1 Significant Accounting Policies :

a. Basis of Preparation

The financial statement have been brpared and brsented under the historical cost convention on as accrual basis of accounting and in accordance with generally accepted accounting principles in India and comply in all material aspects with the applicable accounting standards notified under the relevant provisions of the Companies Act 2013.

b. Fixed assets and debrciation

i) Fixed assets include all expenditure of capital nature and are stated at cost of acquisition, installation and commissioning and related borrowing cost less debrciation. Fixed asset values are stated at historical cost. Debrciation on fixed assets other than land is charged under the straight-line method in accordance with Schedule II of the Companies Act, 2013. Product/Process development costs arising out of R&D are carried forward when their future recoverability can reasonably be regarded as assured. Any expenditure carried forward is amortized over the period of expected future economic benefit, from the related project, not exceeding ten years.

ii) Impairment loss indicates the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of the net selling price of an asset or its value in use. Value in use is brsent value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. The Company will recognize such losses whenever they arise.

c. Investments

Investments are classified into Current and Non-Current Investment. Current Investments are valued at lower of cost or fair value. Non- Current Investments are stated at cost. Provisions are made for diminution in value of investments, if any, other than those of temporary nature.

d. Valuation of Inventories

Inventories are stated at lower of cost or net realizable value, on the following basis:

i) Raw materials, packing materials, stores and spares - At cost on FIFO Method

ii) Work in process - At cost plus appropriate allocation of overheads

iii) Finished Goods - At cost plus appropriate allocation of overheads or net realizable value whichever is lower

e. Retirement Benefits

I. In respect of Gratuity and Superannuation fund, the Company's contribution to group insurance scheme of Life Insurance Corporation of India & Birla Sun Life Insurance Company Ltd. are charged against revenue.

II. Provision for incremental liability in respect of encashable privilege leave on separation benefit is made as per independent actuarial valuation at the year end.

f. Revenue Recognition

Revenue is recognized to the extent that probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

• Sale of Goods :

Revenue from sale of goods is recognized when significant risks and rewards of ownership of the goods have been passed to the buyer, and is stated net of excise duty, sales tax, returns and trade discounts.

• Export Benefits :

Export Benefits available under brvalent schemes are accrued in the year in which the goods are exported and are accounted to the extent considered receivable.

• Interest income is recognized using the time proportionate method, based on rates implicit in the transaction.

• Dividend income is recognized when the right to receive is established.

g. Borrowing Cost

Borrowing costs that are directly attributable to acquisition construction, or production of qualifying assets are capitalized as a part of the cost of such assets, up to the date such assets are ready for their intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred.

h. Foreign Currency Transactions

Transaction denominated in foreign currencies is recorded at the exchange rate that approximates the actual rate brvailing at the date of the transaction. Monetary item denominated in foreign currency at the year end are translated at year end rates. Non monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rate at the date of transactions. The brmium in case of h forward contracts is dealt with in the Profit and Loss Account proportionately over the period of contracts. The exchange differences arising on settlement/translation are dealt with in the Statement of Profit and Loss.

i. Research & Development Expenditure

Revenue expenditure on Research and Development is recognized as expense in the year in which it is incurred.

Capital expenditure on Research and Development is included as part of fixed assets and debrciation is provided on the same basis as for other fixed assets.

j. Income Tax

Tax expenses comprise of current tax and deferred tax, current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income of the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted as at the Balance Sheet date.

k. Leases

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognized as operating lease. Operating Lease payments are recognised as an expense in the Profit and Loss Account of the year to which they relate.

2 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.

3  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 (brvious year Rs. 12,374.71/- Lakhs) out of its annual trade related operations (export & import) aggregating to Rs. 80,179.21/- Lakhs (brvious 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).

4  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.

5  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.

6 Sales/Income from Operation include export benefits amounting to Rs.  2,208.14/- Lakhs (As at 31st March, 2015 Rs.  2,213.85/- Lakhs).

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 brvious year have been regrouped and rearranged wherever necessary.

AS PER OUR REPORT OF EVEN DATE.

For GOKHALE & SATHE

CHARTERED ACCOUNTANTS

Firm Registration No: 103264W

(CA Tejas J. Parikh)

Partner

For and on behalf of the Board of Directors

Sd/- Prakash M. Patil DIN: 00005618

(Chairman & Managing Director)

Sd/- Harshit M. Savla DIN: 00005340

(Jt. Managing Director)

Sd/- Adhish P. Patil Chief Financial Officer

Sd/-CS Vibhav S. Ranade Company Secretary

Place: Mumbai

Date: 5th May, 2016