Home  »  Company  »  Ambalal Sarabhai  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Ambalal Sarabhai Enterprises Ltd.

Mar 31, 2023

1. No trade receivables are due from directors or other officers of the Company either severally or jointly with any person nor any trade receivables are due from firms or private companies respectively in which any director is a director, a partner or a member.

2. Trade receivables are non interest bearing and are generally on terms of 30 to 180 days.

3. Allowance for doubtful debts

The Company has provided allowance for doubtful debts based on the lifetime expected credit loss model using provision matrix.

Write Off

During the period, the company has made write offs of Rs. Nil (Previous Year: Nil) of deposits and it does not expect to receive future cash flow or recoveries from collection of cash flow previously written off.

Allowance for Doubtful Advances

Company has provided for doubtful advances based on the lifetime expected credit loss model using provision matrix.

11.2. Terms/Rights attached to the equity shares

The Company has one class of shares referred to as equity shares having a par value of Rs.10 each. Each shareholder is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

The description of the nature and purpose of each reserve within equity is as follows

a. General Reserve

General Reserve is a free reserve created by the Company by transfer from Retained Earnings for appropriation purposes.

b. Securities premium

Securities premium reserve is created due to premium on issue of shares. These reserve is utilised in accordance with the provisions of the Companies Act, 2013.

c. Equity instruments through OCI

The Company has elected to recognise changes in the fair value of certain investment in equity instrument in other comprehensive income. This amount will be reclassified to retained earnings on derecognition of equity instrument.

a. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 and hence disclosures as required under Section 22 of The Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 regarding:

(a) Principal amount and the interest due thereon remaining unpaid to any suppliers as at the end of accounting year;

(b) Interest paid during the year;

(c) Amount of payment made to the supplier beyond the appointed day during accounting year;

(d) Interest due and payable for the period of delay in making payment;

(e) Interest accrued and unpaid at the end of the accounting year; and

(f) Further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are actually paid to the small enterprise.

have not been given. The Company is making efforts to get the confirmations from the suppliers as regard to their status under the said Act.

Hon''ble Supreme Court has allowed Company''s Civil Appeals against the judgment and order of the Division Bench of Gujarat High Court vide which Division Bench by its order had set aside the order of the single judge sanctioning Scheme of Arrangement relating to Company''s erstwhile Swastik Division and Electronics Division. While allowing the appeals, Hon''ble Supreme Court has directed that Company shall execute a guarantee favouring the Central Bank of India and Bank of Baroda in respect of their dues in the suit filed by then which was pending before Debts Recovery Tribunal. The Company had accordingly given the guarantee.

With regard to the Guarantee above given by the Company favouring Central Bank of India and Bank of Baroda, the Company had received on 31.12.2010, a notice invoking the guarantee dated 16.12.2003 on behalf of Bank of Baroda from International Asset Reconstruction Company Pvt. Ltd. The Company had not accepted the original demand made of Rs.781.70 Lakh plus interest thereon at the rate of 18.50% per annum at quarterly rests from June 27, 1989 till date (previous year Rs.781.70 Lakh plus interest thereon) and based on legal advice, the Company had taken required action in the matter at various legal forum.

During the year ended March 31, 2022, the Company had executed consent terms with International Asset Reconstruction Company Private Ltd ("IARC"), the assignee of Bank of Baroda''s debts, for settlement of the dispute which was pending before the Debt Recovery Tribunal-1, Mumbai. The suit was originally filed by the Bank of Baroda with respect to the outstanding debts of Swastik Surfactants Limited. The settlement amount of Rs. 1,500.00 lakhs along with incidental charges in this connection Rs. 11.26 lacs was charged to the Statement of Profit and loss as an exceptional item.

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

The Company has unused carried forward losses of Rs. 9,418.01 Lakhs as at March 31,2023 (March 31,2022 : Rs. 9,408.29 Lakhs).

Out of the same, tax credits on losses of Rs. 2,278.99 Lakhs as at March 31, 2023 (March 31, 2022: Rs 2,160.85 Lakhs) have not been recognized on the basis that recovery is not probable in the foreseeable future.

i. Future cash outflows in respect of (d) above are determinable only on receipt of judgments/ decisions pending with various forums/ authorities.

ii. The company does not expect any reimbursements in respect of the above Contingent liabilities

iii. The Company believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company’s financial position and results of the operations.

iv. Against disputed demands for Income tax, Rs. 143.25 Lakhs (Previous year Rs. 90.33 Lakhs) were paid/Adjusted.

v. The Honourable Supreme Court, has passed a decision on 28th February, 2019 in relation to inclusion of certain allowances within the scope of “Basic wages” for the purpose of determining contribution to provident fund under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952. The Company, based on legal advice, is awaiting further clarifications in this matter in order to reasonably assess the impact on its financial statements, if any. Accordingly, the applicability of the judgment to the Company, with respect to the period and the nature of allowances to be covered, and resultant impact on the past provident fund liability, cannot be reasonably ascertained, at present.

vi. The Company had disputed the calculation of mesne profits and related interest claimed by the three owners of the suit premises which were used by the Company in earlier years. On the filing of the Special Leave Petition against the order of the High Court of Calcutta, the Hon’ble Supreme Court passed an interim order imposing stay on recovery of mesne profits with effect from October 21st 1993 until further orders.

II. Contingent Asset

By virtue of the agreement for sale of shares of Swastik Surfactants Limited ("SSL") between the Company, SSL and the transferees, SSL was to pay a sum of Rs. 30 Crores to the Company.

On SSL''s failure to pay, the Company filed a suit which was decreed in favour of the Company and the Hon''ble Court directed the Company to recover the said amount along with interest.

The Company has filed an execution application for implementation of the said order.

Note 30 : Segment Reporting

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements, Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108. The Company has only one identifiable Segment. i.e. Pharmaceuticals Operating Segments:

The Company''s business activity falls within a single operating business segment of Pharmaceuticals products. Geographical Segment

Geographical segment is considered based on sales within India and rest of the world.

Employees of the Company receive benefits from a provident fund, which is a defined contribution plan. The eligible employees and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the employees’ salary. Amounts collected under the provident fund plan are deposited in a government administered provident fund. The remaining portion is contributed to the government-administered pension fund. Employees of the Company receive benefits from a government administered provident fund, which is a defined contribution plan. The Company has no further obligation to the plan beyond its monthly contributions. Such contributions are accounted for as defined contribution plans and are recognised as employee benefits expenses when they are due in the Statement of profit and loss.

Defined benefit plans:

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

(a) Gratuity (Unfunded)

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is an unfunded. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each Balance Sheet date using the projected unit credit method.

C. Other Long term employee benefit plan

The Company has a policy on leave encashment which are both accumulating and non-accumulating in nature. The expected cost of accumulating leave encashment is determined by actuarial valuation performed by an independent actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur. The Company has recognised following as expenses and included in Note No. 21 ""Employee benefit expense"".

Note 33 : Disclosure pursuant to Related Party

As per the Indian Accounting Standard on "Related Party Disclosures" (Ind AS 24), the related parties of the Company are as follows :

c Terms and conditions of transactions with related parties

1) Transaction entered into with related party are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances other than loan given & taken and fair value of financial guarantee contract, at the year-end are unsecured and interest free and settlement occurs in cash.

2) Loans in I NR taken from the related party carries interest rate of 8% (March 31,2022 : 8%) d Commitments with related parties

The Company has not provided any commitment to the related party as at March 31,2023 (March 31,2021: Rs. Nil)

The management assessed that the fair values of cash and cash equivalents, other bank balances, loans, trade receivables, other current financial assets, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values.

For financial assets and financial liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Note 35 : Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Company''s assets and liabilities

Fair value hierarchy

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

There are no transfer between level 1,2 and 3 during the year.

The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

Note 36 : Financial instruments risk management objectives and policies

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Company''s risk management is carried out by a Treasury department under policies approved by the Board of directors. The Company''s treasury identifies, evaluates and hedges financial risks in close co-operation with the Company''s operating units. The board provides written principles for overall risk.

(a) Market risk

Market risk refers to the possibility that changes in the market rates may have impact on the Company’s profits or the value of its holding of financial instruments. The Company is exposed to market risks on account of foreign exchange rates, interest rates, underlying equity prices, liquidity and other market changes.

Future specific market movements cannot be normally predicted with reasonable accuracy.

Interest rate risk

Interest rate risk arises from the sensitivity of financial assets and liabilities to changes in market rates of interest. The Company has not hedged its interest rate risk.

As at March 31,2023, 100% of the Company''s Borrowings are at fixed rate of interest (March 31,2022 : 100%)

(b) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Financial instruments that are subject to concentrations of credit risk materially consists of trade receivables, investments and derivative financial instruments.

The Company is exposed to credit risk from its operating activities (primarily trade receivables and also from its investing activities including deposits with banks, forex transactions and other financial instruments) for receivables, cash and cash equivalents, financial guarantees and derivative financial instruments.

All trade receivables are subject to credit risk exposure. The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country, in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through established policies, controls relating to credit approvals and procedures for continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit. The history of trade receivables shows a negligible provision for bad and doubtful debts. Therefore, the Company does not expect any material risk on account of non-performance by any of the Company’s counterparties. The Company does not have significant concentration of credit risk related to trade receivables. No single third party customer contributes to more than 10% of outstanding accounts receivable (excluding outstanding from subsidiaries) as of March 31, 2023 and March 31,2022.

T rade receivables are non-interest bearing and are generally on 30 days to 180 days credit term.

(c) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company generates cash flows from operations to meet its financial obligations, maintains adequate liquid assets in the form of cash & cash equivalents and has undrawn short term line of credits from banks to ensure necessary liquidity. The Company closely monitors its liquidity position and deploys a robust cash management system.

The Company requires funds both for short-term operational needs as well as for long-term investment programmes mainly in growth projects

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions or its business requirements to optimise return to our shareholders through continuing growth. 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 funding requirements are met through a mixture of equity, internal fund generation and other non-current borrowings. 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 short-term deposits (including other bank balance). The Company is not subject to any externally imposed capital requirements.

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 current period.

The Parliament of India has approved the Code on Social Security, 2020 (the Code) which may impact the contributions by the Company towards provident fund, gratuity and ESIC. The Code has been published in the Gazette of India. However, the effective date has not yet been notified. The Company will assess the impact of the Code when it comes into effect and will record related impact, if any, in the period the Code becomes effective.

Note 40: Recent Pronouncements Ind AS 1

Presentation of Financial Statements is amended to replace the term “significant accounting policies” with “material accounting policy information” and providing guidance relating to immaterial transactions, disclosure of entity specific transactions and more.

Ind AS 8

Accounting Policies, Changes in Accounting Estimates and Errors to include the definition of accounting estimates as “monetary amounts in financial statements that are subject to measurement uncertainty.”

Ind AS 12

Income Taxes relating to initial recognition exemption of deferred tax related to assets and liabilities arising from a single transaction.Other Amendments

Ind AS 102

Share based Payments, Ind AS 103 - Business Combinations, Ind AS 109 - Financial Instruments, Ind AS 115 -Revenue from Contracts with Customers which are mainly editorial in nature in order to provide better clarification of the respective Ind AS’s.

Note 41 : Other Notes

a. During the year ended March 31, 2023 and March 31, 2022, the Company has not advanced or loaned or invested funds (either borrowed funds or share premium or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

Further, during the year ended March 31,2023 and March 31,2022, the Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

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

ii) provide any guarantee, security, or the like on behalf of the ultimate beneficiaries.

b. The Company has not invested or traded in Crypto Currency or Virtual Currency during the year ended March 31, 2023 (Previous year: Nil).

c. No proceedings have been initiated on or are pending against the Company for holding benami property under the Prohibition of Benami Property

Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)) and Rules made thereunder during the year ended March 31,2022 (Previous year: Nil).

d. The Company has not been declared Wilful Defaulter by any bank or financial institution or government or any government authority during the year ended March 31,2023 (Previous year: Nil).

e. The Company has not surrendered or disclosed as income any transactions not recorded in the books of accounts in the course of tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961) during the year ended March 31,2023 (Previous year: Nil).

f. The Company does not have any transactions with the companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 during the year ended March 31,2023 (Previous year: Nil).

g. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

Note 42 : Events occurring after the reporting period

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval of financial statements to determine the necessity for recognition and/or reporting of subsequent events and transactions in the financial statements. As of May 29, 2023, there were no subsequent events and transactions to be recognized or reported that are not already disclosed.

Note 43 : Regrouped, Recast, Reclassified

Material regroupings: Appropriate adjustments have been made in the statements of assets and liabilities, statement of profit and loss and cash flows, wherever required, by a reclassification of the corresponding items of income, expenses, assets, liabilities and cash flows in order to bring them in line with the groupings as per the audited financials of the Company as at March 31,2023.


Mar 31, 2018

1. Corporate Information

Ambalal Sarabhai Enterprise Ltd is engaged in manufacturing of pharmaceuticals.

The financial statements were authorised for issue in accordance with a resolution of the directors on May 25, 2018.

2.. Terms/Rights attached to the equity shares

The Company has one class of shares referred to as equity shares having a par value of Rs.10 each. Each shareholder is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Nature of security:

Loan of Rs. 26.67 Lacs is secured by charged on one of the immovable properties of the company. Rate of Interest

i. Secured Loans from Others carry interest rate of 18.00% per annum, payable on demand.

a. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 and hence disclosures as required under Section 22 of The Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 regarding:

(a) Principal amount and the interest due thereon remaining unpaid to any suppliers as at the end of accounting year;

(b) Interest paid during the year;

(c) Amount of payment made to the supplier beyond the appointed day during accounting year;

(d) Interest due and payable for the period of delay in making payment;

(e) Interest accrued and unpaid at the end of the accounting year; and

(f) Further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are actually paid to the small enterprise. have not been given.

The Company is making efforts to get the confirmations from the suppliers as regard to their status under the said Act.

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Notes :

i. Future cash outflows in respect of (f) above are determinable only on receipt of judgments/ decisions pending with various forums/ authorities.

ii. Hon''ble Supreme Court has allowed Company''s Civil Appeals against the judgment and order of the Division Bench of Gujarat High Court vide which Division Bench by its order had set aside the order of the single judge sanctioning Scheme of Arrangement relating to Company''s erstwhile Swastik Division and Electronics Division while allowing the appeals, Hon''ble Supreme Court has directed that Company shall execute a guarantee favouring the Central Bank of India and Bank of Baroda in respect of their dues in the suit filed by then which is pending before Debts Recovery Tribunal. The Company has accordingly given the guarantee.

With regard to the Guarantee given by the Company favouring Central Bank of India and Bank of Baroda, the Company has received on 31.12.2010, a notice invoking the guarantee dated 16.12.2003 on behalf of Bank of Baroda the notice is received on behalf of International Asset Reconstruction Company Pvt. Ltd. The Company has not accepted the original demand made of Rs.781.70 Lakh plus interest thereon at the rate of 18.50% per annum at quarterly rests from June 27, 1989 till date (previous year Rs.781.70 Lakh plus interest thereon) and based on legal advice, the Company has taken necessary action required in the matter at various legal forum.

iii. Sundry Debtors, Sundry Creditors and Loans and Advances include certain accounts which are subject to confirmation / reconciliation and consequential adjustments if any, the effect of which is not ascertainable.

Note 3 : Segment Reporting

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements, Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108. The Company has only one identifiable Segment. i.e. Pharmaceuticals

B. Defined benefit plans:

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

(a) Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan administered by a Trust and the Company makes contributions to recognised Trust.

C. Other Long term employee benefit plans

Leave encashment

Amount of Rs. 11.36 Lakhs (March 31, 2017: Rs. 13.68 Lakhs) is recognised as expenses and included in Note No. 21 "Employee benefit expense".

e Terms and conditions of transactions with related parties

1) Transaction entered into with related party are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances other than loan given & taken and fair value of financial guarantee contract, at the year-end are unsecured and interest free and settlement occurs in cash.

2) Financial guarantee given to Bank on behalf of subsidiaries and joint ventures carries no charge and are unsecured.

The amounts disclosed in the table are the amounts recognised as an expense during the reporting period related to key management personnel (excluding expense of post-employment medical benefits)

Note 4 : Fair value disclosures for financial assets and financial liabilities

Set out below is a comparison by class of the carrying amounts and fair value of the Company''s Financial Instruments, other then those, with carrying amounts that are reasonable approximations of fair value:

The management assessed that the fair values of cash and cash equivalents, other bank balances, loans, trade receivables, other current financial assets, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

The fair value of borrowings and other financial liabilities is calculated by discounting future cash flows using rates currently available for debts on similar terms, credit risk and remaining maturities.

Note 5 : Financial instruments risk management objectives and policies

The Company''s principal financial liabilities, other than derivatives, comprise borrowings and trade & other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to support its operations. The Company''s principal financial assets include Investments, loans given, trade and other receivables and cash & short-term deposits that derive directly from its operations.

The Company''s activities expose it to market risk, credit risk and liquidity risk.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings, deposits, Investments, trade and other receivables, trade and other payables and derivative financial instruments.

Within the various methodologies to analyse and manage risk, Company has implemented a system based on “sensitivity analysis” on symmetric basis. This tool enables the risk managers to identify the risk position of the entities. Sensitivity analysis provides an approximate quantification of the exposure in the event that certain specified parameters were to be met under a specific set of assumptions. The risk estimates provided here assume:

- a parallel shift of 50 basis point of the interest rate yeild curves in all the currencies.

- a simultaneous, parallel foreign exchange rates shift in which the INR appreciates / depreciates against all currencies by 2%

The potential economic impact, due to these assumptions, is based on the occurrence of adverse / inverse market conditions and reflects estimated changes resulting from the sensitivity analysis. Actual results that are included in the Statement of profit & loss may differ materially from these estimates due to actual developments in the global financial markets.

The analyses exclude the impact of movements in market variables on: the carrying values of gratuity, pension and other post-retirement obligations and provisions.

The following assumption has been made in calculating the sensitivity analyses:- The sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2018, March 31, 2017 and April 1, 2016.- The sensitivity of equity is calculated by considering the effect of any associated cash flow hedges as at March 31, 2018, March 31, 2017 and April 1, 2016 for the effects of the assumed changes of the underlying risk

(b) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

Trade receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on 30 days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on actual incurred historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties who meets the minimum threshold requirements under the counterparty risk assessment process. The Company monitors the ratings, credit spreads and financial strength of its counterparties. Based on its on-going assessment of counterparty risk, the group adjusts its exposure to various counterparties.

(c) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including bilateral loans, debt and overdraft from both domestic and international banks at an optimised cost. It also enjoys strong access to domestic capital markets across equity.

Note 6 : Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions or its business requirements. 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 short-term deposits (including other bank balance).

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, 2018, March 31, 2017 and April 1, 2016.

Loan covenants

Under the terms of the major borrowing facilities, the Company has complied with the required financial covenants through out the reporting periods.

Note 7 : First- time adoption of Ind AS

These financial statements, for the year ended March 31, 2018, are the first annual Ind AS financial statements, the Company has prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2016, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at April 1, 2016, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at April 1, 2016 and the previously published Indian GAAP financial statements as at and for the year ended March 31, 2017.

A. Exemptions applied

Ind AS 101 “First-time Adoption of Indian Accounting Standards” allows first-time adopter certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

Ind AS optional exemptions

1. Deemed cost

Ind AS 101 permits a first time adopter to elect to measure an item of property, plant and equipment at the transition to Ind AS at its carrying value as on April 1, 2016 and use that carrying value as deemed cost on that date. This exemption has also been elected for Intangible Assets. Accordingly, the Company has elected to measure all of its property, plant and equipment & intangible assets at fair value on the date of transition to Ind AS and used those fair value as deemed cost of Property, plant and equipment & Intangible assets.

2. Designation of previously recognised financial instruments

"Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of facts and circumstances at the date of transition to Ind AS.

The Company has elected to apply this exemption."

Ind AS mandatory exceptions

1. Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP, unless there is objective evidence that those estimates were in error. Ind AS estimates as at April 1, 2016 and March 31, 2017 are consistent with the estimates as at the same date made in the conformity with previous GAAP . The Company made estimates for the following in accordance with Ind AS at the date of transition as these were not required under previous GAAP. 1. Investment in equity instruments carried at FVOCIThe estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at April 1, 2016, the date of transition to Ind As and as of March 31, 2017."

Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS:

Notes to the reconciliation of equity as at April 1, 2016 and March 31, 2017 and total comprehensive income for the year ended March 31, 2017

i. Re-measurement gain / loss on defined benefit plan

Under Ind AS, re-measurement i.e. actuarial gain loss and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these re-measurement were forming part of the profit or loss for the year There is no impact on the total equity as at March 31, 2017.

ii. Other Adjustments

Other adjustments includes adjustments due to the GAAP differences related to recognition and measurement of employee benefits financial charges etc.

iii. Tax impacts on Ind AS adjustments

The impact of transition adjustments together with Ind AS mandate of using balance sheet approach (against profit and loss approach under previous GAAP) for computation of deferred tax has resulted in adjustment to Reserves, with consequential impact in the subsequent periods to the Statement of profit and loss or Other comprehensive income, as the case may be.

iv. Other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Item of income and expense that are not recognised in profit or loss but are shown in the Statement of profit and loss as "other comprehensive income" includes fair value gain / loss on FVOCI equity instruments, effective portion of gains / losses on cash flow hedging instruments and re-measurement of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.

v. Impact of fair valuation of Financial Instruments

Under previous GAAP, the long-term investments were measured at cost less permanent diminution in value, if any. Ind AS requires all investments to be measured at fair value at the reporting date and all changes in the fair value subsequent to the transition date to be recognised either in the Statement of profit and loss or Other Comprehensive Income (based on the category in which they are classified).

vi. Retained earnings

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

vii. Classification & Presentation a. Excise duty

Under the previous GAAP, sale of goods was presented as net of excise duty. Under Ind AS, revenue from sale of products is presented inclusive of excise duty. The excise duty paid on sale of products is separately presented on the face of statement of profit and loss as a part of expense.

viii. Statement of cash flows

The impact of transition from previous GAAP to Ind AS on the statement of cash flows is due to various reclassification adjustments recorded under Ind AS in Balance sheet and Statement of profit and loss.

Note 8: Standards issued but not yet effective

The standard issued, but not yet effective up to the date of issuance of the Company''s financial statements is disclosed below. The Company intends to adopt this standard when it becomes effective.

Appendix B to Ind AS 21, Foreign currency transactions and advance consideration

On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency."

The amendment will come into force from 1 April 2018. The Company is evaluating the requirement of the amendment and the impact on the financial statements. The effect on adoption of Ind AS 21 is expected to be insignificant.”

Ind AS 115 - Revenue from contracts with customers

In March 2018, the Ministry of Corporate Affairs has notified the Companies (Indian Accounting Standards) Amended Rules, 2018 (“amended rules”). As per the amended rules, Ind AS 115 “Revenue from contracts with customers” supersedes Ind AS 11, “Construction contracts” and Ind AS 18, “Revenue” and is applicable for all accounting periods commencing on or after 1 April 2018.

Ind AS 115 introduces a new framework of five step model for the analysis of revenue transactions. The model specifies that revenue should be recognised when (or as) an entity transfer control of goods or services to a customer at the amount to which the entity expects to be entitled. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers. The new revenue standard is applicable to the Company from 1 April 2018.

The standard permits two possible methods of transition:

- Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind As 8 - Accounting Policies, Changes in Accounting Estimates and Errors

- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach)

The Company is evaluating the requirement of the amendment and the impact on the financial statements. The effect on adoption of Ind AS 115 is expected to be insignificant”

9. Regrouped, Recast, Reclassified

Figures of the earlier year have been regrouped to conform with those of current year.


Mar 31, 2016

1 Effective from April 1, 2014, the Company has revised useful lives of tangible fixed assets as specified in Schedule II to the Companies Act-2013. Accordingly, the carrying value of fixed assets as on that date, net of residual value, has been depreciated over the remaining useful lives. Further, an amount of Rs. 41.67 Lakh representing the carrying value of assets, whose remaining useful life is Nil as at April 1, 2014, has been charged to Statement of Profit & Loss during the previous year.

2 Sundry Debtors, Sundry Creditors and Loans and Advances include certain accounts which are subject to confirmation/reconciliation and consequential adjustments if any, the effect of which is not ascertainable.

NOTES:

(a) Future cash outflows in respect of (i) above are determinable only on receipt of judgements/ decisions pending with various forums/authorities.

(b) Hon''ble Supreme Court has allowed Company''s Civil Appeals against the judgment and order of the Division Bench of Gujarat High Court vide which Division Bench by its order had set aside the order of the Single Judge sanctioning Scheme of Arrangement relating to Company''s erstwhile Swastik Division and Electronics Division While allowing the appeals, Hon''ble Supreme Court has directed that Company shall execute a guarantee favouring the Central Bank of India and Bank of Baroda in respect of their dues in the suit filed by them which is pending before Debts Recovery Tribunal. The Company has accordingly given the guarantee.

With regard to the Guarantee given by the Company favouring Central Bank of India and Bank of Baroda, the Company has received on 31.12.2010, a notice invoking the guarantee dated 16.12.2003 on behalf of Bank of Baroda the notice is received on behalf of International Asset Reconstruction Company Pvt. Ltd. The Company has not accepted the demand made of Rs. 37,770.51 Lakh and based on legal advice, the Company has taken necessary action required in the matter at various legal forum.

3. Segment Reporting:

Information About Primary and Secondary Business Segments.

The Company is in the business of manufacturing, trading and dealing in the Pharmaceuticals only operating in India. In view of above the Company has only one reportable business Segments i.e. Pharmaceuticals.

4. Impairment of Fixed Assets

In accordance with the Accounting Standard (AS -28) on ‘Impairment of Assets’, the Company has reassessed its fixed assets and is of the view that no further impairment/ reversal is considered to be necessary in view of its expected realizable value.

5 In the opinion of the Board, all assets other than fixed assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated except for reconciliation adjustments in respect of some of the payables and receivables.

6 Figures less than Rs. 500/- which are required to be shown separately, have been shown as actual in brackets.

7 Previous year''s figures have been regrouped to made then comparable with those of the current year.


Mar 31, 2015

1. Equity Shares:

The Company has one class of shares referred to as equity shares having a par value of Rs. 10 each. Each shareholder is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

2. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 and hence disclosures as required under Section 22 of The Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 regarding:

(a) Amount due and outstanding to suppliers as at the end of accounting year;

(b) Interest paid during the year;

(c) Interest payable at the end of the accounting year; and

(d) Interest accrued and unpaid at the end of the accounting year have not been given.

The Company is making efforts to get the confirmations from the suppliers as regard to their status under the said Act.

3. Effective from April 1, 2014, the Company has revised useful lives of tangible fixed assets as specified in Schedule II to the Companies Act-2013. Accordingly, the carrying value of fixed assets as on that date, net of residual value, has been depreciated over the remaining useful lives. Further, an amount of Rs. 41.67 Lakh representing the carrying value of assets, whose remaining useful life is Nil as at April 1, 2014, has been charged to Statement of Profit & Loss. As a result of such change the charge for the year ended March 31, 2015 is highter by Rs. 41.67 Lakh for the Assets held on April 1,2014.

4. Sundry Debtors, Sundry Creditors and Loans and Advances include certain accounts which are subject to confirmation/reconciliation and consequential adjustments if any , the effect of which is not ascertainable.

( v ) Guarantee given by company

on behalf of other Companies 1,083.49 1,225.65

5(b) Hon'ble Supreme Court has allowed Company's Civil Appeals against the judgment and order of the Division Bench of Gujarat High Court vide which Division Bench by its order had set aside the order of the Single Judge sanctioning Scheme of Arrangement relating to Company's erstwhile Swastik Division and Electronics Division While allowing the appeals, Hon'ble Supreme Court has directed that Company shall execute a guarantee favouring the Central Bank of India and Bank of Baroda in respect of their dues in the suit filed by them which is pending before Debts Recovery Tribunal. The Company has accordingly given the guarantee.

With regard to the Guarantee given by the Company favouring Central Bank of India and Bank of Baroda , the Company has received on 31.12.2010, a notice invoking the guarantee dated 16.12.2003 on behalf of Bank of Baroda the notice is received on behalf of International Asset Reconstruction Company Pvt. Ltd. The Company has not accepted the demand made of Rs. 37,770.51 Lakh and based on legal advice, the Company has taken necessary action required in the matter at various legal forum.

6. Segment Note:

Segment Information for the year ended 31st March 2015.

Information About Primary and Secondary Business Segments. The Company is in the business of manufacturing, trading and dealing in the Pharmaceuticals only operating in India In view of above the Company has only one reportable business Segments i. e. Pharmaceuticals

7. Related Party Disclosures:

As per the Accounting Standard on " Related Party disclosures ( AS 18 ) " the related parties of the Company are as follow :

1 List of Related Parties Relationship

(A) Name of Related Party Description of relationship

Synbiotics Limited Subsidiary Company

Haryana Containers Limited Subsidiary Company Asence Inc USA Subsidiary Company

Asence Pharma Pvt. Ltd Subsidiary of Subsidiary Company

Sarabhai M Chemicals Ltd Subsidiary Company Systronics ( I ) L td Subsidiary Company

Suvik Hitek Pvt. Ltd Subsidiary Company

Senaru Formulations Pvt. Ltd Subsidiary of Subsidiary Company

(B) Vovantis Lab. P vt. Ltd Joint Venture Company

(C) Key Management Personnel:

Name of the related party Nature of relationship Mr. Kartikeya V. Sarabhai Chairman

Mr. A.H. Parekh Whole time Director

Ms Chaula Shastri Whole time Director

Note:

Related party relationship is as identified by the Company and relied upon by the Auditors.

8. Previous year's figures have been regrouped to made then comparable with those of the current year.


Mar 31, 2014

1 Deferred Tax

In terms of the provisions of the Accounting Standard -22 "Accounting for Taxes on Income", there is a net deferred tax asset on account of accumulated business losses and unabsorbed depreciation.

In compliance with provisions of Accounting Standard and based on General Prudence, the Company has not recognized the deferred tax asset while preparing the accounts for the year under review.

2 Sundry Debtors, Sundry Creditors and Loans and Advances include certain accounts which are subject to confirmation/reconciliation and consequential adjustments if any, the effect of which is not ascertainable.

3. No provision is considered necessary for following contingent liabilities:

Year Ended YearEnded March 31,2014 March 31,2013 Rs. Lakh Rs. Lakh

(i) Disputed demand in respect of Customs and Excise

(a) Customs and Excise 133.82 133.82

(b) Sales Tax 18.90 18.90

(c) Income Tax 2,624.93 2,624.93

(d) Employees'' State Insurance Corporation 10.23 -

(e) Provident Fund 10.56 -

(ii) Claims not acknowledged as debt 39,282.61 39,296.28

(iii) Claims by Government for payment in to DPEA 39.25 39.25

(iv) Guarantee given by banks on behalf of the Company 265.29 262.29

(v) Guarantee given by company on behalf of other Companies 1,225.65 1,371.65

3b Hon''ble Supreme Court has allowed Company''s Civil Appeals against the judgment and order of the Division Bench of Gujarat High Court vide which Division Bench by its order had set aside the orderof the Single Judge sanctioning Scheme of Arrangement relating to Company''s erstwhile Swastik Division and Electronics Division While allowing the appeals, Hon''ble Supreme Court has directed that Company shall execute a guarantee favouring the Central Bankof India and Bankof

Baroda in respect of their dues in the suit filed by them which is pending before Debts Recovery Tribunal. The Company has accordingly given the guarantee.

With regard to the Guarantee given by the Company favouring Central Bank of India and Bank of Baroda , the Company has received on 31.12.2010, a notice invoking the guarantee dated 16.12.2003 on behalf of Bank of Baroda the notice is received on behalf of International Asset Reconstruction Company Pvt. Ltd. The Company has not accepted the demand made of Rs. 37770.51 lakh and based on legal advice, the Company has taken necessary action required in the matter at various legal forum.

4. Segment Note:

Segment Information for the year ended 31st March 2014.

Information About Primary and Secondary Business Segments. The Company is in the business of manufacturing, trading and dealing in the Pharmaceuticals only operating in India In view of above the Company has only one reportable business Segments i.e. Pharmaceuticals

5. Related Party Disclosures:

As per the Accounting Standard on "Related Party Disclosures (AS 18)" notified by Companies (Accounting Standards) Rules, 2006, the related parties of the Company are as follow:

1 List of Related Parties Relationship (A) Name of Related Party Description of relationship Synbiotics Limited Subsidiary Company

Haryana Containers Limited Subsidiary Company AsencelncUSA Subsidiary Company

Asence Pharma Pvt. Ltd Subsidiary of Subsidiary Company

Sarabhai M Chemicals Ltd Subsidiary Company

Systronics (I) Ltd Subsidiary Company

Suvik Hitek Pvt. Ltd Subsidiary Company

Senaru Formulations Pvt.Ltd Subsidiary of Subsidiary Company

(B) Vovantis Lab. Pvt. Ltd Joint Venture Company

(C) Key Management Personnel:

Name of the related party Nature of relationship

Mr.Kartikeya V. Sarabhai Chairman

Mr.A.H.Parekh Whole time Director

Ms Chaula Shastri Whole time Director

Note:

Related party relationship is as identified by the Company and relied upon by the Auditors.

6. Impairment of Fixed Assets

In accordance with the Accounting Standard (AS - 28) on "Impairment of Assets", the Company has reassesed its Fixed Assets and is of the view that no further Impairment / reversal is considered to be necessary in view of its expected realisable value.

7 Previous year''s figures have been regrouped to make them comparable with those of the current year.


Mar 31, 2013

1 Deferred Tax

In terms of the provisions of the Accounting Standard -22 "Accounting for Taxes on -Income" notified by Companies (Accounting Standards ) Rules, 2006, there is a net deferred tax asset on account of accumulated business losses and unabsorbed depreciation.

In compliance with provisions of Accounting Standard and based on General Prudence, the Company has not recognized the deferred tax asset while preparing the accounts for the year under review.

2 Sundry Debtors, Sundry Creditors and Loans and Advances include certain accounts which are subject to confirmation/reconciliation and consequential adjustments if any, the effect of which is not ascertainable.

3. No provision is considered necessary for following contingentliabilities:

Year Ended Year Ended March 31,2013 March 31,2012 Rs.Lakh Rs.Lakh

(i) Disputed demand of Customs and Excise

(a) Customs and Excise 133.62 62.98

(b) Sales Tax 18.90 18.90

(c) Income Tax 2,624.93 3,514.42

(ii) Claims not acknowledged as debt 39,296.28 39,331.88

(iii) Claims by Government for payment into DPEA 39.25 39.25

(iv) Guarantee given by banks on behalf of the Company 262.29 292.59

(v) Guarantee given by company on behalf of other Companies 1,446.65 1104.69

43,822.12 44364.71



3b Hon''ble Supreme Court has allowed Company''s Civil Appeals against the judgment and order of the Division Bench of Gujarat High Court vide which Division Bench by its order had set aside the order of the Single Judge sanctioning Scheme of Arrangement relating to Company''s erstwhile Swastik Division and Electronics Division While allowing the appeals, Hon''ble Supreme Court has directed that Company shall execute a guarantee favouring the Central Bank of India and Bank of

Baroda in respect of their dues in the suit filed by them which is pending before Debts Recovery Tribunal. The Company has accordingly given the guarantee.

With regard to the. Guarantee given by the Company favouring Central Bank of India and Bank of Baroda , the Company has received on 31.12.2010, a notice invoking the guarantee dated 16.12.2003 on behalf of Bank of Baroda the notice is received on behalf of International Asset Reconstruction Company Pvt. Ltd. The Company has not accepted the demand made of Rs. 37770.51 lakh and based on legal advice, the Company has taken necessary action required in the matter at various legal forum.


Mar 31, 2012

(a) Rights, Preferences and Restrictions attached to Shares

Equity Shares:

The Company has on« class of shades referred to as equity shares having a par valid of R.. 10 each. Each shareholder is entitled to one vote psi share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders *n the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

a The Company has not received any intimation from suppliers regarding their status- under the Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 and hence disclosures required under Section 22 of The Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 regarding:

(a) Amount due and outstanding to suppliers not the end of accounting year;

(b) Interest paid during the year;

(c) Interest payable at the end of the accounting year; and

(d) Interest accrued and unpaid at the end of form accounting year have not been given.

The Company is making efforts to get confirmations from the suppliers as regard to ten status under the said Act.

1 Deferred Tax

In terms of the provisions of the Accounting ' Standard -22 "Accounting for Taxes on Income" notified by Companies (Accounting Standards ) Rules, 2006, there is a net deferred tax asset on . account of accumulated business losses and unabsorbed depreciation.

In compliance with provisions of Accounting Standard and based on General Prudence, the Company has not recognized the deferred tax asset while preparing the accounts for the year under review.

2 Sundry Debtors, Sundry Creditors and Loans and ' Advances include certain accounts which are

subject to confirmation/reconciliation and consequential adjustments if any, the effect of which is not ascertainable.

3. No provision is considered necessary for following

contingent liabilities:

Year Ended Year Ended March 31,2012 March 31,2011

Rs. Lakh Rs. Lakh

(i) Disputed demand of Customs and Excise

(a) Customs and Excise 62.98 116.05

(b) Sales Tax 18.90 18.90

(c) Income Tax 3514.42 173.17

(ii) Claims not acknowledged

as debt 39331.88 39315.24

(iii) Claims by Government

for payment into DPEA 39.25 39.25

(iv) Guarantee given by banks

on behalf of the Company 292.59 293.30

(v) Guarantee given by company on Behalf of other Companies 1104.69 420.73

44364.71 40376.64

3b Hon'ble Supreme Court has allowed Company's Civil Appeals against the judgment and order of the Division Bench of Gujarat High Court vide which Division Bench by its order had set aside the order of the Single Judge sanctioning Scheme of ' Arrangement relating to Company's erstwhile Swastik Division and Electronics Division While allowing the appeals, Hon'ble Supreme Court has directed that Company shall execute a guarantee favouring the Central Bank of India and Bank of Baroda in respect of their dues in the suit filed by them ' which Ts pending before Debts Recovery Tribunal. The Company has accordingly given the guarantee. BIFR passed an order forwinding up of Swastik Surfactants Limited (SSL) since the Revival Scheme had failed. However, SSL appealed this order in AAIFR, which has remanded the case to BIFR with appropriate directives.

In all the earlier Revival Schemes, SSL had acknowledged liabilities of banks as we!! as liabilities of banks as well as liabilities towards ASE. In view of this, ASE had approached BIFR and AAIFR to be impleaded in the matter, which has been allowed by AAlFR.The Company has based on legai advice taken appropriate action at BIFR stage and the matter is being pursued by the company.

With regard to the Guarantee given by the Company favouring Central Bank of. India and Bank of Baroda, the Company has received on 31.12.2010, a notice from Kotak Mahindra Bank Limited, Mumbai invoking the guarantee dated 16.12.2003 on behalf of Bank of Baroda in its capacity as trustee of IARC-BOB-01/07 trust on behalf of International Asset Reconstruction Company Pvt. Ltd. The Company has not accepted the demand made of Rs. 37770.51 lakh and based on legal advice, the Company has taken necessary action required in the matter.

Notes:

1. The Company has dls&oaed business segments as the primary segment. Segments have boon Identified taking Into account the nature of the products, differential risks and returns, the Organizational structure and Internal reporting system. The Company's operations predominantly relate to manufacturing of Drugs, Formulation, Electronics Instrument and Services.

2. Types of Products' and Services In each business segment: Pharmaceuticals : Drugs, Formulations Electronics : Electronics Instruments and Services

3. Inter-segment Rovonuos are recognised at sales price

4. Related Party Disclosures:

As per the Accounting Standard on "Related Party Disclosures (AS 18)" notified by Companies (Accounting Standards) Rules, 2006, the related parties of the Company are as follow:

1 List of Related Parties Relationship

(A) Nams of Related Party Diserlptlon of relationship

Synblotlci Limited Subsidiary Company

5 The financial statements for the year ended March 31,2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.


Mar 31, 2010

1. Figures for the previous year have been re-grouped wherever necessary and are shown below those of current year or in brackets in the Notes.

2. 941,975 Ordinary Shares of Rs. 10 each fully paid of ORG Informatics Limited and 35,000 Ordinary Shares of Rs.1,000/- each Rs. 100 paid up of Synbiotics Limited have been pledged for financial assistance and 3,00,000 shares of Rs. 10 each fully paid of ORG Informatics Ltd. are pledged with a bankon behalf of another company.

3. (a) Transfer of Rs.30.50 lakh (Rs. 38.93 lakh) from Capital Reserve to Profit and Loss Account represents the difference between depreciation charged on "revalued amount" of assets and depreciation calculated on "historical cost" of assets;

(b) Further a sum of Rs. 4.02 Lakh (Rs. 752.00 Lakh) has been transferred to general reserve from capital reserve on account balance of Revaluation Surplus in respect of assets sold / otherwise disposed off during the year.

4. Honble Supreme Court has allowed Companys Civil Appeals against the judgment and order of the Division Bench of Gujarat High Court vide which Division Bench by its order had set aside the order of the Single Judge sanctioning Scheme of Arrangement relating to Companys erstwhile Swastik Division and Electronics Division. While allowing the appeals, Honble Supreme Court has directed that Company shall execute a guarantee favouring the Central Bank of India and Bank of Baroda in respect of their dues in the suit filed by them which is pending before the Debts Recovery Tribunal. The Company has accordingly given the guarantee. BIFR passed an order for winding up of Swastik Surfactants Limited (SSL) since the Revival Scheme had failed. However, SSL appealed this order in AAIFR, which has remanded the case to BIFR with appropriate directives.

In all the earlier Revival Schemes, SSL had acknowledged liabilities of banks as well as liabilities towards ASE. In view of this, ASE had approached BIFR and AAIFR to be imp leaded in the matter, which has been allowed by AAIFR.

With regard to the Guarantee given by the Company favouring Central Bank of India and Bank of Baroda, the Company has received on 31.12.2010, a notice from Kotak Mahindra Bank Limited, Mumbai, invoking the guarantee dated 16.12.2003 on behalf of Bank of Baroda in its capacity as trustee of IARC-BOB-01/07 trust on behalf of International Asset Reconstruction Company Pvt Ltd. The Company has not accepted the demand made of Rs. 3770.51 Lakh and based on legal advise, the Company is taking necessary action required in the matter.

5. Uncalled liability in respect of party paid shares held as investments Rs. 90 Lakh (Previous Year Rs 90 Lakh).

6. No provision is considered necessary for following contingent liabilities:

2009-10 2008-09 Rs. Lakh Rs. Lakh

(i) Customs and Excise 128.03 2.44 (ii) Income Tax 173.17 173.17 (iii) Sales Tax 21.96 9.20 (iv) Claims not acknowledged as debt 39830.68 1554.65 (v) Claims by Government for payment into DPEA 716.09 716.09 (vi) Guarantee given by banks on behalf of the Company 301.64 304.54

7. Contracts on Capital Account remaining to be executed amount to Rs.33.53 Lakh (Rs. 10.35 lakh).

8. Sales and Services comprise of Sales Rs. 5633.17 lakh (Rs. 6092.93 lakh) and recovery of share in cost of various utilities, expenses, etc. Rs. 278.53 lakh (Rs. 367.47 lakh).

9. Miscellaneous expenses include fees to Auditors for other services of Rs. 6.05 lakh (Rs. 4.44 lakh) and reimbursement of out of pocket expenses of Rs.1.30 lakh (Rs. 1.38 lakh).

10. Deferred Tax

In terms of the provisions of the Accounting Standard - 22 "Accounting for Taxes on Income" notified by Companies (Accounting Standards) Rules, 2006, there is a net deferred tax asset on account of accumulated business losses and unabsorbed depreciation.

In compliance with provisions of Accounting Standard and based on General Prudence, the Company has not recognized the deferred tax asset while preparing the accounts of the year under review.

11. Sundry Debtors, Sundry Creditors and Loans and Advances include certain accounts which are subject to confirmation/reconciliation and consequential adjustments if any, the effect of which is not ascertainable.

12. Small and Small and Medium Enterprises Dues:

The Company has not received any intimation from "Suppliers" regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 (the Act) and hence disclosures, regarding:

(a) Amount due and outstanding to suppliers as at the end of accounting year.

(b) Interest paid during the year

(c) Interest payable at the end of the accounting year

(d) Interest accrued and unpaid at the end of the accounting year, has not been provided.

The Company is making efforts to get the confirmation from the suppliers as regards their status under the Act.

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