Notes to Accounts of Adline Chem Lab Ltd.

Mar 31, 2025

Note 5: Other equity

Refer to the statement of changes in equity for movement in Other equity.

Nature and purpose of reserves General reserve

General reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income. This can be utlised in accordance with the provisions of Companies Act.2013.

Security premium

The amount received in excess of face value of the equity shares, in relation to issuance of equity, is recognised in Securities Premium Reserve. It is utilised in accordance with the provisions of the Companies Act, 2013

Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions made to the shareholders.

B. Defined benefit plans:

The Company has following post employment benefits which are in the nature of defined benefit plans:

(a) Gratuity

The Company made provision for gratuity liability which is un funded.The scheme provides for payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in execess of six months. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and th related current service cost were measured using the Projected Unit Credit method as per actuarial valuation carried out at the balance sheet date.

The following tables sets out the status of the gratuity plan as required under IND AS-19 and the amounts recognized in the company''s financial statements as at 31st March, 2025.

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and cha assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present obligation calculated with the projected unit credit method at the end of the reporting period) has been applied while calculating the defined benefit liability recogn

The methods and types of assumptions used in preparing the sensitivity analysis did not change as compared to the prior year.

The expense of consumables stores and spares has increased in comparison to earlier year because of use of sublimation paper on starting of number of digital printing machines during the year for the first time, which has affected the increase in processing jobs charges reflected in revenue from operations in note no. 19.

Note 18 : Fair value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

a) In the principal market for the asset or liability, or

b) In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

a) Level 1 -- This includes financial instruments measured using quoted prices. The fair value of all equity instruments which are traded on the Stock Exchanges is valued using the closing price as at the reporting period.

b) Level 2 -- The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.

c) Level 3 -- If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

External valuers are involved, wherever required, for valuation of significant assets, such as properties, unquoted financial assets and significant liabilities. Involvement of external valuers is decided upon by the Company after discussion with and approval by the Company''s management. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. The Company, after discussions with its external valuers, determines which valuation techniques and inputs to use for each case.

At each reporting date, the Company analyses the movements in the values of assets and liabilities which are required to be remeasured or reassessed as per the Company''s accounting policies. For this analysis, the Company verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents. The Company also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

This note summarises accounting policy for fair value measurement. Other fair value related disclosures are given in the relevant notes.

Note 19 : Financial risk management

The Company''s principal financial liabilities comprise of loans and borrowings, trade payables and other financial liabilities. The loans and borrowings are primarily taken to finance and support the Company''s operations. The Company''s principal financial assets include loans, cash and cash equivalents, trade receivables and other financial assets.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management ensures that financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The risk management system is relevant to business reality, pragmatic and simple and involves the following:

Risk identification and definition: Focuses on identifying relevant risks, creating / updating clear definitions to ensureundisputed understanding along with details of the underlying root causes / contributing factors.

Risk classification: Focuses on understanding the various impacts of risks and the level of influence on its root causes. This involves identifying various processes generating the root causes and clear understanding of risk interrelationships.

Risk assessment and prioritisation: Focuses on determining risk priority and risk ownership for critical risks. This involves assessment of the various impacts taking into consideration risk appetite and existing mitigation controls.

Risk mitigation: Focuses on addressing critical risks to restrict their impact(s) to an acceptable level (within the defined risk appetite). This involves a clear definition of actions, responsibilities and milestones.

Risk reporting and monitoring: Focuses on providing to the Board periodic information on risk profile evolution and mitigation plans.

1. Market Risk

The Company has assessed its exposure to market risk. Based on this assessment, the Company is not significantly exposed to market risk. Accordingly, detailed market risk disclosures, including sensitivity analyses, are not applicable.

2 Credit Risk

The Company has evaluated its exposure to credit risk. Based on this evaluation, the Company is not significantly exposed to credit risk from its operating or financing activities. Accordingly, detailed credit risk disclosures, including expected credit loss analysis, are not applicable.

3 Liquidity Risk

The principal sources of liquidity of the Company are cash and cash equivalents, borrowings and the cash flow that is generated from operations. It believes that current cash and cash equivalents, borrowings and cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low.

The following table shows the maturity analysis of financial liabilities of the Company based on contractually agreed undiscounted cash flows as at the Balance Sheet date

Note 20: Capital Management

The primary objective of capital management is to maintain a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value, safeguard business continuity and support the growth of the Company. It determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The funding requirements are met through equity and operating cash flows generated. It is not subject to any externally imposed capital requirements.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes, within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31,2025 and March 31,2024

(Net debt/equity)

[Net debt: Non-current borrowings- Deposits/Margin Money against Long Term Borrowings [Equity: Equity share capital Other equity]

(EBIT/(Net finance charges Scheduled principal repayments of non current borrowings (excluding prepayments) during the period))

[EBIT: Profit before taxes /(-) Exceptional items Net finance charges]

[Net finance charges: Finance costs ]

Profit after tax (PAT)/Average Equity)

[Equity: Equity share capital Other equity]

(Sales (including sales & services)/Average Inventory )

[Turnover: Sales (including Sales & Services]

(Sales (including sales & services)/Average Debtors )

[Turnover: Sales (including Sales & Services]

(Average Trade Payables/Expenses in days)

[Expenses: Total Expenses - Finance Cost - Depreciation and Amortisation Expense -Balances Written off -Other expenses with respect to Royalty, Rates & Taxes, Provision for Doubtful Debts & Advances, Provision for Impairment and Foreign Exchange Gain/Loss, Loss on sale of fixed assets]

working capital/Turnover

[Working capital: Current assets - Current liabilities]

[Turnover: Sales (including Sales & Services]

(Net profit after tax/Turnover)

[Turnover: Sales (including Sales & Services]

(EBIT/Average capital employed)

[Capital Employed: Equity share capital Other equity Non current borrowings

Current borrowings]

[EBIT: Profit before taxes /(-) Exceptional items Net finance charges

((Net gain/(loss) on sale fair value changes of mutual funds)/Average investment funds in current and non-current investments)

---

Mar 31, 2024

m. Contingent Liabilities

These are disclosed by way of Notes appended to the Balance Sheet. Provision is made in the Accounts
in respect of items which are likely to fructify after the end of the year but before finalization of
accounts to the extent such items have material effect on the position stated in the Balance Sheet.

n. Deferred Revenue Expenses

Product Launching/ Development Expenses, Process know-how Expenses, Amount paid towards
voluntary Retirement Scheme and Debenture Issue Expenses are amortized over a period not exceeding
ten years. The company has been advised that all the expenses have created valuable Technical Know
How and Commercial Rights conducive to the business of the company and therefore entire balance of
deferred revenue expenses has been transferred to Technical Know How and commercial right. The
figures for the previous year have been regrouped wherever necessary to make figures comparable for
the financial year under review. However the figures for the previous year are strictly not comparable
with figures for the financial year under review because during the financial year under review the
company has discontinued manufacturing operations with effect from November 2019 and has disposed
of its industrial undertaking situated at Rakanpur, Ahmedabad.

o. Borrowing costs

Borrowing cost of working capital management is charged against the profit for the year in which it is
incurred. Borrowing cost attributable to acquisition of an asset which takes substantial period of time to
getready for Its intended use is capitalized as part of the cost of such an asset.

p. Accounting for Taxes on Income

Current tax is determined as the amount of tax payable in respect of taxable income for the period.
Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on
timing differences, being the differences between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent periods.

1. In compliance with the Accounting Standard relating to Accounting for Taxes on Income - AS 22'' issued
by the Institute of Chartered Accountants of India(ICAI), the Company has provided deferred tax Rs.Nil
(Previous Year Rs.Nil ) in the statement of Profit & Loss towards deferred tax liabilities for the year ended
31st March 2024. The Company in view of disposal of the industrial undertaking and having regard to the
exceptional items of gain and loss, is in process of appraising the deferred tax asset/liability and final entry
shall be made in the accounts on ascertaining the amount in respect of deferred tax liability / asset. The
company under the circumstances has written off balance of Rs. Nil/- (Previous year Nil) in the deferred tax
liabilities.

There was a credit balance of Rs.3828.28 (in thousands) as on 1st april 2022 in favor of M/s Kamron
Healthcare Private Limited , a company in which two directors of the company are also directors and the
company had further received Rs. 1260.93 up to

1.31st August 2022 from the said company and accordingly as on 31st August 2022 there was credit balance
of Rs. 508.92 in favour of KHPL. The company on basis of mutual understanding has written of the credit
balance of Rs. 508.92 and transferred to the statement of profit and loss. The company between 1st
September 2022 and 31st

March 2023 received further loan of Rs.452.04 which has been shown as short term borrowings.

NOTE: The management of the company in consultation with the statutory auditors have not determined
remuneration payble to the auditors in view of complete closure of the business. Remuneration on its
determination and approval by the shareholders shall be paid to the statutory auditors.

(Amount in Thousands.)

Notes 17 EARNINGS PER SHARE(EPS):

Earnings per share is calculated by dividing the profit attributable to the equity shareholders by the
weighted average number of equity shares Outstanding during the year, asunder:

Notes18 EMPLOYEE BENEFITS

Contributions are made to Recognized Provident Fund/Government Provident Fund and Family Pension
Fund which covers all regular employees. Contribution is also made in respect to executives to a Recognized

Superannuation Fund. While both the employees and the Company make predetermined contributions to
the Provident Fund, contribution other Family Pension Fund and Superannuation Fund are made only by the
Company. The contributions are normally based on certain proportion of the employee''s salary. Amount
recognized as expense in respect of the defined contribution plans, aggregate to Rs. 6.54/- (previous year,
Rs. 79.63/-).

Provisions are made in respect of gratuity based upon management of the company valuation done at the
end of every financial year by the management of the company. Major drivers in management assumptions,
typically, are years of service and employee compensation. Gains and losses on changes in management
assumptions are accounted for in the Statement of Profit and Loss.

The charge on account of provision for gratuity and leave encashment has been included in ''Contribution to
provident fund and other funds'' and ''Salaries, wages and bonus'' respectively.

Notes forming part of Financial Statements (Contd.) for the year ended 31stMarch 2024
Notes 19 CONTINGENT LIABILITIES

There is no contingent liability as at the end of the financial year under review.

Note: Details of contingent liabilities have been provided on basis of information provided by the
management of the company and without independent verification by the statutory auditors.

Notes 20 RELATED PARTY TRANSACTIONS

Names of the related party and nature of relationship where control exists: -

I. subsidiary company - Nil

II. Associated Company/ Enterprise where common control exists.

1) Centis Lifecare Private Limited (Ceased w.e.f 28-02-2024)

2) Kamron Healthcare Private Limited (Ceased w.e.f 28-02-2024)

For DEEPAK SONI & ASSOCIATES

Chartered Accountants
(FirmRegistrationNo.102250W)

Deepak Soni Sarang B Pathak Hemant Amrish Parikh

(Proprietor) Managing Director Director

Membership No. 31138 (Din: 02663344) (Din: 00027820)

UDIN No.: -24031138BKFSDJ5827

Ahmedabad, Ritu Singh Kuldip A Parekh

Dated, 23 May ,2024 Company Secretary CFO

---

Mar 31, 2015

Note 01 CORPORATE INFORMATION

Kamron Laboratories Limited (the Company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on BSE Limited, Ahmedabad Stock Exchange Limited and Delhi Stock Exchange Limited. The Company was established in 1988, Kamron Laboratories Ltd has a high-tech Pharmaceutical manufacturing Plant.

A. Terms / rights attached to equity shares:

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each equity shareholder is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend if any proposed by the Board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March 2015, the amount of dividend, per share, recognized as distributions to equity shareholders is Rs. Nil (year ended 31st March, 2014, Rs. Nil).

1. Certain Fixed Assets of the Company viz the Plant & Machinery, Land, Factory Building and Non- factory Building were revalued during the year ended 31st March, 1998 on the basis of their replacement value as of 31st March,1998 determined by the approved valuer and the surplus arising on such revaluation amounting to Rs.1,43,62,580/-in the accounts of the Company have been credited to the revaluation reserve and the said fixed assets have been shown at revalued figures.

1. The company during the year ended 31st March 2014 had adopted programme of substantial expansion of marketing. The company had introduced certain new products and had also entered into certain new regional areas. The company with a view to expanding the regional market and with a view to introducing new products had expended substantially on salary of marketing staff, allowances of marketing staff, commission, traveling of marketing staff. The management of the company is of the view that the company shall continue to enjoy benefits of the expenses for the subsequent years and therefore on basis of appraisal of the expenses and considering the enduring nature of the expenses the company had transferred the aggregate expenses i.e. Rs. Nil (Previous Year Rs. 94,78,145/-) to Deferred Revenue Expenditure. The management of the company is of the opinion that the company shall be able to enjoy the benefits for the next ten years and therefore the company has decided to amortize expenditure at the rate of 10% per annum commencing from financial year 2014-15

Note 2 EMPLOYEE BENEFITS:

Contributions are made to Recognized Provident Fund / Government Provident Fund and Family Pension Fund which covers all regular employees. Contribution is also made in respect of executives to a Recognized Superannuation Fund. While both the employees and the Company make predetermined contributions to the Provident Fund, contribution to the Family Pension Fund and Superannuation Fund are made only by the Company. The contributions are normally based on a certain proportion of the employee's salary. Amount recognized as expense in respect of these defined contribution plans, aggregate to Rs.788232/- (previous year, Rs. 798470/-).

Provisions are made to in respect of gratuity based upon actuarial valuation done at the end of every financial year by the management of the company. Major drivers in actuarial assumptions, typically, are years of service and employee compensation. Gains and losses on changes in actuarial assumptions are accounted for in the Statement of Profit and Loss.

The charge on account of provision for gratuity and leave encashment has been included in 'Contribution to provident fund and other funds' and 'Salaries, wages and bonus' respectively.

Note 3 LEASES

(a) The Company has taken office, under operating lease or leave and license agreement. The agreement is generally cancelable in nature and range between 11 months and 48 months. The leave and license agreement is generally renewable or cancelable at the option of the Company or the lessor. The lease payment recognised in the Statement of profit and loss is Rs. Nil (previous year Rs. 1,20,000/-).

Note 4 SEGMENT INFORMATION

Primary

The Company is engaged primarily in business of manufacturing pharmaceutical products.

As at As at 31st March, 2015 31st March, 2014

Note 5 CONTINGENT LIABILITIES

In respect of:

a. Excise matters disputed in appeal: 826339 826339

These relate to the availed value based exemption up to clearance value of Rs.100 Lacs (pending before the Commissioner (Appeals-III) central excise.Commissioner) and permit fee on purchase of alcohol

b. Claims against the Company not acknowledged as debts - - Labour matters involving issues like regularization of employment, termination of employment, compensation against severance, etc.

c. Sales-tax matters disputed in appeal. 11032991 11032991

These relate to classification of goods and consequent dispute ex parte order 2006-07 (pending before the Commercial Tax Commissioner Gandhinagar)

---

Mar 31, 2014

Kamron Laboratories Limited (the Company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the Bombay, Ahmedabad and Delhi stock exchanges. The Company was established in 1988, Kamron Laboratories Ltd has a high-tech Pharmaceutical manufacturing Plant.

As at As at 31st March, 2014 31st March, 2013

Note 2 CONTINGENT LIABILITIES

In respect of:

a. Excise matters disputed in appeal: 826339 826339

These relate to the availed value based exemption up to clearance value of Rs.100 Lacs (pending before the Commissioner (Appeals-III) central excise. Commissioner) and permit fee on purchase of alcohol

b. Claims against the Company not acknowledged as debts - - Labour matters involving issues like regularization of employment,termination of employment, compensation against severance, etc.

c. Sales-tax matters disputed in appeal. 11032991 11032991

These relate to classification of goods and consequent dispute ex parte order 2006-07 (pending before the Commercial Tax Commissioner Gandhinagar)

Note 3 RELATED PARTY TRANSACTIONS

Names of the related party and nature of relationship where control exists:-

I. subsidiary Company Nil

II. Associated Company/ Enterprise where common control exists. Nil

III. Key management personnel

1. Kamlesh J.Laskari

2. Rohan K.Laskari

3. Sohan K.Laskari

IV. Relatives of Key management Personnel and their Enterprise.

1. Kamlesh J.Laskari (HUF)

2. Ranak K.laskari

3. Jagdish D.Laskari

4. Jagdish D.Laskari (HUF)

V Directors.

1. Kamlesh J.Laskari 2. Ranak K.Laskari

3. Dr.Mahendra P.Shah 4. Dr.S.L.Chopra

5 Dr.Atul N.Parikh 6. Mr.Haresh.S.Parikh

7. Rohan K Laskari 8. Sohan K Laskari

Note 4

The Revised Schedule VI has become effective from 1st April 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

---

Mar 31, 2013

Notes 01 CORPORATE INFORMATION

Kamron Laboratories Limited (the Company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the Bombay, Ahmedabad and National stock exchanges. The Company was established in 1988, Kamron Laboratories Ltd has a high-tech Pharmaceutical manufacturing Plant.

Notes 02 EMPLOYEE BENEFITS:

Contributions are made to Recognized Provident Fund / Government Provident Fund and Family Pension Fund which covers all regular employees. Contribution is also made in respect of executives to a Recognized Superannuation Fund. While both the employees and the Company make predetermined contributions to the Provident Fund, contribution to the Family Pension Fund and Superannuation Fund are made only by the Company. The contributions are normally based on a certain proportion of the employee''s salary. Amount recognized as expense in respect of these defined contribution plans, aggregate to Rs.688359/- (previous year, Rs. 659966/-).

Provisions are made to in respect of gratuity based upon actuarial valuation done at the end of every financial year by the management of the company. Major drivers in actuarial assumptions, typically, are years of service and employee compensation. Gains and losses on changes in actuarial assumptions are accounted for in the Statement of Profit and Loss.

The charge on account of provision for gratuity and leave encashment has been included in ''Contribution to provident fund and other funds'' and ''Salaries, wages and bonus'' respectively.

Notes 03 LEASES

(a) The Company has taken office, under operating lease or leave and license agreement. The agreement is generally cancelable in nature and range between 11 months and 48 months. These leave and license agreement is generally renewable or cancelable at the option of the Company or the lessor. The lease payment recognised in the profit and loss account is Rs. 1,20,000/- (previous year Rs. 3,60,000/- ).

Notes 04 SEGMENT INFORMATION

Primary

The Company is engaged primarily in business of manufacturing pharmaceutical products.

Notes 05

The Revised Schedule VI has become effective from 1st April 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

---

Mar 31, 2012

Notes 01 CORPORATE INFORMATION

Kamron Laboratories Limited (the Company) is a public limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the Bombay, Ahmedabad and National stock exchanges. The Company established in 1988, Kamron Laboratories Ltd is a high-tech Pharmaceutical manufacturing Plant.

1. Certain Fixed Assets of the Company viz the Plant & Machinery, Land, Factory Building and Non- factory Building were revalued during the year ended 31st March, 1998 on the basis of their replacement value as of 31st March, 1998 determined by the approved valuer and the surplus arising on such revaluation amounting to Rs. 1,43,62,580/- in the accounts of the Company have been credited to the revalution reserve and the said fixed assets have been shown at revalued figures.

2. The company has capitalized in aggregate Rs. 39,38,928/- (previous year Rs. 25,49,105/-) out of bank charges, interest on term loan and interest on deposits contending that corresponding funds have been utilized for the purpose of acquiring the fixed assets. The profit for the year under consideration accordingly stand increased to Rs. 39,38,928/-. Had the company not adopted the accounting policy of capitalizing the above stated expenses and had it followed accounting policy adopted hitherto the profit for the year under review would have been lower by Rs. 39,38,928/- having corresponding effect on balance in the Profit and Loss account.

1. No provision has been made in the accounts for Sundry Debtors of Rs. 1,64,626/- (previous year Rs. 1,64,626/-) and Loans & Advances of Rs. Nil (previous year Rs. Nil) considered Doubtful of recovery. However in the opinion of the directors, current assets including sundry debtors considered doubtful, loans and advances including considered doubtful have the value at which they are stated in the Balance Sheet if realised in the ordinary course of business and therefore no provision has been made in respect of such debtors and loans and advances. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

2. Balance of sundry debtors, sundry creditors, loans and advances are subject to confirmation and reconciliation. On receipt of confirmation and after making the reconciliation the necessary entries shall be made.

1. The company during the year under review has adopted programme of substantial expansion of marketing. The company has introduced certain new products and has also entered into certain new regional areas. The company with a view to expanding the regional market and with a view to introducing new products has expended substantially on salary of marketing staff, allowances of marketing staff, commission, travelling of marketing staff. The management of the company is of the view that the company shall continue to enjoy benefits of the expenses for the subsequent years and therefore on basis of appraisal of the expenses and considering the enduring nature of the expenses the company has transferred 40% the aggregate expenses i.e. Rs. 44,06,598/- (Previous Year Rs. 42,96,562/-) to Deferred Revenue Expenditure. The management of the company is of the opinion that the company shall be able to enjoy the benefits for the next ten years and therefore the company has decided to amortize expenditure at the rate of 10% per annum commencing from financial year 2012-13.

Notes 2 EMPLOYEE BENEFITS:

Contributions are made to Recognized Provident Fund/Government Provident Fund and Family Pension Fund which covers all regular employees. Contribution is also made in respect of executives to a Recognized Superannuation Fund. While both the employees and the Company make predetermined contributions to the Provident Fund, contribution to the Family Pension Fund and Superannuation Fund are made only by the Company. The contributions are normally based on a certain proportion of the employee's salary. Amount recognized as expense in respect of these defined contribution plans, aggregate to Rs.659966/- (previous year, Rs. 562415/-).

Provisions are made to a Recognized Gratuity based upon actuarial valuation done at the end of every financial year by the management of the Company. Major drivers in actuarial assumptions, typically, are years of service and employee compensation. Gains and losses on changes in actuarial assumptions are accounted for in the Statement of Profit and Loss.

The charge on account of provision for gratuity and leave encashment has been included in 'Contribution to provident fund and other funds' and 'Salaries, wages and bonus' respectively.

Notes 3 LEASES

(a) The Company has taken office under operating lease or leave and license agreements. The agreement is generally cancelable in nature and range between 11 months and 48 months. These leave and license agreements are generally renewable or cancelable at the option of the Company or the lessor. The lease payment recognised in the profit and loss account is Rs. 360000/- (previous year Rs. Nil lacs).

(b) The Company has not taken office any premise undernon-cancellable lease rental agreement. Details of minimum lease payments for non-cancellable lease are as under:

Notes 4 SEGMENT INFORMATION

Primary

The Company is engaged primarily in business of manufacturing pharmaceutical products.

Notes 5 CONTINGENT LIABILITIES

In respect of:

a. Excise matters disputed in appeal 826339 826339 These relate to the availed value based exemption up to clearance value of Rs.100 Lacs (pending before the Commissioner (Appeals-III) central excise.Commissioner) and permit fee on purchase of alcohol (pending before the High Court)

b. Claims against the Company not acknowledged as debts Labour matters Nil Nil involving issues like regularization of employment, termination of employment, compensation against severance, etc.

c. Sales-tax matters disputed in appeal 11032991 11032991 These relate to classification of goods and consequent dispute exparte odder 2006-07(pending before the Commercial Tax Commissioner Gandhinagar)

d. Income tax matters disputed in appeal 79500 79500 Note:- In all the above matters, the Company is hopeful of succeeding and as such does not expect any significant liability to crystallize.

Notes 6 RELATED PARTY TRANSACTIONS

Names of the related party and nature of relationship where control exists:-

I. subsidiary Company Nil

II. Associated Company/Enterprise where common control exists. Nil

III. Key management personnel

1. Kamlesh J.Laskari 2. Rahan K.Laskari

IV. Relatives of Key management Personnel and their Enterprise 1.Kamlesh J.Laskari 2. Ranak K.laskari 3. Sohan K.Laskari 4. Jagdish D.Laskari

V Directors.

1. Kamlesh J.Laskari

2. Ranak K.Laskari

3. Dr.Mahendra P.Shah

4. Dr.S.L.Chopra 5 Ram K.Khadka

in accordance with accounting standard 18' related party Disclosures' issued by the institute of chartered Accountants of India, the Company has complied the required information in the attached table. The following transactions were carried out with the related parties in the ordinary course of business.

Notes

1. There are no amounts written off or written back during the year in respect of debts due from or to related parties.

Notes 7

The Revised Schedule VI has become effective from 1st April 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification /disclosure.

---

Mar 31, 2011

1. Correponding figures of the previous year have been regrouped whenever necessary to make them comparable with current year figures.

2. Depreciation has been provided on the fixed assets on straight line method u/s 205(2)(a) of the Companies Act, 1956. at the rates prescribed in schedule XIV to the Companies Act,1956. Depreciation on the fixed assets added or sold during the year has been calculated on a pro-rata basis from the date of such addition or up to the date of sale.

3. Consequent upon the amedment to schedule XIV to the Companies Act, 1956 vide the notification dated 16th December,1993 issued by the Department of Company Affairs, the company has provided for depreciation on all the fixed assets at the straight line method at the rates as prescribed in the schedule XIV for the year under review.

4. The company has not made any provision in respect of compensation Rs.4,26,000/- (Previous year Rs. 4,26,000/-) determined to be payable by it vide order dated 6th January 2000 passed by Motor Accident Claims Tribunal, Jaipur city as the company has filed an appeal against the said order.

5. Certain Fixed Assets of the Company viz the Plant & Machinery, Land, Factory Building and Non- factory Building were revalued during the year ended 31st March, 1998 on the basis of their replacement value as of 31st March,1998 determined by the approved valuer and the surplus arising on such revaluation amounting to Rs.1,43,62,580/-in the accounts of the Company have been credited to the revaluation reserve and the said fixed assets have been shown at revalued figures.

6. The company during the year under review has adopted programme of substantial expansion of marketing. The company has introduced certain new products and has also entered into certain new regional areas. The company with a view to expanding the regional market and with a view to introducing new products has expended substantially on salary of marketing staff, allowances of marketing staff, commission, travelling of marketing staff. The management of the company is of the view that the company shall continue to enjoy benefits of the expenses for the subsequent years and therefore on basis of appraisal of the expenses and considering the enduring nature of the expenses the company has transferred 40% the aggregate expenses i.e. Rs. 42,96,562/- (Previous Year Rs. Nil) to Deferred Revenue Expenditure. The management of the company is of the opinion that the company shall be able to enjoy the benefits for the next ten years and therefore the company has decided to amortize expenditure at the rate of 10% per annum commencing from financial year 2011-12.

7. Interest includes interest of Rs.4.99 Lacs (2009-2010 Rs.5.63 Lacs) on Fixed Deposit of Rs.46.74 Lacs (2009-10 Rs.49.22 Lacs) paid / payable to Managing Director.

8. In compliance with the Accounting Standard relating to Accounting for Taxes on Income - AS 22' issued by the Institute of Chartered Accountants of India (ICAI), the Company has provided deferred tax Rs. Nil (Previous Year Rs.Nil) in Profit & Loss Accounts towards deferred tax liabilites for the year ended 31st March 2011. The Company is in process of accounting appraising the deferred tax asset/liability and on final is at on and ascertaining the amount necessary entry shall be passed.

9. No provision has been made in the accounts for Sundry Debtors of Rs.1,64,626/- (previous year Rs.Nil/-) and Loans & Advances of Rs.Nil (previous year Rs.Nil/-) considered Doubtful of recovery. However in the opinion of the directors, current assets including sundry debtors considered doubtful, loans and advances including considered doubtful have the value at which they are stated in the Balance Sheet if realised in the ordinary course of business and therefore no provision has been made in respect of such debtors and loans and advances. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

10. Confirmation of the balances of sundry debtors, sundry creditors, loans and advances are subject to confirmation and reconciliation. On receipt of confirmation and after making the reconciliation the necessary entries shall be made.

11. There were no amounts overdue and remaining outstanding to small scale and/or ancilliary industrial suppliers on account of principal and/or interest at the close of the year. This disclosure by the company is based on the inforamation available with the company regarding the status of the suppliers on defined under the Micro,Small and Medium Enterprise Development Act, 2006.

12. Estimated amount of contracts remaining to be executed on capital account and not Provided for Rs.5.00 Lacs (Previous Year Rs.5.00 Lacs)

13. Related party disclosures as required by AS-18

Name of the related party and nature of relationship where control exists : Sr.No. Name of the related party

I. Subsidariaries Company Nil

II. Associates Company / Enterprise where common control exists. Nil

III. Key Management Personnel

1 Kamlesh J. Laskari

2 Rohan K. Laskari

IV Relatives of Key Management Personnel and their Enterprise

1 Kamlesh J. Laskari

2 Ranak K. Laskari

3 Sohan K. Laskari

4 Jagdish D. Laskari

V Directors

1 Kamlesh J. Laskari

2 Ranak K. Laskari

3 Dr. Mahendra P. Shah

4 Dr. S.L. Chopra

5 Ram K. Khadka

14. The Company is engaged primarily in business of manufacturing pharmaceutical products. Accordingly there are no separate reportable segments as per Accounting Standard 17 dealing with segment reporting.

---

Mar 31, 2010

1. Correponding figures of the previous year have been regrouped whenever necessary to make them comparable with current year figures.

2. Depreciation has been provided on the fixed assets on straight line method u/s 205(2)(a) of the Companies Act, 1956. at the rates prescribed in schedule XIV to the Companies Act,1956. Depreciation on the fixed assets added or sold during the year has been calculated on a pro-rata basis from the date of such addition or up to the date of sale.

3. Consequent upon the amedment to schedule XIV to the Companies Act, 1956 vide the notification dated 16th December,1993 issued by the Department of Company Affairs, the company has provided for depreciation on all the fixed assets at the straight line method at the rates as prescribed in the schedule XIV for the year under review.

4. The company has not made any provision in respect of compensation Rs.4,26,000/-(Previous year Rs. 4,26,000/-) determined to be payable by it vide order dated 6th January 2000 passed by Motor Accident Claims Tribunal, Jaipur city as the company has filed an appeal against the said order.

5. Certain Fixed Assets of the Company viz the Plant & Machinery, Land. Factory Building and Non- factory Building were revalued during the year ended 31st March, 1998 on the basis of their replacement value as of 31st March,1998 determined by the approved valuer and the surplus arising on such revaluation amounting to Rs..1.43,62,580/-in the accounts of the Company have been credited to the revaluation reserve and the said fixed assets have been shown at revalued figures.

6. Interest includes interest of Rs.5.63 Lacs (2008-2009 Rs.7.71 Lacs) on Fixed Deposit of Rs.49.22 Lacs (2008-09 Rs.57.23 Lacs) paid / payable to Managing Director.

7. In compliance with the Accounting Standard relating to Accounting for Taxes on Income - AS 22 issued by the institute of Chartered Accountants of India (ICAI), the Company has provided deferred tax Rs. Nil (Previous Year Rs.Nil) in Profit & Loss Accounts towards deferred tax liabilites for the year ended 31st March 2010.

8. No provision has been made in the accounts for Sundry Debtors of Rs.Nil/- (previous year Rs.34,51,460/-) and Loans & Advances of Rs.Nil (previous year Rs.Nil/-) considered Doubtful of recovery. However in the opinion of the directors, current assets including sundry debtors considered doubtful, loans and advances including considered doubtful have the value at which they are stated in the Balance Sheet if realised in the ordinary course of business and therefore no provision has been made in respect of such debtors and loans and advances. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

9. Confirmation of the balances of sundry debtors, sundry creditors, loans and advances are subject to confirmation and reconciliation. On receipt of confirmation and after making the reconciliation the necessary entries shall be made.

10. There were no amounts overdue and remaining outstanding to small scale and/or anciliiary industrial suppliers on account of principal and/or interest at the close of the year. This disclosure by the company is based on the inforamation available with the company regarding the status of the suppliers on defined under the Micro.Small and Medium Enterprise Development Act,2006.

11. Estimated amount of contracts remaining to be executed on capital account and not Provided for Rs.5.00 Lacs (Previous Year Rs.5.00 Lacs)

12. Related party disclosures as required by AS-18

Name of the related party and nature of relationship where control exists :

Sr.No. Name of the related party

i. Subsidariaries Company Nil

II. Associates Company / Enterprise where common control exists. Nil

III. Key Management Personnel

1 Kamlesh J. Laskari

IV Relatives of Key Management Personnel and their Enterprise

1 Kamlesh J. Laskari

2 Ranak K. Laskari

V Directors

1 Kamlesh J. Laskari

2 Ranak K. Laskari

3 Dr. Mahendra P. Shah

4 Dr. S.L. Chopra

5 Ram K. Khadka

In accordance with Accounting Standard 18 Related Party Disclosures issued by the Institute of Chartered Accountants of India, the company has complied the required information in the attached table

13. The Company is engaged primarily in business of manufacturing pharmaceutical products. However during the year under review the Company has also traded in Grey Fabrics. Accordingly there are no separate reportable segments as per Accounting Standard 17 dealing with segment reporting.

NOTES:

(a) Total Licensed/registered/installed capacity on single shift (2009-10 and 2008-09). This has been taken to include capacities installed requiring licences under the industries (Development and Regulation) Act, 1951

(b) The installed capacity has been stated as certified by the Managing Director of the Company. The auditors have placed reliance without veritication of the certificate stated above in respect of the installed capacity.