1. Additional Notes to the Financial Statements:

(1) Debit or Credit Balances on whatever account are subject to confirmation/ reconciliation.

(2) The work-in-process / semi - finished goods and by product etc. have been grouped as closing stock and the variation is stock has been worked out accordingly.

(3) The amount less received from the parties against sales made to them has been charged to Rebate & Discount Account and vice-versa.

(4) In the opinion of the Board of Directors, all current assets and loans and advances have a value on realization at least equal to the amount at which they are stated in the Balance Sheet. Adequate provisions have been made for all the known liabilities.

(5) The Company has called for the information from its suppliers as regard to disclosure required under Micro, Small and Medium Enterprises Development Act, 2006. The replies from most of the suppliers in this regard are still awaited. Hence the information required to be given in accordance with section 22 of the said act is not ascertainable and not disclosed .

(6) Commission on sales and rebate & discount are accounted for when accounts are finally settled with the agents, including conclusion of underlying sales contracts.

(7) Fixed Deposit with banks of Rs. 1.52 mn (Previous year Rs. 26.46 mn) are pledged as margin money with banks.

(8) The Company has been approved U/s 35 (2AB) of the Income Tax Act, 1961 by the Prescribed Authority i.e. The Secretary, Department of Scientific and Industrial Research, Govt. of India, New Delhi for co-operation in In-house Research and Development facility at Derabassi and Baraka up to 31.03.2016 vide letter No. TU/IV-RD/2502/2013 dated 18th September,2013. The revenue expenditure already incurred in the preceding years has been treated as deferred revenue expenditure and is being written off over the period of 5 years as per the policy of the company.

(9) The Inventory valuing Rs 401.01 mn comprises of raw material, stock of work in progress, semi finished goods including recovery stock and material at shop floor as physically verified as on 31st March 2016,the balance have been taken as per records of the company.

Since the company has not sent any balance confirmation letters to Sundry parties (Including Debtors, Creditors,

^{( )} Advance to Suppliers and Advance from Customers) as on 31st March, 2016, the balances have been taken as per records of the company.

(11) During the F.Y.2012-13 the company has made application for restructuring of debts under CDR Mechanism which has been approved and stands implemented, the cutoff date being 30th September 2012 and Company stand exit from CDR Mechanism on 28th October 2015 vide letter CDR(PMJ) No. 442/2015-16 dated 31st October 2015

iio'k A sum of Rs.260 mn received by company as share application money from Promoters/ Promoters' Associates, to

^{( )} comply a critical condition to infuse an amount of Rs 260 Mn in the form of Equity Share Capital of the Company, as stipulated under CDR package sanctioned to the Company pursuant to a scheme approved under the Corporate Debt Restructuring Framework of Reserve Bank of India .Now, they said amount of subscription money of Rs 260 mn has been received by the Company. The special resolution to this effect has been passed by the shareholders of the company by postal ballot on 31st January, 2014, however, the allotment of shares to the proposed allottees is pending awaiting the In-Principle approval of the Stock Exchanges required under the Listing Agreements. Approval from BSE has been received but pending due to NOC not received from the Lead Bank for allotment of the same.

(13) The Authorized Share Capital of the Company was increased from Rs. 72 crores to Rs. 82 crores vide resolution passed in Annual General Meeting of the members of the company held on 29th September 2015, but the company has not notified the Registrar of companies by Filing form SH-7 prescribed under the Companies General Rules & Forms due to non receiving of NOC from the lead bank for the allotment of shares to promoter and promoter group.

(14)

The company has incurred losses of Rs 4851.87 mn (PY Rs 3793.23 mn) during the current year and the company has net current liabilities of Rs 3491.29 mn (PY net current liabilities of Rs 1041.11mn) as on 31.03.2016. Further the company's accumulated losses have resulted in erosion of its entire net worth. The continuous losses have adversely affected the cash flows of the company.

(15) During the Financial Year 2015-16 most of banks have not charged interest for the full year due to NPA classification. The company has made provision of Interest due to Bank/Financial institution amounting to Rs 1035.24 mn @10.50% per annum in respect of such loan accounts.

(16) During the year, M/s J.M.Financial Asset Reconstruction Company Private Limited has taken over the loans/debts outstanding of the company from State Bank of Patiala, State Bank of Hyderabad, ICICI Bank Ltd & Uco Bank and provision for interest in respect of these banks has been provided @10.50% for the year.

(17) During the year 2015-16 the company has paid Director remuneration to Shri Pranav Gupta Rs 0.4 mn per month for three months (Apr'15-June'15) , the balance remuneration has not been taken by Shri Pranav Gupta due to financial crises . Moreover Mr Vineet Gupta (Whole Time Director) also has not taken any remuneration during the year.

(18) During the year, Company has filed application with Board for Industrial and Financial Reconstruction(BIFR) on 22nd May 2015 and the date of hearing was fixed on 2nd March 2016 which is pending.

(19) Disclosure in accordance with accounting standard (AS 29) Provisions, Contingent Liabilities and Contingent Assets:

⁽²⁰⁾ Taxation

1 In order to comply with the requirement of Accounting Standard -22 ” Accounting for Taxes on Income, the company has followed the deferred tax method of accounting. Consequently the company has accounted the deferred tax for the current period amounting to Rs. 44.30 mn in the Statement of Profit & Loss.

2 Deferred Tax Asset/ Liability are attributable to the following items:

(21) Fixed Assets possessed by PARABOLIC DRUGS LIMITED are treated as Corporate Assets and are not cash generating units as per Accounting Standard-28. In the opinion of Management, there is no impairment of fixed assets of the Company.

(24) Related Party Disclosures in accordance with the Accounting Standard-18 as notified by the Companies (Accounting Standard) Rules, 2006

Key Management Personnel with whom transactions have taken place during the Year

Relatives of Key Management Personnel with whom transactions have taken place during the Year_

1. J.D Gupta (HUF)_

Subsidiary with whom transactions h ave taken pla ce during the Year

1. Ziven Life Sciences Limited

2. Parabolic Research Labs Limited

Associates with whom transactions have taken place during the Year

1. Parabolic Infrastructure Private Limited.

2. Mohali Green Environment Private Limited.

3.Trackball Technology Pvt. Ltd.

(26) Contingent Liabilities (a) Foreign Letter of Credit/Inland Letter of Credit/Bank guarantee issued by bankers:

( b) I n respect of Income Tax matters pending before appellate au thirties/CIT (App eals) which company expects to succeed, based on decisions of Tribunals/ Courts. There is contingent liability amounting to Rs 79.52 mn.

(c) In respect of Service Tax matters pending before appellate authorities/Commissioner (Appeals) which company expects to succeed, based on decisions of Tribunals/ Courts. There is contingent liability amounting to Rs 3.484 mn.

(d) In respect of Excise Duty matters pending before appellate authorities/Commissioner (Appeals) which company expects to succeed, based on decisions of Tribunals/ Courts. There is contingent liability amounting to Rs 676.15 mn.

(e) In respect of Legal cases against the company, there is contingent liability amounting to Rs 9.55 mn.

(2 Segment Reporting:

There is not more than one reportable segment. Hence information as per AS-17 is not required to be disclosed.