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Notes to Accounts of Suven Life Sciences Ltd.

Mar 31, 2022

12(a).2 Terms/ rights attached to equity shares

The company has only one class of Equity shares having par value of B 1. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the company in proportion to the number of and amounts paid on the shares held.

Every holder of equity shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Nature and purpose of reserves

Securities premium reserve:

The amount received in excess of face value of the equity shares is recognised in securities premium reserve . The reserve is utilised in accordance with the provisions of companies Act 2013.

General Reserve:

General reserve is used from time to time to transfer the profits from retained earnings for appropriation purpose. Retained Earnings:

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distribution to share holders.

Other Comprehensive Income:

Difference between the interest income on plan assets and the return actually achieved, any changes in the liabilities over the year due to changes in actuarial assumptions or experience adjustments within the plans, are recognised in other comprehensive income and subsequently not reclassified into statement of profit and loss.

Dues to micro and small enterprises:

With the promulgation of the Micro, Small and Medium Enterprises Development Act, 2006, the Company is required to identify Micro, Small and Medium Suppliers and pay them interest on overdue beyond the specified period irrespective of the terms with the suppliers. The Company has circulated letter to all suppliers seeking their status. Response from few suppliers has been received and is still awaited from other suppliers. In view of this, the liability of interest calculated and the required disclosures made, in the below table, to the extent of information available with the Company.

*The Compensated Absences (Leave Obligations) covers the company''s liability for earned leave which is classified as other long-term benefits. The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured at the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefit is discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligations

**Post-employment obligations- Gratuity:(Defined benefit

The Company provides gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity benefit. 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 and the Company makes contributions, through an approved trust, to recognised funds administered by Life Insurance Corporation of India (Insurer). Remeasurements as a result of the experience adjustments and changes in actuarial assumptions are recognized in Other Comprehensive Income.

(ii) Defined Benefit plan 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 day salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to recognized funds in India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the Company.

(v) Risk exposure

Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below:

Asset Volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets under perform this yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in government securities. A portion of the fund is invested in equity securities and in alternative investments which have low correlation with equity securities. The equity securities are expected to earn a return in excess of the discount rate and contribute to the plan deficit. The

company has a risk management strategy where the aggregate amount of risk exposure on a portfolio level is maintained at a fixed range. Any deviations from the range are corrected by rebalancing the portfolio. The company intends to maintain the investment mix in the continuing years.

Changes in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially off-set by an increase in the value of the plan''s bond holdings.

Inflation risk: In the pension plans, the pensions in payment are not linked to inflation, so this is a less material risk.

Life expectancy: The pension obligation are to provide benefits for the life of the member, so increase in life expectancy will result in an increase in the plan''s liabilities. This is particularly significant where inflationery increases result in higher sensitivity to changes in life expectancy.

The company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long term investments that are in line with the obligations under the employee benefit plans. Within this framework, the company''s ALM objective is to match the assets to the pension obligations by investing in long term fixed interest securities with maturities that match the benefit payments as they fall due and in the appropriate currency.

The company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The company has not changed the processes used to manage its risks from previous periods.

Interest Rate : A decrease in bond yields will increase plan liabilities, although this will be partially off-set by an increase in the value of the plan''s bond holdings.

Investment Risk: If actual return on plan assets as below this rate , it will create a plan deficit Salary Risk: Higher than expected increase in salaries increases the defined benefit obligations

Demographic Risk: The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment . An increase in the life expectancy of the plan participants will increase the plans liability

Other Long term benefit plans Compensated Absences

The Company provides for accumulation of compensated absences in respect of certain categories of employees. These employees can carry forward a portion of the unutilised compensated absences and utilise them in future periods or receive cash in lieu there of as company policy

Actuarial valuation for compensated absences is done as at the year end and provision is made as per company policy with corresponding (gain)/Charge to the statement of profit and loss amounting to B 232.79 Lakhs (31st March, 2021 : B85.22 Lakhs)

(vi) Defined benefit liability and employer contributions

The company has agreed that it will aim to eliminate the deficit in defined benefit pension and gratuity plan over the next nine years. Funding levels are monitored on an annual basis and the current agreed contribution rate is 12% of the basic salaries. The company considers that the contribution rate set at the last valuation date are sufficient to eliminate the deficit over the agreed period and that regular contributions, which are based on service costs will not increase significantly.

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

The company''s risk management is carried out by the management. Company treasury identifies, evaluates and hedges financial risk in close cooperation with the company''s operating units. The management provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, credit risk, and investment of excess liquidity.

(A) Credit Risk Management

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.

(ii) Financial Instruments and Cash Deposits

The company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have good credit ratings. The company does not expect any loss from non performance by these counter parties and does not have any significant concentration of exposure to specific industry sectors or specific country risks

(B) Liquidity Risk:

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to dynamic nature of the underlying business, company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the company''s liquidity position(comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in the company in accordance with practice and limits set by the company. These limits vary by location to take into account the liquidity of the market in which the entity operates. In addition, the company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

(i) Foreign Currency Risk

The company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD, GBP and EUR. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign forecast transactions.

The company''s risk management policy is to hedge part of forecasted foreign currency sales for the subsequent months. As per the risk management policy, foreign exchange forward contracts are taken to hedge part of the forecasted sales by taking consultancy from external treasury management forms . The imports were hedged naturally by payment through EEFC account.

C) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk and interest rate risk.

(ii) 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 change in market interest rates.

(ii)(b) Sensitivity

The Company has taken long term and short term borrowings on fixed rate of interest. Since, there is no interest rate risk associated with such fixed rate loans; an interest rate sensitivity analysis has not been performed.

Note 27: Capital Management

(a) Risk management

The Company''s objective when managing capital are to:

1. Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

2. Maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debts

Note 28: Segment Information

(a) Description of segments and principal activities

The Chief Executive Officer has been identified as being the chief operating decision maker(CODM). The CODM examines the Company''s performance both from a product and a geographic perspective and has identified two reportable segments:

Operating segments

The Company is engaged in a single operating segment of providing Research and Development services. Accordingly, there are no additional disclosures to be provided Ind AS 108 ''Operating Segments'' other than those already provided in the financial statements.

Note 33: Scheme of Arrangement (Demerger)

The National Company Law Tribunal, Hyderabad Bench vide its order dated January 06, 2020 has approved the scheme of arrangement for demerger of CRAMS undertaking of Suven Life Sciences Limited to the Company with effect from October 01, 2018 (the appointed date). Pursuant to the Scheme, all the assets, liabilities, income and expenses of the CRAMS undertaking have been transferred to the Resulting Company i.e., Suven Pharmaceuticals Limited with effect from the appointed date.

Note 34: Impairment of the Investment in Suven Neurosciences, Inc.:

The company stay focused on clinical development of NCEs targeting various Neurodegenerative diseases under Central Nervous System disorders and keep developing protocols for continuing the studies on clinical development programs for various indications, for which the company has invested $54.24 Mn (INR 381 Crores) since 2015 in Suven Neurosciences, Inc., the wholly owned subsidiary in USA. and the investment there on continue to remain unimpaired.

Note 35: Covid impact on the business and going concern assumption of the company and its subsidiary:

COVID-19 had not impacted the company''s research operations, which includes our subsidiary, Suven Neurosciences, Inc. However, we are foreseeing certain delays in enrollment of ongoing phase 2 clinical studies conducted in USA.

Note 36: Warrants:

During the year ended 31-03-2022 the Board of Directors in its meeting held on 28th March''2022 has approved the conversion of 1,81,00,000 share warrants into equal number of equity shares to promoter group.

Note 37: Employee Stock Option Scheme (ESOP):

Suven Life Employee Stock Option Scheme 2020 (SLSL ESOP 2020) was approved by shareholders at the 31st Annual General Meeting held on 17th September, 2020. The nomination & remuneration committee of the board of Suven Life Sciences Limited administers the ESOP plans and grant stock options to the eligible employees . In terms of the SLSL ESOP 2020 scheme the total number of options to be granted are 10,00,000

(iv) The Group has not traded or invested in Crypto currency or Virtual Currency during the financial year.

of (Face value) B 1/- each. Each option entitles the holder thereof to apply for one equity share of the Company of B 1/- each upon payment of the exercise price during the exercise period. However, the Company has not granted any options under the scheme during the year ended 31st March, 2022. Therefore, the disclosure requirement for the summary of options granted under the scheme, outstanding options, fair value of options granted, expenses incurred from share based payment transactions and Earning Per Share is not applicable

(v) The Group has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(vi) The Group has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vii) The Group 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 Group shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(viii) The Group does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

Note 40 : Previous year figures have been regrouped and reclassified wherever considered necessary to conform to this year''s classifications.

Note 39 : Other statutory information

(i) The Group does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

(ii) The Group does not have any transactions with companies struck off.

(iii) The Group does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,


Mar 31, 2018

1 Company overview

Suven Life Sciences Limited (Suven) is a bio-pharmaceutical company, began operations in 1989 as specialty chemicals provider about 28 years ago and went on to create a NCE based CRAMS (Contract Research And Manufacturing Services) business model in 1995, providing building blocks (bulk actives, drug intermediates and speciality chemicals) for global life science companies. Suven has made in-roads into drug discovery in the year 2005 with a specialisation on CNS (Central Nervous System) based programs targeting unmet medical need and 4 of the molecules in pipeline are into clinical phase of development. The Company is targeting CNS indications where there is a high unmet medical need, patient populations are identifiable, clinical endpoints can be well-defined and with possible commercialisation options. Suven Neurosciences, Inc., a Delaware Company, is a WOS (wholly owned subsidiary) of Suven, is a clinical-stage bio-pharmaceutical company commenced activities in October 2015, focused on the acquisition, development and commercialisation of novel therapeutics for the treatment of neurodegenerative disorders. The nearterm focus for Suven Neurosciences Inc., is to develop Suven product candidate, which we refer to as SUVN-502, for the treatment of Alzheimer’s disease and other forms of dementia.

Secured borrowings and assets pledged as security

Non-current borrowings are secured by first and pari-passu charge on Land, Buildings, Plant & Machinery and Second charge on stocks, receivables and other current assets

Current borrowings are secured by pari-passu first charge on inventories, receivables and other current assets of the company and pari-passu second charge on movable and immovable fixed assets of the company and equitable mortgage of the properties belonging to the company, both present and future.

The carrying amounts of financial and non-financial assets pledged as security for current and non-current borrowings are disclosed in note 38.

(i) Post-employment obligations

a) Gratuity- Defined benefit plan

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 day salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to recognized funds in India. The company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

(v) Risk exposure

Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below:

Asset Volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets under perform this yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in government securities. A portion of the fund is invested in equity securities and in alternative investments which have low correlation with equity securities. The equity securities are expected to earn a return in excess of the discount rate and contribute to the plan deficit. The company has a risk management strategy where the aggregate amount of risk exposure on a portfolio level is maintained at a fixed range. Any deviations from the range are corrected by re-balancing the portfolio. The company intends to maintain the investment mix in the continuing years.

Changes in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially off-set by an increase in the value of the plan’s bond holdings.

Inflation risk: In the pension plans, the pensions in payment are not linked to inflation, so this is a less material risk.

Life expectancy: The pension obligation are to provide benefits for the life of the member, so increase in life expectancy will result in an increase in the plan’s liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.

The company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long term investments that are in line with the obligations under the employee benefit plans. Within this framework, the company’s ALM objective is to match the assets to the pension obligations by investing in long term fixed interest securities with maturities that match the benefit payments as they fall due and in the appropriate currency.

The company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The company has not changed the processes used to manage its risks from previous periods.

A large portion of assets in 2018 consists of government and corporate bonds, although the company also invests in equities, cash and mutual funds. The company believes that equities offer the best returns over the long term with an acceptable level of risk. The majority of equities are in a globally diversified portfolio of international blue chip entities, with a target of 60% equities held in India. The plan asset mix is in compliance with the requirements of the respective local regulations.

(vi) Defined benefit liability and employer contributions

The company has agreed that it will aim to eliminate the deficit in defined benefit pension and gratuity plan over the years. Funding levels are monitored on an annual basis and the current agreed contribution rate is 12% of the basic salaries. The company considers that the contribution rate set at the last valuation date are sufficient to eliminate the deficit over the agreed period and that regular contributions, which are based on service costs will not increase significantly.

The weighted average duration of the defined benefit obligation is 13.24 years . The expected maturity analysis of undiscounted gratuity is as follows:

This note provides an analysis of the company’s income tax expense, show amounts that are recognised directly in equity and how the tax expense is affected by non-assessable and non-deductible items. It also explains significant estimates made in relation to the company’s tax positions.

Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are considered to be the same as their fair values, due to their short term nature.

The fair values of non-current borrowings are based on discounted cash-flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

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

NOTE 2: FINANCIAL RISK MANAGEMENT

The company’s activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance of the company, derivative financial instruments, such as foreign exchange forward contracts are entered to hedge certain foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments. This note explains the sources of risk which the entity loss exposed to and how the entity manages the risk and the impact of them in the financial statements

The company’s risk management is carried out by the management. Company treasury identifies, evaluates and hedges financial risk in close cooperation with the company’s operating units. The management provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, credit risk, use of derivative financial instruments and non derivative financial instruments and investment of excess liquidity.

(A) Credit Risk Management

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.

i) Financial instruments and cash deposits

For banks and financial institutions, only high rated banks/ institutions are accepted. Other Financial assets (excluding Bank deposits) majorily constitute deposits given to State electricity departments for supply of power, which the company considers to have negligible credit exposure. Counterparty credit limits are reviewed by the Company’s Board of Directors on an annual basis, and may be updated throughout the year. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.

ii) Expected credit loss for trade receivables under simplified approach

For trade receivables , the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables

(B) Liquidity Risk:

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to dynamic nature of the underlying business, company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the company’s liquidity position(comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in the company in accordance with practice and limits set by the company. These limits vary by location to take into account the liquidity of the market in which the entity operates. In addition, the company’s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

C) Market risk - foreign exchange risk

The company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD, GBP and EUR. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company’s functional currency (INR). The risk is measured through a forecast of highly probable foreign forecast transactions.

The company’s risk management policy is to hedge part of forecasted foreign currency sales for the subsequent months. As per the risk management policy, foreign exchange forward contracts are taken to hedge part of the forecasted sales by taking consultancy from external treasury management forms . The imports were hedged naturally by payment through EEFC account.

Foreign currency risk exposure:

The company’s exposure to foreign currency risk at the end of the reporting period expressed in INR are as follows:

D) Market risk - interest risk

Cash flow and fair value interest rate risk

The company’s main interest rate risk arises from long-term borrowings with variable rates, which expose the company to cash flow interest rate risk.

(a) Interest rate risk exposure

The exposure of the company’s borrowings to interest rate changes at the end of the reporting period are as follows:

(b) Sensitivity

Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of changes in interest rates. Other components of equity change as a result of increase/decrease in the fair value of cash flow hedges related to the borrowings if any

NOTE 3: CAPITAL MANAGEMENT

(a) Risk management

The Company’s objective when managing capital are to:

1. Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

2. Maintain and optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debts

Consistent with others in the industry, the company monitors capital on the basis of the following gearing ratio: -Net debt (total borrowings net of cash and cash equivalents) divided by total equity (as shown in the balance sheet)

(i) Loan covenants:

During the tenor of the facility with the bank , the following financial covenant should be complied with:

Current Ratio Minimum of 1.33 times

TOL/TNW Maximum of 1.75 times

Interest Coverage Ratio Minimum of 2.00 times

Debt Service Coverage Ratio Minimum of 1.50 times

Borrower to maintain the above financial indicators at the stipulated levels during the currency of the facility. In case of non-compliance of any covenant or other terms and conditions of sanction, penal interest @ 2% per annum above the applicable rate on the utilized facilities shall be charged. Such Interest shall be charged for the period of default/ noncompliance on the amount outstanding under the facility. Such interest shall also be payable/ compounded on monthly basis

During the year ended 31st March 2015 the company has raised Rs. 20,000 lakhs primarily for clinical development expenses, capital expenditure and general corporate purposes and any other purposes as may be permissible under applicable law.

NOTE 4: SEGMENT INFORMATION Description of segments and principal activities

The Chief Executive Officer has been identified as being the chief operating decision maker(CODM). The CODM examines the Company’s performance both from a product and a geographic perspective and has identified two reportable segments:

Business Segment

Segments have been identified and reported taking into account the nature of products, the differing risk and returns,the organisation structure,and the internal financial reporting scheme. The company has identified the following segments as its reportable segments:

(a) Manufacturing (CRAMS)

(b) Services (DDDSS)

(c) Research and Development

I. Manufacturing (CRAMS) - Bulk Drugs & Intermediates under contract services products are developed and produced on an exclusive basis under contract Manufacturing services

II. Services (DDDSS) - Which consists of Collaborative Research Projects (CRP), Clinical Trials and Testing and Analysis services Geographical Segment

The Company has identified the following geographical reportable segments:

(a) India-The company sells Bulk Drugs and Intermediates and Fine Chemicals.

(b) USA -The company sells Intermediates

(c) Europe-The company sells Bulk Drugs and Intermediates

(d) Others -The company sells Bulk Drugs and Intermediates

The Company’s subsidiaries as at March 31, 2018 are set out below. Unless otherwise stated, they have share capital consisting solely of equity shares that are held directly by the Company

(a) Holding Company : M/s. Jasti Property and Equity Holdings Private Limited

(In its capacity as sole trustee of the Jasti Family Trust)

(b) Subsidiaries: : M/s. Suven Neurosciences Inc. (Formerly Suven Inc.)

(c) Key Management personnel (KMP) : Mr. Venkateswarlu Jasti ( Chairman & CEO)

Mrs. Sudharani Jasti ( Whole-time Director)

Mr. P. Subba Rao (Chief Financial Officer)

Mr. K. Hanumantha Rao (Company Secretary)

(d) Relative of Key Management personnel : Ms. Kalyani Jasti ( Daughter of Mr.Venkateswarlu Jasti)

Ms. Sirisha Jasti (Daughter of Mr. Venkateswarlu Jasti)

(e) Jointly controlled entity : Suven Trust

NOTE 5: SHARE BASED PAYMENTS

(a) Employee option plan

Suven Employee Stock Option Scheme -2004 was approved by shareholders at the 2004 annual general meeting. Each option entitles the holder thereof to apply for and be allotted one equity share of the Company of Re.1.00 each upon payment of the exercise price during the exercise period. The exercise period commences from the date of vesting of the Options and expires at the end of three years from the date of vesting in respect of Options granted under the Suven Employee Stock Option Scheme -2004

The vesting period for conversion of Options is as follows:

On completion of 24 months from the date of grant of the Options: 25% vests On completion of 36 months from the date of grant of the Options: 35% vests On completion of 48 months from the date of grant of the Options: 40% vests

The Options have been granted at the ‘market price’ as defined from time to time under the Securities and Exchange Board of India (Share based employee benefits) regulations, 2014.

(i) Fair value of options granted

The fair value at grant date of options granted during the year ended March 31, 2018 was Rs.NIL per option( 31 March 2017- Rs.NIL). The fair value at grant date is determined using the Black Scholes Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and risk free interest rate for the term of the option.

The expected price volatility is based on the historic volatility (based on the remaining life of the options), adjusted for any expected changes to future volatility due to publicly available information.

(b) Expenses arising from share-based payment transactions

Total expenses arising from share based payment transactions recognised in profit or loss as part of employee benefit expense were as follows:

NOTE 6:

Previous year figures have been regrouped and reclassified wherever considered necessary to conform to this year’s classifications.


Mar 31, 2017

NOTE 1: FINANCIAL RISK MANAGEMENT

The company''s activities expose it to market risk, liquidity risk and credit risk. In order to minimize any adverse effects on the financial performance of the company, derivative financial instruments, such as foreign exchange forward contracts are entered to hedge certain foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments. This note explains the sources of risk which the entity loss exposed to and how the entity manages the risk and the impact of them in the financial statements

The company''s risk management is carried out by the management. Company treasury identifies, evaluates and hedges financial risk in close cooperation with the company''s operating units. The management provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, credit risk, use of derivative financial instruments and non derivative financial instruments and investment of excess liquidity.

(A) Credit Risk Management

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.

i) Financial instruments and cash deposits

For banks and financial institutions, only high rated banks/ institutions are accepted. Other Financial assets (excluding Bank deposits) majorly constitute deposits given to State electricity departments for supply of power, which the company considers to have negligible credit exposure. Counterparty credit limits are reviewed by the Company''s Board of Directors on an annual basis, and may be updated throughout the year. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

ii) Expected credit loss for trade receivables under simplified approach

For trade receivables, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognized from initial recognition of the receivables

(B) Liquidity Risk:

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to dynamic nature of the underlying business, company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the company''s liquidity position(comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in the company in accordance with practice and limits set by the company. These limits vary by location to take into account the liquidity of the market in which the entity operates. In addition, the company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

C) Market risk - foreign exchange risk

The company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD, GBP and EUR. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign forecast transactions.

The company''s risk management policy is to hedge part of forecasted foreign currency sales for the subsequent months. As per the risk management policy, foreign exchange forward contracts are taken to hedge part of the forecasted sales by taking consultancy from external treasury management forms . The imports were hedged naturally by payment through EEFC account.

NOTE 2: CAPITAL MANAGEMENT (a) Risk management

The Company''s objective when managing capital are to:

1. Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

2. Maintain and optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debts

Consistent with others in the industry, the company monitors capital on the basis of the following gearing ratio: -Net debt (total borrowings net of cash and cash equivalents) divided by total equity (as shown in the balance sheet)

Loan covenants:

During the tenor of the facility with the bank , the following financial covenant should be complied with:

Current Ratio Minimum of 1.33 times

TOL/TNW Maximum of 1.75 times

Interest Coverage Ratio Minimum of 2.00 times

Debt Service Coverage Ratio Minimum of 1.50 times

Borrower to maintain the above financial indicators at the stipulated levels during the currency of the facility. In case of non-compliance of any covenant or other terms and conditions of sanction, penal interest @ 2% per annum above the applicable rate on the utilized facilities shall be charged. Such Interest shall be charged for the period of default/ noncompliance on the amount outstanding under the facility. Such interest shall also be payable/ compounded on monthly basis

NOTE 3: UTILIZATION OF FUND RAISED THROUGH QIP

During the year ended 31st March 2015 the company has raised ''20,000 lacs primarily for clinical development expenses, capital expenditure and general corporate purposes and any other purposes as may be permissible under applicable law.

NOTE 4: SEGMENT INFORMATION

(a) Description of segments and principal activities

The Chief Executive Officer has been identified as being the chief operating decision maker (CODM). The CODM examines the Company''s performance both from a product and a geographic perspective and has identified two reportable segments:

Business Segment

Segments have been identified and reported taking into account the nature of products, the differing risk and returns, the organization structure, and the internal financial reporting scheme. The company has identified the following segments as its reportable segments:

(a) Manufacturing (CRAMS)

(b) Services (DDDSS)

(c)Research and Development

I. Manufacturing (CRAMS) - Bulk Drugs & Intermediates under contract services products are developed and produced on an exclusive basis under contract Manufacturing services

II. Services (DDDSS) - Which consists of Collaborative Research Projects (CRP), Clinical Trials and Testing and Analysis services

Geographical Segment

The Company has identified the following geographical reportable segments:

(a) India-The company sells Bulk Drugs and Intermediates and Fine Chemicals.

(b) USA -The company sells Intermediates

(c) Europe-The company sells Bulk Drugs and Intermediates

(d) Others -The company sells Bulk Drugs and Intermediates

The Company''s subsidiaries as at March 31, 2017 are set out below. Unless otherwise stated, they have share capital consisting solely of equity shares that are held directly by the Company

NOTE 34: RELATED PARTY TRANSACTIONS

(a) Holding Company : M/s. Jasti Property and Equity Holdings Private Limited

(In its capacity as sole trustee of the Jasti Family Trust)

(b) Subsidairies: : M/s. Suven Inc.

(c) Key Management personnel(KMP) : Mr. Venkateswarlu Jasti (Chairman & CEO)

Mrs. Sudharani Jasti (Whole-time Director)

Mr. P Subba Rao (Chief Financial Officer)

Mr. K. Hanumatha Rao (Company Secretary)

(d) Relative of Key Management personnel : Ms. Kalyani Jasti (Daughter of Mr. Venkateswarlu Jasti)

Ms. Sirisha Jasti (Daughter of Mr. Venkateswarlu Jasti)

(e) Jointly controlled entity : Suven Trust

Based on the information available with the Company, there are no suppliers who are registered as micro and small enterprises under "The Micro, Small and Medium Enterprises Development Act, 2006" to whom the Company has paid interest or any interest payable on balances outstanding as at March 31, 2017 and March 31, 2016.

NOTE 5: SHARE BASED PAYMENTS (a) Employee option plan

Suven Employee Stock Option Scheme -2004 was approved by shareholders at the 2004 annual general meeting. Each option entitles the holder thereof to apply for and be allotted one equity share of the Company of ''1.00 each upon payment of the exercise price during the exercise period. The exercise period commences from the date of vesting of the Options and expires at the end of three years from the date of vesting in respect of Options granted under the Suven Employee Stock Option Scheme -2004

The vesting period for conversion of Options is as follows:

On completion of 24 months from the date of grant of the Options: 25% vests On completion of 36 months from the date of grant of the Options: 35% vests On completion of 48 months from the date of grant of the Options: 40% vests

The Options have been granted at the ''market price'' as defined from time to time under the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999.

Fair value of options granted

The fair value at grant date of options granted during the year ended March 31, 2017 was '' NIL per option (31 March 2016-'' NIL). The fair value at grant date is determined using the Black Scholes Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and risk free interest rate for the term of the option.

The expected price volatility is based on the historic volatility (based on the remaining life of the options), adjusted for any expected changes to future volatility due to publicly available information.

NOTE 6: FIRST-TIME ADOPTION OF IND AS Transition to Ind AS

These are the Company''s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in Note 2 have been applied in preparing the financial statements for the year ended March 31, 2017, the comparative information presented in these financial statements for the year ended March 31, 2016 and in the preparation of an opening Ind AS balance sheet at April 01, 2015 (company''s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation on how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

A.1. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS. A.1.1 Deemed Cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and investment property covered by Ind AS 40 Investment Properties. Accordingly, the company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

A.1.2 Investment of Subsidiaries Investment in subsidiaries are carried at Cost.

A.2 Mandatory exceptions A.2.1 Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with the estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at April 01, 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP: -Investment in Equity instruments carried at FVPL or FVOCI -Impairment of financial asset based on expected credit loss model.

A.2.2 Classification and measurement of financial asset

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investments in debt instruments) on the basis of the facts and circumstances that exist on the date of transition to Ind AS

C: NOTES TO FIRST-TIME ADOPTION: 1: Fair valuation of investments

Under the previous GAAP, investments in equity instruments and mutual funds were classified as long term investments or current investments based on the intended holding period and realizibility. Long term investments were carried at cost less provision for other than temperory decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments (other than equity instruments designated as at FVOCI) has been recognized in retained earnings as at the date of transition and subsequently in the profit and loss for the year ended March 31, 2016. This increased the retained earnings by Rs,1.67 Lakhs as at March 31, 2016 ( April 01, 2015-Rs,2.25 Lakhs).

2: Proposed dividend

Under the previous GAAP dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend and tax thereon of Rs, Nil as at March 31, 2016 ( April 01, 2015- Rs, 919.17 Lakhs) included under provisions have been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount.

3: Excise duty

Under the previous GAAP revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended March 31, 2016 by Rs,75.95 Lakhs. There is no impact on the total equity and profit.

4: Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. Acturial gains and losses and the return on plan assets , excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended March 31, 2016 decreased by Rs, 45.22 Lakhs. There is no impact on the total equity as at March 31 2016.

5: Retained Earnings

Retained earnings as at April 01, 2015 has been adjusted consequent to the above Ind AS transition adjustments.

6: Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in the profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit or loss as ''other comprehensive income'' includes remeasurements of defined benefit plans. The concept of ''other comprehensive income'' did not exist under previous GAAP

7: QIP Expenses

QIP expenses incurred towards issue of equity shares has been netted off from the Securities Premium account as these expenses are directly attributable to the issue of shares.

8: Government Grants

Under previous GAAP loan form Government is carried at transition value whereas under IndAS the same is fair valued and the difference between fair value of the loan and transaction value is considered as Government grant and is deferred over the term of loan.

9: Borrowings

Under previous GAAP borrowings are carried at gross value ( excluding transition cost) whereas under IndAS borrowings net of transition cost are carried in the books and transaction cost are considered in the computation of effective interest rate on that borrowings

Note 7: Previous year figures have been regrouped and reclassified wherever considered necessary to conform to this year''s classifications


Mar 31, 2016

Note 1: Depreciation on R Et D Equipment of? 723.25 Lakhs has been added to R Et D Expenses (Previous Year: ?1243.63 Lakhs)

Note 2: Pursuant to the enactment of Companies Act 2013, the Company has applied the estimated useful lives as specified in Schedule II, except in respect of certain assets as disclosed in Accounting Policy on Depreciation, Amortization and Depletion. Accordingly the unamortized carrying value is being depreciated / amortized over the revised/ remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted net of tax, in the opening balance of Profit and Loss Account amounting to ? 469.06 Lakhs

3. SEGMENT REPORTING

(A) Primary Segment:

Business Segment

Segments have been identified and reported taking into account the nature of products, the differing risk and returns, the organization structure, and the internal financial reporting scheme. The Company has identified the following segments as its reportable segments:

(a) Manufacturing (CRAMS)

(b) Services (DDDSS)

(c) Research and Development

I. Manufacturing (CRAMS) - Bulk Drugs & Intermediates under contract services products are developed and produced on an exclusive basis under contract Manufacturing services

II. Services (DDDSS) - Which consists of Collaborative Research Projects (CRP), Clinical Trials and Testing and Analysis services

(B) Secondary Segment:

Geographical Segment

The Company has identified the following geographical reportable segments:

(a) India-The Company sells Bulk Drugs and Intermediates and Fine Chemicals.

(b) USA -The Company sells Intermediates

(c) Europe-The Company sells Bulk Drugs and Intermediates

(d) Others -The Company sells Bulk Drugs and Intermediates

4. RELATED PARTY DISCLOSURES

List of and relationship with related parties with whom transactions have taken place during the year :

Holding Company M/s. Jasti Property and Equity Holdings Private Limited

Wholly owned subsidiary M/s. Suven Inc.

Key Managerial Personnel Mr. Venkateswarlu Jasti ( Chairman & CEO)

Mrs. Sudha Rani Jasti ( Whole-time Director)

Mr. P. Subba Rao (Chief Financial Officer)

Mr. Hanumatha Rao (Company Secretary)

Relative of Key Managerial Personnel Ms. Kalyani Jasti ( Daughter of Mr.Venkateswarlu Jasti)

Ms. Sirisha Jasti (Daughter of Mr. Venkateswarlu Jasti) Jointly controlled entity Suven Trust

5 Previous year figures have been regrouped and reclassified wherever considered necessary to conform to this year''s classifications.


Mar 31, 2015

Note 1: Corporate Information

Suven Life Sciences, in the business of design, manufacture and supply of Bulk Actives, Drug Intermediates & Fine Chemicals, Drug Discovery and Development Support Services (DDDSS) and Contract Research and Manufacturing Services (CRAMS) catering to the needs of global Life Science Industry, is committed to provide customers with products fulfilling customer''s needs and expectations.

1.2 Terms/ rights attached to equity shares

The company has only one class of equity shares having par value of Re. 1/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31 March 2015, the amount of per share dividend recognised as distributions to equity shareholders was Rs.0.60/- (Previous Year: Rs.2.50/-).

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Terms and Conditions of Options Granted

Each option entitles the holder thereof to apply for and be allotted one equity share of the Company of Re. 1/- each upon payment of the exercise price during the exercise period. The exercise period commences from the date of vesting of the Options and expires at the end of three years from the date of vesting in respect of Options granted under the Suven Employee Stock Option Scheme -2004

The vesting period for conversion of Options is as follows:

On completion of 24 months from the date of grant of the Options: 25% vests

On completion of 36 months from the date of grant of the Options: 35% vests

On completion of 48 months from the date of grant of the Options: 40% vests

The Options have been granted at the ''market price'' as defined from time to time under the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999.

Post-employment benefit plans a) Gratuity

Under the gratuity plan, every employee who has completed atleast five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The scheme is funded with an insurance company in the form of qualifying insurance policy.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the respective plan.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to change in the market scenario.

b) Other Employee Benefit Plan

The liability for Leave Encashment as at the year end is Rs.311.56 lakhs (Previous year: Rs.142.66 lakhs ) and the assumptions are as same as above.

NOTE 2: CONTINGENT LIABILITIES

For the year ended For the year ended 31st March 2015 31st March 2014 in lakhs in lakhs

Income tax appeal for Assessment Year 2010-11 - 16.98

Income tax appeal for Assessment Year 2011-12 7.64 7.64

Income tax appeal for Assessment Year 2012-13 20.94 -

Letter of Credit for imports 1,207.21 382.30

NOTE 3: COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account 609.07 1,360.11

Forward foreign exchange contracts 1,133.47 -

NOTE 4:

During the year unclaimed dividend pertaining to 2006-07 amounting to Rs.1.57 lakhs has been transferred to Investor Education and Protection Fund. There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund as of 31st March 2015 (Previous year: Nil)

NOTE 5:

Based on information available with the Company, no creditors have been identified as Micro and Small enterprises with in the meaning of "Micro, Small and Medium enterprises development (MSMED) Act ,2006".

NOTE 6:

Excise Duty amounting to Rs.7.33 lakhs on closing stock of finished goods has been provided during the year to comply with '' Guidance Note on Accounting treatment for excise duty issued by Institute of Chartered Accountants of India.

NOTE 7: SEGMENT REPORTING

(A) Primary Segment:

Business Segment

Segments have been identified and reported taking into account the nature of products, the differing risk and returns, the organisation structure and the internal financial reporting scheme.The company has identified the following segments as its reportable segments:

(a) Manufacturing (CRAMS)

(b) Services (DDDSS)

(c) Research and Development

I. Manufacturing (CRAMS) - Bulk Drugs & Intermediates under contract services products are developed and produced on an exclusive basis under contract Manufacturing services

II. Services (DDDSS) - Which consists of Collaborative Research Projects (CRP), Clinical Trials and Testing and Analysis services

(B) Secondary Segment:

Geographical Segment

The Company has identified the following geographical reportable segments:

(a) India-The company sells Bulk Drugs and Intermedites and Fine Chemicals.

(b) USA -The company sells Intermediates

(c) Europe-The company sells Bulk Drugs and Intermedites

(d) Others -The company sells Bulk Drugs and Intermedites

NOTE 8:

Previous year figures have been regrouped and reclassified wherever considered necessary to confirm to this year''s classifications.


Mar 31, 2013

NOTE 1: CORPORATE INFORMATION

Suven Life Sciences, in the business of design, manufacture and supply of Bulk Actives, Drug Intermediates & Fine Chemicals, Drug Discovery and Development Support Services (DDDSS) and CRAMS catering to the needs of global Life Science Industry, is committed to provide customers with products fulfilling customer''s needs and expectations. During the year ended 31st March, 2012 M/s. Suven Nishtaa Pharma Pvt. Ltd. was acquired by M/s. Suven Life Sciences Ltd. Subsequent to the acquisition of M/s. Suven Nishtaa Pharma Pvt. Ltd. were amalgamated with M/s. Suven Life Sciences Ltd., in accordance with the scheme of amalgamation approved by the High court is effective from 1st Jan, 2012. The amalgamation was effected in the accounts for the year ended 31st March, 2012.

2.1 Contingent Liabilities

(Rs. in lakhs)

Particulars For the year ended For the year ended 31st March 2013 31st March 2012

Un expired Letters of Credit 550.58 358.71

Income tax appeal for Asst.year 2010-11 86.98 0.00

2.2 Capital commitments not provided for on account of capital works net of advance Rs. 278.39 lakhs (Previous year Rs. 225.19 lakhs)

2.3 During the year Unclaimed Dividend pertaining to 2004-05 amounting to Rs. 1.40 Lakhs has been transferred to Investor Education and Protection Fund. There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund as of 31st March 2013 (Previous year Nil)

2.4 Based on information available with the company, no creditors have been identified as Micro and Small enterprises with in the meaning of "Micro, Small and Medium enterprises development (MSMED) Act, 2006".

2.5 National Savings Certificates to the extent of Rs. 3,000/- have been pledged with Government Authorities.

2.6 Employee Stock Option Scheme

The Company instituted the Employees Stock Option 2004 plan for all eligible employees. The Scheme covers all eligible employees of Suven Life Sciences Limited and its subsidiary.

2.7 Excise Duty amounting to Rs. 26.18 lakhs on Closing Stock of finished goods has been provided during the year to comply with ''Guidance Note on Accounting treatment for Excise duty'' issued by Institute of Chartered Accountants of India.

2.8 Hedging and Derivatives

Company has entered into Forward Exchange contract, being derivative instruments for hedging purpose and not intended for trading or speculation purposes, to establish the amount of currency in Indian Rupees required or available at the settlement date of certain payables and receivables. The following are the outstanding Forward Exchange Contracts as on 31st March 2013, entered into by the Company;

NOTE 3: SEGMENT REPORTING

A) PRIMARY SEGMENT :

Business Segment

Segments have been identified and reported taking into account the nature of products, the differing risk and returns,the organisation structure,and the internal financial reporting scheme.The company has identified the following segments as its reportable segments:

a) Manufacturing (CRAMS)

b) Services (DDDSS)

c) Research and Development

I. Manufacturing (CRAMS) - Bulk Drugs & Intermediates under contract services products are developed and produced on an exclusive basis under contract Manufacturing services

II. Services (DDDSS) - Which consists of Clinical Trials and Testing and Analysis services

B) SECONDARY SEGMENT : Geographical Segment

The Company has identified the following geographical reportable segments:

a) India-The company sells Bulk Drugs and Intermedites and Fine Chemicals.

b) U.S.A -The company sells Intermediates

c) Europe-The company sells Bulk Drugs and Intermedites

d) Others -The company sells Bulk Drugs and Intermedites

NOTE 10: RELATED PARTY DISCLOSURES

List of and relationship with related parties with whom transactions have taken place during the year : Key Managerial Personnel : Mr. Venkateswarlu Jasti (Chairman & CEO)

Mrs. Sudha Rani Jasti (Whole-time Director)

Relative of key managerial persons : Ms. Kalyani Jasti (Daughter of Mr.Venkateswarlu Jasti)

NOTE 11 :

M/s. Suven Nishtaa Pharma Pvt. Ltd., wholly owned subsidiary was merged with the company on 01.01.2012 . Accordingly previous year figures includes combined operations for three months and hence previous year figures are not comparable.

NOTE 12 :

Previous year figures have been regrouped and reclassified wherever considered necessary to conform to this year''s classifications.


Mar 31, 2012

1.1 Shares allotted as fully paid up by way of Bonus Shares for the Period of five years immediately preceding 31st March,2012;

The Company allotted 5,76,33,250 Equity Shares as fully paid-up Bonus Shares by utilization of Securities Premium in April 2007 except this no shares have been allotted by way of bonus during the preceding period of the five years.

1.2 Rights, preferences and restrictions attached to the Ordinary Shares

The Shares of the Company, having par value of Rs.1.00 per share, rank pari passu in all respects including voting rights and entitlement to dividend.

Terms and Conditions of Options Granted

Each Option entitles the holder thereof to apply for and be allotted one Equity Shares of the Company of Rs.1.00 each upon payment of the exercise price during the exercise period. The exercise period commences from the date of vesting of the Options and expires at the end of three years from the date of vesting in respect of Options granted under the Suven Employee Stock Option Scheme -2004

The vesting period for conversion of Options is as follows:

On completion of 24 months from the date of grant of the Options: 25% vests On completion of 36 months from the date of grant of the Options: 35% vests On completion of 48 months from the date of grant of the Options: 40% vests

The Options have been granted at the 'market price' as defined from time to time under the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999.

Capital Work in progress for the year 2011-12 Rs.2735.65 lakhs (Previous year Rs.335.62 lakhs)

Depreciation on R & D Equipment of Rs.254.74 lakhs has been added to R & D Expenses (Previous Year Rs.246.02 lakhs) Amalgamated Assets pertains to M/s. Suven Nishtaa Pharma Pvt. Ltd.

* depredation for the year includes depreciation on account of amalgamation for a period of 3 months.

In accordance with Accounting Standard 15 "Employees Benefits", the Company has classified various benefits provided to employees as under:

b) Other Employee Benefit Plan

The liability for Leave Encashment as at the year end is Rs.186.70 Lakhs (previous year Rs.142.06 Lakhs) and the assumptions are as same as above.

2.1 Contingent Liabilities

(Rs. in lakhs)

Particulars Year Ended Year Ended 2011-12 2010-11

Corporate Guarantee given on behalf of Suven Nishtaa Pharma Private Limited Nil 2375.00

Un expired Letters of Credit 358.71 478.31

Disputed Service Tax demands against which company is in appeal Nil 38.25

Disputed VAT demands against which company is in appeal Nil 7.53

2.2 Capital commitments not provided for on account of pending execution [net of advance Rs.225.19 Lakhs (Previous year Rs.2.80 Lakhs)]

2.3 During the year Unclaimed Dividend pertaining to 2003-04 amounting to Rs.0.91 Lakhs has been transferred to Investor Education and Protection Fund. There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund as of 31st March 2012 (Previous year Nil).

2.4 There are no delays in payments to Micro and Small enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. The information regarding Micro and Small enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

The Company has paid a minimum remuneration of Rs.4.00 Lakhs per month to Mr. Venkateswarlu Jasti, Chairman & CEO of the Company and Rs.3.05 Lakhs per month to Mrs. Sudha Rani Jasti, Whole-time Director of the Company for the financial year ending 31st March 2012.

The above remuneration excludes provision for gratuity, since the liability is determined for all the employees on an independent actuarial valuation basis. The specific amount of gratuity Directors cannot be ascertained separately.

2.5 National Savings Certificates to the extent of Rs.3,000/- have been pledged with Government Authorities.

2.6 Employee Stock Option Scheme

The Company instituted the Employees Stock Option 2004 plan for all eligible employees. The Scheme covers all eligible employees of Suven Life Sciences Limited and its subsidiary.

2.7 Excise Duty amounting to Rs.18.38 Lakhs on Closing Stock of finished Goods has been provided during the year to comply with ' Guidance Note on Accounting treatment for Excise duty' issued by Institute of Chartered Accountants of India.

2.8 Hedging and Derivatives

Company has entered into Forward Exchange contract, being derivative instruments for hedging purpose and not intended for trading or speculation purposes, to establish the amount of currency in Indian Rupees required or available at the settlement date of certain payables and receivables. The following are the outstanding Forward Exchange Contracts as on 31st March 2012, entered into by the company;

A) Primary Segment:

Business Segment

Segments have been identified and reported taking into account the nature of products, the differing risk and returns, the organization structure, and the internal financial reporting scheme. The company has identified the following segments as its reportable segments:

a) Manufacturing (CRAMS)

b) Services (DDDSS)

c) Research and Development

I. Manufacturing (CRAMS) - Bulk Drugs & Intermediates under contract services products are developed and produced on an exclusive basis under contract manufacturing services

II. Services (DDDSS) - Which consists of Collaborative Research Projects (CRP), Clinical Trials and Testing and Analysis services

B) Secondary Segment:

Geographical Segment

The Company has identified the following geographical reportable segments:

a) India-The Company sells Bulk Drugs and Intermediates and Fine Chemicals.

b) U.S.A -The Company sells Intermediates

c) Europe--The Company sells Bulk Drugs and Intermediates

d) Others-The Company sells Bulk Drugs and Intermediates

* Capital expenditure related to Amalgamation of Suven Nishtaa Pharma Pvt. ltd

A) Related Parties

1. Subsidiary : Suven Nishtaa Pharma Pvt. Ltd

2. Key Managerial Personnel : Mr. Venkateswarlu Jasti

Mrs. Sudha Rani Jasti

Note: Figures in bracket indicates previous year figures

NOTE 3: AMALGAMATION OF M/S. SUVEN NISHTAA PHARMA PVT. LTD.

In terms of the Scheme of Amalgamation & Arrangement (Scheme) approved by orders dated 10.07.2012 of Hon'ble High Court of Andhra Pradesh, M/s. Suven Nishtaa Pharma Private Limited (Nishtaa) a wholly owned subsidiary whose core business is to carry on the business of Pharmaceutical Formulations contract services has been amalgamated with the Company with effect from 1st January, 2012.

The amalgamation has been accounted for under the "Pooling of Interest Method" as prescribed by Accounting Standard (AS-14) "Accounting for Amalgamation" issued by the Institute of Chartered Accountants of India.

In accordance with the said scheme all the assets, debts, liabilities, duties and obligations of "Nishtaa" have been vested in the Company with effect from 1st January, 2012 and have been recorded at their respective book values under pooling of Interest method of accounting for amalgamation. There were no differences in the accounting policies of "Nishtaa" and the Company.

NOTE 4:

On account of the Amalgamation of M/s. Suven Nishtaa Pharma Private Limited with the company w.e.f 01.01.2012, previous year figures are not comparable with the current year figures.

NOTE 5:

Previous year figures have been regrouped and reclassified wherever considered necessary to conform to this year's classification.


Mar 31, 2011

1. Contingent Liabilities

Rs. in Lakhs

Particulars Year ended Year ended

2010-11 2009-10

Guarantees given by Banks 53.18 87.66

Corporate Guarantee given on behalf of Suven Nishtaa Pharma Private Limited 2375.00 2375.00

Un expired Letters of Credit 478.31 481.17

Disputed Service Tax demands against which company is in appeal 38.25 Nil

Disputed VAT demands against which company is in appeal 7.53 Nil

2. Capital commitments not provided for on account of pending execution [net of advance Rs. 2.80 Lakhs (Previous year Rs. 3.53 Lakhs)]

3. During the year Unclaimed Dividend pertaining to 2002-03 amounting to Rs. 1.04 Lakhs has been transferred to Investor Education and Protection Fund. There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund as of 31st March 2011 (Previous year Nil).

4. There are no delays in payments to Micro and Small enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. The information regarding Micro and Small enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

The Company has paid a minimum remuneration of Rs.4.00 Lakhs per month to Mr. Venkateswarlu Jasti, Chairman & CEO of the Company and Rs.3.05 Lakhs per month to Mrs. Sudha Rani Jasti, Wholetime Director of the Company for the financial year ending 31st March 2011.

The Company is seeking approval of the members by way of special resolution(s) in the Annual General Meeting for payment of remuneration as stipulated under the provisions of Section II of Part II of the Schedule XIII to the Companies Act, 1956.

The above remuneration excludes provision for gratuity, since the liability is determined for all the employees on an independent actuarial valuation basis. The specific amount of gratuity Directors cannot be ascertained separately.

5. Material consumption includes material destroyed in fire accident in the godown of unit - II.

6. National Savings Certificates to the extent of Rs. 3,000/- have been pledged with Government Authorities.

7. Employee Stock Option Scheme

The Company instituted the Employees Stock Option 2004 plan for all eligible employees. The Scheme covers all eligible employees of Suven Life Sciences Limited and its subsidiary.

8. Excise Duty amounting to Rs. 10.86 Lakhs on Closing Stock of finished Goods has been provided during the year to comply with' Guidance Note on Accounting treatment for Excise duty' issued by Institute of Chartered Accountants of India.

9. Hedging and Derivatives

Company has entered into Forward Exchange contract, being derivative instruments for hedging purpose and not intended for trading or speculation purposes , to establish the amount of currency in Indian Rupees required or available at the settlement date of certain payables and receivables . The following are the outstanding Forward Exchange Contracts as on 31st March 2011, entered into by the company;

10. Employee Benefits

In accordance with Accounting Standard 15 "Employees Benefits", the Company has classified various benefits provided to employees as under:

b. Other Employee Benefit Plan

The liability for Leave Encashment as at the year end is Rs. 142.06 Lakhs (previous year Rs. 99.08 Lakhs) and the assumptions are as same as above.

11. Segment Reporting (2010-11)

Business Segment

Segments have been identified and reported taking into account the nature of products, the differing risk and returns, the organisation structure, and the internal financial reporting scheme

The company has identified the following segments as its reportable segments:

a) Manufacturing (CRAMS)

b) Services (DDDSS)

c) Research and Development

I. Manufacturing (CRAMS) - Intermediates under contract services products are developed and produced on an exclusive basis under contract manufacturing services

II. Services (DDDSS) - Which consists of Collaborative Research Projects (CRP)? Clinical Trials and Testing and Analysis services

Geographical Segment

The Company has identified the following geographical reportable segments:

a) India-The Company sells Bulk Drugs and Intermediates and Fine Chemicals.

b) U.S.A -The Company sells Intermediates

c) Europe--The Company sells Bulk Drugs and Intermediates

d) Asia-The Company sells Bulk Drugs and Intermediates

12. Related Party Disclosures

List of and relationship with related parties with whom transactions have taken place during the year:

Key Managerial Persons : Mr. Venkateswarlu Jasti

Mrs. Sudha Rani Jasti

Enterprises in which the company has

substantial interest : M/s. Suven Nishtaa Pharma Pvt Ltd

13. Previous year figures have been regrouped and reclassified wherever considered necessary to conform to this year's classification. Signatures of Schedules A to U


Mar 31, 2010

1. Contingent Liabilities

Rupees in Lakhs

Particulars Year ended Year ended 2009-10 2008-09

Guarantees given by Banks 87.66 91.61

Corporate Guarantee given on behalf of Suven Nishtaa Pharma Private Limited 2375.00 2375.00

Un expired Letters of Credit 481.17 329.96

2. Capital commitments not provided for on account of pending execution (net of advance) Rs. 3.53 Lakhs (Previous year Rs.14.31 Lakhs)

3. During the year Unclaimed Dividend pertaining to 2001-02 amounting to Rs. 0.84 Lakhs has been transferred to Investor Education and Protection Fund. There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund as of 31st March 2010 (Previous year Nil).

4. There are no delays in payments to Micro and Small enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. The information regarding Micro and Small enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

5. Events Occurring After Balance Sheet Date

There has been fire accident in the Unit-II of the Company on 5th April2010 and the stock of worth Rs.95 Lacs was lying in the godown was destroyed. However , the said stock was fully insured and the company has made claim for the same.

6. National Savings Certificates to the extent of Rs. 3,000/- have been pledged with Government Authorities.

7. Employee Stock Option Scheme

The Company instituted the Employees Stock Option 2004 plan for all eligible employees. The Scheme covers all eligible employees of Suven Life Sciences Limited and its subsidiary.

8. Excise Duty amounting to Rs. 20.19 Lakhs on Closing Stock of finished Goods has been provided during the year to comply with Guidance Note on Accounting treatment for Excise duty issued by Institute of Chartered Accountants of India.

9. Employee Benefits

In accordance with Accounting Standard 15 "Employees Benefits", the Company has classified various benefits provided to employees as under:

10. Segment Reporting (2009-10)

Business Segment

Segments have been identified and reported taking into account the nature of products, the differing risk and returns, the organisation structure, and the internal financial reporting scheme

The company has identified the following segments as its reportable segments:

a) Manufacturing (CRAMS)

b) Services (DDDSS)

c) Research and Development

I. Manufacturing (CRAMS) - Intermediates under contract services products are developed and produced on an exclusive basis under contract Manufacturing services

II. Services (DDDSS) - Which consists of Collaborative Research Projects (CRP), Clinical Trials and Testing and Analysis services

Geographical Segment

The Company has identified the following geographical reportable segments:

a) India-The company sells Bulk Drugs and Intermedites and Fine Chemicals.

b) U.S.A -The company sells Intermediates

c) Europe--The company sells Bulk Drugs and Intermedites

11. Previous year figures have been regrouped wherever considered necessary to conform to this years classification.

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