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Notes to Accounts of J B Chemicals & Pharmaceuticals Ltd.

Mar 31, 2016

1.1 The Company had acquired fixed assets under the "Export Promotion Capital Goods" (EPCG) in the year 2013-14, 2014-15 and 2015-16 that has resulted in the saving of duty of Rs. 808.14 lakhs. As per the terms of the authorization granted under the Scheme, the Company has undertaken to achieve export commitment of Rs. 4,835.50 lakhs over the export obligation period of 6 years from the date of issuing the license. In the event of Company being unable to execute its export obligation by this period, the Company shall be liable to pay Custom duty for unfulfilled export obligation along with interest after expiry of the export obligation period. Further, during the year 2014-15, consequent to the debonding of two export oriented units, Company has undertaken to fulfill the export obligation of Rs. 2,784.98 lakhs.

1.2 The Pharmaceutical Division of Unique Pharmaceutical Laboratories Ltd. (UPLL) which was acquired by the Company on a going concern basis, has received demand notices from Dept. of Chemicals & Fertilizers, Govt. of India, New Delhi demanding a sum of Rs. 461.47 lakhs in respect of the bulk drug Metronidazole and a further sum of Rs. 591.05 lakhs in respect of the bulk drug Oxyphenbutazone. These amounts were claimed on hypothetical basis in 1996, under para 7(2) of DPCO 79 read with para 14 of DPCO 87 and para 12 of DPCO 95, long after repeal of DPCO 79 and DPCO 87 and gains allegedly notionally made by it by procuring the bulk drugs at alleged lower cost. UPLL has fled review petition against each of these claims disputing the jurisdiction, power and legal or rational basis for making such demands, particularly in view of the repeal of DPCO 79 and DPCO 87. The Company has fled writ petitions bearing no. 446 of 2008 in respect of demand for Oxyphenbutazone & writ petition no. 2623 of 2007 in respect of demand for Metronidazole in Bombay High Court. These writ petitions have been admitted and the Hon''ble High Court has restrained the Government from adopting coercive steps to recover the amount till the disposal of the writ petition on the Company furnishing security as per the Orders. The Company has already furnished the Bank guarantee as security. As per the legal advice received by the Company, there is no liability and accordingly no provision is being made in the Accounts for these claims and demands.

1.3 Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 2,991.32 lakhs (Previous year Rs. 3,618.56 lakhs)

1.4 Surrender of 0% EPGC licenses or Status Holder Incentive Scrip (SHIS) amounting to Rs. 44.50 lakhs with applicable interest and levy of penalty of Rs.133.49 lakhs ordered by Dy. Director General of Foreign Trade, being disputed in appeal.

2. Travelling expenses of field personnel include incidental expenses on conveyance, postage, stationery and miscellaneous expenses, etc.

3. SEGMENT REPORTING:

The Company has one segment of activity namely ''Pharmaceuticals''.

4. RELATED PARTY DISCLOSURE

Related party disclosure as required by AS-18, ''Related Party Disclosures'' notified under Section 133 of the Companies Act, 2013, are given below:

Names and Relationships of the Related Parties:

i) Subsidiary Companies:

a. OOO Unique Pharmaceutical Laboratories

b. J.B. Healthcare Pvt. Ltd. (Liquidated on 02.03.2016)

c. LLC Unique Pharmaceutical Laboratories

d. Unique Pharmaceutical Laboratories FZE

e. Biotech Laboratories (Pty.) Ltd. (Through Unique Pharmaceutical Laboratories FZE) (w.e.f. 18.12.2015 pursuant to purchase of shares of joint venture partner)

ii) Associate Concerns/Trusts/Companies/Joint Venture:

a. Mody Trading Company

b. Mody Brothers

c. Jyotindra Family Trust

d. Dinesh Family Trust

e. Shirish Family Trust

f. Biotech Laboratories (Pty.) Ltd. (Upto 17.12.2015)

g. J. B. Mody Enterprises LLP

h. Ansuya Mody Enterprises LLP

i. Dinesh Mody Ventures LLP

j. Kumud Mody Ventures LLP

k. Shirish Mody Enterprises LLP

l. Bharati Mody Ventures LLP

m. Synit Drugs Pvt. Ltd.

n. Unique Pharmaceutical Laboratories Ltd.

o. Ifunik Pharmaceuticals Ltd.

p. Namplas Chemicals Pvt. Ltd.

q. Gemma Jewellery Pvt. Ltd

r. Lekar Pharma Ltd.

s. Jyotindra Mody Ventures LLP

t. D. B. Mody Entreprises LLP

u. Shirish Mody Property LLP

iii) Key Management Personnel:

a. Shri Jyotindra B. Mody

b. Shri Dinesh B. Mody

c. Shri Shirish B. Mody

iv) Relative of Key Management Personnel:

a. Mr. Pranabh D. Mody

b. Mrs. Kumud D. Mody

c. Mrs. Bharati S. Mody

d. Mrs. Pallavi B. Mehta

e. Mrs. Purvi U. Asher

f. Mrs. Deepali A. Jasani

g. Mrs. Priti R. Shah

h. Mr. Nirav S. Mody

i. Mrs. K. V. Gosalia

j. D. B. Mody-HUF

k. S. B. Mody-HUF

5. Disclosures as required by Accounting Standard 19, "Leases", notified under Section 133 of the Companies Act, 2013, are given below:

i. The Company has taken certain residential and office premises on operating lease / leave and license agreements on cancellable terms and are renewable by mutual consent on mutually agreeable terms.

ii. Lease payment in respect of non cancellable lease amounts to Rs. Nil (Previous year Rs. 44.96 lakhs) is included under the head Compensation Rent in Note "26".

6. FINANCIAL AND DERIVATIVE INSTRUMENTS

a) Derivative Instruments:

The Company has entered into forward contracts to offset foreign currency risks arising from the amounts denominated in currencies other than the Indian rupee. The counter party to such forward contract is a bank. These contracts are entered to the hedge the foreign currency risks. Details of forward contracts outstanding as at the year end:

b) Foreign currency exposure at the year end not hedged by derivative instruments.

7. CSR EXPENDITURE

Gross amount required to be spent during the year Rs. 274.78 lakhs Amount spent during the year Rs. 243.58 lakhs as detailed hereunder:

8. Figures of previous year have been re-grouped, rearranged and recast, wherever considered necessary. Figures of previous year include figures of amalgamating companies & are, therefore, strictly not comparable with those of current year.

9. Figures in brackets indicate corresponding figures of previous year.


Mar 31, 2015

1) The above Cash Flow Statement has been prepared under the indirect method as set out in Accounting Standard 3 on "Cash Flow Statement".

2) Balance with Banks include Rs. 12.50 Lakhs (Previous Year Rs. 100.50 lakhs) being deposits under lien.

3) Previous years' figures are regrouped / reclassified wherever necessary in order to conform to current years' groupings and classifications.

2.1 The company has only one class of issued shares having par value of Rs. 2/-. Each holder of equity shares is entitled to one vote per share and carries identical right as to dividend. These shares are not subject to any restrictions.

2.2 Details of shareholders holding more than 5% shares.

* These shares are cancelled and new shares have been issued to the shareholders of the respective companies pursuant to the Scheme of Amalgamation (refer note no. 28 )

2.3 Shares reserved for issue under ESOP

In the year 2004, the company has instituted the Employees Stock Option Scheme, under which 2,500,000 equity shares of Rs. 2 each have been reserved. Under the Scheme, the options are granted at an amount equal to ninety five percent of the average daily closing price of the shares of the company's shares quoted on National Stock Exchange of India Ltd. during the period of twelve weeks preceding the date of grant. These options vest in four equal instalments and subject to other provisions of the Scheme, are exercisable within a period of five years from the respective date of vesting.

The activity in the said ESOP Scheme during the last two years was as under:

The above information regarding Micro, Small and Medium enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the Auditors.

* The delayed payment has been computed having regard to specified credit period of 45 days under MSME Act. However, there is no delay in terms of agreed credit terms with these suppliers.

Nature of security and terms of repayment

* Vehicle loans are secured by hypothecation of vehicles and same is repayable in sixty equivated monthly instalment inclusive of interest on reducing balance.

# Fixed Deposit amount includes Rs. Nil (previous year Rs. 104.00 lakhs) from certain directors and Rs. Nil (previous year Rs. 579.70 lakhs) from their relatives. Interest accrued but not due includes Rs. Nil (Previous year Rs. 47.36 lakhs) being amount accrued on deposits received from directors and their relatives (Also refer note no. 34).

@ There is no amount due and outstanding to be credited to Investor Education and Protection Fund.

3. The contingent liabilities not provided for / Capital and other commitment

3.1 Letter of Credit opened by banks Rs. 3,035.18 lakhs (Previous year Rs. 1,887.79 lakhs)

3.2 Guarantee issued by the bank on behalf of the company Rs. 1,605.16 lakhs (Previous year Rs. 1,528.04 lakhs)

3.3 Corporate guarantee of Rs. 2,500 lakhs (Previous year Rs. Nil) given by company to a bank in respect of loan taken by a subsidiary company.

3.4 Central Excise and Service Tax Demand / show cause notice of Rs. 554.04 lakhs (Previous year Rs. 308.11 lakhs), against which the company has made pre-deposit of Rs. 2.15 lakhs (Previous year Rs. Nil).

3.5 Income Tax demand of Rs. 20.98 lakhs (Previous year Rs. Nil) being disputed in appeal (against which the company has made pre-deposit of Rs. 20.98 lakhs).

3.6 Sales Tax Demand of Rs. 11.82 lakhs (Previous year Rs. 50.31 lakhs) being disputed in appeal. (Against which the company has made pre-deposit of Rs. 3.55 lakhs (Previous year Rs. 11.25 lakhs) and given a bank guarantee of Rs. 0.74 lakhs (Previous year Rs. 0.74 lakhs )).

3.7 The company had acquired fixed assets under the "Export Promotion Capital Goods Scheme" (EPCG) in the year 2013-14 and 2014-15 that has resulted in the savings of duty of Rs. 394.65 lakhs. As per the terms of the authorization granted under the scheme, the company has undertaken to achieve export commitment of Rs. 2,327.15 lakhs over the export obligation period of 6 years from the date of issuing the license. In the event of company being unable to execute its export obligation by this period, the company shall be liable to pay custom duty for unfulfilled export obligation along with interest after expiry of the export obligation period. Further, during the year, consequent to the debonding of two export oriented unit, company has undertaken to fulfill the export obligation of Rs. 15,240.66 lakhs.

3.8 The Pharmaceutical Division of Unique Pharmaceutical Laboratories Ltd (UPLL) which was acquired by the company on a going concern basis, has received demand notices from Dept. of Chemicals & Fertilizers, Govt. of India, New Delhi demanding a sum of Rs. 461.47 lakhs in respect of the bulk drug Metronidazole and a further sum of Rs. 591.05 lakhs in respect of the bulk drug Oxyphenbutazone. These amounts were claimed on hypothetical basis in 1996, under para 7(2) of DPCO 79 read with para 14 of DPCO 87 and para 12 of DPCO 95, long after repeal of DPCO 79 and DPCO 87 and gains allegedly notionally made by it by procuring the bulk drugs at alleged lower cost. UPLL has filed review petition against each of these claims disputing the jurisdiction, power and legal or rational basis for making such demands, particularly in view of the repeal of DPCO 79 and DPCO 87. The company has filed writ petitions bearing No 446 of 2008 in respect of demand for Oxyphenbutazone & writ petition No. 2623 of 2007 in respect of demand for Metronidazole in Bombay High Court. These writ petitions have been admitted and the Hon'ble High Court has restrained the Government from adopting coercive steps to recover the amount till the disposal of the writ petition on the company furnishing security as per the orders.

The company has already furnished the bank guarantee as security. As per the legal advice received by the company, there is no liability and accordingly no provision is being made in the accounts for these claims and demands.

3.9 Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 3,618.56 lakhs (Previous year Rs. 199.83 lakhs).

3.10 Surrender of 0% EPGC licences or Status Holder Incentive Scrip (SHIS) amounting to Rs. 44.50 lakhs with applicable interest and levy of penalty of Rs. 133.49 lakhs ordered by Dy. Director General of Foreign Trade, being disputed in appeal.

4. Scheme of Amalgamation

The Hon'ble High Court of Mumbai, on February 27, 2015 sanctioned the Scheme of Amalgamation under Section 391 to 394 of the Companies Act, 1956 of six investment companies (the primary assets of which comprise of equity shares in the company) namely, Jyotindra Mody Holdings Private Limited (JMPL), Ansuya Mody Securities Private Limited (AMPL), Dinesh Mody Securities Private Limited (DMPL), Kumud Mody Securities Private Limited (KMPL), Shirish B. Mody Investments Private Limited (SMPL), and Bharati S. Mody Investments Private Limited (BMPL), (collectively herein after referred to as 'Transferor Companies') with the company. The scheme was earlier approved by the shareholders in the court convened meeting held on October 14, 2014 as well as by the public shareholders through postal ballot and e-voting on October 16, 2014. The Company has filed the Court Order with the Registrar of Companies on 13th April, 2015 to make the scheme effective in terms of said order dated February 27, 2015. The Company has given effect for the said scheme in its books of accounts with effect from the appointed date i.e. 1st April, 2014. In accordance with the Scheme and in compliance with AS-14 "Accounting for Amalgamation", the Company has accounted for the Amalgamation based on the "Pooling of Interest" method as under:

(i) All assets and liabilities (including reserves) appearing in the books of accounts of Transferor Companies have been transferred to & vested in and have been recorded by the Company at their respective book values.

(ii) The investments in equity share capital of the Company as it appears in the books of account of the Transferor Companies have been cancelled pursuant to the scheme.

(iii) The excess of net assets value of the Transferor Companies as reduced by the face value of shares issued by the Company, adjusted for cancellation of equity share capital as mentioned above and net of all expenses in relation to the Scheme, amounting to Rs. 204.80 lakh, has been adjusted to surplus in the Profit and Loss Account.

(iv) The Statutory Reserve of Rs. 267.49 lakhs vested with the Company, created by respective transferor Company u/s 45 IC of the RBI Act, will be re-classified to General Reserve on getting approval from RBI.

(v) All inter-company transactions have been eliminated on incorporation of the accounts of Transferor Companies in the books of Company.

(vi) In consideration of the above, the Company has allotted equity shares, credited as fully paid up, to the extent indicated below, to all the members of the Transferor Companies in the following proportion:

(a) 746.6242 fully paid up equity shares of Rs. 2 each of the Company for every 1 paid up equity share of Rs. 10 each held in JMPL.

(b) 723.4882 fully paid up equity shares of Rs. 2 each of the Company for every 1 paid up equity share of Rs. 10 each held in AMPL.

(c) 705.5326 fully paid up equity shares of Rs. 2 each of the Company for every 1 paid up equity share of Rs. 10 each held in DMPL.

(d) 718.1232 fully paid up equity shares of Rs. 2 each of the Company for every 1 paid up equity share of Rs. 10 each held in KMPL.

(e) 637.1318 fully paid up equity shares of Rs. 2 each of the Company for every 1 paid up equity share of Rs. 10 each held in SMPL.

(f) 787.3987 fully paid up equity shares of Rs. 2 each of the Company for every 1 paid up equity share of Rs. 10 each held in BMPL.

Accordingly, 43,342,270 fully paid up equity shares of Rs. 2 each of the Company have been issued to the shareholders of the Transferor Companies, which is equivalent to the shares cancelled, vide (ii) above; these shares, aggregating to Rs. 866.85 lakhs, pending allotment as on year-end have been shown as "Share Capital pending allotment" under Share Capital, thus resulting in no change in the total issued & paid up Share Capital of the Company. The new equity shares issued as above rank pari-passu with the existing equity shares of the Company. As per the scheme of amalgamation, the said shares have been issued & allotted to the shareholders of the transferor companies as per register of members of the transferor companies as on the effective date i.e. 13th April, 2015.

5. Travelling expenses of field personnel include expenses on stationery and printing, conveyance, postage, miscellaneous expenses, etc.

6. Details of Research & Development Expenditure incurred during the year at the following R&D Centers:

7. The amount of Excise Duty disclosed as deduction from turnover is the Excise duty for the year, except the excise duty related to the difference between the closing stockand opening stock and excise duty paid butnotrecovered, which has been disclosed in the (increase)/ decrease in stock and other expenses respectively. (Increase)/ decrease in stocks include excise duty on finished goods lying at plants (net) Rs. 35.11 lakhs (Previous year Rs. 10.86 lakhs).

8. SEGMENT REPORTING:

The company has one segment of activity namely 'Pharmaceuticals'

9. RELATED PARTY DISCLOSURE

Related party disclosure as required by AS - 18, 'Related Party Disclosures' notified by the Companies (Accounting Standard) Rules, 2006 are given below:

Names and Relationships of the Related Parties:

i) Subsidiary Companies:

a. OOO Unique Pharmaceutical Laboratories

b. J. B. Healthcare Pvt. Ltd.

c. J. B. Chemicals & Pharmaceuticals Pvt. Ltd. (Upto 13-06-14)

d. LLC Unique Pharmaceutical Laboratories.

e. Unique Pharmaceutical Laboratories FZE

ii Associate Concerns/Trusts/Companies/Joint Venture:

a. Mody Trading Company

b. Mody Brothers

c. Jyotindra Family Trust

d. Dinesh Family Trust

e. Shirish Family Trust

f. Biotech Laboratories (Pty.) Ltd.

g. J.B.Mody Enterprises LLP

h. Ansuya Mody Enterprises LLP

i. Dinesh Mody Ventures LLP

j. Kumud Mody Ventures LLP

k. Shirish Mody Enterprises LLP

l. Bharati Mody Ventures LLP

m. Synit Drugs Pvt. Ltd.

n. Unique Pharmaceutical Laboratories Ltd.

o. Ifiunik Pharmaceuticals Ltd.

p. Namplas Chemicals Pvt. Ltd.

q. Gemma Jewellery Pvt. Ltd

r. Lekar Pharma Ltd.

iii) Key Management Personnel:

a. Shri Jyotindra B. Mody

b. Shri Dinesh B. Mody

c. Shri Shirish B. Mody

iv) Relative of Key Management Personnel:

a. Mr. Pranabh D. Mody

b. Mrs. Kumud D. Mody

c. Mrs. Bharati S. Mody

d. Mrs. Pallavi B. Mehta

e. Mrs. Purvi U. Asher

f. Mrs. Deepali A. Jasani

g. Mrs. Priti R. Shah

h Mr. Nirav S. Mody

i. Mrs. K. V. Gosalia

j. D. B. Mody HUF

k. S. B. Mody HUF

Disclosure in respect of Material Related Party Transactions during the year:

a) Material / Goods sold to Unique Pharmaceutical Laboratories FZE (Dubai) Rs. 5,659.57 lakhs (Previous Year Rs. Nil), OOO Unique Pharmaceutical Laboratories, Moscow Rs. 69.88 lakhs (Previous year Rs. 4,492.58 lakhs), Biotech Laboratories (Pty.) Ltd. Rs. 2,794.39 lakhs (Previous year Rs. 3,271.72 lakhs).

b) Manufacturing charges received from Lekar Pharma Ltd. Rs. 36.69 lakhs (Previous year Rs. 46.19 lakhs).

c) Dividend received from J.B.Healthcare Pvt. Ltd. Rs. 20.49 lakhs (Previous year Rs. 86.72 lakhs).

d) Purchases from Lekar Pharma Ltd. Rs. 3,885.37 lakhs (Previous year Rs. 3605.48 lakhs).

e) Processing charges paid to Namplas Chemicals Pvt. Ltd. Rs. 89.38 lakhs (Previous year Rs. 129.30 lakhs).

f) Bio-equivalence study charges paid to Raptim Research Ltd. Rs. Nil lakhs (Previous year Rs. 3.93 lakhs).

g) Rent paid to Jyotindra Family Trust Rs. 116.40 lakhs (Previous year Rs. 116.40 lakhs), Dinesh Family Trust Rs. 59.07 lakhs (Previous year Rs. 59.07 lakhs), Shirish Family Trust Rs. 70.34 lakhs (Previous year Rs. 70.34 lakhs), D. B. Mody HUF Rs. 36.71 lakhs (Previous year Rs. 36.71 lakhs), S. B. Mody HUF Rs. 36.85 lakhs (Previous year Rs. 36.85 lakhs).

h) Sales Promotion expense paid to OOO Unique Pharmaceutical Laboratories Rs. Nil (Previous year Rs. 2,376.53 lakhs), Biotech Laboratories (Pty.) Ltd. Rs. Nil (Previous year Rs. (11.94) lakhs).

i) Reimbursement of expense to OOO Unique Pharmaceutical Laboratories Rs. 21.55 lakhs (Previous year Rs. 9.34 lakhs) Biotech Laboratories (Pty.) Ltd. (Rs. 0.74) lakhs (Previous Year (Rs. 0.23) lakhs).

j) Royalty paid to Unique Pharmaceutical Laboratories Ltd. Rs. 1,112.85 lakhs (Previous year Rs. 1,103.55 lakhs).

k) Employee benefit expense paid to Shri Jyotindra B. Mody Rs. 40.36 lakhs (Previous year Rs. 43.24 lakhs), Shri Dinesh B. Mody Rs. 40.36 lakhs (Previous year Rs. 43.24 lakhs), Shri Shrish B. Mody Rs. 40.36 lakhs (Previous year Rs. 43.24 lakhs), Shri Pranabh D. Mody Rs. 23.48 lakhs (Previous year Rs. 20.88 lakhs), Shri Nirav Mody Rs. 13.27 lakhs (Previous year Rs. 11.79 lakhs).

l) Remuneration paid to Shri Jyotindra B. Mody Rs. 338.73 lakhs (Previous year Rs. 360.35 lakhs), Shri Dinesh B. Mody Rs. 338.73 lakhs (Previous year Rs. 360.36 lakhs), Shri Shirish B. Mody Rs. 338.73 lakhs (Previous year Rs. 360.36 lakhs), Shri Pranabh D. Mody Rs. 173.93 lakhs (Previous year Rs. 154.25 lakhs), Shri Nirav Mody Rs. 98.29 lakhs (Previous year Rs. 87.36 lakhs).

m) Interest on Deposit paid to Shri Jyotindra B. Mody Rs. 8.96 lakhs (Previous year Rs. 9.32 lakhs), Shri Dinesh Mody Rs. 2.22 lakhs (Previous year Rs. 2.58 lakhs), Ms. Deepali Jasani Rs. 12.70 lakhs (Previous year Rs. 12.40 lakhs), D. B. Mody HUF Rs. 23.15 lakhs (Previous year Rs. 30.60 lakhs), S. B. Mody HUF Rs. 5.70 lakhs (Previous year Rs. 5.25 lakhs), Synit Drugs Pvt. Ltd. Rs. 4.00 lakhs (Previous year Rs. 4.01 lakhs), Ifiunik Pharmaceuticals Ltd. Rs. 6.50 lakhs (Previous year Rs. 6.50 lakhs).

n) Equity Contribution was made to J. B. Healthcare Pvt. Ltd., Jersey Rs. 6.17 (Previous year Rs. 9.39), J.B.Chemicals & Pharmaceuticals Pvt. Ltd., Singapore Rs. Nil (Previous year Rs. 3.55 lakhs), Unique Pharmaceutical Laboratories LLC, Ukraine Rs. 6.08 lakhs (Previous year Rs. 9.36 lakhs), Unique Pharmaceutical Laboratories FZE, Dubai Rs. 59.92 (Previous year Rs. Nil).

o) Re-imbursement of expenses received from J. B. Chemicals & Pharmaceuticals Pvt. Ltd. Singapore Rs. Nil (Previous year Rs. 0.26), Unique Pharmaceutical Laboratories FZE, Dubai Rs. 37.93 (Previous year Rs. Nil).

p) Expenses incurred on behalf of subsidiary company Unique Pharmaceutical Laboratories FZE, Dubai Rs. 1.99 lakhs (Previous year Rs. 36.39 lakhs).

q) Fixed deposit repayment to Shri Jyotindra B. Mody Rs. 82.50 lakhs (Previous year Rs. Nil ), Shri Dinesh Mody Rs. 22.50 lakhs (Previous year Rs. Nil ), Mrs. Kumud Mody Rs. 50.00 lakhs (Previous year Rs. Nil ), Mrs. Bharati Mody Rs. 46.70 lakhs (Previous year Rs. Nil), Ms. Deepali Jasani Rs. 111.00 lakhs (Previous year Rs. Nil), S. B. Mody HUF Rs. 50.00 lakhs (Previous year Rs. Nil).

r) Amount payable to OOO Unique Pharmaceutical

Laboratories Rs. Nil (Previous year Rs. 666.17 lakhs), Synit Drugs Pvt. Ltd. Rs. 40.00 lakhs (Previous year Rs. 40.00 lakhs), Biotech Laboratories (Pty.) Ltd. Rs. 1.81 lakhs (Previous year Rs. 2.00 lakhs), Unique Pharmaceutical Laboratories Ltd. Rs. 72.29 lakhs (Previous year Rs. 164.63 lakhs) Ifiunik Pharmaceuticals Ltd. Rs. 65.00 lakhs (Previous year Rs. 65.00 lakhs), Namplas Chemicals Pvt. Ltd. Rs. 6.59 lakhs (Previous year Rs. 9.71 lakhs), Lekar Pharma Ltd. Rs. 145.61 lakhs (Previous year Rs. 274.61 lakhs), Shri Jyotindra B. Mody Rs. Nil (Previous year Rs. 91.72 lakhs), Shri Dinesh B. Mody Rs. Nil (Previous year Rs. 27.86 lakhs),

Shri Shirish B. Mody Rs. Nil (Previous year Rs. 0.50 lakhs),

Mrs. Kumud D. Mody Rs. Nil (Previous Year Rs. 53.39 lakhs),

Mrs. Bharati S. Mody Rs. Nil (Previous year Rs. 34.00 lakhs),

Mrs. Purvi Asher Rs. Nil (Previous year Rs. 2.09 lakhs), Mrs. Deepali A. Jasani Rs. Nil (Previous year Rs. 132.99 lakhs), Mrs. K.V. Gosalia Rs. Nil (Previous year Rs. 29.10 lakhs), D. B. Mody HUF Rs. Nil (Previous year Rs. 306.00 lakhs), S.B. Mody HUF Rs. Nil (Previous year Rs. 54.91 lakhs).

s) Amount receivable as on 31st March, 15 from OOO Unique Pharmaceutical Laboratories Rs. Nil (Previous year Rs. 4,441.09 lakhs), Unique Pharmaceutical Laboratories FZE Rs. 3,468.60 lakhs (Previous year Rs. 36.39 lakhs), Jyotindra Family Trust Rs. 21.13 lakhs (Previous year Rs. 21.13 lakhs), Dinesh Family Trust 8.49 lakhs (Previous year Rs. 8.49 lakhs), Shirish Family Trust Rs. 8.49 lakhs (Previous year Rs. 8.49 lakhs), Jyotindra Mody Enterprises LLP Rs. 1.34 lakhs (Previous year Rs. 1.34 lakhs),

Dinesh Mody Ventures LLP Rs. 1.34 lakhs (Previous Year Rs. 1.34 lakhs), Shirish B. Mody Enterprises LLP Rs. 1.34 lakhs (Previous year Rs. 1.34 lakhs), Biotech Laboratories (Pty.) Ltd. Rs. 1,469.14 lakhs (Previous year Rs. 678.96 lakhs), D. B. Mody HUF Rs. 12.64 lakhs (Previous year Rs. 12.64 lakhs), S. B. Mody HUF Rs. 12.64 lakhs (Previous year Rs. 12.64 lakhs).

10. Disclosures as required by Accounting Standard 19, "Leases", notified under Section 133 of the Companies Act,2013, are given below:

i. The company has taken certain residential and office premises on operating lease / leave and license agreements having non-cancellable / not non- cancellable (range between 11 months and 3 years) are renewable by mutual consent on mutually agreeable terms.

ii. Lease payment in respect of non cancellable lease amounts to Rs. 44.96 lakhs (Previous year Rs. 72.22 lakhs) is included under the head Compensation Rent in Note "26"

The minimum future lease rentals payable in respect of non cancellable lease are as follows.

11. FINANCIAL AND DERIVATIVE INSTRUMENTS

a) Derivative Instruments:

The company has entered into forward contract to offset foreign currency risks arising from the amounts denominated in currencies other than the Indian rupee. The counter party to such forward contract is a bank. These contracts are entered into to hedge the foreign currency risks. Details of forward contracts outstanding as at the year end:

12. Consequent to the applicability of Schedule II to the Companies Act, 2013 effective from April 1,2014, the company has applied the useful life as per Schedule II. In case of fixed assets where useful life as at April 1,2014 is Nil, the company has adjusted the residual value aggregating to Rs. 347.40 lakhs (Net of deferred tax Rs. 178.88 lakhs) to the retained earnings.

13. CSR EXPENDITURE

Gross amount required to be spent during the year Rs. 209.71 lakhs Amount spent during the year Rs. 210.28 lakhs as detailed hereunder:

14. As required under section 186(4) of the Companies Act, 2013, the particulars of loans and guarantees and investments made during the year and which are outstanding as at the year-end are as follows:

15. Figures of previous year have been re-grouped, re-arranged and recast, wherever considered necessary. Figures of current yea include figures of amalgamating companies and are, therefore, strictly not comparable with those of previous year.

16. Figures in brackets indicate corresponding figures of previous year.


Mar 31, 2014

1. The contingent liabilities not provided for and other commitments:

1.1 Letter of Credit opened by Banks Rs. 1,887.79 lakhs (Previous year Rs. 2,942.63 lakhs).

1.2 Guarantee issued by the Bank on behalf of the company Rs. 1,528.04 lakhs (Previous year Rs. 1,450.54 lakhs).

1.3 Central Excise and Service Tax Demand / show cause notice of Rs. 308.11 lakhs (Previous year Rs. 183.39 lakhs).

1.4 Sales Tax Demand of Rs. 50.06 lakhs (Previous year Rs. 7.95 lakhs) being disputed in appeal (Against which the company has made pre-deposit of Rs. 11.25 lakhs (Previous year Rs. 2.11 lakhs) and given a bank guarantee of Rs. 0.74 lakhs).

1.5 The company had purchased Fixed Assets under the "Export Promotion Capital Goods Scheme" (EPCG) in the year 2012-13 and 2013-14 that has resulted in the savings of duty of Rs. 638.66 lakhs. As per the terms of the authorization granted under the Scheme, the company has undertaken to achieve export commitment of Rs. 1,974.31 lakhs over the export obligation period of 6 years, which expires on 28th November 2019. In the event of company being unable to execute its export obligation by this period, the company shall be liable to pay custom duty for unfulf lled export obligation along with interest after expiry of the export obligation period. Company has already fulf lled export obligation to the extent of 85% in case of Fixed Assets purchased under EPCG scheme during 2012-13 and 5% in case of Fixed Assets purchased under EPCG scheme during 2013-14.

1.6 The Pharmaceutical Division of Unique Pharmaceutical Laboratories Ltd. (UPLL) which was acquired by the company on a going concern basis, has received demand notices from Dept. of Chemicals & Fertilizers, Govt. of India, New Delhi demanding a sum of Rs. 461.47 lakhs in respect of the bulk drug Metronidazole and a further sum of Rs. 591.05 lakhs in respect of the bulk drug Oxyphenbutazone. These amounts were claimed on hypothetical basis in 1996, under para 7(2) of DPCO 79 read with para 14 of DPCO 87 and para 12 of DPCO 95, long after repeal of DPCO 79 and DPCO 87 and gains allegedly notionally made by it by procuring the bulk drugs at alleged lower cost. UPLL has f led review petition against each of these claims disputing the jurisdiction, power and legal or rational basis for making such demands, particularly in view of the repeal of DPCO 79 and DPCO 87. The company has f led writ petitions bearing No. 446 of 2008 in respect of demand for Oxyphenbutazone & writ petition No. 2623 of 2007 in respect of demand for Metronidazole in Bombay High Court. These writ petitions have been admitted and the Hon''ble High Court has restrained the Government from adopting coercive steps to recover the amount till the disposal of the writ petition on the company furnishing security as per the orders. The company has already furnished the bank guarantee as security. As per the legal advice received by the company, there is no liability and accordingly no provision is being made in the accounts for these claims and demands.

1.7 Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 199.83 lakhs (Previous year Rs. 607.31 lakhs).

1.8 During the year, the company has set up a wholly owned subsidiary company Unique Pharmaceutical Laboratories FZE in Dubai with committed initial capital contribution of AED 365,000 which remain to be remitted as of the year-end.

2. The exceptional item represents the amount which was no longer recoverable by the company out of escrow account set up pursuant to the agreement dated July 14, 2011 with the purchaser of the company ''s Russia – CIS OTC business undertaking, following commercial settlement of dispute and resulting into reduction in purchase consideration received from the said purchaser.

3. Traveling expenses of f eld personnel include expenses on stationery and printing, conveyance, postage, miscellaneous expenses etc.

4. Details of Research & Development expenditure incurred during the year at the following R&D Centers:

5. The amount of Excise Duty disclosed as deduction from turnover is the Excise duty for the year, except the excise duty related to the dif erence between the closing stock and opening stock and excise duty paid but not recovered, which has been disclosed in the (increase)/decrease in stock and other expenses respectively. (Increase)/decrease in stocks include excise duty on f nished goods lying at plants (net) Rs. (10.86) lakhs (Previous year Rs. 11.70 lakhs).

6. EMPLOYEE BENEFITS:

The disclosures as required as per the revised AS 15 are as under:

a) Def ned Contribution Plan

Contribution to Def ned Contribution Plan, recognized as expense for the year are as under:

Expected employers contribution for the next year is Rs. Nil (Previous year Rs. 100.73 lakhs)

Investment details:

The company made annual contributions to the LIC of an amount advised by the LIC. The company was not informed by LIC of the Investments made or the break-down of plan assets by investment type.

Actuarial Assumptions:

* During the year, the company has opted for Group Gratuity Cash Accumulation (GGCA) scheme of LIC for all its employees for contributing to the fund managed by LIC based on the actuarial valuation of LIC. Based on the actuarial valuation determined by LIC, the company has provided for dif erential liability on account of def ned benef t obligation of Rs. 222.56 lakhs and recognized as part of current service cost.

7. SEGMENT REPORTING

The company has one segment of activity namely ''Pharmaceuticals''.

8. RELATED PARTY DISCLOSURE

Related party disclosure as required by AS – 18, ''Related Party Disclosures'' notif ed by the Companies (Accounting Standard) Rules, 2006 are given below:

Names and Relationships of the Related Parties:

i) Subsidiary Companies:

a. OOO Unique Pharmaceutical Laboratories.

b. J. B. Healthcare Pvt. Ltd.

c. J. B. Chemicals & Pharmaceuticals Pvt. Ltd.

d. LLC Unique Pharmaceuticals Laboratories.

e. Unique Pharmaceutical Laboratories FZE (w.e.f. 10-12-2013)

ii) Associate Concerns / Trusts / Companies/Joint Venture:

a. Mody Trading Company

b. Mody Brothers

c. Jyotindra Family Trust

d. Dinesh Family Trust

e. Shirish Family Trust

f. Biotech Laboratories (Pty.) Ltd.

g. Jyotindra Mody Holdings Pvt. Ltd. h. Ansuya Mody Securities Pvt. Ltd. i. Dinesh Mody Securities Pvt. Ltd.

j. Kumud Mody Securities Pvt. Ltd.

k. Shirish B. Mody Investments Pvt. Ltd.

l. Bharati S. Mody Investments Pvt. Ltd.

m. J. B. Mody Enterprises Pvt. Ltd. (Upto 24-6-2013)

n. Ansuya Mody Enterprises Pvt. Ltd. (Upto 24-6-2013)

o. Dinesh Mody Ventures Pvt. Ltd. (Upto 24-6-2013)

p. Kumud Mody Ventures Pvt. Ltd. (Upto 24-6-2013)

q. Shirish Mody Enterprises Pvt. Ltd. (Upto 24-6-2013)

r. Bharati Mody Ventures Pvt. Ltd. (Upto 24-6-2013)

s. J. B. Mody Enterprises LLP (from 25-6-2013)

t. Ansuya Mody Enterprises LLP (from 25-6-2013)

u. Dinesh Mody Ventures LLP (from 25-6-2013)

v. Kumud Mody Ventures LLP (from 25-6-2013)

w. Shirish Mody Enterprises LLP (from 25-6-2013)

x. Bharati Mody Ventures LLP (from 25-6-2013)

y. Synit Drugs Pvt. Ltd.

z. Unique Pharmaceutical Laboratories Ltd.

aa. If unik Pharmaceuticals Ltd.

ab. Namplas Chemicals Pvt. Ltd.

ac. Raptim Research Ltd. (Upto 16-6-2013)

ad. Gemma Jewellery Pvt. Ltd.

ae. Lekar Pharma Ltd.

iii) Key Management Personnel:

a. Shri Jyotindra B. Mody

b. Shri Dinesh B. Mody

c. Shri Shirish B. Mody

iv) Relative of Key Management Personnel:

a. Mr. Pranabh D. Mody

b. Mrs. Kumud D. Mody

c. Mrs. Bharati S. Mody

d. Mrs. Pallavi B. Mehta

e. Mrs. Purvi U. Asher

f. Mrs. Deepali A. Jasani

g. Mrs. Priti R. Shah h Mr. Nirav S. Mody i. Mrs. K. V. Gosalia j. D. B. Mody HUF k. S. B. Mody HUF

Disclosure in respect of Material Related Party Transactions during the year:

1. Material / Goods sold to OOO Unique Pharmaceutical Laboratories, Moscow, Rs. 4,492.58 lakhs (Previous year Rs. 3,648.99 lakhs), Biotech Laboratories (Pty.) Ltd. Rs. 3,271.72 lakhs (Previous year Rs. 1,882.14 lakhs).

2. Manufacturing charges received from Lekar Pharma Ltd. Rs. 46.19 lakhs (Previous year Rs. 22.92 lakhs).

3. Dividend received from J.B. Healthcare Pvt. Ltd. Rs. 86.72 lakhs (Previous year Rs. 159.48 lakhs).

4. Purchases from Lekar Pharma Ltd. Rs. 3,605.48 lakhs (Previous year Rs. 3,507.87 lakhs).

5. Processing charges paid to Namplas Chemicals Pvt. Ltd. Rs. 129.30 lakhs (Previous year Rs. 150.36 lakhs).

6. Bio-equivalent study charges paid to Raptim Research Ltd. Rs. 3.93 lakhs (Previous year Rs. 60.63 lakhs).

7. Rent paid to Jyotindra Family Trust Rs. 116.40 lakhs (Previous year Rs. 116.40 lakhs), Dinesh Family Trust Rs. 59.07 lakhs (Previous year Rs.. 59.07 lakhs), Shirish Family Trust Rs. 70.34 lakhs (Previous year Rs. 70.34 lakhs), D. B. Mody HUF Rs. 36.71 lakhs (Previous year Rs. 36.71 lakhs), S. B. Mody HUF Rs. 36.85 lakhs (Previous year Rs. 36.85 lakhs).

8. Sales Promotion expense paid to OOO Unique Pharmaceutical Laboratories Rs. 2,376.53 lakhs (Previous year Rs. 1,457.90 lakhs), Biotech Laboratories (Pty.) Ltd. Rs. (11.94) lakhs (Previous year Rs. Nil).

9. Reimbursement of Expense to OOO Unique Pharmaceutical Laboratories Rs. 9.34 lakhs (Previous year Rs. Nil), Biotech Laboratories (Pty.) Ltd. Rs. (0.23) lakhs (Previous year Rs. 15.41 lakhs).

10. Royalty paid to Unique Pharmaceutical Laboratories Ltd. Rs. 1103.55 lakhs (Previous year Rs. 14.16 lakhs).

11. Employee benef t expense paid to Shri Jyotindra B. Mody Rs. 43.24 lakhs (Previous year Rs. 38.61 lakhs), Shri Dinesh B. Mody Rs. 43.24 lakhs (Previous year Rs. 38.61 lakhs), Shri Shirish B. M ody Rs. 43.24 lakhs (Previous year Rs. 38.61 lakhs), Shri Pranabh D. Mody Rs. 20.88 lakhs (Previous year Rs. 14.39 lakhs), Shri Nirav Mody Rs. 11.79 lakhs (Previous year Rs. 10.48 lakhs).

12. Remuneration paid to Shri Jyotindra B. Mody Rs. 360.35 lakhs (Previous year Rs. 321.75 lakhs), Shri Dinesh B. Mody Rs. 360.36 lakhs (Previous year Rs. 321.75 lakhs), Shri Shirish B. Mody Rs. 360.36 lakhs (Previous year Rs. 321.75 lakhs), Shri Pranabh D. Mody Rs. 154.25 lakhs (Previous year Rs. 106.72 lakhs), Shri Nirav Mody Rs. 87.36 lakhs (Previous year Rs. 77.55 lakhs).

13. Interest on deposit paid to Shri Jyotindra B. Mody Rs. 9.32 lakhs (Previous year Rs. 8.77 lakhs), Ms. Deepali Jasani Rs. 12.40 lakhs (Previous year Rs. 11.48 lakhs), D. B. Mody HUF Rs. 30.60 lakhs (Previous year Rs. 30.60 lakhs), Jyotindra Mody Holdings Pvt. Ltd. Rs. Nil (Previous year Rs. 18.88 lakhs), Bharati S. Mody Investments Pvt. Ltd. Rs. Nil (Previous year Rs. 27.26 lakhs).

14. Equity Contribution was made to J.B. Healthcare Pvt. Ltd., Jersey Rs. 9.39 lakhs (Previous year Rs. Nil), J. B. Chemicals & Pharmaceuticals Pvt. Ltd., Singapore Rs. 3.55 lakhs (Previous year Rs. 2.78 lakhs), Unique Pharmaceuticals Laboratories LLC, Ukraine Rs. 9.36 lakhs (Previous year Rs. 16.52 lakhs).

15. Loan repayment from J.B. Chemicals & Pharmaceuticals Pvt. Ltd. Rs. 0.26 lakhs (Previous year Rs. Nil).

16. Expenses incurred on behalf of subsidiary company Unique Pharmaceutical Laboratories FZE Rs. 36.39 lakhs (Previous year Rs. Nil).

17. Amount payable as on 31st March, 2014 to Synit Drugs Pvt. Ltd. Rs. 40.00 lakhs (Previous year Rs. 40.00 lakhs), Biotech Laboratories (Pty.) Ltd. Rs. 2.00 lakhs (Previous year Rs. Nil), OOO Unique Pharmaceutical Laboratories Rs. 666.17 lakhs (Previous year Rs. Nil), Unique Pharmaceutical Laboratories Ltd. Rs.164.63 lakhs (Previous year Rs. Nil), If unik Pharmaceuticals Ltd. Rs. 65.00 lakhs (Previous year Rs. 65.00 lakhs), Namplas Chemicals Pvt. Ltd. Rs. 9.71 lakhs (Previous year Rs. 15.97 lakhs), Raptim Research Ltd. Rs. Nil (Previous year Rs. 2.43 lakhs), Lekar Pharma Ltd. Rs. 274.61 lakhs (Previous year Rs. 487.27 lakhs), Shri Jyotindra B. Mody Rs. 91.72 lakhs (Previous year Rs. 103.09 lakhs), Shri Dinesh B. Mody Rs. 27.86 lakhs (Previous year Rs. 25.29 lakhs), Shri Shirish Mody Rs. 0.50 lakhs (Previous year Rs.0.50 lakhs), Shri Pranabh D. Mody Rs. Nil (Previous year Rs. 98.48 lakhs), Mrs. Kumud D. Mody Rs. 53.39 lakhs (Previous year Rs. 61.77 lakhs), Mrs. Bharati S. Mody Rs. 34.00 lakhs (Previous year Rs. 37.28 lakhs), Mrs. Purvi Asher Rs. 2.09 lakhs (Previous year Rs. 2.44 lakhs), Mrs. Deepali A. Jasani Rs. 132.99 lakhs (Previous year Rs. 116.10 lakhs), Mrs. K. V. Gosalia Rs. 29.10 lakhs (Previous year Rs. 29.10 lakhs), D. B. Mody HUF Rs. 306.00 lakhs (Previous year Rs. 306.00 lakhs), S.B. Mody HUF Rs. 54.91 lakhs (Previous year Rs. 66.90 lakhs).

18. Amount receivable as on 31st March, 2014 from OOO Unique Pharmaceutical Laboratories Rs. 4,441.09 lakhs (Previous year Rs. 2,118.20 lakhs), Unique Pharmaceutical Laboratories FZE Rs. 36.39 lakhs (Previous year Rs. Nil), J.B. Chemicals & Pharmaceuticals Pvt. Ltd., Singapore Rs. Nil (Previous year Rs. 11.51 lakhs), Jyotindra Family Trust Rs. 21.13 lakhs (Previous year Rs. 21.13 lakhs), Dinesh Family Trust Rs. 8.49 lakhs (Previous year Rs. 8.49 lakhs), Shirish Family Trust Rs. 8.49 lakhs (Previous year Rs. 8.49 lakhs), Jyotindra Mody Holdings Pvt. Ltd. Rs. Nil (Previous year Rs. 1.34 lakhs), Dinesh Mody Securities Pvt. Ltd. Rs. Nil (Previous year Rs. 1.34 lakhs), Shirish B. Mody Investments Pvt. Ltd.Rs. Nil (Previous year Rs. 1.34 lakhs), Jyotindra Mody Enterprise LLP Rs. 1.34 lakhs (Previous year Rs. Nil), Dinesh Mody Ventures LLP Rs. 1.34 lakhs (Previous year Rs. Nil), Shirish Mody Enterprises LLP Rs. 1.34 lakhs (Previous year Rs. Nil), Biotech Laboratories (Pty.) Ltd. Rs. 1,331.30 lakhs (Previous year Rs. 598.93 lakhs), Lekar Pharma Ltd. Rs. Nil (Previous year Rs. 103.58 lakhs), D. B. Mody HUF Rs. 12.64 lakhs (Previous year Rs. 12.64 lakhs), S. B. Mody HUF Rs. 12.64 lakhs (Previous year Rs. 12.64 lakhs).

19. Disclosures as required by Accounting Standard 19,"Leases", notif ed under sub-section (3C) of Section 211 of the Companies Act,1956, are given below:

i. The company has taken certain residential and of ce premises on operating lease/leave and license agreements having non-cancellable/ not non- cancellable (range between 11 months and 3 years are renewable by mutual consent on mutually agreeable terms).

ii. Lease payment in respect of non-cancellable lease amounts to Rs. 72.22 lakhs (Previous year Rs. 38.41 lakhs) is included under the head Compensation Rent in Note "26".

The minimum future lease rentals payable in respect of non-cancellable lease are as follows:

20. FINANCIAL AND DERIVATIVE INSTRUMENTS

a) Derivative Instruments:

The company has entered into forward contract to of set foreign currency risks arising from the amounts denominated in currencies other than the Indian rupee. The counter party to such forward contract is a bank. These contracts are entered into to hedge the foreign currency risks. Details of forward contracts outstanding as at the year end:

21. Ministry of Corporate Af airs, Govt. of India, vide General Circular No. 2 and 3 dated 08-02-2011 and 21-02-2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulf llment of conditions stipulated in the circular. The company has satisf ed the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.


Mar 31, 2013

1. The contingent liabilities not provided for:

1.1 Letter of Credit opened by banks Rs. 2,942.63 lakhs (Previous year Rs. 845.70 lakhs).

1.2 Guarantee issued by the bank on behalf of the company Rs. 1,450.54 lakhs (Previous year Rs. 1,426.82 lakhs).

1.3 Central Excise Demand / show cause notice of Rs. 183.39 lakhs (Previous year Rs. 485.39 lakhs).

1.4 Sales Tax Demand of Rs. 7.95 lakhs (Previous year Rs. 22.13 lakhs) being disputed in appeal. (Against which the company has made pre-deposit of Rs. 2.11 lakhs).

1.5 Corporate guarantee provided for the benefit of the subsidiary company Rs. Nil (Previous year Rs. 2,388.47 lakhs).

1.6 The company had purchased fixed assets under the "Export Promotion Capital Goods Scheme" (EPCG) in year 2011-2012 that has resulted in saving of duty of Rs. 349.92 lakhs. As per the terms of the license granted under the scheme, the company has undertaken to achieve export commitment of Rs. 2,099 lakhs over the export obligation period of 6 years, which expires on 2nd November, 2017.

In the event of company being unable to execute its export obligations by this period, the company shall be liable to pay custom duty for unfulfilled export obligation along with interest after expiry of the export obligation period. In fact, the company has already fulfilled export obligation to the extent of 45% in percentage terms within the first year itself.

1.7 The company has received from Cilag GmbH International ("Cilag") a notice of claims under business Sale and Purchase Agreement dated May 23, 2011 and Supply Agreement dated May 23, 2011 for estimated amount of US$ 33.30 million (which appears to coincide with the amount held in the escrow account) and US$ 5 million respectively. The company has contested these claims. The parties are in discussion to resolve the differences. The amount in this regard is not fairly ascertainable.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 607.31 lakhs (Previous year Rs. 435.37 lakhs)

3. Travelling expenses of field personnel include expenses on stationery and printing, conveyance, postage, miscellaneous expenses, etc.

4. Adjustment relating to previous year amounted to Rs. Nil (Net Debit) {Previous year Rs. 10.10 lakhs (Net Debit)}. The same has been debited/credited under respective heads of accounts.

5. The Pharmaceutical Division of Unique Pharmaceutical Laboratories Ltd. (UPLL) which was acquired by the company on a going concern basis, has received demand notices from Dept. of Chemicals & Fertilizers, Govt. of India, New Delhi demanding a sum of Rs. 461.47 lakhs in respect of the bulk drug Metronidazole and a further sum of Rs. 591.05 lakhs in respect of the bulk drug Oxyphenbutazone. These amounts were claimed on hypothetical basis in 1996, under para 7(2) of DPCO 79 read with para 14 of DPCO 87 and para 12 of DPCO 95, long after repeal of DPCO 79 and DPCO 87 and gains allegedly notionally made by it by procuring the bulk drugs at alleged lower cost. UPLL has filed review petition against each of these claims disputing the jurisdiction, power and legal or rational basis for making such demands, particularly in view of the repeal of DPCO 79 and DPCO 87. The company has filed writ petitions bearing No. 446 of 2008 in respect of demand for Oxyphenbutazone & writ petition No. 2623 of 2007 in respect of demand for Metronidazole in Bombay High Court. These writ petitions have been admitted and the Hon''ble High Court has restrained the Government from adopting coercive steps to recover the amount till the disposal of the writ petition on the company furnishing security as per the Orders. The company has already furnished the bank guarantee as security. As per the legal advice received by the company, there is no liability and accordingly no provision is being made in the accounts for these claims and demands.

4. The amount of excise duty disclosed as deduction from turnover is the excise duty for the year, except the excise duty related to the difference between the closing stock and opening stock and excise duty paid but not recovered, which has been disclosed in the (increase )/decrease in stock and other expenses respectively. (Increase)/decrease in stocks include excise duty on finished goods (net) Rs. 11.70 lakhs (Previous year Rs. 8.18 lakhs).

5. EMPLOYEE BENEFITS:

The disclosures as required as per the revised AS 15 are as under:

a) Defined Contribution Plan

Contribution to Defined Contribution Plan, recognized as expense for the year are as under:

Expected employers contribution for the next year is Rs. 100.73 lakhs (Previous year Rs. 85.18 lakhs).

Investment details:

The company made annual contributions to the LIC of an amount advised by the LIC. The company was not informed by LIC of the investments made or the break-down of plan assets by investment type.

6. SEGMENT REPORTING:

The company has one segment of activity namely ''Pharmaceuticals''

7. RELATED PARTY DISCLOSURE

Related party disclosure as required by AS - 18, ''Related Party Disclosures'' notified by the Companies (Accounting Standard) Rules, 2006 are given below:

Names and Relationships of the Related Parties:

i) Subsidiary Companies:

a. OOO Unique Pharmaceutical Laboratories.

b. J. B. Healthcare Pvt. Ltd.

c. J. B. Chemicals & Pharmaceuticals Pvt. Ltd.

d. LLC Unique Pharmaceutical Laboratories.

ii) Associate Concerns / Trusts / Companies / Joint Venture:

a. Mody Trading Company

b. Mody Brothers

c. Jyotindra Family Trust

d. Dinesh Family Trust

e. Shirish Family Trust

f. Biotech Laboratories (Pty.) Ltd.

g. Jyotindra Mody Holdings Pvt. Ltd.

h. Ansuya Mody Securities Pvt. Ltd.

i. Dinesh Mody Securities Pvt. Ltd.

j. Kumud Mody Securities Pvt. Ltd.

k. Shirish B. Mody Investments Pvt. Ltd.

l. Bharati S. Mody Investments Pvt. Ltd.

m. J. B. Mody Enterprises Pvt. Ltd.

n. Ansuya Mody Enterprises Pvt. Ltd.

o. Dinesh Mody Ventures Pvt. Ltd.

p. Kumud Mody Ventures Pvt. Ltd.

q. Shirish Mody Enterprises Pvt. Ltd.

r. Bharati Mody Ventures Pvt. Ltd.

s. Synit Drugs Pvt. Ltd.

t. Unique Pharmaceutical Laboratories Ltd.

u. Ifiunik Pharmaceuticals Ltd.

v. Namplas Chemicals Pvt. Ltd.

w. Raptim Research Ltd.

x. Gemma Jewellery Pvt. Ltd.

y. Lekar Pharma Ltd.

iii) Key Management Personnel:

a. Shri Jyotindra B. Mody

b. Shri Dinesh B. Mody

c. Shri Shirish B. Mody

iv) Relative of Key Management Personnel:

a. Mr. Pranabh D. Mody

b. Mrs. Kumud D. Mody

c. Mrs. Bharati S. Mody

d. Mrs. Pallavi B. Mehta

e. Mrs. Purvi U. Asher

f. Mrs. Priti R. Shah

g. Mr. Nirav S. Mody

h. Mrs. K. V. Gosalia

i. D. B. Mody HUF

j. S. B. Mody HUF

8. Disclosures as required by Accounting Standard 19, "Leases", notified under sub-section (3C) of Section 211 of the Companies Act,1956, are given below:

i. The company has taken certain residential and office premises on operating lease / leave and license agreements having non cancellable/ not non-cancellable (range between 11 months and 3 years are renewable by mutual consent on mutually agreeable terms).

ii. Lease payment in respect of non cancellable lease amounts to Rs. 38.41 lakhs (Previous year Rs. 79.31 lakhs) is included under the head Compensation Rent in Note "26"

9. FINANCIAL AND DERIVATIVE INSTRUMENTS

a) Derivative Instruments:

The company has entered into forward contract to offset foreign currency risks arising from the amounts denominated in currencies other than the Indian rupee. The counter party to such forward contract is a bank. These contracts are entered into to hedge the foreign currency risks. Details of forward contracts outstanding as at the year end:

10. Ministry of Corporate Affairs, Govt. of India, vide General Circular No. 2 and 3 dated 08-02-2011 and 21-02-2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

11. Figures of previous year have been re-grouped, re-arranged and recast, wherever considered necessary.

12. Figures in brackets indicate corresponding figures of Previous year.


Mar 31, 2012

1.1 Shares reserved for issue under ESOP

In the year 2004, the company has instituted the Employees Stock Option Scheme, under which 25,00,000 equity shares of Rs 2 each have been reserved. Under the Scheme, the options are granted at an amount equal to ninety five percent of the average daily closing price of the company's shares quoted on National Stock Exchange of India Ltd. during the period of twelve weeks preceding the date of grant.These options vest in four equal instalments and subject to other provisions of the Scheme, are exercisable within a period of five years from the respective date of vesting.

TERMS OF REPAYMENT

2. 1 Vehicle loans are secured by hypothecation of vehicles and same is repayable in sixty equivated monthly instalment inclusive of interest on reducing balance.

2.2 Repayable in yearly instalment of Rs 16.33 lakhs.

# Working capital borrowings from the banks are secured by first charge on pari passu basis by way of hypothecation of company's current assets both present and future and by way of joint equitable mortgage of company's immovable properties situated at Thane and Belapur in the state of Maharashtra, Ankleshwar & Panoli (except for movable fixed assets located at plot no. 4, GIDC Phase IV, Panoli, Gujarat) in the state of Gujarat and Daman in the Union Territory of Daman.

3. The contingent liabilities not provided for:

3.1 Letter of Credit opened by banks Rs 845.70 lakhs (Previous year Rs 728.52 lakhs).

3.2 Guarantees issued by the banks on behalf of the company Rs 1,426.82 lakhs (Previous year Rs 1,192.61 lakhs).

3.3 Central Excise Demand/show cause notice of Rs 485.39 lakhs (Previous year Rs 349.79 lakhs).

3.4 Sales Tax Demand of Rs 22.13 lakhs (Previous year Rs 635.95 lakhs) being disputed in appeal.

4. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs 435.37 lakhs (Previous year Rs 1221.51 lakhs).

5. Travelling expenses of field personnel include expenses on stationery and printing, conveyance, postage, miscellaneous expenses etc.

6. Adjustment relating to Previous year amounted to Rs 10.10 lakhs (Net debit) {Previous year Rs 1.96 lakhs (Net debit)}. The same has been debited/credited under respective heads of accounts.

7. The Pharmaceutical Division of Unique Pharmaceutical Laboratories Ltd. (UPLL) which was acquired by the company on a going concern basis, has received demand notices from Dept. of Chemicals & Fertilizers, Govt. of India, New Delhi demanding a sum of Rs 461.47 lakhs in respect of the bulk drug Metronidazole and a further sum of Rs 591.05 lakhs in respect of the bulk drug Oxyphenbutazone. These amounts were claimed on hypothetical basis in 1996, under para 7(2) of DPCO 79 read with para 14 of DPCO 87 and para 12 of DPCO 95, long after repeal of DPCO 79 and DPCO 87 and gains allegedly notionally made by it by procuring the bulk drugs at alleged lower cost. UPLL has filed review petition against each of these claims disputing the jurisdiction, power and legal or rational basis for making such demands, particularly in view of the repeal of DPCO 79 and DPCO 87. The company has filed writ petitions bearing No. 446 of 2008 in respect of demand for Oxyphenbutazone & writ petition No. 2623 of 2007 in respect of demand for Metronidazole in Bombay High Court. These writ petitions have been admitted and the Hon'ble High Court has restrained the Government from adopting coercive steps to recover the amount till the disposal of the writ petition on the company furnishing security as per the orders. The company has already furnished the bank guarantee as security. As per the legal advice received by the company, there is no liability and accordingly no provision is being made in the accounts for these claims and demands.

8. During the year, the company sold its Russia-CIS OTC Business Undertaking and three brands viz. Doktor Mom, Rinza and Fitovit on worldwide basis, to Cilag GmbH International, Switzerland, a wholly owned subsidiary of Johnson & Johnson, pursuant to the agreements dated May 23, 2011. The said transaction was closed on July 14, 2011.The profit on sale of Russia-CIS OTC Business Undertaking (including the said three brands) has been arrived at after reducing the net worth of and expenses pertaining to the said Russia-CIS OTC business undertaking and the expenses relating to the said transaction from the consideration received.

A new in-house R&D Centre has been set up at 101/2 & 102/1, Daman Industrial Estate, Air Port Road, Village Kadaiya, Nani Daman (U.T.) on 1st October 2011 and necessary applications have been filed with the Department of Scientific and Industrial Research Technology Bhavan, New Mehrauli Road, New Delhi for recognition of this in-house R&D Unit.

9. The amount of excise duty disclosed as deduction from turnover is the excise duty for the year, except the excise duty related to the difference between the closing stock and opening stock and excise duty paid but not recovered, which has been disclosed in the (increase)/decrease in stock and other expenses respectively. (Increase)/decrease in stocks include excise duty on finished goods (net) Rs 8.18 lakhs (Previous year Rs 4.23 lakhs).

10. EMPLOYEE BENEFITS

The disclosures as required as per the revised AS 15 are as under:

11. SEGMENT REPORTING:

The company has one segment of activity namely "Pharmaceuticals".

12. RELATED PARTY DISCLOSURE

Related party disclosure as required by AS - 18, "Related Party Disclosures" notified by the Companies (Accounting Standard) Rules, 2006 are given below:

Names and Relationships of the Related Parties:

i) Subsidiary Companies:

a. OOO Unique Pharmaceutical Laboratories.

b. J.B. Healthcare Pvt. Ltd.

c. Unique Pharmaceuticals Laboratories S.R.L. (Wound up on 14-09-2011).

d. J. B. Chemicals & Pharmaceuticals Pvt. Ltd.

e. LLC Unique Pharmaceutical Laboratories (w.e.f. 12-12-2011).

ii) Associate Concerns/Trusts/Companies/Joint Venture

a. Mody Trading Company

b. Mody Brothers

c. Jyotindra Family Trust

d. Dinesh Family Trust

e. Shirish Family Trust

f. Biotech Laboratories (Pty.) Ltd.

g. J B SEZ Private Ltd.

h. Jyotindra Mody Holdings Pvt. Ltd.

i. Ansuya Mody Securities Pvt. Ltd.

j. Dinesh Mody Securities Pvt.Ltd.

k. Kumud Mody Securities Pvt. Ltd.

l. Shirish B. Mody Investments Pvt. Ltd.

m. Bharati S. Mody Investments Pvt. Ltd.

n. Synit Drugs Pvt. Ltd.

o. Unique Pharmaceutical Laboratories Ltd.

p. Ifiunik Pharmaceuticals Ltd.

q. Namplas Chemicals Pvt. Ltd.

r. Raptim Research Ltd.

s. Gemma Jewellery Pvt. Ltd.

t. Lekar Pharma Ltd.

u. J. B. Life Science Overseas Ltd.

(ceased to be an associated w.e.f. 30-3-2012).

iii) Key Management Personnel:

a. Shri Jyotindra B. Mody

b. Shri Dinesh B. Mody

c. Shri Shirish B. Mody

iv) Relative of Key Management Personnel:

a. Mr. Pranabh D. Mody

b. Mrs. Ansuya J. Mody

c. Mrs. Kumud D. Mody

d. Mrs. Bharati S. Mody

e. Mrs. Pallavi B. Mehta

f. Mrs. Purvi U. Asher

g. Mrs. Priti R. Shah

h. Mrs. Deepali A. Jasani

i. Mr. Nirav S. Mody

j. Mrs. K. V. Gosalia

k. Mrs. N. R. Mehta

l. D. B. Mody HUF

m. S. B. Mody HUF

Disclosure in respect of Material Related Party Transactions during the year:

1.Material/Goods sold to OOO Unique Pharmaceutical Laboratories, Moscow, Rs 4,261.80 lakhs (Previous year Rs 1,470.88 lakhs), Biotech Laboratories (Pty.) Ltd. Rs 1,161.76 lakhs (Previous year Rs 1,090.91 lakhs), Lekar Pharma Ltd. Rs 395.53 lakhs (Previous year Rs 445.79 lakhs).

2. Manufacturing charges received from Lekar Pharma Ltd. Rs 10.30 lakhs (Previous year Rs 11.98 lakhs).

3. Purchases from Lekar Pharma Ltd. Rs 3366.38 lakhs (Previous year Rs 3,003.93 lakhs).

4. Processing charges paid to Namplas Chemicals Pvt. Ltd. Rs 155.06 lakhs (Previous year Rs 125.22 lakhs).

5. Bio-equivalent study charges paid to Raptim Research Ltd. Rs 16.55 lakhs (Previous year Rs 98.17 lakhs).

6. Rent paid to Jyotindra Family Trust Rs 114.45 lakhs (Previous year Rs 95.53 lakhs), Dinesh Family Trust Rs 58.14 lakhs (Previous year Rs 48.80 lakhs), Shrish Family Trust Rs 69.20 lakhs, Previous year Rs 57.97 lakhs), D. B. Mody HUF Rs 36.06 lakhs (Previous year Rs 29.92 lakhs), S. B. Mody HUF Rs 36.21 lakhs (Previous year Rs 30.05 lakhs).

7. Royalty paid to Unique Pharmaceutical Laboratories Ltd. Rs 12.66 lakhs (Previous year Rs 613.25 lakhs).

8. Remuneration paid to Shri Jyotindra B. Mody Rs 126.70 lakhs (Previous year Rs 414.64 lakhs), Shri Dinesh B. Mody Rs 126.45 lakhs (Previous year Rs 414.64 lakhs), Shri Shirish B. Mody Rs 126.60 lakhs (Previous year Rs 414.64 lakhs), Shri Pranabh D. Mody Rs 120.74 lakhs (Previous year Rs 120.74 lakhs) and Shri Nirav S. Mody Rs 78.46 lakhs (Previous year Rs 65.13 lakhs).

9. Interest on deposit paid to Jyotindra Mody Holdings Pvt. Ltd. Rs 23.92 lakhs (Previous year Rs 22.15 lakhs), Ansuya Mody Securities Pvt. Ltd. Rs 24.20 lakhs (Previous year Rs 28.54 lakhs), Bharati S. Mody Investments Pvt. Ltd. Rs 41.50 lakhs (Previous year Rs 49.15 lakhs), Unique Pharmaceutical Laboratories Ltd. Rs 17.32 lakhs (Previous year Rs 20.50 lakhs), Ifiunik Pharmaceuticals Ltd. Rs 21.35 lakhs (Previous year Rs 39.50 lakhs), Shri Jyotindra B. Mody Rs 6.00 lakhs (Previous year Rs 4.50 lakhs), Shri Dinesh B. Mody Rs 2.68 lakhs (Previous year Rs 2.57 lakhs), Shri Shrish B. Mody Rs 2.22 lakhs (Previous year Rs 2.57 lakhs), Shri Pranabh D. Mody Rs 18.55 lakhs (Previous year Rs 59.00 lakhs), Mrs. Deepali A. Jasani Rs 13.73 lakhs (Previous year Rs 21.31 lakhs), D. B. Mody HUF Rs 44.40 lakhs (Previous year Rs 29.96 lakhs).

10. Equity Contribution was made to J. B. Healthcare Pvt. Ltd., Jersey Rs 6.35 lakhs (Previous year Rs 11.35 lakhs), J. B. Chemicals & Pharmaceuticals Pvt. Ltd., Singapore Rs 3.83 lakhs (Previous year Rs 0.46 lakhs), LLC Unique Pharmaceutical Laboratories, Ukraine Rs 2.49 lakhs (Previous year Rs Nil).

11. Refund of Equity contribution was received from Unique Pharmaceuticals Laboratories S.R.L., Romania Rs 72.90 lakhs (Previous year Rs Nil).

12. Loan was given to J. B. Chemicals & Pharmaceuticals Pvt. Ltd. Singapore Rs 0.25 lakhs (Previous year Rs 11.25 lakhs).

13. Amount payable as on March 31, 2012 to Jyotindra Mody Holdings Pvt. Ltd. Rs 230.00 lakhs (Previous year Rs 230.00 lakhs), Ansuya Mody Securities Pvt. Ltd. Rs 205.00 lakhs (Previous year Rs 275.00 lakhs), Bharati S. Mody Investments Pvt. Ltd. Rs 332.00 lakhs (Previous year Rs 487.00 lakhs), Unique Pharmaceutical Laboratories Ltd. Rs 150.00 lakhs (Previous year Rs 497.10 lakhs), Shri Jyotindra B. Mody Rs 58.20 lakhs (Previous year Rs 204.79 lakhs), Shri. Dinesh B. Mody Rs 22.96 lakhs (Previous year Rs 172.86 lakhs), Shri Pranabh D. Mody Rs 170.44 lakhs (Previous year Rs 221.24 lakhs), Mrs. Deepali A. Jasani Rs 104.62 lakhs (Previous year Rs 223.74 lakhs), Shri Nirav S. Mody Rs 90.25 lakhs (Previous year Rs 123.37 lakhs) and D. B. Mody HUF Rs 306.00 lakhs (Previous year Rs 306.00 lakhs).

14. Amount receivable as on March 31, 2012 from OOO Unique Pharmaceutical Laboratories Rs 1140.93 lakhs (Previous year Rs 17,233.75 lakhs), Biotech Laboratories (Pty.) Ltd., Rs 563.69 lakhs (Previous year Rs 518.90 lakhs), D. B. Mody HUF Rs 12.64 lakhs (Previous year Rs 12.64 lakhs), S. B. Mody HUF Rs 12.64 lakhs (Previous year Rs 12.64 lakhs).

13. The company has taken on operating lease certain assets. The total lease rent paid on the same amounting to Rs 513.32 lakhs (Previous year Rs 569.43 lakhs) is included under the head compensation rent and rates and taxes. The minimum future lease rentals payable in respect thereof are as follows:

14. Ministry of Corporate Affairs, Govt. of India, vide General Circular No. 2 and 3 dated 08-02-2011 and 21-02-2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

15. These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Companies Act, 1956. Previous year's figures have been recast/re-stated to conform to the classification of the current year.

16. Figures in brackets indicate corresponding figures of Previous year.


Mar 31, 2010

1.1 In the opinion of the Board, current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business and provisions for all the known liabilities and depreciation are adequate and not in excess of the amount reasonably necessary.

1.2 The contingent liabilities not provided for:

1.2.1 Letter of Credit opened by banks Rs. 1213.67 lakhs (Previous year Rs. 749.41 lakhs).

1.2.2 Guarantee issued by the Bank on behalf of the company Rs. 1339.10 lakhs (Previous yearRs. 1264.60 lakhs).

1.2.3 Guarantee given to a bank for loan availed of by a wholly owned subsidiary company Rs. Nil (Previous year Rs. 1521.60 lakhs).

1.2.4 Central Excise Demand of Rs. 55.30 lakhs (Previous year Rs. 61.37 lakhs).

1.2.5 Income Tax Demand of Rs. Nil (Previous year Rs. 23.74 lakhs).

2.2.6 Sales Tax Demand of Rs. 6.99 lakhs (Previous year Rs. 6.99 lakhs) being disputed in appeal (against which the company has made pre-deposit of Rs. 1.51 lakhs and has also furnished bank guarantees worth Rs. 5.23 lakhs).

2.1 Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 261.36 lakhs (Previous yearRs. 63.54 lakhs).

The above information regarding Micro, Small and Medium enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the Auditors.

2.2 Travelling expenses of field personnel include expenses on stationery and printing, conveyance, postage, miscellaneous expenses etc.

2.3 Adjustment relating to previous year amounted to Rs. 54.06 lakhs (Net Credit) (Previous yearRs. 1.32 lakhs Net Credit). The same has been debited/credited under respective heads of accounts.

2.4 The Pharmaceutical Division of Unique Pharmaceutical Laboratories Ltd. (UPLL) which was acquired by the company on a going concern basis, has received demand notices fromDept. of Chemicals & Fertilizers, Govt, of India, New Delhi demanding a sum of Rs. 461.47 lakhs in respect of the bulk drug Metronidazole and a further sum of Rs. 591.05 lakhs in respect of the bulk drug Oxyphenbutazone. These amounts were claimed on hypothetical basis in 1996, under para 7(2) of DPCO 79 read with para 14 of DPCO 87 and para 12 of DPCO 95, long after repeal of DPCO 79 and DPCO 87 and gains allegedly notionally made by it by procuring the bulk drugs at alleged lower cost. UPLL has filed review petition against each ofthese claims disputing the jurisdiction, power and legal or rational basis for making such demands, particularly in view of the repeal of DPCO 79 and DPCO 87. The company has filed writ petition bearing No. 446 of 2008 in respect of demand for Oxyphenbutazone & writ petition No. 2623 of 2007 in respect of demand for Metronidazole in Bombay High Court. These writ petitions have been admitted and the Honble High Court has restrained the Government from adopting coercive steps to recover the amount till the disposal of the writ petition on the company furnishing security as per the orders. The company has already furnished the bank guarantee as security. As per the legal advice received by the company, there is no liability and accordingly no provision is being made in the accounts for these claims and demands.

2.5 The company has not exercised the option available under notification No. G.S.R 225(E) dated March 31, 2009 issued by the Government of India optionally providing for a modification in the accounting of certain foreign currency items pursuant to AS-11 prescribed under Section 211(3C) of the Companies Act, 1956. Accordingly, the treatment in that respect continues to be in the conformity with AS-11.

2.6 The amount of excise duty disclosed as deduction from turnover is the Excise duty for the year, except the excise duty related to the difference between the closing stock and opening stock and excise duty paid but not recovered, which has been disclosed in the (increase)/ decrease in stock and other expenses respectively. (Increase)/ decrease in stocks include excise duty on finished goods (net) Rs. 2.45 lakhs (Previous year Rs. 0.97 lakhs).

2.7 Employees Benefits:

The disclosures as required as per the revised AS 15 are as under:

2.8 SEGMENT REPORTING:

The company has one segment of activity namely Pharmaceuticals.

2.9 (i) Loans to employees includes an amount of Rs. 4.92 lakhs (Previous year Rs. 9.96 lakhs) due from a director on account of a housing loan. The maximum amount due during the year Rs. 9.96 lakhs (Previous year Rs. 15.00 lakhs).

(ii) Deposits given by the company include Rs. Nil (Previous year Rs. 16.17 lakhs) given to the directors as security deposit under the leave and license agreement.

(iii) Deposits given by the company include Rs. 4.02 lakhs (Previous year Rs. 4.02 lakhs) being security deposit of Rs. 1.34 lakhs each given to Jyotindra Mody Holdings Pvt. Ltd., Dinesh Mody Securities Pvt. Ltd. and Shirish B. Mody Investments Pvt. Ltd.

(iv) The interest on fixed loans include Rs. 2.33 lakhs (Previous year Rs. 0.49 lakhs) credited to account of Managing Director on fixed deposit placed by him.

2.10 RELATED PARTY DIS CLOSURE

Related party disclosure as required by AS - 18, Related Party Disclosures notified by the Companies (Accounting Standard) Rules, 2006 are given below:

Names and Relationships of the Related Parties:

i) Subsidiary Companies:

a. J. B. Life Science Overseas Limited b. OOO Unique Pharmaceutical Laboratories c. J. B. Healthcare Pvt. Ltd. d. Unique Pharmaceutical Laboratories S.R.L.

ii) Associate Concerns / Trusts / Companies/ Joint Venture

a. Mody Trading Company b. Mody Brothers c. Jyotindra Family Trust d. Dinesh Family Trust e. Shirish Family Trust f. Biotech Laboratories (Pty.) Ltd. g. J B SEZ Pvt. Ltd. h. Jyotindra Mody Holdings Pvt. Ltd. i. Ansuya Mody Securities Pvt. Ltd. j. Dinesh Mody Securities Pvt. Ltd. k. Shirish B. Mody Investments Pvt. Ltd. l. Bharati S. Mody Investments Pvt. Ltd. m. Synit Drugs Pvt. Ltd. n. Unique Pharmaceutical Laboratories Ltd. o. Ifiunik Pharmaceuticals Ltd. p. Namplas Chemicals Pvt. Ltd. q. Raptim Research Ltd. r. Lekar Pharma Ltd.

iii) Key Management Personnel:

a. Shri Jyotindra B. Mody b. Shri Dinesh B. Mody c. Shri. Shirish B. Mody

iv) Relatives of Key Management Personnel:

a. Mr. Pranabh D. Mody b. Mrs. Ansuya J. Mody c. Mrs. Kumud D. Mody d. Mrs. Bharati S. Mody e. Mrs. Pallavi B. Mehta f. Mrs. Purvi U. Asher g. Mrs. Priti R. Shah h. Mrs. Deepali A. Jasani i. Mr. Nirav S. Mody j. Mrs. K. V. Gosalia k. Mrs. N. R. Mehta l. D. B.Mody-HUF m. S. B.Mody-HUF

2.11 Figures of previous year have been re-grouped, re-arranged and recast, wherever considered necessary.

2.12 Figures in brackets indicate corresponding figures of the previous year.

 
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