ಹೋಮ್  »  ಕಂಪನಿ  »  Aarti Drugs Ltd  »  ಕೋಟ್ಸ್  »  ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ
ಕಂಪನಿಯ ಮೊದಲ ಕೆಲ ಅಕ್ಷರಗಳನ್ನು ದಾಖಲಿಸಿ ಕ್ಲಿಕ್ ಮಾಡಿ

Aarti Drugs Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

Mar 31, 2023

RIGHT ATTACHED TO EQUITY SHARES

The Company has only one class of equity shares with voting rights having a par value of ''10/- per share . The Company declares and pays dividends in Indian Rupees. Any Interim dividend paid is recognised on the approval by the Board of Directors.

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 shareholders.

NOTES ON ISSUED, SUBSCRIBED AND PAID UP EQUITY SHARE CAPITAL

(a) During the Financial 2021-22 , the Company has completed buyback of 6,00,000/- Equity Shares of face value ''10/-each at a price of ''1000/- per share settlement of buyback bids was completed on May 19,2021. The number of shares post buyback stands reduced to 9,26,00,000 of ''10/- each. Accordingly the paid up capital also stands reduced to ?9,260 lakhs.

(b) During the Financial 2020-21 ,the Company has allotted 6,99,00,000 Bonus Equity Shares of ''10/- each fully paid up on October 05, 2020 in the proportion of 3 Equity Shares for every 1 Equity Share held by the Equity Shareholders of the Company as on the record date of October 01, 2020

(c) During the Financial 2019-20 , the Company has completed buyback of 2,82,100/- equity shaes of face value ''10/-each at a price of ''900/- per share on May 27, 2019.the number of shares post buyback stands reduced to 2,33,00,000 of ''10/- each. Accordingly the paid up capital also stands reduced to ''2,330 lakhs.

28*| SEGMENT REPORTING ( IND-AS 108)

Ind AS 108 establishes standards for the way that company reports information about operating segment and related disclosure about products and geographical areas.

I. BASIS FOR SEGMENTATION

The operations of the Company are limited to one segment i.e Manufacturing of API (Active Pharmaceutical Ingredients).The products being sold under this segment are of similar nature and comprises of pharmaceutical intermediary products only. 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.

The financial instruments are categorised into two levels based on the inputs used to arrive at fair value measurements are described below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; and

Level 2: Inputs other than the quoted prices included within Level 1 that are observed for the asset or liability, either directly or indirectly.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. ~| CAPITAL MANAGEMENT:

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders. The primary objective of the Company''s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. 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

33| FINANCIAL RISK MANAGEMENT:

The Company''s principal financial liabilities comprise trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company is exposed to credit risk, market risk and liquidity risk. The Company''s senior management oversees the management of these risks.

Company has exposure to following risks arising from financial instruments:

• Credit risk

• Liquidity risk

• Market risk

I. Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and mutual funds, foreign exchange transactions and other financial instruments.

Credit risk management.

To manage the credit risk, the Company follows an adequate credit control policy and also has an external credit insurance cover with ECGC policy & HDFC ERGO General Insurance Company Limited .The requirement of assessing the impairment loss on trade receivables does not arise, since the collectability risk is mitigated. Bank balances are held with banks and majority of other security deposits are placed majorly with government/statutory agencies.

II. Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including bilateral loans, debt, and overdraft from banks at an optimised cost. Working capital requirements are adequately addressed by internally generated funds. Trade receivables are kept within manageable levels.

Liquidity Risk Management

The Company''s corporate treasury team from finance department is responsible for liquidity and funding as well as settlement. Management monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

III. Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices- will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments.

The Company''s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates.

Foreign currency risk

The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities in exports and imports which is majorly in US dollars. Hence, to combat the foreign currency exposure, the Company follows a policy wherein the net sales are hedged By forward Contract.

(ai) Above term loans are secured by pari-passu first charge by way of mortgage of immovable properties and hypothecation of moveable fixed assets, both present and future situated at MIDC Boisar, viz Plot No N-198, G-60, E21, E22, E-1, K-40, K-41 E120, E9/3, E9/4, W-60(B), W61(B), W62(A),W71(B), W72(B)W73(B), T-150 and MIDC Turbhe Plot No D-277 & D-278 in Maharashtra and at GIDC, Sarigam, Bhilad- Gujarat Viz. Plot No 2902, 2904, 211,213, 2601, 2602, 2603.

(aii) Term Loan from HDFC Bank Limited and SVC Co-op Bank Limited is also secured by way of pari-passu second charge on current assets of the Company both present and future.

b. Loans from Scheduled Banks Payable on Demand of '' 28,292.14 lakhs (Previous Year '' 33,935.03 lakhs) are secured by pari-passu first charge by way of hypothecation of Company''s raw materials stock, stock-in-process, finished goods, packing materials, stores & spares, book debts, and all other current assets including goods in transit governed by documents of title and also pari-passu second charge by way of mortgage of immovable properties and hypothecation of movable fixed assets. both present and future situated at MIDC Boisar, Maharashtra viz. Plot No N-198, G-60, E21,E22,E-1, K-40, K-41 E120 ,E9/3,E9/4, W-60(B), W61(B),W62(A),W71(B),W72(B)W73(B), T-150 and MIDC Turbhe Plot No. D-277 & D-278.GIDC, Bhilad, Sarigam- Gujarat viz. Plot No. 2902, 2904, 211,213, 2601,2602,2603.

35| CAPITAL MANAGEMENT:

The Company has foreign exchange exposure because of its trade related (export/import) fund related function. The Company uses forward contracts, Options and Swaps to hedge against its foreign exchange exposures relating to underlying transactions. The Company does not enter into any derivatives instruments for trading or speculation purposes. During the year ended March 31,2023, the Company had hedge in aggregate an amount of '' 36,652.06/-lakhs (previous year '' 23,597.02) out of its annual trade related operations (export & import) aggregating to '' 1,78,003.16/-lakhs (previous year '' 1,62,749.21/-lakhs) after considering natural hedge.

36 Sales/Income from Operation include export benefits amounting to '' 384.82/- lakhs (previous year '' 1184.09 /- lakhs)

1CT EMPLOYEE BENEFITS: a) Defined Benefit Plan

The employee''s gratuity fund scheme managed by Life Insurance of India and Aditya Birla Sun Life Insurance Company Limited is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

c. The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

d. The Company do not have any transactions with companies struck off.

e. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

f. The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

i directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries), or

ii provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

h. The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

i. 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

ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

j. The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.

43 Figures of the previous year have been regrouped and rearranged wherever necessary.


Mar 31, 2018

Note No. 10.1 :Rights attached to equity shares

The Company has only one class of equity shares with voting rights having a par value of '' 10/- per share. The Company declares and pays dividends in Indian Rupees. Any interim dividend paid is recognized on the approval by Board of Directors.

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 numbers of equity shares held by shareholders.

Note No. 10.3 : Notes on Issued, Subscribed and Paid up Equity Share Capital

(a) During the Fiancial Year 2017-18 , the Company has completed buyback of 2,75,000/- equity shaes of face value Rs, 10/- each at a price of Rs, 875/- per share on 14th March, 2018. The number of shares post buyback stands reduced to 2,35,82,100 of Rs, 10/- each. Accordingly the paid up capital also stands reduced to Rs, 2,358.21 lakhs.

(b) During the Fiancial Year 2016-17, the Company has completed buyback of 3,60,000/- equity shaes of face value Rs, 10/- each at a price of Rs, 750/- per share on 26th December, 2016. The number of shares post buyback stands reduced to 2,38,57,100 of Rs, 10/- each. Accordingly the paid up capital also stands reduced to Rs, 2,385.71 lakhs.

(c) During the Fiancial Year 2014-15, 12,108,550 Equity shares of Rs, 10/- have been allotted as fully paid bonus shares held on record date 25th March, 2015.

1. There are no Micro and Small Enterprise, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March 2018. This information required to be disclosed under the Micro, Small and Medium Enterprise Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

*Capital expenditure includes expenditure on development of new product of Rs, 44.42/- Lakhs #Capital expenditure includes expenditure on development of new product of Rs, 972.99/- Lakhs

2. Segment Reporting (Ind- AS 108)

Ind AS 108 establishes standards for the way that Company reports information about operating segment and related disclosure about products and geographical areas.

I. BASIS FOR SEGMENTATION

The operations of the Company are limited to one segment i.e. Manufacturing of API (Active Pharmaceutical Ingredients). The products being sold under this segment are of similar nature and comprises of pharmaceutical intermediary products only. 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.

*Post the applicability of GST with effect from 1st July, 2017, Sales are disclosed net of GST. Accordingly, the Gross Sales figures for the year ended 31stMarch, 2018 are not comparable with the sales figures depicted for the previous years.

3 RELATED PARTY DISCLOSURE UNDER (Ind-AS 24) A. Name and Relationship of the Related Parties:

(1) Subsidiary - Wholly owned Pinnacle Life Science Private Ltd.

(2) Individuals owning directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise and relatives of such individual.

- Individuals

Mr. Chandrakant V. Gogri Chairman Emeritus

Mr. Rajendra V. Gogri Non-Executive Director

- Relatives of Individuals

Mrs. Jaya C. Gogri Mr. Mirik R Gogri

Mrs. Dhanvanti V.Gogri Mr. Renil R. Gogri

Mrs. Aarti R. Gogri Mrs. Hetal Gogri Gala

(3) Key Management personnel along with their relatives have significant influence.

- Key Management Personel

Mr. Prakash M. Patil Chairman, Managing Director & Chief Executive Officer

Mr. Rashesh C. Gogri Managing Director

Mr. Harshit M. Savla Jt. Managing Director

Mr. Harit. P. Shah Whole-time Director

Mr. Uday M. Patil Whole-time Director

Mr. Adhish P. Patil Chief Financial Officer

Mr. Vibhav S. Ranade Company Secretary & Compliance Officer

- Relatives of Key Management Personel

Mrs. Priti P. Patil Mrs. Seema H. Savla

Mr. Arun M. Patil Ms. Bhoomi H. Savla

Dr. Vikas M. Patil Mr. Vishwa H. Savla

Mr. Sameer P. Shah Mrs. Jayashree H. Shah

Mrs. Arti T. Sankhe Mrs. Manisha R. Gogri

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; and

Level 2: Inputs other than the quoted prices included within Level 1 that are observed for the asset or liability, either directly or indirectly.

4 CAPITAL MANAGEMENT:

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders. The primary objective of the Company’s capital management is to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Net Debt is calculated as loans and borrowings less cash & marketable securities

5 FINANCIAL RISK MANAGEMENT:

The Company’s principal financial liabilities comprise trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company is exposed to credit risk, market risk and liquidity risk. The Company’s senior management oversees the management of these risks.

Company has exposure to following risks arising from financial instruments:

- Credit risk

- Liquidity risk

- Market risk

I. Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and mutual funds, foreign exchange transactions and other financial instruments.

Credit risk management.

To manage the credit risk, the Company follows a adequate credit control policy and also has an external credit insurance cover with ECGC policy .The requirement of assessing the impairment loss on trade receivables does not arise, since the collectability risk is mitigated. Bank balances are held with banks and majority of other security deposits are placed majorly with government/statutory agencies.

II. Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company’s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including bilateral loans, debt, and overdraft from banks at an optimized cost. Working capital requirements are adequately addressed by internally generated funds. Trade receivables are kept within manageable levels.

Liquidity Risk Management

The Company’s corporate treasury department is responsible for liquidity and funding as well as settlement. Management monitors the Company’s net liquidity position through rolling forecasts on the basis of expected cash flows.

III. Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices-will affect the company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. Financial instruments affected by market risk include loans and borrowings, deposits, investments and derivative financial instruments.

The Company’s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates.

Foreign currency risk

The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities in exports and imports which is majorly in US dollars. Hence, to combat the foreign currency exposure, the Company follows a policy wherein the net sales are hedged By forward Contract.

Note:

(i) Above term loan are secured by pari-passu first charge by way of mortgage of immovable properties and hypothecation of moveable fixed assets, both present and future situated at MIDC Boisar, viz Plot No N-198, G-60, E21,E22,E-1, K-40, K-41 E120, E9/3, E9/4, W-60(B), W61(B), W62(A), W71(B), W72(B), W73(B) & T-150 and MIDC Turbhe Plot No D-277 & D-278 in Maharashtra and at GIDC, Sarigam, Bhilad - Gujarat Viz. Plot No 2902, 2904, 211, 213, 2601, 2602, 2603, 2520, 2522 and 3325.

(ii) Loan from Kotak Mahindra bank and The Shamrao Vithal Co-op Bank Ltd is also secured by second charge on current assets of the Company both present and future.

b. Loans from Scheduled Banks Payable on Demand of ''. 17829.64 lakhs ( Previous Year Rs, 13,079.42) are secured by hypothecation of Company’s raw materials stock, stock-in-process, finished goods, packing materials, stores & spares, book debts, and all other current assets including goods in transit governed by documents of title and also pari-passu second charge by way of mortgage of immovable properties and hypothecation of movable fixed assets. both present and future situated at MIDC Boisar, Maharashtra viz. Plot No N-198, G-60, E21, E22, E-1, K-40, K-41, E-120, E9/3, E9/4, W-60(B), W61(B), W62(A), W71(B), W72(B), W73(B) & T-150 and MIDC Turbhe Plot No. D-277 & D-278.GIDC, Bhilad, Sarigam- Gujarat viz. Plot No. 2902, 2904, 211, 213, 2601, 2602, 2603, 2520, 2522 and 3325.

6. The Company has foreign exchange exposure because of its trade related (export/import) fund related function. The Company uses forward contracts, Options and Swaps to hedge against its foreign exchange exposures relating to underlying transactions. The Company does not enter into any derivatives instruments for trading or speculation purposes. During the year ended 31.03.2018, the company had hedge in aggregate an amount of Rs, 39,531.06/-Lakhs (previous year Rs, 34,800.84/- Lakhs) out of its annual trade related operations (export& import) aggregating to Rs, 81,729.69/-Lakhs (previous year 81,033.65/- Lakhs) after considering natural hedge.

7. Sales / Income from Operations include export benefits amounting to Rs, 1,409.43/- Lakhs (As at 31st March, 2017 Rs, 2,263.86/- Lakhs)

b) Leave Encashment :

Leave Encashment liability amounting to Rs, 145.56 Lakhs previous year (Rs, 146.94 Lakhs) has been provided in the Accounts.

8. As per Sec 135 of the Companies Act 2013, details of amount to be spent on Corporate Social Responsibility are as below. Gross amount to be spent on the CSR activity during the year is Rs, 199.63 Lakhs. During the year company spent Rs, 199.83 Lakhs (previous year 185.07 Lakhs).

9. Disclosure for operating leases under Ind AS 17 - “Leases”:

During the year Company had entered in to lease transaction covering Lease term of 5 years. The Lease Transaction is covered as Operating Lease as per the Ind AS 17 and all lease payments are recognized as an expense in profit and loss account on straight line basis. Disclosures as per Ind AS 17, Lease Accounting are as below.

*The previous GAAP figures have been reclassified to confirm to Ind AS presentation requirements for the purpose of this note

Notes to First time adoption of Ind AS

a Property, Plant and Equipment:

The Company has elected to continue with the carrying values under previous GAAP for all the items of property, plant and equipment as deemed cost at the date of the transition. The same election has been made in respect of intangible assets.

b Investment:

Investment in Subsidiary: The Company has opted to carry the investment in subsidiaries at the previous GAAP carrying amount at the transition date. Other Equity Instruments: All other equity instruments are classified as FVTOCI.

c Retained Earnings:

Retained earnings as at 1st April, 2016 has been adjusted consequent to Ind AS transition adjustments.

d Deferred Tax:

“Deferred tax under Ind AS has been recognized for temporary differences between tax base and the book base of the relevant assets and liabilities. Under IGAAP the deferred tax was accounted based on timing differences impacting the profit or loss for the period. Deferred Tax on aforesaid Ind AS adjustments has been created for both periods - as on 31st March, 2017 and 1st April, 2016.”

e Revenue from Operations & Excise Duty:

“Under previous GAAP, revenue from sale of goods was presented net of excise duty on sales. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. Excise duty is presented in the Statement of Profit and Loss as part of other expenses. This has resulted in an increase in the revenue from operations and expenses for the year ended 31st March, 2017. The total comprehensive income for the year ended and equity as at 31st March, 2017 has remained unchanged.”

f Re-measurements of Post Employment Benefit Obligation:

“Under Ind AS, re-measurements 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 recognized in other comprehensive income instead of profit and loss. Under the previous GAAP, these re-measurements were forming part of the Statement of Profit and Loss for the year.”

10. Figures of the previous year have been regrouped and rearranged wherever necessary.

11. Accounting Judgments, Estimates and Assumptions:

The preparation of the Company’s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, asset and liabilities, and the disclosure of contingent

Liabilities, at the end of the reporting period However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the assets or liabilities in future periods.


Mar 31, 2016

1. Contingent Liabilities:

a. In respect of bank guarantees issued and L/C opened by the Company''s bankers Rs. 3,785.03/-Lakhs (As at 31st March, 2015 Rs. 4584.73 Lakhs)

b. Demand in respect of additional income tax disputed in appeal Rs. 351.44/-Lakhs (As at 31st March, 2015 Rs. 1,133.91/ Lakhs), sales tax demand Rs. 15.18/- Lakhs (As at 31st March, 2015 Rs. Nil) and demand in respect of additional Excise custom duty, fine & penalty in appeal Rs. 38.88/-Lakhs (As at 31st March, 2015 Rs. 78.51/- Lakhs)

c. Liability for duty on raw material imported under advance license benefit scheme against which export obligation remained to be fulfilled Rs. 259.45/-Lakhs (As at 31st March, 2015 Rs. 189.86/- Lakhs)

d. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances Rs. 303.49/- Lakhs. (As at 31st March, 2015 Rs. 1,212.67/- Lakhs)

e. The company has given corporate guarantee for borrowing facilities of Rs. 1,854/- Lakhs from The Saraswat Co-Op. Bank Limited for its only subsidiary Pinnacle Life Science Private Ltd.

Note:

1) Above term loan are secured by pari-passu first charge by way of mortgage of immovable properties and hypothecation of moveable fixed assets, both present and future situated at MIDC Boisar, viz Plot No. N-198, G-60, E21& E22, E-1, K-40, K-41, E120, E9/3 & E9/4, W-60(B), W61(B), W62(A), W71(B), W72(B), W73(B) and MIDC Turbhe Plot No. D-277 & D-278 in Maharashtra and at GIDC, Sarigam, Bhilad- Gujarat Viz. Plot No. 2902, 2904 & Plot No. 211, 213 & Plot No. 2601, 2602, 2603. The working directors of the company have personally guaranteed corporate loan of Rs. 1,516.40 Lakhs from State Bank of India.

2) Loan from Kotak Mahindra Bank, Standard Chartered Bank, The Shamrao Vithal Co-op Bank Ltd. is also secured by second charge on current assets of the company both present and future.

b. Loans from Scheduled Banks Payable on Demand of Rs. 15,004.37 lakhs (Previous Year Rs. 15,919.07) are secured by hypothecation of Company''s raw materials stock, stock-in-process, finished goods, packing materials, stores & spares, book debts, and all other current assets including goods in transit governed by documents of title and also pari-passu second charge by way of mortgage of immovable properties and hypothecation of movable fixed assets. Both present and future situated at MIDC Boisar, viz. Plot No. N-198, G-60, E21& E22, E-1, K-40, K-41, E120, E9/3, & E9/4, W-60(B), W61(B), W62(A), W71(B), W72(B), W73(B) and at Turbhe Plot No. D-277 & D-278 in Maharashtra and in GIDC , Bhilad, Sarigam- Gujarat viz. Plot No. 2902, 2904, & 211, 213 & 2601, 2602, 2603.

2. The Company has foreign exchange exposure because of its trade related (export/import) fund related function. The company uses forward contracts, Options and Swaps to hedge against its foreign exchange exposures relating to underlying transactions. The Company does not enter into any derivatives instruments for trading or speculation purposes. During the year ended 31.03.2016, the company had hedge in aggregate an amount of Rs. 28,728.66/- Lakhs (previous year Rs. 12,374.71/- Lakhs) out of its annual trade related operations (export & import) aggregating to Rs. 80,179.21/- Lakhs (previous year Rs. 79,433.77/- Lakhs) after considering natural hedge. The company had hedge its outstanding foreign currency long term borrowing Rs. Nil (Previous year Rs. 732.20/- Lakhs).

3. There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at 31st March, 2016. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. In the opinion of the Board, the Current Assets and Loans and Advances have a value on realization at least equal to the amounts at which they are stated in the Balance Sheet.

5. Segment-wise Disclosure as per Accounting Standard: 17.

I. BUSINESS SEGMENTS AS PRIMARY SEGMENTS

The Company is considered to be a single segment Company engaged in pharmaceuticals business, hence the disclosure requirement as per AS-17 ''Business Segments as Primary Segment'' is not attracted.

Note:

Segmental capital employed:

Fixed assets used in the Company''s business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. The Company believes that currently it is not practicable to provide segment disclosures relating to total assets and liabilities.

6. Related party transactions:

Related party transactions disclosure as required by Accounting Standard - 18. ''Related Party Disclosures'' issued by The Institute of Chartered Accountants of India are given below:

A. Name and Relationship of the Related Parties:

3(a) Subsidiary - Wholly owned

Pinnacle Life Science Private Ltd.

3(c) Individuals owning directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of such individual.

7.As per Sec 135 of the Companies Act 2013, details of amount to be spent on Corporate Social Responsibility are as below. Gross amount to be spent on the CSR activity during the year is Rs. 167.14 Lakhs. During the year Company has spent Rs. 175.38 Lakhs.

8. Figures of the previous year have been regrouped and rearranged wherever necessary.


Mar 31, 2014

1. Contingent Liabilities:

a. In respect of bank guarantees issued and L/C opened by the Company''s bankers Rs. 4,268.40 lakhs (as at 31st March, 2013 Rs. 2,689.84 lakhs)

b. Demand in respect of additional income tax disputed in appeal Rs. 784.66 lakhs (as at 31st March, 2013 Rs. 485.26 lakhs).

c. Demand/Rebate in respect of Excise duty in case of Ammonium Sulphate of Rs. 102.90 Lakhs (as at 31st March, 2013 Rs. 102.90 lakhs). The hon''ble high Court of Mumbai has decided the appeal in favour of the Company in February 2010 on the basis of its earlier judgment in a similar case. however, as per information available with the Company, the Department of Central Excise has filed an appeal in that precedent case in the Supreme Court, hence the Company has continued to disclose this matter. And Demand in respect of Excise duty of Niacin of Rs. 78.51 Lakhs (as at 31st March, 2013 Rs. 78.51 Lakhs) case is pending with CESTAT.

d. Liability for duty on raw material imported under advance licence benefit scheme against which export obligation remained to be fulfilled Rs. 155.53 lakhs (as at 31st March, 2013 Rs. 163.98 lakhs).

e. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 212.13 lakhs (as at 31st March, 2013 Rs. 731.39 lakhs).

Note:

1) Above term loan are secured by pari-pasu first charge by way of mortgage of immovable properties and hypothication of moveable fixed assets, both present and future situated at MIDC Boisar, viz Plot No. N-198, G-60, E21& E22, K-40, K-41 E120, E9/3, & E9/4, and MIDC Turbhe Plot No. D-277 & D-278 in Maharashtra and at GIDC, Sarigam, Bhilad – Gujarat viz. Plot No. 2902, 2904 & Plot No. 211, 213. The working directors of the Company have personally guaranteed Corporate Loan of Rs. 3,329.00 Lakhs from State Bank of India.

2) Kotak Mahindra Bank loan is also secured by second charge on current assets of the Company both present and future.

b. Loans from Scheduled Banks Rs. 17,186.80 lakhs are secured by hypothecation of Company''s raw materials stock, stock- in-process, finished goods, packing materials, stores & spares, book debts, and all other current assets including goods in transit governed by documents of title and also pari-passu second charge by way of mortgage of immovable properties and hypothecation of movable fixed assets, both present and future situated at MIDC Boisar, Maharashtra viz. Plot No. N-198, G-60, E-21 & 22, K-40 & K-41, E-120 and E-9/3 & E-9/4, and at Turbhe Plot No. D-277 & D-278. GIDC, Bhilad, Sarigam – Gujarat viz. Plot No. 2902, 2904, & 211, 213.

c. Short term borrowing include Loans & advances from directors, relatives & corporates amounting of Rs. 1,800.83 Lakhs which is accepted as deposits in F.Y 2012-2013 for term of 3 years and will matured in F.Y. 2015-2016. As per Section 74 of Companies Act, 2013, deposits as on 31st March, 2014 will have to be repaid as and when such payments are due or within one year from such commencement of this section (i.e. 1st April, 2014) whichever is earlier. hence the same is classified as short term borrowings.

2. The Company has foreign exchange exposure because of its trade related (export/import) fund related function. The Company uses forward contracts, Options and Swaps to hedge against its foreign exchange exposures relating to underlying transactions. The Company does not enter into any derivatives instruments for trading or speculation purposes. During the year ended 31.03.2014, the Company had hedge in aggregate an amount of Rs. 10,021.24 Lakhs (previous year Rs. 6,570.92 Lakhs) out of its annual trade related operations (export & import) aggregating to Rs. 69,234.75 Lakhs (previous year Rs. 56,639.48 Lakhs) after considering natural hedge. The Company had hedge its outstanding foreign currency long term borrowing Rs. 2,424.10 Lakhs (previous year Rs. 4,114.60 Lakhs).

3. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2014. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. In the opinion of the Board, the Current Assets and Loans and Advances have a value on realisation at least equal to the amounts at which they are stated in the Balance Sheet.

5. Segment-wise Disclosure as per Accounting Standard: 17. I. BUSINESS SEGMENTS AS PRIMARY SEGMENTS

The Company is considered to be a single segment Company engaged in pharmaceuticals business, hence the disclosure requirement as per AS-17 ''Business Segments as Primary Segment'' is not attracted.

6. related party transactions:

Related party transactions disclosure as required by Accounting Standard – 18. ''Related Party Disclosures'' issued by The Institute of Chartered Accountants of India are given below:

A. Name and relationship of the related Parties:

3(b) Associates

huanggang Yinhe Aarti Pharmaceutical Co. Ltd.

3(c) Individuals owning directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of such individual.

3(e) Enterprise/firms over which controlling individuals have significant influence.

- Aarti Industries Ltd.

- Anushakti holdings Ltd.

- Rupal Drugs LLP

- Anushakti Chemical & Drugs Ltd.

- Gogri & Sons Investments Pvt. Ltd.

- Alchemie Gases & Chemicals Pvt. Ltd.

- Alchemie Leasing & Financing Pvt. Ltd.

- Alchemie Pharma chem Pvt. Ltd.

Note : Sr. 3(b),3(c),3(d),3(e) refer to the relevant Para''s of AS 18.

7. Employee Benefits:

a) Defined Benefit Plan

The employee''s gratuity fund scheme managed by Life Insurance of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

b) Leave Encashment :

Leave Encashment liability amounting to Rs. 95.35 lakhs (previous year Rs. 97.00 lakhs) has been provided in the Accounts.

8. Additional information pursuant to the provisions of paragraphs 3, 4CD, 4D and part II of Schedule VI of the Companies Act, 1956 (Figures in bracket relate to 31st March, 2013).

a. Licensed capacity, installed capacity and production (as certified by the Management and not verified by the Auditors, it being a technical matter.)

9. Figures of the previous year have been regrouped and rearranged wherever necessary.


Mar 31, 2013

1.1 Fire incident occurred on 22.03.2013 at one of the Production block of the manufacturing unit located at Plot No. N - 198 Tarapur manufacturing MNI, an intermediate which is further processed to manufacture two APIs. Loss / damage caused to stock and fixed assets due to fire incident has been covered under insurance and accounted for appropriately.

1.2 Contingent Liabilities:

a. In respect of bank guarantees issued and L/C opened by the Company''s bankers Rs. 2689.84 lakhs (As at 31-March-2012 Rs.2257.87 lakhs)

b. Demand in respect of additional income tax disputed in appeal Rs. 485.26 lakhs (As at 31-March 2012 Rs. 250.64 lakhs).

c. Demand /Rebate in respect of Excise duty in case of Ammonium Sulphate of Rs.102.90 Lakhs (as at 31st March 2012 Rs.1 02.90 lakhs). The Hon''ble High Court of Mumbai has decided the appeal in favour of the Company in February 2010 on the basis of its earlier judgment in a similar case. However, as per information available with the Company, the Department of Central Excise has filed an appeal in that precedent case in the Supreme Court, hence the company has continued to disclose this matter.

d. Liability for duty on raw material imported under advance licence benefit scheme against which export obligation remained to be fulfilled Rs.163.98 lakhs (As at 31-March-2012 Rs.55.38 lakhs).

e. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 731.39 lakhs (As at 31-March-2012 Rs.412.72 lakhs).

Note:

1) Above term loan are secured by pari-pasu first charge by way of mortgage of immovable properties and hypothication of moveable fixed assets, both present and future situated at MIDC Boisar, viz Plot No. N-198, G-60, E21-22, K-40, K-41 E120, E9/3 & E9/4, and MIDC Turbhe Plot No. D-277 & D-278 in Maharashtra and at GIDC, Sarigam, Bhilad-Gujarat Viz. Plot No. 2902, 2904.

2) Kotak Mahindra bank loan is also secured by second charge on current assets of the company both present and future.

b. Loans from Scheduled Banks Rs. 1,346,968,836 are secured by hypothecation of Company''s raw materials stock, stock-in- process, finished goods, packing materials, stores & spares, book debts, and all other current assets including goods in transit governed by documents of title and also pari-passu second charge by way of mortgage of immovable properties and hypothecation of movable fixed assets, both present and future situated at MIDC Boisar, Maharashtra viz. Plot No. N-198, G-60, E-21 & 22, K-40 & K-41, E-120 and E-9/3 & E-9/4, W-60(B) 61(B) 62(B) 71(B) 72(B). GIDC, Bhilad, Sarigam-Gujrat viz. Plot No. 2902, 2904 and at Turbhe Plot No. D-277 & D-278. The working Directors of the Company have personally guaranteed these loans.

1.3 There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at 31st March, 201 3. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

1.4 In the opinion of the Board, the Current Assets and Loans and Advances have a value on realisation at least equal to the amounts at which they are stated in the Balance Sheet.

Note:

Segmental capital employed:

Fixed assets used in the Company''s business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. The Company believes that currently it is not practicable to provide segment disclosures relating to total assets and liabilities.

1.5 Related party transactions:

Related party transactions disclosure as required by Accounting Standard - 18. ''Related Party Disclosures'' issued by The Institute of Chartered Accountants of India are given below:

A. Name and Relationship of the Related Parties:

3(b) Associates

Huanggang Yinhe Aarti Pharmaceutical Co. Ltd.

3(c) Individuals owning directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of such individual.

1. Individuals

3(e) Enterprise/firms over which controlling individuals have significant influence.

- Aarti Industries Ltd.

- Anushakti Holdings Ltd.

- Rupal Drugs LLP

- Anushakti Chemical & Drugs Ltd.

- Gogri & Sons Investments Pvt. Ltd.

- Alchemie Gases & Chemicals Pvt. Ltd.

- Alchemie Leasing & Financing Pvt. Ltd.

Note : Sr. 3(b),3(c),3(d),3(e) refer to the relevant Para''s of AS 18.

1.6 Figures of the previous year have been regrouped and rearranged wherever necessary.


Mar 31, 2012

PART - A

The Board of Directors of the Company had approved Financial Statements for the year ended 31st March, 2012, at its meeting held on 25th May, 2012 without considering the effect of the proposed amalgamation of Suyash Laboratories Ltd (Amalgamating company) with the Aarti Drugs Ltd (Amalgamated company), pending approval of the scheme by the Hon'ble High Court of Mumbai . The said Financial Statements were approved mainly for compliance of the Listing Agreements of the Bombay Stock Exchange and National Stock Exchange.

Pursuant to the approval of the scheme of amalgamation by the Hon'ble High Court of Mumbai on 11th May, 2012, the amalgamation became effective with effect from 1st April, 2011, fresh Financial Statements as at 31st March, 2012 have been drawn up as per the decision taken by the Board of Directors of the Company.

1.1 Principles of Amalgamation & Disclosures:

a. In terms of the Scheme approved by the Hon'ble High Court, the entire business of Suyash Laboratories Ltd., stands transferred to and vested in the Company with effect from April 01, 2011, as a going concern.

b. As Suyash Laboratories Ltd. was a wholly owned subsidiary of the Company, no consideration was payable pursuant to amalgamation of Suyash Laboratories Ltd. with the Company.

c. The amalgamation of the financial statements of the Aarti Drugs Ltd. and Suyash Laboratories Ltd. is done on line by line basis by adding together like items of assets, liabilities, income and expenses. All intra group transactions, unrealized inter company profits and balances have been eliminated in the course of amalgamation.

d. The financial statements of Aarti Drugs Ltd. and Suyash Laboratories Ltd. have been amalgamated using uniform accounting policies for like transactions and other events in similar circumstances.

e. Amalgamation is carried out as per Accounting Standard 14, issued by the Institute of Chartered Accounts of India.

f. The difference, being the excess of the book value of the investment of the Company in the equity shares of Suyash Laboratories Ltd over the net assets of Suyash Laboratories Ltd. transferred to the Company has been adjusted in Reserves & Surplus of the Company.

g. Pending completion of the relevant formalities of transfer of certain assets and liabilities acquired pursuant to the scheme, such assets and liabilities remain in the name of the Amalgamating Company.

h. The merged company will continue to carry on the business of manufacturers, producers, processors, buyers, sellers, importers, exporters and/or otherwise dealers in pharmaceuticals, drugs, medicines, medicinal preparations, tabulating formulations, injections, alkalies, acids, chemicals and allied products including fine chemicals, perfumes, flavors, cosmetics and other pharmaceutical products as Aarti Drugs Limited.

1.2 Previous year's figures are of Aarti Drugs Ltd. stand alone and hence are not comparable with the current year.

1.3 Figures of previous year have been rearranged or regrouped wherever necessary.

1.4 On 27th February, 2012 fire occurred in Suyash Laboratories Ltd., loss on account of fire of Stock and fixed assets is debited to statement of Profit and Loss Rs. 1.16 crores.

1.5 Contingent Liabilities :

a. In respect of bank guarantees issued and L/C opened by the Company's bankers Rs. 2257.87 lakhs (As at 31st March, 2011 Rs. 1512.17 lakhs)

b. Demand in respect of additional income tax disputed in appeal Rs. 250.64 lakhs. (As at 31st March, 2011 Rs. 34.95 lakhs)

c. Demand /Rebate in respect of Excise duty in case of Ammonium Sulphate of Rs. 102.90 Lakhs (as at 31st March, 2011 Rs. 102.90 lakhs). The Hon'ble High Court of Mumbai has decided the appeal in favour of the Company in February 2010 on the basis of its earlier judgement in a similar case. However, as per information available with the Company, the Department of Central Excise has filed an appeal in that precedent case in the Supreme Court, hence the company has continued to disclose this matter.

d. Liability for duty on raw material imported under advance licence benefit scheme against which export obligation remained to be fulfilled Rs. 55.38 lakhs (As at 31st March, 2011 Rs. 34.63 lakhs)

e. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 412.72 lakhs. (As at 31st March, 2011 Rs. 697.02 lakhs)

1.6 Securities for loans taken from Banks:

a. Balances in respect of outstanding term loan from The Industrial Development Bank of India Rs. 1083.33 lakhs (As at 31st March, 2011 Rs. 2055.56 lakhs), of which Rs. 750 repayable up to F.Y. end 2012-13 and balance Rs. 333.33 lakhs up to F.Y. end 2013-14,Out of the above the loan sanctioned by IDBI on 25th March, 2008 for Rs. 3000 lakhs also secured by second charge on the current assets of the company both present and future as a collateral security. The Export Import Bank of India Rs. 2847.62 lakhs (As at 31st March, 2011 Rs. 1663.87 lakhs), of which Rs. 1047.62 lakhs repayable up to F.Y. end 2014-15 and balance Rs. 1800 up to F.Y. end 2016-17 Standard Chartered Bank Rs. 3483.20 lakhs (As at 31st March, 2011 Rs. 4123.00 lakhs), of which Rs. 1820 lakhs repayable upto 2014-15 and balance Rs. 1663.20 is upto F.Y. end 2015-16. DBS Bank Ltd Rs. 1820.00 lakhs (As at 31st March, 2011 Rs. 1820.00 lakhs), will be repayable up to F.Y. end 2015-16, are secured by pari-passu first charge by way of mortgage of immovable properties and hypothecation of moveable fixed assets, both present and future situated at MIDC Boisar, Maharashtra viz. Plot No. N-198, G-60, E-21 & 22, K-40 & K-41, E-120 and E-9/3 & E-9/4, at GIDC, Bhilad, Sarigam, Gujarat viz. Plot No. 2902 & 2904 and at Turbhe Plot No. D-277 & D-278.

b. Loans from Scheduled Banks Rs. 9540.47 lakhs are secured by hypothecation of Company's raw materials stock, stock-in- process, finished goods, packing materials, stores & spares, book debts, and all other current assets including goods in transit governed by documents of title and also pari-passu second charge by way of mortgage of immovable properties and hypothecation of moveable fixed assets. both present and future situated at MIDC Boisar, Maharashtra viz. Plot No. N-198, G-60, E-21 & 22, K-40 & K-41, E-120 and E-9/3 & E-9/4, GIDC , Bhilad, Sarigam- Gujarat viz. Plot No. 2902, 2904 and at Turbhe Plot No. D-277 & D-278. The working Directors of the Company have personally guaranteed these loans

c. Loan from IDBI Bank as Working Capital Lender to amalgamating company Rs. 930.74 lakhs is secured by way of Exclusive First Charge by way of hypothecation of raw material, stock in process, finish goods, packing material, stores & spares, book debts and all also second charge by way of hypothecation of moveable fixed assets, both present and future situated at MIDC Boisar, Maharashtra viz W-60(B) 61(B) 62(B) 71(B) 72(B).

1.7 There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at 31st March, 2012. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

1.8 In the opinion of the Board, the Current Assets and Loans and Advances have a value on realisation at least equal to the amounts at which they are stated in the Balance Sheet.

1.9 Segment-wise Disclosure as per Accounting Standard: 17.

I. BUSINESS SEGMENTS AS PRIMARY SEGMENTS

The Company is considered to be a single segment Company engaged in pharmaceuticals business, hence the disclosure requirement as per AS-17 'Business Segments as Primary Segment' is not attracted.

Segmental capital employed:

Fixed assets used in the Company's business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. The Company believes that currently it is not practicable to provide segment disclosures relating to total assets and liabilities.

1.10 Related party transactions:

Related party disclosure as required by Accounting Standard - 18. 'Related Party Disclosures' issued by The Institute of Chartered Accountants of India are given below :

A Name and Relationship of the Related Parties :

3(b) Associates

Huanggang Yinhe Aarti Pharmaceutical Co. Ltd.

3(e) Enterprise/firms over which controlling individuals have significant influence.

- Aarti Industries Ltd.

- Anushakti Holdings Ltd. (formerly known as Anushakti Chemical & Drugs Ltd.)

- Rupal Drugs LLP (formerly known as Rupal Drugs Ltd.)

- Anushakti Chemical & Drugs Ltd. (formerly known as Aarti Healthcare Ltd.) Note : Sr. 3(b),3(c),3(d),3(e) refer to the relevant paras of AS-18.

1.11 Sales and other sales income include export benefits amounting to Rs. 23,57,98,005/- (As at 31st March, 2011 Rs.18,13,12,308/-)

1.12. Employee Benefits:

Defined Benefit Plan

The employee's gratuity fund scheme managed by Life Insurance of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.


Mar 31, 2011

1. CONTINGENT LIABILITIES :

a) In respect of bank guarantees issued and L/C opened by the Company's bankers Rs.1512.57 lakhs (As at 31st March, 2010 Rs 1208.45 lakhs).

b) Demand in respect of additional income tax disputed in appeal Rs.34.95 lakhs (As at 31st March, 2010 Rs. 36.04 lakhs) refund effect in respect of appeals decided in favour of Company aggregating to Rs.37.62 lakhs are pending.

c) Demand /Rebate in respect of Excise duty in case of Ammonium Sulphate of Rs.102.90 Lakhs (as at 31st March, 2010 Rs.102.90 lakhs). The Hon'ble High Court of Mumbai has decided the appeal in favour of the Company in February 2010 on the basis of its earlier judgement in a similar case.

However, as per information available with the Company, the Department of Central Excise has filed an appeal in that precedent case in the Supreme Court, hence the company has continued to disclose this matter.

d) Liability for duty on raw material imported under advance licence benefit scheme against which export obligation remained to be fulfilled Rs.34.63 lakhs (As at 31st March, 2010 Rs.45.43 lakhs).

e) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs 697.02 lakhs (As at 31st March, 2010 Rs.16.21 lakhs).

2. SECURITIES FOR LOANS TAKEN FROM BANKS:

a) Balances in respect of outstanding term loan from The Industrial Development Bank of India Rs. 2055.56 lakhs (As at 31st March, 2010 Rs.3027.78 lakhs), The Export Import Bank of India Rs.1663.87 lakhs (As at 31st March, 2010 Rs 2515.41 lakhs), Standard Chartered Bank Rs.4123.00 lakhs (As at 31st March, 2010 Rs. 2275.00 lakhs), DBS Bank Ltd Rs.1820.00 lakhs (As at 31st March, 2010 NIL), are secured by pari-passu first charge by way of mortgage of immovable properties and hypothecation of moveable fixed assets, both present and future situated at Tarapur viz. Plot No. N-198, G-60, E-21 & 22, K-40 & K-41, E-120 and E-9/3 & E-9/4, at Sarigam viz. Plot No. 2902 & 2904 and at Turbhe Plot No. D-277 & D-278. Out of the above the working Directors of the Company have personally guaranteed loans sanctioned by EXIM Bank on 21st June, 2006 for Rs.2000 lakhs the balance in respect of these loan are Rs.235.29 lakhs (As at 31st March, 2010 Rs. 705.88 lakhs) out of the above the loan sanctioned by IDBI Bank on 25th March, 2008 for Rs.3000 lakhs also secured by second charge on the current assets of the Company both present & future alongwith existing term tender as a collateral security.

b) Loans from Scheduled Banks Rs.9555.74 lakhs (As at 31st March, 2010 Rs. 6047.94 lakhs) are secured by hypothecation of Company's raw materials stock, stock-in-process, finished goods, packing materials, stores & spares, book debts, foreign documentary bills and all other current assets including goods in transit governed by documents of title and also pari-passu second charge by way of mortgage of immovable properties and hypothecation of moveable fixed assets. both present and future situated at Tarapur viz. Plot No. N-198, G-60, E-21 & 22, K-40 & K-41, E-120 and E-9/3 & E-9/4, at Sarigam viz. Plot No. 2902 & 2904 and at Turbhe Plot No. D-277 & D-278. The working Directors of the Company have personally guaranteed these loans.

3. There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at 31st March, 2011. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. In the opinion of the Board, the Current Assets and Loans and Advances have a value on realisation at least equal to the amounts at which they are stated in the Balance Sheet.

5. SEGMENT-WISE DISCLOSURE AS PER ACCOUNTING STANDARD: 17.

I. Business Segments as Primary Segments

The Company is considered to be a single segment Company engaged in pharmaceuticals business, hence the disclosure requirement as per AS-17 'Business Segments as Primary Segment' is not attracted.

Notes:

Segmental capital employed:

Fixed assets used in the Company's business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. The Company believes that currently it is not practicable to provide segment disclosures relating to total assets and liabilities.

6. RELATED PARTY TRANSACTIONS:

Related party disclosure as required by Accounting Standard – 18. ‘ Related Party Disclosures' issued By The Institute of Chartered Accountants of India are given below :

A Name and Relationship of the Related Parties :

3(a) Subsidiary

Suyash Laboratories Ltd.

3(b) Associates

Huanggang Yinhe Aarti Pharmaceutical Co. Ltd.

3(c) Individuals owning directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of such individual.

1. Individuals

Mr. Chandrakant V. Gogri Mr. Rajendra V. Gogri

2. Relatives of Individuals

Mrs.Jaya C. Gogri Mr.Rashesh C. Gogri

Mrs.Dhanvanti V. Gogri Mrs.Aarti R. Gogri

Mirik R. Gogri Mr.Renil R. Gogri

Mrs. Hetal Gogri Gala Mrs. Indira M. Dedhia

3(d) Key Management personnel alongwith their relatives have significant influence.

1. Key Management Personnel

Mr. Prakash M. Patil Mr. Harit. P. Shah

Mr. Harshit M. Savla Mr. Uday M. Patil

2. Relatives of Key Management Personnel Mrs. Priti P. Patil Mrs. Seema H. Savla

Mr. Arun M. Patil Ms. Bhoomi H. Savla

Dr. Vikas M. Patil Vishwa H. Savla

Mr. Adhish Patil Mrs. Jayashree H. Shah

Mrs. Aarti T. Sankhe Mr. Pragji M. Shah

Mrs. Kalika A. Mishra Mrs. Keserben P. Shah

Mr. Sameer P. Shah

3(e) Enterprise/firms over which controlling individuals have significant influence.

1. Aarti Industries Ltd.

2. Anushakti Chemical & Drugs Ltd.

3. Rupal Drugs Ltd

4. Aarti Healthcare Ltd

Note : Sr. 3(a),3(b),3(c),3(d),3(e) refer to the relevant paras of AS 18.

C Persons/Companies stated in para 7A form part of the "Group" as applicable for the purpose of SEBI (Substantial Acquisition of Shares & Takeover) Regulations, 1997 as amended upto date.

7. Sales and other sales income include export benefits amounting to Rs. 18,13,12,308/- (As at 31st March 2010 Rs.11,19,02,774/-)

8. FOREIGN EXCHANGE FLUCTUATION

Foreign exchange gain/(loss) included in Profit & Loss Account (Rs.3.91 lacs) [previous year (Rs.128.32 lacs)]

9. EMPLOYEE BENEFITS:

Defined Benefit Plan

The employee's gratuity fund scheme managed by Life Insurance of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

b. Reconciliation of opening and closing balances fair value of plan assets

The estimate of rate of escalation in salary considered in Actuarial valuation, take into account inflation, seniority,promotion, other relevant factors' including supply and Demand in the employment market. The above information is certified by the actuary.

Leave Encashment :

Leave Encashment liability amounting to Rs.73,65,845/- previous year (Rs.63,03,770/-) has been provided in the Accounts

10. Additional information pursuant to the provisions of paragraphs 3, 4CD, 4D and part II of Schedule VI of the Companies Act, 1956 (Figures in bracket relate to 31st March, 2010)

11. Figures of the previous year have been regrouped and rearranged wherever necessary.


Mar 31, 2010

1. Contingent Liabilities :

a) In respect of bank guarantees issued and L/C opened by the Companys bankers Rs. 1208.45 lakhs (As at 31st March 2009 Rs 772.31 lakhs).

b) Demand in respect of additional income tax disputed in appeal Rs.36.04 lakhs (As at 31st March 2009 Rs. 573.39 lakhs) refund effect in respect of appeals decided in favour of Company aggregating to Rs.98.32 lakhs are pending.

c) The company has given Corporate Guarantee for Term loan & Working Capital of Rs.NIL lakhs (As at 31st March 2009 Rs.1600 Lakhs) in respect of Suyash Laboratories Ltd .

d) Demand /Rebate in respect of Excise duty in case of Ammonium Sulphate of Rs.102.90 Lakhs (as at 31st March 2009 Rs.102.90 lakhs). The Honble High Court of Mumbai has decided the appeal in favour of the Company in February 2010 on the basis of its earlier judgement in a similar case.

However, as per information available with the Company, the Department of Central Excise has filed an appeal in that precedent case in the Supreme Court, hence the company has continued to disclose this matter.

e) Liability for duty on raw material imported under advance licence benefit scheme against which export obligation remained to be fulfilled Rs.45.43 lakhs (As at 31st March 2009 Rs.4.97 lakhs).

f) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs 16.21 lakhs (As at 31st March 2009 Rs.37.12 lakhs).

2. Securities for loans taken from Banks:

a) Balances in respect of outstanding term loan from The Industrial Development Bank of India Rs. 3027.78 lakhs (As at 31st March 2009 Rs.4027.78 lakhs), The Export Import Bank of India Rs.2515.41 lakhs (As at 31st March 2009 Rs 3176.47 lakhs), Standard Chartered Bank Rs.2275 lakhs (As at 31s March 2009 Rs. NIL), are secured by pari-passu first charge by way of mortgage of immovable properties and hypothecation of moveable fixed assets, both present and future at Tarapur & Sarigam units. Out of the above the working Directors of the Company have personally guaranteed loans sanctioned by EXIM Bank on 21st June 2006 for Rs.2000 lakhs and IDBI Bank on 19th May 2004 for Rs. 500 lakhs the balance in respect of these loans are Rs.705.88 lakhs ( As at 31st March 2009 Rs. 1204.25 ) out of the above the loan sanctioned by IDBI Bank on 25lh March 2008 for Rs.3000 lakhs also secured by second charge on the current assets of the Company both present & future alongwith existing term tender as a collateral security.

b) Loans from Scheduled Banks Rs.6047.94 lakhs (As at 31st March 2009 Rs. 8070.95 lakhs) are secured by hypothecation of Companys raw materials stock, stock-in-process, finished goods, packing materials, stores & spares, book debts, foreign documentary bills and all other current assets including goods in transit governed by documents of title and also pari-passu second charge by way of mortgage of immovable properties and hypothecation of moveable fixed assets. The working Directors of the Company have personally guaranteed these loans.

3. There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at 31st March, 2010. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. In the opinion of the Board, the Current Assets and Loans and Advances have a value on realisation at least equal to the amounts at which they are stated in the Balance Sheet.

5. Segment-wise Disclosure as per Accounting Standard: 17.

I. BUSINESS SEGMENTS AS PRIMARY SEGMENTS

The Company is considered to be a single segment Company engaged in pharmaceuticals business, hence the disclosure requirement as per AS-17 Business Segments as Primary Segment is not attracted.

Notes:

a. Segmental capital employed:

Fixed assets used in the Companys business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. The Company believes that currently it is not practicable to provide segment disclosures relating to total assets and liabilities.

6. Related party transactions:

Related party disclosure as required by Accounting Standard - 18. Related Party Disclosures issued By The Institute of Chartered Accountants of India are given below :

A Name and Relationship of the Related Parties :

3(a) Subsidiary

Suyash Laboratories Ltd.

3(b) Associates & Joint Ventures

Huanggang Yinhe Aarti Pharmaceutical Co.Ltd.

3(c) Individuals owning directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of such individual.

1. Individuals

Mr. Chandrakant V. Gogri Mr. Rajendra V. Gogri

2. Relatives of Individuals

Mrs.Jaya C. Gogri Mr.Rashesh C. Gogri

Mrs.Dhanvanti V. Gogri Mrs.Aarti R. Gogri

Mirik R. Gogri Mr.Renil R. Gogri

Mrs. Hetal Gogri Gala Mrs. Indira M. Dedhia

3(d) Key Management personel alongwith their relatives have significant influence.

1. Key Management Personel

Mr. Prakash M. Patil Mr. Harit. P. Shah

Mr. Harshit M. Savla Mr. Uday M. Patil

1. Relatives of Key Management Personel

Mrs. Priti P. Patil Mrs. Seema H. Savla

Mr. Arun M. Patil Ms. Bhoomi S. Savla

Dr. Vikas M. Patil Vishwa H. Savla

Mr. Adhish P. Patil Mrs. Jayashree H. Shah

Mrs. Arati T. Sankhe Mr. Pragji M. Shah

Mrs. Kalika A. Mishra Mrs. Kesarben P. Shah

Mr. Sameer P. Shah

3(e) Enterprise/firms over which controlling individuals have significant influence.

1. Aarti Industries Ltd.

2. Aarti Healthcare Ltd.

3. Rupal Drugs Ltd.

Note : Sr. 3(a),3(b),3(c),3(d),3(e) refer to the relevant paras of AS 18.

c) The timing of the accrual and accounting of Directors Commission has been changed from the date of the approval of the financial statements for the year by the shareholders to the balance sheet date of the concerned financial year. The directors commission of Rs. 92,43,764/- for the year ended March 31, 2010 has been provided in the financial statements for the year ended on that date. These financial statements have also been charged with the directors commission of Rs.47,99,477/- for the year ended March 31, 2009, approved in the Annua) General Meeting held on August 1, 2009. Due to this, the Net Profit for the year and the Reserves are stated lower, and the Current Liabilities and Provisions higher, by Rs.92,43,764/-.

7. Foreign exchange fluctuation

Foreign exchange gain/(loss) included in Profit & Loss Account Rs.128.32 lakhs (previous year Rs.939.29 lakhs)

8. Employee Benefits:

Defined Benefit Plan

The employees gratuity fund scheme managed by Life Insurance of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

9. The company has received money through the conversion of 4,00,000 warrants issued on preferential basis into equity shares of Rs.2,10,40,000 during the year, and the money has been utilized for the purposes as stated in the "Objects of the issue" i.e." to augment the long term funds to meet on going capital expenditure and long term working capital requirements

10. Figures of the previous year have been regrouped and rearranged wherever necessary.

ತಾಜಾ ಸುದ್ದಿ ತಕ್ಷಣ ಪಡೆಯಿರಿ
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X