Bajaj Healthcare Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

2.12 Provisions

Provisions are recognised when the Company has a present
obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. If the
effect of the time value of money is material, provisions are
discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting
is used, the increase in the provision due to the passage of
time is recognised as a finance cost.

2.13 Contingent Liabilities & Commitments

Disclosure of contingent liability is made when there is a
possible obligation arising from past events, the existence
of which will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not wholly
within the control of the Company or a present obligation that
arises from past events where it is either not probable that
an outflow of resources embodying economic benefits will
be required to settle or a reliable estimate of amount cannot
be made.

Commitments include the amount of purchase order (net of
advances) issued to parties for completion of assets.

2.14 Employee Benefits Expense
Short-Term Employee Benefits

The undiscounted amount of short-term employee benefits
expected to be paid in exchange for the services rendered by
employees are recognised as an expense during the period
when the employees render the services.

Post-Employment Benefits

Defined Contribution Plans

The Company recognises contribution payable to the
provident fund scheme as an expense, when an employee
renders the related service. If the contribution payable to the
scheme for service received before the balance sheet date
exceeds the contribution already paid, the deficit payable
to the scheme is recognised as a liability. If the contribution
already paid exceeds the contribution due for services
received before the balance sheet date, then excess is

recognised as an asset to the extent that the pre-payment will
lead to a reduction in future payment or a cash refund.

Defined Benefit Plans

The Company pays gratuity to the employees who have
completed five years of service with the Company at the
time of resignation/ superannuation. The gratuity is paid
@15 days basic salary for every completed year of service as
per the Payment of Gratuity Act, 1972. The gratuity liability
amount is contributed to the approved gratuity fund formed
exclusively for gratuity payment to the employees. The
gratuity fund has been approved by respective Income Tax
authorities. The liability in respect of gratuity and other post¬
employment benefits is calculated using the Projected Unit
Credit Method and spread over the period during which the
benefit is expected to be derived from employees'' services.
Remeasurement gains and losses arising from adjustments
and changes in actuarial assumptions are recognised in the
period in which they occur in Other Comprehensive Income.

Compensated absences

Compensated absences which are expected to occur within
twelve months after the end of the period in which the
employee renders the related services are recognised as
undiscounted liability at the balance sheet date. Compensated
absences which are not expected to occur within twelve
months after the end of the period in which the employee
renders the related services are recognised as an actuarially
determined liability at the present value of the defined benefit
obligation at the balance sheet date.

2.15 Tax Expenses

i. The tax expenses for the period comprises of current tax
and deferred income tax. Tax is recognised in Statement
of Profit and Loss, except to the extent that it relates to
items recognised in the Other Comprehensive Income.
In which case, the tax is also recognised in Other
Comprehensive Income.

Current Tax

ii. Current tax assets and liabilities are measured at the
amount expected to be recovered from or paid to the
Income Tax authorities, based on tax rates and laws that
are enacted at the Balance sheet date.

Deferred Tax

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the Financial Statements and the corresponding tax
bases used in the computation of taxable profit.

Deferred tax assets are recognised to the extent it is
probable that taxable profit will be available against
which the deductible temporary differences, and the
carry forward of unused tax losses can be utilised.
Deferred tax liabilities and assets are measured at the

tax rates that are expected to apply in the period in
which the liability is settled or the asset realised, based
on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting
period. The carrying amount of Deferred tax liabilities
and assets are reviewed at the end of each reporting
period.

2.16 Foreign Currencies Transactions and Translation

Transactions in foreign currencies are recorded at the exchange
rate prevailing on the date of transaction. Monetary assets and
liabilities denominated in foreign currencies are translated
at the functional currency closing rates of exchange at the
reporting date. Exchange differences arising on settlement or
translation of monetary items are recognised in Statement of
Profit and Loss except to the extent of exchange differences
which are regarded as an adjustment to interest costs on
foreign currency borrowings that are directly attributable to
the acquisition or construction of qualifying assets which are
capitalised as cost of assets.

Non-monetary items that are measured in terms of historical
cost in a foreign currency are recorded using the exchange rates
at the date of the transaction. Non-monetary items measured
at fair value in a foreign currency are translated using the
exchange rates at the date when the fair value was measured.
The gain or loss arising on translation of non-monetary items
measured at fair value is treated in line with the recognition
of the gain or loss on the change in fair value of the item (i.e.
translation differences on items whose fair value gain or loss
is recognised in Other Comprehensive Income or Statement
of Profit and Loss are also recognised in Other Comprehensive
Income or Statement of Profit and Loss, respectively).

In case of an asset, expense or income where a non-monetary
advance is paid/received, the date of transaction is the date
on which the advance was initially recognised. If there were
multiple payments or receipts in advance, multiple dates of
transactions are determined for each payment or receipt of
advance consideration.

Contract Balances

Trade Receivables - A Trade receivable represents the
Company''s right to an amount of consideration that is
unconditional.

Contract Liabilities - A contract liability is the obligation
to transfer goods or services to a customer for which the
Company has received consideration (or an amount of
consideration is due) from the customer. If a customer pays
consideration before the Company transfers goods or services
to the customer, a contract liability is recognised when the
payment is made. Contract liabilities are recognised as
revenue when the Company performs under the contract.

I nterest Income - Interest Income from a Financial Assets is
recognised using effective interest rate method.

Dividend Income - Dividend Income is recognised when the
Company''s right to receive the amount has been established.

Any Other Income - Income other than Dividend and Interest
as described above and any other income covered under
other IND-AS is recognised only when it is reasonable certain
that amount will be collected or when amount is actually
received by the Company.

2.17 Financial Instruments

i. Financial Assets

a. Initial Recognition and Measurement

All Financial Assets are initially recognised at fair value.
Transaction costs that are directly attributable to the
acquisition or issue of Financial Assets, which are not at Fair
Value through Profit or Loss, are adjusted to the fair value on
initial recognition. Purchase and sale of Financial Assets are
recognised using trade date accounting.

b. Subsequent Measurement

- Financial Assets measured at Amortised Cost (AC)

A Financial Asset is measured at Amortised Cost if it is
held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and
the contractual terms of the Financial Asset give rise
to cash flows on specified dates that represent solely
payments of principal and interest on the principal
amount outstanding.

- Financial Assets measured at Fair Value Through Other
Comprehensive Income (FVTOCI)

A Financial Asset is measured at FVTOCI if it is held within
a business model whose objective is achieved by both
collecting contractual cash flows and selling Financial
Assets and the contractual terms of the Financial Asset
give rise on specified dates to cash flows that represents
solely payments of principal and interest on the principal
amount outstanding.

- Financial Assets measured at Fair Value Through Profit or
Loss (FVTPL)

A Financial Asset which is not classified in any of the
above categories are measured at FVTPL. Financial
assets are reclassified subsequent to their recognition, if
the Company changes its business model for managing
those financial assets. Changes in business model are
made and applied prospectively from the reclassification
date which is the first day of immediately next reporting
period following the changes in business model in
accordance with principles laid down under Ind AS 109
- Financial Instruments.

c. Impairment of Financial Assets

In accordance with Ind AS 109, the Company uses ''Expected
Credit Loss''(ECL) model, for evaluating impairment of Financial
Assets other than those measured at Fair Value Through Profit
and Loss (FVTPL).

Expected Credit Losses are measured through a loss allowance
at an amount equal to:

- The 12-months expected credit losses (expected credit
losses that result from those default events on the
financial instrument that are possible within 12 months
after the reporting date); or

- Full lifetime expected credit losses (expected credit
losses that result from all possible default events over
the life of the financial instrument).

For Trade Receivables the Company applies ''simplified
approach'' which requires expected lifetime losses to be
recognised from initial recognition of the receivables.
The Company uses historical default rates to determine
impairment loss on the portfolio of trade receivables. At every
reporting date these historical default rates are reviewed and
changes in the forward- looking estimates are analysed if
there is a significant change in collection pattern.

For other assets, the Company uses 12 month ECL to provide
for impairment loss where there is no significant increase
in credit risk. If there is significant increase in credit risk full
lifetime ECL is used.

ii. Financial Liabilities

a Initial Recognition and Measurement

All Financial Liabilities are recognised at fair value and in
case of borrowings, net of directly attributable cost. Fees of
recurring nature are directly recognised in the Statement of
Profit and Loss as finance cost.

b Subsequent Measurement

Financial Liabilities are carried at amortised cost using the
effective interest method. For trade and other payables
maturing within one year from the balance sheet date, the
carrying amounts approximate fair value due to the short
maturity of these instruments.

iii. Derecognition of Financial Instruments

The Company derecognises a Financial Asset when the
contractual rights to the cash flows from the Financial Asset
expire or it transfers the Financial Asset and the transfer
qualifies for derecognition under Ind AS 109. A Financial
liability (or a part of a Financial liability) is derecognised from
the Company''s Balance Sheet when the obligation specified
in the contract is discharged or cancelled or expires.

iv. Offsetting

Financial Assets and Financial Liabilities are offset and the net
amount is presented in the balance sheet when, and only
when, the Company has a legally enforceable right to set off
the amount and it intends, either to settle them on a net basis
or to realise the asset and settle the liability simultaneously.

2.18 Non-current assets held for Sale and Discontinued
operations

Assets are classified as non-current assets held for sale if their
carrying amount will be recovered principally through a sale
transaction rather than through continuing use and sale is
considered highly probable. A sale is considered as highly
probable when decision has been made to sell, assets are
available for immediate sale in its present condition, assets
are being actively marketed and sale has been agreed or is
expected to be concluded within 12 months of the date of
classification. Assets held for sale are neither depreciated nor
amortised.

Assets classified as held for sale are measured at the lower of
their carrying amount and fair value less cost of sale and are
presented separately in the Balance Sheet.

For these purposes, sale transactions include exchanges of
non-current assets for other non-current assets when the
exchange has commercial substance. The criteria for held for
sale/distribution classification is regarded met only when the
assets or disposal company is available for immediate sale/
distribution in its present condition, subject only to terms that
are usual and customary for sales/distribution of such assets
(or disposal company), its sale/distribution is highly probable;
and it will genuinely be sold, not abandoned. The Company
treats sale/distribution of the asset or disposal company to be
highly probable when:

- The appropriate level of management is committed to a
plan to sell the asset (or disposal company),

- An active programme to locate a buyer and complete
the plan has been initiated (if applicable),

- The asset (or disposal company) is being actively
marketed for sale at a price that is reasonable in relation
to its current fair value,

- The sale is expected to qualify for recognition as a
completed sale within one year from the date of
classification and

- Actions required to complete the plan indicate that it
is unlikely that significant changes to the plan will be
made or that the plan will be withdrawn.

Discontinued operations are excluded from the results of
continuing operations and are presented as a single amount
as profit or loss after tax from discontinued operations in the
statement ofprofit and loss. Additional disclosures are provided
in Note 47. All other notes to the financial statements mainly
include amounts for continuing operations, unless otherwise
mentioned.

2.19 Earnings Per Share

Basic earnings per share is calculated by dividing the net profit
after tax by the weighted average number of equity shares
outstanding during the year adjusted for bonus element in
equity share if any. Diluted earnings per share adjusts the
figures used in determination of basic earnings per share
to take into account the conversion of all dilutive potential
equity shares. Dilutive potential equity shares are deemed
converted as at the beginning of the period unless issued at a
later date.

2.20 Segment Reporting Policies

Operating segments are reported in a manner consistent
with the internal reporting provided to the Chief Operating
Decision Maker. Managing Director of the Company has been
identified as being the Chief Operating Decision Maker.

2.21 Dividend Distribution Policy

In accordance with Regulation 43A of the Listing Regulations,
the Company has formulated a ''Dividend Distribution Policy.
The Dividend on shares is recorded as a liability on the
date of approval by the shareholders and interim dividends
are recorded as a liability on the date of declaration by the
Company''s Board of Directors. Income tax consequences of
dividends on financial instruments classified as equity will be
recognized according to where the entity originally recognized
those past transactions or events that generated distributable
profits. The Company declares and pays dividends in Indian
rupees. Companies are required to pay / distribute dividend
after deducting applicable taxes. The remittance of dividends
outside India is governed by Indian law on foreign exchange
and is also subject to withholding tax at applicable rates.

2.22 Recent accounting pronouncements

The Ministry of Corporate Affairs notified new standards or
amendment to existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time.
During the year ended 31 March 2025, MCA has not notified
any new standards or amendments to the existing standards
which is applicable to the Company.

12.4 Shares issued without Consideration during last 5 years:

The Equity Shares issued and paid up includes 1,37,99,200 shares of ''5 each (68,99,600 Equity Shares of ''10 each before subdivision)
issued as bonus Shares for consideration other than cash issued on and 11 April 2019 .

12.5 Terms and Rights attached to Equity Shares

The Company has only one class of equity shares having par value of ''5 per share. The Company declares and pays dividends in Indian
rupees. 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. 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.

14.3 In respect of working capital loans, quarterly return or statement of current assets filed by the Company with banks are in agreement
with the books of accounts

14.4 Security Interest created through Security Trust with Vistra ITCL (India) Ltd as trustee with lender banks.

14.5 Term Loan

All outstanding amounts is secured by creating a mortgage on a first pari-passu charge basis on the immovable properties described
in the Note no.14.8

A mortgage on a First pari-passu charge basis has been created in favor of Saraswat Co-operative Bank Limited for its term loan facilities
on the immovable properties described in the Note no.14.9.

The immovable properties detailed in Note no. 14.10 are to be mortgaged in favor of the Security Trustee for the exclusive benefit of
Union Bank of India including a term loan taken over from Aditya Birla Finance Limited.

Plant & Machinery of Panoli Unit has been hypothecated with Bajaj Finserv Ltd.

Loan for Motor Vehicle are secured against respective Motor Vehicles for which Loan is obtained.

14.6 Working Capital Loan

Immovable properties described in the Note no.14.8 secures both working capital and term loan facilities.

Second pari-passu charge on working capital facility has been created on the properties described in Note No. 14.9.

Working Capital Limits Includes Packing Credit, Post Shipment Credit, Buyers Credit, Cash Credit, Letter of Credit, Working Capital
Demand Loan, etc

14.7 Others

The Movable assets of the company has a pari passu charge among the all Lenders.

14.8 Properties given as security referred to Note 14.5

1a Lease hold Properties covers properties located at Tarapur, Boisar, except properties as described in Note 14.9 (2a).

1b Free hold Properties covers properties located at Savli, Vadodara, Gujarat and Residential/ Commercial premises covers properties
located at Manjusar, Savli, Vadodara, Gujarat.

1c Residential premises covers properties located at Vadodara, Gujarat.

14.9 Properties given as security referred to Note 14.5 and 14.6.

2a Lease hold Properties covers properties located at Plot No. E-62/E63,L11,L 9/3 & T-30 located at Tarapur industrial area with
building/factory/shed structure located at Tarapur industrial area, within the village limits of Salwad.

2b Residential/ Commercial premises covers properties located at Flat, No. 7 and 8A Vakil Villa Co-operative Housing Society Limited.

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

As on reporting date Company had no outstanding financial assets or financial liabilities classified as either FVTPL or FVOCI and hence the
said disclosure requirement is not applicable.

Financial instruments measured at amortised cost:

The carrying value approximates fair value for long term financial assets and liabilities measured at amortised cost. There are no transfers
during the year in level 1 2 and 3. The Company policy is to recognize transfers into and transfers out of fair value hierarchy level as at the
end of reporting period.

C. Financial risk management

Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework.
The Company''s risk management policies are established to identify and analyse the risks faced by the Company to set appropriate risk limits
and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes
in market conditions and the Company''s activities. The Company through its training and management standards and procedures aims to
maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company has exposure to the following risks arising from financial instruments:

1. Credit risk

2. Liquidity risk and

3. Market risk

1. Credit risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due to the Company
causing financial loss. It arises from cash and cash equivalents deposits with banks and financial institutions security deposits loans
given and principally from credit exposures to customers relating to outstanding receivables. The Company''s maximum exposure to
credit risk is limited to the carrying amount of financial assets recognised at reporting date.

Trade receivable:-The Company continuously monitors defaults of customers and other counterparties identified either individually
or by the Company and incorporates this information into its credit risk controls. Where available at reasonable cost external credit
ratings and/or reports on customers and other counterparties are obtained and used. The Company''s policy is to deal only with
creditworthy counterparties.The Company has used a practical expedient by computing the expected credit loss allowance for trade
receivables based on a provision matrix by taking into consideration payment profiles of chemical sales and recognised loss allowance
during previous year.

Other Financial Assets:- Credit risk from balance with bank is managed by treasury department as per the company policy.The other
financial assets from various forum of Government authorities are released by authorities on completion of terms and conditions for
release of outstanding.The other financial assets of advance to staff is recovered as per the company''s policy.

2. Liquidity risk

Liquidity risk arises from the Company''s inability to meet its cash flow commitments on the due date. Due to the dynamic nature of
the underlying businesses, company treasury maintains flexibility in funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the company liquidity position and cash and cash equivalents on the basis of expected cash
flows.The Company accesses global and local financial markets to meet its liquidity requirements. It uses a range of products and a mix
of currencies to ensure efficient funding. Treasury monitors rolling forecasts of the Company''s cash flow position and ensures that the
Company is able to meet its financial obligation at all times including contingencies.

3. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as commodity price risk.

a. Foreign Currency Risk

Foreign Currency Risk is the risk that the Fair Value or Future Cash Flows of an exposure will fluctuate because of changes in
foreign currency rates. Exposures can arise on account of the various assets and liabilities which are denominated in currencies
other than Indian Rupee.

The following table shows foreign currency exposures in US Dollar and Euro on financial instruments at the end of the reporting
period. The exposure to all other foreign currencies are not material.

Interest Rate risk:The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in
the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial
statements).

Liquidity Risk: This is the risk that the Company is not able to meet the short-term benefit payouts. This may arise due to non
availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

Salary Escalation Risk: The present value of the above benefit plan is calculated with the assumption of salary increase rate of plan
participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to
determine the present value of obligation will have a bearing on the plan''s liability.

Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability.The Company is
exposed to the risk of actual experience turning out to be worse compared to the assumption.

39. Event Occurring After Balance Sheet Date

a The Board of Directors have recommended a Final dividend of 20% (i.e. ''1.00 Only) per equity share on the face value of ''5 each for the

financial year 24-25, subject to approval of shareholders in the ensuing Annual General Meeting.

b Subsequent to the year ended 31 March 2025, the Company acquired Genrx Pharmaceuticals Private Limited (which was under
liquidation) on a going concern basis.

40. Lease

The Company''s lease asset classes consist of leases for land & buildings. The lease period for these contracts is 5 years, with extension
options. The Right-of-use assets and Lease liabilities as disclosed below, do not include short term and low value leases. In general, as
usual with leases, the Company''s obligations under its leases are secured by the lessor''s title to or legal ownership of the leased assets.

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the
obligations related to lease liabilities as and when they fall due.

f Rent expenses recorded for short term leases was ''53.73 (Previous Year : ''27.04) for the year ended 31 March, 2025.

41 Segment Reporting as per Ind AS 108 establishes standards for the way that Company reports information about operating
segment and related disclosure about products and geographical areas (refer note 42(a)). The operations of the Company are limited
to one segment i.e Development, Manufacturing and Marketing of Active Pharmaceutical Ingredients (API) including Intermediate
and Formulations (Finished Dosage Forms). The Company''s Chief Operating Decision Maker (CODM) reviews the internal management
reports prepared based on an aggregation of financial information adjustments, etc. on a periodic basis.

42 Disclosure Under Ind AS - 115 (Revenue From Contracts With Customers)

Disaggregate revenue information

Set out below is the disaggregation of the Company''s revenue from contracts with customers and reconciliation to the statement of
profit and loss:

43 Audit Trail

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses
accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording
audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when
such changes were made and ensuring that the audit trail cannot be disabled.

The Company uses accounting software for maintaining its books of account which does have a feature of recording audit trail (edit
log) facility except in the case of changes to database.

Income and Expenditure:

i. Remuneration includes payment to Mr.S.K.R. Bajaj ''394.96 (P.Y. ''360.00) to Mr.Anil C. Jain ''277.46 (PY ''240.00) to Mr. Dhananjay
S. Hatle ''54.05 (PY ''32.40) to Ms. Namrata Bajaj ''17.25 (PY ''10.83) to Mr. Rupesh H. Nikam '' Nil (PY ''21.35), to Mr Dayashankar
Patel ''22.58 (PY ''Nil) to Pakshal C. Jain ''23.27 (PY ''19.04) and to Aakash Keshari ''Nil (PY ''9.84), Ms. Apurva Bandivadekar ''2.93
(PY ''0.50), Ms Monica Tanwar ''3.67 (PY '' Nil), Mrs. Harshavi Pakshal Jain ''17.31 (PY ''7.21).

ii. Sponsorship payment for education includes payment made to Mr. Siddhesh Hatle '' Nil (PY ''0.52).

iii. Sale of assets & other materials includes Sale from Bajaj Healthcare Ltd to Bajaj Sindhudurg Rice Mills Limited ''0.63 (PY ''2.50).

iv. Legal & Professional Fees includes payment to Mrs. Dhanshree Hatle ''4.62 (PY ''4.62) to Ms. Khushi Jain ''6.00 (PY ''6.00) and to
Mrs. Nihita Bajaj Kumar ''12.00 (PY ''12.00).

v. Corporate Social Responsibility amounting to ''26.00 (PY '' Nil) to Taradevi Rameshwarlal Bajaj Charitable Trust.

45. Contingent Liabilities and Commitments :

Claim Against company not acknowledged as debts:

High Court of Justice Business and Property Courts of England and Wales in a business dispute has passed the order against the
Company to pay GBP 6,46,883.39/- to a Debtor which shall however be subject to deduction of outstanding receivable from such
Debtor of USD 5,13,946.20/-. Further the Court has yet to pass the order quantifying the Interest payable on differential amount.
The Company has estimated the net claim which could be payable to this Debtor at ''252.63 (Previous year ''233.59) plus applicable
interest as quantified).The Company will account for the same when demand for the same is received alongwith the confirmation that
the order of the court is enforceable.

i) Central Excise Custom Duty, Central Sales Tax, GST Liabilities and Income Tax Liabilities ''2,349.55 (Previous year ''499.91) as listed
below. This represents the demands made by authorities which in opinion of company are not sustainable and appeals are
pending with appropriate authority.

''Net Operating Income = PBT before exceptional item Fin cost depreciation - other income

²Total Debt Services = Short Term Borrowings Finance cost

³Capital employed = Equity Shareholder - Intangible assets - Intangible assets under development - Deferred Tax Assets (Net) Deferred Tax Liabilities (Net)

⁴EBIT - Earning before Interest, tax, exceptional items, Other income.

''. Wherever, numerator and denominator both are positive, ratio is presented as positive.

2. Wherever, either numerator or denominator or both are negative, ratio is presented as negative

3. To calculate the ratios we have considered the continued operations only.

4. Reasons for more than 25% variance

i) Current Ratio: The change in Current Ratio is due to increase in Trade Receivables & decrease in Borrowings.

ii) Debt Equity Ratio: The change in the Debt Equity Ratio is primarily due to a reduction in working capital loans and current
maturities of term loans, along with an increase in equity share capital through the issuance of equity shares & share warrants
during the year. This reflects improved financial leverage.

iii) Debt Service Coverage Ratio: The change in DSCR is due to increase in operating profits and decrease in Working capital loan
& finance costs. This indicates a stronger ability of the company to meet its debt obligations from its operating cash flows.

iv) Return on Equity: Mainly due to increase in Net profit during the year.

v) Inventory Turnover Ratio: The increase in inventory turnover ratio is due to higher inventory maintained with increase in
production.

vi) Net Capital Turnover Ratio: The change in the Net Capital Turnover Ratio is primarily due to a substantial increase in working
capital with growth in business operations.

vii) Net Profit Ratio: The improvement in the Net Profit Ratio is primarily due to an increase in profit during the year. While revenue
grew by ''7%, total expenses increased by only ''4%, indicating better cost control and improved margins.

47 Discontinued Operation

The Board of Directors in their meeting held on 28 June 2023 approved to sale/disposal of undertaking/unit(s) on going concern basis,
situated at plot no. N-92, L-9/3 , T-30, MIDC Tarapur, Taluka- Boisar, District Palghar, Maharashtra and vacant industrial land situated at
plot no. D-2/CH/42 & D-2/CH/43 Dahej industrial area, GIDC, Bharuch, Gujarat (which were acquired under SARFAESI ACT, 2022 from
Saraswat Bank) and plot no.E-62 and E-63 MIDC Tarapur, Taluka Boisar, District Palghar, Maharashtra. Approval of shareholders has been
obtained vide postal ballot. The management has classified the assets and liabilities in relation to these units as Assets and liabilities
held for sale/disposal under Ind AS 105 ("Non-current Assets Held for Sale and Discontinued Operations"). The results of the operation
of these units have been presented separately on the statement of profit and loss as discontinued operations. Considering these assets
are held for sale, the assets have been recorded at their fair value on the date these assets has been classified as held for sale. Out of
these, one unit situated at plot no. N-92 has been sold during the Quarter ended 31^st March, 2024. The total value of assets classified as
held for sale represents management best estimate of the realisable value of these assets.

48 Other Statutory Information

i) No proceedings have been initiated on or are pending against the company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

ii) The Company has identify, there is no parties having status as struck off companies in current year and previous year. Total value
of purchase of goods & services from these struck off companies amounts to Nil (Previous Year : Nil) and having Closing balance
of Nil (Previous Year : Nil) payable at the year end.

iii) There are no charges or satisfactions which are yet to be registered with Registrar of Companies beyond the statutory period.

iv) The company has not traded or invested in crypto currency or virtual currency during the current year or previous year.

v) No funds have been advanced or loaned or invested by the Company to or in any person(s) or entity(ies), including foreign
entities (''the intermediaries''), with the understanding, whether recorded in writing or otherwise, that the intermediary shall,
whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Company (''the Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries.

vi) No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (''the Funding Parties''),
with the understanding, whether recorded in writing or otherwise, that the Company shall, whether 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vii) There is no income surrendered or disclosed as income during the current or previous year in the tax assessment under the
Income Tax Act, 1961, that has been recorded in the books of accounts.

viii) The company has not given any loans or advances in the nature of loans to promoters, directors, KMPs and/ or related parties (as
defined under Companies Act, 2013), either severally or jointly with any other person, that are repayable on demand, or without
specifying any terms or period of repayment.

ix) The company has not entered into any scheme of arrangement which has an accounting impact on current year.

x) In compliance with Regulation 169(4) of the SEBI (ICDR) Regulations, 2018, the Company obtained a certificate from its external
Chartered Accountant firm and submitted the same to the respective Stock Exchanges on 5 November 2024. Subsequently,
neither BSE nor NSE raised any observations or indicated any non-compliance by the Company under the said regulation.

49 Other

Previous year''s figures have been regrouped wherever necessary and possible so as to confirm to current year''s classification. However,
such regroupings are not material.

The accompanying material accounting policies and notes are part of the Financial Statement.

As per our Report of even date For and on behalf of the Board

For Walker Chandiok & Co LLP

Chartered Accountants

Firm Registration No. : 001076N/N500013

Yashwant M Jain Sajankumar R. Bajaj Anil Jain

Partner Chairman and Managing Director Managing Director

Membership No. : 118782 DIN : 00225950 DIN : 00226137

Rohan Parekh Monica Tanwar

Chief Financial Officer Company Secretary

ACS No. A35334

Place: Thane Place: Thane

Date: 26 May 2025 Date: 26 May 2025

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Mar 31, 2024

B. Fair Value Hierarchy and Method of Valuation

Financial instruments measured at FVTPL / FVTOCI :

All assets and liabilities for which the fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy described as follows based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 - Inputs are quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement are (other than quoted prices) included within Level 1 that are observable for the asset or liability either directly or indirectly.

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

As on reporting date Company had no outstanding financial assets or financial liabilities classified as either FVTPL or FVOCI and hence the said disclosure requirement is not applicable.

Financial instruments measured at amortised cost:

The carrying value approximates fair value for long term financial assets and liabilities measured at amortised cost. There are no transfers during the year in level 1 2 and 3. The Company policy is to recognize transfers into and transfers out of fair value hierarchy level as at the end of reporting period.

C. Financial risk management Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risks faced by the Company to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company through its training and management standards and procedures aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company has exposure to the following risks arising from financial instruments:

1. Credit risk

2. Liquidity risk and

3. Market risk

1. Credit risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due to the Company causing financial loss. It arises from cash and cash equivalents deposits with banks and financial institutions security deposits loans given and principally from credit exposures to customers relating to outstanding receivables. The Company''s maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at reporting date.

Trade receivable:-The Company continuously monitors defaults of customers and other counterparties identified either individually or by the Company and incorporates this information into its credit risk controls. Where available at reasonable cost external credit ratings and/or reports on customers and other counterparties are obtained and used. The Company''s policy is to deal only with creditworthy counterparties.The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix by taking into consideration payment profiles of chemical sales and recognised loss allowance of RS 583 lakhs during previous year.

Other Financial Assets:- Credit risk from balance with bank is managed by treasury department as per the company policy. The other finacial assets from various forum of Government authorites are released by authorities on completion of terms and conditions for release of outsatnding.The other finacial assets of advence to staff is recovered as per the company''s policy.

2. Liquidity risk

Liquidity risk arises from the Company''s inability to meet its cash flow commitments on the due date. Due to the dynamic nature of the underlying businesses, company treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the company liquidity position and cash and cash equivalents on the basis of expected cash flows.The Company accesses global and local financial markets to meet its liquidity requirements. It uses a range of products and a mix of currencies to ensure efficient funding. Treasury monitors rolling forecasts of the Company''s cash flow position and ensures that the Company is able to meet its financial obligation at all times including contingencies.

Matuarities of financial laibilities

The table below is an analysis of Company''s financial liabilities based on their remaining contractual maturities of financial liabilities at the reporting date.

3. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as commodity price risk.

a. Foreign Currency Risk

Foreign Currency Risk is the risk that the Fair Value or Future Cash Flows of an exposure will fluctuate because of changes in foreign currency rates. Exposures can arise on account of the various assets and liabilities which are denominated in currencies other than Indian Rupee.

NOTE 33 CAPITAL MANAGEMENT

The primary objective of the Company''s capital management is to maximize the shareholders'' interest safeguard its ability to continue as a going concern and reduce its cost of capital. Company is focused on keeping strong total equity base to ensure independence security as well as high financial flexibility for potential future expansion required if any. Company''s capital for capital management includes long term debt and total equity. As at March 31,2024 and March 31,2023 total capital is ''27836.09 lakhs and '' 36768.95 Lakhs respectively. No changes were made in the objectives policies or processes for managing capital during the year ended March 31 2024 and March 31 2023. The Company monitors capital using a gearing ratio, which is debt divided by total capital. Debt is calculated as loans and borrowings plus lease liabilities

NOTE 37 OTHER

Previous year''s figures have been regrouped/rearranged/reworked wherever necessary and possible so as to confirm to current year''s classification as per requirement of Division II- IND AS Schedule III. However such regrouping are not material.

NOTE 38 EMPLOYEE BENFITS

a Defined Contribution Plans

The Company has various schemes for employee benefits such as Provident Fund, ESIC, Gratuity and Leave Encashment.The Company''s defined contribution plans are Provident Fund (in case of certain employees) and Employees State Insurance Fund (under the provisions of the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952). The Company has no further obligation beyond making the contributions to such plans.

The Plan typically exposes the Company to the following actuarial risk ,

Interest Rate risk:The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial statements).

Liquidity Risk: This is the risk that the Company is not able to meet the short-term benfit payouts. This may arise due to non availabilty of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

Salary Escalation Risk: The present value of the above benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liabilty

Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability.The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

NOTE 39 RESEARCH AND DEVELOPMENT EXPENDITURE:

i. All revenue expenditure on research and development are changed to the profit and Loss Account. Fixed Assets used for research and development are capitalized.

ii. The Company has obtained renewed approval for In-house R&D Facility from the Department of Scientific and Industrial Research (DSIR) vide letter No. TU/IV-RD/4031/2022 dated 16th June, 2022 for the purpose of section 35(2AB) of the Income Tax Act, 1961 valid till 31st March, 2025 subject to the condition underline therein.

NOTE 40 EVENT OCCURRING AFTER BALANCE SHEET DATE

The Board of Directors have recommended a Final dividend of 20% (i.e. ''1.00/- Only) per equity share on the face value of ''5/- each for the financial year 23-24, subject to approval of sharcholders in the ensuing Annual General Meeting.

NOTE 41 LEASE

The Company''s lease asset classes consist of leases for buildings. The lease period for these contracts is 5 years, with extension options. The Right-of-use assets and Lease liabilities as disclosed below, do not include short term and low value leases. In general, as usual with leases, the Company''s obligations under its leases are secured by the lessor''s title to or legal ownership of the leased assets

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

f Rent expenses recorded for short term leases was 27.04 Lakhs (Previous Year : 31.29 Lakhs) for the year ended 31st March, 2024.

NOTE 42 SEGMENT REPORTING as per IND AS - 108 is not appliacble as the Management has determined that the Company dealing in Bulk Drugs and Formulation as a whole operates under single Chief Operating Decision Maker ( CODM ) w.e.f April 1st, 2022, pursuant to Organisational Restructuring.

NOTE 44 AUDIT TRAIL :

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of he Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, hich uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled. The Company uses accounting software for maintaining its books of account which does not have a feature of recording audit trail (edit log) facility. Based on management assessment, the non-availability of audit trail functions will not have any impact on the performance of the accounting software, as management has all other necessary controls in place which are operating effectively.

Income and Expenditure:

i. Remuneration includes payment to Mr.S.K.R. Bajaj ''360.00 lakhs (P.Y. ''360.00 lakhs) Mr.Anil C. Jain ''240.00 Lakhs (PY ''240.00 lakhs) to Mr. Dhananjay S. Hatle ''32.40 lakhs (PY ''31.50 lakhs ) to Ms. Namrata Bajaj ''10.83lakhs (PY ''11.09 lakhs) to Mr. Rupesh H. Nikam ''21.35 lakhs (PY ''23.67 lakhs) to Pakshal C.Jain ''19.04lakhs (PY ''19.06 lakhs) and to Aakash Keshari ''9.84 Lakhs (PY '' 11.49lakhs). Ms. Apurva Bandivadekar ''0.50 lakhs. Mrs. Harshavi Pakshal Jain 7.21 (PY NIL)

ii. Sponsorship payment for education includes payment made to Ms.Gayatri Hatle ''NIL Lakhs (PY ''1.67); to Mr. Siddhesh Hatle ''0.52 lakhs (PY ''7.50 lakhs) to Ms. Khushi Jain ''NIL Lakhs (PY ''20.41).

iii. Purchase of assets includes purchase from Bajaj Sindhudurg Rice Mills Limited ''NIL Lakhs (PY ''2.16).

iv. Sale of assets includes Sale from Bajaj Healthcare Ltd to Bajaj Sindhudurg Rice Mills Limited ''2.50 Lakhs (PY ''15.93).

iv. Legal & Professional Fees includes payment to Mrs. Dhanshree Hatle ''4.62 Lakhs (PY ''4.62 ) to Ms. Khushi Jain ''6.00 lakhs (PY ''6.00) and to Mrs. Nihita Bajaj Kumar ''12.00 lakhs (PY ''12.00).

v. Corporate Social Responsibility amounting to ''NIL Lakhs (PY ''130 lakhs to Taradevi Rameshwarlal Bajaj Charitable Trust )

Note: Amount shown in brackets represents the amount of previous year.

NOTE 46 CONTINGENT LIABILITIES AND COMMITMENTS :

Claim Against company not acknowledged as debts:

• High Court of Justice Business and Property Courts of England and Wales in a business dispute has passed the order against the Company to pay GBP 6,46,883.39/- to a Debtor which shall however be subject deduction of outstanding receivable from such Debtor of USD 5,13,946.20/-. Further the Court has yet to pass the order quantifying the Interest payable on differential amount. The Company has estimated the net claim which could be payable to this Debtor at ''252.63 Lakhs (previous Year 233.59 Lakhs) Plus Applicable interest as quantified).The Company will account for the same when demand for the same is received alongwith the confirmation that the order of the court is enforceable.

i) Central Excise Custom Duty, Central Sales Tax, GVAT Liabilities and Income Tax Liabilities ''499.91 Lakhs Plus Applicable Interest (Previous year ''489.51 Lakhs). This represents the demands made by authorities which in opinion of company are not sustainable and appeals are pending with appropriate authority.

1. Wherever, numerator and denominator both are positive, ratio is presented as positive.

2. Wherever, either numerator or denominator or both are negative, ratio is presented as negative

3. To calculate the ratios we have considered the continued operations only.

4. Reasons for more than 25% variance

i) Debt Service Coverage Ratio: The change in DSCR is due to reduction in Profits and increase in finance cost

ii) Return on Equity: Due to loss during the year.

iii) Inventory Turnover Ratio: Inventories has reduced due to write off pertaining to certain covid portfolio products owing to continued lower demand.

iv) Trade Receivable Turnover Ratio: Mainly due to increase in average trade receivable

v) Trade Payables Turnover Ratio: Mainly due to increase in average trade payable also to some extent reduction in purchase of stock

vi) Net Capital Turnover Ratio: there is reduction in revenue from operation as compared to last year.

vii) Net Profit Ratio: Mainly on account of lower profits due to inventory w/off and impairment losses

viii) Return on investment: Mainly due to reduction in revenue from operation as compared to last year.

NOTE 48 DISCONTINUED OPERATION

The Board of Directors in their meeting held on 28 June 2023 approved to sale/disposal of undertaking/unit(s) on going concern basis, situated at plot no. N-92, L-9/3 , T-30, MIDC Tarapur, Taluka- Boisar, District Palghar, Maharashtra and vacant industrial land situated at plot no. D-2/CH/42 & D-2/CH/43 Dahej industrial area, GIDC, Bharuch, Gujarat (which were acquired under SARFAESI ACT, 2022 from Saraswat Bank) and plot no.E-62 and E-63 MIDC Tarapur, Taluka Boisar, District Palghar, Maharashtra. Approval of shareholders has been obtained vide postal ballot. The management has classified the assets and liabilities in relation to these units as Assets and liabilities held for sale/disposal under Ind AS 105 ("Non-current Assets Held for Sale and Discontinued Operations”). The results of the operation of these units have been presented separately on the statement of profit and loss as discontinued operations. Considering these assets are held for sale, the assets have been recorded at their fair value on the date these assets has been classified as held for sale. Out of these, one unit situated at plot no. N-92 has been sold during the Quarter ended 31st March, 2024. The total value of assets classified as held for sale represents management best estimate of the realisable value of these assets.

NOTE 49 OTHER SATUTORY INFORMATION

i) No proceedings have been initiated on or are pending against the company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder

ii) The Company has identify, there is no parties having status as struck off companies in current year and previous year. Total value of purchase of goods & services from these struck off companies amounts to ''Nil (Previous Year : Nil) and having Closing balance of ''Nil (Previous Year : Nil) payable at the year end

iii) There are no charges or satisfactions which are yet to be registered with Registrar of Companies beyond the statutory period

iv) The company has not traded or invested in crypto currency or virtual currency during the current year or previous year

v) No funds have been advanced or loaned or invested by the Company to or in any person(s) or entity(ies), including foreign entities

(''the intermediaries''), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (''the Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries

vi) No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (''the Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vii) There is no income surrendered or disclosed as income during the current or previous year in the tax assessment under the Income Tax Act, 1961, that has been recorded in the books of accounts

viii) The company has not given any loans or advances in the nature of loans to the promoters, Directors and KMPs as defined under Companies Act, 2013

ix) The company has not been defined as willful defaulter by any bank or financial institution or government or any government authority.

x) The company has not entered into any scheme of arrangement which has an accounting impact on current year

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Mar 31, 2023

The total amount of trade receivables ( Gross) of ''23324.93 Lakhs includes a significant amount of trade receivables from a single debtor for materials sold and services provided during the year aggregating to ''8,965.78 Lakhs, with year end outstanding amount of ''7,112.83 Lakhs, which remains unpaid as of March 31, 2023. This amount includes an overdue amount of ''5,369.09 Lakhs. The debtor procurred material from the company for supply to a MNC in USA, but the supplies were deferred due to process of KYC and/ or sample approvals etc and resulting in failure of the debtor to honour its payment commitment in time. Further the company had also entered into an agreement for sale of technical know to a party jointly with the same debtor and the collection for services were to be received from the debtor which interalia is dependent on its realisation from the service recepient. The debtor is unable to supply the material and do collection from the service recepient and thus unable to pay to the Company on the due date. The Debtor expect to commence its supplies in comming month and would be able to pay the company out of the said realisation. Also the debtor explained to the satisfaction of management that the money for service shall also be received in comming months and hence had requested the company to extend the due dates of all the bills from existing 30 days to a date 270 days from bill date or 30th September 2023 whichever is later. The management is confident that the amount outstanding for sale of goods as well as provision of service will be recovered within FY 2023-24. The management on its assessment and on conservative basis has considered the debtor as trade receivable with significant risk and made provision for ECL by discounting the expected collection @ 10.25% p.a.

11.4 Shares issued without Consideration during last 5 years :

The Equity Shares issued and paid up includes 13799200 shares of ''5/- each (6899600 Equity Shares of ''10/- each before subdivision) issued as bonus Shares for consideration other than cash issued on and 11th April 2019 .

11.5Terms and Rights attached to Equity Shares

The Company has only one class of equity shares having par value of INR 5 per share. The Company declares and pays dividends in Indian rupees. 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. 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.

B. Fair value Measurement

Financial instruments measured at FVTPL / FVOCI :

All assets and liabilities for which the fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy described as follows based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 - Inputs are quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement are (other than quoted prices) included within Level 1 that are observable for the asset or liability either directly or indirectly.

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

As on reporting date Company had no outstanding financial assets or financial liabilities classified as either FVTPL or FVOCI and hence the said disclosure requirement is not applicable.

Financial instruments measured at amortised cost:

The carrying value approximates fair value for long term financial assets and liabilities measured at amortised cost. There are no transfers during the year in level 1 2 and 3. The Company policy is to recognize transfers into and transfers out of fair value hierarchy level as at the end of reporting period.

C. Financial risk management

Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risks faced by the Company to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company through its training and management standards and procedures aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company has exposure to the following risks arising from financial instruments:

1. Credit risk

2. Liquidity risk and

3. Market risk

1. Credit risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due to the Company causing financial loss. It arises from cash and cash equivalents deposits with banks and financial institutions security deposits loans given and principally from credit exposures to customers relating to outstanding receivables. The Company''s maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at reporting date. The Company continuously monitors defaults of customers and other counterparties identified either individually or by the Company and incorporates this information into its credit risk controls. Where available at reasonable cost external credit ratings and/or reports on customers and other counterparties are obtained and used. The Company''s policy is to deal only with creditworthy counterparties.

2. Liquidity risk

Liquidity risk arises from the Company''s inability to meet its cash flow commitments on the due date. The Company maintains sufficient stock of cash, and committed credit facilities. The Company accesses global and local financial markets to meet its liquidity requirements. It uses a range of products and a mix of currencies to ensure efficient funding. Treasury monitors rolling forecasts of the Company''s cash flow position and ensures that the Company is able to meet its financial obligation at all times including contingencies.

3. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as commodity price risk.

a. Foreign Currency Risk

Foreign Currency Risk is the risk that the Fair Value or Future Cash Flows of an exposure will fluctuate because of changes in foreign currency rates. Exposures can arise on account of the various assets and liabilities which are denominated in currencies other than Indian Rupee.

The following table shows foreign currency exposures in US Dollar and Euro on financial instruments at the end of the reporting period. The exposure to all other foreign currencies are not material.

33. Capital Management

The primary objective of the Company''s capital management is to maximize the shareholders'' interest safeguard its ability to continue as a going concern and reduce its cost of capital. Company is focused on keeping strong total equity base to ensure independence security as well as high financial flexibility for potential future expansion required if any. Company''s capital for capital management includes long term debt and total equity. As at March 31,2023 and March 31,2022 total capital is ''36768.94 lakhs and ''32848.55 Lakhs respectively. No changes were made in the objectives policies or processes for managing capital during the year ended March 31 2023 and March 31 2022.

34. A. Security Interest created through Security Trust with IL& FS Trust Company Limited as trustee.

The Security (except as detailed in Clause B below ) created under a security trust shall rank pari-passu for multiple lenders without any preference or priority of one lender over the other.

i. For Term Loan Facility

a) 1st Pari Passu Charge on all Fixed Assets (Movable and Immovable) excluding assets financed by Saraswat Co-Opeative Bank Ltd. Wherein working capital lenders will have second pari passu charge

b) 2nd Pari Passu Charge on current Assets

ii. For Working Capital (CITI bank, SVC bank, Saraswat Bank and Standard Chartered Bank)

a) 1st Pari Passu Charge on the Current Assets and also on all the Fixed Assets (Movable and Immovable) of the Company (excluding assets financed by Saraswat Co.Operative Bank Ltd. Wherein working capital lenders will have second pari passu charge)

(Working Capital Limits Includes Packing Credit, Post Shipment Credit Buyers, Credit Cash Credit, Letter of Credit,Working Capital Demand Loan, etc)

B. Other Security Interest not part of security Trust unless specified:

a) Office Premises at Thane is exclusively Mortgaged / Hypothecated to Aditya Birla Finance Limited

b) Loan for Motor Vehicle are secured against respective Motor Vehicles for which Loan is obtained.

c) For Term Loan from Saraswat Bank : First Charge with Sarawat Bank on Movable Fixed Assets and Immovable Properties of the company and Second Pari Passu charge allocated for Multiple working capital lenders of the company.

d) Plant & Machinery of Panoli Unit has been hypothecated with Bajaj Finserv Ltd.

e) First Pari Passu Charge created by ICICI bank during the year on Fixed Assets (Movable and Immovable) and 2nd Pari Passu charge on Current Assets for Term Provided.

f) First Pari Passu Charge created by Axis Bank during the year on the Current Assets and also on all the Fixed Assets (Movable and Immovable) of the Company (excluding assets financed by Saraswat Co.Operative Bank Ltd. Wherein working capital lenders will have second pari passu charge) for Working capital facility provided.

g) Further All borrowings are secured by personal guarantees of the directors Mr. S. K. R. Bajaj Mr. Anil C. Jain.

35. In opinion of the Directors Current Assets Loans and advances have the value at which they are stated in the Balance Sheet if realized in the ordinary course of business. All the outstanding liabilities other than those stated under contingent liabilities have been provided for.

36. The balance of Sundry Debtors Creditors and Loans & Advances are subject to confirmations and reconciliation.

37. Since no specific intimation has been received from any of the suppliers regarding the status of their registration as Micro Small or Medium as defined under Micro Small and Medium Enterprises Department (MSMED) Act 2006 as at 31st March 2023 disclosure relating to amounts unpaid as at the year end if any have not been furnished. However the Company has been regular in paying to the Vendors as per agreed terms and conditions and hence the management feels there are no requirements for any provision towards interest.

43 Research and Development Expenditure:

i. All revenue expenditure on research and development are charged to the profit and Loss Account. Fixed Assets used for research and development are capitalized.

ii. The Company has obtained renewed approval for In-house R&D Facility from the Department of Scientific and Industrial Research (DSIR) vide letter No. TU/IV-RD/4031/2022 dated 16th June, 2022 for the purpose of section 35(2AB) of the Income Tax Act, 1961 valid till 31st March, 2025 subject to the condition underline therein.

44. Borrowings Secured Against Current Assets

In respect of working capital loans, quarterly return or statement of current assets filed by the Company with banks are in agreement with the books of accounts.

45. Segment Reporting : The Management has determined that the Company dealing in Bulk Drugs and Formulation as a whole operates under single Chief Operating Decision Maker ( CODM ) w.e.f April 1st, 2022, pursuant to Organisational Restructuring. The CODM reviews the financial performance at pharmacuetical business level, comprising of formulations and active pharmaceutical ingredient components which are interlinked and interdependent, therefore, the company has only one reportable segment i.e. Pharmacueticals.

46. Going Concern Assumptions :

Even though there is increase in borrowings to fund the increase in current assets and capex and reduction in profit during the year as compared to the previous in absence of growth in revenue and increase in overdue debtors, the management is confident of its ability to recover its overdue current assets, generate new business and resume its growth in revenue and profits and augment its cash flow requirements to ensure adequate liquidity in the company. Further, since the current assets of the company exceeds its aggregate of current liabilities as at March 31, 2023 together with the projected financial commitments for repayments of loans and capex, the company had prepared its financial statements on going concern basis of accounting.

Income and Expenditure:

i. Remuneration includes payment to Mr.S.K.R. Bajaj ''360.00 lakhs (P.Y. ''48.00 lakhs) Mr. Anil C. Jain ''240.00 Lakhs (PY ''48.00 lakhs ) to Mr. Dhananjay S. Hatle ''31.50 lakhs (PY ''28.76 lakhs ) to Ms. Namrata S. Bajaj ''11.09 lakhs (PY ''10.15 lakhs) to Mr. Rupesh H. Nikam ''23.67 lakhs (PY ''21.06 lakhs) to Mr. Pakshal A. Jain ''19.06 lakhs (PY ''11.85 lakhs) and to Mr. Aakash T. Keshari ''11.49 Lakhs (PY ''10.45 lakhs).

ii. Sponsorship payment for education includes payment made to Ms. Gayatr D. Hatle ''1.67 Lakhs (PY '' NIL); to Mr. Siddhesh D. Hatle ''7.50 lakhs (PY ''1.65 lakhs) to Ms. Khushi A. Jain ''20.41 Lakhs (PY '' NIL).

iii. Purchase of assets includes purchase from Bajaj Sindhudurg Rice Mills Limited ''2.16 Lakhs (PY '' NIL).

iv. Sale of assets includes Sale from Bajaj Healthcare Ltd to Bajaj Sindhudurg Rice Mills Limited ''15.93 Lakhs (PY '' NIL).

iv. Legal & Professional Fees includes payment to Mrs. Dhanshree D. Hatle ''4.62 (PY '' NIL ) to Ms. Khushi A. Jain ''6.00 (PY '' NIL) and to Mrs. Nihita Bajaj Kumar ''12.00 (PY '' NIL).

v. Corporate Social Responsibility Expenses includes payment to Taradevi Rameshwarlal Bajaj Charitable Trust amounting to ''130 Lakhs (PY '' Nil)

Note: Amount shown in brackets represents the amount of previous year.

48 Contingent Liabilities and Commitments (to the extent not provided for):

Claim Against company not acknowledged as debts:

• High Court of Justice Business and Property Courts of England and Wales in a business dispute has passed the order against the Company to pay GBP 646883.39 to a Debtor which shall however be subject deduction of outstanding receivable from such Debtor of USD 513946.20. Further the Court has yet to pass the order quantifying the Interest payable on differential amount. The Company has estimated the net claim which could be payable to this Debtor at ''236.45 Lakhs. (Plus Applicable interest as quantified).The Company will account for the same when demand for the same is received alongwith the confirmation that the order of the court is enforceable.

• Central Excise Custom Duty, Central Sales Tax, GVAT Liabilities and Income Tax Liabilities ''489.51 Lakhs Plus Applicable Interest (Previous year ''505.56 Lakhs). This represents the demands made by authorities which in opinion of company are not sustainable and appeals are pending with appropriate authority.

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Mar 31, 2021

b. For the purposes of reporting as set out in Note 1, we have transitioned our basis of accounting from previous GAAP to Ind AS. The accounting policies set out in note 1 have been applied in preparing the comparative information presented in these financial statements for the year ended March 31,2019 and in the preparation of an opening Ind AS balance sheet at April 1, 2018 (the “transition date"). An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial statements is set out in the following tables and the notes that accompany the tables. On transition, we did not revise estimates previously made under previous GAAP except where required by Ind AS.

c. Notes to first-time adoption:

i. Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e, Actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these 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, 2020 decreased by 25.50 lakhs. There is no impact on the total equity as at March 31,2020.

ii. 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 recognised 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.

iii. Deferred tax

Deferred tax adjustments amounting to (''46.28 lakhs) as at March 31, 2020 (April 01, 2019: (''126.05 lakhs) include deferred tax impact on account of differences between previous GAAP and Ind AS. The profit for the year ended i.e. March 31,2020 increased by ''62.56 lakhs due to the deferred tax adjustments made.

iv. Reserves and Surplus

Retained earnings as at April 01,2019 has been adjusted consequent to the above Ind AS transition adjustments.

The Fair value of Assets consisting of Land as on 1^st April 2019 is considered as deemed cost and the difference between the Cost under IGAAP and deemed cost has been credited to Opening balance of Retained earning. Total amount on account of revaluation of Land standing in the credit balance of retained earnings amounts to ''6710.30 lakhs. (Including revaluation reserve of ''3958.51 lakhs under IGAAP financials as on 1^st April 2019.)

B. Fair value Measurement

Financial instruments measured at FVTPL / FVOCI:

All assets and liabilities for which the fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy described as follows based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 - Inputs are quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement are (other than quoted prices) included within Level 1 that are observable for the asset or liability either directly or indirectly.

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

As on reporting date Company had no outstanding financial assets or financial liabilities classified as either FVTPL or FVOCI and hence the said disclosure requirement is not applicable.

Financial instruments measured at amortised cost:

The carrying value approximates fair value for long term financial assets and liabilities measured at amortised cost. There are no transfers during the year in level 1 2 and 3. The Company policy is to recognize transfers into and transfers out of fair value hierarchy level as at the end of reporting period.

C. Financial risk management

Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risks faced by the Company to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company through its training and management standards and procedures aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

1. Credit risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due to the Company causing financial loss. It arises from cash and cash equivalents deposits with banks and financial institutions security deposits loans given and principally from credit exposures to customers relating to outstanding receivables. The Company''s maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at reporting date. The Company continuously monitors defaults of customers and other counterparties identified either individually or by the Company and incorporates this information into its credit risk controls. Where available at reasonable cost external credit ratings and/or reports on customers and other counterparties are obtained and used. The Company''s policy is to deal only with creditworthy counterparties.

2. Liquidity risk

Liquidity risk arises from the Company''s inability to meet its cash flow commitments on the due date. The Company maintains sufficient stock of cash, and committed credit facilities. The Company accesses global and local financial markets to meet its liquidity requirements. It uses a range of products and a mix of currencies to ensure efficient funding. Treasury monitors rolling forecasts of the Company''s cash flow position and ensures that the Company is able to meet its financial obligation at all times including contingencies.

Exposure to liquidity risk

The table below is an analysis of Company''s financial liabilities based on their remaining contractual maturities of financial liabilities at the reporting date.

3. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as commodity price risk.

a. Foreign Currency Risk

Foreign Currency Risk is the risk that the Fair Value or Future Cash Flows of an exposure will fluctuate because of changes in foreign currency rates. Exposures can arise on account of the various assets and liabilities which are denominated in currencies other than Indian Rupee.

c) Commodity Price Risk

Commodity price risk arises due to fluctuation in prices of Raw Material. The Company has a risk management framework aimed at prudently managing the risk arising from the volatility in commodity prices and freight costs.

The Company''s commodity price risk is managed centrally through well-established trading operations and control processes.

33. Capital Management

The primary objective of the Company''s capital management is to maximize the shareholders''interest safeguard its ability to continue as a going concern and reduce its cost of capital. Company is focused on keeping strong total equity base to ensure independence security as well as high financial flexibility for potential future expansion required if any. Company''s capital for capital management includes long term debt and total equity. As at March 31,2021. March 31,2020 and April 1,2019 total capital is ''25,841.05 lakhs and ''17,793.23 lakhs and ''15,287.64 lakhs respectively. No changes were made in the objectives policies or processes for managing capital during the year ended March 31,2021 and March 31,2020.

34. A) The Security except as detailed in Clause B, Clause C and Clause D below created under a security trust (presently with IL&FS

Trust Company Limited as trustee) shall rank pari-passu for multiple lenders without any preference or priority of one lender over the other.

i. For Term Loan Facility

a) 1^st Pari Passu Charge on all Fixed Assets (Movable and Immovable excluding assets financed by Saraswat Co-Opeative Bank Ltd. Wherein working capital lenders will have second pari passu charge

b) 2^nd Pari Passu Charge on current Assets

ii. For Working Capital (CITI bank, SVC bank, Saraswat Bank and Standard Chartered Bank)

a) 1^st Pari Passu Charge on the Current Assets and also on all the Fixed Assets (Movable and Immovable) of the Company (excluding assets financed by Saraswat Co.Operative Bank Ltd. Wherein working capital lenders will have second pari passu charge)

(Working Capital Limits Includes Packing Credit, Post Shipment Credit Buyers, Credit Cash Credit, Letter of Credit,Working Capital Demand Loan, etc)

B) Office Premises at Thane is exclusively Mortgaged / Hypothecated to Aditya Birla Finance Limited

C) Loan for Motor Vehicle are secured against respective Motor Vehicles for which Loan is obtained.

D) For Term Loan from Saraswat Bank: First Charge with Sarawat Bank on Movable Fixed Assets and Immovable Properties of the company and Second Pari Passu charge allocated for Multiple working capital lenders of the company.

E) Further All borrowings are secured by personal guarantees of the directors Mr. S. K. R. Bajaj Mr. Anil C. Jain.

35. In opinion of the Directors Current Assets Loans and advances have the value at which they are stated in the Balance Sheet if realized in the ordinary course of business. All the outstanding liabilities other than those stated under contingent liabilities have been provided for.

36. The balance of Sundry Debtors Creditors and Loans & Advances are subject to confirmations and reconciliation.

37. Since no specific intimation has been received from any of the suppliers regarding the status of their registration as Micro Small or Medium as defined under Micro Small and Medium Enterprises Department (MSMED) Act 2006 as at 31^st March 2021 disclosure relating to amounts unpaid as at the year end if any have not been furnished. However the Company has been regular in paying to the Vendors as per agreed terms and conditions and hence the management feels there are no requirements for any provision towards interest.

44. Contingent Liabilities and Commitments (to the extent not provided for):

Claim Against company not acknowledged as debts:

• High Court of Justice Business and Property Courts of England and Wales in a business dispute has passed the order against the Company to pay GBP 646883.39 to a Debtor which shall however be subject deduction of outstanding receivable from such Debtor of USD 513946.20. Further the Court has yet to pass the order quantifying the Interest payable on differential amount. The Company has estimated the net claim which could be payable to this Debtor at ?275.26 lakhs. (Plus Applicable interest as quantified).The Company is exploring the remedy against the order and its enforceability.

• Central Excise Custom Duty, Central Sales Tax, GVAT Liabilities and Income Tax Liabilities ?493.72 lakhs Plus Applicable Interest (Previous year ?457.84 lakhs). This represents the demands made by authorities which in opinion of company are not sustainable and appeals are pending with appropriate authority.

i. Remuneration includes payment to Mr. S.K.R. Bajaj ''48.00 lakhs (P.Y. ''48.00 lakhs) Mr. Anil C. Jain ''48.00 lakhs (PY ''46.00 lakhs) to Mr. Dhananjay S. Hatle ''19.52 lakhs (PY ''13.59 lakhs) to Ms. Namrata Bajaj ''10.15 lakhs (PY ''10.15 lakhs) to Mr. Rupesh H. Nikam ''18.18 lakhs (PY ''16.15 lakhs) to Pakshal C. Jain ''4.73 lakhs (PY '' NIL/-)

ii. Interest payment includes payment to Bansal Pharma Ltd ''2.14 lakhs (PY ''2.05 lakhs) to Bajaj Health and Nutritions Pvt Ltd ''3. 88 lakhs (''21.31 lakhs) to Mr. S. K. R. Bajaj '' NIL (PY ''4. 70 lakhs) and to Mr. Anil C. Jain '' NIL (PY ''0.76 lakhs).

iii. Sponsorship payment for education includes payment made to Ms. Gayatri Hatle ''1.22 lakhs (PY ''1.22 lakhs); to Mr. Siddhesh Hatle ''1.65 lakhs (PY ''1.70 lakhs); to Mr. Pakshal A. Jain '' NIL (PY ''3.15 lakhs) to Ms. Khushi Jain ''2.86 lakhs (PY ''2.92 lakhs).

iv. Purchase of assets includes purchase from Bajaj Sindhudurg Rice Mills Limited '' NIL (PY ''6.82 lakhs).

Note: Amount shown in brackets represents the amount of previous year.

Business Segment:

The Company has Disclosed Business Segment as the Primary Segment. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organizational structure and internal reporting system.

The Company''s Operations predominantly relate to manufacture of Bulk Drugs business. Other Business Segments Comprises Formulation of medicines and sell it to end user.

Segment Revenue:

Segment Revenue & Segment Results include the respective amounts identifiable to each of the Segments as also amounts allocated on reasonable basis.

47. Corporate Social Responsibility (CSR)

(a) CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the Company during the year is ''52.87 lakhs (Previous Year ''40.36 lakhs)

48. Impact of COVID-19

The spread of Covid-19 is having an unprecedented impact on people and economy. This has impacted our operations and results for the year ended March 31,2021 to some extent. The Company has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts of trade receivables, tangible assets, intangible assets and investments. In developing the assumptions relating to the possible future uncertainties in the economic conditions because of this pandemic. The Company, as at the date of approval of these financial statements has used internal and external sources of information. The impact assessment of COVID-19 is a continuing process given the uncertainities and the Company will continue to closely monitor the developments.

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Mar 31, 2018

1) A) The Security except as detailed in Clause B and Clause C below, created under a security trust (presently with IL&FS Trust Company Limited as trustee) shall rank pari-passu for multiple lenders, without any reference or priority of one lender over the other:

i. For Term Loan

First Pari Passu Charge on Movable Fixed Assets and immovable properties and Second Pari Passu charge on current assets.

ii. For Working Capital

First Pari Passu Charge on Current assets and Second Pari Passu Charge on movable fixed Assets and immovable properties. (Working Capital Limits Includes Packing Credit, Post Shipment Credit, Buyers Credit, Cash Credit, Letter of Credit)

B) The Land & Building and Plant & Machinery of manufacturing facilities situated at Panoli, and Intermediate unit at Tarapur are exclusively mortgaged / hypothecated with The Saraswat Co.Op. Bank Ltd for Term Loan and Bank Guarantee Facility.

C) Office Premises at Thane is exclusively Mortgaged / Hypothecated to Aditya Birla Finance Limited

D) Loan for Motor Vehicle are secured against respective Motor Vehicles for which Loan is obtained.

D) Further, All borrowings are, secured by personal guarantees of the directors Mr. S.K.R. Bajaj, Mr. Anil C Jain.

2) In opinion of the Directors Current Assets Loans and advances have the value at which they are stated in the Balance Sheet if realized in the ordinary course of business. All the outstanding liabilities other than those stated under contingent liabilities have been provided for.

3) The balance of Sundry Debtors, Creditors and Loans & Advances are subject to confirmations and reconciliation.

4) Since no specific intimation has been received from any of the suppliers regarding the status of their registration as Micro, Small, or Medium as defined under Micro, Small and Medium Enterprises Department( MSMED) Act, 2006 as at 31st March 2018, disclosure relating to amounts unpaid as at the year end, if any, have not been furnished. However, the Company has been regular in paying to the Vendors as per agreed terms and conditions and hence the management feels there are no requirements for any provision towards interest.

5) CONTINGENT LIABILITIES:

- Letter of credits issued by Banks US $ 17,74,660/- (Previous year US $ 11,34,455/-)

- Bank Guarantee issued by Bank amount of Rs.173.57 Lakhs (Previous Year Rs. 137.61 Lakhs) to MGVCL, MPCB, Customs etc.

- Estimated amount of Capital Commitment towards expansion of Manufacturing Unit at Baroda (Gujarat) Rs. 121.48 Lakhs ( P Y :Rs.8 Lakhs)

- Claim Against company not acknowledged as debts:

Central Excise, Custom Duty, Central Sales Tax & GVAT Liabilities Rs 649.44 Lakhs (Previous year Rs. 590.23 Lakhs). This represents the demands made by authorities which in opinion of company are not sustainable and hence are appealed against with appropriate authority. The details of claim against company not acknowledged as debts are as under:

Income and Expenditure:

I. Purchase includes purchase from Bajaj Health & Nutrition Pvt Ltd Rs. Nil ( P Y Rs 19,53,600/-).

II. Machinery sold to Bajaj Sindhudurg Rice Mills Limited Rs. Nil ( P Y Rs. 135714)

III. Rent Paid Includes paid Bansal Pharma Ltd Rs.12,000( P Y Rs. 12,000/-).

IV. Remuneration includes payment to S K R Bajaj Rs.48,00,000/-(P Y Rs. 48,00,000/-), Anil Jain Rs.36,00,000/- (P Y Rs.18,00,000/-), to Dhananjay S Hatle Rs.12,11,000/-(P Y Rs. 10,80,000/-), to Namrata Bajaj Rs. 9,87,500 /- (P Y Rs. 9,00,000/-), to Rupesh H Nikam Rs. 14,29,898/- (P Y Rs.12,95,076), to Babita Bajaj Rs.3,00,000 /- (P Y Rs. 3,00,000/-), and to Padma Jain Rs.2,70,000/- (P Y Rs. 2,65,000/-).

V. Interest payment includes payment to Bansal Pharma Ltd Rs. 4,00,522 /- P Y (Rs. 4,11,565/-) , to Bajaj Health and Nutritions Pvt Ltd Rs. 90,07,954 /- (P Y Rs. 75,12,969/-) , to SKR Bajaj: Rs. Nil (P Y Rs. 40,632/-) and to Anil Jain Rs. Nil (P Y Rs. 4,93,799/-).

VI. Sponsorship payment for education includes payment made to Ms. Gayatri Hatle Rs. 4,04,716 (P Y Rs. Nil); to Siddhesh Hatle Rs. 3,39,450/- ( P Y Rs. Nil); to Pakshal Jain Rs. 2,53,970/- ( P Y Rs. Nil).

- Business Segment:

The Company has Disclosed Business Segment as the Primary Segment. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organizational structure and internal reporting system.

The Company''s Operations predominantly relate to manufacture of Bulk Drugs business. Other Business Segments Comprises Formulation of medicines and sell it to end user.

- Segment Revenue :

Segment Revenue & Segment Results include the respective amounts identifiable to each of the segments as also amounts allocated on reasonable basis.

i. All revenue expenditure on research and development are changed to the profit and Loss Account. Fixed Assets used for research and development are capitalized.

ii. The Company has obtained approval for In-house R & D Facility from the Department of Scientific and Industrial Research (DSIR) vide letter No. TU/IV-RD/4031/2016 dated 17th August, 2016 for the purpose of section 35(2AB) of the Income Tax Act, 1961 valid till 31^st March 2019 subject to the condition underline therein.

iii. There under, the company has claimed a weighted deduction of 150% of the following expenditure incurred wholly and exclusively for the Research & Development Activity so approved.

6) EVENT OCCURING AFTER THE BALANCE SHEET DATE:

a) The CH Base unit of the company situated at Plant No. 09 at Baroda suffered accidental fire on 21^st April, 2018, where the company has estimated damage of Rs. 410 Lakhs, on account of repair and replacement of capital goods, stock of Raw Material, Wip of CH base products. The management however expect to recover the entire loss from the insurance claim.

b) The Board of Directors have recommended a Final Dividend of Rs. 1/- on every Equity Shares of Rs. 10 Each for financial year 2017-18, subject to approval of Shareholders.

7) Figures are rounded off to nearest value of Rupees.

8) Previous year''s figures have been regrouped or rearranged wherever necessary.

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Mar 31, 2016

1) A) The Security except as detailed in Clause B below, created under a security trust (presently with IL&FS Trust Company Limited as trustee) shall rank pari-passu for multiple lenders, without any preference or priority of one lender over the other, interest with:

i. First Charge on Movable Fixed Assets and immovable properties and second charge on current assets for term loan Facilities.

ii. First Charge on Current assets and Second Charge on movable fixed Assets and immovable properties for working capital facilities.

Further, the borrowings are, secured by personal guarantees of the directors Mr. S.K.R, Bajaj, Mr. Anil C Jam.

B) The Land & Building and Plant & Machinery of manufacturing facilities situated at Panoli Ankaleshwav and Intermediate unit at Tarapur are exclusively mortgaged / hypothecated with The Saraswat Co.Op. Bank Ltd.

2) In opinion of the Directors Current Assets Loans and advances have die value at which they are slated in the Balance Sheet if realized in the ordinary course of business. All the outstanding liabilities other than those stated under contingent liabilities have been provided for.

3) The balance of Sundry Debtors, Creditors and Loans & Advances are subject to confirmations and reconciliation.

4) Since no specific intimation has been received from any of the suppliers regarding the status of The registration as Micro, Small, or Medium as defined under Micro, Small and Medium Enterprises Department MSMED) Act, 2006 as at 31st March 2016, disclosure relating to amounts unpaid as at (lie year end, if any, have not been furnished. However, the Company has been regular in paying to the Vendors as per agreed terms and conditions and hence the management feels there are no requirements for any provision towards interest. .

5) CONTINGENT I T ABILITIES:

- Letter of credits issued by Banks US $ 9, 23,250/-(Previous year US $8, 18,625/-)

- Bank Guarantee issued by Bank amount of Rs.1, 00, 00,000/- (Previous Year Rs. 1, 00, 00,000/-) to MGVCL, MPCB, Customs etc.

- Estimated amount of Capital Commitment towards expansion of Manufacturing Unit at Baroda (Gujarat) Rs.0.34 Crores (P Y: Rs.0.88 Crores)

- Claim against company not acknowledged as debts:

Central Excise, Custom Duty, Central Sales Tax & GVAT Liabilities Rs. 6, 12,91,963/-(Previous yearRs.5,58,77,530/-). This represents the demands made by authorities which in opinion of company are not sustainable and hence are appealed against with appropriate authority. The details of claim against company not acknowledged as debts are as under:

6) RELATED PARTY DISCLOSURES:

The following transactions have been done with the related parties as defined under the AS 18 issued by the ICAI. Names of related parties with whom transactions have taken place during the year:

Key Management Persomiel-Category I	Mr. S.ICR.Bajaj-CMD Mr. Anil C.Jain-VCMD Mr. Dliananjay Iiatle-Director Miss.Namrata Bajaj- Director Mr, Rupesh Nikam- Director Mr. Gopal V Mehta .
Relative of key management personnel-Categoiy II	Babita Bajaj S.K.R.Bajaj HUF Padma Jain
Enterprises owned or significantly influenced by key management personnel or their relatives-Category III	Bajaj Health &NutritionsPvt Ltd Bansal Pharma Ltd
Enterprise owned or significantly influenced by gr oup of individuals or their relatives who have control or significant influence over the Firm-Category IV	Nil

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Mar 31, 2015

1. Term Loan from Banks secured by creation of security trust and personal guarantee as detailed in note no 24 except for Term loan for motor vehicle which is secured against hypothecation of respective vehicle for which loan is taken

2.Amount due to small scale Industries exceeding Rupees one lac each outstanding for more than 30 days are not determinable as such parties could not be indentified from the available records with the company.

3.Borrowings from banks and NBFC are secured by creation of security trust and personal guarantee of Directors as detailed in note no.24

4.Others Includes reshipment credit post shipment credit and buyers credit

A'') The Security except as detailed in Clause B below, created under a security trust presently with IL&FS Trust Company Limited as trustee) shall rank pan-passu for multiple lenders, without any preference or priority of one lender over the other, interest will .

i. First Charge on Movable Fixed Assets and immovable properties and second charge on current assets for term loan Facilities.

ii. First Charge on Current assets and Second Charge on movable fixed Assets and immovable properties for working capital facilities. ,

Further, the borrowings are, secured by personal guarantees of the directors Mr. S.K.R. Bajaj , Mr. Anil C Jain.

B) The Land & Building and Plant & Machinery of manufacturing facilities situated at Panola Ankaleshwar and Intermediate unit at Tarapur are exclusively mortgaged / hypothecated with The Saraswat Co.Op. Bank Ltd.

₅₎ opinion of the Directors Current Assets Loans and advances have the value at which they are stated in the balance sheet if realized in the ordinary course of business All the outstanding liabilities other than those stated under contingent liabilities have been provided for.

6) The balance of Sundry Debtors, Creditors and Loans & Advances are subject to confirmations and reconciliation.

7) Since no specific intimation has been received from any of the suppliers regarding the status of their register as Micro Small or Medium as defined under Micro small and Medium Enterprises Department (MSMED) Act,2006 as at 31^st March 2015 disclosure Has been regular in paying to the Vendors as per agreed terms and conditions and hence the management feels there are no requirements for any provision towards interest.

Notes Forming part of Financial Statements

8) CONTINGENT LIABILITIES

- Letter of credits issued by Banks US $8,18,625/- (Previous year US S 92,000/-)

. Letter of credits issued by Banks US $8,18, Year Rs. NIL) to MGVCL, MPCB Customs etc.

. Estimated amount of Capital Commitment towards expansion of Manufacturing Unit at Baroda (Gujarat) Rs.0.88 Crores (P Y :Rs.4.30 Crores)

. Claim Against company not acknowledged as debts

- Claim Against company not acknowledge Liabilities Rs. 5,58,77 530/- (Previous year Rs, 5,07,26,550/- This represents the demands made by authorities which in opinion of company are not sustainable and hence are appealed against with appropriate authority the details of claim against company not acknowledged as debts are as under

Income and Expenditure:

i. Purchase include purchase from Bajaj Health & Nutrition Pvt Ltd Rs. 39,27,200/-(Rs.4,60,08,976/-) & Bansal Pharma Ltd Rs. 45,86,400/- (Rs. Nil).

ii. Rent Paid Includes Rs. 8, 04,000/- (Rs. 8,04,000/-) paid to Bysj Health Bansal Pharma Ltd Rs.36,000/- (Rs. 36,000/-), to S K R Bajaj HOT Rs. 3 W.000/- (Rs.3,,60.008/), to SKR Bajaj Rs. 63,000/- (Rs. 63,000/-) and to Babita Bajaj Rs. 63,000/- (Rs. 63,000/-)

iii. Remuneration includes payment to S K R Bajaj Rs 24, 00 000/- (Rs. 24 00 000/-), Anil Jain Rs, 12,00,000/- (Rs,12,00,000/- Gopal Mehta Rs. 84,192/- (Rs. 2,60,995/-), to D IS H Rs 8 34 996/- (Rs.7,85,996/-). ^to Namrata Bajaj Rs. 6,00,000/- (Rs. 4,75 000/-), ^{to Rupesh s} . Nikam Rs.4,64,21 8/- (Rs. Nil), to Babita Bajaj Rs. 3,00,000/- (Rs. 3,00,000/-), and to Padma Jam Rs. 1,23,000/-(Rs. 1,23,000/-).

iv Interest payment include payment to Bansal Pharma Ltd Rs. 3,40,731/- (Rs. ^2,71,457/-) SrStion Pvt Ltd Rs. 90, 61,842/- (Rs. 85,86,00!/-), to SKR Bajaj: Rs.9,91,506/- (Rs. 10,22,004/-) and to Anil Jain Rs.2,34,298/- (Rs. 1,60,621/-).

Income and Expenditure: ¦

i. Purchase include purchase from Bajaj Health & Nutrition Pvt Ltd Rs. 39,27,200/, (Rs.4,60,08,976/- )&BansalPharcna Ltd Rs. 45,86,400/- (Rs. Nil) .

ii. Rent Paid Includes Rs. 8, 04,000/- (Rs. 8,04,000/-) paid to Bajaj Health and Nutrition Limited, to BansalPharma Ltd Rs.36,000/- (Rs. 36,000/-), to S K R Bajaj HUF Rs. 360,000/- (Rs.3,60,000/-), to SKR Bajaj Rs. 63,000/- (Rs. 63,000/-) and to Babita Bajaj Rs. 63,000/- (Rs. 63,000/-)

iii. Remuneration includes payment to S K R Bajaj Rs. 24, 00,000/- { Rs. 24,00,000/-), Anil Jain Rs. 12,00,000/- (Rs.12,00,000/-), Gopal Mehta Rs. 84,192/- (Rs. 2,60,995/-), to D S HatleRs. 8,34,996/- (Rs.7,85,996/-), to Namrata Bajaj Rs. 6,00,000/- (Rs. 4,75,000/-), to Rupesh H Nikam Rs.4,64,218/- (Rs. Nil), to Babita Bajaj Rs. 3,00,000/- (Rs. 3,00,000/-), and to Padma Jain Rs 1,23,000/- (Rs. 1,23,000/-).

iv. Interest payment include payment to BansalPhannaLtdRs. 3,40,731/- (Rs. 2,71,457/-) , to Bajaj Health and Nutrition Pvt Ltd Rs. 90, 61,842/- (Rs. 85,86,001/-) , to SKR Bajaj: Rs.9,91,506/- (Rs. 10,22,004/-) and to Anil Jain Rs.2,34,398/- (Rs. 1,60,621/-).

9) Figures are rounded off to nearest value of Rupees.

10) Previous year’s figures have been regrouped or rearranged wherever necessary.

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Mar 31, 2014

1) The Security created under a security trust (with HSBC Bank as trustee) shall rank pari-passu without any preference or priority of one lender over the other, interse with:

i. First Charge on Movable Fixed Assets and immovable properties and second charge on current assets for term loan Facilities.

ii. First Charge on Current assets and Second Charge on movable fixed Assets and immovable properties for working capital facilities.

Further, the borrowings are, secured by personal guarantees of the directors Mr. S.K.R. Bajaj , Mr. Anil C Jain.

2) In opinion of the Directors Current Assets Loans and advances have the value at which they are stated in the Balance Sheet if realized in the ordinary course of business. All the outstanding liabilities other than those stated under contingent liabilities have been provided for.

3) The balance of Sundry Debtors, Creditors and Loans & Advances are subject to confirmations and reconciliation.

4) Since no specific intimation has been received from any of the suppliers regarding the status of their registration as Micro, Small, or Medium as defined under Micro, Small and Medium Enterprises Department MSMED) Act, 2006 as at 31st March2014, disclosure relating to amounts unpaid as at the year end, if any, have not been furnished. However, the Company has been regular in paying to the Vendors as per agreed terms and conditions and hence the management feels there are no requirements for any provision towards interest.

5) CONTINGENT LIABILITIES:

- Letter of credits issued by Banks US $92,000/-(Previous year US $6,77,700/-)

- Estimated amount of Capital Commitment towards acquisition of Manufacturing Unit at Panoli (Gujarat) Rs. 4.30 Crores ( P Y : Nil)

- Claim Against company not acknowledged as debts:

Central Excise, Custom Duty, Dental Sales Tax & GVAT Liabilities Rs. 5,07,26,550/- (Previous year Rs. 8,22,02,991/-). This represents the demands made by authorities which in opinion of company are not sustainable and hence are appealed against with appropriate authority. The details of claim against company not acknowledged as debts are as under:

The following transactions have been done with the related parties as defined under the AS 18 issued by the ICAI. Names of related parties with whom transactions have taken place during the year.

Key Management Personnel-Category I Mr. S.K.R.Bajaj-CMD

Mr. Anil C.Jain-VCMD Mr. Gopal Mehta-Director Mr. Dhananjay Hatle-Director Miss.Namrata Bajaj- Director

Relative of key management personnel-Category Babita Bajaj

II S.K.R.Bajaj HUF

Padma Jain

Enterprises owned or significantly influenced by Bajaj Health &Nutritions Pvt Ltd key management personnel or their relatives- Bansal Pharma Ltd

Category III

Enterprise owned or significantly influenced by

group of individuals or their relatives who have

control or significant influence over the Firm-

Category IV

6) RELATED PARTY DISCLOSURES:

The said Loan includes amount of Rs. 5.24 Crores where the Company stands as a Co- Borrower with the Said Company.

Income and Expenditure:

i. Purchase include purchase from Bajaj Health & Nutrition Pvt Ltd Rs. 4, 60, 08,976/- .

ii. Rent Paid Includes Rs. 8, 04,000/- paid to Bajaj Health and Nutrition Limited, to Bansal Pharma Ltd Rs.36,000/-, to S K R Bajaj HUP Rs. 360,000/-, to SKR Bajaj Rs. 63,000/- and to Babita Bajaj Rs. 63,000/-

iii. Remuneration includes payment to S K R Bajaj Rs. 24, 00,000/-, Anil Jain Rs. 12,00,000, Gopal Mehta Rs. 2,60,995/-, to D S Hatle Rs. 7, 85,996/-, to Namrata Bajaj Rs. 4,75,000/-, to Babita Bajaj Rs. 3,00,000/-, and to Padma Jain Rs. 1, 23,000/-

iv. Interest payment include payment to Bansal Pharma Limited Rs. 2, 71,457/-, to Bajaj

Health and Nutrition Pvt Ltd Rs. 85, 86,001/-, to SKR Bajaj: Rs. 10, 22,004/- and to Anil Jain Rs. 160,621/-

Note: Amount shown in brackets represents the amount of previous year.

- Business Segment:

The Company has Disclosed Business Segment as the Primary Segment. Segments have been identified talcing into account the nature of the products, the differing risks and returns, the organizational structure and internal reporting system.

The Company''s Operations predominantly relate to manufacture of Bulk Drugs business. Other Business Segments Comprises Formulation of medicines and sale it to open Market.

Segment Revenue :

Segment Revenue & Segment Results include the respective amounts identifiable to each of the segments as also amounts allocated on reasonable basis.

7) Figures are rounded off to nearest value of Rupees.

8) Previous year''s figures have been regrouped or rearranged wherever necessary.

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Mar 31, 2013

1) Term Loans, Post Shipment Credits, Pre-shipment credits, Buyers credit and Cash Credits, Letter of Credit and working capital demand loan are secured by Security trust consisting of registered mortgage in respect of the company''s Immovable properties and hypothecation in case of movable properties such as plant and machinery, Fixture, vehicles, stock of raw materials, Semi-Finished and Finished goods work in process etc. and is further secured by personal guarantees of the directors Mr. S.K.R. Bajaj, Mr. Anil C Jain.

2) In opinion of the Directors Current Assets Loans and advances have the value at Which they are stated in the Balance Sheet if realized in the ordinary course of business. All the outstanding liabilities other than those stated under contingent liabilities have been provided for.

3) The balance of Sundry Debtors, Creditors and Loans & Advances are subject to confirmations and reconciliation.

4) Since no specific intimation has been received from any of the suppliers regarding the status of their registration as Micro, Small, or Medium as defined milder Micro, Small and Medium Enterprises Department MSMED) Act, 2006 . as at 31^s1 March 2013, disclosure relating to amounts Unpaid as at the year end, if any, have not been furnished. However, the Company has been regular in paying to the Vendors as per agreed terms and conditions and hence the management feels there is no requirements for any provision towards interest.

5) CONTINGENT LIABILITIES:

Letter of credits issued by Banks US$ 6,77,700/-(Previous year US $ 11,64,850/-) Claim Against company not acknowledged as debts:

Central Excise, Custom Duty, Central Sales Tax, GVAT & Income Tax Liability Rs. 8,22,02,991/- (Previous year Rs. 5,27,35,278/-). This represents the demands made by authorities which in opinion of company are not sustainable and hence are appealed against with appropriate authority. The details of claim against company not acknowledged as debts are as under:

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Mar 31, 2012

1. Term Loans From Banks are Secured against Mortgage of all immovable''s, hypothecation of all movable properties of the company & are guaranteed by 2 Directors In their individual capacity. Term Loan also includes Term Loan for Motor Vehicle which is Secured against Hypothecation of respective vehicle for which Loan is taken.

2. Working Capital loans from banks are Secured against Book debt, Stock, all immovable properties, hypothecation of all movables properties of the company and are guaranteed by directors, Promoters & corporate guarantee of its associates concern.

3. Term Loans, Post Shipment Credits, Pie-shipment credits, Buyers credit and Cash Credits are secured by security trust consisting of registered mortgage in respect of the company''s Immovable properties and hypothecation in case of movable properties such as plant and machinery, Fixture, vehicles, stock of raw materials, Semi-Finished and Finished goods work in process etc. and is further secured by personal guarantees of the directors Mr, S.K.R. Bajaj, Mr. Anil C Jain and corporate guarantee of Bajaj Health & Nutritions PvtLtd.

4. hi opinion of the Directors Current Assets Loans and advances have the value at which they are stated in the Balance Sheet if realized in the ordinary course of business. All die outstanding liabilities other than those stated under contingent liabilities have been provided for.

5. The balance of Sundry Debtors, Creditors and Loans & Advances are subject to confirmations and reconciliation.

6. The revised schedule VI notified under Companies Act, 1956 has become applicable to the company during the current year. The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary to confirm to revised schedule VI classification and are to be read in relation to the amounts and o flier disclosures relating to current year

8. Since no specific intimation has been received from any of the suppliers regarding the status of their registration as Micro, Small, or Medium as defined under Micro, Small and Medium Enterprises Department MSMED) Act, 2006 as at 31st March 2012, disclosure relating to amounts unpaid as at the year end, if any, have not been furnished. However, the Company has been regular in paying to the Vendors as per agreed terms and conditions and hence the management feels tiered is no requirements for any provision towards interest

9. Estimated anomic of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. NIL (Rs.1,52,57,988/-last year)

10. CONTINGENT LIABILITIES;

Letter of credits issued by Banks US $ 11,64,850/- (Previous year US $ 7,15,250/-)

Claim Against company not acknowledged as debts:

a) Central Excise, Custom Duty, Central Sales Tax, GVAT & Income Tax Liability: Rs. 5,27,35,278/-(Previous year Rs. 12,30,695/-). This represents the demands made bjr authorities which in opinion of company are not sustainable and hence are appealed against with appropriate authority.

11. RELATED PARTY DISCLOSURES :

The following transactions have been done with the related parties as defined under the AS 18 issued by the ICAI.

Names of related parties with whom transactions have taken place during the year. Key Management Personnel-Category I Mr. S.K.R.Bajaj-CMD

Mr. Anil CJain-VCMD Mr. Gopal Mehta-Director

Mr. Dhananjay Hatle-Director

Relative of key management personnel- Babita Bajaj Category II Namrata Bajaj

S.K.R.BajajHUF

Padrna Jain

Enterprises owned or significantly Bajaj Health & Nutritions Pvt Ltd influenced by key management personnel or BansalPharma Ltd their relatives-Category III

Enterprise owned or significantly influenced Nil by group of individuals or their relatives who have control or significant influence over the Firm-Category IV Chsrtere

- Business Segment:

The Company has Disclosed Business Segment as the Primary Segment. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organizational structure and internal reporting system.

The Company''s Operations predominantly relate to mantifacture of Bulk Drugs business. Other Business Segments Comprises Formulation of medicines and sale it to open Market.

- Segment Revenue:

Segment Revenue & Segment Results include the respective amounts identifiable to each of the segments as also amounts allocated on reasonable basis.

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Mar 31, 2011

NOTES TO ACCOUNTS.

1) Term Loans, Post Shipment Credits, Pre-shipment credits, Buyers credit and Cash Credits are secured by registered mortgage in respect of the company''s Land, Building, plant and machinery, Fixtures etc, and hypothecation of vehicles, sock of raw materials, Semi-Finished and Finished goods work in process etc. and is further secured by personal guarantees of the directors of Mr. S.K.R, Bajaj, Mr, Anil C Jain, and corporate guarantee of Bajaj Health & Nutritions Pvt.Ltd.

2) In opinion of the Directors Current Assets Loans and advances have the value at which they are stated in the Balance Sheet if realized in the ordinary course of business, All the outstanding liabilities other than those stated under contingent liabilities have been provided for.

3) The balance of Sundry Debtors, Creditors and Loans & Advances are subject to -confirmation,

4) The previous year figures are rearranged or regrouped wherever necessary.

5) I he company has initialed process of reviewing (he list of suppliers and identifying those suppliers who qualify under the definition under Micro, Small and Medium Enterprises as defined under Micro, Small and Medium '' Enterprises Department MSMED) Act, 2006 , Since no intimation has been received from the suppliers regarding their status under the said act as at 31*'' March 2011, disclosure relating to amounts unpaid as at the year end, if an}'', have not been furnished, in the opinion of the company the amount of provision required to he made as per the act may not have material impact on the financial statement of the company.

6) Managerial Remuneration;

Managerial Remuneration under section 198 of Companies Act,1956 paid or provided for during the year to Chairman & managing director, Joint CMD and other Executive directors.

7) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 1,52,57,988/-(Previous year - Rn.75,60,000/-)

8) CONTINGENT LI ABILITIES :

Letter of credits issued by Banks US $7/15,2,50/

(Previous year US $16,83,090,50/-) equivalent to Rs.3,24,30,687/-

Claim Against company not acknowledged as debts:

a) Income Tax & Sales Tax Liability: Rs. 12,30,695/ /-(Previous year Rs. 34,90,896/-) represents the demands made by authorities which in opinion of company are not sustainable and hence are appealed against with appropriate authority.

b) Customs Liability: The Company has received a show cause notice from the Customs authorities regarding the import / utilization of crude caffeine then valued at Rs.lll lacs by customs authorities pertaining to year 2003-04 & 2004-05, claiming that an amount of Rs.2.95 Crores along with the interest thereon is payable on account of alleged import / utilization by the company.

The company has filed Appropriate reply with authorities against the same contending that no amount is payable and the said proceedings are liable to be deleted,

c) There is no new addition to the contingent liability during the year. All the contingent liabilities are related lo earlier year.

9) RELATED PARTY DISCLOSURES:

The following transactions have been done with the related parties as defined under the AS 18 issued by the ICAI.

Names of related parties with whom transactions have taken place during the year.

- Business Segment:

The Company has Disclosed Business Segment as the Primary Segment. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organizational structure and internal reporting system.

The Company''s Operations predominantly relate to manufacture of Bulk Drugs business. Other Business Segments Comprises Formulation of medicines and sale it to open Market, Segment Revenue:

Segment Revenue & Segment Results include the respective amounts identifiable to each of the segments as also amounts allocated on reasonable basis, . •

10) I. REGISTERED CAPACITY AND INSTALLED CAPACITY:

In the opinion of Directors, the company does not require licensing for registered and installed capacity.

Notes :

11. Includes products processed by third parties.

12. Includes production for captive consumption of Bulk Drugs 72,731.44 kgs & out of that captive consumption for Ascorbic Acid 39,648.44 Kgs.

13. Excludes free samples issued.

14. The Pharmaceuticals business comprises of Manufacturing and Trading of Bulk Drugs and Formulations.