Kamron Laboratories Limited (the Company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on BSE Limited, Ahmedabad Stock Exchange Limited and Delhi Stock Exchange Limited. The Company was established in 1988, Kamron Laboratories Ltd has a high-tech Pharmaceutical manufacturing Plant.

A. Terms / rights attached to equity shares:

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each equity shareholder is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend if any proposed by the Board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March 2015, the amount of dividend, per share, recognized as distributions to equity shareholders is Rs. Nil (year ended 31st March, 2014, Rs. Nil).

1. Certain Fixed Assets of the Company viz the Plant & Machinery, Land, Factory Building and Non- factory Building were revalued during the year ended 31st March, 1998 on the basis of their replacement value as of 31st March,1998 determined by the approved valuer and the surplus arising on such revaluation amounting to Rs.1,43,62,580/-in the accounts of the Company have been credited to the revaluation reserve and the said fixed assets have been shown at revalued figures.

1. The company during the year ended 31st March 2014 had adopted programme of substantial expansion of marketing. The company had introduced certain new products and had also entered into certain new regional areas. The company with a view to expanding the regional market and with a view to introducing new products had expended substantially on salary of marketing staff, allowances of marketing staff, commission, traveling of marketing staff. The management of the company is of the view that the company shall continue to enjoy benefits of the expenses for the subsequent years and therefore on basis of appraisal of the expenses and considering the enduring nature of the expenses the company had transferred the aggregate expenses i.e. Rs. Nil (Previous Year Rs. 94,78,145/-) to Deferred Revenue Expenditure. The management of the company is of the opinion that the company shall be able to enjoy the benefits for the next ten years and therefore the company has decided to amortize expenditure at the rate of 10% per annum commencing from financial year 2014-15

Note 2 EMPLOYEE BENEFITS:

Contributions are made to Recognized Provident Fund / Government Provident Fund and Family Pension Fund which covers all regular employees. Contribution is also made in respect of executives to a Recognized Superannuation Fund. While both the employees and the Company make predetermined contributions to the Provident Fund, contribution to the Family Pension Fund and Superannuation Fund are made only by the Company. The contributions are normally based on a certain proportion of the employee's salary. Amount recognized as expense in respect of these defined contribution plans, aggregate to Rs.788232/- (previous year, Rs. 798470/-).

Provisions are made to in respect of gratuity based upon actuarial valuation done at the end of every financial year by the management of the company. Major drivers in actuarial assumptions, typically, are years of service and employee compensation. Gains and losses on changes in actuarial assumptions are accounted for in the Statement of Profit and Loss.

The charge on account of provision for gratuity and leave encashment has been included in 'Contribution to provident fund and other funds' and 'Salaries, wages and bonus' respectively.

Note 3 LEASES

(a) The Company has taken office, under operating lease or leave and license agreement. The agreement is generally cancelable in nature and range between 11 months and 48 months. The leave and license agreement is generally renewable or cancelable at the option of the Company or the lessor. The lease payment recognised in the Statement of profit and loss is Rs. Nil (previous year Rs. 1,20,000/-).

Note 4 SEGMENT INFORMATION

Primary

The Company is engaged primarily in business of manufacturing pharmaceutical products.

                                               As at         As at
                                    31st March, 2015   31st March, 2014

In respect of:

a. Excise matters disputed in appeal:        826339          826339

b. Claims against the Company not acknowledged as debts - - Labour matters involving issues like regularization of employment, termination of employment, compensation against severance, etc.

c. Sales-tax matters disputed in appeal. 11032991 11032991

These relate to classification of goods and consequent dispute ex parte order 2006-07 (pending before the Commercial Tax Commissioner Gandhinagar)