Notes to Accounts of Denis Chem Lab Ltd.

Mar 31, 2018

Note 1 : Corporate Information

The standalone financial statements comprise of financial statements of Denis Chem Lab Limited (the “Company”) for the year ended March 31, 2018. The Company is a public Company domiciled in India and is incorporated under the provisions of the Companies Act ,1956. The Company’s shares are listed on BSE, a recognised stock exchange, in India. The registered office of the Company is located at Block No. 457, Village: Chhatral, Tal: Kalol (N.G.), Dist: Gandhinagar - 382 729. The Company is engaged in the business of manufacturing of Pharmaceuticals Transfustion Solution in Bottles.

The standalone financial statements were authorised for issue in accordance with a resolution of the board of directors on May 24, 2018.

Note 2 : Basis of preparation

The standalone financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015.

For all periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with the accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). These financial statements are the Company’s first standalone financial statements prepared in accordance with Ind AS based on the permissible options and exemptions available to the Company in terms of Ind AS 101 ‘First time adoption of Indian Accounting standards’. Reconciliations and descriptions of the effect of the transition have been summarized in Note 5.

The standalone financial statements have been prepared on a historical cost basis, on the accrual basis of accounting except for certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).

The standalone financial statements are presented in Indian Rupees and all values are rounded to the nearest Rupees, except where otherwise indicated. Any discrepancies in any table between totals and sums of the amounts listed are due to rounding off.

(A) Key accounting estimates

1 Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value are measured using valuation techniques. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions relating to these factors could affect the reported fair value of financial instruments. See Note 31 for further disclosures.

2 Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cashflow (DCF) model. The cash flows are derived from the budget and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset’s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.

3 Taxes

Deferred tax assets are recognised for unused tax credits to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

The Company has Rs.87,33,115 as at March 31, 2018 (Rs.40,52,260 as at March 31, 2017 and Rs.NIL as at April 1, 2016) of tax credits carried forward. These credits can be utilised over the period of 15 years. The Company has taxable temporary difference and tax planning opportunities available that could support the recognition of these credits as deferred tax assets. On this basis, the Company has determined that it can recognise deferred tax assets on the tax credits carried forward. Refer to Note 22 for further details.

4 Property, Plant and Equipment

Refer to Note 3 (A) - 4 for the estimated useful life of Property, Plant and Equipment. The carrying values of Property, plant and equipment have been disclosed in Note 6.

5 Intangible assets

Refer to Note 3 (A) - 7 for the estimated useful life of Intangible assets. The carrying values of Intangible assets have been disclosed in Note 7.

6 Allowance for doubtful trade receivables

Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts.

Estimated irrecoverable amounts are derived based on a provision matrix which takes into account various factors such as customer specific risks, geographical region, product type, currency fluctuation risk, repatriation policy of the country, country specific economic risks, customer rating, and type of customer, etc. The allowances for doubtful trade receivables were Rs.6,07,736/- as at March 31, 2018 (as at March 31, 2017 : Rs. NIL and April 1, 2016 : Rs.NIL).

Individual trade receivables are written off when the management deems them not to be collectable.

Note 3 : Recent accounting pronouncements Standards issued but not yet effective

The amendments to standards that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective. The Ministry of Corporate Affairs(“MCA”) has issued certain amendments to Ind AS through (Indian Accounting Standards) Amendment Rules, 2018. These amendments maintain convergence with IFRS by incorporating amendments issued by International Accounting Standards Board(IASB) into Ind AS and has amended the following standards:

1. Ind AS 115-Revenue from Contract with Customers

2. Ind AS 21 -The effect of changes in foreign exchanges rates

3. Ind AS 40-Investment Property

4. Ind AS 12-Income Taxes

5. Ind AS 28-Investment in Associates and Joint Ventures

6. Ind AS 112-Disclosure of Interest in Other Entities

These amendments are effective for annual periods beginning on or after April 01, 2018. Applicationof these amendments will not have any recognition and measurement impact. However, it will require additional disclosure in the financial statements.

The Company is assessing the potential effect of the amendments on its financial statements. The Company will adopt these amendments, if applicable, from their applicability date.

Note 4 : TRANSITION TO IND AS

These financial statements are the Company’s first standalone financial statements prepared in accordance with Ind AS based on the permissible options and exemptions available to the Company in terms of Ind AS 101 ‘First time adoption of Indian Accounting standards’. For periods up to and including the year ended on March 31, 2017, 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 (previous 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 previous GAAP financial statements, including the balance sheet as at April 1, 2016 and the financial statements as at and for the year ended March 31, 2017.

4.1 Optional exemptions availed

1 Fair value measurement of financial assets or financial liabilities at Initial Recognition

Company has elected to apply requirement in paragraph B5.1.2A of Ind AS 109 prospectively to transactions entered into on or after the date of transition to Ind ASs.

2 Deemed Cost

The Company has elected to measure all its intangible assets at the previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS.

4.2 Applicable mandatory exceptions

1 Estimates

The estimates at April 1, 2016 and at March 31, 2017 are consistent with those made for the same dates in accordance with previous GAAP (after adjustments to reflect any differences in accounting policies, if any) apart from the following items where application of previous GAAP did not require estimation:

- FVTPL investments

- FVTOCI - debt securities

- Impairment of financial assets based on expected credit loss model

2 Classification and measurement of financial assets

As required under Ind AS 101, the classification of financial assets to be measured at amortised cost or fair value through other comprehensive income is made on the basis of the facts and circumstances that existed on the date of transition to Ind AS.

Notes :

i Amortisation of loan processing charges

Under previous GAAP, the loan processing charges were normally recognised as expense as and when incurred. Under Ind AS, borrowings have been measured at amortised cost using effective interest rate. This has resulted into amortisation of loan processing charges over the period of borrowings.

3. Adjustments to Statement of Cash Flows for the year ended 31^st March, 2017

There were no material differences between the Statement of Cash Flows presented under Ind AS and the Previous GAAP.

The Company has one class of equity shares having par value of Rs.10 each. Each shareholder is eligible for one vote per share held. The final 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 amount, in proportion to shareholding

The Board of Director of a Company, at their meeting held on 12^th December, 2015, and as approved by the members at their extra ordinary general meeting held on 12^th December, 2015, had issued and alloted 27,00,000 preferential warrants to non promoters as per SEBI ICDR guidelines at a price of Rs 60 per warrant,entitling the holder of such warrants to apply for and obtain one equity share of face value of Rs. 10/- each fully paid up against each warrant on or before 18 month from the date of allotment i.e. 12^th December, 2015. During the previous financial year, these warranrs were converted into equity shares with a premium of Rs 50 per share resulting in increase in share capital by Rs. 2,70,00,000/During the year, the company has allotted 21,34,872 equity shares of face value of Rs. 10 each at a price of Rs. 84/per equity share (including a premium of Rs. 74/- per equity share) on rights basis. Pursuant to which, the paid-up share capital of the company stands increased to Rs. 13,87,66,680 divided into 1,38,76,668 equity shares of Rs. 10/- each.

NOTE - 5 : OTHER EQUITY

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

Nature and purpose of reserves

Capital profit on forfeiture of equity shares:

The profit on forfeiture of equity shares for non payment of call money being capital in nature is showan as capital profit on forfeiture of equity shares.

Cash subsidy:

Subsidy received in cash from state government in accordance with its policy/resolution is shown as cash subsidy. 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.

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.

Retained earnings

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

I. Loan from Axis Bank Limited is secured against pari passu charge by way on mortgage on land and building situated at Village- Chhatral, Taluka : Kalol, Dist Gandhinagar, and fixed-assets of the company with other consortium bankers. Further it is also secured against pari pasu over entire current assets of company (present & future) and by personal guarantee of the Managaing Director and CEO of the Company.The said loan is repayable in 71 monthly installments of 17.30 Lakhs commencing from December-2014. The said loan carries an interest rate of 13.75 %.

II. Loan from Bank of India is secured against pari passu charge by way on mortgage on company land and building situated at Village- Chhatral, Taluka : Kalol, Dist Gandhinagar, and fixed-assets of the company with other consortium bankers Further it is also secured against pari pasu over entire current assets of company (present & future) and by personal guarantee of the Managaing Director and CEO of the Company The said loan is repayable in 72 monthly installments commencing from April-2015. The said loan carries an interest rate of 14.10 %.

III. Loan from Life Insurance Corporation of India is Secured against assignment of Keyman Insurance Policy .

IV. Machinery loan from Intec Capital Limited amounting to ‘ NIL (As at 31.03.2017 Rs. 22.18 Lakhs and As at 01.04.2016 Rs. 45.57 Lakhs) and Reliance Capital Limited amounting to NIL (As at 31.03.2017 NIL and As at 01.04.2016 Rs. 140.82 Lakhs) are secured against hypothecation of concerned machinery.

V. Vehicle Loan from Kotak Mahendra Bank Ltd & Hdfc Bank Limited amounting to Rs. 5.36 Lakhs (As at 31.03.2017 Rs. 8.46 Lakhs and As at 01.04.2016 Rs. 4.67 lakhs) is secured against hypothecation of vehicle.

VI. Working Capital Loans from the Axis Bank and Bank of India are secured against paripassu charge on current assets (both present & future) and extension of paripassu charge by way of mortagage of Companys land situated at Village - Chhatral, Taluka : Kalol, Dist Gandhinagar. Further the same are having collarteral securities by of paripassu over entrie moveable fixed- assets ( present & future) except sepecfily finance by other finance Company and are also secured against personal guarantee of Managing Director and CEO of the Company.

Note : Post Implementation of Goods and service Tax (GST) with effect from July 1, 2017, revenue from operations is disclosed net of GST. Revenue from the operations for the year ended March 31, 2018 includes excise duty till June 30,2017 only. Accordingly, revenue from operations for the year ended March 31, 2018 are not comparable with those of previous periods presented.

NOTE - 6 :Related Party Transactions as per Indian Accounting Standard 24:

The disclosure in pursuance to Indian Accounting Standard 24 on “Related Party disclosures” is as under:

i) Associate Company : Denis Plast Limited (up to 15^th February, 2017)

Vadan Marketing Pvt Ltd

ii) Key Management Personnel & their relatives : Dr. Himanshu C. Patel(Managing Director)

Dr. Himanshu C. Patel (HUF)

Mr. Nirmal H. Patel (Chief Executive Officer)

Mrs. Khushbu H. Shah (Company Secretary)

iii) Directors : Mr. Dinesh B. Patel

Dr. Gaurang Dalal Mrs. Anar H. Patel Mr. Janak G. Nanavaty Mrs. Gauri S. Trivedi

Enterprise owned or significantly influenced by key management personnel or their relatives: a) Transactions with the Related Parties during the period :

Note:

1 The amount in bracket represents the figures in respect of previous years.

2. The transaction with related parties are made on terms equivalent to those that prevail in arm’s length transactions.

3. The related party as well as transaction shown above is as certified by the Managing Director of the Company.

Note 7 : 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 investments, 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. It is the Company’s policy that no trading in financial instruments for speculative purposes may be undertaken.

1. 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 or Net assset value(“NAV”) risk in case of investment in mutual funds. Financial instruments affected by market risk include investments, trade receivables, trade payables, loans and borrowings and deposits.

The sensitivity analysis in the following sections relate to the position as at March 31, 2018 and March 31, 2017.

The sensitivity of the relevant profit and 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 and March 31, 2017.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on loans and borrowings. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment, showing a significantly higher volatility than in prior years.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities, i.e. when revenue or expense is denominated in a foreign currency.

Given below is the foreign currency exposure arising from the non derivative financial instruments:

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD and EURO exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities.

2 Credit Risk

Credit risk is the risk that 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 and financial institutions and foreign exchange transactions.

Trade receivables

Customer credit risk is managed by the Company’s internal policies, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an credit rating scorecard and credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit.

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.

Trade receivables are non-interest bearing and are generally on 0 days to 60 days credit term. Credit limits are established for all customers based on internal rating criteria. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically.

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 meet 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. The Company’s maximum exposure to credit risk for the components of the Balance sheet as of March 31, 2018, March 31, 2017 & April 1, 2016 is the carrying amount as disclosed in Note 9 and 12 except for financial guarantees. The Company’s maximum exposure for financial guarantee is given in Note 34.

3 Liquidity Risk

The Company monitors its risk of shortage of funds through using a liquidity planning process that encompasses an analysis of projected cash inflow and outflow.

The Company’s objective is to maintain a balance between continuity of funding and flexibility largely through cashflow generation from its operating activities and the use of bank loans. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding.

Note 8 : 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 a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder’s value.

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, trade and other payables, less cash and short-term deposits.

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.

NOTE 9 : DISCLOSURE OF MICRO, SMALL AND MEDIUM ENTERPRISES

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hense disclosures as required under section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 have not been made. The Compnay is making efforts to get the confirmations from the suppliers as regard to their status under the said Act.

NOTE 10 : SEGMENT REPORTING

In the opinion of the management, there is only one reportable segment (“Manufacturing, and Sales of Transfusion Solution in Bottles) as envisaged by Indian Accounting Standard 108 “Segment Reporting”. Further, from a geographical segment perspective, export sales constitute less than 10% of enterprise revenues. Accordingly, no separate disclosure for segment reporting is required to be made in the financial statements of the Company.

NOTE 11 : EMPLOYEE BENEFITS

Benefits by way of gratuity and leave encashment payble to retiring employees are measuered and accounted for in accordance with the present accounting policy of the Company as stated in Note 3A.14. The Company is taking adequate steps and process to get these liabilities valued by Acturian and the difference shall be accounted for in subsequent year. However, in the opinion of the management of the Company, no material or significant shortfall shall arise.

ii The presentation requirements under previous GAAP differs from Ind AS, and hence, previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The regrouped previous GAAP information is derived from the standalone financial statements of the Company prepared in accordance with previous GAAP.

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Mar 31, 2016

The Company has one class of equity shares having par value of Rs.10 each. Each shareholder is eligible for one vote per share held. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to shareholding.

D. The Board of Director of a company, at their meeting held on 12th December, 2015, and as approved by the members at their extra ordinary general meeting held on 12th December, 2015, have issued and alloted 27,00,000 preferential warrants to non promoters as per SEBI ICDR guidelines at a price of Rs.60 per warrant, entitling the holder of such warrants to apply for and obtain one equity share of face value of Rs.10/- each fully paid up against each warrant on or before 18 month from the date of allotment i.e. 12th December, 2015. 25% of the said price of warrant was paid up on subscription and balance 75% is to be paid upon exercise of entitlement to convert into equity shares as stated above .

I. Corporate loan from Axis Bank Limited is secured against first pari passu charge on the land at Block No. 460 and land at block No.457 of Village- Chhatral, Taluka : Kalol, Dist Gandhinagar, Plant and Machinery of the company with other consortium banks, fixed assets to be acquired out of bank finance with other consortium lenders. Further it is also secured against second charge on respective units of immovable properties & by personal guarantee of the Managaing Director of the company.

II. Corporate loan from Bank of India is secured against first pari passu charge on the land at Block No. 460 and land at block No.457 of Village- Chhatral, Taluka : Kalol, Dist Gandhinagar, Plant and Machinery of the company with other consortium banks, fixed assets to be acquired out of bank finance with other consortium lenders. Further it is also secured against second charge on respective units of immovable properties & by personal guarantee of the Managaing Director of the company.

III. Loan from Life Insurance Corporation of India is Secured against assignment of Keyman Insurance Policy .

IV. Machinery loan from Intec Capital Limted amounting to Rs.45.57 Lakhs (Previous year Rs.60.00 Lakhs) and Reliance Capital Limited amounting to Rs.140.82 Lakhs (Previous year Rs.39.89 Lakhs) are secured against hypothecation of concerned machinery.

V. Vehicle Loan from Kotak Mahendra Bank Ltd. amounting to Rs.4.67 Lakhs (Previous year Rs.6.21 Lakhs) is secured against hypothecation of vehicle.

I. Working Capital Loans from the Axis Bank is Secured against equitable mortagage of land situated at Block No . 460 of Village - Chhatral, Taluka : Kalol, Dist Gandhinagar. and exclusive charge by way of Stocks of Raw Materials, Work - in- Process , Finish Goods, Consumable Stores and Spares and such other movables including Book Debts. Further it is also secured against personal guarantee of Managing Director of the company.

II. Working Capital Loans from the Bank of India is Secured against equitable mortagage of land situated at Block No. 460 of Village - Chhatral, Taluka : Kalol, Dist Gandhinagar. and exclusive charge by way of Stocks of Raw Materials, Work - in- Process , Finish Goods, Consumable Stores and Spares and such other movables including Book Debts. Further it is also secured against personal guarantee of Managing Director of the company.

b) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.2,69,22,334/- (Previous Year Rs.5,10,47,302/-)

c) Balances of Debtors, Creditors and Loans and Advances in the Balance Sheet are subject to confirmation.

d) In the opinion of the management of the Company, provisions for all known liabilities have been made in the books of accounts. Further, the current assets and liabilities are stated at the value realizable in the ordinary course of business.

f) Under the Micro, Small and Medium Enterprises Development Act, 2006; certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The company is in the process of compiling relevant information from its suppliers about their coverage under the Act. Since the relevant information is not available, no disclosures have been made in the accounts.

g) The management of the company has carried out an exercise to ascertain impairment of Fixed Assets. In the opinion of the management of the company there are no indications of impairment of assets as at 31/03/2016 and therefore no effect of impairment is required to be given in the books of accounts.

i) C.I.F. Value of Imports in respect of Raw Materials : Nil (Previous Year Rs.3,71,484/-)

j) F.O.B. Value of Exports in respect of Goods : Rs.5,42,04,007/-(Previous Year Rs.4,21,72,467/-)

Note: The amount in bracket represents the figures in respect of previous year.

The related party as well as transaction shown above is as certified by the Managing Director of the Company.

l) The figures of previous year have been regrouped wherever necessary.

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Mar 31, 2015

Corporate Information:

Denis Chem Lab Limited is public limited company domiciled in India and incorporated in 1982 under the provisions of Companies Act, 1956. Its shares are listed on BSE in India. The company is engaged in the business of manufacturing of Pharmaceutical Products.

1) Contingent Liability not provided for:

Particulars As At As At 31-03-2015 31-03-2014 Rs. Rs.

i) In respect of counter guarantee 4,88,32,782 3,79,67,223 given by the bank

ii) Disputed demand not acknowledged as debt against which the company has preferred appeal:

Sales Tax 10,117,774 10,151,901

Income Tax 12,96,280 3,55,690

2) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.5,10,47,302/- (Previous Year Rs. 21,37,05,000/-)

3) Balances of Debtors, Creditors and Loans and Advances in the Balance Sheet are subject to confirmation.

4) In the opinion of the management of the Company, provisions for all known liabilities have been made in the books of accounts. Further, the current assets and liabilities are stated at the value realisable in the ordinary course of business.

5) Under the Micro, Small and Medium Enterprises Development Act, 2006; certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The company is in the process of compiling relevant information from its suppliers about their coverage under the Act. Since the relevant information is not available, no disclosures have been made in the accounts.

6) The management of the company has carried out an exercise to ascertain impairment of Fixed Assets. In the opinion of the management of the company there are no indications of impairment of assets as at 31/03/2015 and therefore no effect of impairment is required to be given in the books of accounts.

7) Unsecured Loans:

Unsecured loan from banks includes a sum of Rs. Nil (Previous year Rs. 4,12,813/-) borrowed from the different banks for the purpose of the business of the company sanctioned to Managing Director of the company in his personal capacity.

8) C.I.F. Value of Imports in respect of Raw Materials : Rs. 3,71,484/-(Previous Year Rs. 13,44,980/-)

9) F.O.B. Value of Exports in respect of Goods : Rs. 4,21,72,467/-

10) RELATED PARTY DISCLOSURES:-

a) Name of the Related Parties:-

i) Associate Company : Denis Plast Limited

ii) Key Management Personnel : Dr. Himanshu C. Patel

& their relatives : Dr. Himanshu C. Patel (HUF)

Mr. Nirmal H. Patel

iii) Directors : Shri Dinesh B. Patel

Dr. Gaurang Dalal

Ms. Anar H. Patel

Ms. Gauri S. Trivedi

Mr. Janak G. Nanavaty

The related party as well as transaction shown above is as certified by the Managing Director of the Company.

11) The figures of previous year have been regrouped wherever necessary.