Mar 31, 2018
(C) Rights, preferences and restrictions attached to equity shares :
The Company has only one class of shares referred to as equity shares having a par value of Rs.10/- each. Each holder of one equity share is entitled to one vote per share.
In the event of the liquidation of the Company, the holders of shares shall be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However no such preferential amounts exists currently.
The amount distributed will be in proportion to the number of equity shares held by the shareholders.
Notes:
(i) Unsecured loans from others includes inter corporates.
(ii) Term loan from banks included loan from Union Bank of India settled during the year for a consideration of Rs. 2,52,18,322 including interest of Rs. 67,97,583 which have been accordingly treated in the books of account.
(iii) Term loan from other parties includes Department of Bio Technology (DBT), Ministry of Science and Technology are secured by the whole of movable and immovable properties acquired from the loan sanctioned by âthe DBT under SBIRI scheme.
Notes:
(i) Current Provisions include:
- Rs. 22,26,171 of Statutory provisions payable to Government authorities.
- Rs. 74,03,730 on account of IT Demands raised by IT Dept, with respect to AY 2009-10 & AY 2013-14.
- Rs. 5,66,42,408 of Income tax provisions of earlier years.
(ii) Non-Current Provisions include 100% provision made against payment made to M/s. Symetric Sciences Inc utilized out of GDR proceeds which is also disclosed as Advances to others under Loans in Note No. 5.
Notes:
Under Ind AS, certain financial assets and financial liabilities are measured at mortised cost which involves the application of effective interest method. The effective interest rate is the rate that discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of the financial asset or financial liability. The interest unwinding is charged through profit and loss in subsequent period.
The company has a SIBRI loan of 10 years with 15% interest rate
37. Financial Instruments
Fair value hierarchy
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
A The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of 31 March 2018 :
Notes to the reconciliations
A As per IND AS 38 "Intangible Assets", Intangible Assets under construction should be shown under separate head "Intangible Assets under development".
B. As per IND AS 109 "Financial Instruments" Financials Assets & Financial liabilities arising out of similar events shall show with a net effect.
C. As per IND AS 109 "Financial Instruments" An instrument satisfying the definition of ither financial asset or financials liability, shall be disclosed separately under the respective head
D As per IND AS 109 "Financial Instruments" Government grants shall be shown at amortized cost.
1. Critical estimates and judgments
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgment in applying the Company''s accounting policies.
The areas involving critical estimates or judgments are :
- Estimated useful life of intangible asset.
Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the company and that are believed to be reasonable under the circumstances. 39. In the opinion of the Board of Directors of the company the value on realization of Current Assets in the ordinary course of business will not be less than the amount at which they have been stated in the Balance Sheet as on 31st March, 2018.
2. Balances of Creditors, Debtors & Advances as on 31st March 2018 are subject to confirmation from the parties concerned.
3. Previous year figures have been regrouped and rearranged wherever necessary.
4. The figures have been rounded off to the nearest Rupee.
Mar 31, 2015
1. Previous year figures have been regrouped and reclassified,
wherever necessary according to the groupings and classifications are
made for the current financial year.
2. Contingent Liabilities are not provided for in respect of
(Rs. In Lacs)
2014 - 15 2013 - 14
(i) Customs Duty Demands disputed by the Company 59.37 59.37
(ii) Claims against the company not acknowledged
as debts 40.00 40.00
During the year one of the Employee of the Company sustained severe
burns in a fire incident in the Company. The Company helped him
financially for hospitalization and treatment after which he was
discharged from the hospital. However, after the discharge, for some
unknown reasons he contracted infection and died while being treated
for that. His family approached Labour Court claiming an unspecified
amount for his death from the Company. No amount is provided for in
books of account for the same as the Company is not sure of the
liability.
3. The Department of Biotechnology has sanctioned a loan amount of
Rs.4.09 crores under Small Business Innovative Research Initiative
(SBIRI) scheme for the novel technology upgradation of oralstat
research, for which a charge against movable and Immovable assets
acquired from utilization of the said loan amount has been created.
SBIRI has demanded an interest of Rs 35,47,901/- for which a provision
has been made though the management is yet to ascertain the actual
liability of the company in this regard .
4. The company has made 100% provision for the investment made in the
Transgene Biotek HK Limited (Subsidiary) for Rs. 92,20,09,728/-in the
wake of the Auditors report of the Wholly Owned Subsidiary. Further,
100% provision is made against payment made to M/s. Symetric Sciences
Inc utilized out of GDR proceeds. This is without prejudice to the
company's claim in this regard.
5. The following are the Related Party Disclosures as per the AS-18 as
notified under the Companies Act 2013.
6. In the opinion of the Board, current assets, loans and advances are
realizable at a value, which is at least equal to the amount, at which
these are stated, in the ordinary course of business. Balances of
sundry debtors, sundry creditors, loans and advances, and other parties
are subject to independent confirmation from the respective parties.
7. Additional information pursuant to Part II of Schedule VI to the
Companies Act, 1956 to the extent relevant.
8. The Company is engaged in Diagnostic Services and trading of Bulk
Drugs which as per accounting standard (AS) 17 is considered as
business segments.
9. Periodically the Company evaluates all customers due to the
company for collectables. The need for provisions is assessed based on
the various factors including collectables of specific dues, risk
perceptions of the industry in which the customers operate, and general
economic factors, which could affect the customer's ability to settle.
10. Notes forming integral part of the Balance Sheet and Profit & Loss
Account and have been duly authenticated.
Mar 31, 2014
1. Previous year figures have been regrouped and reclassified according
to the groupings and Classifications made for the current financial
year.
2. Contingent Liabilities are not provided for in respect of
(Rs. In Lacs)
2013-14 2012-13
(i) Customs Duty Demands disputed by the Company 64.42 64.42
(ii) Claims lodged against the Company 40.00 40.00
3. Contracts remaining to be executed on Capital Account are Rs.
8705.73 Lakhs (Previous year Rs.8705.73 Lakhs).
4. The Department of Biotechnology has sanctioned a loan amount of
Rs.4.09 crores under Small Business Innovative Research Initiative
(SBIRI) scheme for the novel technology up gradation of orilstat
research, for which a charge against movable and Immovable assets
acquired from utilization of the said loan amount has been created.
5. During the year the company has made 100% provision for the
investment made in the Transgene Biotek HK Limited (Subsidiary) for Rs.
92,20,09,728/- in the wake of the Auditors report of the Wholly Owned
Subsidiary. Further, 100% provision is made against to M/s. Symetric
Sciences Inc utilized out of GDR proceeds.The corresponding Forex
Reserve created against this advance as per AS 11 was also suitably
adjusted.
6. The following are the Related Party Disclosures as per the AS-18 as
notified under the Companies Act 1956.
A) KEY MANAGEMENT PERSONNEL :
Dr. K. Koteswara Rao : Managing Director
Transgene Biotek HK Limited : Wholly owned subsidiary
7. In the opinion of the Board, current assets, loans and advances are
realizable at a value, which is at least equal to the amount, at which
these are stated, in the ordinary course of business. Balances of
sundry debtors, sundry creditors, loans and advances, and other parties
are subject to independent confirmation from the respective parties.
8. Additional information pursuant to Part II of Schedule VI to the
Companies Act, 1956 to the extent relevant.
Particulars of Capacities and Production
9. Periodically the Company evaluates all customers due to the company
for collectables. The need for provisions is assessed based on the
various factors including collectables of specific dues, risk
perceptions of the industry in which the customers operate, and general
economic factors, which could affect the customer''s ability to settle.
10. Notes 2 to 25 form integral part of the Balance Sheet and Profit &
Loss Account and have been duly authenticated.
Mar 31, 2013
A. Basis of preparation of financial statements:
The accompanying financial statements are prepared in accordance with
Indian Generally Accepted Accounting Principles (GAAP) under the
historical cost convention on the accruals basis. GAAP comprises
mandatory accounting standards issued by the Institute of Chartered
Accountants of India (ICAI), the provisions of the Companies Act, 1956
and guidelines issued by the Securities and Exchange Board of India.
Accounting policies have been consistently applied and management
evaluates all recently issued or revised accounting standards on an
ongoing basis.
1 Previous year figures have been regrouped and reclassified according
to the groupings and Classifications made for the current financial
year.
2. Contingent Liabilities are not provided for in respect of
(Rs.. In Lacs)
2012 Â 13 2011-12
(i) Customs Duty Demands
disputed by the Company 64.42 64.42
(ii) Claims lodged against
the Company 40.00 40.00
3. Contracts remaining to be executed on Capital Account are Rs.
8705.73 Lakhs (Previous year Rs.8705.73 Lakhs).
4. The Department of Biotechnology has sanctioned a loan amount of
Rs.4.09 crores under Small Business Innovative Research Initiative
(SBIRI) scheme for the novel technology up gradation of orilstat
research, for which a charge against movable and Immovable assets
acquired from utilization of the said loan amount has been created.
5. The following are the Related Party Disclosures as per the AS-18 as
notified under the Companies Act 1956. A) KEY MANAGEMENT PERSONNEL:
Dr. K. Koteswara Rao : Managing Director
Transgene Biotek HK Limited : Wholly owned subsidiary
6. In the opinion of the Board, current assets, loans and advances are
realizable at a value, which is at least equal to the amount, at which
these are stated, in the ordinary course of business. Balances of
sundry debtors, sundry creditors, loans and advances, and other parties
are subject to independent confirmation from the respective parties.
7. Additional information pursuant to Part II of Schedule VI to the
Companies Act, 1956 to the extent relevant. Particulars of Capacities
and Production
8. The Company had in the earlier years, recognized Forex Gain on
Capital Advances under other Income and was passed through Profit &
Loss Account. During the year under review, the management had,
considered the same as Exceptional item and this being a non-monetary
item, categorized under "Exchange Translation Reserve" under the head
"Reserves & Surplus". The impact due to change in the Accounting Policy
is Rs. 1308.33 Lakhs.
9. Periodically the Company evaluates all customers due to the
company for collectables. The need for provisions is assessed based on
the various factors including collectables of specific dues, risk
perceptions of the industry in which the customers operate, and general
economic factors, which could affect the customer''s ability to settle.
10. Notes 1 to 26 form integral part of the Balance Sheet and Profit &
Loss Account and have been duly authenticated.
Mar 31, 2012
The Company has only one class of shares referred to as equity shares
having a par value Rs.10. Eac holder of one equity share is entitled to
one vote per share.
In the event of liquidation of the Company, the holders of shares shall
be entitled to receive any of tt remaining assets of the Company, after
distribution of all preferential amounts. However no such preferenti
amounts exist currently. The amount distributed will be in proportion
to the number of equity shares he by the shareholders. '
** Term loans are secured by first pari passu charge on all the present
and future fixed assets both movable and immovable and immovable
property of the Company.
** Term loan from Department of Bio Technology (DBT), Ministry of
Science and Technology are secured by the whole of movable and
immovable properties acquired from the loan sanctioned by the DBT under
SBIRI scheme.
1. Previous year figures have been regrouped and reclassified
according to the groupings and classifications made for the current
financial year.
2. Contingent Liabilities are not provided for in respect of
Rs. In Lakhs
2011 - 12 2010 - 11
Customs Duty Demands disputed by the Company 64.42 64.42
Claims lodged against the Company 40.00 40.00
The Company had deposited an amount of Rs. 40,00,000 with the Registrar
of AP High Court, as per the directions of Hon'ble High Court of Andhra
Pradesh in the case filed against the Company " and the same is covered
in Note No. XI
3. Contracts remaining to be executed on Capital Account are Rs.8,705.75
Lakhs (Previous year Rs. 6,326.79 Lakhs).
4. GDR's Issue:
During the year the Company has issued 25,00,000 Global Depository
Receipts (GDR) at a price of US$.7.0 per GDR on 3rd October, 2011,
where one GDR represents 10 equity shares of Rs.10 each of the Company.
The Company has received in aggregate US$ 1,75,00,000 equivalent to
Rs.86.50 Crores which has been appropriated towards equity share capital
of Rs.25,00,00,000 and Rs.61,50,00,000 as Securities premium. The expenses
incurred in connection with the GDR issue of Rs.2,74,21,69ç/- has been
appropriated against the Premium received.
Usage of GDR proceeds:
The Company intends to use net proceeds from the issue of GDR's towards
expansion of the present business activities of the Company; augmenting
long term working capital and any other use as may be permitted under
applicable law or regulations from time to time.
Out of net proceeds, an amount of US$ 1,69,52,000 equivalent
toRs.86,72,04,98ç/- has been paid as advances for acquiring new drug
technologies and getting clinical technology services from
technology/strategic partners abroad, through the Wholly owned
subsidiary Company, M/s Transgene Biotech HK Limited, Hong Kong.
The Company intends to use the GDR issue proceeds in the following
manner.
i. Research and Development of various products of the Company Viz,
APIs, Vaccines,
ii. To carry out the Pre-Clinical / Clinical Trials for several novel
Biotech Products in the pipe line,
iii. Setting up of new manufacturing facilities, expanding and
modernizing existing manufacturing facilities In India,
iv. For establishMig manufacturing facilities outside India for the
production of APIs and Bio Ted Proaucts...etc.
v. Process innovation and Process optimization
vi. Acquisition of Companies and Technologies domestic and overseas
vii. Working Capital Requirements of the Company.
As on the date of these notes, the filing of the relevant
documents/forms to the Reserve Bank of India is yetto be done and the
Company is in the process of doing the same.
5. The Department of Biotechnology has sanctioned a loan amount of Rs.
4.09 Crores under Small Business Innovative Research Initiative (SBIRI)
scheme for the novel technology up gradation of orilstat research, for
which a charge against movable and Immovable assets acquired from
utilization of the said loan amount has been created for the financial
year 2010-11.
6. The following are the Related Party Disclosures as per the AS-18 as
notified under the Companies Act 1956.
7. In the opinion of the Board, current assets, loans and advances are
realizable at a value, which is at least equal to the amount, at which
these are stated, in the ordinary course of business. Balances of
sundry debtors, sundry creditors, loans and advances, and other parties
are subject to independent confirmation from the respective parties.
8. Additional information pursuant to the Companies Act, 1956 to the
extent relevant. Particulars of Capacities and Production
9. The Company is engaged in Diagnostic Services and trading of Bulk
Drugs which as per accounting standard (AS) 17 is considered the
business segments.
10. Periodically the Company evaluates all customers due to the
company for collectables. iheneeaTor provisions is assessed based on
the various factors including collectables of specific dues, risk
perceptions of the industry in which the customers operate, and general
economic factors, which could affect the customer's ability to settle.
11. Schedules I to XXVI form integral part of the Balance Sheet and
Profit and Loss Account and have been duly authenticated.
Mar 31, 2011
1. Previous year figures have been regrouped and reclassified
according to the groupings and Classifications made for tire current
financier year.
2. Contingent Liabilities are not provided for in respect of
(Rs. In lacs)
2010-11 2009-10
(i) Customs Duty Demands disputed by
the Company 64.42 64.42
3. Contracts remaining to be executed on Capital Account are Rs.63,
26, 79,912. (Previous year Rs. NIL).
4. GDR's Issue:
During the year the Company has issued 25 Lakhs Global Depository
Receipts (GDR) at a price of US$.9.2 per GDR on 22nd February, 2011,
where one GDR represents 10 equity shares of Rs.10 each of the Company.
The Company has received in aggregate US$2.3 Crores equivalent to
Rs.103.96 Crores which has been appropriated towards equity share
capital of Rs.25 Crores and Rs.78.96 Crores as Securities premium. The
expenses incurred in connection with the GDR issue of Rs.4,53,85,803/-
has been appropriated against the Premium received.
Usage of GDR proceeds:
The Company intends to use net proceeds from the issue of GDR's towards
expansion of the present business activities of the Company; augmenting
long term working capital and any other use as may be permitted under
applicable law or regulations from time to time.
Out of net proceeds, an amount of US$.1,40,00,129.58 equivalent to
Rs.62,51,05,786/- has been utilized as advances for acquiring new drug
technologies and getting clinical technology services from
technologystrategic partners abroad and Rs.2,71,73,660/- for working
capital requirement purposes in India and the remaining balance of
US$.74,79,805.58 equivalent to Rs.33,39,73,718 is with non-scheduled
bank in abroad for future requirements.
The Company intends to use the GDR issue proceeds in the following
manner...
a. Research and Development of various products of the Company viz,
APIs, Vaccines,
b. To carry out the Pre-Clinical / Clinical Trials for several novel
Biotech Products in the pipe line,
c. Setting up of new manufacturing facilities, expanding and
modernizing existing manufacturing facilities in India,
d. For establishing manufacturing facilities outside India for the
production of APIs and Bio-Tech Products, ...etc
e. Process innovation and Process optimization
f. Acquisition of Companies and Technologies domestic and overseas
g. Working Capital Requirements of the Company.
5. The Department of Biotechnology has sanctioned a loan amount of
Rs.4.09 crores under Small Business Innovative Research Initiative
(SBIRI) scheme for the novel technology up gradation of orilstat
research, for which a charge against movable and Immovable assets
acquired from utilization of the said loan amount has been created.
6. The following are the Related Party Disclosures as per the AS-18 as
notified under the Companies Act 1956.
A) KEY MANAGEMENT PERSONNEL:
Dr. K. Koteswara Rao : Managing Director
Mr.P.Narayana Murthy : Director
7. In the opinion of the Board, current assets, loans and advances are
realizable at a value, which is at least equal to the amount, at which
these are stated, in the ordinary course of business. Balances of
sundry debtors, sundry creditors, loans and advances, and other parties
are subject to independent confirmation from the respective parties.
8. Additional information pursuant to Part II of Schedule VI to the
Companies Act, 1956 to the extent relevant.
9. Periodically the company evaluates all customers due to the
company for collectables. The need for provisions is assessed based on
the various factors including collectables of specific dues, risk
perceptions of the industry in which the customers operate, and general
economic factors, which could effect the customer's ability to settle.
10. Schedules I to XVIII form integral part of the Balance Sheet and
Profit & Loss Account and have been duly authenticated.
Mar 31, 2010
1. Contingent Liabilities are not provided for in respect of
(Rs. In Lacs)
2009-10 2008-09
(i) Customs Duty Demand disputed 64.42 5.05
by the Company
2. Contracts remaining to be executed on Capital Account for the
current year are nil. (Previous year NIL).
3. The following are the requirements under the Related Party
Disclosures as per the AS-18 issued by the Institute of Chartered
Accountants of India.
4. Statement of Particulars of employees pursuant to the provisions of
the Section 217 (2A) of the Companies act, 1956, read with Companies
(Particulars of Employees) Rules, 1975 as amended up to date are not
provided as there are no employees who are in receipt of the amounts
prescribed under the said section Nil. Previous Year - Nil.
5. In the opinion of the Board, current assets, loans and advances are
realizable at a value, which is at least equal to the amount, at which
these are stated, in the ordinary course of business. Independent
confirmation of balances of sundry debtors, sundry creditors, loans and
advances, and other parties are in progress on date of this report.
6. Additional information pursuant to Part II of Schedule VI to the
Companies Act, 1956 to the extent relevant.
7. Deferred Tax Liability or Asset has not been provided, as per AS -
22, as in the Financial Statements the Company has huge accumulated
losses and there is no probability of tax liabilities arising during
the year and in the coming years.
8. The company is engaged in providing Technology Outsourcing
Services, Diagnostic Services and producing Tissue culture Plants which
as per accounting standard (AS) 1 7 is considered the business
segments.
9. Periodically the company evaluates all customers due to the
company for collectables. The need for provisions is assessed based on
the various factors including collectables of specific dues, risk
perceptions of the industry in which the customers operates, and
general economic factors, which could effect the customers ability to
settle.
10. Schedules I to XV form integral part of the Balance Sheet and
Profit & Loss Account and have been duly authenticated.