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Notes to Accounts of Ind-Swift Laboratories Ltd.

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, 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.

 
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