1. (i)The Secured Loans from Kotak Mahindra Bank with total credit limits of Rs.2402 lakhs (Fund Based: Rs.1842 lakhs & Non-Fund Based : Rs.560 lakhs) (Note Nos.12 and 14) are secured by the first and exclusive charge by way of equitable mortgage by deposit of Titles Deeds of the Company’s immovable properties of Land admeasuring Ac. 35-20 Guntas Sy.Nos.38, 39, 40 and 45, with Buildings thereon in situated at Aroor Village, Sadasivpet Mandal, Sangareddy District, Telangana State, hypothecation of stocks, receivables and other current assets, and also by the personal guarantees of promoter directors and mortgage of the personal immovable properties of the promoters, directors.

(ii) Secured Loans of Rs.213.18 lakhs from Reliance Capital are secured by the hypothecation of the equipment acquired out of the term loan given by them and also the personal guarantees of two of the promoter directors.

2. The total GST Input available on Raw Materials for the year amounting to Rs.1370.55 lakhs (previous CENVAT available on Raw Materials of Rs. 1014.89 lakhs) has been shown under the “Current Assets” in the Balance Sheet.

3. Investment:

Of the total investments of Rs.8.45 lakhs part of the same is represented by the fully paid Equity Shares of M/s.Patancheru Envirotech Limited made as contribution for utilizing their services of common Effluent Treatment Plant set up by the M/s. Patancheru Envirotech Ltd. to the tune of Rs.8.15 lakhs (Unquoted 81540 No. of equity shares of Rs.10/- each fully paid up-Market value as on 31.03.2017 & 31.03.2016 are not available and part of the investment is represented by shares of State Bank of Travancore(SBT) amounting to Rs.0.30 lakhs) [50 shares of Rs.10 each fully paid up and the same are valued at cost. Market value being Rs.607 per share (last traded price on 15-032017), pending receipt of shares of State Bank of India(SBI), post merger of SBT with SBI].

These investments are intended to be held for more than one year and are accordingly classified as non-current investments.

4. Other Cash and Cash Equivalents comprising of cash in hand of Rs.1.10 lakhs, Cash at Bank in Current Accounts of Rs.35.95 lakhs, Fixed Deposits (held under lien with the banks in the form of Fixed Deposits) amounting to Rs 89.93 lakhs with maturity of more than 12 months as on 31-032018.

5. Contingent Liabilities not provided for:

1) Letters of Credit established by the Kotak Mahindra Bank on behalf of the Company Rs. 527.60 lakhs (Previous year Rs. 454.51 lakhs).

2) Bank Guarantees issued by the Kotak Mahindra Bank on behalf of the company Rs.6.50 lakhs. (Previous year- Rs.5.00 lakhs)

6. Fire Accident and Insurance Claim thereon:

During the year the company received the claim amount of Rs.87.05 Lakhs against the fire accidents occurred in prior years, the loss of which was already recorded under the Statement of Profit and Loss in earlier years. Hence, the claim amounts received during the year were entirely taken to the statement of profit and loss.

7. Litigations:

The company simultaneously applied to the Environmental Engineer, TS Pollution Control Board (TSPCB) for the renewal of Consent for Operations (CFO) for a period from FY 2017-18 to FY 202122 and paid the necessary fees for the same. The grant of approval of CFO in this regard is approved from the TSPCB. The necessary fees for CFO was already paid by the company till 3103-2022.

The Company’s management does not reasonably expect that these legal actions, when ultimately concluded and determined, will have a material and adverse effect on the company’s results or operations or financial condition.

8. Amount due to small scale industrial undertaking during the year ended 31.03.2018 could not be identified as specific information regarding SSI status is not forthcoming from parties.

7. The company deals in Bulk Drugs, APIs, and thus is treated as dealing in only one segment and hence the information pertaining to the Segmental Reporting is not applicable to the Company.

8. Paise have been rounded off to the nearest rupee.

9. Figures have been re-grouped/re-arranged wherever necessary.

10. The balances outstanding on account of sundry debtors/sundry creditors/advances are subject to confirmation from the respective parties.