Notes to Accounts of Shukra Pharmaceuticals Ltd.

Mar 31, 2015

1. As the company does not have details of registration status of their suppliers / creditors in reference to Micro, Small and Medium Enterprise Development Act, 2006, so no details have been provided under clause 22 of said act and accordingly no provision has been made for the same.

2. Excise duty on sales has been reducted from revenue from operations in profit and loss and excise duty on increase / decrease in stock amount has been grossed up in the value of finished goods in note no 16c of the financial statements.

3. Other income includes profit on sale of fixed assets of the company and also liabilities which are now no more payable as per the best assumption and decision of the management of the company.

4. The company reports basic earnings per share in accordance with Accounting Standard (AS) 20 on 'Earnings Per Share'. Basic EPS is computed by dividing the net profit after tax for the year by the weighted average number of equity shares outstanding during the year.

5. Related Party Disclosures

As per Accounting Standard (AS) 18 on 'Related Party Disclosures', related parties and transactions with related parties information has been provided separately as an attechment to notes to account.

6. Segment Reporting Business Segments

The primary reporting of the Company has been performed on the basis of business segment. The company operates in a single business segment of Pharmaceuticals. Accordingly no additional disclosures are required as per Accoutning Standard 17 on Segment Reporting.

7. Geographical Segments

Secondary segmental reporting is performed on the basis of the geographical location of customers. The management views the Indian market and export market as distinct geographical segments. Further the company has whole business in Indian market only. Accordingly no additional disclosures are required as per Accounting Standard 17 on Segment Reporting.

8. Contingent Liabilities and Commitments

a. As per the information available with the management and based on that with the best judgement by the management, there is no such contingent liabilities including appeal filed by income tax department for which provision is required.

b. Assessment proceedings under VAT Act is under process for which management is of the openion that there is no requirement to identify or make provision of any future liability if ascertained.

9. Other notes

a) Number of employees who were employed throughout the year and were in receipt of remuneration of Rs 60,00,000/- per annum or more are nil during the current year as well as in previous year.

b) Number of employees who were employed for the year and were in receipt of remuneration of Rs 5,00,000/- per month or more are nil during the current year as well as in previous year.

c) Balances shown under the head of "Secured loans", "Unseucred Loans", "Sundry Debtors", "Sundry Creditors" are subject to confirmation of parties concerned.

d) In the openion of the directors of the company, the value of current assets shown in the Balance sheet are approximately of the value stated, if realised in the ordinary course of business.

e) Figures have been rounded off to the nearest rupee.

10. Prior years' comparatives

a) The previous years' figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amount and other disclosure for the preceding year are included as an integral part of the current year financial statement and are to be read in relation to amount and other disclosures relating to the current year.

11. Related Party Disclosures

As per As 18, the disclosures of transactions with the related parties are given below:

A. (I) Key Management Personnel:

Sr. No. Name of Person (FY 2014-15) Name of Person (FY 2013-14)

1 Dakshesh Rameshchandra Shah Dakshesh Rameshchandra Shah

2 Harsh Jitendrakumar Shah Harsh Jitendrakumar Shah

3 Payalben Sujay Mehta Payalben Sujay Mehta

4 Sujay Jyotindra Mehta Sujay Jyotindra Mehta

5 Anar Jayesh Patel Anar Jayesh Patel

6 Mihirbhai Patel

7 Riddhiben Patel

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Mar 31, 2014

1. EARNINGS PER SHARE:

The Company reports Basic Earnings Per Share in accordance with Accounting Standard - 20; "Earnings Per Share" issued by The Institute of Chartered Accountants of India. Basic EPS is computed by dividing the Net Profit after Tax for the year by the weighted average number of Equity Shares outstanding during the year.

2. RELATED PARTY DISCLOSURES:

A. (I) Key Management Personnel:

* Dakshesh Rameshcandra Shah.

* Harsh Jitendrakumar Shah.

* Payalben Sujay Mehta.

* Sujay Jyotindra Mehta.

* Anar Jayesh Patel.

* Mihirbhai Patel

* Riddhiben Patel

(II) Associates Concerns & Relatives of Key Management Personnel:

* Innovative Infraplus India Ltd.

* Proper Delcom Pvt Ltd

* Navkar Surgical Ltd

* Jignaben M Patel

* Mahendrabhai M Patel

* Manibhai Motibhai Patel

* Mitaben Mahendrabhai Patel

* M M Patel & Jont

* Naim Mihir Patel

* Pravinkumar Motibhai Patel

* R K Patel

* Tapan Patel

3. As per information available with us, the Company has filed a Composite Scheme of Arrangement under provisions of sections 391 to 394 of the Companies Act, 1956, for revival of Relish Pharmaceuticals Limited and amalgamation of Proper Dealcomm Private Limited with Relish Pharmaceuticals Limited and reorganisation of share capital of Relish Pharmaceuticals Limited vide Company petition no. 9/2013 and 10/2013 with the Hon''able High Court of Gujarat which has been put up for final hearing.

4. (i) Value of Import on CIF Basis:

CIF value of Imports during the year are ''NIL ( Previous year'' Nil)

(ii) Earnings in Foreign Currency :

Company''s foreign exchange earnings (FOB Value) are''NIL

(Previous year'' Nil)

(iii) Expenditure in foreign currency :

Company''s foreign exchange Expenditure are'' Nil (Previous year Nil)

(1) Number of employees who were:

(a) Employed throughout the year and were in receipt of remuneration of Rs 60,00,000/- per annum or more are nil. (Previous Year Nil)

(b) Employed for part of the year and were in receipt of remuneration of Rs 5,00,000/-per month or more are nil. (Previous Year Nil)

5. Balances shown under the head of " Secured Loans ", " Unsecured Loans ", " Sundry Debtors", " Loans and Advances " and " Sundry Creditors " are subject to confirmation of parties concerned.

6. In the opinion of the Directors of the company, the value of current assets shown in the Balance Sheet are approximately of the value stated, if realised in the ordinary course of business.

7. Figures have been rounded off to the nearest rupee.

8. The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amount and other disclosure for the preceding year are included as an integral part of the current year financial statement and are to be mad in relation to amount and other disclosures relating to the current year.

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Mar 31, 2013

1. EARNINGS PER SHARE:

The Company reports Basic Earnings Per Share in accordance with Accounting Standard - 20; "Earnings Per Share" issued by The Institute of Chartered Accountants of India. Basic EPS is computed by dividing the Net Profit after Tax for the year by the weighted average number of Equity Shares outstanding during the year.

2. RELATED PARTY DISCLOSURES:

A. (I) Key Management Personnel:

Payalben Mehta

Dr. Sujay Mehta

(II) Associates Concerns & Relatives of Key Management Personnel:

Parshva Texchem (India) Pvt Ltd Navkar Surgicals Gujarat Ltd Anar Projects Ltd Jignaben Patel

Mahendrabhai Patel Manibhai Patel

Mitaben Patel

Pravinkumar Patel

R K Patel

Tapan Patel

3. As per information available with us, the Company has filed a Composite Scheme of Arrangement under provisions of sections 391 to 394 of the Companies Act, 1956, for revival of Relish Pharmaceuticals Limited and amalgamation of Proper Dealcomm Private Limited with Relish Pharmaceuticals Limited and reorganization of share capital of Relish Pharmaceuticals Limited vide Company petition no. 9/2013 and 10/2013 with the Hon''able High Court of Gujarat which has been put up for final hearing.

4. (i) Value of Import on CIF Basis :

CIF value of Imports during the year are Rs. NIL (Previous year Rs. Nil)

(ii) Earnings in Foreign Currency:

Company''s foreign exchange earnings (FOB Value) are Rs.NIL (Previous year Rs. Nil)

(iii) Expenditure in foreign currency:

Company''s foreign exchange Expenditure is Rs.Nil (Previous year Rs.Nil)

(1) Number of employees who were:

(a) Employed throughout the year and were in receipt of remuneration of Rs. 60,00,000/- per annum or more are nil. (Previous Year Nil)

(b) Employed for part of the year and were in receipt of remuneration ofRs. 5,00,000/-per month or more are nil. (Previous Year Nil)

5. Balances shown under the head of " Secured Loans ", " Unsecured Loans ", " Sundry Debtors", " Loans and Advances " and " Sundry Creditors " are subject to confirmation of parties concerned.

6. In the opinion of the Directors of the company, the value of current assets shown in the Balance Sheet are approximately of the value stated, if realised in the ordinary course of business.

7. Figures have been rounded off to the nearest rupee.

8. The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amount and other disclosure for the preceding year are included as an integral part of the current year financial statement and are to be read in relation to amount and other disclosures relating to the current year.

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Mar 31, 2012

(i) Term loan form Union Bank of India is secured by way of first charges on New Factory Building

(ii) Term Loan from Syndicate Bank is secured by way of first charge on fixed assets located at the first floor of the f ctory, second charge on other immovable assets of the Company, Corporate Guarantee of the Director.

(iii) Term Loan from Visnagar Nagarik Sahkari Bank Ltd. have been secured against office premises at New York Tower '' , ''

1(i) Working Capital from loans from Union Bank of India has been secured by way of first charge on all fixed assets of the company except the fixed assets financed by Syndicate Bank on first floor of the factory, hypothetication of stock & book debts, Mortgage of Registered office premises of the Company, Mortgage of Residential flat of the Directors, Corporate and personal guarantees of Directors and Pledge of a portion of equity charges of the company

1. Estimated amount of contracts remaining to be executed on capital accounts is Rs. Nil (Previous year Rs. Nil). -h*"*1

2. Balances shown under the head of " Secured Loans", " Unsecured Loans", " Sundry Debtors", " Loans and Advances" and " Sundry Creditors " are subject to the confirmation by the parties concerned-

3. Retirement benefits, gratuity, le;Jre encashment, etc. has not been provided in the accounts of the company . Th a have been dealt with on cash basis. This is not in accordance with Accounting Standard 15 for Accounting for Retirement Benefits in the Financial Statement of Employers issued by the Institute Chartered Accountants of India

4. As informed by'' the management, the company has not maintained cost records under section 209(1) (d) of the companies Act, 1956 and rules made there under by the Central Government in this regard.

5. In the opinion of the Directors of the company, the value of current assets shown in the Balance sheet are approximately of the value stated, if realized in the ordinary course of business.

6. CIF value of Imports during the year

CIF value of Imports during the year are Rs.NIL.(Previous Year Rs.Nil/-) FOB Value of exports company''s foreign exchange earning (FOB Value) are Rs Nil (Previous year Rs.Nil)

7. (1) Number of employees who were:

(a) Employed through out the year and were in receipt of remuneration of Rs.2400000/- per annum nil.(previous Year Nil)

(b) employed for part of the year and were in receipt of remuneration of Rs.200000/-per month nil. (Previous Year nil)

8. Figures of the previous year have been re-grouped and re-arranged wherever necessary to make them comparable with the figures of the current year.

9. Figures have been rounded off to the nearest rupee.

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Mar 31, 2010

(1) Contingent Liabilities:

Claims against the Company not acknowledged as debts for income tax for as at 31st March, 2010

(2) Retirement benefits, gratuity, leave encashment, etc. has not been provided in the accounts by the Company. They have been dealt with on cash basis. This is not in accordance with Accounting Standard 15 for Accounting for Retirement Benefits in the Financial Statements of Employers issued by the Institute of Chartered Accountants of India.

(3) In view of the accumulated losses, unabsorbed depreciation and current losses, the Company has not recognized deferred tax assets (net) in accordance with the Accounting Standard 22 issued by the Institute of Chartered Accountants of India by way of prudence.

(4) Due to continuing losses, the net worth of the Company has been eroded by more than fifty thereof. However, it is informed that the Company has been in dialogue with the Bankers and shall propose the restructuring of existing outstanding loans for adequate net worth and working capital funds to be made available in future for continuing the operation. Accordingly, the accounts for the year have been prepared on a going concern basis.

(5) Balance of creditors, other liabilities, debtors, loans and balances with banks, in current accounts and deposits are subject to confirmation and reconciliation. In respect of the old debtors, the Auditor has relied on the judgment of the management of the company as to the recoverability in absence of direct confirmation.

(6) The Company has Capital Work in progress for building for Rs. 4,56,710 in respect of which no provision of impairment is required to be made in the opinion of the management of the Company.

(7) As informed by the management, the Company has not maintained cost records under section 209(1 )(d) of the Companies Act, 1956 and rules made thereunder by the Central Government in this regard.

(8) The details as to the names of the Small Scale Industrial undertakings to whom the Company owes a sum, and which is outstanding for more than 30 days as on 31st March, 2010 have not been given in view of information in this regard not made available to us.

(9) The names of related parties with relationship and transactions with them are disclosed as under :

(A) Relationship:

(I) Subsidiary Company :

(II) Other related Parties :

(III) Key Management Personnel :

Mr. Mihir Patel

Mrs. Riddhi Patel

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Mar 31, 2009

(1) Contingent Liabilities:

Claims against the Company not acknowledged as debts Tor income tax for as at 31st March 2009.

(2) Retirement benefits, gratuity, leave encashment, etc. has not been provided in the accounts by the Company. They have been dealt with on cash basis. This is not in accordance with Accounting Standard 15 for Accounting for Retirement Benefits in the Financial Statements of Employers issued by the Institute of Chartered Accountants of India.

(3) In view of the accumulated losses, unabsorbed depreciation and current losses, the Company has not recognized deferred tajt assets (net) in accordance with the Accounting Standard 22 issued by the Institute of Chartered Accountants of India by way of prudence,

(4) Due to continuing losses, the net worth of the Company has been eroded bhy more than fifty percent thereof,. However, it is informed that the Company has been in dialogue with the Bankers and shalt propose the restructuring of existing outstanding loans for adequate net worth and working capital funds to be made available in future for continuing the operation. Accordingly, the accounts for the year have been prepared on a going concern basis.

(5) Balance of creditors, other liabilities, debtors, loans and balances with banks, in current accounts and deposits are subject to confirmation and reconciliation as in the case of banks most of the accounts are showing negative bank balance, in respect of the old debtors, the Auditor has relied on the judgement of the management of the company as to the recovcrability in absence of direct confirmation.

(6) The Company has Capital Work in progress for building for Rs, 4,56,710 in respect of which no provision of impairment is required to be made in the opinion of the management of the Company.

(7) As informed by the management, the Company has not maintained cost records under section 209(1 ){d) of the Companies Act, 1956 and rules made there under by the Central Government in this regard.

(8) The details as to the names of the Small Scale Industrial undertakings to whom the Company owes a sum, and which is outstanding for more than 30 days as on 31Et March 2009 have not been given in view of information in this regard not made available to us.

(9) The mimes of related parties with relationship and transactiens with thorn are disclosed as under;

(A) Relationship:

(I) Subsidiary Company :

(II) Other related Parties ;

(III) Key Management Personnel :

Mr. Mihir Patel /Mr&. Riddhi Patel

Related parties relationship is as identified by the Company and relied up and accepted by the auditor. Details of transactions with related party in the ordinary course of business are as under;

Salary and perquisites to Mr.Mihir Patel Rs. 3,00,000/-

Salary and perquisites to Mrs.Riddhi Palel Rs. 1,00,000/-

Salary and perquisites to Mrs. Ramilaben Rs, 47,170/-

(10) Profit & Loss account includes Managerial remuneration :

2008-2009 20Q7-200& Salary and Perquisites 6,47,000 5,40,000

(11) In the opinion of the management of the Company, the Company has only one segment viz, pharmaceutical and drugs-, hence no separate disc loser of segment wist information has been made.