

(iii) unconditional and irrevocable on demand personal guarantee from each promoter to the extent of their respective net worth in the form acceptable to the lenders and the security Trustee 1 in the favour of the " Security Trustee 1" for benefit of the respective lenders and

(iv) unconditional and irrevocable on the demand corporate guarantee from each of the affiliate companies in the form acceptable to the lenders and the "Security Trustee 1" in the favour of the "Security Trustee 1" for the benefit of the respective lenders and

(v) Pledge of Promoters Group Shareholding in the borrower (2,15,56,851 no of shares out of the fully diluted equity share capital of the borrower as on the effective date), free of all encumbrances.

Note: The Company has appointed M/s Vistra (ITCL) Limited as Debenture Trustee for the benefit of the NCDs & M/s IDBI Trusteeship Services limited as the Security Trustee to hold the Security on behalf of all the lenders including the NCD holders.

2) Bank borrowings for working capital H44.79 crores (P.Y. H59.49 Crores) from Bank of India & I.D.B.I., are secured by :-

(i) a first ranking pari passu charge over the entire current assets on the borrower in favour of " Security trustee " for the benefit of the respective lenders and

(ii) a second ranking pari passu charge over the entire fixed assets (both present and future) of the borrower by way of an equitable mortgage, in favour of "Security trustee" for the benefit of the respective lenders and

(iii) unconditional and irrevocable on demand personal guarantee from each promoter to the extent of their respective net worth in the form acceptable to the lenders and the security Trustee in the favour of the " Security Trustee " for benefit of the respective lenders and

(iv) unconditional and irrevocable on the demand corporate guarantee from each of the affiliate companies in the form acceptable to the lenders and the "Security Trustee" in the favour of the "Security Trustee " for the benefit of the respective lenders and

(v) Pledge of Promoters Group Shareholding in the borrower (2,15,56,851 no of shares out of the fully diluted equity share capital of the borrower as on the effective date), free of all encumbrances.

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

(f) The quartlery statements filed with banks of current assets are matched with the books of accounts.

(i) Disclosure required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 There are no material dues owed by the Group to Micro and Small enterprises, which are outstanding for more than 45 days during the year and as at March 31, 2023. This information as required under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Group and has been relied upon by the auditors.

Contingent liabilities and Commitments not provided for:

(H in Lacs)

PARTICULARS

As at 31st March, 2023

As at 31st March, 2022

(1) Contingent Liabilities

A. Claim against the company/disputed liabilities not acknowledged as debt

Contingent Liability in respect of unassessed/assessed (pending in appeal) cases of Income Tax, Excise Duty, Sales Tax, Service Tax, Bonus Act and other litigation matters (including that of PI Industries Ltd) have not been accounted for as debt

Unascertained

Unascertained

(H in Lacs)

PARTICULARS

As at 31st March, 2023

As at 31st March, 2022

B. Guarantees

-Performance Guarantee

Export obligation in respect of custom duty :

81.73

77.73

Others

4.25

4.25

- Outstanding Guarantee furnished to banks in respect Letter of Credit

710.53

3485.62

C. Commitments

Estimated amount of contracts remaining to be executed on capital account (Net of Advances)

598.00

374.63

Note No. : XXVII

In the opinion of the Board, the Current Assets, Loans & Advances shown in the Balance Sheet have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

Note No. : XXVIII

Other expenses under head administrative expenses includes H3,85,000.00 (Previous Year H4,35,000.00) paid to directors as sitting fee.

Note No. : XXX

In accordance with IND-AS 24, ''Related Party Disclosures'', issued by the Institute of Chartered Accountants of India, the Company has compiled the following information:

Note No. : XXXI

The balance in the parties accounts whether in debit or credit are subject to confirmation, reconciliation and adjustment. The impact of the same on the accounts at the year end is not ascertained.

Note No. : XXXII

Detail of Auditor''s Remuneration(i.e. payment to Auditors)

Expenditure on corporate Responsibility :

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily allocated to activities which are specified in Schedule VII of the Companies Act, 2013.

Additional Regulatory information required by Schedule III to the Companies Act, 2013

1. The company does not have any Benami property held and there is no proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made there under.

2. The company does not have any relation with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956

3. The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, the name and CIN of the companies beyond the specified layers

4. The company is not a declared wilful defaulter by any bank or financial Institution or other lender.

5. The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(is), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries The company has not received any fund from any person(s) or entity(is), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

6. There has been no income surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961

7. (A) The company has not advanced or loaned or invested funds to Intermediaries with the understanding that the Intermediary shall:

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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(B) The company has not received any fund from any Funding Party with the understanding that the company shall:

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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

8. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year

1 Geographical Segments

The segment reporting is performed on the basis of the geographical location of customers.

The management views the Indian market and export markets as distinct geographical segments.

2 Segment assets & liabilities

Segment assets consists of debtors, other non-current assets and the segment liabilities consists of creditors.

3 The figures in brackets are in respect of previous year.

Post employment Benefits

(i) Defined Contribution Plans:

The Company makes contributions towards provident fund to a defined contribution retirement benefit plan for qualifying employees. Under the plan, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the benefits.

ii) Defined Benefit Plan:

A) The Company makes annual contributions to the Group Gratuity cum Life Assurance Schemes administered by the LIC, a funded defined benefit plan for qualifying employees. The scheme provides for payment as under:

a) On normal retirement/early retirement/withdrawal/resignation: As per the provisions of the Payment of Gratuity Act, 1972 with vesting period of 5 years of service.

b) On death in service:

The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method. Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the amounts recognised in the Company''s financial statements as at the Balance Sheet date:

B) The said benefit plan is exposed to actuarial risks such as longevity risk, salary risk, Interest rate risk, liquidity risk, demographic risk, regulatory risk, Investment risk and asset/liability mismatching risk.

The discount rate indicated above reflects the estimated timing and currency of benefit payments. It is based on the yields / rates available on applicable bonds as on the current valuation date.

The salary growth rate indicated above is the Company''s best estimate of an increase in salary of the employees in future years, determined considering the general trend in inflation, seniority, promotions, past experience and other relevant factors such as demand and supply in employment market, etc.

iii) Compensatory absences

Actuarial Valuation for Compensated Absences is done as at the year end and the provision is made as per Company rules with corresponding charge to the Statement of Profit and Loss amounting to H30.11 Lacs (Previous Year 2.44 Lacs) and it covers all regular employees. Major drivers in actuarial assumptions, typically, are years of service and employee compensation.

Note No. : XLI

Previous year figures have been regrouped, rearranged wherever considered necessary for comparison.


Mar 31, 2018

i) Previously Company has revalued its assets comprising of Land, Plant & Machinery of Derabassi Unit and Jammu plant by the approved External valuer to reflect the market value and accordingly the appreciation amounting to Rs.10138.73, Rs. 14330.37 & Rs. 14231.00 Lacs (excluding land and Plant and machinery of Jammu ) respectively have been credited to Capital Reserve Account (Re-valuation Reserve A/c) as on 31.03.2007, 08.06.2011 & 30.06.2012

ii) Depreciation on revalued assets amounting to Rs.1426.31 Lacs (PY. Rs.1584.35) has been provided during the year from the Profit and Loss Account as per the Schedule II of Companies Act 2013& the same is transferred from Revaluation Reserve to General Reserves .

iii) Office Buildings includes Mumbai Office Buildings Rs. 330.68 Lacs which was purchased in the name of the Managing Director of the Company out of which one building amounting to Rs. 41.46 Lacs is mortgaged with ICICI Bank Ltd. The Company has entered into an “agreement to sell” and has taken GPA from the Managing Director. The property is yet to be registered in the name of Company.

iv) Freehold land includes Rs.13.79 crores and Flats Rs.14.58 Crore for which agreement to sell and GPA in favour of the company has been executed and the same have been put to use.

The Freehold Land & Flats are yet to be registered /transferred in the name of the Company. The said property is mortgaged with SBI on behalf of all the CDR lenders as per LOA.

(v) Capital Work in Progress (Tangible) includes: Expenses pending capitalisation Rs.1785.85 Lacs (Previous Year Rs.1969.24 Lacs) .

vi) Refer Borrowing notes XI & XII for properties pledged as security towards borrowings.

(vii) Adjustments include wirte off of Intangible assets amounting ts Rs. 4337.34 Lacs. (Refer note XXXIX)

(viii) The interest which has been capitalised in Tangible Assets is in conformity with IND-AS 23 “ Borrowing Costs”

MODE OF VALUATION OF INVENTORY

Inventories are valued as under:-Stores and spares are valued at cost.

Closing stock of Raw material is valued at Cost

Work in progress is valued at estimated cost basis or net realisable value which ever is less Finished goods are valued at cost or net realisable value whichever is less

e) Share Based Payments

The ESOP scheme titled “ESOP 2014” of the Company, was approved by the shareholders on September 30, 2014. 25,00,000 options are covered under the plan . The Company has granted 16,00,000 options till date to its eligible employees. The vesting period of these options is three years with each option convertible into one equity share of Rs.10/- each .

During the Financial year 2017-18 company has allotted 5,37,631 shares against options exercised by the employees under “ESOP 2014”

As per Ind- AS 102 “Share Based Payments” if the company is unable to measure the fair value of services rendered by employees, it has to value the cost of Employee stock option plans considering the value of equity instruments granted , Fair value calculation of equity instrument granted is based on market price of equity share instruments, In previous GAAP Company is already calculating the Intrinsic value on basis of market price of Equity shares and given the company is unable to reliably estimate the fair value of services Company’s accounting treatment of Share Based Payments is in compliance with Ind-AS 102

During this Financial Year company has been able to resolve dues of SBI through One time Settlement & as per the sanction terms a sum of Rs. 8050.00 Lacs upto 31.03.2018 has been paid. Consequently no interest on SBI loans has been booked during the current year.

In the absence of any formal execution of Balance confirmation agreement with Asset reconstruction companies the company has considered them as Non current liability and no interest has been booked. on the outstanding balance. Loans transferred to ARC pending final agreements are not being included in the calculation of maturity profile

(e) De-Recognition of Financial Liability :-

1. The Company has entered in to formal agreement with ARCIL during the current financial year vide which the loan of State Bank of Hyderabad has been settled at Rs. 2287.80 Lacs. Accordingly the waiver of Rs. 2148.35 Lacs ( Principal ; Rs. 1404.94 Lacs & Interest: Rs. 743.41 Lacs) has been recognised as income in Profit & Loss account as per “IND-AS 109” Financial Instruments

2. Loans from Mahindra & Mahindra Financial Services Ltd and SIDBI are bilaterally restructured and impact regarding waiver of financial liabilities has been recognise as Income in Profit & Loss as per “IND-AS 109” Financial Instrument.

(f) Public Deposit Restructuring

Under the provisions of the Companies Act, 2013, the Company has got its Public Deposit Scheme restructured vide its order No. C.P 27/01/2013, Dated 30.09.2013 through Hon’ble Company Law Board. The Company has been granted extension of time in repayment of these deposits.

SCHEDULES FORMING PART OF BALANCE SHEET AND PROFIT & LOSS ACCOUNT

Note:-

A) Bank borrowings for working capital Rs.278.80 crores (PY. Rs.368.81 Crores) from S.B.I., Bank of India, I.D.B.I., S.I.D.B.I. are secured by :-

(1) a first ranking pari passu charge over the entire current assets on the borrower in favour of “ Security trustee 2 “ for the benefit of the respective lenders and

(2) a second ranking pari passu charge over the entire fixed assets ( both present and future ) of the borrower by way of an equitable mortgage, in favour of “ Security trustee 1 “ for the benefit of the respective lenders and

(3) unconditional and irrevocable on demand personal guarantee from each promoter to the extent of their respective net worth in the form acceptable to the lenders and the security Trustee 1 in the favour of the “ Security Trustee 1” for benefit of the respective lenders and

(4) unconditional and irrevocable on the demand corporate guarantee from each of the affiliate companies in the form acceptable to the lenders and the “Security Trustee 1” in the favour of the “Security Trustee 1” for the benefit of the respective lenders and

(5) Pledge of Promoters Group Shareholding in the borrower (2,15,56,851 no of shares out of the fully diluted equity share capital of the borrower as on the effective date), free of all encumbrances.

B) (i) Term Loan Rs.495.44 crores ( PY. 536.16 crores) from State Bank of India, Edelweiss ARC Ltd. (Central Bank of India, State Bank of Travancore & Allahabad Bank), State Bank of Patiala(now SBI), Bank of India (including ECB), Canara Bank, Phoenix ARC Private Limited (Catholic Syrian Bank), Edelweiss ARC Ltd.(Export Import Bank of India, IDBI Bank, Asset Reconstruction Company (India) Ltd. (State Bank of Hyderabad),Nouam Financial Consultants Private Ltd. :-

(1) a first ranking pari passu charge over the entire fixed assets ( both present and future ) of the borrower by way of an equitable mortgage, in favour of “ Security trustee 1 “ for the benefit of the respective lenders and

(2) a second ranking pari passu charge over the entire current assets on the borrower in favour of “ Security trustee 2 “ for the benefit of the respective lenders and

(3) unconditional and irrevocable on demand personal guarantee from each promoter to the extent of their respective net worth in the form acceptable to the lenders and the security Trustee 1 in the favour of the “ Security Trustee 1” for benefit of the respective lenders and

(4) unconditional and irrevocable on the demand corporate guarantee from each of the affiliate companies in the form acceptable to the lenders and the “Security Trustee 1” in the favour of the “Security Trustee 1” for the benefit of the respective lenders and

(5) Pledge of Promoters Group Shareholding in the borrower (2,15,56,851 no of shares out of the fully diluted equity share capital of the borrower as on the effective date), free of all encumbrances.

(ii) ECB Rs. 234.55 crores ( PY 233.81 Crores) from Bank of Baroda and DEG. Rupee term loan from Edelweiss ARC Ltd.(IFCI) Rs.15.94 crores ( PY Rs.15.94 crores ), L&T Rs.1.41 crores ( PY9.37 crores ), M&M Rs. 0 (PY 15.50 ) are secured by first ranking pari passu equitable charge on the moveable and immovable properties admeasuring 68 bighas & 13 biswas situated at village Behra & village Bhagwanpura Plot No E-5, Industrial Focal Point, Phase II , Mohali in the state of Punjab together with all buildings & structures, Plant & Machinery thereon and personal guarantees of promoter directors.

(iii) Other term loan & advances Rs. 0.88 crores ( PY 2.94 crores ) includes ICICI Home Loan in the name of Mr. N.R.Munjal, which is secured against the office premises in Mumbai and another Term loan from Technology Development Board is secured by way of charges on movable fixed assets & personal guarantee of Shri N.R.Munjal.

i) Statutory Liabilities include TDS/TCS payable, ESI Payable, PF payable, Labour welfare Payable, Excise duty/Sales Tax/ Service Tax payable/GST Payable.

ii) Expenses payable include Salary, wages, Bonus, Short term compensated absences and gratuity payable, Audit Fees, Electricity Exp payable.

Managerial Remuneration of Rs.407.68 Lacs for the financial year ended 31 march 2018, is the same since 2012. Despite of the Company earning profits during the year, the quantum of profits are inadequate in terms of the Companies Act, 2013 for the payment of remuneration of 407.68 Lacs. Accordingly a sum of Rs.371.67 Lacs has been disallowed in addition to the amount disallowed in the previous years in terms of limits prescribed under section 196,197 & 198 read with Part II of Schedule V of Companies Act, 2013. Further the company has filed necessary application to Central Government which is pending approval as on date. Pending the ultimate outcome of the above said matter which is presently unascertainable, no adjustments have been recorded in the statement.

I Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs. 380.82 Lacs (Previous year Rs. 365.90 Lacs )

II In the opinion of the Board, the Current Assets, Loans & Advances shown in the Balance Sheet have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

III Other expenses under head administrative expenses includes Rs.3.30 Lacs (Previous Year Rs.3.50 Lacs) paid to directors as sitting fee.

IV In accordance with IND-AS 24, ‘Related Party Disclosures’, issued by the Institute of Chartered Accountants of India, the Company has compiled the following information :

V The balance in the parties accounts whether in debit or credit are subject to confirmation, reconciliation and adjustment. The impact of the same on the accounts at the year end is unascertainable.

VI Company has not received intimation from supplier regarding the status under Micro, Small and Medium Enterprises Development Act 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with the interest paid/payable as required under the said Act have not been given.

VII The outstanding dues of Micro small & medium enterprises have been determined to the extent such parties have been identified on the basis of information available with the company. The parties to whom the Company owes sum outstanding for more than 30 days as at the balance sheet date are:

(1)Ammonia Supply Co.(2) Time technoplast Ltd.

VIII Detail of Auditor’s Remuneration(i.e. payment to Auditors)

IX Loans & Advances include Rs.7.53 Lacs (PY 8.27 Lacs) due from CFO. Maximum amount due during the year is Rs.8.27 Lacs(PY. 8.27 Lacs) and Rs.12.67 Lacs (PY 12.67 Lacs) due from Company Secretary. Maximum amount due during the year is Rs.12.77 Lacs (PY. 12.67 Lacs)

X (a) The company has not provided quantitive information under clause 2(5) in view of the exemption granted by central Government vide their notification no. 301 dated 08.02.2011.

XI SEGMENT REPORTING

The Company operates only in one business segment viz. Bulk Drugs & Pharmaceuticals. However the figures in Segment Reporting is based on geographical location of its customers.

NOTES:-

1 Geographical Segments

The segment reporting is performed on the basis of the geographical location of customers.

The management views the Indian market and export markets as distinct geographical segments.

2 Segment assets & liabilities

Segment assets consists of debtors , other non-current assets and the segment liabilities consists of creditors.

3. The figure in brackets are in respect to previous year.

XII “Unpaid dividend as on 31.03.2018 is Rs. 6.38 Lacs ( Previous year Rs. 9.76 Lacs ). During the Fnancial year, an amount of Rs. 3.38 Lacs transferred to central government “ account (IEPF) on account of unpaid dividend for the financial year 2008-09

XIII Capital WIP includes expenses incurred on “ Product Technology Development Expenditure “ amounting to Rs. nil Lacs ( Previous Year Rs. 263.14 Lacs ) .

XIV Expenditure on Research & Development

d) Debited to Profit & Loss Account as per Annexure XXII(R&D Mohali Unit) 2493.29 823.56

e) Debited to Profit & Loss Account as per Annexure XXII(DB Unit) 513.16 1051.71

f) Depreciation 3929.72 3798.30 The Depreciation related to research & development is clubbed under respective head in profit & loss account.

XV During the year Intangible assets amounting to Rs. 4337.34 Lacs and Capital WIP Intangibles amounting to Rs. 263.10 Lacs has been written off in view of the company’s accounting policy. Company has idetntified molecules which were deveolped during recent years but there is no expectations of future cash flows from these products looking in to market scenario, originator’s product position and additional capex requirement.

XVI During the year the company has received the proceeds of insurance claim lodged with “The United India Insurance company Ltd.” with regard to fire that occurred in M/s Dashmesh Medicare Pvt. Ltd. dated 30th April,2012. Since the company has received lesser amount than booked in the books of accounts under the head as “Insurance Claim Receivable” , the difference amount has been charged to Profit & loss account under the head exceptional items.

XVII A fire incident occurred at Derabassi unit of the company on 08th Feb,2017. The assessment of loss by the Insurer of the company i.e.. SBI General Insurance Co. Ltd has been assessed in the current financial year. The accounting adjustment of the same has been done in FY 2017-18 creating a provision for amount recoverable amounting to Rs. 657.73/- Lacs from the Insurance company (Rs.187.08/- Lacs for the loss of stock by fire and Rs. 470.65/- Lacs for the loss of Fixed Assets).

This incident does not affect the going concern assumption of the company.

XVIII Company has classified the following as Exceptional Items:-

a) Loss amounting to Rs.116.61 Lacs on account of difference of insurance claim recoverable as per books of accounts and actual amount received from Insurance company . (Refer Note XL)

b) Income amounting to Rs. 4587.46 Lacs recognised due to derecognition of financial Liabilities on account of One time settlement of loans/Assignment of Loans to ARCs. (Refer Accounting Policy - 13.2.3.2 )

c) Intangible assets amounting to Rs. 4337.34 Lacs and Capital WIP Intangibles amounting to Rs. 263.10 Lacs written off (Rrefer Note XXXIX)

XIX Post employment Benefits

(i) Defined Contribution Plans:

The Company makes contributions towards provident fund to a defined contribution retirement benefit plan for qualifying employees. . Under the plan, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the benefits.

ii) Defined Benefit Plan:

“A) The Company makes annual contributions to the Group Gratuity cum Life Assurance Schemes administered by the LIC, a funded defined benefit plan for qualifying employees. The scheme provides for payment as under:

a) On normal retirement / early retirement / withdrawal / resignation: As per the provisions of the Payment of Gratuity Act, 1972 with vesting period of 5 years of service.

b) On death in service: The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method. Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the amounts recognised in the Company’s financial statements as at the Balance Sheet date:”

The discount rate indicated above reflects the estimated timing and currency of benefit payments. It is based on the yields / rates available on applicable bonds as on the current valuation date.

The salary growth rate indicated above is the Company’s best estimate of an increase in salary of the employees in future years, determined considering the general trend in inflation, seniority, promotions, past experience and other relevant factors such as demand and supply in employment market, etc.

The amount included in the balance sheet arising from the entity’s obligation in respect of its defined benefit

iii) Compensatory absences

Actuarial Valuation for Compensated Absences is done as at the year end and the provision is made as per Company rules with corresponding charge to the Statement of Profit and Loss amounting to Rs.172.51 Lacs (Previous Year 54.08 Lacs ) and it covers all regular employees. Major drivers in actuarial assumptions, typically, are years of service and employee compensation.

XX Previous year figures have been regrouped, rearranged wherever considered necessary for comparison.


Mar 31, 2016

NOTE NO. XXIV Total amount of secured Term Loans installments payable during twelve months following 31.03.2016 are Rs. 20724.87 Lacs ( Previous year Rs. 14669.55 Lacs).

NOTE NO. XXV The balance in the parties accounts whether in debit or credit are subject to confirmation, reconciliation and adjustment. The impact of the same on the accounts at the year end is unascertainable.

NOTE NO. XXVI In compliance withAS-15, during the year, company has provided Rs. 300.37 Lacs (Rs. 137.93 Lacs) as provision towards the Company Gratuity Policy maintained with LIC after the actuarial valuation done by the LIC.

NOTE NO. XXVII The company entered into Forward Exchange Contracts being derivative instruments, which are not intended for trading or speculative purposes, but for hedge purposes, to establish the amount of reporting currency required or available at the settlement date.

NOTE NO. XXVIII Company has not received intimation from supplier regarding the status under Micro, Small and Medium Enterprises Development Act 2006 and hence disclosures, if any, relating to amounts unpaid as at the yearend together with the interest paid/payable as required under the said Act have not been given.

NOTE NO. XXIX The outstanding dues of Micro small & medium enterprises have been determined to the extent such parties have been identified on the basis of information available with the company. The parties to whom the Company owes sum outstanding for more than 30 days as at the balance sheet date are :

(1) Ammonia Supply Co. (2) Time techno last Ltd.

NOTE NO. XXX During the year, the Company has incurred foreign currency revenue expenditure of RMB 323298.86 on its China Office and GBP 393.33 on its U.K office Operation. Such Foreign Currency Expenditure has been translated in Indian Currency @ One RMB equivalent to Rs. 9.89 and One GBP equivalent to Rs. 98.76 at the year end on the basis of average exchange rate during the year computed as per cross currency reference rates published by RBI.

Note No. XXXIII Loans & Advances include Rs. 8.27 lacs (P.Y 8.27 lacs) due from CFO. Maximum amount due during the year is Rs. 8.27 Lacs(P.Y. 8.27 Lacs) and Rs. 12.67 lacs (P.Y 14.94 lacs) due from Company Secretary. Maximum amount due during the year is Rs. 14.94 Lacs(P.Y. 14.94 Lacs)

Note No. XXXIV (a) The company has not provided quantitive information under clause 2(5) in view of the exemption granted by central Government vide their notification no. 301 dated 08.02.2011.

Note No. XXXV Unpaid dividend as on 31.03.2016 is Rs. 9.76 lacs ( Previous year Rs . 13.51 lacs ). During the financial year, an amount of Rs. 3.88 lacs transferred to central government account (IEPF) on account of unpaid dividend for the financial year 2006-07.

Note No. XXXVI Capital WIP includes expenses incurred on “Product Technology Development Expenditure” amounting to Rs. 680.71 Lacs (Previous Year Rs. 1406.55 Lacs).

The Depreciation related to research & development is clubbed under respective head in profit & loss account.

The expenditure incurred has been capitalized and carried in Capital Work in Process. The Management is of the view that it is in the nature of development expenditure and meets the capitalization criteria set out in AS-26 on Intangible Assets issued by ICAI. The management is of the view that these products would be commercially viable & there is no reason to believe that there is any uncertainty that may lead to not securing registration for the products from regulating authorities in US and/or Europe.

Note No. XXXIX CORPORATE DEBT RESTRUCTURING STATUS

The present status of already approved CDR package as on 31st March 2016 is :

Some of the CDR Lenders viz Catholic Syrian Bank, State Bank of Travencore, Allahabad Bank , State bank of Hyderabad & Central Bank of india has assigned their loans to ARC. The cumulative total of the recompense amount as per CDR package up to 31.3.2016 is Rs. 126.20 crores as per the approval dated November 9, 2012 of the CDR EG.

Note No. XL Company has written off the old balances in view of the accounting new policy (Refer to Accounting Policy No. 16)

Note No. XLI The insurance claim lodged with The United India Insurance Company Ltd. In regards to fire occurred on the premises of M/s Dashmesh Medicare Pvt. Ltd. on 30th April,2012 is still pending though the site has been released to M/s Dashmesh Medicare Pvt. Ltd. by Punjab Administration Control. The losses could not be quantified as on 31st March, 2016.

Note No. XLII Previous year figures have been regrouped, rearranged wherever considered necessary for comparison.

A. SIGNIFICANT ACCOUNTING POLICIES 1. SYSTEM OF ACCOUNTING

The financial statements of the company have been prepared to comply with all material aspects of the applicable Accounting Principles in India, the applicable Accounting Standards notified under section 211 (3C) and the other relevant provision of the Companies Act , 2013. The financial statements have been prepared under the historical cost convention and on the basis of going concern.

2. FIXED ASSETS & DEPRECIATION

a. COST OF FIXED ASSETS

All Fixed Assets are valued at cost/revalued cost net of Cenvat credit wherever eligible. Cost includes all expenses and borrowing cost attributable to the project till the date of commercial production / ready to use.

b. DEPRECIATION / AMORTISATION

Depreciation is provided on straight line method at the rates specified in schedule II of the Companies Act 2013 on pro rata basis and the assets having the value upto Rs. 5000 have been depreciated at the rate of 100%. Lease hold Land is amortized over the period of lease. The policy of company is to provide depreciation on the Buildings , Plant & Machinery and Other Fixed assets from the date of commercial production/ ready to use.

c. INTANGIBLE ASSETS (OTHER ASSETS)

Cost of product development for which the company becomes entitled to a Patent or DMF filed with regulatory authorities is recognized as other assets. The policy of company is to amortize such assets acquired up to 31-03-2008 on straight-line basis in five subsequent years and those acquired after 31.3.2008 and onwards in ten subsequent years from the year in which these are acquired.

3. BORROWING COSTS

Borrowing costs that are directly attributable to the acquisition, construction of qualifying assets have been capitalized as part of cost of assets. Other Borrowing costs are recognized as an expense in the period in which they are incurred.

4. INVENTORIES

Inventories are valued as under :

Stores & Spares are valued at cost.

Raw Materials are valued at cost on FIFO basis except from last year onwards valuation of the Menthol has been made at cost or Market price whichever is less.

Work in Process is valued at estimated cost basis or net realizable value whichever is less.

Finished Goods are valued at cost or net realizable value whichever is less and is inclusive of excise duty and all expenditure directly attributable to production.

5. RECOGNITION OF INCOME AND EXPENDITURE

Sales are recognized when goods are supplied and are recorded net of rebates and sales tax but inclusive of excise duty. Expenses are accounted for on accrual basis.

6. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are recorded at the exchange rates prevailing at the date of the transactions. The gain or loss arising from forward transactions have been recognized in the year in which the contract has been cancelled/ matured. Foreign currency denominated current assets & current liabilities are translated at year end exchange rates. The resulting gain or loss is recognized in the Profit& Loss Account.

In translating the financial statement of representative foreign offices for incorporation in main financial statements, the monetary assets and liabilities are translated at the closing rates non monetary assets and liabilities are translated at exchange rates prevailing at the dates of the transactions and income and expenses items are converted at the yearly average rate.

7. COMMODITY EXCHANGE TRANSACTIONS

Commodity Exchange Transaction are recorded at the commodity exchange rate prevailing on the transaction date. Contracts remaining outstanding at the yearend have been recorded as per year end rate and resultant profit and loss arising from outstanding contracts are recognized accordingly in the profit and loss account.

8. RETIREMENT BENEFITS

The retirement benefits of the employees include Gratuity ,Provident Fund & Leave Encashment. The gratuity is funded through the Group Gratuity Policy with Life Insurance Corporation of India and the contribution to the fund is based on actuarial valuation carried out yearly as at 31st March. Contribution to the provident fund is provided on accrual basis. The leave encashment is provided on the basis of employees entitlement in accordance with company''s rules.

9. EMPLOYEES STOCK OPTION SCHEME

The accounting value of stock options representing the excess of the market price on the date of grant over the exercise price of the shares granted under "Employees Stock Option Scheme" of the Company, is amortized as "Deferred Employees Compensation" on a straight-line basis over the vesting period in accordance with the SEBI [Employee Stock Option Scheme and Employee Stock Purchase Scheme] Guidelines, 1999 and Guidance Note 18 " on Share Based Payments" issued by the ICAI.

10. CURRENT & DEFERRED TAX

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax assets is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

MAT Credit Entitlement is shown under the Current Assets in the Balance Sheet. The same will be charged to profit & loss account in coming years as per the provisions of Section 115JB of Income Tax Act, 1961.

11. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognized when there is a present obligation as a result of a past event, that probably requires an outflow of resources and a reliable estimate can be made to settle the amount of obligation. Provision is not discounted to its present value and is determined based on the last estimate required to settle the obligation at the year end. These are reviewed at each year end and adjusted to reflect the best current estimate. Contingent liabilities are not recognized but disclosed in the financial statements. Contingent assets are neither recognized nor disclosed in the financial statements.

12. GOVERNMENT SUBSIDY

The policy of company is to account for the Government Subsidy on actual receipt basis.

13. EXPORT INCENTIVES

a) Obligation / entitlements on account of Advance Licenses Scheme for import of raw materials are not accounted for but given by way of note.

b) Export incentives are treated as income on export under DEPB & other post export incentive schemes and the same is offset & treated as expenditure in the year of import/ utilization of license.

14. INVESTMENTS

Long Term Investments are being valued at cost.

Current Investments are carried at lower of cost & fair value, determined on an individual investment basis.

15. IMPAIRMENT OF ASSETS

Management periodically assesses using external and internal sources where there is an indication that an asset may be impaired. An impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuous use of the assets and its eventual disposal. The impairment loss to be accounted for is determined as the excess of the carrying amount over the higher of the asset''s net sales price or present value.

16. TRADE RECEIVABLES

Sundry debtors more than three years at the end of Balance Sheet date will be written off from the books of accounts except those debtors pertaining to related parties and disputed debtors having matter pending under different Courts.

17. OTHER ACCOUNTING POLICIES

Accounting Policies not specifically referred to are in accordance with generally accepted accounting principles


Mar 31, 2015

NOTE No. I : SHARE APPLICATION MONEY

During the year under review, the promoters have infused their contribution amounting to Rs. 2.25 crores which is yet to be converted into equity shares pursuant to its approved CDR package along with previous year contribution of Rs. 9.31 crores. Till the conversion to equity shares, the amount is treated as Share application money as on 31.03.2015. The Company could not issue shares against this promoters contribution as company's application for pre-approval for allotment of shares in terms of the Clause 24(a) of the listing agreement was pending with the exchanges as on 31.03.2015.

Notes

A) 14% Non Convertible Debentures amounting to Rs. 0.16 Crores (P.Y. 0.56) from Tata Capital Limited is secured by first ranking pari passu charge on the immovable properties situated at village Behra & village Bhagwanpura Plot No E-5, Industrial Focal Point, Phase II , Mohali in the state of Punjab together with all buildings & structures, Plant & Machinery thereon and personal guarantees of Mr. S.R.Mehta, Mr. N.R.Munjal.

B) Bank borrowings for working capital Rs. 376.12 crores (P.Y. Rs. 352.79 Crores) from S.B.I., Bank of India, S.B.O.P, I.D.B.I., S.I.D.B.I. are secured by :-

(1) A first ranking pari passu charge over the entire current assets on the borrower in favour of " Security trustee 2 '' for the benefit of the respective lenders and

(2) A second ranking pari passu charge over the entire fixed assets (both present and future) of the borrower by way of an equitable mortgage , in favour of " Security trustee 1'' for the benefit of the respective lenders and

(3) Unconditional and irrevocable on demand personal guarantee from each promoter in the form acceptable to the lenders and the security Trustee 1 in the favour of the " Security trustee 1'' for benefit of the respective lenders and

(4) Unconditional and irrevocable on the demand corporate guarantee from each of the affiliate companies in the form acceptable to the lenders and the "Security Trustee 1" in the favour of the "Security Trustee 1" for the benefit of the respective lenders and

(5) Pledge of 100% Promoters Group Shareholding in the borrower (50.58% of the fully diluted equity share capital of the borrower as on the effective date), free of all encumbrances, including additional share acquired by the promoters on infusion of equity in the Borrower in accordance with the terms of this Agreements, and the CDR Package in the favour of the "Security Trustee 1" and "Security Trustee 2" for the benefit of all respective lenders.

C) (i) Term Loan Rs. 553.85 crores ( P.Y. 564.86 crores) from State Bank of India including State Bank of Indore ( as now merged with SBI ) ,Central Bank of India , State Bank of Patiala , Bank of India including (ECB) , Canara Bank, Bank of India , Phoenix ARC Private Limited (Catholic Syrian Bank), Export Import Bank of India, IDBI Bank, ICICI Bank Limited , State Bank of Hyderabad , Edelweiss Arc Ltd. (State Bank of Travancore) , Allahabad Bank , SIDBI FITL are secured by :-

(1) A first ranking pari passu charge over the entire fixed assets (both present and future) of the borrower by way of an equitable mortgage, in favour of " Security trustee 1 '' for the benefit of the respective lenders and

(2) A second ranking pari passu charge over the entire current assets on the borrower in favour of " Security trustee 2" for the benefit of the respective lenders and

(3) Unconditional and irrevocable on demand personal guarantee from each promoter in the form acceptable to the lenders and the security Trustee 1 in the favour of the " Security trustee 1" for benefit of the respective lenders and

(4) Unconditional and irrevocable on the demand corporate guarantee from each of the affiliate companies in the form acceptable to the lenders and the "Security Trustee 1" in the favour of the "Security Trustee 1" for the benefit of the respective lenders and

(5) Pledge of 100% Promoters Group Shareholding in the borrower (50.58% of the fully diluted equity share capital of the borrower as on the effective date), free of all encumbrances, including additional share acquired by the promoters on infusion of equity in the Borrower in accordance with the terms of this Agreements, and the CDR Package in the favour of the "Security Trustee 1" and Security Trustee 2" for the benefit of all respective lenders.

(ii) ECB Rs. 227.12 crores (P.Y. 218.08 Crores) from Bank of Baroda and DEG Rupee term loan from IFCI Rs. 15.94 crores (P.Y. Rs. 15.94 crores ), L&T Rs. 19.13 crores (P.Y. 19.37 crores ), M&M Rs. 24.50 crores (P.Y. 24.50 crores) are secured by first ranking pari passu equitable charge on the moveable and immovable properties admeasuring 68 bighas & 13 biswas situated at village Behra & village Bhagwanpura Plot No E-5, Industrial Focal Point, Phase II, Mohali in the state of Punjab together with all buildings & structures, Plant & Machinery thereon and personal guarantees of promoter directors.

(iii) Vehicle loans Rs 0.23 Crores (P.Y. 1.07) from HDFC, ICICI and NBFC are secured against hypothecation of the vehicles under the hire purchase agreement.

(iv) Other term loan & advances Rs. 4.45 crores (P.Y. 8.21 crores) includes ICICI Home Loan, Siemens Financial Services Pvt. Ltd. And India bulls Housing Finance Ltd. In the name of Mr. N.RMunjal, and is secured against the office premises in Mumbai and another Term loan from Technology Development Board is secured by way of charges on movable fixed assets & personal guarantee of Mr. N.RMunjal.

D) CORPORATE DEBT RESTRUCTURING :-

Catholic Syrian Bank, member of CDR group has transferred their entire loan portfolio amounting top Rs. 56.38 Crore to Asset Reconstruction Company on 30th September 2014, namely Phoenix ARC Pvt. Ltd. No interest has been charged in the books for the period Oct 2014 till March 2015 as the confirmation in this regard is still awaited from Phoenix.

State Bank of Travancore, member of CD group has also transferred their entire loan portfolio amounting to Rs. 60.31 Crore to Asset Reconstruction Company on 31.03.2015, namely Edelweiss Arc Ltd.

Details of the CDR Members Banks who have declared the Accounts of the company as an NPA

SBI has ceased charging interest from 1st April 2014 and accordingly the company has charged provisional interest in the books for the year ending 31st march 2015. In regard to above other banks, through declared NPA, the banks continued charging interest up to 31st march 2015 and accordingly the company has charged interest in the books of accounts.

Balance confirmation for TDB, IFCI, and L&T are unavailable. In absence of same provisional interest is being booked for these banks. In books of accounts the loan with Mahindra & Mahindra stands disputed and pending with Hon'ble Punjab & Haryana High Court. Hence, no Interest is being booked for the year ended 31st, March 2015.

FIXED DEPOSITS RESTRUCTURING:

Under the provisions of the Companies Act, 2013, the Company has got its Fixed Deposit Scheme restructured vide its order No. C.P 27/01/2013, Dated 30.09.2013 through Hon'ble Company Law Board. The Company has been granted extension of time in repayment of these deposits. Few of the FD holders have however approached the courts for the repayment of their Fixed Deposits.

i) Company has revalued its assets comprising of Land, Plant & Machinery of Derabassi Unit and Jammu plant by the approved External Valuer to reflect the market value and accordingly the appreciation amounting to Rs.10138.73, Rs. 14330.37 & Rs. 14231.00 lacs (excluding land and Plant and machinery of Jammu) respectively have been credited to Capital Reserve Account (Re-valuation Reserve A/c) as on 31.03.2007, 08.06.2011 & 30.06.2012.

ii) Depreciation on revalued assets amounting to Rs. 1586.00 Lacs has been provided during the year from the Profit and Loss Account as per the Schedule II of Companies Act 2013& the same is transferred from Revaluation Reserve to General Reserves whereas during the previous year Depreciation amounting to Rs.1549.12 Lacs was charged to revaluation reserve.

iii) The company has revised depreciation rates with effect from 01-Apr-2014 as per the useful life specified in Schedule - II of the companies act 2013. As prescribed under Schedule -II an amount of Rs. 2.01 crores has been charged to the opening balance of Retained Earnings for the assets in respect of which the remaining useful life is NIL as on 01-Apr-2014 and in respect of other Assets on that date depreciation has been calculated based on remaining useful life of those assets. Had the company continued with the previously applicable Schedule -XIV Rates, charge for the Depreciation for the year ended 2015 would have been lower by Rs. 2.08 crores and the Net Loss would have been lower by the same amount and depreciation on revalued assets would have been lower by Rs.0.48 crores.

iv) Office Buildings includes Mumbai Office Buildings Rs. 700.20 Lacs which was purchased in the name of the Managing Director of the Company out of which one building amounting to Rs. 41.46 Lacs is mortgaged with ICICI Bank. The Company has entered into an "agreement to sell" and has taken GPA from the Managing Director. The property is yet to be registered in the name of Company

v) Freehold land includes Rs.13.79 crores and Flats Rs. 14.58 Crore for which agreement to sell and GPA in favour of the company has been executed and the same have been put to use.

The Freehold Land & Flats are yet to be registered /transferred in the name of the Company

vi) Capital Work in Progress includes :

Expenses pending capitalisation Rs. 3256.49 Lacs (Previous Year Rs. 2375.79 lacs) .

vii) The interest which has been capitalised is confirmity with AS - 16.

NOTE No. II Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs 271.89 Lacs (Previous year Rs. 522.97 lacs)

NOTE No. III In the opinion of the Board, the Current Assets, Loans & Advances shown in the Balance Sheet have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

NOTE No. vI Other expenses under head administrative expenses includes Rs.1,47,352.00 (Previous Year Rs.83,573.00) paid to directors as sitting fee.

NOTE NO. V In accordance with Accounting Standard 18, 'Related Party Disclosures' , issued by the Institute of Chartered Accountants of India, the Company has compiled the following information :

a. List of related parties and their relationship

Associate Companies

Ind Swift Limited

Essix Biosciences Limited

Halcyon Life Sciences Pvt Ltd.

Fortune(India) Constructions Ltd.

Mansa Print & Publishers Limited

Swift Fundamental Research & Education Society

3M Advertisers & Publishers Ltd.

Punjab Renewable Energy Pvt Ltd.

Hakim Farayand Chemi Co. (Iran)

Subsidiary Companies Ind Swift Laboratories Inc. USA

Meteoric Life Science Pte Ltd. ,Singapore Ind-Swift Middle East FZE (UAE)

Other companies in which one of the Director of the Company is a Director

Mohali Green Environment Private Limited

Saidpura Envirotech Private Limited

Consummate Pharmaceuticals Private Limited

Nimbua Green Field (Punjab) Limited

Dashmesh Medicare Private Limited

AKJ Portfolios Pvt. Ltd.

NRM Portfolios Pvt. Ltd.

GM Portfolios Pvt. Ltd.

VRM Portfolios Pvt Ltd.

VKM Portfolios Pvt Ltd.

SRM Portfolios Pvt Ltd.

Key Management Personnel / Directors Sh. N.R. Munjal, Vice-Chairman cum Managing Director

Sh. Himanshu Jain, Jt. Managing Director

Mr. Rishav Mehta, Executive Director

Mr. N.K. Bansal, Chief Financial Officer

Mr. Pardeep Verma, GM-Corp. Affairs & CS

Others entities in which Relatives of KMP have control or significant influence

Integral Buildcon Private Limited

Vibrant Agro Industries Limited

B.M. Cosmed Private Limited

KMB Hospitality Services Private Limited

NOTE NO. VI Total amount of secured Term Loans installments payable during twelve months following 31.03.2015 are Rs. 14669.55 Lacs ( Previous year Rs. 6778.01 Lacs)

NOTE NO. VII The balance in the parties accounts whether in debit or credit are subject to confirmation, reconciliation and adjustment. The impact of the same on the accounts at the year end is unascertainable.

NOTE NO. VIII In compliance with AS-15, during the year, company has provided Rs. 137.93 Lacs (Rs. 10.62 Lacs) as provision towards the Company Gratuity Policy maintained with LIC after the actuarial valuation done by the LIC.

NOTE NO. IX The company entered into Forward Exchange Contracts being derivative instruments, which are not intended for trading or speculative purposes, but for hedge purposes, to establish the amount of reporting currency required or available at the settlement date.

NOTE NO. X Company has not received intimation from supplier regarding the status under Micro, Small and Medium Enterprises Development Act 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with the interest paid/payable as required under the said Act have not been given.

NOTE NO. XI The outstanding dues of Micro small & medium enterprises have been determined to the extent such parties have been identified on the basis of information available with the company. The parties to whom the Company owes sum outstanding for more than 30 days as at the balance sheet date are :

(1) Ammonia Supply Co.

(2) Time technoplast Ltd.

Note No. XII During the year, the Company has incurred foreign currency revenue expenditure of RMB 424386.33 on its China Office and GBP 793.16 on its U.K office Operation. Such Foreign Currency Expenditure has been translated in Indian Currency @ One RMB equivalent to Rs. 9.89 and One GBP equivalent to Rs. 98.56 at the year end on the basis of average exchange rate during the year computed as per cross currency reference rates published by RBI.

Note No. XIII Loans & Advances include Rs. 14.94 lacs (P.Y 14.89 lacs) due from Company Secretary. Maximum amount due during the year is Rs. 14.94 Lacs (P.Y. 15.16Lacs)

Note No. XIV (a) The company has not provided quantitive information under clause 2(5) in view of the exemption granted by central Government vide their notification no. 301 dated 08.02.2011.

Note No. XV Unpaid dividend as on 31.03.2015 is Rs. 13.51 lacs ( Previous year Rs . 17.28 lacs ). During the financial year, an amount of Rs. 3.60 lacs transferred to central government account (IEPF) on account of unpaid dividend for the financial year 2006-07.

Note No. XVI Capital WIP includes expenses incurred on "Product Technology Development Expenditure" amounting to Rs 1406.55 Lacs ( Previous Year Rs. 1849.07 Lacs).

The expenditure incurred has been capitalised and carried in Capital Work in Process .The Management is of the view that it is in the nature of development expenditure and meets the capitalisation criteria set out in AS-26 on Intangible Assets issued by ICAI. The management is of the view that these products would be commercially viable & there is no reason to believe that there is any uncertainty that may lead to not securing registration for the products from regulating authorities in US and/or Europe.

Note No. XVII CORPORATE DEBT RESTRUCTURING

The present status of already approved CDR package as on 31st March 2015 is:

The FITL has been created as per the sanction of the respective banks, subject to reconciliation with Banks. The cumulative total of the recompense amount as per CDR package up to 31.3.2015 is Rs. 92.90 crores as per the approval dated November 9, 2012 of the CDR EG.

As per Letter of Approval (LOA), the promoters were required to bring in their contribution aggregating to Rs.27.38 crore (i.e. 25% of total sacrifice of Rs.109.52 crore) before December 2014.However , promoters had so far infused Rs.20.87 crore as on 31st March 2015 and further the balance amount will be infused by September 2015. The same has also been permitted by CDR Eg.

Note No. XVIII Company has written off the old balances in view of the accounting new policy (Refer to Accounting Policy no 16)

Note No. IX FIXED DEPOSIT RESTRUCTURING

The company has not maintained the Liquid Assets ( i.e. 15% of Deposits maturing next financial year ) as a statutory requirement under the companies (Acceptance of Deposit) Rules, 2014. For the relaxation of the above statutory requirement, company had filed the application to the Central Government ( Ministry of Company Affairs ) which has been rejected by the Central Government vide its letter dt 23.03.2015 received in April 2015.

Note No. XX The insurance claim lodged with The United India Insurance company Ltd. In regards to fire occurred on the premises of M/s Dashmesh Medicare Pvt. Ltd. on 30th April,2012 is still pending though the site has been released to M/s Dashmesh Medicare Pvt. Ltd. by Punjab Administration Control. The losses could not be quantified as on 31st March, 2015.

Note No. XXI During the year company has received a subsidy amounting to Rs. 137.15 lakhs on interest cost and the same has been net off with interest cost.

Note No. XXII Previous year figures have been regrouped, rearranged wherever considered necessary for comparison.


Mar 31, 2014

SHARE CAPITAL

During the year, Company has allotted 16,92,725 equity shares to the Promoters under the CDR scheme at Rs. 55/- per share (including premium of Rs. 45/- per share)

The proceeds of preferential allotment was fully utilised towards meeting the day-to-day working capital requirements of the company.

The Company has ESOP Scheme called "ESOS 2006". During the year, Company has granted no Employee Stock Option to its employees. Deferred Employee Compensation Cost is being amortised over a period of two years, being the remaining vesting period and on proportionate basis.

SHARE APPLICATION MONEY

During the year under review, the promoters have infused their promoters contribution amounting to Rs. 9.31 crores which is to be converted into equity shares pursuant to its approved CDR package against various liabilities of the company to banks. Till the conversion to equity shares, the amount is treated as Share application money as on 31.03.2014. The amount received (Rs. 9.31 crores) as contribution in last financial year as Share Application Money has been converted into Share Capital.

LONG-TERM BORROWINGS

Notes

A) 14% Non Convertible Debentures amounting to Rs 0.56 Crores (P.Y. Rs. 1.98)from Tata Capital Limited is secured by first ranking pari passu charge on the immovable properties situated at Village Behra & Village Bhagwanpura, Plot No E-5, Industrial Focal Point, Phase II , Mohali in the state of Punjab together with all Buildings & Structures. Plant & Machinery thereon, personal guarantees of Mr. S.R. Mehta, Mr. N,R. Munjal.

B) Bank borrowings for working capital Rs.352.79 Crores (P.Y.. Rs. 336.13 Crores) from S B.I., Bank of India, S.B.O.P., I.D.B.I., S.I.D.B.I. are secured by

(1) A first ranking pari passu charge over the entire current assets on the borrower in favour of "Security trustee 2 " for the benefit of the respective lenders and

(2) A second ranking pari passu charge over the entire fixed assets ( both present and future ) of the borrower by way of an equitable mortgage, in favour of "Security trustee 1" for the benefit of the respective lenders and

(3) Unconditional and irrevocable on demand personal guarantee from each promoter in the form acceptable to the lenders and the security Trustee 1 in the favour of the "Security Trustee 1" for benefit of the respective lenders and

(4) Unconditional and irrevocable on the demand, corporate guarantee from each of the affiliate companies in the form acceptable to the lenders and the "Security Trustee 1" in the favour of the "Security Trustee 1" for the benefit of the respective lenders and

(5) Pledge of 100% Promoters Group Shareholding in the borrower (50.58% of the fully diluted equity share capital of the borrower as on the effective date)," free of all encumbrances , including additional share acquired by the promoters on infusion of equity in the Borrower in accordance with the terms of this Agreements, and the CDR Package in the favour of the "Security Trustee 1" and Security Trustee 2" for the benefit of all respective lenders.

C) (i) Term Loan Rs. 564.86 Crores (P.Y. Rs. 488.51 Crores) from State Bank of India including State Bank of Indore ( as now merged with SBI) , Central Bank of India. State Bank of Patiala, Bank of India including (ECB), Canara Bank, Bank of India, Catholic Syrian Bank, Export Import Bank of India, IDBI Bank, ICICI Bank Limited, State Bank of Hyderabad, State Bank of Travancore, Allahabad Bank are secured by:-

(1) A first ranking pari passu charge over the entire fixed assets ( both present and future ) of the borrower by way of an equitable mortgage, in favour of" Security trustee 1 " for the benefit of the respective lenders and

(2) A second ranking pari passu charge over the entire current assets on the borrower in favour of "Security trustee 2" for the benefit of the respective lenders and

(3) Unconditional and irrevocable on demand personal guarantee from each promoter in the form acceptable to the lenders and the security Trustee 1 in the favour of the " Security Trustee 1" for benefit of the respective lenders and

(4) Unconditional and irrevocable on the demand corporate guarantee from each of the affiliate companies in the form acceptable to the lenders and the "Security Trustee 1" in the favour of the "Security Trustee 1" for the benefit of the respective lenders and

(5)(i) Pledge of 100% Promoters Group Shareholding in the borrower (50.58% of the fully diluted equity share capital of the borrower as on the effective date), free of all encumbrances, including additional share acquired by the promoters on infusion of equity in the Borrower in accordance with the terms of this Agreements, and the CDR Package in the favour of the "Security Trustee 1" and Security Trustee 2" for the benefit of all respective lenders.

(ii) ECB Rs. 218.08 Crores ( P.Y. Rs. 197.36 Crores) from Bank of Baroda. and DEG. Rupee term loan from IFCI Rs. 15.94 Crores ( P.Y. Rs. 16.42 Crores ), L&T Rs. 19.37 Crores ( P.Y. Rs.19.37 Crores ), M&M Rs. 24.50 Crores (P.Y. Rs. 24.50 Crores ) are secured by first ranking pari passu equitable charge on the moveable and immovable properties admeasuring 68 bighas & 13 biswas situated at Village Behra & Village Bhagwanpura, Plot No. E-5, Industrial Focal Point, Phase II , Mohali in the State of Punjab together with all buildings & structures, Plant & Machinery thereon and personal guarantees of promoter directors.

(iii) Vehicle loans Rs 1.07 Crores (P.Y. Rs. 2.10 Crores) from HDFC, ICICI and NBFC are secured against hypothecation of the respective vehicles under the hire purchase agreement.

(iv) Other term loan & advances Rs. 6.11 Crores (P.Y. Rs. 6.29 Crores) includes ICICI Home Loan and Indiabulls Housing Finance Ltd. loan in the name of Mr. N.R. Munjal, and is secured against the office premises in Mumbai and another Term loan from Technology Development Board is secured by way of charges on movable fixed assets & personal guarantee of Shri. N.R. Munjal.

Fixed Deposits Restructuring

Under the provisions of the Companies Act, 1956, the Company has got its Fixed Deposit Scheme restructured vide its order No. C.P 27/01/2013 dated 30.09.2013 through Hon''ble Company Law Board. The Company has been granted extension of time in repayment of these deposits. Few of the FD holders have however approached the courts for the repayment of their Fixed Deposits.

Fixed Assets

i) Company has revalued its assets comprising of Land, Plant & Machinery of Derabassi Unit and Jammu plant by the approved External Valuer to reflect the market value and accordingly the appreciation amounting to Rs.10138.73, Rs. 14330.37 & Rs. 14231.00 lacs (excluding land and Plant and machinery of Jammu) respectively have been credited to Capital Reserve Account (Re-valuation Reserve A/c) as on 31.03.2007, 08.06.2011 & 30.06.2012 Depreciation amounting to Rs. 1549.12 Lac (Rs. 1391.95 Lac) has been provided during the year and the same is reduced from Revaluation Reserve.

ii) Office Buildings includes Mumbai Office Buildings Rs.700.20 Lacs (Previous Year Rs. 266.42 Lacs) Lac purchased in Mumbai in the name of the Managing Director of the Company out of which one building amounting to Rs. 41.46 Lacs is mortgaged with ICICI Bank. The Company has entered into an "agreement to sell" and has taken GPA from the Managing Director. The property is yet to be registered in the name of Company.

iii) Freehold land includes Rs.13.79 crores and Flats Rs. 14.58 Crore for which agreement to sell and GPA in favour of the company has been executed and the same have been put to use. The Freehold Land & Flats are yet to be registered /transferred in the name of the Company.

iv) Capital Work in Progress includes: Capital advances Rs. 66.76 Lacs (Previous Year Rs. 69.12 Lacs). Expenses pending capitalisation Rs. 2375.79 Lacs (Previous Year Rs. 1266.31 lacs) .

v) The interest which has been capitalised in conformity with AS - 16.

MODE OF VALUATION OF INVENTORY

Inventories are valued as under:-

Stores and spares are valued at cost.

During this year there is change in Accounting Policy, Closing stock of Raw material of Menthol is valued At market Price instead of Cost.

Work in progress is valued at estimated cost basis or net realisable value which ever is less.

Finished goods are valued at cost or net realisable value whichever is less and is inclusive of excise duty and all expenditure directly attributable to production.

EMPLOYEE BENEFITS EXPENSES

(a) TATA CAPITAL LIMITED

The interest on Non Convertible Debentures has been accounted on provisional basis @ 10.50% instead of 14% (sanctioned rate ). Also the Tata Capital Limited is charging 20% rate of interest including penal interest.

(b) DEG LOAN

During the year bank has levied the charges amounting to $ 64701.13 for the late repayment of dues to the bank. The company has paid $ 16954 to the bank and the balance has not been accounted and paid.

(c) TDB LOAN

As per sanction, company has to pay the royalty at the rate of 0.5% of the annual sales of the products produced with the board''s assistance. The company has not accounted for and not paid the same.

CONTINGENT LIABILITIES NOT PROVIDED FOR: (Rs. in lacs) As at 31.03.2014 As at 31.03.2013

a. Letter of Credit against purchase 18779.43 17248.00 of raw material:

b. Bank Guarantees 24.61 38.95

b. Export obligation in respect of 283.35 169.88 custom duty:

c. Contingent Liabilities in respect Unascertained Unascertained of unassessed/assessed (Pending in Appeal) cases of Income Tax, Excise Duty, Sales Tax and Service Tax.

d. Corporate guarantees given on behalf of (To the extent Utilized)

Essix Biosciences Ltd 2578.07 4092.38

Halcyon Life Sciences Pvt Ltd 3923.97 3761.84

Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs. 522.97 Lacs (Previous year Rs. 1240.20 lacs )

In the opinion of the Board, the Current Assets, Loans & Advances shown in the Balance Sheet have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

Other expenses under head administrative expenses includes Rs. 83,573 (Previous Year Rs. 86,000) paid to directors as sitting fee.

In accordance with Accounting Standard 18, ''Related Party Disclosures'', issued by the Institute of Chartered Accountants of India, the Company has compiled the following information :

a. List of related parties and their relationship

Associate Companies Ind Swift Limited

Essix Biosciences Limited

Halcyon Life Sciences Pvt Ltd.

Fortune(India) Constructions Ltd.

Mansa Print & Publishers Limited

Swift Fundamental Research & Education Society

3M Advertisers & Publishers Ltd.

Punjab Renewable Energy Pvt Ltd.

Hakim Farayand Chemi Co. (Iran)

Subsidiary Companies Ind Swift Laboratories Inc. USA

Meteoric Life Science Pte Ltd., Singapore

Ind-Swift Middle East FZE (UAE)

Other companies in which one Mohali Green Environment Private Limited of the Director of the Company is a Director Saidpura Envirotech Private Limited

Consummate Pharmaceuticals Private Limited

Nimbua Green Field (Punjab) Limited

Dashmesh Medicare Private Limited

AKJ Portfolios Pvt. Ltd.

NRM Portfolios Pvt. Ltd.

GM Portfolios Pvt. Ltd.

VRM Portfolios Pvt Ltd.

VKM Portfolios Pvt Ltd.

SRM Portfolios Pvt Ltd.

Key Management Sh. N.R. Munjal, Vice-Chairman cum Personnel/Directors Managing Director

Sh. Himanshu Jain, Jt. Managing Director

Mr. Rishav Mehta, Executive Director

Mr. N.K. Bansal, Chief Financial Officer

Mr. Pardeep Verma, GM-Corp. Affairs & CS

Others entities in which Integral Buildcon Private Limited Relatives of KMP have control or significant Vibrant Agro Industries Limited influence B.M. Cosmed Private Limited

KMB Hospitality Services Private Limited

Total amount of secured Term Loans installments payable during twelve months following 31.03.2014 are Rs. 6778.01 Lacs ( Previous year Rs. 6173.83 Lacs)

The balance in the parties accounts whether in debit or credit are subject to confirmation, reconciliation and adjustment. The impact of the same on the accounts at the year end is unascertainable.

In compliance with AS-15, during the year, company has provided Rs.10.62 Lacs (Rs. 40.27 Lacs) as provision towards the Company Gratuity Policy maintained with LIC after the actuarial valuation done by the LIC.

Trade discount worth Rs. 4.13 crore to M/s Immpecable Laboratories Pvt Ltd and Rs. 24.05 Crore to M/s Pivotal Laboratories Pvt Ltd. have been awarded in light of responses received from them against the legal notices and assurance of clearance of all outstanding amount with in a prescribed time limit provided trade discount as agreed are put in place. Rs 6 Crore has been already received from Pivotal Laboratories Pvt Ltd and Rs 5 Crore has been received from Immpecable Laboratories Pvt Ltd following this discount.

(i) The company entered into Forward Exchange Contracts being derivative instruments, which are not intended for trading or speculative purposes, but for hedge purposes, to establish the amount of reporting currency required or available at the settlement date.

SEGMENT REPORTING

The Company operates only in one business segment viz. Bulk Drugs & Pharmaceuticals. However the figures in Segment Reporting is based on geographical location of its customers.

NOTES:

1. Geographical Segments:

The segment reporting is performed on the basis of the geographical location of customers. The management views the Indian market and export markets as distinct geographical segments.

2. Segment assets & liabilities.

Segment assets consists of debtors & the segment liabilities consists of creditors and accrued liabilities.

3 The figures in brackets are in respect of previous year.

Company has not received intimation from supplier regarding the status under Micro, Small and Medium Enterprises Development Act 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with the interest paid/payable as required under the said Act have not been given.

The outstanding dues of small scale industrial undertakings have been determined to the extent such parties have been identified on the basis of information available with the company. The parties to whom the Company owes sum outstanding for more than 30 days as at the balance sheet date are :

(1) Euro Containers (2) Ammonia Supply Co. (3) Time Technoplast Ltd. (4) Delta Finochem Pvt Ltd

During the year, the Company has incurred foreign currency revenue expenditure of RMB 380374.41 on its China Office and GBP 4077.97 on its U.K office Operation. Such Foreign Currency Expenditure has been translated in Indian Currency @ One RMB equivalent to Rs. 9.56 and One GBP equivalent to Rs. 96.23 at the year end on the basis of average exchange rate during the year computed as per cross currency reference rates published by RBI.

Loans & Advances include Rs. 14.89 lacs (P.Y. Rs. 14.59 lacs) due from Company Secretary. Maximum amount due during the year is Rs. 15.16 Lacs (P.Y. Rs. 14.86 Lacs)

(a) The company has not provided quantitive information under clause 2(5) in view of the exemption granted by Central Government vide their notification no. 301 dated 08.02.2011.

Unpaid dividend as on 31.03.2014 is Rs. 17.28 Lacs (Previous year Rs. 25.96 lacs). During the financial year, an amount of Rs. 8.64 Lacs transferred to Central Government account (IEPF) on account of unpaid dividend for the financial year 2005-06.

Capital WIP includes expenses incurred on "Product Technology Development Expenditure "amounting to Rs. 1849.07 Lacs (Previous Year Rs. 5775.68 Lacs).

The expenditure incurred has been capitalised and carried in Capital Work in Process. The Management believe that it is in the nature of development expenditure and meets the capitalisation criteria set out in AS-26 on Intangible Assets issued by ICAO.

The management believes that these products would be commercially viable & there is no reason to believe that there is any uncertainty that may lead to not securing registration for the products from regulating authorities in US and/or Europe.

CORPORATE DEBT RESTRUCTURING

The FITL has been created as per the sanction of the respective banks. But the FITL created is subject to reconciliation with the banks as per the Master Restructuring Agreement.

The cumulative total of the recompense amount for the period up to 31.03.2014 is Rs. 58.30 crores as per the approval dated November 9, 2012 of the CDR EG.

FIXED DEPOSIT RESTRUCTURING

The company has not maintained the Liquid Assets (i.e. 15% of Deposits maturing next financial year) as a statutory requirement under the Companies (Acceptance of Deposit) Rules, 2014.

For the relaxation of the above statutory requirement, company has filed the application to the Central Government (Ministry of Company Affairs) which is still pending

During the year company has received a subsidy amounting to Rs. 32.91 Lacs on interest cost and the same has been net off with interest cost.

The Labour Welfare Fund in respect of Chandigarh Unit has not been paid as per Punjab Labour Welfare Fund Act, 1965. Note No. XLIV Previous year figures have been regrouped, rearranged wherever considered necessary for comparison.


Mar 31, 2013

Note No. I Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs 1240.20 Lacs (Previous yearRs. 7650.69 lacs)

Note No.II In the opinion of the Board, the Current Assets, Loans & Advances shown in the Balance Sheet have a value onrealisation in the ordinary course of business at least equal to the amount at which they are stated.

Note No.III Other expenses under head admnistrative expenses includes Rs. 86,000 (Previous Year Rs.82000) paid to directors as sitting fee.

Note No.IV In accordance with Accounting Standard 18, ''Related Party Disclosures'', issued by the Institute of Chartered Accountants of India, the Company has compiled the following information :

a. List of related parties and their relationship

Associates Ind Swift Limited

Essix Biosciences Limited

Halcyon Life Sciences Pvt. Ltd.

Fortune (India) Constructions Ltd.

Mansa Print & Publishers Limited

Swift Fundamental Research & Education Society

3M Advertisers & Publishers Ltd.

Punjab Renewable Energy Pvt. Ltd.

B.M. Cosmed Pvt. Ltd.

Hackim Farayand Chemi Co. (Iran)

AKJ Portfolios Pvt. Ltd.

NRM Portfolios Pvt. Ltd.

GM Portfolios Pvt. Ltd.

VRM Portfolios Pvt. Ltd.

VKM Portfolios Pvt. Ltd.

SRM Portfolios Pvt. Ltd.

Key Management personnel-Directors Mr. N.R.Munjal

Mr. Himanshu Jain Mr. Rishav Mehta

Subsidiary Ind Swift Laboratories Inc. USA

Meteoric Life Sciences Pte Ltd., Singapore Ind-Swift Middle East FZE (UAE)

Note No. V Total amount of secured Term Loans installments payable during twelve months following 31.03.2013 are Rs. 6173.83 Lacs (Previous year Rs. 15899.43 Lacs)

Note No. VI The balance in the parties accounts whether in debit or credit are subject to confirmation,reconciliation and adjustment. The impact of the same on the accounts at the year end is unascertainable.

Note No. VII In compliance with AS-15, during the year, company has provided Rs. 40.27 Lacs (Rs.12.03 Lacs) as provision towards the Company Gratuity Policy maintained with LIC after the actuarial valuation done by the LIC.

Note No. VIII SEGMENT REPORTING

The Company operatesonly in onebus in esssegmentviz. Bulk Drugs & Pharmaceuticals . However the figures in Segment Reporting is based on geographical location of its customers.

NOTES:

1 Geographical Segments: The segment reporting is performed on the basis of the geographical location of customers. The management views the indian market and export markets as distinct geographical segments.

2 Segment assets & liabilities: Segment assets consists of debtors & the segment liabilities consists of creditors and accrued liabilities.

3 The figures in brackets are in respect of previous year.

Note No. IX The company entered into Forward Exchange Contracts being derivative instruments, which are not intended for trading or speculative purposes, but for hedge purposes, to establish the amount of reporting currency required or available at the settlement date.

Note No. X Company has not received intimation from supplier regarding the status under Micro, Small and Medium Enterprises Development Act 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with the interest paid/payable as required under the said Act have not been given.

Note No. XI The outstanding dues of small scale industrial undertakings have been determined to the extent such parties have been identified on the basis of information available with the company.The parties to whom the Company owes sum outstanding for more than 30 days as at the balance sheet date are: (1) Euro Containers (2) Ammonia Supply Co.(3) Time technoplast Ltd.(4) Delta finochem Pvt Ltd

Note No. XII The Corporate guarantee amounting to Rs. 100287 lacs to be waived as stipulated by CDR-EG on associate concern Ind Swift Ltd. as per thedecision taken inmeetingheldon26thApril, 2013.

Note No. XIII As per best estimate of the management,no provision is required to be made as per Accounting Standard (AS) 29 as notified by Companies(Accounting Standards)Rules 2006, in respect of any present obligation as a result of a past event that could lead to a probable outflow of resources,which would be required to settle the obligation.

Note No. XIV During the year, the Company has incurred foreign currency revenue expenditure of RMB 466099.67 on its China Office and GBP 128041.06 on its U.K office Operation. Such Foreign Currency Expenditure has been translated in Indian Currency @ One RMB equivalent to Rs. 6.33 and One GBP equivalent to Rs. 86.0355 at the year end on the basis of average exchange rate during the year computed as per cross currency reference rates published by RBI.

Note No. XV Loans & Advances include Rs.14.59 lacs (PY Rs.14.86 lacs) due from Company Secretary. Maximum amount due during the year is Rs. 14.86 Lacs(PY. Rs.14.87 Lacs)

Note No. XVI Unpaid dividend as on 31.03.2013 is Rs. 25.96 lacs (Previous year Rs 31.57 lacs).

NoteNo. XVII Unpaid Matured Deposits and Interest outstanding as on 31.03.2013 is Rs. 461.53 lacs (Previous Year Rs. 223.06 lacs).

NoteNo. XVIII Capital WIP includes expenses incurred on " Product Technology Development Expenditure " amounting to Rs. 5859.28 Lacs (Previous Year Rs. 13213.94 Lacs) .

The expenditure incurred has been capitalised and carried in Capital Work in Process .The Management beleive that it is in the nature of development expenditure and meets the capitalisation cretiria set out in AS-26 on Intangible Assets issued by ICAI.

The management believes that these products would be commercially viable & there is no reason to believe that there is any uncertainity that may lead to not securing registration for the products from regulating authorities in US and/or Europe.

NoteNo.XIX The insurance claim lodged with The United India Insurance company Ltd. In regards to fire occurred on the premises of M/s Dashmesh Medicare Pvt. Ltd. on 30th April,2012 is still pending though the site has beenreleased to M/s Dashmesh Medicare Pvt. Ltd. by Punjab Administration Control. The losses at this stage could not be quantified as on 31st March, 2013.

Note No. XX During the year ended 31.03.2013 the company has reversed consultancy income of Rs. 10 crores booked in previous year due to non- execution of contract by the other party.

NoteNo.XXI

CORPORATE DEBT RESTRUCTURING

During the year the company had filed its proposal for corporate debt restructuring (CDR) to re-structure its existing debt obligations on account of the following major reasons:

1) Delayed returns in Investment in product development.

2) Huge investment in Fixed assers towards capacity expansion which has not been in line with the company''s expectation due to increased gestation period for returnon product development investments.

3) Rising interest costs and unfavourable capital market conditions.

4) Lower margin on API''s saleonaccountofincreaseinrawmaterialcost.

5) Fire incident at Plant of associate concern on loan license basis forcing the company to procure raw material from China at higher cost. The above reasons resulting in cash flows from operations available for working capital were not sufficient to meet the debt repayment obligation at present and as envisaged in future.The company received the final letter of Approval dated 9th Nov, 2012 from the Corporate Debt Restructuring Empowered Group (CDR-EG) to re-structure existing debt obligations, including interest and other terms (hereafter referred to as the CDR scheme). The company has executed Master Restructuring Agreement/other definitive documents with the bankers covered under the CDR on 27th Dec, 2012.

During the year under review, the promoters have infused their contribution amounting to Rs 9.31 crores which is to be converted into equity shares persuant to its approved CDR package against various liabilities of the company to banks.Till the conversion to equity shares, the amount is treated as share application money as on 31.03.2013.

As per the above package, the rescheduling of repayment of the balance debt to CDR lenders of the company which are part of the ongoing corporate debt restructuring process, repayable over the period of 9 years and with a moratorium of one year and nine months, the repayment of whichbegins from 1st April, 2014 onwards. Moratorium in the payment of interest for the period of one year and nine months, requiring the payment of interest to begin from 1st April 2014, and an overall reduction in the interest rate with an effective yield of 10.50% over the term of the facility.

Also the company is under negotiation with its Non-CDR members i.e. Indusind Bank, IFCI Ltd.and DEG Bank for restructuring of the facilties sanctioned by them which at present is under default as stated hereunder:

Indusind Bank since 31-july-2012 amounting to Rs. 99.51 lacs(Disputed),IFCI Since 30-sep-12 amounting to Rs. 1347.66 Lacs and DEG since 31-Dec-12 amounting to Rs. 738.14 lacs.

The FITL has been created as per the sanction of the respective banks. But the FITL created is subject to reconcilliation with the banks as per the Master Restructuring Agreement.


Mar 31, 2012

1. i) Bank borrowings for working capital Rs. 228.54 crores (P.Y. Rs. 169.31 crores) are secured by a Pari Passu, first charge by way of hypothecation of the Company's current assets, namely, Stocks of Raw Materials, Semi Finished, Finished Goods, Stores & Spares not relating to plant and Machinery (Consumable Stores & Spares), Bills Receivable and Book Debts and all other movables of the Company both present and future excluding such movables as may be permitted by the said Banks from time to time. The said facility is further secured by way of pari passu second charge on the Company's immovable and movable properties (other than current assets) and personal Guarantees of Mr. S.R.Mehta, Dr. V.R. Mehta, Mr. N.R. Munjal, Dr. G. Munjal, Mr. Himanshu Jain & Mr. Rishav Mehta.

ii) Term Loan Rs. 602.07 crores (P.Y. Rs. 530.51 crores) from State Bank of India, Central Bank of India, State Bank of Patiala, Bank of India, Catholic Syrian Bank, Export Import Bank of India, IDBI Bank, ICICI Bank Limited ,State Bank of Indore, State Bank of Hyderabad, IFCI, State Bank of Travencore, Allahabad Bank, Bank of Baroda & DEG- Deutsche Investitions – Und Entwicklungsgesellschaft Mbh are secured by first pari passu charge by way of Joint Equitable Mortgage by deposit of title deeds of the Company's immovable properties situated at Derabassi Punjab & Plot No E-V, industrial Focal Point, Mohali and second charge by way of hypothecation of all its movable assets, including machinery, machinery spares , tools and accessories present and future, subject to the charges created / to be created, in favour of the company banker. These loans are further secured by the personal guarantee of Promoter Directors.

iii) Other Term loan & advances Rs.30.58 crores (P.Y. Rs.16.07 crores) includes Vehicle loans Rs 4.06 Crores(P.Y. Rs.2.18 crores) are secured against hypothecation of the vehicles under the hire purchase agreement & ICICI Home Loan Rs. 0.19 crores (P.Y. Rs.0.21crores ) is in the name of Mr. N.R.Munjal, and is secured against the office premises in Mumbai & Term Loans from Technology Development Board Rs. 4.45 crores (P.Y. Rs.5.56 crores) is secured by way of charges on immovable fixed assets & personal guarantee of Shri N.R.Munjal & Term Loans from L&T Finance Rs. 21.87 Crores (P.Y. Rs.8.13 crores) secured by the personal guarantee of Promoter Directors.

Note No. XIX

Contingent liabilities not provided for: (Rs.in lacs)

2011-12 2010-11 a. Letter of Credit against purchase of raw material 22382 10528.58

b. Bank Guarantees 47.11 5814.58

b. Export obligation in respect of cutom duty 279.27 177.18

c. Contingent Liabilities in respect of unassessed cases of Unascertained Unascertained Income Tax, Excise Duty, Sales Tax and Service Tax.

d. Corporate guarantees given on behalf of (To the extent Utilized)

Essix Biosciences Ltd 4538.86 3117.55

Halcyon Life Science Pvt Ltd 7246.16 4504.36

Note No. I

Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs.7650.69 lacs (Previous year Rs. 5002.32 Lacs)

Note No. II

In the opinion of the Board, the Current Assets, Loans & Advances shown in the Balance Sheet have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

Note No III

Other expenses under head administrative expenses includes Rs. 82,000 (Previous Year Rs.81000) paid to directors as sitting fee.

Note No. IV

In accordance with Accounting Standard 18, 'Relate Company has compiled the following information :

a. List of related parties and their relationship

Associates

Ind Swift Limited

Essix Biosciences Limited

Halcyon Life Sciences Pvt Ltd.

Fortune (India) Constructions Ltd.

Mansa Print & Publishers Limited

Swift Fundamental Research & Education Society

3M Advertisers & Publishers Ltd.

Punjab Renewable Energy Pvt Ltd.

AKJ Portfolios Pvt. Ltd.

NRM Portfolios Pvt. Ltd

GM Portfolios Pvt. Ltd.

VRM Portfolios Pvt Ltd.

VKM Portfolios Ltd.

SRM Portfolios Pvt Ltd.

Key Management personnel-Directors

Mr. N.R.Munjal Mr.Himanshu Jain Mr. Rishav Mehta

Subsidiary

Ind Swift Laboratories Inc. USA Meteoric Life Sciences Pte Ltd. Ind-Swift Middle East FZE (UAE)

Joint Venture Hackim Farayand Chemi Co.(Iran)

Note No. V

Total amount of secured Term Loans installments payable during twelve months following 31.03.2012 are Rs. 15899.43 Lacs ( Previous year Rs. 12912.55 Lacs)

Note No. VI

The balance in the parties accounts whether in debit or credit are subject to confirmation, reconciliation and adjustment. The impact of the same

Note No. VII

As per best estimate of the management, no provision is required to be made as per Accounting Standard (AS) 29 as notified by Companies(Accounting Standards)Rules 2006, in respect of any present obligations as a result of a past event that could lead to a probable outflow of resources, which would be required to settle the obligation.

Note No. VIII

segment Reporting

The Company operates only in one business segment viz. Bulk Drugs & Pharmaceuticals. However the figures in Segment Reporting is based on geographical location of its customers.

Notes :

1. Geographical segments

The segment reporting is performed on the basis of the geographical location of customers. The management views the indian market and export markets as distinct geographical segments.

2. segment assets & liabilities

Segment assets consists of debtors & the segment liabilities consists of creditors and accrued liabilities.

3. The figures in brackets are in respect of previous year.

Note No. IX

The outstanding dues of small scale industrial undertakings have been determined to the extent such parties have been identified on the basis of information available with the company. The parties to whom the Company owes sum outstanding for more than 30 days as at the balance sheet date are: (1) Euro Containers (2) Ammonia Supply Co. (3) Time Technoplast Ltd. (4) Delta Finochem Pvt Ltd.

Note No. X

Company has not received intimation from supplier regarding the status under Micro, Small and Medium Enterprises Development Act 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with the interest paid/payable as required under the said Act have not been given.

Note No. XI

Obligations/Entitlements on account of advance license not recognised at the time of export during the year amounts to Rs.1168.76 Lac (Previous year Rs.741.49 Lac). The above treatment has no impact on the Profit & loss account.

Note No. XII

The company entered into Forward Exchange Contracts being derivative instruments, which are not intended for trading or speculative purposes, but for hedge purposes, to establish the amount of reporting currency required or available at the settlement date.

Note No. XIII

In compliance with AS-15, during the year, company has provided Rs. 12.03 Lacs (Rs. 31.28) as provision towards the Company Gratuity Policy maintained with LIC after the actuarial valuation done by the LIC.

Note No. XIV

During the year, the Company has incurred foreign currency revenue expenditure of RMB 330329.42 on its China Office and GBP 154088.27 on its U.K office Operation. Such Foreign Currency Expenditure has been translated in Indian Currency @ One RMB equivalent to Rs.6.50. and One GBP equivalent to Rs. 76.40 at the year end on the basis of average exchange rate during the year computed as per cross currency reference rates published by RBI.

Note No. XV

Capital Reserve includes Rs. 16.76 Lacs being Subsidy for DG Set which is net of Rs. 1.21 Lacs amortised and treated as income during the year.

Note No. XVI

Loans & Advances include Rs. 14.86 lacs (Previous Year 4.66 lacs) due from Company Secretary. Maximum amount due during the year is Rs. 14.87 Lacs (Previous Year 4.66 Lacs)

Note No. XVII

Miscellaneous Income of Rs. 145041000 is on account of surplus as difference of price on cancellation of contracts due to non supply of CMO by various parties during the year and on account of any possible error in the records .The said surplus has been accounted for on the basis of discloser of Income made by the company during action u/s 132 of the income tax Act, 1961.

Note No. XVIII

Unpaid dividend as on 31.03.2012 is Rs. 31.57 lacs ( Previous year Rs. 32 lacs ). An unclaimed dividend ( 2003-04 ) of Rs. 3.39 lacs has been transferred to Investor Education Protection Fund during the year.

Note No. XIX

Unpaid Matured Deposits and Interest outstanding as on 31.03.2012 is Rs. 223.06 lacs ( Previous Year Rs. 223.45 lacs ).

Note No. XX

Capital WIP includes expenses incurred on " Product Technology Development Expenditure " amounting to Rs. 13213.94 Lacs ( Previous Year 15463.04 Lacs).

Note No. XXI

During the curent year a major fre occurred on the premises of M/s Dashmesh Medicare Pvt. Ltd. on 30th April,2012. The ISLL is getting Job work/ Loan licence for one of its main product from Dashmesh Medicare Pvt. Ltd. on continuous basis. The impact of the loss due to material lying with them as on 31.03.2012 could not be quantified as the site has not been released to M/s Dashmesh Medicare Pvt. Ltd. By Punjab Administration Control.

The expenditure incurred has been capitalised and carried in Capital Work in Process .The Management believe that it is in the nature of development expenditure and meets the capitalisation cretiria set out in AS-26 on Intangible Assets issued by ICAI. The management believes that these products would be commercially viable & there is no reason to believe that there is any uncertainty that may lead to not securing registration for the products from regulating authorities in US and/or Europe.

Note No. XXII

Previous year figures have been regrouped, rearranged wherever considered necessary for comparison.


Mar 31, 2011

1 Contingent liabilities not provided for:

(Rs.in lacs)

2010-11 2009-10

a. Letter of Credit against purchase of raw material: 10528.58 12493.41

b. Bank Guarantees 5814.58 31.35

c. Export obligation in respect of custom duty: 177.18 85.49

d. Contingent Liabilties in respect of unassessed cases of Amt Unascertained Amt Unascertained Income Tax, Excise Duty, Sales Tax and Service Tax.

e. Corporate guarantees given on behalf of (to the extent utilized)

Ind Swift Ltd 4166.00 5000.00

Essix Biosciences Ltd 3117.55 1167.00

Halcyon Life Science Private Limited 4504.36 2776.31

2 Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs.5002.32 lacs (Previous year Rs.1448.90 Lacs)

3 In the opinion of the Board, the Current Assets, Loans & Advances shown in the Balance Sheet have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

4 Company has revalued its assets Comprising of Land, Building, Machinery of Derabassi Unit by the approved External Valuer to reflect the market value and accordingly the appreciation amounting to Rs.10138.73 Lac have been credited to Capital Reserve Account (Re-valuation Reserve A/c) as on 31.03.2007.

Depreciation amounting to Rs.367.35 Lac (Rs.367.35 Lac) has been provided during the year & the same is reduced from Revaluation Reserve.

5 Other expenses under head administrative expenses includes Rs.81,000 (Previous Year Rs.47000) paid to directors as sitting fee.

6 In accordance with Accounting Standard 18, 'Related Party Disclosures' , issued by the Institute of Chartered Accountants of India, the Company has compiled the following information : a. List of related parties and their relationship

Associates Ind Swift Limited

Essix Biosciences Limited

Halcyon Life Science Pvt Ltd.

Fortune (India) Constructions Ltd.

Mansa Print & Publishers Limited

Swift Fundamental Research & Education Society

Ind swift communications (P) Ltd.

Punjab Renewable Energy Pvt Ltd.

AKJ Portfolio Pvt. Ltd.

NRM Portfolio Pvt. Ltd

GM Portfolio Pvt. Ltd.

VRM Portfolio Pvt Ltd.

VKM Portfolio Ltd.

SRM Portfolio Pvt Ltd.

Key Management personnel-Directors Mr. N.R. Munjal

Mr. Himahshu Jain

Mr. Rishav Mehta Subsidiary Ind Swift Laboratories Inc. USA

Meteoric Life Sciencec Pte. Ltd

Ind Swift Middle East FZE(UAE)

Hakim farayand Chemi Co (Iran)

7 The balance in the parties accounts whether in debit or credit are subject to confirmation,reconciliation and adjustment. The impact of the same on the accounts at the year end is unascertainable.

8 Fixed deposits with banks of Rs.3232.85 Lacs (Previous year Rs.1435.36 Lacs) are pledged with banks as margin money for working capitial facilities.

9 As per best estimate of the management,no provision is required to be made as per Accounting Standard (AS) 29 as notified by Companies(Accounting Standards) Rules 2006, in respect of any present obligations as a result of a past event that could lead to a probable outflow of resources,which would be required to settle the obligations.

10 Total amount of secured Term Loans installments payable during twelve months following 31-03-2011 are Rs.12912.55 Lacs (Previous year Rs.10207.54 Lacs)

11 Excess provision on commision on exports in earlier year amounting to Rs.306.77 lacs (Previous Year Rs.299.70 lacs) is considered as extraordianry item.

12 The outstanding dues of small scale industrial undertakings have been determined to the extent such parties have been identified on the basis of information available with the compnay. The parties to whom the Company owes sum outstanding for more than 30 days as at the balance sheet date are: (1) Ammonia Supply Co. (2) Time Technoplast Ltd

13 Company has not received intimation from supplier regarding the status under Micro, Small and Medium Enterprises Development Act 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with the interest paid/payable as required under the said Act have not been given.

14 The Compnay has ESOP scheme called "ESOS 2006". During the year, Company has granted no Employee Stock Option.(Previous Year Nil) Deferred Employee Compensation Cost is being amortised over a period of three years, being the vesting period and on proportionate basis. Accordingly a sum of Rs.21.59 Lac has been amortised during the year.

During the year the employees have opted 185660 options which were granted to them in earlier year & the same has been allotted to them in the form of equity shares

15 Obligations/Entitlements on account of advance licenses not recognised at the time of export during the year amounts to Rs.741.49 Lac (Previous year Rs.357.78 Lac).

The above treatment has no impact on the profit & loss account.

16 i) Office Buildings includes Mumabi Office Buildings Rs.266.42 (Previous Year Rs.41.46 Lcs) Lac purchased in Mumbai in the name of the Managing Director of the Company out of which one building amounting to Rs.41.46 Lacs is mortgaged with ICICI Bank. The Company has entered into an "agreement to sell" and has taken GPA from the Managing Director.

The property is yet to be registered in the name of Company.

ii) Freehold land includes Rs.13.79 crores and Flats Rs.14.58 Crore for which agreement to sell and GPA in favour of the company has been executed and the same have been put to use. The Freehold Land & Flats are yet to be registered /transferred in the name of the Company.

17 Capital Work in Progress includes:

a) Capital advances Rs.11303.08 Lacs (Previous Year; Rs.4023.53 Lacs).

27 The company entered into Forward Exchange Contracts which are not intended for trading or speculative purposes, but for hedge purposes, to establish the amount of reporting currency required or available at the settlement date.

18 In compliance with AS-28, during the year, company has identified fixed assets amounting to Rs.459.40 Lacs (Previous Year Rs.899.54 Lac) for impairement whose accumulated depreciation was 133.84 Lacs (Previous Year 212.39 Lac). The Net Realisable Value of such fixed assets has been estimated at Rs.84.21 lacs (Previous Year Rs.185.34 Lacs). Accordingly, Impairment Loss of Rs.241.35 Lacs Previous Year 501.81 Lacs) has been charged to Profit & Loss Account during the year.

19 In compliance with AS-15, during the year, company has provided Rs.31.28 Lacs (Previous Year Rs.11.93 Lacs) as provision towards the Company Gratuity Policy maintained with LIC after the actuarial valuation done by the LIC.

20 Capital Reserve includesRs. 17.97 Lacs being Subsidy for DG Set which is net of Rs.1.21 Lacs amortised and treated as income during the year.

21 Loans & Advances include Rs.4.66 lacs (Previous Year 4.33 lacs) due from Company Secretary. Maximum amount due during the year is Rs.5.14 Lacs (Previous Year 4.33 Lacs)

22 The Company received Rs.15.00 crore against 14% Non-convertible Debenturs on 28.05.2009 which are redeemable in 13 quarterly installments with effect from febuary 2010. Balance outstanding as on 31.03.2011 is Rs.9.25 Crore (Previous Year Rs.13.85 crore)

23 Previous year figures have been regrouped, rearranged wherever considered necessary for comparison.

24 Schedule I to XV form an integeral part of Balance Sheet and Profit & Loss Account and have been duly authenticated.


Mar 31, 2010

1 Contingent liabilities not provided for: (Rs. in lacs)

2009-10 2008-09

a. Letter of Credit against purchase of raw material: 12524.76 13125.63

b. Export obligation in respect of custom duty : 85.49 200.93

c. Contingent Liabilties in respect of unassessed cases of Unascert- ained Unascer- tained Income Tax, Excise Duty, Sales Tax and Service Tax.

d. Corporate guarantees given on behalf of ( To the extent Utilized) Ind Swift Ltd 5000.00 NIL

Essix Biosciences Ltd 1167.00 656.00

Kiran Flour Mills Industries Pvt Ltd 2776.31 2870.24

2 Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs 1448.90 lacs (Previous year Rs. 675.87 Lacs)

3 In the opinion of the Board, the Current Assets, Loans & Advances shown in the Balance Sheet have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

4 Company has revalued its assets Comprising of Land, Building, Machinery of Derabassi Unit by the approved External Valuer to reflect the market value and accordingly the appreciation amounting to Rs.10138.73 Lac have been credited to Capital Reserve Account (Re-valuation Reserve A/c) as on 31.03.2007.

Depreciation amounting to Rs. 367.35 Lac (Rs 367.35 Lac) has been provided during the year & the same is reduced from Revaluation Reserve.

5 Other expenses under head admnistrative expenses includes Rs. 47,000 (Previous Year Rs. 37,000) paid to directors as sitting fee.

6 In accordance with Accounting Standard 18, Related Party Disclosures , issued by the Institute of Chartered Accountants of India, the Company has compiled the following information : a. List of related parties and their relationship

Associates Ind Swift Limited

Essix Biosciences Limited

Ind swift communications (P) ltd

Ind Swift Land Ltd

Hakim Farayand Chemi Co (Iran)

Kiran Flour Mills Industries Pvt Ltd.

Mansa print & Publishers Limited

Swift Fundamental Research & Education Society Key Management personnel-Directors Mr. N.R.Munjal

Mr. Himanshu Jain

Mr. V.K. Mehta* Subsidiary Ind Swift Laboratories Inc. USA

Ind Swift Laboratories Pte. Ltd. (Singapore)**

Ind-Swift Middle East FZE (UAE)**

7 The balance in the parties accounts whether in debit or credit are subject to confirmation,reconciliation and adjustment. The impact of the same on the accounts at the year end is unascertainable .

8 Fixed deposits with banks of Rs. 1435.36 Lacs (Previous year Rs.1320.08 Lacs) are pledged with banks as margin money for working capitial facilities.

9 As per best estimate of the management,no provision is required to be made as per Accounting Standard (AS) 29 as notified by Companies(Accounting Standards) Rules 2006, in respect of any present obligationas as a result of a past event that could lead to a probable outflow of resources, which would be required to settle the obligation.

10 The company operates only in one business segment viz. Bulk Drugs & Pharmaceutical.However the figures in Segment reporting is based on geographical location of its customers.

Notes:

1 Geographical Segments

The segment reporting is performed on the basis of the geographical location of customers. The management views the indian market and export markets as distinct geographical segments.

2 Segment assets & liabilities

Segment assets consists of debtors & the segment liabilities consists of creditors and accrued liabilities.

3 The figures in brackets are in respect of previous year.

11 Total amount of secured Term Loans installments payable during twelve months following 31-03-2010 are Rs. 10207.54 Lacs (Previous year Rs.7949.24 Lacs)

The expenditure incurred has been capitalised and carried in Capital Work in Process .The Management beleive that it is in the nature of development expenditure and meets the capitalisation cretiria set out in AS-26 on Intangible Assets issued by ICAI.

The management believes that these products would be commercially viable & there is no reason to believe that there is any uncertainity that may lead to not securing registration for the products from regulating authorities in US and/or Europe.

12 The outstanding dues of small scale industrial undertakings have been determined to the extent such parties have been identified on the basis of information available with the cmpnay.

The parties to whom the Company owes sum outstanding for more than 30 days as at the balance sheet date are: (1) Euro Containers (2) Ammonia Supply Co.

13 Company has not received intimation from supplier regarding the status under Micro, Small and Medium Enterprises Development Act 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with the interest paid/payable as required under the said Act have not been given.

14 The Compnay has ESOP scheme called "ESOS 2006".During the year, Company has granted no Employee Stock Option.(Previous Year Nil)

Deferred Employee Compensation Cost is being amortised over a period of three years, being the vesting period and on proportionate basis.

Accordingly a sum of Rs 51.64 Lac has been amortised during the year.

During the year the employees have opted 142460 options which were granted to them in earlier year & the same has been allotted to them in the form of equity shares

15 Obligations/Entitlements on account of advance license not recognised at the time of export during the year amounts to Rs. 357.78 Lac (Previous year Rs.726.93 Lac).

The above treatment has no impact on the profit & loss account.

16 Office Building includes Mumabi Office Building Rs.41.46 Lac purchased in Mumbai in the name of the Managing Director of the Company which is mortgaged with ICICI Bank.

The Company has entered into an "agreement to sell" and has taken GPA from the Managing Director. The property is yet to be registered in the name of Company.

Freehold land includes Rs.13.79 crores and Flats Rs. 14.58 Crore for which agreement to sell and GPA in favour of the company has been executed but the same are put to use.

The Freehold Land & Flats are yet to be registered /transferred in the name of the Company.

17 Share Application Money of Rs. 375.00 lacs is in respect of Zero coupon optionally convertible warrants subscribed by Ind Swift Limited

18 Capital Work in Progress includes:

a) Capital advances Rs. 4023.53 Lacs (Previous Year ; Rs. 2537.03 Lacs).

b) Product development expenditure of R&D Mohali Unit Rs.971.57 lacs (Previous Year ; Rs. 892.40 lacs)

19 Sundry Debtors, Loans and Advances includes Rs.948.78 Lacs (Previous Year ; Rs. 1948.27 Lacs) & Rs 352.98 Lacs(Previous Year; Rs. 2179.07 Lacs) as debtors and loans respectively recoverable from companies under the same management. Pl. refer to notes No 7of Notes to Accounts

20 The company entered into Forward Exchange Contracts being derivative instruments, which are not intended for trading or speculative purposes, but for hedge purposes, to establish the amount of reporting currency required or available at the settlement date.

21 In compliance with AS-28, during the year, company has identified fixed assets amounting to Rs.899.54 Lac for impairement whose accumulated depreciation was 212.39 Lacs. The Net Realisable Value of such fixed assets has been estimated at Rs.185.34 lacs. Accordingly, Impairment Loss of Rs. 501.81 Lacs has been charged to Profit & Loss Account during the year.

22 In compliance with AS-15, during the year, company has provided Rs. 11.93 Lacs as provision towards the Company Gratuity Policy maintained with LIC after the actuarial valuation done by the LIC.

23 During the year, the Company has incurred foreign currency revenue expenditure of RMB 448117.44 on its China Office and GBP 111521.88 on its U.K office

Operation. Such Foreign Currency Expenditure has been translated in Indian Currency @ One RMB equivalent to Rs. 69,429 and One GBP equivalent to Rs. 75.88 at the year end on the basis of average exchange rate during the year computed as per cross currency reference rates published by RBI.

24 Capital Reserve includesRs. 19.18 Lacs being Subsidy for DG Set which is net of Rs 1.21 Lacs amortised and treated as income during the year.

25 Loans & Advances include Rs. 4.33 lacs (Previous Year 3.87 lacs) due from Company Secretary. Maximum amount due during the year is Rs. 4.33 Lacs (Previous Year 3.87 Lacs)

26 There is change in accounting policy during the year in regard to Mat credit entitlement under the provsions of Section 115JB of Income tax act,1961.The impact due to this change in policy has increased the General Reserves of the company by Rs 1626.79 lacs and increase in current assets to that extent.

27 Due to occurrence of fire at Derabassi Plant,there was loss of stocks and thus the company has lodged an insurance claim of Rs. 39.15 lacs with United India Assurance Co. Ltd & the same is pending as on 31.03.2010

28 14% Non Convertible Debentures amounting to Rs 13.85 crores are redeemable in 13 quarterly instalments with effect from February,2010

29 Previous year figures have been regrouped, rearranged wherever considered necessary for comparison.

30 Schedule I to XV form an integeral part of Balance Sheet and Profit & Loss Account and have been duly authenticated.

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X