SIGNIFICANT ACCOUNTING POLICIES

(I) General : The Accounts are brpared on the historical cost basis and on the accounting principle of going concern. All expenses and incomes to the extent considered payable and receivable respectively unless stated otherwise, have been accounted for on mercantile basis. Accounting Policies not specifically referred to otherwise are consistent and in accordance with generally accepted accounting principles. The value of stock of samples is taken as nil.

(ii) Fixed Assets : The gross block of fixed assets are stated at historical cost which includes duties and taxes after deducting the amount of EXCISE DUTY/CENVAT, except in the case of Plant at Hardwar the same is taken at the historical cost of the assets as CENVAT credit is not available since being in Tax free zone.

(iii) Debrciation: Debrciation is provided on straight line method at the rates and manners specified in schedule II of the Companies Act, 2013 on fixed assets used forthe purpose of business.

(iv) Foreign Exchange Transactions: Transactions in foreign currencies are recorded at the rate of exchange in force at the date of transaction. Receivables and Liabilities (considered good), in foreign currency at the year end, are converted at the rate of exchange brvailing at the end of financial year. Export sales are accounted for at the time of dispatch of the material from the factory for export.

(v) Sales: Sales are inclusive of Excise Duty and are net of Trade discount & Returns.

(vi) Export Benefits: Export benefits (Duty Drawback & F.M.S.) are provided on accrual basis on satisfaction of condition relevant to the same.

(vii) Capital Work in Progress: It includes advances to suppliers of building materials, plant & machineries and other capital assets & will be allocated to fixed assets in year in which such assets will be ready for utilisation.

(viii) The closing stock as on 31st March, 2015 is as taken, valued and certified by the management.

- Raw Material, Packing Material and Finished Goods are valued at cost or net realisable value whichever is lower.

- Work in Progress are valued at estimated cost

- Stores and Spares are valued at cost. Closing stock of finished goods does not include excise duty.

(ix) The Company has provided Employees Benefits as per the Accounting Standard-15 issued by the Institute of Chartered Accountants of India. Provision for Gratuity and Leave Encashment have been made in the books of accounts on the basis of actuarial valuation using the Project Unit Credit Method.

(x) Company has made provision for deferred tax effect on the difference of debrciation between the amount, as per Income tax rules and profit & loss account for the year and accumulated retirement benefit provided for during the year.

(xi) In terms of requirements of the Accounting Standards-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the amount recoverable against Fixed Assets has been estimated for the period end by the management based on their brsent value of estimated future cash flows expected to arise from the continuing use of such assets. The recoverable amount so assessed was found to be adequate to cover the carrying amount of the assets, therefore no provision for impairment in value thereof has been considered necessary, by the management.

NOTE '2':

The Company has one segment of activity namely "Pharmaceuticals".

NOTE '324':

Misc. Expenditure includes Rs.4,99,378/- as contribution of medicines for Social Welfare to Charitable Institution.

NOTE '4':

Money received against share warrants includes Rs.15,45,555/- on account of pending allotment of shares on conversion of warrants.

NOTE '5':

The Company is partner in Panache Lifecare LLP having 33.33332% share and share of loss of Rs.3,06,800.41 has been provided for in the books on the basis of provisional Financial Statements as on 31.03.2015 and the difference if any shall be adjusted in the books on the finalization of said Financial statements.

NOTE '6':

In view of the requirements of Schedule II of the Companies Act 2013 ("Act"), debrciation for the year has been provided based on the lives brscribed under the schedule II. Further in view of transitional provision of the Schedule II, a sum of Rs. 47,82,693.02 has been recognized in the opening balance of the retained earnings of those assets whose useful life was nil as on 31st March 2014 as per the provision of Schedule II.

NOTE '7':

The Company has during the year paid total managerial remuneration of Rs.94,14,022/- (excluding retirement benefits of Rs.6,76,800 and commission of Rs. 24,186/-). Pursuant to Section 197 read with schedule V of the Companies Act, 2013 the Company can pay maximum Rs.84,00,000/- as managerial remuneration. However as per the agreement for managerial remuneration with the managing Director dated 13.08.2013 he is entitled for the amount paid but in view of the provisions of Section 197 and schedule V the approval of Central Government is required which is pending disposal. In case it is not approved the excess amount shall be recovered from the managing Director and shown accordingly in the books of accounts.

NOTE '8':

Related party disclosure as required byAS-18: Related Party Disclosures' notified by the Companies (Accounting Standard) Rules, 2006 are given below

NOTE '9:

Previous Year's figures have been regrouped or recast wherever considered necessary.

As per our attached Report of Even Date

For & on behalf of the Board of Directors

For Ashok Sharma & Associates

Chartered Accountants

Sd/- Amit Kumar

Partner

Membership No.: 500805 Sd/-

Kiran

Company Secretary

Rajesh Kumar Gupta  

Chief Financial Officer

Bal Kishan Gupta  

Managing Director

Ashutosh Gupta

Whole Time Director

Place : New Delhi

Date: 30.05.2015