iv Terms / Rights attached to Equity Shares :

The Company has only one class of shares referred to as Equity Shares having a par value of Rs. 10/-. Each holder of Equity Shares is entitled to one vote per share.

The Company declares and pays dividends in Indian rupees.The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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.

There is no change in Promotors shreholdings during FY 2023-24

As per the records of the Company, including its register of shareholders/members and other declaration received from shareholders, regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

Note 20:The Company has no overdue balance payable to Micro and Small Enterprises as at 31^st March 2024. This information is required to be disclose under Micro, Small and Medium Enterprises Act, 2006 (MSMED Act) and has been determined to the extent such parties have been identified on the basis of information available with the Company.

Note 21: Contingent Liabilities :

1. Labour Matter:

Two Complaints were filed by the District Labour Officer against the Company and its then Directors (2007) for alleged violation of Section 13 of Payment of Wages Act read with rule 4, 3, 18, 28 and 24 of the Maharashtra Payment of Wages Rules 1963 and the Bonus Act, as follows.

i) It has been alleged that the company failed to show the records to the Labour Officer upon his visit to the factory on February 9, 2007 and the Labour Officer noted that the Company has failed to pay four months' salary (October 2006 to January 2007), till that date of inspection (due date is on or before 7 days from the date of closing the calander month for the respective month) to the employees.

The non-payment of salary during the above period was due to sickness of the company.

ii) also alleged on February 9, 2007 against the Company and its then Directors for failure to pay Bonus to its employees for the F.Y 2005 - 2006, before the due date (Due date is before 15th Nov of every year for the previous F.Y).

Company Advocate for both the complaints argued in the lower Court on the maintainability of the complaints in view of the relief provided by the BIFR. Court rejected Company's say in both the cases. The Company filed two revision petitions against the above trial Court's order dated 14th March 2014 and argued by the company showing exemption of the BIFR Order against the maintainability of the case. The revision petitions were also dismissed on March 30, 2021. The matter now will continue before the Judicial Magistrate FC, Khed once the orders of dismissing the revision petitions are received by the Lower Court.

The listing and next date in the matter awaited. Company has paid all dues to its employees subsequently during 2008 itself, once the factory restarted after lockout. The liabilities and penalties, if any, cannot be quantified.

2. Income Tax: Assessment Year 2015-16 (Financial year 2014-15)- Rs.171.58 Lakhs

• The case was re-opened for A.Y 2015-16 and arbitrary order was passed by the ITO NFAC, Delhi (ITO) without giving opportunity been heard.

• The Assessing officer failed to give reasons recorded for issue of notice, not giving copy of sanction received for issue of notice u/s 148 of IT Act and not giving show cause notice and draft assessment order as per the provisions of Income Tax Law.

• This resulted into addition of Rs. 214.29 Lakhs to the total income and a tax liability demand of Rs. 171.58 Lakhs.

• The ITO also calculated the total income erroneously without giving the benefit of set-off of brought forward losses.

Against the above demand, the Company has filed rectification application on 27/04/2022 and the Company has filed appeal to the Commissioner of Income-Tax (Appeals) on 29/04/2022 which is pending.

Note 22: Loans and Advances including ' 34 Lakhs (Previous Year 34 Lakhs) towards amount paid to Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL), formerly known as Maharashtra State Electricity Board (MSEB), which has been appropriated by MSEDCL, details as under: ' in Lakhs

The Company has contested the aforesaid appropriation, based on the concession given by Board for Industrial and Financial Reconstruction (BIFR) vide its Order dated 26^th September, 2007, and a Writ has been filed at Hon'ble High Court, Bombay. The Company has been legally advised that the aforesaid appropriation by MSEDCL is not tenable and the Company is entitled for the refund. However, due to uncertainty of the above amount receivable, the same has been written off during the year 2016-17 in the books of accounts.

The Company has deposited additional amount of ' 34 Lakhs during the year 2018-19 without prejudice to the right of contention pursuant to the interim Order of Bombay High Court in order to transfer the electric connection/meter in the name of Gharda Chemicals Ltd. The Company is hopeful of recovery of the said amount.

Note 23: The values of Current Assets and Loans and Advances are stated at realisable in ordinary course of the business in the Balance Sheet, as per the opinion of the Management of the Company.

Note 25: Disclosure of Segment Reporting (IND AS-108):

i) The business segment has been considered as the primary segment. The only segment in which the Company engaged is Trading of Pharmaceutical Products. Hence disclosure of business segment (primary disclosure) is not applicable to the Company.

37^th ANNUAL REPORT 2023-2024

b. Transactions with Related Parties:

' in Lakhs

Note 27: Disclosure of operating Lease (IND AS-17): NIL Note 28: Disclosure of Earning Per Share (IND AS-33):

' in Lakhs

Note 29: Disclosure Deferred Tax (IND AS-12):

In view of significant brought forward losses as detailed below, the Company has not provided net deferred Tax Asset on prudence basis.

' in Lakhs

Note 30: Estimated value of contracts remaining to be executed on capital account and not provided for in the accounts as at 31^st March, 2024 was ' NIL (Previous year ' NIL)

The management assessed that the fair value of cash and cash equivalent, trade receivables, security deposits, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.

ii. Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measure at fair value. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into three levels prescribed under the accounting standard. An explanation of each level follows underneath the table:

iii. Fair value measurement

Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2 - The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 - If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3. This is the case for unquoted equity shares.

There have been no transfers among Level 1, Level 2 and Level 3 during the period

iv. Valuation technique used to determine fair value

Specific Valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis

The fair value of unquoted equity instruments is not significantly different from their carrying value and hence the management has considered their carrying amount as fair value.

v. Valuation processes

The finance department of the company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the chief financial officer (CFO) and the audit committee. Discussions of valuation processes and results are held between the CFO, AC and the valuation team regularly in line with the company's reporting periods.

Note 34: Financial Risk Management

The company's activity expose it to market risk, liquidity risk and credit risk. In order to minimize any adverse effects on the financial performance of the company, derivative financial instruments, such as foreign exchange forward contracts, foreign currency option contracts are entered to hedge certain foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements.

(A) Credit risk

Credit risk is the risk that the counterparty will not meet its obligations leading to a financial loss. Credit risk arises from cash and cash equivalents, financial assets carried at amortised cost and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.

i. Credit risk management

To manage the credit risk, Company periodically assesses the financial reliability of customers; taking into account factors such as credit track record in the market and past dealings with the company for extension of credit to Customer. Company monitors the payment track record of the customers, restrict credit limited in SAP, credit rating etc. Concentrations of credit risk are limited as a result of the company's large and diverse customer base.

ii. Provision for expected credit losses - Trade Receivables

The company follows 'simplified approach for recognition of loss allowance on Trade receivables

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analyzed.

Exposure - Trade Receivables: Rs.in Lakhs 189.01 (PY 14.56) The Company does not expect credit loss on Trade Receivable.

iii. Provision for expected credit losses - Other financial assets

The carrying amount of cash and cash equivalents, loans, deposits with banks and financial institutions and other financial assets represents the maximum credit exposure. The maximum exposure to credit risk is Rs. In Lakhs 899.87 (PY ' 714.20). The Company does not expect credit loss on other financial assets.

(B) Liquidity risk

Liquidity risk is the risk that a company may encounter difficulties in meeting its obligations associated with financial liabilities that are settled by delivering cash or other financial assets. The group monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs. The table below provides undiscounted cash flows towards financial liabilities into relevant maturity based on the remaining period at the balance sheet to the contractual maturity date for which there is no Liquidity risk as sufficient current assets are available to discharge the same.

(C) Market risk

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

(i) Foreign currency risk

Foreign currency risk arises commercial transactions that recognised assets and liabilities denominated in a currency that is not Company's functional currency (INR).

- Foreign currency risk exposure: NIL

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. The management is responsible for the monitoring of the Company' interest rate position.

- Interest rate risk exposure: NIL

(iii) Inventory price risk

The Inventory of the Company consist of Stock in trade of Rs. NIL (PY Rs. 20.57 Lakhs) which is subject to inventory price risk.

Note 35: For the purpose of the company's capital management, capital includes issued equity capital, convertible preference shares, share premium and all other equity reserves attributable to the equity holders of the parent. 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. The company's policy is to keep the gearing ratio restricted to 40%. The company includes within debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operations.

In order to achieve the objective of maximize shareholders value, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing borrowings that define capital structure requirements. The above capital gearing ratio has achieved the desired objectives.

Note 36: Ind AS optional exemptions

i. Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment and intangible assets covered by Ind AS 38 - Intangible Assets as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. Accordingly, the company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

ii. Estimates

The estimates at April 1, 2016 and at March 31, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from Impairment of financial assets based on expected credit loss model.

The estimates used by the company to present these amounts in accordance with Ind AS reflect conditions at April 1, 2016, the date of transition to Ind AS and as of March 31, 2024.

iii. Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS Accordingly, the classification and measurement of financial assets have been done on the basis of the facts and circumstances that existed at the date of transition and end of comparative year.

Note 38: The figures of the previous year have been regrouped and rearranged wherever necessary so as to make them comparable with those of the current financial year.