Vivimed Labs Limited Annual Report 2018-19 Contents

Corporate Overview 1 Committed to perform 6 Statement from the Managing Director 10 About Vivimed 12 About the business 16 2018-19 in a nutshell 17 Financial progress

Statutory Reports 18 Management Discussion and Analysis 32 Corporate information 33 Board’s Report 71 Corporate Governance Report

Financial Statements 99 Standalone Financial Statements 144 Consolidated Financial Statements

Agenda to AGM 187 Notice There are generally two categories of companies in the world. First are the ones who’re knocked down and resign to that fate. The second are those who get back up, repeatedly, despite everything. In other words, the ones who’re committed to perform. Just like us. Annual Report 2018-19 1 Our journey this far has been adventurous at best, each year being more challenging than the previous.

We struggled. We braved. We battled. But, through it all, we also found the will power to rewrite strategies that could make a difference in the long run. We invested our time and focus into making necessary adjustments and changes to strengthen our position, which would help in sustaining our successes. VIVIMED LABS LIMITED 2 In other words, we remained committed to perform, without once giving up on the future we’ve always had in our Annual Report 2018-19 mind! 3 Committed to perform Evolving to the next

Having established our It builds our technology tool box. credentials with global Vivimed can leverage Soneas’ pharmaceutical majors as a high level of competency in reliable supplier of quality APIs, emerging technologies such as we now focused on transitioning metal catalysis and heterocyclic to a higher level – from a supplier chemistry. This acquisition to a developing partner. It broadens our market offering positions This evolution was critical for in the CDMO space. us as it promised to cement a Vivimed as Vivimed can undertake preclinical, lasting bond with our customers. phase I, II and III NCE project an end-to- It provided revenue visibility. It development. end solutions added immense value to our provider in the API business. It made business It adds to our end-usage growth increasingly sustainable. capabilities. global API-CDMO In keeping with this belief, we Vivimed can leverage Soneas’ business. acquired the Hungary-based diverse end-usage capabilities CDMO company, Soneas, in May in neurology, dermatology, VIVIMED LABS LIMITED 2018. This is what it does for us. metathesis catalysts and synthetic hormones. 4 We are establishing a flanking business vertical – asset-light model It enhances our regulated markets namely the Idea is to create a brand manufacturing footprint. US, Europe and Japan. that is a store house of IP Soneas brings with it a cGMP assets using our extensive It increases our customer pilot plant and over 180KL knowledge pool in pharma base. industry - formulations of key starting material that will allow us to (KSM) cGMP capacities to the SONEAS enjoys multi-year relationships with innovator explore new geographies, assetblock. breakthrough in complex companies based in Japan and molecules and also new It allows us to utilise our Europe. dosage forms capacities better. It contributes to our A model in which the Company collaborates Soneas can potentially feed financials right away. with strategic partners into UQUIFA´s existing Soneas has a pipeline of who develop the manufacturing facilities in Spain multiple projects where it is formulations and/or and Mexico. collaborating with customers in manufacture and market Phase 2 and Phase 3 of a new the products in regulated It widens our geographic markets; Vivimed earns drug development. presence. revenue from a profit- sharing model and co-

SONEAS has a significant Annual Report 2018-19 owns the IP asset.. presence in important 5

Statement from the Managing Director “My singular message to my shareholders is that I remain committed to grow this business. Because when commitment to grow is at the heart of any journey, success is a natural corollary.”

Dear shareholders, Vivimed, through UQUIFA, has reach US$116.2 Bn by 2026. established its presence in the Fiscal 2018-19 was an To capitalise effectively of the global CDMO space having important milestone in our growing market opportunities, successfully delivered projects journey from a strategic we needed to widen our to global pharmaceutical perspective. We achieved some technology pool, expand our players. The CDMO business important successes which capability matrix and our grew exponentially over the showcase our commitment to service offering across product last five years. – from <5% of grow our organisation amidst development value chain. This UQUIFAs business in 2012 to economic headwinds and is where Soneas appears as ~25% in 2017. sectoral challenges. Because a best fit to our API business when commitment to growth Interestingly, CDMO business spearheaded by UQUIFA. is at the heart of any journey, opportunities are increasing Hence, Soneas, I am confident, success is a natural corollary. as global players are focused will add considerable value on optimising costs in keeping Our defining step was the to UQUIFA’s operating model. with the clarion call across the acquisition of Soneas, a Moreover, it will bring to global of reducing healthcare dedicated CDMO player, at fruition Vivimed’s vision of costs. According to a report the start of fiscal 2018-19. making UQUIFA an integrated by Credence Research, CDMO is an interesting space global CDMO player and Inc.’ Pharmaceutical CDMO to be in owing to its inherent catapult the combined CDMO Services Market - Growth, characteristics such as piece into a new growth orbit. Future Prospects, Competitive customer stickiness, revenue Analysis, 2018-2026, the The other important move was visibility and superior margins. global Pharmaceutical CDMO the exit from the joint venture But it has its challenges too – Services Market was estimated with Strides Shasun in the extensive research expertise at US$65.6 Bn in 2017; it is Finished Dosage space. It was and a long gestation for Annual Report 2018-19 expected to expand at a CAGR a win-win for both partners. investments to transform into of 6.5% from 2018 to 2026, to For us, it released critical returns. 7 management bandwidth to Our API business is gaining returns in the next 12-18 sharpen our focus on certain healthy traction. I believe that months. markets of our choice. For with team’s efforts in seeding One of the most heartening Strides, it strengthened their multiple markets, we may soon facts is that we have replicated presence in the US market. be faced with a capacity shortfall the CDMO model in our Moreover, we utilised the funds for some of our key products. formulations space, but with received owing to the exit to We would need to debottleneck a difference. We call it the pare down our debt. our infrastructure to release Virtual Pharma segment. This capacity to accommodate Having said that, I must mention is an interesting concept. We additional volumes. that debt management has will create a pool of high value, been foremost on our minds. Our CDMO segment is also high risk molecules using are Between March 2017 and June picking up momentum with extensive knowledge in the 2018, we have reduced our a healthy uptick in orders in pharma industry. On successful debt burden from C1010 crore the first quarter of the current development, we will enter to C837 crore (includes C111 year (2019-20). I am hopeful of into a profit-sharing alliance crore added in 2018-19 owing to sustaining this momentum in with a large pharmaceutical the acquisition of Soneas). We the current year. majors for manufacturing will continue to focus on debt and marketing the product in reduction in the coming years. Our finished dosage business regulated markets of the US, should experience a healthy Europe and Canada. This asset- The road ahead uptick in volumes over starting light operating model would from the current year as the I am particularly optimistic open a new, profitable and team has worked tirelessly in about our prospects over the sustainable revenue stream for expanding their footprint in medium term. the Company. VIVIMED LABS LIMITED new markets. I feel these new markets would start delivering 8 In closing sincere gratitude to my fellow I feel we are well positioned Directors for their commitment on our performance journey. and professionalism in paving But I must admit that during the Company’s long-term path. this journey, there will be ups I would like to thank our and downs. We will be putting esteemed shareholders, ourselves in uncomfortable, partners and other challenging positions. But the stakeholders for believing in point is, regardless of outcome, our story and reposing their it’s the focus on each step and confidence in our capability and each moment of the learning extending their support in our that is critical. long journey of endurance.

Because, these learnings are And most importantly, I place the essentials we will need to on record my gratitude to our rely on to develop, progress management team and staff and perform. Because these for their valuable and ongoing learning will help us challenge dedication in contributing to status quo, push ourselves the Company’s growth outside our comfort zone and take on new challenges and opportunities with a vision of a Warm regards better tomorrow. Santosh Varalwar Acknowledgment

A fellow shareholder Annual Report 2018-19 As we move forward into 2019- 20, I would like to express my 9 About Vivimed Labs

A globally renowned partner that touches the lives of millions through its expertise in chemistry

Over nearly three on quality and compliance decades, Vivimed Labs has reflects in aligning its systems metamorphosed from a and processes with stringent domestic small, entrepreneurial global standard – three of its family-operated business to manufacturing facilities are US- a globally renowned supplier FDA approved; the Company has of niche molecules and also gained PIC/S GMP approval Three of formulations across Healthcare, for the supply of finished Vivimed’s Pharmaceuticals and Specialty pharmaceutical formulations. Chemicals consumers in nearly 50 manufacturing countries.

facilities Vivimed has, over its business are US- FDA journey, established, 12 manufacturing facilities, 6 R&D centres and global support

VIVIMED LABS LIMITED approved offices in India, China, Europe and USA. The Company’s focus 10 Our Presence

Shareholder information India Mexico (as on March 31, 2019)

Kashipur Haridwar Promoters’ stake: 34.39% Cuernavaca Market capitalisation: D1,931.05 million Kolkata Face value per share: D2/- Balarum Bidar Joodimetla (2 Unit) BSE Code: 532660 NSE Code: VIVIMED Spain Hungary Sant Calony Earnings per share: D6.67 (diluted) Llica Do Vall

Budapest

Our reputed global clientele

Our Values and Principles

WE FOCUS ON WE BUILD ON OUR WE EMBRACE CHANGE OPPORTUNITIES CAPABILITIES At Vivimed we consider the only At Vivimed we believe that Capability building is the key to constant to be, is change itself. there is no room for a second our Company’s performance chance. and growth. WE STRIVE FOR CONTINUOUS IMPROVEMENT An opportunity presents itself At both individual and There are others; and there only once, and we usually make organisational level, there is a is Vivimed. We strive for it ours. consistent effort to build up on continuous improvement in our Annual Report 2018-19 our competencies. quality standards, operational efficiency and customer service. 11 About our business

A corporate with three revenue streams VIVIMED LABS LIMITED 12 Active Pharmaceutical Ingredients

UQUIFA, an API franchisee of Headquartered in Barcelona, are Etofenamate, Doxylamine the Vivimed Group, is a leading with state-of-the-art production Succinate, Ranitidine, international supplier of active facilities spread across three Omeprazole, Pantoprazole and pharmaceutical ingredients continents. The Company Quetiapine. (APIs) and intermediates to enjoys a strong market share the Pharmaceutical Industry. some niche molecules which

4 3 70 Manufacturing facilities R&D facilities Global footprint (nations)

150+ 20+ 73 Active DMF’s Approved COS Contribution to revenue (%) Annual Report 2018-19 13 2 Finished Dosage Forms

Vivimed manufactures niche Proprietary products formulations based on multiple Branded – marketed in India delivery platforms at its two manufacturing sites which are Generic - find acceptance widely accepted in pharmerging in India and in multiple markets across the globe. pharmerging markets across Within this vertical the the globe Company has two segments: Custom manufacturing for large formulators in India

6 1 50+ 15 Manufacturing R&D facilities Customers Contribution to facilities revenue (%) VIVIMED LABS LIMITED 14 3 Specialty Chemicals

The Company is a global (Bidar-Karnataka) or with world-class R&D capabilities supplier of active ingredients other partnerships. The in Huddersfield-UK and for home and personal care, current portfolio consists of Hyderabad-India with scientists hair dyes, imaging chemicals 100+ products serving 300 having a combined dye and photochromic. It Maintains + Customers with supply chemistry experience of more leadership position through expertise for any volumes. than 100 years. captive manufacturing The Company maintains

1 1 12 Manufacturing R&D facilities Contribution to revenue (%) facilities Annual Report 2018-19 15 2018-19 in a nutshell

Performance (in FY2018-19) 13,151 2,001 574 Revenue EBITDA Net Profit (` million) (` million) (` million)

Position (as on March 31, 2019) 9,437 13,480 Networth Tangible Assets (` million) (` million)

Key events (in FY2018-19)

May 2018 October 2018 Pharma Science Limited Vivimed Labs Spain S.L, the Vivimed’s API manufacturing and the balance 50% stake parent of UQUIFA S.A, has facility located in CUERNAVACA, in Strides Vivimed Pte Ltd, signed definitive agreements Mexico was recently inspected Singapore to Strides Pharma to facilitate the acquisition by the US FDA in compliance Global Pte, Singapore. of SONEAS, a Budapest with their requirements. The (Hungary) headquartered inspection was successful and CDMO company, focussed on company obtained EIR. the Innovator Pharmaceutical and Fine Chemical sectors. The January 2019 business has been acquired Vivimed’s Board approved to from Lochlomond and sell its stake in 50:50 JV with Euroventures which are both Strides. Consequently, VLL based out of Hungary. SONEAS will Sell balance 50% stake in has for the year 2017, reported Vivimed Life Sciences Private revenues of €12.2mn. Limited, India to Strides VIVIMED LABS LIMITED 16 Financial progress 4,106 11,857 13,564 13,152 14,619 2,429 2,216 2,001 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19

Revenue EBIDTA (C million) (C million) 12,387 2,217 9,437 7,342 5,852 837 761 574 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19

Profit for the year Networth

(C million) (C million) Annual Report 2018-19 17 Management Discussion & Analysis

Global economy Indian economy (both Centre and State) on construction of rural roads, One year ago, economic activity Fiscal 2018-19 was a year of highways, and affordable was accelerating in almost all benign growth for the Indian housing. regions of the world and the economy. Growth dropped to global economy was projected 6.8% in FY19. Outlook for FY20 to grow at 3.9% in 2018 and Food Inflation could be So what led to the decline? 2019. And in that one year, a reason for worry for India started on a healthy note a lot has changed which has policymakers in FY20, with an 8% GDP growth in the contributed to a significantly given that it has remained first quarter and a 7% growth in weakened global expansion, subdued for a considerable the second. But in the second especially in the second half period. of 2018. With this weakness half growth slipped to below Fuel Inflation might be under expected to persist into the 6.5%. This was due to the poor control in FY20 given the first half of 2019, the World performance of farm, mining trend in global crude oil Economic Outlook projects a and manufacturing sectors – it prices, which have come off decline in growth in 2019 for led to an overall deceleration in their peak in October’18 with 70% of the global economy. economic progress. low probability of rebounded Global growth, which peaked at During the year private final to those high levels. close to 4% in 2017, softened to consumption expenditure grew 3.6% in 2018, and is projected Current account deficit is 8.1% and capital investment as to decline further to 3.3% in expected to reduce to 2.4% measured by gross fixed capital 2019. of GDP in FY20, compared formation expanded from 9.3% to 2.6% in FY19. The import to 10% in FY19. However, the Changes that derailed the bill is expected to be lower, slowdown in Agriculture and world from becoming better consequent to lower oil Manufacturing has been a The escalation of US–China prices. However, exports will major cause of concern. trade tensions also languish on the back of weak global growth outlook Macroeconomic stress in On the investment front, FY19 and global trade impacted by Argentina and Turkey witnessed a rebound with escalating trade wars. Disruptions to the auto fixed investment growing The Indian rupee will remain sector in Germany 12.2% from 7.6% in FY18. The investment ratio has also volatile and settle at 72/$ Tighter credit policies in seen an uptick from 30-31% by March 2020. Again, the China

VIVIMED LABS LIMITED in FY18 to 32.9% in FY19. The low oil prices and slowing Financial tightening in the impetus has come in the form rate of monetary policy larger advanced economies of huge Government spending normalisation will act as 18 Global Medicine Spending and growth in Selected Regions, 2018-2023

UNITED STATES TOP 5 EUROPE 2018 : $485Bn +5.2% 2018 : $178Bn +3.9% 2014 -18 : 7.2% 5 year CAGR 2014 -18 : 4.7% 5 year CAGR 2019 : $507Bn + 4.6% 2019 : $182Bn + 2.8% 2023 : $625-655Bn+4.7% 2023 : $195-225Bn+1-4% 5-year CAGR 5-year CAGR

WORLDWIDE PHARMERGING JAPAN 2018 : $1,205Bn +4.8% 2018 : $286Bn + 6.9% 2018 : $86Bn + 1.8% 2014 -18 : 6.3% 5 year CAGR 2014 -18 : 9.3% 5-year CAGR 2014 -18 : 1.0% 5 year CAGR 2019 : $1,245Bn +4.5% 2019 : $293Bn+7.0% 2019 : $89Bn + 0.9% 2023 : $1,505-1,535Bn+3-6% 2023 : $355-385Bn+5-8% 2023 : $89-93Bn+ (-)3-0% 5-year CAGR 5-year CAGR 5-year CAGR

a support for the Indian of healthcare and spend owing to the impending slack currency. continues to occupy sizeable economic conditions across Domestic Interest rates mind space of policy makers, the advanced economies which are also expected to head patients, payers and drug will have a spillover impact southward, the dampening manufacturers. on the progress of the Global mood of consumption in Pharmaceuticals Industry. The global market for household sector will be a pharmaceuticals reached key catalyst for rate to hover US$1.2 trillion in 2018, up lower than FY19. US$100 billion from 2017, (Source: Ministry of Finance, according to the Global Use The Economic Times, CRISIL of Medicines report from the Research) IQVIA Institute for Human Data Science. For the US specifically, The Indian economy is the 2018 spending was US$485 expected to grow at 7.0% billion, up 5.2% over the Trends expected to play in FY20 owing to internal previous year. out between 2019 and 2023 challenges such as a weak Uptake of newer brands domestic demand forecast. The growth phase of the and products is expected Global Pharmaceuticals to remain strong market is expected to continue Global Lesser impact of price unabated in the next five year cuts on brand than other pharmaceutical cycle. Driven mainly by higher products sector spending on medicines, it is The global pharmaceutical expected that the market size Generic usage in the industry has remained in the will reach US$1.5 trillion by unprotected markets to spotlight in almost every nation 2023, growing at 3-6% CAGR exceed the target (80%) for its strong correlation with which is comparatively lesser Product mix to continue its shift towards specialty the nation’s economic strength than the growth over the Annual Report 2018-19 and improved standards of last five years (5-6% CAGR). and orphan products healthcare. As a result, quality This subdued demand is 19 Global API sector and specialty APIs, in order to Despite these headwinds, China dominates the global cater to the rising demand for overall export of API space is largely owing these products. pharmaceutical products stood to consistent investment in at an all-time high, crossing the business-critical factors such as Indian US$19 billion mark in 2018- chemistry expertise, technology pharmaceutical 19 against US$17.27 in the and large infrastructure. sector previous fiscal. The global API market The third largest in the world Optimism and outlook: The by dint of volume growth, the witnessed steady growth in Industry is expected to grow Indian Pharmaceutical industry 2018 in terms of volume and at a CAGR of 15% over the supplies around 50% of the value despite disruptions from next few years from the value global demand for various the conventional supplier base. of $38billion in 2019. It has vaccines, 40% of generic The Chinese Government’s played a key role in bringing drugs in the US and 25% of all efforts to curb pollution about better health outcomes medicine demand in UK. impacted certain API and across the world through its intermediate manufacturing India’s domestic cost-effective and superior zones, mandating them to pharmaceutical turnover quality generics drugs. Better shut operations. The resultant reached C129,015 crore (US$ accessibility to reasonably production shortfall impacted 18.12 billion) in 2018-19, priced drugs has been one of the price and supply of growing by 9.4% year-on-year the key enablers for lowering these products across the from C116,389 crore (US$ the disease burden in India. pharmaceutical value chain 17.87 billion) in 2017-18. The India’s per person disease globally. healthy uptick was owing to burden measured as Disability the lower base of the previous Adjusted Life Years (DALYs) Going forward: The market year (2017-18) and the limited dropped by 36 percent size of the Global active impact of the Fixed-Dose between 1990 and 2016 after pharmaceutical ingredients combination ban during the adjusting for changes in the market as of 2018 was valued period under review. population age structure. at US$165.74 billion; this size is expected to grow to US$236.7 Fiscal 2018-19 was challenging The demand in the billion by 2024 growing at a for some of the leading Indian pharmaceutical industry will pharmaceutical companies CAGR of 6.1%. remain high and hence act as a having a sizeable exposure to market driver on account of the The major forces that are the US markets. Regulatory following: driving the market include challenges linked to plant- the increasing prevalence specific issues and/or price The expected spend on of infectious diseases, erosion in the base portfolio medical infrastructure in the cardiovascular conditions, and resulted in a decline in their US next couple of years will be other chronic disorders. Apart business. to the tune of US$200billion. from these diseases, genetic disorders are significantly driving the usage of active I SD

ingredients worldwide. 11-12%

Key drivers of growth Moreover, a significant number 7-8% Accelearated growth in India of drugs are in the pipeline to and affordability next- develop treatments for cancer, generation innovative products Strong growth in the US market autoimmune disorder, and ADA 38 molecules going off patent, and metabolic diseases. Given the Increased growth extent of prevalence of cancer, many manufacturers are Japan China

VIVIMED LABS LIMITED B A venturing into the development of highly potent APIs (HPAPI) S IVIA AID IA T 20 New business models to to the ports to foster global could be in more a long term envisage entry into tier-2 linkage and leasing these growth trajectory. and 3 towns. to the private sector as Specialty chemical end-use Over 160,000 hospital beds manufacturing units. industries such as textile, expected to be added each Ease of operations in terms automotive, personal care, year in the next decade. of extended environmental construction chemicals and approvals and regulatory Patients with better agrochemicals, as well as clearances. education levels will be more application-driven segments prone to self-medicate, a Enabling low cost borrowing such as surfactants, paints, huge catchment area for the to set up plant in such API coatings and colorants, to OTC market. hubs by collaborating with experience high growth in the Medical tourism on the rise multilateral financing firms. medium-term. with patient inflow from Innovative land foreign countries. acquisition policies and According to a report by Crisil, the specialty chemicals market Due to the growing commercialisation that aids is likely to clock a compounded population, patient pool will reduced capital requirement annual growth rate of 12- also increase by nearly 20% for plant commissioning. 13% over the next five years, in the next 10 years. Exports of bulk drugs and with the intensity of specialty The Government plans to intermediates from India grew chemicals in end-use domestic phenomenally increase the in double digits during FY2019, markets expected to rise. reach of generic medicines a period that was marked by to half the population at drug shortages in the global The closure of plants in an estimated outlay of market owing to supply European Union and China, US$5.4billion. disruptions in China. owing to increasing , An estimated 650 million According to data released ...environmental concerns citizens to have health have opened doors for Indian insurance cover by 2020. by the Pharmaceutical Exports Promotion Council manufacturers to invest further in specialty chemicals. Domestic API sector (Pharmexcil), exports of bulk India produces a third of the drugs and intermediates in Moreover, global players are world’s medicines, mostly in FY19 stood at US$3.9 billion, looking to diversify the supply the form of generic drugs. up 10.5% over the previous risk, thereby improving export But, unfortunately it relies year. The category contributes opportunities for Indian primarily on imports (from accounts for about 20.3% of players. China) of Key Starting Materials, India’s overall pharmaceutical intermediates and APIs for exports. Further, the per capita chemical manufacturing those generics. consumption in the country Going forward: The API According to the Department remains low compared with industry in India is expected to of Pharmaceuticals, currently, that in developed countries and grow to US$18.8 billion by FY22. over 70% of APIs are sourced emerging economies such as In order to grow the domestic from China; for some specific China, indicating latent demand market for APIs, a high-level APIs, the dependence is over potential in the Indian market. task force was entrusted 80-90%. with recommending policy To capitalise on these The Government is proactively roadmap to the government in opportunities, the domestic encouraging API manufacturing April’2018. specialty companies have in India to offset reliance on planned capacity expansions imports. The major steps being The specialty which are expected to be considered are: chemical space operational in the next 18-24 months. Mainly driven by the spurt in Commissioning large scale Annual Report 2018-19 domestic demand, the Indian SEZs that are located close Specialty Chemicals sector 21 The Company Revenue from the Specialty on the niche category of Chemical division stood at APIs, generic and branded Established in 1991 in C1,627 million in 2018-19. EBIT formulations with deep seated Hyderabad, India, Vivimed Labs declined to C436 million – a de- collaboration with globally has metamorphosed from a growth of 30.16%. acclaimed pharmaceutical domestic small, entrepreneurial brands in the contract family-operated business to Pharmaceuticals manufacturing space. a globally renowned supplier Vivimed has, over the years, of niche molecules and created an integrated business In 2018-19, revenue from the formulations across Healthcare. model with product offering Pharmaceutical segment grew across the value chain. The by 16.9% y-o-y to reach C11,525 Within the healthcare space, million. Its profitability de-grew the Company has two business manufacturing capabilities include APIs and formulations by13% registering an EBIT of division namely APIs and FDF – C896 million in 2018-19. they contribute more than 80% across varied therapeutic of the Company’s topline, the segments. The focus is mainly balance accrues from specialty chemicals. Generic Specialty Chemicals API Vivimed manufactures Hair CDMO Dyes, Photochromic Dyes, Anti-Microbials and Imaging Pharma Contract Chemicals.The Company Manufacturing is a world leader in the development of innovative FDF Generic photochromic dyes. It has patented processes for novel Branded dyes targeting a range of Business applications

Vertical-wise revenue mix Geography-wise revenue mix

12% 12%

D

S E

88% 88%

(I in Lakhs) (I in Lakhs) Pharma Revenue and EBIT Margins Spec Chem Revenue and EBIT Margins

3169 3198 3139 540 43.10% 15.60% 511 464 2640 2532 429 417 448 2314 2427 37.27% 420 14.20% 2019 34.20% 341 10.80% 28.30% 32.60% 9.50% 8.21% 20.20% 6.30% 13.11% 17.80% 6.20% 2.09%

Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 VIVIMED LABS LIMITED

Net Revenue EBIT Margins Net Revenue EBIT Margins 22 Business segment - 1 Active Pharmaceutical Ingredients (APIs)

This is the flagship division consistently compliant Performance in 2018-19 of the Company which is production infrastructure, Revenue from the API business managed by its international over 80 years of experience stood at C962.02 crore in subsidiary UQUIFA s.a. The and is a well-known supplier 2018-19 against C795.54 crore Company has USFDA approved to the industry. In addition to in the previous year. Increased manufacturing units in Spain(2 manufacturing generic APIs, cost of production hampered units) and Mexico(1 unit) UQUIFA also undertakes CDMO profitability as EBIT declined that manufactures APIs for (Contract Development and from C62.69 crore in 2017-18 to Pharmaceuticals and animal Manufacturing Operations) C41.03 crore in 2018-19. health industry globally. projects for numerous large and reputed global UQUIFA is well positioned in pharmaceutical companies. the Pharmaceutical industry, This segment accounts for in Europe and the US with a about 73% of the Company’s diversified product portfolio, revenue. Annual Report 2018-19 23 Global presence: a strategic advantage A global platform that combines quality with competitiveness

BUDAPEST, HUNGARY BUDAPEST, HUNGARY SAN FRANCISCO, USA ST CELONI, SPAIN LLIÇÀDE VALL, SPAIN ST CELONI, SPAIN BARCELONA, SPAIN GUANGZHOU, CHINA

CUERNAVACA, MEXICO HYDERABAD, INDIA CUERNAVACA, MEXICO HYDERABAD, INDIA

Corporate office Regulatory compliant intermediate manufacturing sites / pilot plant R&D labs — international presence Strategic cost advantage centres, formulation units and formulation labs for vendor development CDMO Business Development Resource BARCELONA, SPAIN

1) Generic APIs Rich intellectual property Growth levers comprising more than 150 The generic API business is the active DMFs filed and 20 CoS Growth from current key revenue earner for the API approved. products; more products per segment accounting for more customer, more customers than 75% of UQUIFA’s topline. A strong ‘under- per product; improve market The Company manufactures development’ pipeline of shares in Generic 50+ DMFs generic APIs which is marketed new products. and 20+ approved CoS to a global customer base

with clients in more than 70 Leverage the molecule countries worldwide. Initiatives in 2018-19 portfolio in capitalise on the growing demand in areas 1) Successful inspection at such as anti-ulcer, CNS, and Competitive advantage UQUIFA’s facility in Mexico by CVS More than 75 years USFDA; EIR obtained. of experience in the Operational and cost pharmaceutical industry. 2) The Company executed efficiency is improving capex projects at various Multi-regional manufacturing market share Expansion in facilities for debottlenecking presence (Spain, Mexico, Japan, Korea, and India and modernisation. Hungary, and India) with a strong transnational 3) To capture better value management team. addition, now evolving with a new go-to market strategy with Global customer base with the new pipeline of APIs which clients in more than 70 are going off-patent till 2023 on countries worldwide. a finished formulation format Switching sources of Enjoys 42 distributor by filing MAs and offering the API supply is not easy arrangements across 56 finished formulation direct to due to evolving industry countries. customers thus bringing in dynamics and importance of compliance position Combination of quality value addition to the high value This is an important manufacturing and track APIs. barrier to the benefit of VIVIMED LABS LIMITED record of reliability with UQUIFA. marquee clients. 24 2) CDMO manufacturing a wide range of APIs benefits in the co- Based in Barcelona, Spain, development of the CDMO UQUIFA is one of the first products. API/ advanced intermediates manufacturing companies Superior cost-efficiencies offering R&D and cGMP owing to backward manufacturing (at its three US integration in the business. FDA approved facilities) across Initiatives in 2018-19 three continents. This segment accounts for about 25% of UQUIFA acquired the business UQUIFA’s topline. of SONEAS from Lochlomond and Euroventures which are Post Soneas acquisition, both based out of Hungary. The the Company will also use acquisition broadens UQUIFA’s manufacturing facilities in market offering in the CDMO Budapest, Hungary. Over the space by enhancing its ability last few years, the Company to now undertake preclinical, has built a reputation Phase I, II and III NCE project for itself as a trusted development. development partner for global pharmaceutical majors. Growth levers Leverage strengths The services include: of chemistry and Development of novel manufacturing presence synthetic routes and to gain market share in the optimisation of existing European Union (EU) and laboratory processes North America. Scale-up from Laboratory Scale up current to Pilot Plantand from Pilot relationships and leverage Plant to commercial preferred supplier Optimising laboratory relationships with big developed routes of pharma to increase wallet synthesis to reduce isolation share steps, improve yield, reduce Leverage new technologies batch production time and and big pharma customer eliminate the use of toxic base in EU and Japan to and/or dangerous reagents widen growth opportunities Transfer of commercial scale Showcase the full range processes capabilities(Lab-Pilot- Commercial Production) to Competitive advantage capitalise on opportunities Integrated solution provider following acquisition of Soneas. Protect clients’ intellectual property. Strong quality-control system approved by regulators and customers. Annual Report 2018-19 Technical expertise in 25 Business segment - 2 Finished Dosage Formulation

This is the value-added India market holding IP for year. This high-margin vertical segment within the pharma more than 85 bio-equivalent registered an EBIT of C48.64 business delivering quality products crore in 2018-19 – a 20.7% formulations and offering growth over the previous year. • Manufactures formulations novel drug systems across for leading companies like Initiatives in 2018-19 different delivery platforms. GSK, Dr Reddy’s, Cipla, P&G, The offerings basket comprises The Company has exited the Wockhardt, Abott etc. generic, branded and contract joint venture with Strides manufacturing segments. The • Pan India presence in towards the close of the year Company manufactures its Institution Businesses like for which has received C75 formulations at its facilities in ESIC, Railways and many crore. This fund was utilised for India. Central Government rate deleveraging the organisation contracts and for funding existing Competitive advantages verticals. This step will augment Performance in 2018-19 management focus to grow A dedicated team of 60 This value-added vertical the FDF portfolio across India, scientists working on registered revenue of C190.45 RoW and CIS markets. Other VIVIMED LABS LIMITED formulation developments crore in 2018-19 against initiatives during the year for USA / Australia / EU and C189.77 crore in the previous include: 26 CDMO business managed by Domestic generic business Finoso Pharma Pvt Ltd. Sustainable CMO business Total 25 projects signed for and delivering growth in the formulation development in branded segment 2018-19 Approved suppliers for many Signed the first out licensing government institutions like deal (for Ranolazine) with AFMSD, Railways, RMSCL and Celltrion, Korea for the US Central Government Health market Scheme. Signed an out licensing Domestic branded business deal for two projects with Expanded the Company’s Jubilant, Paliperidone ER and presence in three states Sildenafil PFOS namely Assam, Madhya Signed six projects signed for Pradesh and Gujarat. Canadian market under the Plan to launch 5-6 new CDMO initiative; filings are products in the gynaecology, targeted for March 2020. paediatric and dermatology Multiple other projects for segments in the current product development are year. under active consideration Launched new brands and with multiple players for new therapy segments in the Canadian and Russian Maharashtra, Orissa and markets. Chattisgarh territory with an Completed the development additional field force of 80+ of Bilastine; manufactured people to complement our the exhibit batches and existing team of 200+ people necessary work for filing was under the Viilberry division. completed. Growth drivers Negotiating with a leading Developing and launching South East Asian company formulations based on for collaborating on five UQUIFA APIs in India and products under the CDMO other parts of the world. initiative. Developing innovative Initiated work on securing formulations across multiple the EU GMP certification delivery platforms for which has become necessary different parts of the world. for establishing a meaningful presence in the Canadian, Focusing on expanding into

Australian and European non – USA based regulated Annual Report 2018-19 markets. generic markets such as CIS and African countries 27 Business segment - 3 Specialty Chemicals

Vivimed is a globally renowned products across multiple The globally recognised player in specialty chemicals applications trademark “Jaracol” catering space manufacturing active Capability in managing to a £10 billion retail market ingredients for home care, stringent expectations of notched up a growth of 5-6% personal care and industrial global MNCs y-o-y. products. The product range • Regulatory compliant Lateral shift into the Paint comprises of active ingredients infrastructure Industry by manufacturing for hair dyes, photochromic Anti-fungal ingredients. dyes, photochromic products, Performance in 2018-19 Lateral shift into the anti-microbials and imaging Revenue from the business Automotive Industry through chemicals. declined by 19% from C200.34 manufacturing air bag The Company’s manufacturing crore in 2017-18 to C162.69 actives. unit at Bidar, Karnataka is in 2018-19 while profitability Ventured into Printable designed in compliance with dropped sharper – EBIT stood Electronics, water treatment, US FDA norms and the highest at C43.63 crore in 2018-19 lens projects in India. against C62.23 crore in 2017-18. environmental standards. It Undertaken development This performance was primarily maintains world-class R&D efforts to bring in-house owing to reduced offtake by capabilities with scientists who higher volumes products customers and an increase in have a combined dye chemistry which have been traded input costs which could not be experience of greater than 100 from China. years, both in Huddersfield-UK passed on to customers owing Strengthened relation with and Hyderabad-India. to the dull environment. key customers in the Hair Initiatives in 2018-19 Competitive advantages Dye space; new products Initiated strategic being added to the basket Significantly large product manufacturing alliance with which positions Vivimed as a

VIVIMED LABS LIMITED portfolio multi nationals poised for key supply partner. Experience and expertise robust growth. in manufacturing complex 28 Financial performance (based on Consolidated Financial Statements)

The Company financial Employee related expenses and Shareholders’ Fund declined performance was rather other operating expenses have from C12,386.78 million as on subdued during the financial also increased owing to the March 31, 2018 to C9,437.94 year under review. The acquisition of the Soneas. million as on March. 31, heartening aspect for the 2019 owing to a reduction in year was a conscious effort As a result, EBITDA declined reserves and surplus. in reducing the debt burden from C2,216.14 million in and streamlining of day-to-day 2017-18 to C2,000.97 million The Company’s total debt operations. in 2018-19. Interest liability (current and non-current) during the year reduced increased from C8,239.95 Statement of Profit and Loss owing to the Managements million as on March 31, 2018 to Revenue from operations concerted efforts in reducing its C9,547.10 million as on March increased from C11,856.60 borrowings – it declined from 31, 2019. This is due to loans by million in 2017-18 to C13,151.70 C794.83 million in 2017-18 to offshore entities for operations. million in 2018-19 primarily C672.62 million in 2018-19. due to an increase in the Net Profit slipped from C760.90 pharmaceutical business; million in 2017-18 to C573.65 revenue from the specialty million in 2018-19. chemicals segment declined over the previous year levels. Balance Sheet

Business profitability took a hit The Capital Employed in as raw material costs increased the business declined from primarily owing to the spike in C11,116.87 million as on March prices of Key Starting Material 31, 2018 to C10,985.58 million (KSM) (raw materials for making as on March 31, 2019 owing APIs and active ingredients) to the Company’s efforts in owing to the supply chain strengthening its core and disruption originating from exiting the non-remunerative, China. non-core businesses.

Significant changes i.e. change of 25% or more in the key financial ratios In accordance with the amendments notified by SEBI in Regulation 17 of the SEBI (Listing Obligation and Disclosure Requirement) Regulation, 2015 on 9th May, 2018, the details of significant changes i.e. change of 25% or more in the key financial ratios as compared to the immediately previous financial year along with detailed explanations are reported hereunder

Key ratios Particulars 2018-19 2017-18 Change Operating Profit Margin (%) 9.96% 13.82 386 Bps Net Profit Margin (%) 4.28% 6.36% 208 Bps Annual Report 2018-19 29 Risk management “If you don’t invest in risk management, it doesn’t matter what business you’re

in, it’s a risky business.” Gary Cohn

Risk management at Vivimed is growth is being driven by two with low margins. This could an integral part of the business divisions within the healthcare impede the overall profitability model and focuses on making space APIs and Finished Dosage of the Company. the organisation emerge Forms (FDFs). In both these Globally, API stronger and profitable. segments, the Company has Mitigation: made strategic investments to manufacture is concentrated in Thephilosophy of risk grow each vertical. the Asian countries, especially management is underpinned in China and India owing to cost by identifying, assessing, API vertical: The Company efficiencies. Recently, China measuring and monitoring risks has a pipeline of molecules clamped down the operations on an ongoing basis.The risk which will be commercialised of some API manufacturers management framework goes in the next 12-18 months. owing to environmental beyond traditional boundaries These should provide healthy concerns which impacted the and seeks to involve all key volumes. Moreover, the global supply chain. Hence, managers of the Company. Company has acquired SONEAS global formulators are seeking which will provide a shot in for more reliable API partners The risk management the arm to the CDMO vertical in India. The Company becomes department is guided by (within the API business) a preferred choice owing to the well- established policies in terms of capability and proximity of its manufacturing and procedures that are geographic coverage. This presence (in Spain and Mexico) continuously benchmarked acquisition is expected to with large global formulators. with national and global accelerate growth over the best practices. The key medium term. Moreover, post-acquisition of risks that challenge the the CDMO unit, the Company Company progress and their FDF vertical: The Company will remain focused on mitigations are narrated for a have developed new products growing this vertical which is better understanding of the for its existing markets which a high-margin vertical with Company’s risk management are to be launched in the long-term revenue visibility. strategy. current year and beyond. More importantly, it reduces Moreover, the team is focused the pressure of competitive Growth risk on extending its presence intensity on the Company. The Company may not have the beyond its traditional markets adequate levers to accelerate to the pharmerging nations. As Leverage risk its growth momentum over the this strategy plays out, volumes The Company’s high reliance coming years. are expected to increase. on debt is eating into its profitability and hampering Mitigation: The Company’s Competition risk its ability to undertake growth VIVIMED LABS LIMITED growth is not dependent on a The API segment is a initiatives. single business segment – it’s competitive business space 30 Mitigation: The Company with stringent global regulatory Mitigation: Even though more is cognizant of its leverage standards. This is reflected than 80% of the Company’s position and is making in an important reality – its revenue accrues from exports, continuous efforts in key customers for all its the Company enjoys a global deleveraging its financial business verticals are global presence across nations. statements. During 2018- pharmaceutical giants. The Moreover, going forward, 19, the Company repaid Company’s facilities, systems the Company is working on borrowings which has helped and processes regularly widening its global footprint in reducing its financial undergo customer audit. for both its revenue verticals liability during the year under During the year under review, – APIs and FDFs. In addition, review. Further, the exit from the Company API facility the Company is also trying to the Strides joint venture successfully cleared a USFDA increase its domestic presence has brought in funds which audit without any observation. which, over a period of time, the Company has utilised Further, the Company’s should mitigate any geographic in reducing its debt burden. endeavour in exploring the concentration. Further increased scale of Japanese pharmaceutical operations should generate market (the most stringent Further, healthcare is a topic adequate cash flow to repay its global market) bears testimony which have always remained scheduled debts. This strategy to its disciplined adherence to high on priority list of every will, over the near term, will regulatory standards. government across the world strengthen the financial for it impacts every individual position of the Company. Geographic across the societal pyramid. concentration risk Hence, policies announcement Regulatory Risk More than 80% of the are largely favourable towards Regulatory non-compliance Company’s revenue accrues the healthcare sector across could threaten business from exports. Increasing the globe. continuity. protectionist strategies adopted by lawmakers of Mitigation: Vivimed has been various nations could impact at the forefront of complying the Company’s performance.

Internal Control like finance, human resource, The Company has appointed and regulatory affairs to core independent agencies as Systems and their operations like research, internal auditors. The prime adequacy manufacturing and supply objective of this audit is to test Vivimed maintains a system chain management. the adequacy and effectiveness of well-established policies of all internal control systems The internal audit function and procedures for internal and suggest improvements. is further strengthened in control of operations and Significant issues are brought consultation with statutory activities. It continuously to the attention of the audit auditors for monitoring strives to integrate the committee for periodical statutory and operational Annual Report 2018-19 entire organisation – from review. issues. strategic support functions 31 Corporate information

Board Of Directors Nomination And Remuneration Committee Mr. Santosh Varalwar – Managing Director Mr.Nixon Patel - Chairman Dr. Manohar Rao Varalwar – Whole Time Director Mrs.Umanath Varahabhotla - Member Mr. Subhash Varalwar – Non Executive Director Mr. Subhash Varalwar - Member Mr. Sandeep Varalwar – Whole Time Director Prof. Bhagvanth Rao Mamidpalli - Member Mr. Raghunandan Srirambatla – Whole Time Director & Chief Financial Officer Stakeholders Relationship Committee Prof. Bhagvanth Rao Mamidpalli –Chairman Mr. Subhash Varalwar - Chairman (Independent Director) Mr. Santosh Varalwar - Member Mr. Nixon Patel – Independent Director Dr. Manohar Rao Varalwar - Member Mrs.Umanath Varahabhotla – Independent Director Mr. Nixon Patel - Member

Company Secretary & Compliance Officer Registered Office Mr. Yugandhar Kopparthi Plot No.78/A, Kolhar Industrial Area, Bidar – 585403, Karnataka Statutory Auditors Tel: 08482 - 232045, Fax: 08482 – 232436 M/s PCN & Associates, Chartered Accountants Plot No.12, N Heights Ground Floor, Corporate Office Software Layout Unit, Cyberabad, North End, Road No.2, Hyderabad – 500081 Banjara Hills, Hyderabad – 500034 Tel: 91-40-6608 6608, Fax: 91-40-6608 6699 Secretarial Auditors Mr.N.V.S.S.Suryanarayana Rao, Registrar & Transfer Agents Practicing Company Secretary Aarthi Consultants Private Limited 1-2-285, Domalguda, Hyderabad – 500029 Plot No 232B, Road No. 6, Phone : 040-27638111/27634445, Samathapuri Colony, New Nagole, Fax : 040-27632184 Hyderabad- 500035 Email : [email protected] Cost Auditors Listing M/s. A.S. Rao & Co, Cost Accountants BSE Limited Dr No.6-2-981, Flat No. 501, National Stock Exchange of India Limited 5th Floor, Maruthi Plaza, Khairatabad, Hyderabad-50004 Bankers / Institutions CORPORATION BANK Audit Committee AXIS BANK LIMITED Mrs.Umanath Varahabhotla - Chairman Biotechnology Industry Research Assistance Council (BIRAC) Prof. Bhagvanth Rao Mamidpalli - Member ALLAHABAD BANK Mr.Sandeep Varalwar - Member INTERNATIONAL FINANCE CORPORATION STATE BANK OF INDIA Management Committee BANK OF BAHRAIN & KUWAIT B.S.C Dr. Manohar Rao Varalwar - Chairman EXPORT- IMPORT BANK OF INDIA Mr. Santosh Varalwar - Member AMBIT FINVEST PRIVATE LIMITED Mr. Sandeep Varalwar - Member

Risk Management Committee Mr. Santosh Varalwar - Member Mr. Raghunandan Srirambatla - Member Dr.Manohar Rao Varalwar - Member

Corporate Social Respossibility Committee

VIVIMED LABS LIMITED Prof. Bhagvanth Rao Mamidpalli - Member Mr.Santosh Varalwar - Member Dr.Manohar Rao Varalwar - Member 32 only) comprising 20,00,00,000(Twentycrores) Equity C111,00,00,000/- (Rupees OneHundredEleven Crores The AuthorisedShareCapital oftheCompanyis SHARE CAPITAL 2013. held on27.09.2019withintime asperCompaniesAct, FY 2017-2018declared at theAnnualGeneralMeeting year FY2019.TheCompanyhasnotpaid the dividend for Company have not recommend any dividend for the resources forthesame,boardofdirectors developments infutureandtoconservetheavailable Due toproposedinvestmentinexpansionsand DIVIDEND The financialperformanceofyourCompanyfortheyearended31stMarch,2019issummarized below: Financial Results 31st March,2019. Your Directorshavepleasureinpresentingthe31stAnnualReportofyourCompanyforfinancialyearended Dear Members, Report Board’s Proposed DividendTaxamount Proposed Dividendamount Net ProfitAfterTaxcarriedtoBalanceSheet Provision forTax Net ProfitBeforeTax Depreciation/Amortization Finance Charges Depreciation andAmortization(EBITDA) Earnings BeforeInterest,Tax, Gross Income Year ended 31.03.2019 2,603.42 (10.55) 182.59 524.03 757.92 61.86 51.30 Standalone 9 inaccordance withSection92(3)oftheCompanies Annual Returnason31stMarch, 2019inFormMGT- The detailsformingpartofthe extractoftheExtract EXTRACT OFANNUALRETURN only) EquitySharesofC2/-(RupeesTwoOnly)each. lakhs twentythreethousandninehundredandfifteen only) comprising8,25,23,915(EightcroresTwentyfive lakhs Twenty seven thousand Eight hundred and thirty Company isC16,50,27,830/-(RupeesSixteenCroresFifty Thousand only) each. The paid-up share capital of the the Company with a par value of (Seven LakhTenThousand only) PreferenceSharesof Shares ofC2/-(RupeesTwoOnly)each,and 7,10,000 - - Year ended 31.03.2018 2,633.16 (10.15) 181.43 518.02 787.97 98.67 88.52 32.79 6.68 Year ended 31.03.2019 13,381.30 2,000.97 573.66 660.45 667.90 672.62 Consolidated 86.79 C1,000/- (Rupees One - - (Cinmillion) Year ended 31.03.2018 11,952.70 2,216.14 760.89 857.10 564.20 794.83 96.21 - -

33 Annual Report 2018-19 34 VIVIMED LABS LIMITED (00117862) and Mr.NixonPatel(01717281)as an re-appointment ofProf.Bhagvanth MamidpalliRao resolution byshareholders.Hence theBoardproposes another termofuptofiveyears, onpassingofaspecial Company butshallbeeligible forre-appointment, a termuptofiveconsecutiveyears ontheBoardofa Act, 2013,anIndependentDirectorshallhold office for per theprovisionsofSection149Companies General Meetingtobeheldincalendaryear2019.As 30, 2014 for a period of 5 years up to 31st Annual at the26thAnnualGeneralMeetingheldonSeptember appointed as Independent Directors ofthe Company (00117862) and Mr. Nixon Patel (01717281), has been for re- appointment. Prof.Bhagvanth Mamidpalli Rao Company andbeingeligiblehaveofferedthemselves Rules, 2014andtheArticlesofAssociationyour Companies (Appointment and Qualification of Directors) Section 152oftheCompaniesAct,2013readwith at the ensuing AGM pursuant to the provisions of Whole TimeDirectors,areliabletoretirebyrotation Shri. Sandeep Varalwar and Shri. S.Raghunandan, Appointment: Retirement byRotationand Subsequent Re- DIRECTORS ANDKEYMANAGERIALPERSONNEL: Pte. Ltd held inVivimedLifeSciencesPvtLtdandStrides Soneas Research Ltd. The company sold its 50% stake acquired 100% stakeofSoneasChemicalsLtd and During theyearCompany’sstepdownsubsidiary the AnnualReport. the ConsolidatedFinancialStatementsformingpartof during thefinancialyearisgivenunder‘Annexure2’to contribution to the overall performance of the Company joint venturesandassociatecompaniestheir The highlightsofperformancesubsidiaries, Statements, formingpartoftheAnnualReport. AOC – 1, provided in Notes to the Consolidated Financial joint ventures/associatecompaniesisgiveninForm Financial StatementsoftheCompany’ssubsidiaries/ The statementcontaining the salient featuresofthe COMPANIES SUBSIDIARIES/ JOINTVENTURES/ASSOCIATE Annexure-1 tothisreport. Administration) Rules,2014,aresetoutherewithas Act, 2013 read with Companies (Management and re-enactment(s) forthetimebeinginforce).The salient Regulations (including any statutory modification(s) or Companies Act, 2013 and Regulation 19 of the Listing formulated in accordancewith Section 178of the with theNominationand Remuneration Policy The remunerationpaidtotheDirectors isinaccordance PARTICULARS OFEMPLOYEES: DIRECTORS, KEYMANAGERIALPERSONNELAND DISCLOSURE RELATINGTOREMUNERATIONOF nomination andremunerationpolicyoftheCompany. paid to the Directors is as per the terms laid out in the provisions oftheCompaniesAct,2013.Theremuneration a directorand other mattersareadopted as perthe qualifications, positive attributes, independence of and remuneration, including criteria for determining The policy of the Company on directors’ appointment REMUNERATION: POLICY ONDIRECTORS’APPOINTMENTAND management. Act and Listing Regulationsand are independentofthe of the Company fulfil the conditions specified in the In theopinionofBoard,IndependentDirectors being inforce). statutory modification(s) orre-enactment(s) for thetime Regulation 16(1)(b)ofListingRegulations(includingany Schedules and Rules issued thereunder as well as provisions oftheCompaniesAct,2013read with the the criteriaofindependenceasprescribed under the Independent Directorsconfirmingthattheymeet Your Companyhasreceiveddeclarationsfromallthe Declaration ofIndependence: enactment(s) forthetimebeinginforce). 2014 (includinganystatutorymodification(s)orre- and Remuneration of Managerial Personnel) Rules, Companies Act,2013readwith(Appointment with theprovisionsofSections2(51),203 Managerial PersonnelofyourCompanyinaccordance and Shri.K.Yugandhar, CompanySecretary,aretheKey Shri.S.Raghunandan, WholeTimeDirectorcumCFO Shri.Santosh Varalwar,ManagingDirector, re-appointment asDirectorsofyourCompany. in calendaryear2024.YourDirectorsrecommendtheir year 2019up to 36thAnnualGeneralMeeting to be held from 31stAnnualGeneralMeetingtobeheldincalendar Independent Directors of the Company commencing this report the Corporate Governance Report which forms part of criteria applied intheevaluationprocessaredetailed the Directors/ Board/ Committees was carried out. The process forevaluationofthe annual performance of or re-enactment(s) for the time being in force), the Regulations (includinganystatutorymodification(s) read withtheRulesissuedthereunderandListing Pursuant to the provisions of the Companies Act, 2013 EVALUATION OFBOARD’SPERFORMANCE: are providedintheCorporateGovernanceReport. meetings includingcompositionofvariouscommittees (Seven) board meetings were held. The details of the through circulation. During the yearunderreview, 7 business needs,approvalistakenbypassingresolutions them toplantheirschedule.However,incaseofurgent finalized in consultation with the Directors to facilitate and atentativecalendarofthemeetingsshallbe The Boardand Committee meetingsarepre-scheduled BOARD MEETINGS: www.vivimedlabs.com. conducted are available on the website of the Company model etc.ThedetailsoftheFamiliarisation Programme the industryinwhichCompanyoperates,business roles, rights, responsibilities in the Company, nature of Directors tofamiliarisethemwiththeCompany,their place a Familiarisation Programme for the Independent 25(7) oftheListingRegulations,Companyhasputin In compliancewiththerequirementsofRegulation INDEPENDENT DIRECTORS FAMILIARISATION PROGRAMMEFORTHE com). on the website of your Company (www.vivimedlabs. set outinAnnexure-3tothisreportandisalsoavailable in respect of Directors/ employees of your Company is and RemunerationofManagerialPersonnel)Rules,2014 Companies Act,2013readwith(Appointment The informationrequired underSection197ofthe your Company. receive remunerationfromanyofthesubsidiaries The ManagingDirectorofyourCompanydoesnot Report whichformspartofthisreport. Policy havebeenoutlinedintheCorporateGovernance aspects covered in the Nomination and Remuneration (ii) (i) AUDITORS ANDAUDITORS’REPORT Guidelines. Gift Policy,SexualHarassmentPolicyandRedressal through Whistle Blower Policy, Anti-Corruption Policy, Corruption andunethicalconduct.Theseareensured environment. WefollowZeroTolerancetowards to ensure professional ethics and harmonious working The Companyhasmanysystems,processesandpolicies has notreceived any complaintsunderthepolicy. workplace. Duringtheyearunderreview,Company for Prevention of Sexual Harassment of Women at The Companyhasformulatedandimplemented a policy POLICY ONPREVENTIONOFSEXUALHARASSMENT: among theemployees. competitive spirit and encourage bonding teamwork were conducted across theorganizationtoenhance various skill-setsand behavior. Annualsportsandgames quality resources and suitable training is imparted on philosophy, utmostcareisbeingexercisedtoattract to attain success in the organization. In line with this committed humanresourcesarevitallyimportant The managementbelievesthatthecompetentand HUMAN RESOURCES: 2019-20. Asrequired by theAct,remuneration of Cost Auditors of the Company for the Financial Year Accountants, (FirmRegistration No.000326),asthe Your BoardhasappointedM/s.A.S.Rao &Co,Cost the costrecordsinrespectofits business. Amendments Rules,2014,the Companymaintains 2014 andtheCompanies(CostRecordsAudit) 2013 read with Companies (Audit & Auditors’) Rules, In accordancewithSection148oftheCompaniesAct, Cost Auditors: opinion, bytheStatutoryAuditors. March 31,2019,hasbeenissued with anunmodified The Auditor’sReportforthefinancialyearended of theCompany. the conclusionof35thAnnualGeneralMeeting (five) yearsatthe30thAnnualGeneralMeetingtill Statutory AuditorsoftheCompanyforaperiod5 Registration No.016016S),wereappointed as the M/s.PCN &Associates,CharteredAccountants,(Firm Statutory Auditors:

35 Annual Report 2018-19 36 VIVIMED LABS LIMITED forms partofthisReport. are included in the Corporate Governance Report, which The details pertaining to composition of Audit Committee AUDIT COMMITTEECOMPOSITION except nonpaymentofdividentforFY18. financial statementsformspartofthisannualreport of related party disclosures as stated in the notes to the AOC-2 andattachedthesameasAnnexure-5.Thedetails to inSec.188(1)oftheAct,havebeenprovidedForm into by the Company with the Related Parties referred the particulars of contracts or arrangements entered 2013 and Rule 8(2)ofCompanies(Accounts)Rules,2014, In accordancewithSec134(h)oftheCompaniesAct, RELATED PARTYTRANSACTIONS: this report. in theStandaloneFinancialStatementsformingpartof Powers) Rules,2014,ason31stMarch,2019,aresetout read withtheCompanies(MeetingsofBoardandits provisions ofSection186theCompaniesAct,2013 Details ofloans,guaranteesand investments underthe LOANS, GUARANTEES&INVESTMENTS Secretarial Standardsasamended from timetotime. The Company has complied with the applicable SECRETARIAL STANDARDS (iii) SecretarialAuditors&AuditReport: their ratification. Auditors is being placed before the Members for and accordinglytheresolutionrelatingtoCost the CostAuditorshastoberatifiedbyMembers except non-paymentofDividend for FY2018. or adverseremarksintheSecretarialAuditReport Report. Therearenoqualifications, reservations Report issued in Form MR-3is in Annexure -4 to this for thefinancialyear2018-19.TheSecretarialAudit undertake theSecretarialAuditofCompany Secretary (CertificateofPracticeNo.2886),to Mr.N.V.S.S.Suryanarayana Rao, Practicing Company Personnel) Rules,2014,theCompanyhasappointed (Appointment and Remuneration of Managerial Companies Act, 2013 and Rule 9 of the Companies Pursuant totheprovisionsofSection204 and AuditCommittee. estimates arealsoapproved by theStatutoryAuditors and when appropriate. The basis of such judgments and and usesexternalagenciesto verify/validatethemas makes judgments and estimates based on sound policies Your Company in preparing its financial statements the management. center ensures adherence to all policies laid down by handles all payments made by your Company. This Your Companyoperatesasharedservicecenterwhich other estimates. accounting hygieneand accuracy ofprovisionsand certify adherence tovariousaccountingpolicies, certification mechanism wherein the line managers Your Companyhasarobustfinancialclosureself- underlying ERPsystem. and timelyupdationofvariousmasterdatainthe Company has automated processes to ensure accurate seamlessly withtheunderlyingbooksofaccount.Your configured to ensure that all transactions are integrated form andbackedupperiodically.TheERPsystemis many ofitsaccountingrecordsstoredinanelectronic Your CompanyoperatesinSAP,anERPsystem,andhas consolidation. and certifiedbytheirrespectiveStatutoryAuditorsfor The accounts of the subsidiary companies are audited are prescribedtothesubsidiariesofyourCompany. The policiestoensureuniformaccountingtreatment with theStatutoryAuditors. are approvedbytheAuditCommitteeinconsultation accounting principles in India. Changesin policies, if any, 2014. Theseareinaccordancewithgenerally accepted read with Rule 7 of the Companies (Accounts) Rules, applicable provisions,ifany,oftheCompaniesAct,2013 that continue to apply under Section 133 and other in the Companies (Accounting Standards) Rules, 2006 are inlinewiththeAccountingStandardsprescribed Your Company has adopted accounting policies which statements, someofwhichareoutlinedbelow. financial controls with reference to the financial Your Company has put in place adequate internal FINANCIAL STATEMENTS INTERNAL FINANCIALCONTROLSRELATEDTO Schedule V(C) of the SEBI (LODR) Regulations, 2015 is followed by yourCompany,asstipulated under A separatesectiononCorporate Governancepractices CORPORATE GOVERNANCEREPORT: developments duringthefinancialyearFY2019. adequacy, risk management systems and other material chemicals, API’s business, internal controls and their various businesses viz.,thepharmaceuticals,Specialty performance andstateofaffairsyourCompany’s overall industrystructure,economicdevelopments, integral partofthisreportand gives detailsofthe The Management Discussion and Analysis forms an MANAGEMENT DISCUSSIONANDANALYSIS enactment(s) forthetimebeinginforce). 2014 (includinganystatutorymodification(s)orre- with theCompanies(AcceptanceofDeposits)Rules, Sections 73and74oftheCompaniesAct,2013read not accepted any depositwithinthemeaningof During the year under review, your Company has PUBLIC DEPOSITS part ofthisReport. review havebeenprovidedinAnnexure-6andforms undertaken bytheCompanyduring theyearunder Social ResponsibilityandtheProjectsPrograms Board ofDirectorshad framed thepolicyonCorporate VII oftheCompaniesAct,2013,CSRCommittee Pursuant totheprovisionsofSection135andSchedule CORPORATE SOCIALRESPONSIBILITYINITIATIVES: review everyquarterbyitsStatutoryAuditors. Your CompanygetsitsStandaloneaccountslimited the WhistleBlowerPolicy. noticed is tobereported and actioned upon inlinewith accurately and in atimelymanner.Anynon-compliance requires employeestoupdateaccountinginformation its employees along with a Whistle Blower Policy which Your Company has a code of conduct applicable to all action, wherevernecessary. plans acrossvariousparametersandtakesnecessary performance ofyourCompanyagainsttheapproved The Managementperiodicallyreviewsthefinancial Any incidentsthatarereported areinvestigatedand or againstyourCompany. being adopted against themor any instances of fraud by harassment, victimization, any other unfair practice can raiseconcernsregardinganydiscrimination, Regulation 22oftheListingRegulations.employees of Section177(10)theCompaniesAct,2013and Blower Policy which is incompliancewith the provisions the Board of Directors have formulated a Whistle ethical, moral and legal business conduct. Accordingly, Your Companyiscommittedtohigheststandardsof WHISTLE BLOWERPOLICY/VIGILMECHANISM future. the going concern status and Company’s operations in by theregulatorsorcourtstribunals whichimpact There arenosignificantandmaterialorderspassed THE REGULATORSORCOURTSTRIBUNALS SIGNIFICANT ANDMATERIALORDERSPASSEDBY Regulations, 2014isavailableontheCompany’swebsite. Board ofIndia(ShareBasedEmployeeBenefits) Scheme in compliance with Securities and Exchange Disclosure with respect to the Employees’ Stock Option shares ofC2/-each(facevalue). shares coveredbysuchoptionsare25,00,000equity ESOP 2017 at options to eligible employees under the Vivimed Labs During the year, the Company has granted 25,00,000 EMPLOYEES’ STOCKOPTIONSCHEMES -7 andformspartofthisReport. (Accounts) Rules, 2014, is appended hereto as Annexure Companies Act,2013,readwithRule8(3)of The information required under Section 134 (3)(m)ofthe EARNINGS/OUTGO: ABSORPTION ANDFOREIGNEXCHANGE CONSERVATION OFENERGY,TECHNOLOGY Report onCorporateGovernanceReport. of theSEBI(LODR)Regulations,2015isannexedto corporate governance as stipulated under Schedule V (E) the auditorswithregardtocomplianceofconditions enclosed formingpartofthisreport.Thecertificate C35/- per option (exercise price). The

37 Annual Report 2018-19 38 VIVIMED LABS LIMITED Board ofDirectors. and associate companies, as approved by the respective financial statementsofyourCompany, itssubsidiaries have beenpreparedonthebasis ofaudited/unaudited Regulations”).The consolidated financial statements Regulations, 2015(hereinafterreferred to asthe“Listing SEBI (ListingObligationsandDisclosureRequirements) applicable Accounting Standards and the provisions of Act, 2013readwiththeRulesissuedthereunder, compliance withapplicable provisionsoftheCompanies Company forthefinancialyearFY2019arepreparedin The ConsolidatedFinancialStatementsofyour CONSOLIDATED ACCOUNTS f) e) d) c) b) a) DIRECTORS RESPONSIBILITYSTATEMENT: website www.vivimedlabs.com. The Whistle Blower Policy is also available on your Company’s suitable action taken in line with the whistle blower policy. effectively. and thatsuchsystemswereadequateoperating compliance with the provisions ofallapplicable laws the Directorshavedevisedpropersystemstoensure were operatingeffectively;and such internalfinancialcontrolsareadequateand controls to be followed by the Company and that the Directorshavelaiddowninternalfinancial a goingconcernbasis; the Directorshavepreparedannualaccountson irregularities; and forpreventingdetectingfraudother Act forsafeguardingtheassetsofCompany records inaccordancewiththeprovisionsof care forthemaintenanceofadequate accounting the Directors have taken proper and sufficient of theCompanyforyearended on thatdate; the CompanyasatMarch31,2019andofprofit to giveatrueandfairviewofthestateaffairs and estimates that are reasonableand prudent soas and applied themconsistentlyandmadejudgments the Directors have selected such accounting policies are nomaterialdeparturesfromthesame; accounting standardshavebeenfollowedandthere financial yearendedMarch31,2019,theapplicable in thepreparationofannualaccountsfor Date: 09.08.2019 Place: Hyderabad

the Company. investors forthefaiththattheycontinuetoreposein The Directorsalsowishtoexpresstheirgratitude continued support and valuable cooperation. medical professionalsandbusinessassociatesfortheir employees andbusinesspartners,Company’sbankers, Your Directorswishtothankallstakeholders, ACKNOWLEDGEMENTS in delaysmeetingdebtobligations. company attheback of cashflowmismatchesresulting account of deterioration in the liquidity profile of the and “CARE D” for short-term bank facilities due to on the Company as “CARE D”, for long-term bank facilities CARE Ratings Limited has reaffirmed the credit rating for CREDIT RATING have beenfullyinsured. including buildings, plant and machinery and stocks All propertiesandinsurableinterestsoftheCompany INSURANCE: the Company. There has been no change in the nature of business of the end of thefinancialyearanddatethisreport. affecting thefinancialpositionofCompanybetween There have been no material changes and commitments MATERIAL CHANGESEFFECTINGTHECOMPANY: For andonbehalfoftheBoard ManagingDirector aoa Ro Varalwar Rao Manohar Whole timeDirector Santosh Varalwar Sd/- Sd/- ANNEXURE -1TO BOARD’S REPORT (All thebusinessactivitiescontributing10%ormoreoftotal turnoverofthecompanyshallbestated) II. PRINCIPALBUSINESSACTIVITIESOFTHECOMPANY I. REGISTRATION&OTHERDETAILS: No. S. 1 vii. iii. iv. vi. ii. v. i. Name oftheCompany Registration Date CIN Address oftheRegistered office and contact details Category/Sub-Category oftheCompany The NationalStockExchangeofIndiaLimited(NSE) BSE Limited(BSE) Stock Exchange(s) Whether shareslisted on recognized Name and Address ofRegistrar&TransferAgents(RTA) products /services Name and Description ofmain Products Pharmaceutical /chemical [Pursuant toSection92(3)oftheCompaniesAct,2013andRule12(1) EXTRACT OFANNUALRETURNASON31STMARCH,2019 (Management and Administration) Rules,2014] NIC CodeoftheProduct/service 21002 FORM NO.MGT-9 Vivimed Labs Limited 22/09/1988 L02411KA1988PLC009465 www.vivimedlabs.com 232436 Phone No.:+91-8482-232045,+91-8482- Karnataka-585403,INDIA Plot No.78/A,KolharIndustrialArea,Bidar, Vivimed Labs Limited Limited Company Email :[email protected] Fax :+91-40-27632184 Phone :+91-40-27638111/27634445, 500029, INDIA 1-2-285, Domalguda,Hyderabad,Telangana- Aarthi ConsultantsPrivateLimited VIVIMEDLAB 532660 YES company % tototalturnoverofthe 100%

39 Annual Report 2018-19 40 VIVIMED LABS LIMITED

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES [No. of Companies for which information is being filled] - 16 SN Name and address of the Company Company Identification Holding/ % of Applicable Number Subsidiary/ Shares Held Section of Associate Companies Act, 2013 Finoso Pharma Pvt ltd U24231TG2009PTC064774 Subsidiary a)1015000 equity shares held by 2(87) SP Biotech Park - Phase-I, Block-I Turkapally, Vivimed Labs Limited 1 Shameerpet Mandal Hyderabad TG 500078 IN b) C10 each c) 100% Vivimed Specialty Chemicals Private Limited U24100KA2015PTC081669 Subsidiary a) 10,000 equity shares held by 2(87) PLOT NO. 78-A, KOLHAR INDUSTRIAL AREA,, Vivimed Labs Limited 2 KOLHAR, BIDAR - 585403, b) C10 each Karnataka, INDIA c) 100% held by Vivimed Labs Limited UQUIFA India Private Limited U24304TG2017FTC118240 Subsidiary a)10,000 equity shares held by Union 2(87) North End, 8-2120/86/9/A/1 & 12,, Anil Athmaja Quimico Farmaceutica S.A.U 3 HousingSocty, Road No: 2,, Banjara Hills, b) C10 each Hyderabad, Telangana, India, 500034 c) 100% held by Union Quimico Farmaceutica S.A.U Vivimed Holdings Limited Not Applicable Subsidiary a) 10,000 equity shares held by 2(87) Rooms 2702-03, 27/F., Bank of East Asia Harbour Vivimed Labs Limited 4 View Centre, b) HK $ 1 each 56 Gloucester Road, c) 100% held by Vivimed Labs Limited Wan Chai, Hong Kong Vivimed Labs Europe Limited Not Applicable Subsidiary a) 1,00,000 2(87) PO BOX B3,Leeds Road, b) GB £ 1 each 5 Huddersfield, HD1 6BU c)100% held through Vivimed Holdings Limited) Vivimed Labs USA INC. Not Applicable Subsidiary a) 1000 2(87) 6 1100 Cornwall Road, Suite 160, b) US $ 0.01 each Monmouth Junction, NJ 08852 c) 100% held by Vivimed Labs Limited Vivimed Labs Mauritius Limited Not Applicable Subsidiary a) 90,00,000 equity shares 2(87) C/o First Island Trust Company Ltd, ST. James Court, b) US $ 1 each 7 Suite 308, ST. Denis Street, c) 100% held by Vivimed Labs Limited Port Louis, Mauritius Vivimed Labs UK Limited Not Applicable Subsidiary a) 1,30,53,755 2(87) PO BOX B3,Leeds Road, b) £ 1 each 8 HuddersfieldHD1 6BU c) 100% held through Vivimed Labs (Mascarene) Limited SN Name and address of the Company Company Identification Holding/ % of Applicable Number Subsidiary/ Shares Held Section of Associate Companies Act, 2013 Vivimed Labs Spain S.L. Not Applicable Subsidiary a) 18,27,5000 2(87) c/ Mallorca, 262, 3º -08008 b) E.1 each 9 BARCELONA-SPAIN- c) 100% held through Vivimed Labs UK Limited Union Quimico Farmaceutica S.A.U Not Applicable Subsidiary a) 8,23,529 nominative shares 2(87) c/ Mallorca, 262, 3º -08008 b) E 3.726275 each 10 BARCELONA-SPAIN- c) 100% held through Vivimed Labs Spain S.L. Holliday International Limited Not Applicable Subsidiary a) 101 ordinary shares 2(87) PO BOX B3,Leeds Road, b)£ 1 each 11 Huddersfield,HD1 6BU c) 100% held through Vivimed Labs Spain, S.L. Uquifa Mexico S.A. de C.V. Not Applicable Subsidiary a) 36,54,96,000 2(87) 37 Este, No 126, Civac, 62570 Jiutepec, Morelos, b) No nominal value México c) 100% 36,54,95,999 fully paid shares 12 held by Holliday International Limited and 1 fully paid share held by Vivimed Labs UK Limited Vivimed Labs (Mascarene) Ltd Not Applicable Subsidiary a) 1000 ordinary shares 2(87) C/o First Island Trust Company Ltd, b)USD 1 each 13 ST. James Court, Suite 308, c) 100% held through Vivimed Labs ST. Denis Street, Port Louis, Mauritius Mauritius Limited Soneas Chemicals Ltd Not Applicable Subsidiary a) HUF 39,592,790 2(87) Illatos út 33. b) 1 business quota 14 H-1097 Budapest c) 100% held through Vivimed Labs Hungary Spain S.L. Soneas Research Ltd Not Applicable Subsidiary a) HUF 462,400,000 2(87) Illatos út 33. b) 1 business quota 15 H-1097 Budapest c) 100% held through Vivimed Labs Hungary Spain S.L. Associates Yantra Green Power Pvt. Ltd U40108TG2013PTC087049 Associate 2500000 shares of C10 each 2(6) PLOT NO.1303 AND 1304, 35.66% held by Vivimed Labs Ltd SY.NO.11/27, SECOND FLOOR, 1 KHANAMET, HI-TECH CITY, AYYAPPA SOCIETY, MADHAPUR, HYDERABAD,TELANGANA

41 Annual Report 2018-19 42 VIVIMED LABS LIMITED

VI. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) A. Category-wise Share Holding Category of Sharehold- No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change ers [As on 31-March-2018]@ D2/- each [As on 31-March-2019]@ D2/- each during Demat Physical Total % of Total Demat Physical Total % of Total the year Shares Shares A. Promoters (1) Indian a) Individual/ HUF 1,70,72,045 - 1,70,72,045 20.7 1,60,72,045 - 1,60,72,045 19.48 1.22 b) Central Govt 0 - 0 0.00 0 - 0 0.00 0.00 c) State Govt(s) 0 - 0 0.00 0 - 0 0.00 0.00 d) Bodies Corp. 1,31,62,000 - 1,31,62,000 15.95 1,23,12,000 - 1,23,12,000 14.92 1.03 e) Banks / FI 0 - 0 0.00 0 - 0 0.00 0.00 f) Any other 0 - 0 0.00 0 - 0 0.00 0.00 Total shareholding of 3,02,34,045 - 3,02,34,045 36.64 2,83,84,045 - 2,83,84,045 34.39 2.25 Promoter (A) B. Public Shareholding 1. Institutions a) Mutual Funds 0 - 0 0.00 0 - 0 0.00 0.00 b) Banks / FI 2,43,311 - 2,43,311 0.29 3,95,555 - 3,95,555 0.48 (0.19) c) Central Govt 96,130 - 96,130 0.12 96,130 - 96,130 0.12 0.00 d) State Govt(s) 0 - 0 0.00 0 - 0 0.00 0.00 e) Venture Capital Funds 0 - 0 0.00 0 - 0 0.00 0.00 f) Insurance Companies 0 - 0 0.00 0 - 0 0.00 0.00 g) FIIs 0 - 0 0.00 0 - 0 0.00 0.00 h) Foreign Venture 0 - 0 0.00 0 - 0 0.00 0.00 Capital Funds i) Others (specify) 43,25,548 - 43,25,548 5.24 33,57,497 - 33,57,497 4.07 1.17 -Foreign Portfolio Investor Sub-total (B)(1):- 46,64,989 - 46,64,989 5.65 38,49,182 - 38,49,182 4.66 0.99 2. Non-Institutions a) Bodies Corporate i) Indian 52,90,906 - 52,90,906 6.41 66,35,942 - 66,35,942 8.04 (1.63) ii) Overseas 91,50,685 - 91,50,685 11.09 91,50,685 - 91,50,685 11.09 0.00 Category of Sharehold- No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change ers [As on 31-March-2018]@ D2/- each [As on 31-March-2019]@ D2/- each during the year Demat Physical Total % of Total Demat Physical Total % of Total Shares Shares b) Individuals i) Individual 2,24,91,250 1,07,060 2,25,98,310 27.45 2,35,92,066 40,870 2,36,32,936 28.64 (1.19) shareholders holding nominal share capital upto C2 lakh ii) Individual 34,92,184 1,87,500 36,79,684 4.45 44,47,735 - 44,47,735 5.39 (0.94) shareholders holding nominal share capital in excess of C2 lakh c) Others (specify)- 5,69,925 - 5,69,925 0.69 17,000 - 17,000 0.02 0.67 NBFCs Registered with RBI Non Resident Indians 34,68,266 - 34,68,266 4.2 40,48,647 - 40,48,647 4.91 (0.71) Foreign Nationals - 13,69,840 13,69,840 1.66 - 1369840 1369840 1.66 0.00 Clearing Members 14,41,015 - 14,41,015 1.75 9,55,116 - 9,55,116 1.16 0.59 Trusts 0 - 0 0.00 32,787 - 32,787 0.04 (0.04) Foreign Bodies - D R 0 - 0 0.00 0 - 0 0.00 0.00 Sub-total (B)(2):- 4,59,04,231 17,20,650 4,76,24,881 57.71 4,88,79,978 14,10,710 5,02,90,688 60.94 (3.23) Total Public Sharehold- 5,05,69,220 17,20,650 5,22,89,870 63.36 5,27,29,160 14,10,710 5,41,39,870 65.61 (2.25) ing (B)=(B)(1)+ (B)(2) C. Shares held by ------Custodian for GDRs & ADRs Grand Total (A+B+C) 8,08,03,265 17,20,650 8,25,23,915 100.00 8,11,13,205 14,10,710 8,25,23,915 100.00 0

43 Annual Report 2018-19 44 VIVIMED LABS LIMITED

B. Shareholding of Promoter- SN Shareholder’s Name Shareholding at the beginning of the year Shareholding at the end of the year % change in (As on 01.04.2018) @D2/- each (As on 31.03.2019) @D2/- each sharehold- ing during No. of Shares % of total %of Shares No. of Shares % of total %of Shares the year Shares of the Pledged / Shares of the Pledged / company encumbered company encumbered to total to total shares shares 1 BBR PROJECTS PRIVATE LIMITED 1,31,62,000 15.94 10.08 1,23,12,000 14.92 7.46 1.02 2 SANTOSH VARALWAR 60,99,050 7.39 6.96 55,99,050 6.78 6.36 0.61 3 VARALWAR SANDEEP 30,69,765 3.72 3.63 30,69,765 3.72 3.64 0 4 MANOHAR RAO VARALWAR 17,94,225 2.17 1.42 12,94,225 1.57 1.42 0.61 5 SUJATHA VARALWAR 18,93,995 2.3 2.3 18,93,995 2.30 2.30 0 6 VITHABAI VARALWAR 9,73,345 1.18 1.18 9,73,345 1.18 1.18 0 7 VARALWAR SUBHASH 16,16,200 1.96 1.51 16,16,200 1.96 1.51 0 8 SHEETAL VARALWAR 5,68,985 0.69 0 5,68,985 0.69 0 0 9 S RAGHUNANDAN 3,17,500 0.38 0 3,17,500 0.38 0 0 10 VIJAYKUMAR VARALWAR 1,50,000 0.18 0 1,50,000 0.18 0 0 11 MADHAVI VARALWAR 2,00,000 0.24 0 2,00,000 0.24 0 0 12 MAMATHA GURNUKAR 1,50,000 0.18 0.18 1,50,000 0.18 0.18 0 13 VARALWAR PADMA 33,250 0.04 0 33,250 0.04 0 0 14 NEELIMA VIJAYA VARALWAR 1,00,000 0.12 0 1,00,000 0.12 0 0 15 SATISH GOOTY AGRAHARAM 55,635 0.07 0 55,635 0.07 0 0 16 CHANDRASHEKHARRAO SUDIGALI 50,095 0.06 0 50,095 0.06 0 0 3,02,34,045 36.64 27.27 2,83,84,045 34.39 24.04 2.25

* The % of shares pledged/encumbered represents % of shares pledged/encumbered as a % of the total shares of your Company. The term “encumbrance” has the same meaning as assigned to it in Regulation 28(3) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regula- tions, 2011 C. Change in Promoters’ Shareholding (please specify, if there is no change) SN Particulars Shareholding Date Increase / Reason Cumulative Shareholding Decrease in during the year (01.04.2018 Shareholding to 31.03.2019) No. of Shares at % of total No. of Shares % of total the beginning Shares Shares (01.04.2018) / of the of the end of the year Company Company (31.03.219) 1,31,62,000 15.95 01.04.2018 - - 1,31,62,000 15.95 1,31,62,000 15.95 25.05.2018 5,00,000 Buy/ 1,36,62,000 16.55 Transfer 1,36,62,000 16.55 03.08.2018 (50,000) Buy/ 1,36,12,000 16.49 1 BBR PROJECTS PRIVATE LIMITED Transfer 1,36,12,000 16.49 18.01.2019 (13,00,000) Buy/ 1,23,12,000 14.91 Transfer 1,23,12,000 14.91 31.03.2019 - - 1,23,12,000 14.91 100000 0.12 01.04.2018 - - 100000 0.12 2 NEELIMA VIJAYA VARALWAR 100000 0.12 31.03.2019 - - 100000 0.12 150000 0.18 01.04.2018 - - 150000 0.18 3 VIJAYKUMAR VARALWAR 150000 0.18 31.03.2019 - - 150000 0.18 16,16,200 1.96 01.04.2018 - - 16,16,200 1.96 4 VARALWAR SUBHASH 16,16,200 1.96 31.03.2019 - - 16,16,200 1.96 200000 0.24 01.04.2018 - - 200000 0.24 5 MADHAVI VARALWAR 200000 0.24 31.03.2019 - - 200000 0.24 9,73,345 1.18 01.04.2018 - - 9,73,345 1.18 6 VITHABAI VARALWAR 9,73,345 1.18 31.03.2019 - - 9,73,345 1.18 30,69,765 3.72 01.04.2018 - - 30,69,765 3.72 7 VARALWAR SANDEEP 30,69,765 3.72 31.03.2019 - - 30,69,765 3.72 60,99,050 7.39 01.04.2018 - - 60,99,050 7.39 60,99,050 7.39 18.01.2019 (5,00,000) Buy/ 55,99,050 6.78 8 SANTOSH VARALWAR Transfer 55,99,050 6.78 31.03.2019 - - 55,99,050 6.78 17,94,225 2.17 01.04.2018 - - 17,94,225 2.17 17,94,225 2.17 25.05.2018 (5,00,000) Buy/ 12,94,225 1.57 9 MANOHAR RAO VARALWAR Transfer 12,94,225 1.57 31.03.2019 - - 12,94,225 1.57 1,50,000 0.18 01.04.2018 - - 1,50,000 0.18 10 MAMATHA GURNUKAR 1,50,000 0.18 31.03.2019 - - 1,50,000 0.18

45 Annual Report 2018-19 46 VIVIMED LABS LIMITED

SN Particulars Shareholding Date Increase / Reason Cumulative Shareholding Decrease in during the year (01.04.2018 Shareholding to 31.03.2019) No. of Shares at % of total No. of Shares % of total the beginning Shares Shares of the (01.04.2018) / of the Company end of the year Company (31.03.219) 55635 0.06 01.04.2018 - - 55635 0.06 11 SATISH GOOTY AGRAHARAM 55635 0.06 31.03.2019 - - 55635 0.06 18,93,995 2.30 01.04.2018 - - 18,93,995 2.30 12 SUJATHA VARALWAR 18,93,995 2.30 31.03.2019 - - 18,93,995 2.30 568985 0.69 01.04.2018 - - 568985 0.69 13 SHEETAL VARALWAR 568985 0.69 31.03.2019 - - 568985 0.69 33250 0.04 01.04.2018 - - 33250 0.04 14 VARALWAR PADMA 33250 0.04 31.03.2019 - - 33250 0.04 317500 0.38 01.04.2018 - - 317500 0.38 15 S RAGHUNANDAN 317500 0.38 31.03.2019 - - 317500 0.38 50095 0.06 01.04.2018 - - 50095 0.06 16 CHANDRASHEKHARRAO SUDIGALI 50095 0.06 31.03.2019 - - 50095 0.06

D. Shareholding Pattern of top ten Shareholders: (Other than Directors, Promoters and Holders of GDRs and ADRs): Sl. Shareholder’s Name Shareholding Cumulative Shareholding during the year No. No. of Shares % of total Shares of No. of Shares % of total Shares of the Company the Company 1 KITARA PIIN 1102 At the beginning of the year 9150685 11.08 9150685 11.08 Bought during the year - - - - Sold during the year - - - - At the end of the year 9150685 11.08 9150685 11.08 2 WILLIAM F HARVEY At the beginning of the year 1369840 1.66 1369840 1.66 Bought during the year - - - - Sold during the year - - - - At the end of the year 1369840 1.66 1369840 1.66 3 SAMEER MAHENDRA SAMPAT At the beginning of the year 1359165 1.64 1359165 1.64 Bought during the year - - - - Sold during the year - - - - Sl. Shareholder’s Name Shareholding Cumulative Shareholding during the year No. No. of Shares % of total Shares of No. of Shares % of total Shares of the Company the Company At the end of the year 1359165 1.64 1359165 1.64 4 KITARA PIIN 1101 At the beginning of the year 1219300 1.47 1219300 1.47 Bought during the year - - - - Sold during the year - - - - At the end of the year 1219300 1.47 1219300 1.47 5 TUSHAR RAMESHCHANDRA MEHTA At the beginning of the year 330923 0.40 330923 0.40 Bought during the year 684052 0.82 684052 0.82 Sold during the year - - - - At the end of the year 1014975 1.22 1014975 1.22 6 PREMIER INVESTMENT FUND LIMITED At the beginning of the year 800000 0.96 800000 0.96 Bought during the year - - - - Sold during the year - - - - At the end of the year 800000 0.96 800000 0.96 FIDELITY PURITAN TRUST-FIDELITY LOW- 7 PRICED STOCK FUND At the beginning of the year 600000 0.72 600000 0.72 Bought during the year - - - - Sold during the year - - - - At the end of the year 600000 0.72 600000 0.72 RAJASTHAN GLOBAL SECURITIES PRIVATE 8 LIMITED At the beginning of the year 38474 0.04 38474 0.04 Bought during the year 560562 0.67 560562 0.67 Sold during the year - - - - At the end of the year 599036 0.73 599036 0.73 9 EDELWEISS CUSTODIAL SERVICES LIMITED At the beginning of the year 653604 0.79 653604 0.79 Bought during the year 892544 1.08 892544 1.08 Sold during the year 997855 1.20 997855 1.20 At the end of the year 548293 0.66 548293 0.66

47 Annual Report 2018-19 48 VIVIMED LABS LIMITED

Sl. Shareholder’s Name Shareholding Cumulative Shareholding during the year No. No. of Shares % of total Shares of No. of Shares % of total Shares of the Company the Company 10 WINSTAR E-COM PRIVATE LIMITED At the beginning of the year 490000 0.59 490000 0.59 Bought during the year - - - - Sold during the year - - - - At the end of the year 490000 0.59 490000 0.59

1. The above information is based on the weekly beneficiary position received from the Depositories. 2. Date wise increase or decrease in shareholding of the top ten shareholders is available on the website of your Company (www.vivimedlabs.com) E. Shareholding of Directors and Key Managerial Personnel: 1. DIRECTORS SN Particulars Shareholding Date Increase / Reason Cumulative Shareholding Decrease in during the year (01.04.2018 Shareholding to 31.03.2019) No. of Shares at % of total No. of Shares % of total the beginning Shares of Shares of the (01.04.2018) / the Company end of the year Company (31.03.2019) 17,94,225 2.17 01.04.2018 - - 17,94,225 2.17 17,94,225 2.17 25.05.2018 (5,00,000) Buy/ 12,94,225 1.57 1 MANOHAR RAO VARALWAR Transfer 12,94,225 1.57 31.03.2019 - - 12,94,225 1.57 60,99,050 7.39 01.04.2018 - - 60,99,050 7.39 60,99,050 7.39 18.01.2019 (5,00,000) Buy/ 55,99,050 6.78 2 SANTOSH VARALWAR Transfer 55,99,050 6.78 31.03.2019 - - 55,99,050 6.78 16,16,200 1.96 01.04.2018 - - 16,16,200 1.96 3 VARALWAR SUBHASH 16,16,200 1.96 31.03.2019 - - 16,16,200 1.96 30,69,765 3.72 01.04.2018 - - 30,69,765 3.72 4 VARALWAR SANDEEP 30,69,765 3.72 31.03.2019 - - 30,69,765 3.72 317500 0.38 01.04.2018 - - 317500 0.38 5 S RAGHUNANDAN 317500 0.38 31.03.2019 - - 317500 0.38

2. KEY MANAGERIAL PERSONNEL SN Particulars Shareholding Date Increase / Reason Cumulative Shareholding Decrease in during the year (01.04.2018 Shareholding to 31.03.2019) No. of Shares at % of total No. of Shares % of total the beginning Shares of Shares of the (01.04.2018) / the Company end of the year Company (31.03.2019) - - 01.04.2018 - - - - 1 YUGANDHAR KOPPARTHI - - 31.03.2019 - - - - 317500 0.38 01.04.2018 - - 317500 0.38 2 S RAGHUNANDAN 317500 0.38 31.03.2019 - - 317500 0.38

49 Annual Report 2018-19 50 VIVIMED LABS LIMITED

V) INDEBTEDNESS – Indebtedness of the Company including interest outstanding/accrued but not due for payment ( C In Milions) Secured Loans Unsecured Loans Deposits Total Indebtedness excluding deposits Indebtedness at the beginning of the financial year (As on 01.04.2018) i) Principal Amount 1860.23 - - 1860.23 ii) Interest due but not paid 4.12 - - 4.12 iii) Interest accrued but not due - - - - Total (i+ii+iii) 1864.35 - - 1864.35 Change in Indebtedness during the financial year • Addition - - - - • Reduction 626.56 - - 626.56 Net Change (626.56) - - (626.56) Indebtedness at the end of the financial year (As on 31.03.2019) i) Principal Amount 1233.16 - - 1233.16 ii) Interest due but not paid 4.64 - - 4.64 iii) Interest accrued but not due - - - - Total (i+ii+iii) 1237.80 - - 1237.80

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL- A. Remuneration to Managing Director, Whole-time Directors and/or Manager: (Amount in C) SN. Particulars of Remuneration Name of MD/WTD Total Amount Dr. V. Manohar Santosh Sandeep Raghunandhan S Rao Varalwar Varalwar (WTD cum CFO) Gross salary (excluding Commission) (a) Salary as per provisions contained in 60,00,004 60,00,004 60,00,004 50,00,004 2,90,00,020 section 17(1) of the Income-tax Act, 1961 1 (b) Value of perquisites u/s 17(2) Income------tax Act, 1961 (c) Profits in lieu of salary under section - - - - - 17(3) Income- tax Act, 1961 SN. Particulars of Remuneration Name of MD/WTD Total Amount Dr. V. Manohar Santosh Sandeep Raghunandhan S Rao Varalwar Varalwar (WTD cum CFO) 2 Stock Option - - - - - 3 Sweat Equity - - - - - Commission - - - - - 4 - as % of profit - others, specify… 5 Others, please specify - - - - - Total (A) 60,00,004 60,00,004 60,00,004 50,00,004 2,90,00,020 Ceiling as per the Act 1,20,00,000 1,20,00,000 1,20,00,000 1,20,00,000 4,80,00,000 * Remuneration paid to the Managing Director & Other Whole time Directors is within the ceiling provided under Resolutions passed in general meeting. (As per schedule V of Companies act 2013).

B. Remuneration to other directors 1. Independent Directors: (Amount in C) Name of Director Fee for attending board / Commission Others Total committee meetings BHAGVANTH RAO MAMIDPALLI 4,25,000 - - 4,25,000 VENKATA RATNAM PALURI 25,000 - - 25,000 VENKATESWARULU PEESAPATI 50,000 - - 50,000 NIXON PATEL 25,000 - - 25,000 UMANATH VARAHABHOTLA 3,75,000 - - 3,75,000 Total 9,00,000 - - 9,00,000 Ceiling as per the Act 36,00,000 - - 36,00,000

2. Non-Executive Directors: (Amount in C) Name of Director Fee for attending board / Commission Others Total committee meetings SUBASH VARALWAR 2,25,000 - - 2,25,000 Total 2.25.000 - - 2.25.000

51 Annual Report 2018-19 52 VIVIMED LABS LIMITED

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD

SN. Particulars of Remuneration Key Managerial Personnel K.Yugandhar Raghunandhan S CEO Total Company Secretary (WTD cum CFO)

Gross salary 22,92,863 50,00,004 - 72,92,867 (a) Salary as per provisions contained in - - - - section 17(1) of the Income-tax Act, 1961 1 (b) Value of perquisites u/s 17(2) Income- - - - - tax Act, 1961 (c) Profits in lieu of salary under section - - - - 17(3) Income-tax Act, 1961 2 Stock Option - - - - 3 Sweat Equity - - - - 4 Commission - - - - - as % of profit - - - - 5 Others, please specify - - - - Total 22,92,863 50,00,004 - 72,92,867

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

No penalties/punishment/compounding of offences were levied under the Companies Act, 2013.

On behalf of the Board of Directors for Vivimed Labs Limited

Sd/- Sd/- Manohara Rao Varalwar Santosh Varalwar Whole-time Director Managing Director Place: Hyderabad Date: 09.08.2019 ANNEXURE -2 TO BOARD’S REPORT

FORM AOC-1 Performance and financial position of each of the subsidiaries, associates and joint venture (Pursuant to Rule 8 of Companies (Accounts) Rules, 2014)

Part- A- Subsidiaries (C in Millions) Sl.No. Name of the Subsidiary Company & Address Reporting period for the subsidiary concerned, if different from the holding company’s reporting period Share Capital Reserves & Surplus Total Assets Total Liabilities Investments (Refer Note 4 below) Turnover Profit/(Loss) before Taxation Tax Expense/ (Benefit) Profit/(Loss) after Taxation Proposed Dividend Finoso Pharma Private Limited - 30.15 25.41 156.71 156.71 NIL 140.64 9.72 1.70 8.02 - 1 450 Alexandria Knowledge Park Turkapally, Hyderabad 500078 Vivimed Specialty Chemicals Private Limited - 0.10 - - - NIL - - - - - 2 Plot No. 78-A, Kolhar Industrial Area, Kolhar, Bidar - 585403, Karnataka, INDIA UQUIFA India Private Limited - 0.10 - - - NIL - - - - - North End, 8-2120/86/9/A/1 & 12,, 3 Anil Athmaja HousingSocty, Road No: 2,, Banjara Hills, Hyderabad, Telangana, India, 500034 Vivimed Holdings Limited - 0.07 (396.97) 2133.70 2133.70 8.95 - - - - - Rooms 2702-03, 27/F., 4 Bank of East Asia Harbour View Centre, 56 Gloucester Road, Wan Chai, Hong Kong Vivimed Labs Europe Limited - 8.18 716.92 1576.87 1576.87 NIL 1469.27 315.82 52.47 263.35 - 5 PO BOX B3, Leeds Road, Huddersfield,HD1 6BU Vivimed Labs USA Inc - 0.0005 320.35 853.76 853.76 NIL 27.59 (28.77) - (28.77) - 6 1100 Cornwall Road, Suite 160, Monmouth Junction, NJ 08852

53 Annual Report 2018-19 54 VIVIMED LABS LIMITED Sl.No. Name of the Subsidiary Company & Address Reporting period for the subsidiary concerned, if different from the holding company’s reporting period K.Yugandhar Company Secretary Share Capital Reserves & Surplus Total Assets Total Liabilities Investments (Refer Note 4 below) Turnover Profit/(Loss) before Taxation Tax Expense/ (Benefit) Profit/(Loss) after Taxation Proposed Dividend Vivimed Labs Mauritius Limited - 460.41 647.15 4138.23 4138.23 NIL - (2.49) - (2.49) - C/o First Island Trust Company Ltd, 7 ST. James Court, Suite 308, ST. Denis Street, Port Louis, Mauritius Vivimed Labs UK Limited - 1178.54 (73.83) 1635.30 1635.30 NIL 31.38 (121.19) - (121.19) - 8 PO BOX B3, Leeds Road Huddersfield, HD1 6BU Vivimed Labs Spain S.L - 7.31 (10.94) 3212.74 3212.74 2724.30 39.50 (109.59) (36.16) (73.43) - 9 c/ Mallorca, 262, 3º -08008 BARCELONA-SPAIN- Union Quimico Farmaceutica S.A.U - 209.87 724.61 5040.53 5040.53 NIL 6153.15 182.01 45.96 136.05 - 10 c/ Mallorca, 262, 3º -08008 BARCELONA-SPAIN- Holliday International Limited 0.0087 968.57 974.40 974.40 807.85 19.21 49.64 5.08 44.56 - 11 PO BOX B3, Leeds Road, Huddersfield, HD1 6BU Uquifa Mexico S.A DE C.V - 133.79 974.55 1532.04 1532.04 NIL 1756.93 129.35 1.19 128.15 - 12 37 Este, No 126, Civac, 62570 Jiutepec, Morelos, México Vivimed Labs (Mascarene) Ltd - 3252.20 15.95 4810.64 4810.64 3008.29 - (0.088) - (0.088) - C/o First Island Trust Company Ltd, ST. James 13 Court, Suite 308, ST. Denis Street, Port Louis, Mauritius Soneas Chemicals Ltd - 464.92 253.58 1197.85 1197.85 NIL 901.80 306.64 29.57 277.07 - Illatos út 33. 14 H-1097 Budapest Hungary Soneas Research Ltd - 291.37 (98.75) 621.26 621.26 NIL 304.07 (58.91) 0.56 (59.46) - Illatos út 33. 15 H-1097 Budapest Hungary Part B- Associates and Joint Ventures (C in Millions) Sl.No. Name of the Subsidiary Company & Address Reporting period for the subsidiary concerned, if different from the holding company’s reporting period Share Capital Reserves & Surplus Total Assets Total Liabilities Investments (Refer Note 4 below) Turnover Profit/(Loss) before Taxation Tax Expense/ (Benefit) Profit/(Loss) after Taxation Proposed Dividend Yantra Green Power Pvt. Ltd., - 2.50 NIL NIL NIL NIL NIL NIL NIL NIL NIL Plot No.1303&1304, 2nd Floor, 1 Khanamet,Ayyappa Society, Madhapur,Hyderabad-500081

Part C. Particulars of Loans, Guarantees or Investments made/ given during the year under Section 186 (C in Millions) Nature of Date of Name and address of Amount of Time period For loans transaction making loan/ the person or body loan/ security/ for which (whether acquisition / corporate to whom acquisition / it is made/ loan/ giving it is made or given guarantee given guarantee/ guarantee/ or whose securities Rate of Date of security/ providing have been acquired interest maturity acquisition) security (Listed/Unlisted entities) (1) (2) (3) (4) (5) (7) (8) Nil Nil Nil Nil Nil Nil Nil

On behalf of the Board of Directors

for Vivimed Labs Limited

Place: Hyderabad, Sd/- Sd/- Date: 09.08.2019 Santosh Varalwar Manohar Rao Varalwar Managing Director Whole time Director

55 Annual Report 2018-19 56 VIVIMED LABS LIMITED financial year2018-19areasfollows: B DetailsofpercentageincreaseintheremunerationeachDirectorand CEO, CFO&CompanySecretaryinthe 4. 3. 2. 1. Notes: Financial year2018-19isasfollows: A. Ratio of remuneration of each Director to the median remuneration of all the employees of your company for the ANNEXURE -3TOBOARD’SREPORT Subhash Varalwar Srirambatla Raghunandan Sandeep Varalwar Manohar RaoVaralwar Santosh Varalwar Venkateswarulu Peesapati Venkata RatnamPaluri Umanath Varahabhotla Nixon Patel Prof MBhagvanthRao Prof MBhagvanthRao Srirambatla Raghunandan Sandeep Varalwar Manohar RaoVaralwar Subhash Varalwar Santosh Varalwar Yugandhar Kopparthi Umanath Varahabhotla Venkateswarulu Peesapati Subhash Varalwar Venkata RatnamPaluri Nixon Patel PARTICULARS OFREMUNERATIONASPERSECTION197[12]THECOMPANIESACT,2013READ Median remunerationoftheCompanyforallitsemployeesisC2,29,905/-financialyear2018-19. The remunerationofNon-ExecutiveDirectorsissittingfeespaidtothemforthefinancialyear2018-19 The informationprovidedaboveisonstandalonebasis. has resignedfromtheBoard. Mr.Venkata RatnamPaluri,DirectoroftheCompanydemisedonJuly01,2018andDr.VenkateswaruluPeesapati, WITH RULE5[1]OFTHECOMPANIES[APPOINTMENTANDREMUNERATIONMANAGERIAL Name ofDirector(s) Name(s) Non ExecutiveDirector Whole-time director Whole-time director Whole-time director Whole-time director PERSONNEL] RULES,2014. Company Secretary Managing director Total Remuneration(D) Designation Director Director Director Director Director 50,00,004 60,00,004 60,00,004 60,00,004 3,75,000 4,25,000 2,25,000 50,000 25,000 25,000 60,00,004 50,00,004 60,00,004 60,00,004 22,92,863 2018-19 4,25,000 3,75,000 2,25,000 Remuneration (inD) ------50,000 25,000 25,000 Ratio ofremunerationDirector to theMedianremuneration 60,00,004 60,00,004 50,00,004 60,00,004 60,00,004 21,78,262 2017-18 ------4,00,000 2,50,000 2,75,000 4,25,000 50,000 21.74 29.09 26.09 26.09 0.21 0.10 1.63 0.10 1.85 0.97 Increase (81.81) (94.11) (50.00) 50.00 5.26 6.25 0 0 0 0 - - The keyindicesofCompany’sperformanceare: year 2017-18was4.88%. The increseinaverageremunerationofallemployeesthefinancialyear2018-19ascompared to thefinancial Performance: E. C. Percentageincreaseinthemedianremunerationofallemployeesfinancialyear2018-19: 4. 3. 2. 1. Notes: remuneration ofKeyManagerial Personnelaregiveninpoint‘H’below. The ProfitBeforeTaxandExceptional Itemsdecreasedby42.04%in2018-19,comparedto2017-18. Thedetailsof F. ComparisonoftheremunerationKeyManagerialPersonnel againsttheperformanceofyourCompany: above. performance; however, a perfect correlation will not be visible given the dependency on the other factors stated part of.Thus,therewillbeapositivecorrelationintheincrease inremunerationofemployeesandyourCompany’s on the basis of the performance of your Company and the corresponding business unit or function he/ she forms a depends on his/her performance against the objectives set for the year. The variable pay is paid out to the employee appropriate fitment at the time of the employee joining a particular cadre and grade. The fixed pay for an employee allows theemployeestohaveflexibilityinwaywhichthey realizetheirsalaries.Internalequity isensuredby to maintainconcurrencewiththeenvironment.YourCompany maintainsasimplecompensationstructurewhich offers competitivecompensationtoitsemployees.Thepay also incorporatesexternalfactorslikecostofliving Your Companyiscommittedinensuringfairpayandahealthywork environmentforallitsemployees.YourCompany D. Profit AfterTax Profit BeforeTaxand Exceptional Items Net Revenuefromoperations Median remunerationofallemployeesperannum Total Operators/Workmen Staff Executive/Manager cadre Explanation on the relationship between average increase/decrease in remuneration and Company The remunerationtoDirectorsiswithintheoveralllimitsapprovedbyshareholdersofyourCompany. The remunerationtoNon-ExecutiveDirectorsissittingfeespaid to themforthefinancialyear2018-19. from 31.03.2018 Change indesignationofMr.SubhashVaralwarfromwholetimeDirectortoNon-Executive with effective has resignedfromtheBoard. Mr.Venkata RatnamPaluri,DirectoroftheCompanydemisedonJuly01,2018andDr.VenkateswaruluPeesapati, Number ofpermanentemployeesontherollsyourCompanyas31stMarch,2019: (AmountinC) (Cinmillions) 2,603.43 2018-19 61.85 51.30 2,29,905 2018-19 2,633.15 2017-18 98.67 88.52 2,19,209 2017-18 344 501 933 88 Increase (in%) Growth (%) (37.31) (42.04) (1.13) 4.88

57 Annual Report 2018-19 58 VIVIMED LABS LIMITED (ii) (i) Following aremajorprinciplesfordeterminingremunerationto theDirectors: Committee inaccordancewiththeprincipleslaid down intheNominationandRemunerationPolicy. The keyparametersfortheremunerationpaid to theDirectorsaredecided by theNominationand Remuneration I. Keyparametersfortheremunerationpaid to theDirectors: Note: #Retired and Resigned/workedduring thereferredfinancialyear previous financialyearsareasfollows: The detailsofvariationinthemarketcapitalizationand price earningsratioasattheclosingdateofcurrentand G. DetailsofSharepriceandmarketcapitalization: percentage increaseinthekeymanagerialremuneration: H. Comparisonofaveragepercentageincreaseinsalaryemployeesotherthankeymanagerialpersonnelandthe Note: ClosingsharepriceontheBSELimited(BSE)hasbeenused for theabovetables. Comparison ofsharepriceatthetimefirstpublicofferand market priceoftheshare31stMarch,2019: % increaseofmarketpriceovertheattimeinitialpublicoffer value ofC2/-each) Price atthetimeofinitialpublic offerin2005(convertedtopriceofeachshareforface Market Priceason31stMarch,2019 Market Capitalization(CInmillions) Price EarningsRatio Key ManagerialPersonnel) Avarage salaryofallemployees(otherthan adequate balancebetweenfixedandvariablecomponents. applicable laws, in line with the Company’s objectives, shareholders’ interests, industry standards and have an approves thecompensationpackage ofthemand ensures thatthe compensationpackageisinaccordancewith Performance Objectives or Key Performance Parameters at the beginning of each financial year. The Committee Committee evaluate the performance of the Managing Director and other whole time Directors by setting their Key Commission totheManagingDirector,andotherwholetime Directors:TheNominationandRemuneration your Company. Independent Directorsofothersimilar sized companies. Itiswithintheoveralllimitsfixed by theshareholdersof The Committee also reviews the commission and remuneration paid to Non-Executive Directors including providing strategicinputsandsupportingthehighestlevelof CorporateGovernanceandBoardeffectiveness. to thedecisionmakingprocessatmeetingsofBoard/Committees, participationandtimespentaswell Commission (variablecomponent)payable to the Non-Executive Directors after considering their contribution Commission totheNon-ExecutiveDirectors:TheNomination andRemunerationCommitteerecommendsthe - SalaryofCFO -SalaryofCS - SalaryofCEO# - SalaryofMD KeyManagerialPersonnel March,2019 As on31st 2018-19 (D) 22,92,863 50,00,004 60,00,004 1931.05 3,32,995 31.2 - March,2018 As on31st 2017-18 (D) 21,78,262 85,98,603 12,78,560 60,00,004 5,863.32 3,37,748 59.20 (decrease) (%) Increase (%) Increase/ (67.06) (47.29) (41.85) 67.14 14.00 23.40 (1.40) 5.26 0 - 4. 3. 2. 1. Notes: not lessthanC60lakhsperannum L. ListofemployeesyourCompanyemployed throughout thefinancialyear2018-19and were paid remuneration Remuneration ofManagerialPersonnel)Rules,2014: Statement containing the particulars of employees in accordance with Rule 5 (2) of the Companies (Appointment and per theNominationandRemunerationPolicyofyourCompany. It is affirmed that the remuneration paid to the Directors, Key Managerial Personnel and senior management is as K. AffirmationthattheremunerationisasperNominationandRemunerationPolicyofyourCompany: Company. J. Varalwar Santosh Varalwar Sandeep war Rao Varal Manohar There arenoemployeesoftheCompanywhoreceiveremunerationinexcesshighestpaidDirectoryour leave encashment. provident fund and superannuationfund and taxable valueofperquisitesbutexcludesprovisionforgratuityand Remuneration includessalary,bonus,commission,variousallowances, performanceincentive,contribution to Company. persons acting in concert with them) 28384045 shares of The above mentioned Directors are part of the promoter group and holding (Along with other promoters and on 30thSeptember,2015. (Directors) aregoverned by theresolutionspassed by the shareholders inthe27thAGMofyour Company held The contractualtermsofShri.SantoshVaralwar,Shri.ManoharRaoand Shri.Sandeep Varalwar other. Shri SantoshVaralwar,Shri.ManoharRaoandSandeepVaralwar(Directors)arerelativestoeach Name - Whole-time Whole-time Managing Designa director director director tion - Remunera 60,00,004 60,00,004 60,00,004 tion (D) - ment Grad Graduation post-grad Veterinary in B.Phar Qualifica uation in Manage Sciences macy uate tion - - - - - Experience (years) C2/- each (34.39% to the total paid up capital) of your 58 33 27 10/11/1994 09/11/1989 23/01/2008 Joining Date (years) Age 82 57 50 bandry, Govern ment ofAndhra Shiping Corpo Department of ration ofIndia maceuticals & Chemicals Pvt Last employ Animal Hus V SPhar Pradesh ment Ltd. - - - - -

59 Annual Report 2018-19 60 VIVIMED LABS LIMITED Place: Hyderabad, rate whichinaggregatewasnotlessthanC5lakhspermonth: M. Employeesemployed for the part ofthe year and were paid remuneration during the financialyear 2018-19 ata Date: 09.08.2019 Name

Designa

tion OnbehalfoftheBoardDirectors - forVivimedLabsLimited Remunera tion (D) - Qualifica tion - NIL Managing Director Sd/- Santosh Varalwar Experience (years) Joining Date

Whole timeDirector Sd/- Manohar RaoVaralwar (years) Age Last employ ment -

(v) (iv) (iii) (ii) (i) Company forthefinancialyearended on 31stMarch,2019accordingtotheprovisionsof: I haveexamined the books,papers,minuteformsand returns filed and other records maintained by the place totheextent,inmannerand subject tothereportingmadehereinafter: provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in the auditperiodcoveringfinancialyearendedon31stMarch,2019(‘AuditPeriod’)compliedwithstatutory representatives during the conduct of secretarial audit, I hereby report that in my opinion, the Company has, during maintained bytheCompanyandalsoinformationprovidedCompany,itsofficers,agentsauthorized Based on myverification of theCompany’sbooks,papers,minuteformsand returns filed and other records compliances and expressing myopinionthereon. was conducted inamannerthatprovidedmereasonablebasisforevaluatingthecorporateconducts/statutory good corporate practicesbyVIVIMEDLABSLIMITED(hereinafterreferredtoas“theCompany”),SecretarialAudit I have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to Bidar –585403,Karnataka 78/A, KolharIndustrialArea, Vivimed LabsLimited The Members To ANNEXURE -4TOBOARD’SREPORT (d) (c) (b) (a) (‘SEBI Act’):- The followingRegulationsand Guidelines prescribed under the Securities and Exchange Board of IndiaAct,1992 Foreign ExchangeManagementAct,1999andtherulesregulations madethereunder; The DepositoriesAct,1996andtheRegulationsBye-laws framed thereunder; The SecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder; The CompaniesAct,2013(theAct)and the rulesmadethereunder; Regulations, 2014; Scheme) Guidelines, 1999 and The Securities and Exchange Board of India (Share Based Employee Benefits) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase (Not applicable totheCompanyduringAuditPeriod); The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 The SecuritiesandExchangeBoardofIndia(ProhibitionInsider Trading)Regulations,1992; 2011; The Securitiesand Exchange Board of India(SubstantialAcquisition ofSharesandTakeovers)Regulations, [Pursuant tosection204(1)oftheCompaniesAct,2013andRule9(Appointment SECRETARIAL AUDITREPORTFORTHEFINANCIALYEARENDED31STMARCH2019 and RemunerationofManagerialPersonnel)Rules,2014] FORM NO.MR-3

61 Annual Report 2018-19 62 VIVIMED LABS LIMITED clarifications ontheagendaitems beforethemeetingand for meaningfulparticipationatthemeeting. generally sent at least seven days in advance, and a system exists for seeking and obtaining further information and Adequate noticeisgiventoalldirectors toscheduletheBoardMeetings,agendaanddetailed notesonagendawere during theperiodunderreview werecarried out incompliance withtheprovisionsofAct. Directors and Independent Directors. The changes in the composition of the Board of Directors that took place The BoardofDirectorstheCompanyisdulyconstitutedwith properbalanceofExecutiveDirectors,Non-Executive I furtherreportthat- h. g. f. e. d. c. b. a. following lawsapplicable specificallytotheCompany: relevant documentsandrecordsinpursuance thereof,ontest–checkbasis,theCompanyhascompliedwith I further report that, having regard to the compliance system prevailing in the Company and on examination of the Meeting held on 27.09.2018. Guidelines, Standards,etc.mentionedaboveexceptnon-paymentofdividenddeclaredattheAnnualGeneral During theperiodunderreviewCompanyhascompliedwithprovisionsofAct,Rules,Regulations, (iii) (ii) (i) I havealsoexaminedcompliancewiththeapplicable clausesofthefollowing: (e) The IndianBoilersAct,1923 The FoodSafetyand Standards Act,2006 Narcotic Drugsand Psychotropic SubstancesAct,1985 Drugs and Cosmetics Act,1940and the Drugsand Cosmetics Rules,1945 Drugs (Control)Act,1950 Water (PreventionandControlofPollution)Act,1974 Rules issued by theStatePollutionControlBoards. Air (Preventionand Control ofPollution)Act,1981and Rules issuedbytheStatePollutionControlBoards;and 1989; The Environment(Protection)Act,1986andManufacture,StorageImportofHazardousChemicalsRules, effect from1stDecember,2015). Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (with The ListingAgreemententered into bytheCompanywithStockExchanges; Secretarial StandardsissuedbyTheInstituteofCompanySecretariesIndia; (h) (g) (f) applicable totheCompanyduring theAuditPeriod); The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 (Not Company duringtheAuditPeriod). The Securitiesand Exchange Board of India(BuybackSecurities)Regulations,1998(Notapplicable tothe the CompanyduringAuditPeriod);and The SecuritiesandExchangeBoardofIndia(DelistingEquity Shares)Regulations,2009(Notapplicable to 1993 regardingtheCompaniesActanddealingwithclient; The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, Company’s affairsinpursuancetothelaws,rules,regulations,guidelines,etc.,referred to above. We furtherreportthatduringtheauditperiod,therewasnospecificevent/actionhavingamajorbearingon operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines. I further report that there are adequate systems and processes in the Company commensurate with the size and recorded intheminutesofmeetingsBoard of DirectorsorCommitteestheBoard,ascasemaybe. All decisionsatBoardMeetingsandCommitteearecarriedoutunanimously/withrequisite majorityas Date: 30.05.2019 Place: Hyderabad, Company Secretaryinpractice NVSS SURYANARAYANARAO ACS No.5868 CPNO.2886 Sd/-

63 Annual Report 2018-19 64 VIVIMED LABS LIMITED 6. 5. 4. 3. 2. 1. My reportofevendateistobereadalongwiththisletter. Bidar –585403,Karnataka 78/A, KolharIndustrialArea, Vivimed LabsLimited The Members To Date: 30.05.2019 Place: Hyderabad, effectiveness withwhichthemanagementhasconducted the affairsofcompany. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or responsibility ofmanagement.Myexaminationwaslimitedtotheverificationprocedures ontestbasis. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the regulations andhappeningofeventsetc. Wherever required, I have obtained the Management representation about the compliance of laws, rules and company. I have not verified the correctness and appropriateness of financial records and Books of Accounts of the a reasonablebasisformyopinion. correct factsarereflectedinsecretarialrecords.Webelievethattheprocessesandpractices,Ifollowedprovide the correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that I havefollowedtheauditpracticesandprocessesaswereappropriatetoobtainreasonableassuranceabout to expressanopiniononthesesecretarialrecordsbasedmyaudit. Maintenance ofsecretarialrecordistheresponsibilitymanagementcompany.My Company Secretaryinpractice NVSS SURYANARAYANARAO ACS No.5868 CP NO.2886 Sd/- ANNEXURE - 5 TO BOARD’S REPORT

Disclosure of Particulars of Contracts/Arrangements entered into by the Company Form No. AOC-2 (Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)

Disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso thereto. 1. There are no contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section188 of the Companies Act, 2013 which are not at arm’s length basis 2. Contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 which are at arm’s length basis: Sl.No. Name (s) of the related party Nature of Duration of Salient terms of Date of approval Amount Justification for & nature of relationship contracts / the contracts/ the contracts or by the Board paid as entering into arrangements/ arrangements/ arrangements advances, such contracts or transaction transaction or transaction if any arrangements or including the transactions’ value, if any Sales & Dossier Sale of goods FY 2018-19 Not exceeding 12.11.2014 nil The transaction Vivimed Labs Europe Limited, 1 C150 crore per is at arm’s length price UK annum Sale of goods FY 2018-19 Not exceeding C70 12.11.2014 nil The transaction 2 Vivimed Lab USA Inc. USA crore per annum is at arm’s length price Union Quimico Farmaceutica Sale of goods FY 2018-19 Not exceeding C20 12.11.2014 nil The transaction 3 SAU, Spain crore per annum is at arm’s length price Sale of goods FY 2018-19 Not exceeding C10 12.11.2014 nil The transaction 4 Uquifa Mexico S A de C.V crore per annum is at arm’s length price Purchases from Vivimed Labs Europe Limited, Purchases of FY 2018-19 Not exceeding C10 12.11.2014 nil The transaction 1 UK goods crore per annum is at arm’s length price Purchases of FY 2018-19 Not exceeding C5 12.11.2014 nil The transaction 2 Vivimed Lab USA Inc. USA goods crore per annum is at arm’s length price On behalf of the Board of Directors for Vivimed Labs Limited Sd/- Sd/- Place: Hyderabad Manohara Rao Varalwar Santosh Varalwar Date: 09.08.2019 Whole-time Director Managing Director

65 Annual Report 2018-19 66 VIVIMED LABS LIMITED 2. CompositionoftheCSRCommittee The CSRPolicyofyourCompanyisavailableonitswebsite:(http://www.vivimedlabs.com/investor-relations). especially amongchildren,women,elderly,andthedifferentlyabled livelihood enhancementprojects; Promoting Education:education,includingspecialeducationand employment enhancingvocationskills identified thrustareasforchannelizingtheresourcesonasustainedbasis: In accordance with the CSR Policy of your Company, the CSR initiatives would be focused around the following ofyourCompany’sCSRpolicy: 1. Briefoutline CORPORATE SOCIALRESPONSIBILITY(CSR)ACTIVITIES ANNEXURE -6TOBOARD’SREPORT (Cinmillion) 5. DetailsofCSRspentforthefinancialyear: 4. Prescribed CSR expenditure(2%ofthisamountasinSr.No.3above):C13.09Millions 3. AverageNetProfitoftheCompanyforlastfinancialyears:C654.62Millions No. Sl. Mr.Santosh Varalwar Dr.V.Manohar Rao Prof.M.Bhagvanth Rao Name oftheMember(s) 1 c. Mannerinwhichtheamountspentduringfinancialyearisdetailedbelow: b. a. Amount unspent,ifany:C10.34Millions Total amountspentforthefinancialyear:C2.75Millions Activities projects / CSR Education Promoting covered Project is which the Sector in Education en undertak project is where Location Pradesh & Andhra Telangana Schools in Various TOTAL - Programs Project / (budget) outlay Amount 2.75 2.75 Non Independent,Executive/Promoter Non Independent,Executive/Promoter Independent, Non-Executive Nature ofDirectorship ture Expendi 1. Direct Projects orPrograms Amount Spentonthe 2.75 2.75 - heads 2.Over - - - period reporting upto the diture tive Expen Cumula 2.75 2.75 - - Direct spent: Amount 2.75 2.75 Place: Hyderabad, CSR objectivesand Policy ofyourCompany. 7. The CSR Committee confirms that the implementation and monitoring of the CSR Policy is in compliance with the Company isevaluatingvariousproposalstoensureCSRfundsareoptimallyutilized. or anypartthereof,theCompanyshallprovidereasonsfornotspendingamountinitsBoard’sReport:The 6. In case the Company has failed to spend the two percent of the average net profit of the last three financial years Date: 09.08.2019

OnbehalfoftheBoardDirectors forVivimedLabsLimited Managing Director Sd/- Santosh Varalwar

Chairman CSRCommittee Sd/- Manohar RaoVaralwar

67 Annual Report 2018-19 68 VIVIMED LABS LIMITED the Market primarily on differentiated portfolio. Formulation R&D efforts at Vivimed are directed towards exploring The Research and Development (R&D) discipline aims to work on products that strengthen the competitive position in 1. Technologyabsorption,adaptation andinnovation Particulars ofabsorption Technology absorption Power andFuelConsumption Lighting, Otherkey initiatives forEnergyconservation: were driven across the units by audits areimplemented.Apartfromregularpracticesandmeasuresforenergyconservation,manynewinitiatives locations. Energyauditsareconducted atallthemanufacturingunitsregularintervalsandfindingsof manufacturing level. Energy conservation initiatives are being planned and implemented across manufacturing total energyconsumptionistrackedonadailybasisatindividual factory/blocklevelandalsoatconsolidated All themanufacturingunitscontinued their effortstoreduce thespecificenergyconsumption.Specificand Particulars ofconservationenergy ANNEXURE -7TOBOARD’SREPORT Consumption perunitofproduction Electricity FurnaceoilCoal Products (withdetails)unit Particulars 3. Coal 2. OwngenerationfromDieselgeneratorset 1. Electricity Particulars Total amount(CinMn) Total amount(CinMn) Total cost(CinMn) Quantity (MT) Average rate/Unit(C) Unit (KWH)(inMn) Average rate/Unit(C) Unit (KWH)(inMn) Average rate/MT(C) Section 134oftheCompaniesAct,2013readwith(Accounts)Rules,2014and CONSERVATION OFENERGY,TECHNOLOGYABSORPTIONANDFOREIGN per unitofproduction. different combinationsoffinisheddosages,itisnotpracticable togiveconsumption Since theCompanymanufacturesawiderangeofspecialtychemicals, API’sand Standards Remuneration ofManagerialPersonnel)Rules,2014] Process optimization and automation, Optimisation of Electrical Equipment, EXCHANGE EARNINGSANDOUTGO Current year FY 2018-19 2407.14 9705.01 14.45 51.40 23.36 8.59 1.68 8.36 6.15 Previous year FY 2017-18 2614.52 9793.18 16.26 57.85 26.29 8.56 1.90 8.33 6.94 and Europe. The CompanywillofferwiderbasketofProducts totheregulatedMarketsincludingCIScountries, NorthAmerica of variablecomplexitiesintheareaschemistry,IP,regulatory, engineeringand manufacturing. generate revenue in the short-term and some, more in the future. The pipeline is being designed to cater products The Companyintends to focus on different classes of projects, in linewith our Business strategy;some, which can  Futureplanofaction Company toachieveGloballeadershipposition. Vivimed couldachievealongtermsustainabilitytooffersuperior valuetoitscustomerswhichwouldenablethe adding valuethroughapplications suchasextendedrelease. for enhanced and sustainable growth on extending our product reach line extensions for existing products and also OTC drugs and the products withintrinsicchallenges In addition, R&D is working to build a healthy products portfolio R&D currently focuses on developing and filing generic products for regulated markets and also on large volume Canada, Europe,Australiaandothercountries. several IRand MR solid dosage productsand filing dossierand ANDA forregulated markets includingtheU.S., and bioequivalence studies for regulated and emerging markets. The Company possesses capabilities to develop development, analyticalCGMP,scale-up,stabilityandalsoco-ordinateforconductingbioavailability The Companyprovidescomprehensivedrugdevelopmentresourcesandsolutionsforpre-formulation,formulation and prescriptiondrugs. end-to-end solutions acrossOvertheCounter(OTC)monograph, OTCAbbreviated New DrugApplication (ANDA) Finished Dosageproducts.Ourdevelopmentphilosophy aimstocollaborateandofferabusinessmodelofdelivering Our R&D primarily caters to our in-house product development requirements for specialty chemicals, API, PFI and chemistry, engineeringandformulationtechnologyareas. company iscommittedtooffersuperiorandaffordablesolutionsforproducts withintrinsicchallengesatthe The VivimedR&Disfocusedonrevitalizingourgrowthenginetobalanceshort,midandlong-termgoals. 3. Importedtechnology: 2. Benefitsderivedasaresultoftheabove efforts development. TheCompanyiscontinuouslystrivingtostrengthenitsR&Dteamsand infrastructure. the options of vertical integration. To meet customer demands, our teams focus on innovate techniques in product  BenefitsderivedasaresultoftheaboveR&D  ResearchandDevelopment(R&D)  Competitiveadvantageinthespecialtychemicals/pharmaceutical space  Supervaluepropositiontoourcustomersandkeystakeholders.  RobustProduct developmentengine.  Efficient processes.

69 Annual Report 2018-19 70 VIVIMED LABS LIMITED Foreign exchangeearningsandOutgo Expenditure incurredonResearchandDevelopment Place: Hyderabad, Date: 09.08.2019 Foreign ExchangeEarnings Particulars Total Revenue Capital Particulars Foreign ExchangeOutgo

OnbehalfoftheBoardDirectors forVivimedLabsLimited (CInmillion) (CInmillion) Managing Director Sd/- Santosh Varalwar

FY 2018-19 FY 2018-19 1921.61 363.04 363.04 535.29 Whole timeDirector Sd/- Manohar RaoVaralwar - FY 2017-18 FY 2017-18 4375.87 746.89 746.89 125.36 -

your Company’sgrowthwith a long-termvisionand the Boardhasfosteredaculture ofleadershiptosustain of governanceandmanagement. Overaperiodoftime, independence oftheBoardand separatesitsfunctions the Board of Directorsenablesinmaintainingthe Promoter Director. This appropriate composition of / PromoterDirectorsand 1 (one)isNon-Executive Independent Directors,4(four)areWhole-timeDirectors expertise. Out of 8 members on its Board, 3 (Three) are Directors with members from diverse experience and optimum mix of eminent personalities on the Board of Corporate Governancepractice.YourCompanyhasan At VivimedLabs,theBoardisatcoreof BOARD: the bestpracticesofCorporateGovernance. Vivimed Labs Limited is committed to learnand adopt consumers, suppliers and statutory authorities. including shareholders,employees,customers, principles inallitsinteractionswithstakeholders, the Company.TheCompanyensuresto work by these form abaseoftheCorporateGovernancepractices are also a way of lifeat the Company. These values Trust, Humility, Integrity, Passion and Innovation which of theCompanyvizQuality,Reliability,Consistency, people touchinglivesgloballybyfollowingthecorevalues Vivimed Labs Limited’sphilosophy envisagesreaching GOVERNANCE COMPANY’S PHILOSOPHYONCODEOFCORPORATE Report fortheyearendedMarch31,2019. time theCompanysubmitsCorporateGovernance 2015 (“ListingRegulations”),asamendedfromtimeto Obligations andDisclosureRequirements)Regulations, V of the Securities and Exchange Board of India (Listing In compliancewithRegulation34(3)readSchedule CORPORATE GOVERNANCEREPORT Report Corporate Governance The EMT comprises of the heads of different functions EXECUTIVE MANAGEMENTTEAM (EMT): of theBoardanditsvariousCommittees. guidelines and ensures implementation of thedecisions spearheads thestrategicdirections,laysdownpolicy Directors and also leadstheExecutiveManagement.He functions underthedirectsupervisionofBoard Company is entrusted to the Managing Directorwho The overallmanagementoftheaffairsyour MANAGING DIRECTOR: strengthen thecapabilitiestoenhancevaluecreation. and responsiveness within the organization and to areas, bringinability,multi-dimensionalperspective your Companystrengtheneffectivenessofinterface been constitutedtodrivestrategicinitiativesof of the Executive and Operating teams which have The managementstructureofyourCompanycomprises MANAGEMENT STRUCTURE and ManagementCommittee. Responsibility Committee,RiskManagementCommittee and Remuneration Committee, Corporate Social Stakeholders RelationshipCommittee,Nomination 6 (six) Committees of the Board viz., Audit Committee, tasks assigned to them. Your Company currently has undertake and deliver upon the responsibilities and frequency as is deemed necessary by them to effectively Regulations. These Committees hold meetings at such with the CompaniesAct,2013 and the Listing assigned themspecifictermsofreferenceinaccordance an optimumrepresentationofitsmembersandhas The Board has constituted various Committees with COMMITTEES OFTHEBOARD: Governance. ingenious policytoimprovethedegreeofCorporate

71 Annual Report 2018-19 72 VIVIMED LABS LIMITED 2019: COMPOSITION OFTHEBOARDASON31STMARCH, BOARD OFDIRECTORS to increasedholisticconnectionwithintheorganization. The effectivefunctioningoftheEMTandOMThasled Company toservicecustomersand other stakeholders. day-to-day operations, capability building within your they deliberateontheefficiencyand effectiveness ofthe The OMT members lead the identified strategic initiatives, within yourCompanywhoreporttotheEMTmembers. The OMTconsistsofheadsfunctions/businesses OPERATING MANAGEMENTTEAM(OMT): which reporttothem. including effectivenessofthebusinesses/functions meets on a regular basis to discuss on various matters & Reporting, and Corporate Governance. The EMT your Company,RiskManagement,FinancialAccounting the initiativespertainingtostrategiesand vision of to the Managing Director. This EMT is entrusted with of the organization. The members of the EMT report DETAILS OFSKILLS/EXPERTISECOMPETENCETHEBOARDDIRECTORS: Name Sandeep Varalwar Varalwar Manohar Rao Santosh Varalwar Whole TimeDirector Whole TimeDirector Managing Director Category and marketingdivisionsofPharma industry. he gainedmorethan25years ofrichexperienceinmanufacturing He is a Graduation in B.Pharmacy. After completion of graduation, Enterprises. Poultry DepartmentCorporationAndhraPradeshGovernment livestock andpoultry.HeworkedasaspecialofficerforMeat and involved inadministrationandproduction ofvariousvaccinesfor During his tenure with Department of Animal Husbandry, he was Department ofAnimalHusbandry,GovernmentAndhraPradesh. years experienceintheMunicipalCorporationofHyderabad and Sciences fromEdinburghUniversity,U.K.Hehasmorethan 31 Research Institute”(VBRI)hasdonehispost-graduationinVeterinary He isRetired as JointDirectorof“TheVeterinaryBiologicaland helped him subsequentlytofocusoninternationalmarketing. depth mercantiletradeandhadimmenseglobalexposure, which Corporation of India (SCI) and had an opportunity tounderstand in phenomenal growthofVivimed Labs Limited.HeworkedinShipping He isaManagementGraduate. Heisthedrivingforcebehind Director. Varalwar, noneoftheDirectorsarerelatedtoanyother Varalwar, Mr.ManoharRaoVaralwarandMr.Subhash Director) otherthanMr.SantoshVaralwar,Mr.Sandeep the brotherofMr.ManoharRaoVaralwar(WholeTime and Mr.Subhash Varalwar (Non Executive Director) is of Mr.ManoharRaoVaralwar(WholeTimeDirector) Mr.Sandeep Varalwar(WholeTimeDirector)arethesons Mr.Santosh Varalwar(ManagingDirector)and DIRECTORS INTER-SE DISCLOSURE OFRELATIONSHIPSBETWEEN Independent Directors. optimum combinationofExecutive,Non-Executiveand is chairedbyaIndependentChairmanandhasan the CompaniesAct,2013.TheBoardofDirectors Regulation 17 of the Listing Regulations as well as The compositionoftheBoardisinconformitywith Total Executive/Promoter Directors Non-Executive /PromoterDirectors Non-Executive /IndependentDirectors Category Skills/ Expertise/Competence Skills/ Directors No. of 4 1 3 8 Name Varahabhotla Umanath Nixon Patel Mamidpalli Bhagvanth Rao Srirambatla Raghunandan Subhash Varalwar Independent Director Independent Director Independent Director Officer -cum- ChiefFinancial Whole-time Director Director Non-Executive Category incubator forLVP,EMRI,ELBIT, Health &CSRatAthenaEnergy. acknowledged tohavebuilt organizationsandpeople, Start-up for pilotingandscaling-upof strategicallyimportantinitiatives, processes andSoPsfromConceptualizationtoOperationalization Corporate Social Responsibility. Creating organizational systems, years of experience in Healthcare, Hospital systems management, She is a Doctorate (Ph.D) in Business Administration; She has 27+ degree ofpersonalintegrity. energy industries. Heisaconsummateprofessionalwithhigh Information Technology,Telecom,PharmaceuticalandRenewable years. His businesses are spread across the globe in the fields of millions ofUS$inannualsales,developed in ashortspanof21 a proventrackrecordforgrowing5businessesfromstartup to of Technology.Mr.NixonPatel,isasuccessfulentrepreneur with and hasdonehisMSinComputerSciencefromNewJerseyInstitute He isB.Tech(Hons.)fromIndianInstituteofTechnology,Kharagpur laboratories likeIICT,BHELR&DNFCetc. Sciences (USA) etc. He also acts as a research consultant to various Engineering andChemistryFundamentals(USA),JournalofPolymer articles in the Canadian Journal of Chemical Engineering, Industrial has variousresearchpublicationstohiscreditsomeofwhichinclude and EnvironmentalStudiesDirectorofPhysicalEducation. He Development andUGCAffairs,DirectorofRegionalCenterforUrban University, HyderabadinvariouspositionincludingtheDeanof and biochemical engineering.He has been involved with Osmania fields of chemical reaction engineering, catalysis, thermodynamics He hasover32yearsexperienceinresearchandteachingthe Indian SocietyforTechnicalEducation etc. Engineers andA.P.AcademyofSciences,LifeMembershipinthe associations includingFellowshipsintheIndianInstituteofChemical of Technology,Japan.Hehasmembershipstovariousprofessional Bangalore and has done his post doctoral studies at Tokyo Institute He isaPhDinchemicalengineeringfromIndianInstituteofSciences, India andworked there handlingvariousaspectsofproduction. Pharmaceuticals, at that time the largest producer of Ibuprofen in He isaSciencePostGraduate,hebeganhiscareerwithChandra operations globally, the stringentregulatorycompliancesacrossallitsmanufacturing of James Robinson Limited and has successfully implemented led the technical integration teams of UK/India after acquisition heads Production, Quality control and R&D function. He successfully Development in the chemical segment of the Company. He also FCI. Mr.SubhashisresponsibleforTechnologyandNewProduct and commissioning, gained from 15 years of his career span with aspects of Industrial Management, including production, planning Vivimed. Mr. Subhash bringsalong with himanexposuretovarious fertilizer plant,production etc. Heresigned from FCIin1989 to join worked onvariousareaslikedesigningandcommissioningof Project Engineer(Chemical).HeheldvariouspositionsinFCIand he joined The Fertilizer CorporationofIndia(FCI)in 1974 as Asst. Graduate fromLeedsUniversity,U.K.Afterhispostgraduation He isaPostGraduate inChemicalEngineeringandaManagement Skills/ Expertise/Competence Skills/

73 Annual Report 2018-19 74 VIVIMED LABS LIMITED Date(s) onwhichmeeting(s)wereheld: necessary. ThedatesoftheBoardmeetingsareasunder: to reviewthequarterly financialresultsandotheritemsontheAgenda.Additional meetingsareheldwhenever between twomeetingsdidnotexceedonehundredandtwentydays.TheBoardmeetsatleastonceineachquarter During the financial year 2018-19, 7 (Seven) meetings of the Board of Directors were held and the maximum time gap NUMBER OFBOARDMEETINGS: including but notlimitedtotheCompany’sperformance, / OMT make presentations to the Board on matters The ManagingDirectorandthe membersoftheEMT Standards. to theDirectorsinaccordancewithSecretarial and the explanatory notes are circulated well in advance its Committeesarescheduledinadvance.TheAgenda The datesformeetingsoftheBoardDirectorsand BOARD PROCEDURES: has resignedfromtheBoard. * Mr.Venkata RatnamPaluri,DirectoroftheCompanydemised on July01,2018and Dr.VenkateswaruluPeesapati, year 2018-19and at theAnnualGeneralMeeting(AGM)aredetailedbelow: The detailsofattendanceatBoardMeetingsheldeitherinpersonorthroughvideoconferenceduringthefinancial he/she isaDirector. of yourCompanyhold memberships/Chairmanships morethantheprescribed limits acrossallcompaniesinwhich on the Board/Committees of the Board of other companies. As per the disclosure received, none of the Directors All theDirectorshaveperiodicallyand regularly informed the CompanyabouttheirDirectorship and Membership Mr.Santosh Varalwar Dr.Venkateswarulu Peesa Mrs.Umanath Varahabhotla Mr.Venkata RatnamPaluri* pati * dan Mr.Srirambatla Raghunan Mr.Nixon Patel Mr.Sandeep Varalwar midpalli Name oftheDirector November 14,2018 August 23,2018 August 13,2018 May 30,2018 Prof. BhagvanthRaoMa Dr.Manohar RaoVaralwar Mr.Subhash Varalwar - - - Non ExecutiveDirector Independent Director Independent Director Independent Director Independent Director Independent Director Whole TimeDirector Whole TimeDirector Whole TimeDirector Managing Director Designation • • Board, interalia,include: Listing Regulations.Regularupdatesprovided to the the informationasspecifiedinRegulation17of to anyinformationwithinyourCompanywhichincludes operations, plans,etc.TheBoardhascompleteaccess Held Number ofBoard level ofBoardDirectors,including appointmentor of SeniorManagementPersonnel justbelowthe The informationonrecruitment and remuneration 7 7 7 7 7 7 7 7 7 7 Directors; Minutes ofmeetingsCommittees oftheBoard Meetings March 27,2019 February 14,2019 January 29,2019 Attended 6 0 1 7 1 5 7 7 7 6 Attendance atAGMHeld September 27,2018 Yes Yes Yes No No No No No No No Accordingly, theannualperformance evaluationofthe annual basis. evaluation ofeachDirectorto becarried out onan the Board, its Committees along with performance a processtoformallyevaluate theeffectivenessof Committee, theBoardofDirectorshasput inplace recommendation oftheNominationand Remuneration D ofScheduleIItheListingRegulationsandon Act, 2013 read with Rules framed thereunder and Part In termsofapplicable provisionsoftheCompanies EVALUATION OFTHEBOARDEFFECTIVENESS: of theconclusionmeeting. minutes areenteredintheminute’sbookwithin30days sent tothemembersfortheircommentsandthen The draftminutesoftheBoard and its Committeesare • • • • • • • • • • • Secretary; removal ofChiefFinancialOfficerand the Company making bytheBoard. Any other informationwhichis relevant for decision and as non- payment of dividend, delay in share transfer; listing requirements andshareholdersservicesuch Non-compliance ofanyregulatory,statutoryor exchange ratemovement,ifmaterial; taken bymanagementtolimittherisksofadverse Details offoreignexchangeexposuresand the steps normal courseofbusiness; subsidiaries and assets whicharenotpartofthe Sale of a material nature, or of investments, resource management; Any significantlabourprobleminvolvinghuman property; towards goodwill, brand equity or intellectual Transactions thatinvolvesubstantialpayment agreement; Details of any joint venture or collaboration liability claimsofsubstantialnature; Any issue,whichinvolvespossiblepublic orproduct by theCompany; Any material defaults in financial obligations to and any materialeffluentorpollutionproblems; Fatal orseriousaccidents,dangerousoccurrences, notices, whicharemateriallyimportant; Show cause,demand,prosecutionandpenalty positive andmembersexpressed theirsatisfaction. effectiveness oftheBoard and its Committeeswas The overalloutcomeofthis exercisetoevaluate and itsCommittees. performance oftheDirectorsand theBoardasawhole 27, 2019, has noted the overall feedback on the The Board of Directors at its meeting held on March Chairman oftheBoard. the Non-Executive/PromoterDirectorsincluding at theirmeetingalsodiscussedtheperformanceof received from the Directors.The Independent Directors the evaluationmechanism,outcomeandfeedback Nomination and Remuneration Committee discussed on of performancefortheBoardandDirectors.The Committee playsavitalroleinundertakingtheevaluation The ChairmanoftheNominationand Remuneration Committee vis-à-visitsresponsibilities,etc. Committee todischargeitsduties,performanceofthe the Committeemeetings,informationprovided to the of theCommittees,effectivenessdiscussionsat Committee members,adequacyofthecomposition like understandingofthetermsreferenceby of theCommitteesBoard included aspects The questionnairesforassessingtheperformance duties. and governance duties and performance of specific minimization, succession planning, discharging fiduciary of discussions on key subjects like risk assessment and at the meetings of the Board, time spent and quality strategies, Board effectiveness, quality of discussions by theBoardonCompany’slongtermgoalsand parameters included the assessment of time devoted In assessingtheoverallperformanceofBoard, strategic issuesandchallengesforyourCompanyetc. during theBoardmeetings,understandingof environment, effectiveness of the contributions made understanding ofthebusinessandcompetitive understanding oftheroleandresponsibilities, alia, included assessment of the level of participation, Directors werebased on variousaspectswhich,inter with respecttotheevaluationofperformance carried outbytheDirectors.Theseassessmentsheets performance ofeachDirectorand self –assessment the performanceofBoardasawhole,individual Structured questionnaireswerepreparedtoevaluate for thefinancialyear2018-19. Board, itsCommitteesandeachDirectorwascarried out

75 Annual Report 2018-19 76 VIVIMED LABS LIMITED investor-relations. through thefollowinglink:http://www.vivimedlabs.com/ on thewebsiteofyourCompanyandcanbeaccessed Act, 2013.AsampleTermsofappointmentisavailable Directors inthemannerprovidedunderCompanies issued formalappointmentletterstoalltheIndependent limit intheListingRegulations.YourCompanyhasalso they do not hold directorship more than the prescribed and theListingRegulationshaveconfirmedthat Independence laid down undertheCompaniesAct,2013 submitted declarationsthattheymeetthecriteriaof 30th September,2015.TheIndependentDirectorshave the shareholdersofyourCompanyattheirAGMheldon calendar year2020).Herappointmentwasapprovedby (upto up to 32nd Annual GeneralMeetingtobeheld in have beenappointed for atenureof5(five)years Varahabhotla (IndependentDirector)ofyourCompany their AGMheldon30thSeptember,2014.Mrs.Umanath was approvedbytheshareholdersofyourCompanyat to be held in calendar year 2019). Their appointment tenure of5(five)years(upto31stAnnualGeneralMeeting Directors) of your Company have been appointed for a Prof.M.Bhagvanth RaoandMr.NixonPatel(Independent INDEPENDENT DIRECTORS: Varalwar Mr.Sandeep Rao Mamidpalli Prof. Bhagvanth Varalwar Mr.Subhash Varalwar Dr.Manohar Rao Varalwar Mr.Santosh Director Name ofthe Non-Executive/ Directorships Non-Executive Independent Whole-time Whole-time Nature of Managing Director Director Director Director Director of SantoshVaralwar& relationship with any Varalwar, Nephew of Son ofManoharRao Son ofManoharRao Varalwar &Sandeep Nephew ofSubhash Brother ofManohar Rao Varalwar,Uncle Brother ofSandeep Brother ofSubhash Brother ofSantosh Relationship with Sandeep Varalwar Subhash Varalwar Father ofSantosh of theDirectors each other No inter-se Varalwar, Varalwar, Varalwar, Varalwar, Varalwar Varalwar public companiesaredetailedbelow: chairmanships /membershipsheldbytheminother inter se, number of directorships and committee The detailsofnatureDirectorships,relationship DIRECTORSHIP ANDMEMBERSHIPONCOMMITTEES: and reasonablyperformtheirduties. the Boardthatwasnecessaryfortoeffectively information between your Company’s management and Assess the quality, quantity and timeliness of flow of Executive Directors;and Company, takingintoaccountviewsofExecutive/Non- Review theperformanceofChairpersonyour Directors andtheBoard as awhole; To reviewtheperformanceofNon-Independent management, interalia,todiscussonthefollowing: Non-Independent Directorsand members ofthe met onMarch27,2019,withouttheattendanceof During the year under review, the Independent Directors INDEPENDENT DIRECTORS’MEETING: No. ofother Director ships* Nil Nil Nil Nil Nil - As on31stMarch,2019 Membership Nil Nil Nil Nil Nil Chairmanship Nil Nil Nil Nil Nil The shareholdingoftheNon-ExecutiveDirectorsyourCompanyason31stMarch,2019isfollows: *** ** * The shareholdingofExecutiveDirectorsyourCompanyason 31stMarch,2019isasfollows: Raghunandan Mr.Srirambatla Dr. Ven Mr.Subhash Varalwar Varahabhotla Mrs.Umanath Mr.Venkata RatnamPaluri Peesapati Dr.Venkateswarulu Mr.Nixon Patel Mamidpalli Prof.Bhagvanth Rao Mr. VenkataRat Varahabhotla Mrs. Umanath Mr.Nixon Patel Mr.Santosh Varalwar Name oftheDirector(s) Name oftheDirector(s) Director Name ofthe Dr.Manohar RaoVaralwar Peesapati *** kateswarulu nam Paluri*** Mr.Sandeep Varalwar Mr.Srirambatla Raghunandan

Peesapati, hasresignedfromtheBoard. Mr.Venkata RatnamPaluri,DirectoroftheCompanydemisedonJuly01,2018andDr.Venkateswarulu excludes theMemberships&ChairmanshipsinVivimedLabsLimited. Committee andStakeholdersRelationshipofPublicCompanieshavebeenconsidered.Also For thepurpose ofconsideringthelimitCommitteeMembershipsandChairmanshipsaDirector,Audit directorships. Limited Companies, Companies incorporated under Section 8 of the Companies Act, 2013 and alternate Excludes directorship in Vivimed Labs Limited.Alsoexcludesdirectorship in ForeignCompanies,Private - - Non-Executive/ Non-Executive/ Non-Executive/ Non-Executive/ Directorships Independent Independent Independent Independent Whole-time Nature of Director Director Director Director Director Non-Executive /PromoterDirector Non-Executive/ Independent Non-Executive/ Independent Non-Executive/ Independent Non-Executive/ Independent Non-Executive/ Independent Nature ofDirectorship Nature ofDirectorship Whole-time Director Whole-time Director Whole-time Director Managing Director relationship with any relationship with any relationship with any relationship with any relationship with any Relationship with of theDirectors of theDirectors of theDirectors of theDirectors of theDirectors Director Director Director Director Director each other No inter-se No inter-se No inter-se No inter-se No inter-se No. ofother No. ofsharesheld Director ships* No. ofshares Nil Nil Nil Nil Nil 55,99,050 12,94,225 30,69,765 3,17,500 1616200 held NIL NIL NIL NIL NIL - As on31stMarch,2019 Membership Nil Nil Nil Nil Nil Percentage tothe paid Percentage tothe paid up sharecapital up sharecapital Chairmanship 1.96 6.78 1.57 3.72 0.38 NIL NIL NIL NIL NIL Nil Nil Nil Nil Nil

77 Annual Report 2018-19 78 VIVIMED LABS LIMITED evaluate and approve transactions with related parties, process, determine the adequacy of internal controls, responsibility to monitor the financial reporting, audit The Audit Committee is, inter alia, entrusted with the AUDIT COMMITTEE COMMITTEES OFTHEBOARD investor-relations. through thefollowinglink:http://www.vivimedlabs.com/ on thewebsiteofyourCompanyand can beaccessed Brief details of the familiarization program are uploaded the CodeofConductforPreventionInsiderTrading. for DirectorsandSeniorManagementPersonnel policies ofyourCompanyincludingtheCodeConduct new initiatives.Theyarealsoinformedoftheimportant etc. Theyare updated on allbusiness related issues and operates, businessmodeloperations,on-goingevents, responsibilities, nature of the industry in which it brief backgroundofyourCompany,theirroles,rights, Directors but anynewappointeesontheBoardwitha such programsfamiliarizesnotonlytheIndependent the IndependentDirectors.YourCompanythrough familiarization program for all its Directors including Your Companyhasinplaceastructured induction and FAMILIARISATION PROGRAM has resignedfromtheBoard. ***Mr.Venkata RatnamPaluri,DirectoroftheCompanydemisedonJuly01,2018andDr.VenkateswaruluPeesapati, **Appointed due toRe-ConstitutionofAuditCommitteeon13thAugust,2018 *Vacated due toRe-ConstitutionofAuditCommitteeon13thAugust,2018 Mr.Srirambatla Raghunandan* Mr.Sandeep Varalwar ** Mrs.Umanath Varahabhotla Dr.Venkateswarulu Peesapati*** Prof.Bhagvanth RaoMamidpalli Name oftheDirector Mr.Venkata RatnamPaluri*** Nature ofMembership Chairperson Chairman Member Member Member Member ended 31stMarch,2019isdetailedbelow: meetings heldandattendedduring thefinancialyear Directors oftheCompanyalongwithdetails The compositionoftheAuditCommitteeBoard of being inforce). modification(s) orre-enactment(s)thereofforthetime and the ListingRegulations(includinganystatutory applicable provisons oftheCompaniesAct,2013 of dealing withRelated Party Transactionsand the with grantingomnibus approvalinlinewiththePolicy 19, has approved related party transactions along The AuditCommittee,during thefinancialyear2018- acts asSecretarytotheCommittee. Shri K.Yugandhar,CompanySecretaryofthe the Committee. Auditor andotherexecutivestoattendthemeetingsof Vice President – Finance, Statutory Auditor, Internal Committee invitestheManagingDirector,CEO,CFO, and haveexperienceinfinancialmanagement.The members oftheAuditCommitteearefinanciallyliterate 2013 andRegulation18oftheListingRegulations.The with provisions of Section 177 of the Companies Act, The compositionoftheAuditCommitteeisinalignment of theappointmentStatutoryAuditors. disclosure offinancialinformationandrecommendation Held 6 6 6 6 6 6 Number ofMeetings Attended 1 4 6 1 6 0 5. 4. 3. 2. 1. following: terms ofreferenceanditsrole,interalia,includesthe The AuditCommitteeisempowered,pursuanttoits the lastAGMheld on 27thSeptember,2018 The Chairperson of the Audit Committee was present at Date(s) onwhichmeeting(s)wereheld August 23,2018 August 13,2018 May 28,2018 companies (includingjointventures); and investments madeby the unlisted subsidiary subsidiary companies(including jointventures) Reviewing thefinancialstatements ofunlisted (e) (d) (c) (b) (a) particular referenceto: before submissiontotheBoard for approval,with financial statements and auditor’s report thereon Reviewing, withthemanagement,annual of thefinancialconditionandresultsoperations; Reviewing the Management Discussion and Analysis before submissiontotheBoard for approval; statements, standaloneaswellconsolidated half-yearly, nine- months and annual financial Reviewing withthemanagementquarterly, sufficient andcredible; ensure thatthefinancialstatementsarecorrect, process andthedisclosureofitsinformationto Overseeing yourCompany’sfinancialreporting Qualifications inthedraftaudit report,ifany. Disclosure ofanyrelatedpartytransactions;and statements; other legalrequirements relatingtofinancial Compliance withtheListingRegulationsand arising outofauditfindings; adjustments madeinthefinancialstatements of judgmentbymanagementand significant entries involvingestimatesbasedontheexercise and the reasons for the same, major accounting Changes in the accounting policies and practices Companies Act,2013; the Board’sReportasperSec134(3)(c)of Responsibility Statementtobeincludedin Matters required tobeincludedintheDirectors’ November 14,2018 February 14,2019 January 29,2019 15. 14. 13. 12. 11. 10. 9. 8. 7. 6. Evaluating theinternalfinancial controls and risk management policiessystemofthe Company; for conducting theinternalaudit; the scope,functioning,periodicity and methodology Formulating in consultation with the Internal Auditor, Company; remuneration oftheChiefInternalAuditor Reviewing the appointment, removal and terms of coverage andfrequency ofinternalaudit; heading thedepartment, reporting structure department, staffing and seniority of the official if any,includingthestructureofinternalaudit Reviewing the adequacy of internal audit function, of auditprocess; independence andperformance, effectiveness Reviewing andmonitoringtheauditor’s and ensuringsuitablefollow-up thereon; control weaknessesissuedbythestatutoryauditors Reviewing management letters/letters of internal auditors; management representation letters to the statutory Reviewing and approving quarterly and yearly any areaofconcern; audit aswellpost-auditdiscussiontoascertain audit commences,aboutthenatureandscopeof Discussion withthestatutoryauditorsbefore and approvingpaymentsforanyotherservice; removal ofthestatutoryauditor,fixingauditfees appointment and,ifrequired,thereplacementor Recommending totheBoard,appointment,re- (c) (b) (a) the Board: appointment ofauditorsbeforerecommendingto Reviewing andconsideringthefollowingw.r.t. competent authorityoranyCourt. Institute ofCharteredAccountantsIndiaorany conduct againsttheproposedauditorbefore proceeding relatingtoprofessionalmattersof giving dueregard to anyorderorpending the company;and commensurate with the size and requirements of whether such qualifications and experience are as auditor; firm proposedtobeconsideredforappointment qualifications and experience of the individual/

79 Annual Report 2018-19 80 VIVIMED LABS LIMITED 26. 25. 24. 23. 22. 21. 20. 19. 18. 17. 16. to theBoardforapproval; auditor on audit of cost records, before submission Review thecostauditreportsubmitted bythecost appointment ofCostAuditorfortheCompany; the appointment, remuneration and terms of Recommending to the Board of Directors, than consultingandspecialized services; Companies Act 2013) to render any service other Approving theauditors(appointedunder background, etc.ofthecandidate; after assessing the qualifications, experience and the financefunctionordischargingthatfunction) time Finance Director or any other person heading Approval ofappointment ofCFO(i.e.thewhole- Overseeing thefunctioningofsame; the CompanyasperWhistleBlowerPolicy. Review of the Whistle Blower mechanism of and investments; Reviewing and Scrutinizing the inter-corporate loans transactions submitted by themanagement; Reviewing thestatementsofsignificantrelatedparty its subsidiarycompanyorassociatecompany; parties to an office or place of profit in the Company, appointment andrevisioninremunerationofrelated of theCompanywithrelated parties including Approval orsubsequent modificationoftransactions employees; fraud committed against thecompanybyitsofficers/ Government) with regard to any offence involving statutory auditors (before submission to the Central Review andcommentuponthereportmadeby matter totheBoard; systems of a material nature and reporting the fraud orirregularityfailureofinternalcontrol auditors intomatterswherethereisasuspected Reviewing the internal investigations by the internal thereon; and any other significant findings and follow-up audit reportsrelatingtointernalcontrolweaknesses Discussion with the internal auditors on internal year 2018-19isdetailedbelow: by themembersofCommitteeduringfinancial along withthedetailsofmeetingsheld and attended Committee oftheBoard of DirectorstheCompany The compositionof the Nomination and Remuneration year 2018-19onApril05,2018,andNovember14,2018. The Committeemet2(Two)timesduringthefinancial Regulations. Companies Act, 2013 and Regulation 19 of the Listing is in compliance with the provisions of Section 178 of the Committee is governed by its Charter and its composition The roleoftheNominationand Remuneration NOMINATION ANDREMUNERATIONCOMMITTEE 32. 31. 30. 29. 28. 27. Directors. Any other matter referred to by theBoard of party transactions;and party transactions and also dealing with related Review and approve, policyonmaterialityofrelated determination ofmaterialsubsidiaries; Review andapprove,policyformulated for dividends) andcreditors,ifany; shareholders (incaseofnon-paymentdeclared payment tothedepositors,debentureholders, Looking intoreasonsforsubstantialdefaultsin this matter; recommendations totheBoardtakeupstepsin a public or rights issue, and making appropriate agency monitoringtheutilizationofproceeds notice and the reportsubmitted by the monitoring those stated in the offer document / prospectus / statement offundsutilizedforpurposesotherthan (public issue,rightspreferentialetc.),the uses / application offundsraisedthrough an issue Reviewing, withthemanagement,statementof valuation reportandfollow-up thereon; net-worth/ liabilitiesoftheCompany.Reviewing and conditions forconductingthevaluationofassets/ Appointing registered valuers and defining the terms 7. 6. 5. 4. 3. 2. 1. and theNominationRemunerationPolicy: responsibilities inaccordancewiththeprovisionsoflaw empowered with the following terms of reference and The Nomination and Remuneration Committee is acts asSecretarytotheCommittee. Shri K.Yugandhar,CompanySecretaryofthe has resignedfromtheBoard. **Mr.Venkata Ratnam Paluri, Director of the Company demised on July 01, 2018 and Dr.Venkateswarulu Peesapati, *Appointed due toRe-ConstitutionofNominationandRemunerationCommitteeon13thAugust,2018 Mr.Subhash Varalwar* Mrs.Umanath Varahabhotla Name oftheDirector Mr. NixonPatel Dr. VenkateswaruluPeesapati** Mr. VenkataRatnamPaluri** Prof. BhagvanthRaoMamidpalli decide fromtimetotime. Undertake any other matters as the Board may Company; and the remuneration,payabletoDirectorsofyour Reviewing andrecommendingtotheBoard, evaluation ofIndependentDirectors; Directors on the basis of the report of performance and reviewthetermofappointmentIndependent Independent Directors,Board/CommitteesofBoard performance andformulatecriteriaforevaluationof Carry outtheevaluationofeverydirector’s appointment and removal; laid down,andrecommendtotheBoardtheir management inaccordancewiththecriteria directors and who maybeappointed in senior Identify persons who are qualified to become Devise apolicyonBoardDiversity; administration, implementation; personnel and other employees, ESOPs remuneration ofthedirectors,keymanagerial Recommend to theBoard a policy,relatingtothe positive attributesandindependenceofadirector; Formulate a criteria for determining qualifications, Nature ofMembership Chairman Member Member Member Member Member of theBoard’sReportinthisreport. MGT- 9(ExtractoftheAnnualReturn) whichformspart the abovementioned Directors arestated in theForm being inforce).Thedetailsofthe Remunerationpaidto modification(s) orre-enactmentsthereof,forthetime Personnel) Rules,2014(includinganystatutory (Appointment andRemunerationofManagerial any, of the Companies Act, 2013 read with Companies 197, 203,ScheduleVand other applicable provisions,if which wasinaccordancewiththeprovisionsofSection including remuneration payable to them were approved years .Thetermsand conditions of theirappointment time Directors)ofyourCompanyforaperiodfive(5) Varalwar and Shri.Srirambatla Raghunandan (Whole- Director, Shri.ManoharRaoVaralwar,Shri.Sandeep appointment of Shri.Santosh Varalwar as Managing held on 30thSeptember,2015approved the re- The shareholdersofyourCompanyatthe27thAGM WHOLE -TIMEDIRECTORS: REMUNERATION TOTHEMANAGINGDIRECTOR& Nomination andRemunerationPolicyofyourCompany. paid to the Directors is as per the terms laid out in the 178 oftheCompaniesAct,2013.Theremuneration matters asprovidedundersub-section (3)ofSection positive attributes,independenceofDirectorsand other remuneration including determination of qualifications, your Companyalongwithcriteriaforappointmentand and IndependentDirectorsontheBoardof appropriate composition of Executive, Non-Executive The Nomination and Remuneration Policy provides for REMUNERATION: POLICY ONDIRECTOR’SAPPOINTMENTAND Held 2 2 2 2 2 2 Number ofMeetings Attended 1 1 0 0 1 2

81 Annual Report 2018-19 82 VIVIMED LABS LIMITED held on30thSeptember,2011approvedthepayment The shareholders of your Company at their 23rd AGM COMMISSION TONON–EXECUTIVEDIRECTORS: your Companyand its goals. performance objectivesappropriatetotheworkingof fixed and incentive pay reflecting short and long term Senior Managementinvolvesabalancebetween remuneration totheKeyManagerialPersonneland of your Company. The Committee ensures that the reviews the performance of the senior management The NominationandRemunerationCommittee SENIOR MANAGEMENT: REVIEW OFPERFORMANCEANDCOMPENSATIONTO *Dr.Venkateswarulu Peesapati,hasresignedfromtheBoard. *Mr.Venkata RatnamPaluri,DirectoroftheCompanydemised onJuly01,2018 Note: during thefinancialyear2018-19 isdetailedbelow: committee oftheBoardDirectors ofyourCompany The constitutionofthestakeholdersrelationship 20 oftheListingRegulations. Section 178 of the Companies Act, 2013 and Regulation committee is in compliance with the provisions of The composition of the stakeholders relationship STAKEHOLDERS RELATIONSHIPCOMMITTEE Whole timeDirector Mr.Srirambatla Raghunandan, Whole timeDirector Mr.Sandeep Varalwar, Whole timeDirector Dr.Manohar RaoVaralwar, Managing Director Mr.Santosh Varalwar, Non ExecutiveDirector Mr.Subhash Varalwar, Independent Director Mrs.Umanath Varahabhotla, Independent Director Mr.Nixon Patel, Name oftheDirector Independent Director Dr. VenkateswarluPeesapati,* Independent Director Prof.Bhagvanth RaoMamidpalli, Independent Director Mr.Venkata RatnamPaluri,* Mr. VenkataRatnamPaluri,* Name oftheDirector Membership 50,00,004 60,00,004 60,00,004 60,00,004 Nature of Member Salary ------Perquisites* ------year 2018-19areasfollows: paid to theDirectorsofCompanyforfinancial Directors ofyourCompany.Detailstheremuneration where nosittingfeeswerepaid)totheNon-Executive meetings (exceptManagementCommitteemeetings, sittings feesforattendingtheBoards/otherCommittee paid During thefinancialyear2018-19,yourCompany DURING THEYEAR2018-19: DETAILS OFREMUNERATIONPAIDTODIRECTORS percent ofthenetprofitsyourCompany. Company bywayofcommissionnotexceedingone(1) of remuneration to the Non-Executive Directors of your Secretary totheCommittee. with therequirementsofSecurities Lawandactsas Shri.K.Yugandhar isthecompliance officerforcomplying demised onJuly01,2018 *Mr.Venkata RatnamPaluri,DirectoroftheCompany Note:- Mr.Nixon Patel Mr.Subhash Varalwar Dr.Manohar RaoVaralwar Mr.Santosh Varalwar C25,000/- (RupeesTwentyfivethousandonly)for Sitting fees 2,25,000 3,75,000 4,25,000 25,000 50,000 25,000 - - - - Commission ------Chairman Member Member Member (Amount inC) Amount D 50,00,004 60,00,004 60,00,004 60,00,004 2,25,000 3,75,000 4,25,000 25,000 50,000 25,000 financial year2018-19aregivenbelow: and responded and the status thereof during the Details pertainingtothenumberofcomplaintsreceived of thesecurityholdersyourCompany. shareholders and investors and to resolve the grievance enquiring intoandredressingcomplaintsof The terms of reference of the Committee includes acts asSecretarytotheCommittee. Shri.K.Yugandhar, Companysecretary oftheCompany Board. *Dr.Venkateswarulu Peesapati, has resigned from the Note: year 2018-19isdetailedbelow: by themembersofCommitteeduringfinancial along withthedetailsofmeetingsheld and attended Committee of the Board of Directors of your Company financial year2018-19.TheconstitutionoftheCSR The CommitteemetonMarch27,2019during the 2013. with provisions of Section 135 of the Companies Act, The compositionoftheCSRCommitteeisinalignment COMMITTEE CORPORATE SOCIALRESPONSIBILITY(CSR) replied/ ActionuploadedinSEBIScores. from shareholdersandthesamehasbeenresolved/ FY 2017-2018throughSEBISCORES/NSE/BSE/Directly complaints in relation to non-payment of dividend for However thecompanyduring theyearreceived25 Note: Rao Varalwar Dr. Manohar Varalwar Mr. Santosh Peesapati* kateswarulu Dr. Ven Rao Mamidpalli Prof. Bhagvanth Director Name ofthe the year No. ofcomplaintspendingattheend No. ofcomplaintsresolvedduring theyear No. ofcomplaintsreceived during theyear - Membership Nature of Member Member Member Member Held 1 1 1 1 Number of Meetings Attended 1 0 0 1 0 1 1 placed ontheCompany’swebsite andcanbeaccessed The policy on related party transactions has been Listing Regulations. out in the CompaniesAct,2013 and Regulation 23ofthe Company wereincompliancewiththeprovisionsset Also, theRelatedPartyTransactionsundertakenbyyour AOC-2 formingpartofthisAnnualReport. of the related party transactions are set out in the Form course ofbusinessand on arm’slengthbasis.Thedetails related parties, during the FY.2018–19, were in ordinary All transaction entered into by your Company with RELATED PARTYTRANSACTIONS vivimedlabs.com/investor-relations. be accessedthroughthefollowinglink:http://www. been placed on the website of your Company and can The Policy for determining “material” subsidiaries has subsidiaries ofyourCompany. statements including investments by the unlisted basis. TheAuditCommitteereviewsthefinancial at theBoardmeetingofyourCompanyonperiodical Board meetingsofthesubsidiarycompaniesareplaced the ListingRegulations,Asynopsisofminutes Indian subsidiarycompanyintermsofRegulation16 Your Companydoesnothaveanymaterialnon-listed SUBSIDIARY COMPANIES www.vivimedlabs.com/investor-relations. and can beaccessed through thefollowinglink:http:// Policy hasbeenplacedonthewebsiteofyourCompany part oftheCSRSectioninAnnualReport.The The detailsoftheCSRinitiativesyourCompanyform 4. 3. 2. 1. ITS TERMSOFREFERENCE,INTERALIA,TO: THE CSRCOMMITTEEISEMPOWERED,PURSUANTTO determine fromtimetotime. Such otheractivitiesastheBoard of Directorsmay Company; and activities proposed to beundertakenbythe ensuring implementationoftheprojects/programs/ Prepare atransparentmonitoringmechanismfor Policy oftheCompanyfromtimetotime; Monitor implementationand adherence totheCSR incurred on theactivities; Recommend theamountofexpendituretobe

83 Annual Report 2018-19 84 VIVIMED LABS LIMITED Mr.Santosh VaralwarandMrSandeep Company andalsorelatedtoMr.ManoharRaoVaralwar, non-Executive Directorisalsoapromoterofthis beginning ofeachfinancialyear.Mr.Subhash Varalwar, this effectisalsosubmittedbyalltheDirectorsat in accordance with the applicable laws. A declaration to Company, except for the remuneration payable to them the Non-Executive - Independent Directors and your There isnopecuniaryorbusiness relationshipbetween YOUR COMPANY: PECUNIARY ORBUSINESSRELATIONSHIPWITH DIRECTORS WITHMATERIALLYSIGNIFICANT, investor-relations. through thefollowinglink:http://www.vivimedlabs.com/ Company passedthefollowingresolutionthroughpostalballot asperthedetailsbelow: Administration) Rules, 2014 (including any statutory amendment(s) or re-enactment(s) made thereunder), your During theyear,pursuant toSection110of the Companies Act, 2013 read with theCompanies (Management and Postal Ballot with requisite majority. All special resolutions set out in the notices for the AGMs were passed by the shareholders at the respective meetings 2015-16 Year(s) 2016-17 2017-18 7 PlotNo.8/A,KolharIndus Plot No.78/A,KolharIndus Plot No.78/A,KolharIndus Bidar –585403,Karnataka. Bidar –585403,Karnataka trial Area,Bidar–585403, Location(s) Karnataka. trial Area, trial Area, - - - September 30,2016 September 29,2017 September 27,2018 Meeting(s) Date Resolutions passed therein areasunder: Details oflastthreeAGM’sandthesummarySpecial GENERAL BODYMEETINGS May, 2019. Directors ofyourCompany at their meeting held on 30th Mr.S.Rahgunandan, CFOwasplacedbeforetheBoardof year 2018-19signedbyShri.SantoshVaralwar,MD,and Regulations, the MD& CFO certificate for the financial As required under Regulation 17 of the Listing MANAGING DIRECTOR&CFOCERTIFICATION 11.30 AM 11.30 AM 11.30 AM Time No. ofspecialreso lution(s) setoutat the AGM 1 2 1 - Resolution.1: SaleofSpecialtyChemicalBusinesstheCompany(Ordinary Resolution) The detailsofvotingpatternforpostalballotaregivenbelow: 4. 3. 2. 1. On 11.10.2018: process inafairand transparent manner. Shri.N.V.S.S.S.Rao, PracticingCompanySecretarywasappointed as theScrutinizerforcarryingoutpostalballot Resolution.3: FCCB/ADR/GDR/QIPetc.,(SpecialResolution) (SpecialResolution) Resolution.2: ToissueConvertibleWarrantstoPromoter(s)/PromoterGroup of theCompanyonpreferentialbasis Preferential basis(SpecialResolution) Resolution.1: ToissueConvertibleWarrantstoNon-Promoter(s)/Non-PromoterGroupoftheCompanyon The detailsofvotingpatternforpostalballotaregivenbelow: 3. 2. 1. On 30.04.2018: 13175423 26497786 26499313 26499513 Cast No. ofTotalVotes Cast No. ofTotalVotes Cast No. ofTotalVotes Cast No. ofTotalVotes Adoption ofnewsetArticlesAssociationasperCompanies Act,2013 To issueConvertibleWarrantstoNon-Promoter(s)/Non-Promoter GroupoftheCompanyonPreferentialbasis To issueConvertibleWarrantstoPromoter(s)/PromoterGroup oftheCompanyonpreferentialbasis Sale ofSpecialtyChemicalBusinesstheCompany FCCB/ADR/GDR/QIP etc., To issueConvertibleWarrantstoPromoter(s)/PromoterGroupoftheCompanyonpreferentialbasis To issueConvertibleWarrantstoNon-Promoter(s)/Non-PromoterGroupoftheCompanyonPreferentialbasis resolution Cast in“Favour”of Number ofVotes resolution Cast in“Favour”of Number ofVotes resolution Cast in“Favour”of Number ofVotes resolution Cast in“Favour”of Number ofVotes 13135350 24854347 26496019 26495169 Favour of votescastin % ofTotalnumber Favour of votescastin % ofTotalnumber Favour of votescastin % ofTotalnumber Favour of votescastin % ofTotalnumber 93.798 99.988 99.984 99.70 resolution cast “Against”the Number ofvotes resolution cast “Against”the Number ofvotes resolution cast “Against”the Number ofvotes resolution cast “Against”the Number ofvotes 1641889 40343 1744 2794 Against of votescast % oftotalnumber Against of votescast % oftotalnumber Against of votescast % oftotalnumber Against of votescast % oftotalnumber 6.196 0.007 0.011 0.30

85 Annual Report 2018-19 86 VIVIMED LABS LIMITED Resolution.4: AdoptionofnewsetArticlesAssociationasperCompaniesAct,2013:(SpecialResolution) Preferential basis(SpecialResolution) Resolution.3: ToissueConvertibleWarrantstoNon-Promoter(s)/Non-PromoterGroupoftheCompanyon (Special Resolution) Resolution.2: physical ballot are requested to return the forms, duly on the cut – off date. Members desiring to vote through of yourCompanyinthenames oftheshareholdersas Voting rightsarereckonedonthe paidupvalueofshares Act, 2013and the Rulesissued thereunder. dispatch and other requirements under the Companies in thenewspapersdeclaringdetailsofcompletion Transfer Agents.YourCompanyalsopublishes anotice depository participants / Company’s Registrar & Share electronic formtotheemailaddressesregistered with the off date.Thepostalballotnoticeissenttomembersin Register of Members / list of beneficiaries as on cut – envelopes toitsmemberswhosenamesappearonthe and forms along with postage prepaid business reply Your Companydispatchesthepostalballotnotices by physical ballotorthroughe-voting. members. Themembershavetheoptiontovoteeither for thepurpose ofprovidinge-votingfacilitytoallits members. TheCompanyengagestheservicesofCDSL provided electronic voting (e-voting) facility to all its read with the Rules issued thereunder, your Company applicable provisions of the Companies Act, 2013 In compliancewithSections108,110andother Procedure forPostalBallot: process inafairand transparent manner. Shri.N.V.S.S.S.Rao, Practicing Company Secretary was appointed as the Scrutinizer for carrying out the postal ballot 33054245 34347168 34347168 Cast No. ofTotalVotes Cast No. ofTotalVotes Cast No. ofTotalVotes To issueConvertibleWarrantstoPromoter(s)/PromoterGroup of theCompanyonpreferentialbasis resolution Cast in“Favour”of Number ofVotes resolution Cast in“Favour”of Number ofVotes resolution Cast in“Favour”of Number ofVotes 31955949 34278815 34282215 Favour of votescastin % ofTotalnumber Favour of votescastin % ofTotalnumber Favour of votescastin % ofTotalnumber 96.67 99.80 99.81 2. 1. DISCLOSURES been passed,ifapproved by requisitemajority. date onwhichtheresolutionwouldbedeemedtohave The dateofdeclaration of results Postal Ballotshallbe to the Stock Exchanges and Registrar & Transfer Agents. (www.vivimedlabs.com), besidesbeingcommunicated results aredisplayedonthewebsiteofyourCompany Chairman / authorized officials of your Company. The of thevotingbypostalballotarethenannounced the completion of scrutiny and the consolidated results The ScrutinizersubmitshisreporttotheChairman,after date ofe-voting. to vote before the close of business hours on the last to exercise their votes by electronic mode are requested before thecloseofvotingperiod.Membersdesiring completed and signed to asreachtheScrutinizer Company bythestatutoryauthorities inthisregard. penalties imposed or stricturespassed against your on matters related to Capital Markets. There were no requirements oftheStockExchange(s) andtheSEBI Your Companyhascomplied withallthe conflict withtheinterestsofCompanyatlarge. transactions of your Company which have potential There are no materially significant related party resolution cast “Against”the Number ofvotes resolution cast “Against”the Number ofvotes resolution cast “Against”the Number ofvotes 1098296 68353 64953 Against of votescast % oftotalnumber Against of votescast % oftotalnumber Against of votescast % oftotalnumber 0.20 0.19 3.33 4. 3. said Code of Conduct for the financial year 2018-19. Personnel haveaffirmedtheir compliancewiththe All the Board Members and the Senior Management has been posted on the website of your Company. 17 of the Listing Regulations. The Code of Conduct accordance with the requirement under Regulation Senior ManagementPersonnelofyourCompanyin all theemployeesincludingBoard Members and Your CompanyhasadoptedaCodeofConductfor CODE OFCONDUCT • • • honesty, integrityandethicalbehavior; by adoptinghigheststandardsofprofessionalism, business associates in an ethical and lawful manner employees, customers,suppliers, shareholdersand and workingwithallitsstakeholders,including Your Company believes in conducting its business Vigil Mechanismand Whistle BlowerPolicy: There isapenaltybyStockExchanges Committee ofyourCompany. No personnelwasdeniedaccesstotheAudit Board ofDirectorstheCompany;and to the Chairperson of the Audit Committee of the grave nature,makeProtectedDisclosuresdirectly The employees may, where the matters are of Protected DisclosurestotheEthicsCommittee your Companyorbusiness associatescanmake Disclosures underthispolicy.Employeesof and investigatingallcomplaints Protected Human Resourcesforthepurpose ofreceiving Director, theComplianceOfficerandHead– has beenconstitutedcomprisingoftheManaging In accordancewiththePolicy,anEthicsCommittee commitment toopencommunication; ethical, moraland legal business conduct and its Company’s commitmenttohigheststandardsof whereby concerns can be raised in line with your and to establishaformalmechanismorprocess employees andBusinessAssociatesaframework Blower Policywithanobjectivetoprovideits Regulations your Company has adopted a Whistle accordance withRegulation22oftheListing an employeeand/orabusinessassociate.In any other unfair practice being adopted against discrimination, harassment, victimization or Your Companyprohibitsanykind of 10. REPORTINGOFINTERNALAUDITOR: 9. 8. 7. 6. 5. CODE OF CONDUCT TO REGULATE, MONITOR The Internal Auditors reports to the Managing part oftheReport. Varalwar, ManagingDirectoroftheCompanyforms The declaration to this effect signed by Shri.Santosh CEO. Director andhispositionisseparate fromthatofthe The Chairman of the Board is a Non- executive SEPARATE POSTSOFCHAIRMANANDCEO: qualification on your Company’s financial statements. During theyearunderreview,therewasnoaudit AUDIT QUALIFICATIONS: of yourCompany. periodic basis which are also available on the website Equity Analysts on the Company’s performance on a makes presentations to Institutional Investors and its website(www.vivimedlabs.com).YourCompany Company uploadsitsHalfyearly,quarterlyresultson shareholders ofyourCompanyandadditionally, your Yearly resultsofyourCompanyaresenttoall SHAREHOLDER RIGHTS: the CorporateOfficeofyourCompany. Company has been provided a Chairman’s Office at The Non-Executive (Independent) Chairman of your THE BOARD: Company”. unpublished pricesensitiveinformationaboutthe the sharesofCompanywhileinpossession are restricted in purchasing, selling and dealing in (“Designated Persons”).TheDesignatedPersons price sensitiveinformationrelatingtotheCompany who areexpectedtohaveaccessunpublished such otherdesignatedemployeesoftheCompany, forming partofPromoter(s)/Promotergroup(s)and Directors, Senior Management Personnel, persons The Codehasbeenmadeapplicable tocover (Prohibition ofInsiderTrading)Regulations,2015. by theBoard to conformtheprovisionsofSEBI Monitor and Report Trading by Insiders approved Vivimed LabsLimited’CodeofConduct toRegulate, AND REPORTTRADINGBYINSIDERS: Director

87 Annual Report 2018-19 88 VIVIMED LABS LIMITED Your Companyhaspaidthelisting feestoBSEand NSE forthe financialyear2018-19. V. ListingonStockExchanges:Company'sequitysharesarelisted at: GENERAL SHAREHOLDERINFORMATION 2. 1. MEANS OFCOMMUNICATION Bandra-Kurla Complex,Bandra (East),Mumbai-400051 Exchange Plaza,Floor5,Plot# C/1, National StockExchangeofIndia Limited, Dalal street,Mumbai-400001. Phiroze JeeJeebhoy Towers, BSE Limited, Name andAddressoftheStockExchange iii ii i Committee. presents his internal audit observations to the Audit of the Board of Directors of your Company and participates in the meetings of the Audit Committee and hasdirectaccesstotheAuditCommitteehe Report, Quarterly/Halfyearly/Nine-monthsand the Company, status of unclaimed dividend, Annual information onvariousannouncementsmadeby ‘Investor relations’ on the Company’s website gives Regulations, aseparatededicated section under In compliancewithRegulation46oftheListing announcements, amongstothersareinaccordancewiththeListingRegulationsfiledelectronically. All periodicalcompliancefilings,interalia,shareholdingpattern,CorporateGovernanceReport,corporate Website and NewsReleases: Karnataka newspapers. Express and Karnataka edition of Samyutka and vernacularlanguagenewspaper,viz.,Financial of theCompanywerepublishedinleadingEnglish Quarterly, half-yearlyand annual financialresults Publication ofquarterlyresults: Fourth QuarterandAnnual Third Quarterand Nine Months Second Quarterand Half Yearly First Quarter Tentative Schedulefordeclarationofresultsduringthe financial year2019-20 Venue Time Date Annual GeneralMeeting Date ofBookclosure Financial Calendar: September 25,2019to30,(bothdaysinclusive) Around Last WeekofMay,2020 Around Second WeekofFebruary,2020 Around Second WeekofNovember2019 Around Second WeekofAugust,2019 1st Aprilto31stMarch Plot No.78-A,KolharIndustrial Area,Bidar–585403,Karnataka. 11:30 a.m. Monday, 30thdayofSeptember2019 31st AnnualGeneralMeeting 3. on theCompany’swebsite. institutional investorsandanalystsarealsoavailable news releases and presentations made to the policies of the Company. Your Company’s official Annual financial results along with the applicable BSE forcorporates. BSE Listing is a web-based application designed by for corporates. NEAPS is a web-based application designed by NSE Centre: System), BSECorporateCompliance&theListing NEAPS (NSEElectronicApplicationProcessing by theSEBI. Regulations andotherrulesregulationsissued Exchange of India Limited in terms of the Listing information to BSE Limited and the National Stock Your Companymakestimelydisclosuresofnecessary Stock Exchange: VIVIMEDLAB 532660 Scrip Code INE526G01021 ISIN forDepositories of theBSESensex(ii)NSEvis-à-vismovementNiftyforyear2018-19(basedonmonthendclosing): The ChartsbelowshowsthecomparisonofyourCompany’ssharepricemovementon(i)BSEvis-à-vis VII. Performanceincomparisontobroad-based Indices Labs Limited’ssharesonBSEandNSE. Note: High and low are in website NSE and BSE Source: The monthlyhighandlowpricesvolumesofyourCompany’ssharesatBSENSEfortheyearended31 VI. MarketPriceData March, 2019areasunder: Month Jul 18 Jun 18 May 18 Apr 18 Dec 18 Nov 18 Oct 18 Sep 18 Aug 18 Mar 19 Feb 19 Share Price (I) Jan 19

100 Share Price (I) 20 40 60 80 20 40 60 80 0 Apr 18May 18 Apr 18May 18 NSE Niftyvs.VivimedStockPrice BSE Sensexvs.VivimedStockPrice NSENifty BSESensex High (D) Jun 18 Jun 18 65.50 70.70 75.00 82.45 41.00 43.60 46.50 69.90 75.80 27.00 25.10 38.15 C per traded share. Volume is the total monthly volume of trade (in numbers) in Vivimed VivimedStockPrice Jul 18 Jul 18 VivimedStockPrice Low (D) 54.70 56.65 56.70 71.40 35.30 35.50 34.50 45.70 52.45 22.05 19.90 21.25 Aug 18 Aug 18 BSE Sep 18 Sep Sep 18 Sep (No. ofShares) Volume 26,63,697 14,77,746 14,01,884 11,72,950 25,78,953 19,16,282 23,95,956 14,47,307 20,06,543 36,23,262 9,33,256 6,24,341 Oct 18 Oct Oct 18 Oct 2018 2019 Nov 18 Nov 18 High (D) Dec 18 Dec Dec 18 Dec 70.90 74.80 82.50 43.80 47.10 69.90 75.70 65.30 28.25 25.25 38.20 41.00 Jan 19 Jan 19 Low (D) 56.70 56.60 71.50 35.45 34.50 45.65 52.40 54.60 21.80 20.05 21.35 35.00 Feb 19 Feb 19 NSE Mar 19 Mar Mar 19 Mar (No. ofShares) 1,58,55,223 1,22,23,727 1,33,75,793 1,32,93,805 1,69,83,912 Volume 73,77,955 72,57,490 72,88,923 41,48,412 49,44,928 65,14,365 46,93,761 4000 6000 8000 10000 12000 12000 19000 26000 33000 40000 st

Nifty BSE Sensex

89 Annual Report 2018-19 90 VIVIMED LABS LIMITED Distribution ofshareholdingsharesyourCompanyason31stMarch,2019isfollows: X. Distribution ofShareholding enactment(s) forthetimebeinginforce)andfilesacopyofsaidcertificatewithBSE&NSE. Company SecretaryinPracticeasrequiredunderListingRegulations(includinganystatutorymodification(s)orre- from timetoasperListingRegulations.YourCompanyobtainsahalf-yearlycompliancecertificate A summaryofapproved transfers, transmissions, deletion requests, etc.,are placed before the Board of Directors of sharesorrequests fordeletionofnametheshareholder,etc.,todesignatedofficialsyourCompany. The Board of DirectorsyourCompanyhavedelegated the authoritytoapprovetransferofshares,transmission within thestipulatedtime,subjecttodocumentsbeingvalidandcompleteinallrespects. Private Limited.Theshareslodgedfortransferareprocessedandsharecertificatesduly endorsedarereturned The share transfer activities in respect of the shares in physical mode are carried out by M/s.Aarthi Consultants IX. ShareTransferSystem Email :[email protected];website:www.aarthiconultants.com Fax :040-27632184 Phone :040-27638111/27634445 1-2-285, Domalguda,Hyderabad,India–500029 Aarthi ConsultantsPrivateLimited (for Sharesheld in bothPhysicaland Demat mode) VIII. Registrar&ShareTransferAgents: Shareholding Patternason31stMarch,2019: Sl No (a) (1) (b) (a) (A) (B) (b) Sl No 1 2 3 5 4 6 7 8 Mutual Funds/UTI Institutions Public shareholding Group (A) Total ShareholdingofPromoterand Bodies Corporate Individuals/Hindu UndividedFamily Shareholding ofPromoterandGroup Financial Institutions/Banks 100001 &Above 50001 -100000 20001 -30000 10001 -20000 40001 -50000 5001 -10000 30001- 40000 Category ofShareholder(s) Category 1 -5000 Total: Holders 33,380 31,097 1,132 561 199 103 147 87 54 Percentage Holders Shares @D2/-each 93.16 Total Numberof 3.39 1.68 0.26 0.16 0.31 0.45 100 0.6 2,83,84,045 1,23,12,000 1,60,72,045 3,95,555 - 82,523,915 12,530,003 52,638,783 Shares 4,216,327 4,166,101 2,451,364 1,576,971 1,246,277 3,698,089 % oftotalno. 165,047,830 105,277,566 of shares 25,060,006 Amount 8,432,654 4,902,728 8,332,202 3,153,942 2,492,554 7,396,178 34.39 14.92 19.48 0.48 - Percentage Amount 15.18 63.79 5.11 2.97 5.05 1.91 1.51 4.48 100 Category-wise shareholdingason31stMarch,2019: (a) (2) (b) (c) Sl No (d) (e) (c) (d) (f) (g) (h) (i) Category ofShareholder(s) Bodies Corporate Non-Institutions Sub-Total (B)(2) (ii) Individualshareholdersholdingnominalshare (i) Individualshareholdersholdingnominalshare Individuals dent ofIndia o-eiet nin NI - Repatriable - (NRI) Indian Non-Resident Corporate Bodies - Foreign Bodies Foreign - Bodies Corporate RBI with Registered NBFCs Others Foreign PortfolioInvestors Central Government/StateGovernment(s)/Presi Sub-Total (B)(1) Foreign National - FN - National Foreign Member Clearing o-eiet nin NI – o Repatriable Non – (NRI) Indian Non-Resident Trust Total (A)+(B) Total PublicShareholding(B)=(B)(1)+(B)(2)+(B)(3) Sub total(B)(3) 65.61 Public capital inexcessofC2lakh capital uptoC2lakh Category ofShareholder(s) Promoters 34.39 - Shares @D2/-each Total Numberof 33,57,497 8,25,23,915 5,41,39,870 5,02,90,688 2,36,32,936 37,53,052 66,35,942 44,47,735 40,48,647 91,50,685 13,69,840 9,55,116 - 96,130 96,130 17,000 32,787 - % oftotalno. of shares 100.00 65.61 60.94 28.64 11.09 0.12 4.55 8.04 0.12 5.39 4.91 0.02 1.16 1.66 0.04 4.07 - -

91 Annual Report 2018-19 92 VIVIMED LABS LIMITED AS ON31STMARCH,2019: DETAILS OFYOURCOMPANY’SDEMATERIALIZEDSHARES FORM ASON31STMARCH,2019: BREAK UPOFSHARESINPHYSICALANDDEMAT 4. 3. 2. 1. PHARMA DIVISION 1. SPECIALTY CHEMICALSDIVISION XIII. PLANTLOCATIONSASON31.03.2019: March, 2019. convertible intoequitysharesofC2/-eachason31st five thousand) outstanding employee stock options Your Companyhas34,95,000(Thirtyfourlakhsninety Instruments and their impactonequity: XII. Outstanding GDRs/ADRs/Warrants/Convertible M/s.Aarthi ConsultantsPrivateLimited. clarification, assistance or information, please contact in securitieselectronic/dematerialized form. Forany the earliestand avail ofthevariousbenefitsdealing form arerequestedtodematerializetheirsharesat Shareholders who continue to hold shares in physical XI. Dematerializationofshares Demat segment Physical seg Uttarakhand, D-9, Industrial Area, Haridwar – 249401, State – Particulars Singh Nagar–244713,StateUttarakhand, Plot No. 25, Kundeshwari Village, Kashipur, Udham Bollaram, Medak–502325,StateTelangana Plot No44A&41&44BAnrichIndustrial estate, Hyderabad –500055,StateTelangana D 125 & 128, Phase III, Jeedimetla Industrial Estate, State -KarnatakaPLANTLOCATIONS Plot No. 78/A, Kolhar Industrial Area, Bidar – 585403, Number ofshares TOTAL NSDL ment CDSL 81113205 - No. ofShares @ D2/-each 82523915 26585464 54527741 1410710 % oftotalshares 98.29054 % ofShares 32.21547 66.07507 1.70946 100.00 Fax: +912226449019-22 Tel.: +912226449000 Bandra (East),Mumbai400051, Maharashtra,India Plot No.C4-A,GBlock,BandraKurla Complex Securities andExchangeBoardofIndia XV. AddressesofRegulatoryAuthority/StockExchanges: its Registrar&TransferAgent. full addresswhilecorresponding with the Company and ID &ClientID,e-mailaddress,telephone numberand Shareholders arerequested to quote theirfoliono./DP Website: www.vivimedlabs.com [email protected] E-mail: Fax: 91-40-66086699 Tel: 91-40-66086608 Banjara Hills,Hyderabad,India–500034 Corporate Off:NorthEnd,RoadNo.2, (CIN: L02411KA1988PLC009465) Vivimed Labs Limited Company Secretary Yugandhar Kopparthi Company: to beacceptedatthefollowingCorporateOfficeof For thebenefitofshareholders,documentswillcontinue Fax :040-27632184,[email protected] Phone :040-27638111/27634445 Hyderabad, India–500029 1-2-285, Domalguda M/s.Aarthi ConsultantsPrivateLimited correspondence maypleasebeaddressed at: For anyqueriesrelatingtothesharesofyourCompany, XIV. AddressforCorrespondence: 2. 1. R&D CENTERS 7. 6. 5. Telangana Ltd. IDA, Nacharam, Hyderabad – 500076 State – H.No:A-1/ABC, MainRoad,Opp: Surana WiresPvt. Mallapur, Hyderabad -500076 State–Telangana R& DCenter,PlotNo:181,Sy.No.121/P,IDA Goregaon MumbaiEast-63,State–Maharatra 130, Shanta Indl. Estate, 1st Floor, IB Patel Road,, Uttarakhand, Kishlay , Kashipur, Uttarkhand – 110001, State – 500055, State–Telangana Plot No:8,PhaseV,IDAJeedimetla,Hydearabad, of thefinancialyearended 31st March,2019. that theyhavecompliedwiththeCodeofConduct forBoardMembersandSeniorManagementPersonnelinrespect the CompanyhasobtainedfromallmembersofBoardandSeniorManagementPersonnel,affirmation(s) I herebyconfirmthat: Sections 205A,205CoftheCompaniesAct,1956 In termsofSection123theCompaniesAct,2013and and ProtectionFund: XVI. Transferofunclaimeddividend to InvestorEducation Fax: +912222721919 Tel.: +912222721233 Dalal Street,Mumbai-400001,Maharashtra,India Phiroze JeejeebhoyTowers BSE Limited Fax: +912226598120 Tel.: +912226598100 Bandra (East),Mumbai-400051,Maharashtra,India Bandra KurlaComplex, Exhange Plaza,PlotNo.C/1,GBlock, National StockExchangeofIndia Date: 09.08.2019 Place: Hyderabad Sd/- Declaration ofCompliancewiththeCodeConduct financial yearended31stMarch,2019 Annexure toReportonCorporateGovernanceforthe Account’ XVII. WehavenoequitysharesUnclaimedSuspense the Company. information ondividendwhichremainsunclaimedwith placed onitswebsite(www.vivimedlabs.com),the lying withCompanies)Rules,2012,theCompanyhas Information regardingUnpaidandUnclaimedamounts Investor EducationandProtectionFund(Uploadingof the saidamountstoIEPF.Asperprovisionsof the dividend(s) from the Company before transfer of Members arerequested toensurethattheyclaim to the Investor Education and Protection Fund (IEPF). unpaid dividend account isrequired to betransferred a periodofsevenyearsfromthedatetransferto amount ofdividend remaining unclaimed or unpaid for Managing Director Santosh Varalwar

93 Annual Report 2018-19 94 VIVIMED LABS LIMITED Date: 09.08.2019 Place: Hyderabad

management oranemployeehavingasignificantroleintheinternalcontrolsystemoverfinancialreporting. instances of significant fraud of which they have become aware and the involvement therein, if any, of the financial statements;and significant changesinaccountingpoliciesduringtheyearandthatsamehavebeendisclosednotesto significant changesininternalcontroloverfinancialreportingduring theyear; We haveindicated to theAuditorsandAuditCommittee and thestepstheyhavetakenorproposetotakerectifythesedeficiencies. the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which they are aware the effectivenessofinternalcontrolsystemspertainingtofinancialreportingandhavedisclosedauditors We acceptresponsibilityforestablishingandmaintaininginternalcontrolsfinancialreportinghaveevaluated Company arefraudulent, illegalorviolativeoftheCompany’sCodeConduct. We herebycertifythat,tothebestofourknowledgeandbelief,notransactionsenteredintoduringyearby accounting standards,applicable lawsandregulations; these statementstogetherpresentatrueandfairviewoftheCompany’saffairsareincompliancewithexisting that mightbemisleading; these statementsdonotcontainanymateriallyuntruestatementoromitmaterialfact financial yearended31stMarch,2019and that tothebestofourknowledgeandbelief: We hereby certify that on the basis of the review of the financial statements and the cash flow statement for the Vivimed Labs Limited The BoardofDirectors Managing Director(MD)&CFOCertification DIN: 00054763 Managing Director Santosh Varalwar Varalwar Santosh Sd/-

DIN: 02029812 Whole TimeDirectorcumCFO S.Raghunandhan Sd/- efficiency oreffectivenesswithwhichthemanagementhasconducted the affairsofCompany. We furtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityofCompanynor at theAnnualGeneralMeetingheldon27.09.2018). SEBI (ListingObligationsand Disclosure Requirements)Regulations,2015(Exceptnon-paymentofdividend declared Corporate Governanceasstipulated inRegulation17to27andclauses(b)(i)ofsub-regulation(2)regulation46 made bytheDirectorsandmanagement,wecertifythatCompanyhascompliedwithconditionsof In ouropinionandtothebestofinformationaccordingexplanationsgivenusrepresentations statements oftheCompany. the conditionsofCorporateGovernance.Itisneitheranauditnorexpressionopiniononfinancial was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of The complianceofconditionscorporategovernanceisresponsibilitythemanagement.Ourexamination with stockexchange(s). of regulation46SEBI(ListingObligationsandDisclosureRequirements)Regulations,2015thesaidCompany for the year ended on March 31, 2019, as stipulated in Regulation 17 to 27 and clauses (b) to (i) of sub-regulation (2) We haveexaminedthecomplianceofconditionscorporategovernancebyVivimedLabsLimited(“theCompany”), The MembersofVivimed Labs Limited To, Date: 30.05.2019 Place: Hyderabad, UNDER REGULATION34(3)READWITHSCHEDULEVOFSECURITIESANDEXCHANGEBOARDINDIA(LISTING CERTIFICATE ONCOMPLIANCEWITHTHECONDITIONSOFCORPORATEGOVERNANCE OBLIGATIONS ANDDISCLOSUREREQUIREMENTS)REGULATIONS,2015 Company Secretaryinpractice NVSS SURYANARAYANARAO ACS No.5868 CP NO.2886 Sd/-

95 Annual Report 2018-19 96 VIVIMED LABS LIMITED SUB: Certificate under Schedule V(C)(10)(i) of SEBI (Listing Obligations and Disclosure Requirements) Regula Bidar –585403,Karnataka. Plot No.78-A,KolharIndustrial Area, Vivimed Labs Limited The Members, To 2019: rectors oftheCompaniesbySEBI/MinistryCorporateAffairsoranysuchstatutoryauthorityasonMarch31, following DirectorsoftheCompanyhavebeendebarred or disqualified from beingappointed or continuingasDi and representationfurnishedtomebytheCompany,itsofficersagents,Idoherebycertifythatnoneof Karnataka State, India (the Company).Inmy opinion after verifying records, documents provided and explanations (CIN: L02411KA1988PLC009465) having its Registered Office at Plot No.78-A, Kolhar Industrial Area, Bidar – 585403, 31, 2019, the records available with The Registrar of Companies , on the MCA 21 portal of M/s.Vivimed Labs Limited Act, 2013,SEBIRegulations, other applicable rulesand regulations thereunderforthefinancialyearended on March I have examined the records, books and papers of the Company as required to be maintained under the Companies tions, 2015.

Date: 30.05.2019 Place: Hyderabad, S.No 1 2 3 5 4 7 6 8 SANTOSH VARALWAR Name oftheDirector SUBHASH VARALWAR MANOHAR RAOVARALWAR SANDEEP VARALWAR BHAGVANTH RAOMAMIDPALLI RAGHUNANDAN SRIRAMBATLA NIXON PATEL UMANATH VARAHABHOTLA (Pursuant toRegulation34(3)andScheduleVParaCclause(10)(i)oftheSEBI CERTIFICATE OFNON-DISQUALIFICATIONDIRECTORS (Listing Obligationsand Disclosure Requirements)Regulations,2015) Whole-time Director-cum-ChiefFinancialOfficer Non-Executive Director Independent Director Independent Director Independent Director Whole-time director Whole-time director Managing director Designation Company Secretaryinpractice NVSS SURYANARAYANARAO 00054763 00054789 00117862 00059815 01717281 01682951 06539204 02029812 ACS No.5868 DIN No. CP NO.2886 Sd/- - -

include:- The specificRegulations, whose provisions and the circulars/guidelines issued thereunder, have been examined, I, N.V.S.S.SuryanarayanaRao,PracticingCompanySecretary(ACSNo.5868&CPNo.2886)haveexamined: Bidar –585403,Karnataka 78/A, KolharIndustrialArea, Vivimed LabsLimited The Members To Secretarial compliancereportofVivimedLabsLtdfortheyearended31stMarch,2019 and basedontheaboveexamination, I/Weherebyreportthat,duringtheReviewPeriod: (h) (g) (f) (e) (d) (c) (b) (a) (b) (a) (d) (c) (b) (a) Securities and Exchange BoardofIndia(ProhibitionInsider Trading)Regulations,2015; Shares) Regulations,2013;;(Notapplicable totheCompanyduringreviewperiod) Securities and Exchange Board of India (Issue and Listing of Non- Convertible and Redeemable Preference ble totheCompanyduringreviewperiod) Securities andExchangeBoardofIndia(IssueListingDebt Securities)Regulations,2008;;(Notapplica Securities and Exchange BoardofIndia(ShareBased Employee Benefits)Regulations,2014; Company duringthereviewperiod) Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018; ;( Not applicable to the Securities and Exchange BoardofIndia(SubstantialAcquisitionSharesandTakeovers)Regulations, 2011; applicable totheCompanyduring thereviewperiod) Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018; (Not Securities and Exchange BoardofIndia(ListingObligationsandDisclosureRequirements) Regulations,2015; guidelines issued thereunder bytheSecuritiesand Exchange BoardofIndia(“SEBI”); the SecuritiesContracts(Regulation)Act,1956(“SCRA”),rulesmadethereunderandRegulations,circulars, issued thereunder;and the Securities and Exchange Board of India Act, 1992 (“SEBI Act”) and the Regulations, circulars, guidelines year ended31stMarch,2019(“ReviewPeriod”)inrespectofcompliancewiththeprovisions: any otherdocument/filing,asmayberelevant,whichhasbeenrelied upon tomakethiscertification,forthe website ofthelisted entity, the filings/submissionsmadebylisted entity tothestockexchanges, listed entity”), all the documents and records made available to us and explanation provided by Vivimed Labs Ltd (“the (Pursuant toSEBI-CIR/CFD/CMD/1/27/2019Dated February 08,2019) -

97 Annual Report 2018-19 98 VIVIMED LABS LIMITED

(a)

(c) (b) Date: 21.05.2019 Place: Hyderabad, by SEBI through various circulars) various through SEBI by ing onactionstocomplywiththeobservationsmade in thepreviousreportsdonotarise. thereunder, exceptinrespectofmattersspecifiedbelow:- The listed entity has complied with the provisions of the above Regulations and circulars/ guidelines issued thereunder: This being the first reporting since the notification of the requirements tosubmit the report, report The listedentityhastakenthefollowingactionstocomplywithobservationsmadeinpreviousreports: subsidiaries eitherbySEBIorStockExchanges The following are the details of actions taken against the listed entity/ its promoters/ directors/ material guidelines issued thereunder insofarasitappearsfrommy/ourexaminationofthoserecords. The listed entity has maintained proper records under the provisions of the above Regulations and circulars/ S.No S.No S.No guidelines includingspecific Practicing Company Compliance Requirement Observations ofthe (Regulations/ circulars/ previous reports Action takenby Secretary inthe clause) for theyearended… undertheaforesaidActs/Regulationsandcirculars/guidelinesissued Details of Observations made violation (The years are to be be to are years (The compliance report in thesecretarial mentioned) Deviations (including under the Standard Operating Procedures issued issued Procedures Operating Standard the under (including Details ofactiontakenE.g.fines, warning letter,debarment,etc. NONE NONE NONE Actions takenbythe listed entity,ifany Observations/ Remarksofthe Practicing Company Secretary Company Secretaryinpractice NVSS SURYANARAYANARAO ACS No.5868,CPNO.2886 actions takenbythe Practicing Company Comments ofthe Secretary onthe Secretary, ifany. listed entity Observations/ the Practicing remarks of Company Sd/-

- Statements Financial

99 Annual Report 2018-19 100 VIVIMED LABS LIMITED flows fortheyearended on thatdate. comprehensive income, changes in equity and its cash the Company as at March 31, 2019, the profit and total generally accepted in India,ofthestateaffairs as amended,(“IndAS”)andotheraccountingprinciples Companies (Indian Accounting Standards) Rules, 2015, prescribed undersection133oftheActreadwith in conformity with the Indian Accounting Standards the mannersorequiredandgiveatruefairview required bytheCompaniesAct,2013(“theAct”)in standalone financial statements give the information according totheexplanationsgivenus,aforesaid In ouropinionandtothebestofinformation statements”). (hereinafter referredtoas“thestandalonefinancial accounting policiesandotherexplanatoryinformation ended onthatdate,andasummaryofthesignificant the StandaloneStatementofCashFlowsforyear the Standalone Statement ofChangesin Equity and and Loss(includingOtherComprehensiveIncome), March 31,2019,theStandaloneStatementofProfit which Comprises the Standalone Balance Sheet as at statements of VIVIMED LABS LIMITED (“the Company”), We have audited the accompanying standalone financial Opinion Report ontheAuditofStandaloneFinancialStatements TO THEMEMBERSOFVIVIMEDLABSLIMITED Independent Auditor’sReport and balancesheet position significantly impacttheCompany’s reportedprofit Accordingly, unexpectedadverse outcomescould unfavorable outcomeontheclaims. in determining the likelihood and magnitude of an accounting estimatesmadeby management reflect These provisionsarebasedon judgementsand subject tosignificantManagementjudgment. amounts ofprovisionsorcontingentliabilitiesare of litigation may be significant and estimates of the corporate guarantee to its subsidiaries. The amount in thatarearelatedtoIncomeTax,BGs,LCsand litigations. Major risks identified by the Company The Companyissubjecttonumberofsignificant statements. statements and note 32 to the standalone financial Refer note2.5ofthebasispreparationfinancial Contingent LiabilitiesandlitigationMatters Key AuditMatter Corroborating management’sassessmentby: provisions towardslitigationandclaims; of controlsinrespecttherecognitionandmeasurement We evaluating the design and testing the operating effectiveness Our auditproceduresincludedthefollowing: • Evaluatingadequacyofdisclosures giveninNote32to • Evaluatingsignificantadjustments tolegalprovisionsrecorded • Obtainingconfirmationsfrominternallegalcounselwhere • verifying correspondence, orders and appeals in respect of • making enquiries with the in-house legal counsel of the standalone financial statements management bias;and during theyeartodetermine if theywereindicativeof management; relevant and/orevaluatinglegal opinionsobtainedbythe open litigation; Company; the key audit matters to be communicated in our report We havedeterminedthemattersdescribed below tobe these matters. thereon, andwedonotprovideaseparateopinionon statements as a whole, and in forming our opinion in thecontextofourauditstandalonefinancial the current period. These matters were addressed our auditofthestandalonefinancialstatements professional judgment,wereofmostsignificancein Key audit matters are those matters that, in our Key Audit Matters statements. basis for our audit opinion on thestandalone financial have obtainedissufficientandappropriatetoprovidea Code of Ethics. We believe that the audit evidence we in accordance with these requirements and the ICAI’s and wehavefulfilledourotherethicalresponsibilities provisions oftheActandRulesmadethereunder, audit of the standalone financial statements under the the independencerequirementsthatarerelevanttoour of CharteredAccountantsIndia(ICAI)togetherwith accordance with the Code of Ethics issued by the Institute of our report. We are independent of the Company in the AuditofStandaloneFinancialStatementssection further describedintheAuditor’sResponsibilitiesfor (SAs). OurresponsibilitiesunderthoseStandardsare Auditing specified under section143(10)oftheAct statements in accordance with the Standards on We conductedourauditofthestandalonefinancial Basis forOpinion How thematterwasaddressedinouraudit that were operating effectively for ensuring the accuracy that were operating effectively for ensuring the accuracy and maintenanceofadequateinternal financialcontrols, are reasonableandprudent; design,implementation accounting policies;makingjudgments andestimatesthat irregularities; selectionandapplication of appropriate and forpreventingdetecting fraudsandother of theActforsafeguardingassetsCompany accounting records in accordancewith the provisions responsibility alsoincludesmaintenanceofadequate accounting principles generally accepted in India. This of theCompanyinaccordancewithIndASandother comprehensive income, changes in equity and cash flows of thefinancialposition,performance,total financial statements that give a true and fair view with respecttothepreparationofthesestandalone for the matters stated in section 134(5) of the Act The Company’sBoardofDirectorsisresponsible Financial Statements Management’s Responsibility for the Standalone have nothingtoreportinthisregard. information; wearerequired toreportthatfact.We that thereisamaterialmisstatementofthisother If, based on the work we have performed, we conclude appears tobemateriallymisstated. obtained during the course of our audit or otherwise standalone financialstatementsorourknowledge other informationismateriallyinconsistentwiththe information and, in doing so, consider whether the statements, ourresponsibilityistoread the other In connectionwithourauditofthestandalonefinancial express anyformofassuranceconclusionthereon. does notcovertheotherinformationandwedo Our opiniononthestandalonefinancialstatements report thereon. standalone financialstatementsand our auditor’s Shareholder’s Information,butdoesnotincludethe Responsibility Report,CorporateGovernanceand Report includingAnnexuretoBoard’sReport,Business the Management Discussion and Analysis, Board’s information comprisestheincluded in the preparation of the other information. The other The Company’s Board of Directors is responsible for Statements andAuditor’sReportThereon Information OtherthantheStandaloneFinancial • Our objectivesaretoobtainreasonableassuranceabout Standalone Financial Statements fortheAuditof Auditor’s Responsibilities Company’s financialreportingprocess. The BoardofDirectorsis responsible for overseeing the do so. to cease operations, or has no realistic alternative but to management either intends to liquidate the Company or using thegoingconcernbasisofaccountingunless applicable, mattersrelatedtogoingconcernand ability tocontinueasagoingconcern,disclosing, management is responsible for assessing the Company’s In preparingthestandalonefinancialstatements, error. free from materialmisstatement,whetherdue to fraud or financial statements that give a true and fair view and are to thepreparationandpresentationofstandalone and completenessoftheaccountingrecords,relevant internal control. omissions, misrepresentations, ortheoverrideof as fraudmayinvolvecollusion, forgery,intentional fraud ishigherthanforone resulting fromerror, detecting a material misstatement resulting from to provide a basisforouropinion.The risk of not audit evidencethatissufficientandappropriate procedures responsivetothoserisks,andobtain due to fraud or error, design and perform audit of thestandalonefinancialstatements,whether Identify andassesstherisksofmaterialmisstatement skepticism throughouttheaudit.Wealso: professional judgmentandmaintain As partofanauditinaccordancewithSAs,weexercise these standalonefinancialstatements. economic decisions of users taken on the basis of they could reasonably be expected to influence the considered materialif,individuallyorintheaggregate, Misstatements canarisefromfraudorerrorandare always detectamaterialmisstatementwhenitexists. that an audit conducted in accordance with SAs will is ahighlevelofassurance,butnotguarantee that includes our opinion. Reasonable assurance due to fraud or error, and to issue an auditor’s report whole are free from material misstatement, whether whether thestandalonefinancialstatementsasa

101 Annual Report 2018-19 102 VIVIMED LABS LIMITED • • • • Materiality is the magnitude of misstatements in the Materiality isthemagnitudeofmisstatementsin presentation. transactions andeventsinamannerthatachievesfair financial statementsrepresenttheunderlying including the disclosures, and whether the standalone content of the standalone financial statements, Evaluate the overall presentation, structure and going concern. may cause the Company to cease to continue as a auditor’s report.However,futureeventsorconditions the audit evidence obtained up to the date of our modify our opinion. Our conclusions are based on statements or, if such disclosures are inadequate, to to therelateddisclosuresinstandalonefinancial are requiredtodrawattentioninourauditor’sreport we concludethatamaterialuncertaintyexists, Company’s abilitytocontinueasagoingconcern.If conditions thatmycastsignificantdoubtonthe a material uncertainty exists related to events or based ontheauditevidenceobtained,whether use ofthegoingconcernbasisaccountingand, Conclude on the appropriateness of management’s and relateddisclosuresmadebymanagement. used andthereasonablenessofaccountingestimates Evaluate theappropriatenessofaccountingpolicies such controls. system inplaceandtheoperatingeffectivenessof the Companyhasadequateinternalfinancialcontrols responsible forexpressingouropiniononwhether Under section 143(3)(i) of the Act, we are also procedures thatareappropriateinthecircumstances. controls relevanttotheauditinorderdesign Obtain anunderstandingofinternalfinancial

statements. of anyidentifiedmisstatementsinthefinancial the resultsofourwork;and(ii)toevaluateeffect planning the scope of our audit work and in evaluating quantitative materialityandqualitative factors in: (i) financial statementsmaybeinfluenced.Weconsider decisions of a reasonably knowledgeable user of the in aggregate,makesitprobablethattheeconomic standalone financial statements that, individually or the publicinterestbenefitsofsuchcommunication. doing sowouldreasonablybeexpectedtooutweigh in ourreportbecausetheadverseconsequencesof determine thatamattershouldnotbecommunicated matter orwhen,inextremelyrarecircumstances,we regulation precludes public disclosure about the these matters in our auditor’s report unless law or and arethereforethekeyauditmatters.Wedescribe standalone financial statements of the current period that wereofmostsignificanceintheaudit with governance,wedeterminethosematters From thematterscommunicatedwiththosecharged safeguards. our independence, and where applicable, related matters that may reasonably be thought to bear on communicate withthemallrelationshipsandother ethical requirementsregardingindependence,andto a statementthatwehavecompliedwithrelevant We alsoprovidethosechargedwithgovernance control thatweidentifyduringouraudit. including anysignificantdeficienciesininternal and timing of the audit and significant audit findings, regarding, among other matters, the planned scope We communicatewiththosechargedgovernance 1. Report onOtherLegalandRegulatoryRequirements

g) f) e) d) c) b) a) audit wereportthat: As required by Section 143(3) of the Act, based on our and according to the explanations given to us, and according to the explanations given to us, In ouropinionandtothebestofinformation amended: requirements ofsection197(16)theAct,as in the Auditor’s Report in accordance with the With respect to the other matters to be included financial controlsoverreporting. operating effectiveness of the Company’s internal unmodified opinionontheadequacyand in “AnnexureA”.Ourreportexpressesan of such controls,refer to ourseparate Report the Companyandoperatingeffectiveness financial controlsoverreportingof With respecttotheadequacyofinternal terms ofSection164(2)theAct. 2019 frombeingappointedasadirectorin of thedirectorsisdisqualifiedasonMarch31, taken on record by the Board of Directors, none received fromthedirectorsasonMarch31,2019 On thebasisofwrittenrepresentations Rule 7oftheCompanies(Accounts)Rules,2014. specified underSection133oftheAct,readwith financial statementscomplywiththeIndAS In ouropinion,theaforesaidstandalone account. are inagreementwiththerelevantbooksof Statement of Cash Flow dealt with by this Report Income, StatementofChangesinEquityandthe and LossincludingOtherComprehensive The BalanceSheet,theStatementofProfit those books. so farasitappearsfromourexaminationof required bylawhavebeenkepttheCompany In ouropinion,properbooksofaccountas purposes ofouraudit. knowledge andbeliefwerenecessaryforthe and explanationswhichtothebestofour We havesoughtandobtainedalltheinformation 2. Date: 30-05-2019 Place: Hyderabad specified inparagraphs3and4oftheOrder. we give in “Annexure B” a statement on the matters Government in terms of Section 143(11) of the Act, Order, 2016 (“the Order”) issued by the Central As requiredbytheCompanies(Auditor’sReport) h) provisions ofsection197theAct. directors during the year is in accordance with the the remunerationpaidbyCompanytoits iii. ii. i. explanations giventous: best of our information and according to the 2014, as amended in our opinion and to the 11 oftheCompanies(AuditandAuditors)Rules, in theAuditor’sReportaccordancewithRule With respect to the other matters to be included the Company. Investor EducationandProtectionFundby amounts, requiredtobetransferred,the There has been no delay in transferring contracts includingderivativecontracts. foreseeable losses,ifany,onlong-term or accounting standards, for material as requiredundertheapplicablelaw The Companyhasmadeprovision, the financialstatements. financial position are disclosed in notes to which wouldhaveimpactonitsstandalone The Companyhavependinglitigations Chartered Accountants For PCN&Associates., Chandra BabuM FRN :016016S M.No:227849 Sd/- Partner

103 Annual Report 2018-19 104 VIVIMED LABS LIMITED with ethical requirements and plan and perform the audit with ethical requirements and plan and perform the audit Standards and the Guidance Note require that we comply applicable toanauditofinternal financialcontrols.Those Section 143(10)oftheCompanies Act,2013totheextent of India and the Standards on Auditing prescribed under Note”) issuedbytheInstituteofCharteredAccountants Financial ControlsOverReporting(the“Guidance accordance withtheGuidanceNoteonAuditofInternal Company basedonouraudit.Weconductedauditin internal financialcontrolsoverreportingofthe Our responsibility is to express an opinion on the Auditor’s Responsibility under theCompaniesAct,2013. preparation ofreliablefinancialinformation,asrequired completeness of the accounting records, and the timely and detectionoffraudserrors,theaccuracy policies, the safeguarding of its assets, the prevention business, includingadherencetorespectivecompany’s for ensuringtheorderlyandefficientconductofits internal financial controls that were operating effectively design, implementationandmaintenanceofadequate Accountants ofIndia.Theseresponsibilitiesincludethe Financial ReportingissuedbytheInstituteofChartered Guidance NoteonAuditofInternalFinancialControlsover essential componentsofinternalcontrolstatedinthe criteria establishedbytheCompanyconsidering based on the internal control over financial reporting establishing and maintaining internal financial controls The Board of Directors of the Company is responsible for Controls Management’s ResponsibilityforInternalFinancial Company fortheyearendedonthatdate. our auditofthestandalonefinancialstatements Company”) as of March 31, 2019 in conjunction with financial reporting of VIVIMED LABS LIMITED (“the We have audited the internal financial controls over of Section143theCompaniesAct,2013(“theAct”) Financial ReportingunderClause(i)OfSub-section3 Report ontheInternalFinancialControlsover report totheMembersofVIVIMEDLABSLIMITEDevendate (Referred toinparagraph1(f)under‘ReportonOtherLegalandRegulatoryRequirements’sectionofour Annexure “A”ToTheIndependentAuditor’sReport company; and (3) provide reasonable assurance regarding company; and (3) provide reasonable assurance regarding authorizations ofmanagement anddirectorsofthe of thecompanyarebeingmade onlyinaccordancewith accounting principles, and that receipts and expenditures statements inaccordancewith generallyaccepted recorded as necessary to permit preparation of financial (2) providereasonableassurancethattransactionsare transactions anddispositionsoftheassetscompany; that, in reasonable detail, accurately and fairly reflect the procedures that(1)pertaintothemaintenanceofrecords control overfinancialreportingincludesthosepoliciesand accounting principles.Acompany’sinternalfinancial purposes in accordance with generally accepted and thepreparationoffinancialstatementsforexternal assurance regarding the reliability of financial reporting reporting is a process designed to provide reasonable A company’sinternalfinancialcontrolover Reporting Meaning ofInternalFinancialControlsover financial reportingoftheCompany. opinion ontheinternalfinancialcontrolssystemover sufficient and appropriate to provide a basis for our audit We believethattheauditevidencewehaveobtainedis whether duetofraudorerror. risks of material misstatement of the financial statements, the auditor’s judgment, including the assessment of the the assessed risk.Theproceduresselected depend on and operatingeffectivenessofinternalcontrolbasedon weakness exists,andtestingevaluatingthedesign financial reporting,assessingtheriskthatamaterial an understandingofinternalfinancialcontrolsover controls overfinancialreportingincludedobtaining operating effectiveness.Ourauditofinternalfinancial controls systemoverfinancialreportingandtheir evidence abouttheadequacyofinternalfinancial Our auditinvolvesperformingprocedurestoobtain effectively inallmaterialrespects. established andmaintainedifsuchcontrolsoperated internal financialcontrolsoverreportingwas to obtain reasonable assurance about whether adequate material respects, an adequate internal financial controls material respects,anadequateinternalfinancialcontrols to theexplanationsgivenus,Companyhas,inall In our opinion, to the best of our information and according Opinion deteriorate. degree ofcompliancewiththepoliciesorproceduresmay inadequate becauseofchangesinconditions,orthatthe financial control over financial reporting may become to futureperiodsaresubjecttheriskthatinternal of theinternalfinancialcontrolsoverreporting and notbedetected.Also,projectionsofanyevaluation material misstatementsduetoerrororfraudmayoccur of collusionorimpropermanagementoverridecontrols, controls overfinancial reporting, includingthepossibility Because oftheinherentlimitationsinternalfinancial Reporting Limitations ofInternalFinancialControlsover a materialeffectonthefinancialstatements. use, ordispositionofthecompany’sassetsthatcouldhave prevention or timely detection of unauthorized acquisition, Date: 30-05-2019 Place: Hyderabad of CharteredAccountantsIndia. Controls Over Financial Reporting issued by the Institute stated intheGuidanceNoteonAuditofInternalFinancial considering theessentialcomponentsofinternalcontrol financial reportingcriteriaestablishedbytheCompany as atMarch31,2019,basedontheinternalcontrolover controls overfinancialreportingwereoperatingeffectively system overfinancialreportingandsuchinternal Chartered Accountants For PCN&Associates., Chandra BabuM FRN: 016016S M.No:227849 Sd/- Partner

105 Annual Report 2018-19 106 VIVIMED LABS LIMITED i. report totheMembersofVIVIMEDLABSLIMITEDevendate (Referred toinparagraph2under‘ReportonOtherLegalandRegulatoryRequirements’sectionofour Annexure ‘B’ToTheIndependentAuditor’sReport iii. ii. iv. and 186ofthe Actinrespectofgrantloans, complied withtheprovisions ofSections185 and explanationsgiventous, the Company has In our opinion and according to the information (c) (b) (a) In respectoftheCompany’sfixedassets: (c) (b) (a) respect ofwhich: under section 189 of theCompaniesAct,2013,in to corporate, covered in the register maintained to us,theCompanyhasgrantedunsecuredloans According theinformationandexplanationsgiven discrepancies werenoticedonsuchverification. management duringtheyear and nomaterial conducted atreasonableintervalsbythe The physicalverification of inventoryhasbeen name ofthecompany. of immovable properties, they are held in the based ontheexaminationoftitledeeds given to us, the records examined by us and According to the information and explanations noticed onsuchverification. given to us, no material discrepancies were According to the information and explanations verified by the management during the year. program, certainfixedassetswerephysically and thenatureofitsassets.Pursuantto having regardtothesizeofCompany manner which, in our opinion, is reasonable cover all the items of fixed assetsin a phased The Companyhasaprogramofverificationto details andsituationoffixedassets. showing fullparticulars,includingquantitative The Companyhasmaintainedproperrecords outstanding asattheyear-end. There isnooverdueamount remaining stipulations. and interesthavebeenregularasper repayments orreceiptsofprincipalamounts payment ofinteresthasbeenstipulatedand The scheduleofrepaymentprincipaland prejudicial totheCompany’sinterest. loans are, in our opinion, prima facie, not The terms and conditions of the grant of such vii. vi. v. (c) S.no 2 1 3 4 to usandbased ontherecordsofcompany According totheinformationand explanationgiven securities. making investmentsandprovidingguarantees (b) (a) given tous,inrespectofstatutorydues: According totheinformationandexplanations determine whethertheyareaccurateorcomplete. detailed examination of the records with a view to and maintained.Wehavenot,however,madea prescribed accounts and records have been made 2013, andareoftheopinionthat,primafacie, section (1)of148theCompaniesAct of costrecordshasbeenspecifiedunderthesub- the central government of India, the maintenance of products where, pursuant to the rules made by and records maintained by the company in respect We havebroadlyverifiedthebooksofaccounts Company. the clause(v)ofOrderarenotapplicableto at March31,2019andtherefore,theprovisionsof year anddoesnothaveanyunclaimeddepositsas The Companyhasnot accepted deposits during the Dividend DistributionTax dividend Nature TDS Provident Fund below: date theybecamepayablewhicharegiven for aperiodofmorethansixmonthsfromthe statutory duesinarrearsasatMarch31,2019 Tax, Customs Duty, Cess and other material Insurance, IncomeTax,GoodsandService respect ofProvidentFund,Employees’State There wereundisputedamountspayablein appropriate authorities. material statutory dues applicable to it with the and ServiceTax,CustomsDuty,Cessother Dividend, DividenddistributionTax,Goods Fund, Employees’StateInsurance,IncomeTax, undisputed statutorydues,includingProvident The Companyisnotregularindepositing Amount inD 3,30,09,566 66,76,202 94,51,353 10,03,082 xiii. xii. xi. x. ix. viii. S.No. have notbeendepositedasatMarch31,2019on Goods andServiceTaxCustomsDutywhich examined byus,therearenoduesofIncomeTax, Companies Act, 2013whereapplicable,for all in compliancewithSection177 and188ofthe and explanationsgivento us, theCompanyis In our opinion and according to the information 3 5 4 2 1 6 applicable totheCompany. reporting underclause3(xii) of theOrderisnot The CompanyisnotaNidhiandhence V totheAct. by the provisions of section 197 read with Schedule accordance with the requisite approvals mandated has paid/provided managerial remuneration in and explanationsgiventous,theCompany In ouropinionandaccordingtotheinformation noticed orreportedduringtheyear. Company byitsofficersoremployeeshasbeen fraud bytheCompanyornomaterialon the informationandexplanationsgiventous,no To thebestofourknowledgeand according to applicable totheCompany. reporting underclause3(ix)oftheOrderisnot debt instruments) or term loans and hence initial publicofferorfurther(including The Companyhasnotraisedmoneysbywayof not issuedanydebentures. during thecurrentfinancialyear.TheCompanyhas loan account with EXIM bank has become NPA & penal interest an amount ofC2,29,27,104/- And Bank an amount of defaulted intherepaymentofprincipalloantoEXIM and explanationsgiventous,theCompanyhas In ouropinionandaccordingtotheinformation Income Tax,1961 Income Tax,1961 Income Tax,1961 Income Tax,1961 Income Tax,1961 Nature Income Tax,1961 C23,25,74,740/- and interest AY 2012-2013 AY 2011-2012 AY 2007-2008 AY 2006-2007 AY 2006-2007 AY 2014-2015 Period Amount 1,88,92,271 4,02,68,920 73,96,750 7,61,020 7,06,057 Date: 30-05-2019 Place :Hyderabad xvi. xv. xiv. Tax whicharegivenbelow: account ofanydisputeexceptIncomeTax,Service Nil the applicableaccountingstandards. the standalonefinancialstatementsasrequiredby of relatedpartytransactionshavebeendisclosedin transactions withtherelatedpartiesanddetails Act, 1934. under section 45-IA of the Reserve Bank of India The Company is not required to be registered applicable totheCompany. of section192theCompaniesAct,2013arenot connected toitsdirectorsandhenceprovisions cash transactionswithitsDirectorsorpersons the Companyhasnotenteredintoanynon- and explanationsgiventous,duringtheyear, In ouropinionandaccordingtotheinformation Order isnotapplicabletotheCompany. and hencereportingunderclause3(xiv)ofthe shares or fully or partly paid convertible debentures preferential allotment or private placement of During the year, the Company has not made any Forum wherethematterispending CIT(A) CIT(A) ITAT ITAT DRP DRP Chartered Accountants For PCN&Associates., Chandra BabuM M.No:227849 FRN:016016S Sd/- Partner

107 Annual Report 2018-19 108 VIVIMED LABS LIMITED Chandra BabuM Sd/- ICAI FirmRegistrationNumber:016016S Chartered Accountants for PCN&Associates As perourreportofevendateattached The accompanyingnotesareanintegralpartofthestandalonefinancialstatements. Date: 30May2019 Place: Hyderabad Membership No.:227849 Partner as at31stMarch2019 Standalone BalanceSheet Particulars Property, plantand equipment Non-current assets Assets Other intangibleassets Goodwill Capital work-in-progress Investments Financial assets Inventories Current assets Trade receivables Financial assets Other currentassets Current taxassets Loans Bank balancesotherthancashand cash equivalents Cash andcashequivalents Other equity Equity sharecapital Equity Equity andLiabilities Total assets Borrowings Financial Liabilities Non-current liabilities Total equity Summary ofsignificantaccountingpolicies Total equityandliabilities Total liabilities Current taxliabilities Other financialliabilities Provisions Other currentliabilities Other financialliabilities Trade payables Borrowings Financial Liabilities Current liabilities Provisions Other noncurrentliabilities Deferred tax liabilities,net (All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated)

Santosh Varalwar Sd/- CIN: L02411KA1988PLC009465 Vivimed Labs Limited for andon behalfoftheBoardDirectors DIN: 02029812 Whole -Time Director cumCFO S Raghunandan Sd/- DIN: 00054763 Managing Director

19 (B) 18 (B) 16 (B) 15 (B) 15 (A) 16 (A) 19 (A) 18 (A) Note 9 (B) 9 (A) 12 11 10 14 13 21 20 17 4 5 6 7 8 3 31 March2019 11,545.58 11,545.58 5,324.14 5,726.21 5,819.37 3,385.23 2,434.14 3,356.37 2,824.47 1,018.86 6,221.44 1,245.21 5,561.16 1,244.95 2,141.26 Manohar RaoVaralwar Sd/- Sd/- M. No.ACS19315 Company Secretary Yugandhar Kopparthi DIN: 00059815 Whole -TimeDirector 169.14 641.80 281.52 875.31 199.09 684.23 241.58 165.05 351.01 897.10 532.34 352.85 Asat 95.38 97.99 98.72 8.00 7.77 - 31 March2018 12,554.13 12,554.13

5,994.72 5,674.09 6,880.04 3,997.19 2,882.85

3,566.44 1,518.66 2,925.40 1,676.71 6,559.41 1,257.93 5,509.04 1,159.57 1,352.85 2,587.04 169.14 427.76 312.72 582.11 165.05 403.05 759.96 233.86 165.39 133.35 Asat 25.48 91.78 71.69 5.52 7.76

Chandra BabuM Sd/- ICAI FirmRegistrationNumber:016016S Chartered Accountants for PCN&Associates As perourreportofevendateattached The accompanyingnotesareanintegralpartofthestandalonefinancialstatements. Date: 30May2019 Place: Hyderabad Membership No.:227849 Partner Deferred tax Profit beforetax Total expense Other expenses Finance costs Depreciation andamortisationexpense Other operatingexpenses Employee benefitexpenses Changes ininventoriesandwork-in-progress Cost ofmaterialsconsumed Expenses Total income Profit fortheyear Total taxexpense Total comprehensiveincomefortheyear Earnings perequityshare(nominalvalueofINR2)in Other comprehensiveincomefortheyear,netoftax Income-tax effect Current tax Tax expenses Other income Revenue fromoperations Income Particulars For theyearended 31st March2019 Standalone StatementofProfitandLoss Re-measurement gains/(losses)ondefinedbenefitplan Items thatwillnotbe reclassified toprofitorloss: Other comprehensiveincome Basic Diluted Summary ofsignificantaccountingpolicies (All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated) Santosh Varalwar Sd/- CIN: L02411KA1988PLC009465 Vivimed Labs Limited for andon behalfoftheBoardDirectors DIN: 02029812 Whole -Time DirectorcumCFO S Raghunandan Sd/- DIN: 00054763 Managing Director Note 31 30 29 28 27 26 25 24 31 31 23 22 39 3

For theyearended 31 March2019 2,552.12 2,603.43 1,277.04 2,518.08 (474.04) (10.55) (20.93) 361.55 524.03 182.59 302.20 378.75 (1.03) 51.31 61.86 63.97 10.38 85.35 2.11 3.14 0.75 0.72

Manohar RaoVaralwar Sd/- Sd/- M. No.ACS19315 Company Secretary Yugandhar Kopparthi DIN: 00059815 Whole -TimeDirector

For theyearended 31 March2018 2,544.64 2,633.16 1,149.74 2,613.86 (285.73) (10.15) (27.18) 330.90 518.02 181.43 309.41 340.87

(6.53) (9.81) 88.52 98.67 92.13 17.02 19.30

3.28 1.20 1.18

109 Annual Report 2018-19 110 VIVIMED LABS LIMITED Chandra BabuM Sd/- ICAI FirmRegistrationNumber:016016S Chartered Accountants for PCN&Associates As perourreportofevendateattached The accompanyingnotesareanintegralpartofthestandalonefinancialstatements. Date: 30May2019 Place: Hyderabad Membership No.:227849 Partner Equity sharesissuedduring theyear Ind AS Adjustments on dividend) Dividend paid during theyear(includingtax Profit fortheyear Balance asof31March2018 Balance asof31March2019 (losses) ondefined,netoftax Other comprehensiveincomegains/ Equity sharesissuedduring theyear on dividend) Dividend paid during theyear(includingtax Profit fortheyear At April01,2017 (losses) ondefined,netoftax Other comprehensiveincomegains/ Other comprehensiveincome Changes inequitysharecapitalduringtheyear Balance asatMarch31,2017 Particulars A. EquityShareCapital for theyerarended31March2019 Standalone StatementofChangesinEquity Balance asatMarch31,2019 Changes inequitysharecapitalduringtheyear Balance asatMarch31,2018 Particulars Securities premium 1,766.60 1,766.60 (All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated) 1,766.60 - - - - reserve Capital Santosh Varalwar Sd/- CIN: L02411KA1988PLC009465 Vivimed Labs Limited for andon behalfoftheBoardDirectors DIN: 02029812 Whole -Time DirectorcumCFO S Raghunandan Sd/- DIN: 00054763 Managing Director 8.57 8.57 8.57 Reserves andSurplus -

General reserve 167.80 167.80 167.80 - - - Revaluation reserve No. ofshares 380.00 380.00 380.00 8,10,18,915 8,25,23,915 8,25,23,915 15,05,000 - - - Manohar RaoVaralwar Sd/- Sd/- M. No.ACS19315 Company Secretary Yugandhar Kopparthi DIN: 00059815 Whole -TimeDirector Retained earnings 3,186.07 3,238.19 3,123.59

(11.85) (39.47) - 61.87 98.67 3.28 2.11 - -

5,509.04 5,446.56

5,561.16 Amount Total (11.85) (39.47) 162.04 165.05 165.05 61.87 98.67 3.28 2.11 3.01

- - - -

Chandra BabuM Sd/- ICAI FirmRegistrationNumber:016016S Chartered Accountants for PCN&Associates As perourreportofevendateattached The accompanyingnotesareanintegralpartofthestandalonefinancialstatements. Date: 30May2019 Place: Hyderabad Membership No.:227849 Partner Operating profitbeforeworkingcapitalchanges Cash andcashequivalentsattheendofyear(refernotebelow) Adjustments toreconcileprofitbeforetaxnetcashflows: Profit beforetax I. Cashflowsfromoperatingactivities Particulars for theyerarended31March2019 Standalone StatementofCashFlows Cash onhand Cash andcashequivalentscomprise: Note: Changes inworkingcapital: Adjustment for(increase)/decreaseinoperatingliabilities Cash andcashequivalentsatthebeginningofyear Net increaseincashandequivalents(I+II+III) Net cashprovidedbyfinancingactivities Summary ofsignificantaccountingpolicies 3 - incurrentaccounts Balances withbanks: Cash generatedfromoperations II. Cashflowsfrominvestingactivities Net cashgeneratedfrom/(usedin)operatingactivities III. Cashflowsfromfinancingactivities Net cashusedininvestingactivities Finance income(includingfairvaluechangeinfinancialinstruments) Finance costs(includingfairvaluechangeinfinancialinstruments) Amortisation ofintangibleassets Depreciation oftangibleassets Inventories Trade receivables Adjustment for(increase)/decreaseinoperatingassets Provisions Other financialliabilities Loans -current Other liabilities Trade payables Other assets-current Interest paid Proceeds from/(repaymentof)short-termborrowings,net Proceeds from/(repaymentof)long-termborrowings,net Income taxespaid and intangibles(includingcapitalworkinprogress),net Proceeds fromsale/(Purchaseof)property,plantandequipment Dividend paid Share issueproceeds Interest received(financeincome) Investments madeduringtheyear (All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated) Santosh Varalwar Sd/- CIN: L02411KA1988PLC009465 Vivimed Labs Limited for andon behalfoftheBoardDirectors DIN: 02029812 Whole -Time Director cumCFO S Raghunandan Sd/- DIN: 00054763 Managing Director

For theyearended 31 March2019

(1,232.28) 1,083.03 (336.00) (102.12) (524.03) (445.78) (262.47) (262.61) (160.14) (78.45) (67.00) 241.59 679.48 241.59 149.80 820.42 561.66 524.03 151.39 100.93 657.85 119.00 239.22 643.35 51.31 31.20 18.17 12.72 91.79 78.45 2.37 Manohar RaoVaralwar Sd/- Sd/- M. No.ACS19315 Company Secretary Yugandhar Kopparthi DIN:00059815 Whole -TimeDirector - -

For theyearended 31 March2018 (1,748.04)

2,065.50

2,230.88 (381.22) (124.13) (219.32) (296.08) (518.02) (470.05) (723.51) (165.39) (642.65) (63.77) (68.79) (39.47) 784.74 518.02 148.35 571.83 619.15 917.81 155.55 258.20 (3.23) 91.78 91.78 88.52 33.08 90.08 45.67 1.70 3.23 3.01

111 Annual Report 2018-19 112 VIVIMED LABS LIMITED 2.3 2.2 2.1 2 1 for theyearended31March2019 Notes toStandalonefinancialstatements statement offinancialposition: basis, except for the following material items in the on thehistoricalcostconvention and on anaccrual “These financialstatementshave beenprepared Basis ofmeasurement share data,unlessotherwisestated. All amounts are in Indian Rupee millions except in whichtheentityoperates. the currencyofprimaryeconomicenvironment of theCompany.Functionalcurrencyanentityis rupees millions,whichisthefunctionalcurrency The financial statements are presented in Indian Functional andpresentationcurrency Directors onMay30,2019. authorised forissuebytheCompany’sBoardof date, 31 March 2019. The financial statements were are effective at the Company’s annual reporting relevant IndianAccountingStandards(IndAS)that for theCompanyasgoingconcernonbasisof These financialstatementshavebeenprepared provisions oftheAct. of CompaniesAct2013(the‘Act’)and other relevant Standards) Rules2015notifiedunderSection133 (Ind AS) as per the Companies (Indian Accounting accordance withIndianAccountingStandards The financial statements have been prepared in Statement ofCompliance Basis ofpreparationfinancialstatements (NSE) and the BombayStockExchange(BSE). Company is listed in the National Stock Exchange Retail Branded Formulation manufacturing.The Dosage Formulation,SpecialtyChemicalsand Pharmaceuticals Ingredients,CDMOFinished is primarily engaged in the Business of Active its registeredofficeatBidar,India.TheCompany Limited Company incorporated in India, having Vivimed Labs Limited (‘the Company’) is a Public General Information Liabilities: Assets: 2.4 • • • the reportingdate; or c) itisduetobe settledwithintwelvemonths after traded; b) it is held primarily for the purpose of being normal operatingcycle; a) itisexpectedtobesettled intheCompany’s any ofthefollowingcriteria: A liability is classified as current when it satisfies for atleasttwelvemonthsafterthereportingdate from beingexchanged or used to settlea liability d) it is cash or cash equivalent unless it is restricted after thereportingdate;or c) itisexpectedtoberealizedwithintwelvemonths traded; b) it is held primarily for the purpose of being operating cycle; for saleorconsumptionin,theCompany’snormal a) itisexpectedtoberealizedin,orintended of thefollowingcriteria: An assetisclassifiedascurrentwhenitsatisfiesany the ScheduleIIItoCompaniesAct,2013. normal operatingcycleandothercriteriasetoutin as currentornon-currentpertheCompany’s All theassetsandliabilitieshavebeenclassified Operating cycle

measured atfairvalue; certain financialassetsandliabilitiesare benefit obligation; gains and the present valueofthedefined plan assets,plusactuariallosses,less recognized asthenettotaloffairvalue employee defined benefit assets/(liability) are method. amortized costusingtheeffectiveinterestrate long term borrowings are measured at

2.5 forming partofthestandalonefinancialstatements Notes provided for but disclosed as Contingent Contingencies thatareconsidered possiblearenot recorded asanaccrualinfinancial statements.Loss are considered probable, an estimated loss is other contingencies.Forcontingent losses that pending cases, claims by third parties and On an ongoing basis, Company reviews and futureperiods. future periods if the revision affects both current only thatperiod,orintheperiodofrevisionand in whichtheestimateisrevisedifrevisionaffects accounting estimatesarerecognisedintheperiod reviewed on an on going basis. Revisionsto The estimatesand underlying assumptionsare current. All otherassets/liabilitiesareclassified as non- of non-currentassets/liabilitiesrespectively. Current assets/liabilitiesincludethecurrentportion Provision andcontingentliability financial statements: significant effect on the amounts recognised in the accounting policiesandthathavethemost made in the process of applying the Company’s and criticaljudgementsthatthemanagementhas The followingaretheareasofestimationuncertainty Actual results may differ from these estimates. factors that are considered to be relevant. are based on historical experience and other The estimates and associated assumptions that arenotreadilyapparentfromothersources. about the carrying amounts of assets and liabilities make judgements,estimatesand assumptions management oftheCompanyarerequired to policies, whicharedescribedinnote3,the In theapplication oftheCompany’saccounting of estimationuncertainty Critical accountingjudgements and key sources of equity instruments do not affect its classification. counterparty, resultinitssettlementbytheissue Terms ofaliabilitythatcould,attheoption least twelvemonthsafterthereportingdate. right todefersettlementoftheliabilityforat d) the Company does not have an unconditional

liabilities

2.6 period duringwhich thechangehasoccurred. input thatissignificanttotheentire measurement. level ofthefairvaluehierarchy asthelowestlevel measurement is categorised in its entirety in the same levels of the fair value hierarchy, then the fair value fair valueofanassetoraliabilityfallintodifferent as farpossible.Iftheinputsusedtomeasure liability, theCompany uses observable market data When measuringthefairvalueofanassetora and amountsarereceivedorreceivable recognized until thecontingencyhasbeenresolved the financial statements. Gain contingencies are not likelihood ofwhichisremotearenotdisclosedin in thefinancialstatements.Contingencies of the fair value hierarchy at the end of the The Company recognises transfers between levels inputs). based on observablemarketdata (unobservable – Level 3: inputs for the asset or liability that are not (i.e. derivedfromprices). liability, either directly (i.e. as prices) or indirectly in Level1thatareobservablefortheassetor – Level2:inputsotherthanquotedpricesincluded markets foridenticalassetsorliabilities. – Level 1: quoted prices (unadjusted) in active valuation techniques asfollows: fair valuehierarchybasedontheinputs usedinthe Fair valuesarecategorisedintodifferentlevelsina and liabilities. values, forboth financial and non-financial assets and disclosures require the measurement of fair A numberoftheCompany’saccountingpolicies Measurement offairvalues year. change in the useful lives as compared to previous to the Company. Further, there is no significant lives representtheexpected utility oftheassets 31, 2019managementassessedthattheuseful depreciable assets at each reporting. As at March Management reviews the useful lives of Useful livesofdepreciableassets reporting

113 Annual Report 2018-19 114 VIVIMED LABS LIMITED 3.1 3 forming partofthestandalonefinancialstatements Notes • • • • • • services. expects toreceiveinexchangeofthoseproducts or that reflect the consideration which the Company products orservicestocustomerinanamount Revenue is recognised upon transfer of promised Company isinsignificant. the standardonfinancialstatementsof Ind AS 18Revenue.Theimpactoftheadoption revenue is to be recognised. Ind AS 115 replaces for determining whether, how much and when which establishesacomprehensiveframework AS 115: Revenue from Contracts with Customers Effective April 1, 2018, the Company has applied Ind Revenue recognition Significant accountingpolicies

the effectiveinterest rateapplicable, which reference to the principal outstanding and Interest incomeisaccruedon, timebasis,by trade dateoftransaction. loss onsale/redemption investment on value ofinvestmentisrecognised asprofitor Difference betweenthesalepriceandcarrying the dividend. which isgenerallywhenshareholdersapprove right to receive the incomeis established, Dividend incomeisaccountedforwhenthe collection oftherelevantexportproceeds significant uncertaintyregardingtheultimate of the exports made and where there is no terms oftheschemeisestablishedinrespect when the right to receive credit as per the Export incentivesarerecognised as income duty. Revenue from the sale of goods includes excise the goodssoldaretransferred. significant risksand rewards ofownership of rebates andVAT/GSTarerecognisedwhenall into accounttheamountofdiscounts,volume consideration received or receivabletaking Revenue ismeasured at thefairvalueof

at 3.2

Minimum lease paymentsmadeunderfinance leases areapportioned betweenthefinancecharge All otherleasesareclassifiedasoperatingleases. the risksand rewards ofownershiptothelessee. the termsofleasetransfersubstantiallyall Leases areclassifiedasfinanceleaseswhenever Leases incremental borrowingrate. on the liability is recognised using the Company’s payments are made and an imputed finance cost asset; subsequently,theliability isreduced as amount equaltothefairvalueofunderlying then anasset and a liability are recognised at an is impracticabletoseparatethepaymentsreliably, If theCompanyconcludesforafinanceleasethatit elements onthebasisoftheirrelativefairvalues. into thosefortheleaseandother other considerationrequiredbythearrangement a lease,theCompanyseparatespaymentsand on reassessmentofanarrangementthatcontains arrangement is or containsalease.At inception or the Company determines whether the above Further, attheinceptionofabovearrangement, the lessor’s expected inflationary cost increases. the expectedgeneralinflationtocompensatefor payments arestructuredtoincreaseinlinewith line basisoverthetermofleaseunlesssuch statement ofprofitandlossonastraight- generally recognisedasanexpenseinthe Lease paymentsunderoperatingleaseare ownership are not recognized in the balance sheet. transfer substantiallyalltherisksandrewardof is lower. Assets held under leases that do not payments attheinceptionoflease,whichever asset or present value of the minimum lease Such assetsarecapitalized at fairvalueofthe ownership are classified as financeleases. substantially alltherisksandrewardsof Leases under which the Company assumes amount oninitialrecognition. of thefinancialassettothatasset’snetcarrying future cashreceiptsthroughtheexpectedlife is the rate that exactly discounts estimated

forming partofthestandalonefinancialstatements Notes 3.4 3.3 3.5 Taxation of interestontheremainingbalanceliability. lease term so as to produce a constant periodic rate finance charge isallocated to eachperiod during the and thereductionofoutstandingliability.The Borrowing costs in theperiodwhichtheyarise. on monetaryitemsarerecognised in profitorloss currency are not retranslated. Exchange differences are measuredintermsofhistoricalcostaforeign prevailing atthatdate.Non-monetaryitems in foreigncurrenciesareretranslated at therates reporting period, monetary items denominated at the dates of the transactions. At the end of each are recognised at theratesof exchange prevailing company’s functionalcurrency(foreigncurrencies) Company, transactionsincurrenciesotherthanthe In preparingthefinancialstatementsof Foreign currencies which caseitis recognized inequity. it relatestoitemsrecognized directly inequity, in theincomestatementexcept totheextentthat deferred tax.Incometaxexpense isrecognized Income taxexpenseconsists ofcurrentand adjustment totheInterestcost. borrowings to the extent they are regarded as an exchange differencearisingfromforeigncurrency in connectionwith borrowing offunds and amortization of discounts, ancillary costs incurred Borrowing costincludesinterestexpense, they areincurred. are recognisedasanexpenseintheperiodwhich ready foritsintended use. Allotherborrowingcosts necessarily takesasubstantialperiod of timetoget being incurred.Aqualifying assetisanthat for its intended use and borrowing costs are cost ofsuchassettilltimetheisready a qualifying asset are capitalized as part of the the acquisition, constructionorproductionof Specific borrowingcoststhatareattributable to

3.6

per share (“EPS”) data for its ordinary shares. The The Companypresentsbasicand diluted earnings Earnings pershare benefit willberealized. that it is no longer probable that the related tax each reporting date and are reduced to the extent can beutilized. Deferred tax assetsarereviewed at available against which the temporary difference that itisprobablefuturetaxableprofitswillbe A deferred tax asset is recognized to the extent assets and liabilities willberealized simultaneously. liabilities andassetsonanetbasisortheirtax tax entities, but they intend to settle current tax authority onthesametaxableentity,ordifferent they relatetoincometaxesleviedbythesametax right tooffsetcurrenttaxliabilitiesand assets, and liabilities areoffsetifthereisalegallyenforceable by the reporting date. Deferredtax assets and that have been enacted or substantively enacted differences when they reverse, based on the laws that areexpectedtobeapplied to thetemporary goodwill. Deferredtaxismeasuredattherates differences arising upon the initial recognition of in the foreseeable future; and taxable temporary extent thatitisprobabletheywillnotreverse in subsidiariesandjointlycontrolledentitiestothe taxable profit;differencesrelatingtoinvestments combination and that affects neither accounting nor liabilities inatransactionthatisnotbusiness differences: theinitialrecognitionofassetsor tax is not recognized for the following temporary amounts usedfortaxationpurposes. Deferred liabilities forfinancialreportingpurposesand the between thecarryingamountsofassetsand method, providingfortemporarydifferences Deferred tax is recognized using the balance sheet Deferred tax previous years. and anyadjustmenttotaxpayableinrespectof or substantivelyenacted at thereportingdate, taxable incomefortheyear,usingtaxratesenacted Current tax is the expected tax payable on the Current tax

115 Annual Report 2018-19 116 VIVIMED LABS LIMITED 3.8 forming partofthestandalonefinancialstatements Notes 3.7 Expenditure during constructionperiod(including decrease thenetprofitpershare. only iftheirconversiontoequityshareswould Potential equitysharesare deemed to be dilutive conversion ofalldilutivepotentialequity shares. equity shares which could have been issued on the per shareandtheweightedaveragenumberof shares consideredforderivingbasicearnings shares, bytheweightedaveragenumberofequity for the year relating to the dilutive potential equity the net profit attributable to equity shareholders Diluted earnings per share is computed by dividing of equity sharesoutstandingduring theyear. for the period by the weighted average number the net profit attributable to equity shareholders basic earnings per share is computed by dividing Expenditure duringconstruction period Equipment. as specified in Ind AS 16 – Property, Plant and as PPEwhentheymeetthe definitionofPPE equipment and service equipment areclassified Material itemssuchasspareparts,stand-by separate items (major components) of PPE. useful lives,thentheyareaccountedforas If significantpartsofanitemPPEhavedifferent in theperiodwhichcostsareincurred. are chargedtotheStatementofProfitandLoss into operation,suchasrepairsandmaintenance, Expenditure incurredafterthePPEhavebeenput and accumulated impairment losses, if any. decommissioning, less accumulated depreciation borrowing costsandanyexpectedof location foritsintendeduse,includingrelevant of bringing an asset to working condition and purchase taxes, and any directly attributable costs price, including import duties and non-refundable The initialcostofPPEcomprisesitspurchase impairment. Freehold land is notdepreciated. less accumulateddepreciationand or administrativepurposes arestated at cost in the production or supply of goods or services, Freehold land and buildings(property)held for use Property, plantandequipment

Amortization 3.10 3.9 Depreciation The estimateduseful lifeofanidentifiable Assets”. as CapitalAdvancesunder“Othernon-current outstanding ateachreportingdatearedisclosed given towardsacquisitionorconstructionofPPE the completion of their construction. Advances the sameisallocatedtorespectivePPEon included under Capital Work-in-Progress, and construction oracquisitionofqualifyingPPE)is financing costrelated to borrowed funds for are availableforuse. lives on a straight-line basis, from the date that they amortized over their respective estimated useful amortization and impairment. Intangible assets are Intangible assets are stated at cost less accumulated Intangible assetsandamortisation disposal. on apro-ratabasisuptothedateofdeduction/ Depreciation on deductions/disposals is provided of commencement of commercial production. acquisition andincaseofProjectsfromthedate rata basis from the month of installation or Depreciation on additions is provided on a pro- useful livesasprescribedinSchedule IItotheAct. The Company depreciates its fixed assets over the separately assessedthelifeofmajorcomponents. The CompanyhascomponentiseditsPPEand from theassetbyCompany production orsimilarunitsexpectedtobeobtained available for use by the Company, or the number of is theperiodoverwhichPPEexpectedtobe its estimated residual value. The useful life of PPE Depreciable amount for PPE is the cost of PPE less technical assessment. lives as prescribed in Schedule II to the Act or as per is providedonastraight-linebasisovertheuseful depreciable amountofPPEoveritsusefullifeand Depreciation is the systematic allocation of the intangible forming partofthestandalonefinancialstatements Notes 3.11 Inventories 3.13 3.12 asset. to obtaintheexpected future cashflowsfromthe the levelofmaintenanceexpendituresrequired industry andknowntechnologicaladvances) other economicfactors(suchasthestabilityof effects ofobsolescence,demand,competitionand asset is based on a number of factors including the effects oftransactions ofanon-cashnatureand any whereby netprofitbeforetax isadjustedforthe Cash flowsarereportedusing the indirectmethod, • • follows: present locationand condition areaccounted for as value. Costsincurredinbringingeachproduct toits on “Weightedaverage”basisandnetrealisable Inventories arevaluedatlowerofcost,determined Cash flowstatement meeting short-termcashcommitments. changes in value and are held for the purpose of into cashwhicharesubjecttoinsignificantrisk of deposits withbanksthatarereadilyconvertible comprise cash at bank and in hand and short-term Cash and cash equivalents in the Balance Sheet Cash andcashequivalents

present locationandcondition. incurred in bringing the inventories to their materials, cost of conversion and other costs Finished goods and WIP includescostofraw Valued atlowerofcostandNRV.Cost stock-in-trade: Work-in- progress(WIP),finishedgoodsand FIFO basis. sold atorabovecost.Costisdeterminedon in which they will be used, are expected to be be realisable at cost, if the finished products, (NRV). However, these itemsareconsidered to Valued at lower of cost and net realisable value and packingmaterials: Raw materials,fuel,stores&spareparts

3.15 grants 3.14 Government the asset’srecoverableamountisestimated. impairment. Ifanysuchindicationexists,then determine whetherthereisanyindicationof assets are reviewed at each reporting date to financial assets, inventories and deferred tax The carrying amounts of the Company’s non- determine therecoverable amount.Animpairment there hasbeen achangeintheestimatesused to no longerexists.Animpairment lossisreversedif for anyindicationsthattheloss hasdecreasedor prior periodsareassessedat each reportingdate carrying amount. Impairment losses recognized in an assetoritscash-generating unit islowerthanits statement if the estimated recoverable amount of An impairment loss is recognized in the income or groups of assets (the “cash-generating unit”). independent ofthecashinflowsotherassets cash inflowsfromcontinuingusethatarelargely into the smallest group of assets that generates impairment testing,assetsaregroupedtogether the cash-generating unit. For the purpose of of money and the risks specific to the asset or current marketassessmentsofthetimevalue value using a pre-tax discount rate thatreflects future cashflowsarediscountedtotheirpresent to sell. In assessing value in use, the estimated of itsvalueinuseandfairlesscosts generating unit(as defined below) is the greater The recoverableamountofanassetorcash- integral partofanentity’scashmanagement. part of cash and cash equivalent, as they form an are segregated.Bankoverdraftsclassifiedas investing andfinancingactivitiesoftheCompany or payments.Thecashflowsfromoperating, deferrals oraccrualsofpastfuturecashreceipts Impairment ofnonfinancialassets over theexpectedusefullifeofasset. and recognisedinthestatementofprofitloss the asset and the grant are accounted at fair value Where the Company receives non-monetary grants, and allattachedconditionswillbecompliedwith. reasonable assurancethatthegrantwillbereceived Government grantsarerecognisedwherethereis

117 Annual Report 2018-19 118 VIVIMED LABS LIMITED forming partofthestandalonefinancialstatements Notes benefits 3.16 Employee using interest rates of high-quality corporate bonds discounting theestimatedfuture cashoutflows of the defined benefit obligation is determined by the adviceof qualified actuaries. Thepresent value the projectedunitcreditmethod consistentwith other post-employment benefits is calculated using The liabilityinrespectofdefined benefit plans and associate maybeimpaired. is objectiveevidencethattheinvestmentinan tested for impairmentasasingleassetwhenthere entire amount of the investment in an associate is tested forimpairmentseparately.Instead,the is not recognized separately, and thereforeisnot carrying amountofaninvestmentinassociate had beenrecognized.Goodwillthatformspartofthe depreciation oramortization,ifnoimpairmentloss amount thatwouldhavebeendetermined,netof carrying amountdoesnotexceedthe loss is reversed only to the extent that the asset’s Defined benefitplans Commissioner underadefinedcontribution plan. are depositedwiththeRegionalProvidentFund Company’s contributions towardsProvidentFund charged to the statement of profit and loss. The and employeestateinsuranceschemesis The Company’scontributiontoprovidentfund Defined contributionplans rendered by theemployee. payable fortheperiodduringwhichservicesare recognized on the basis of the amount paid or employee costs such as salaries, bonus etc. is Short-term employeebenefitscompriseof Short-term employee benefits determine therecoverableamount. favourable changeintheestimatesusedto statement, andreversediftherehasbeena An impairmentlossisrecognizedintheincome amount of investment with its carrying amount. investee ismeasured by comparingtherecoverable An impairment loss in respect of equity accounted

in whichtheyarise. equity inothercomprehensiveincometheperiod in actuarial assumptions are charged or credited to arising fromexperienceadjustmentsand changes in theincomestatement.Actuarialgainsandlosses This cost is included in employee benefit expense benefit obligationandthefairvalueofplanassets. discount ratetothenet balance ofthedefined The netinterestcostiscalculatedbyapplying the service costs are recognized immediately in income. benefit changes, curtailments and settlements. Past resulting from employee service in the current year, reflects theincreaseindefinedbenefitobligation income statementinemployeebenefitexpense, cost ofthedefinedbenefitplan,recognizedin on governmentbondsareused. The currentservice is nodeepmarketinsuchbonds,therates defined benefitobligation.Incountrieswherethere maturity approximating to the terms of the related the benefits will be paid, and that have terms to that aredenominatedinthecurrencywhich which theyarise. in thestatementofprofitand loss intheperiod in present value.Re-measurements arerecognized periods. Thatbenefitisdiscounted todetermineits return for their service in the current and previous future benefitthatemployees haveearned in long term employee benefits is the amount of The Company’snetobligationinrespectofother Other long-termemployee benefits number ofacceptancescanbeestimatedreliably. it is probable that the offer will be accepted, and the made anofferencouragingvoluntaryredundancy, are recognizedasanexpenseiftheCompanyhas Termination benefitsforvoluntaryredundancies offer madetoencouragevoluntaryredundancy. or toprovideterminationbenefitsasaresultofan employment before the normal retirement date, a formal detailed plan to either terminate without realistic possibility of withdrawal, to when theCompanyisdemonstrablycommitted, Termination benefitsarerecognizedasanexpense Termination benefits 3.19 3.18 3.17 forming partofthestandalonefinancialstatements Notes loss, areaddedtothefairvalue on initialrecognition. liabilities thatarenotatfairvalue throughprofitor acquisition orissuesoffinancial assetsandfinancial Transaction coststhataredirectly attributabletothe which are initially measured at transaction price. on initial recognition, except for trade receivables assets and liabilities are recognized at fair value contractual provisionsoftheinstrument.Allfinancial financial liabilities when it becomes a party to the The Companyrecognizesfinancialassetsand measured at fair value plus, for an item not at fair value A financial asset or financial liability is initially

a. RecognitionandInitialrecognition instruments Financial period in whichthechangeoccurs. asset andrelatedincomearerecognisedinthe that aninflowofeconomicbenefitswillarise,the are assessedcontinuallyandifitisvirtuallycertain financial statements. However, contingent assets Contingent assetsarenotrecognised in the provision ordisclosureismade. likelihood ofoutflowresourcesisremote,no or apresentobligationinrespectofwhichthe of resources.Wherethereisapossibleobligation that may,but probablywillnot,requireanoutflow there isapossibleobligationorpresent A disclosure for a contingent liability is made when &contingentassets Contingent liabilities passage oftimeisrecognizedasafinancecost. is used,theincreaseinprovisiondueto the risksspecifictoliability.Wherediscounting market assessmentsofthetimevaluemoneyand cash flows at a pre-tax rate that reflects current determined bydiscountingtheexpectedfuture the time value of money is material, provisions are be requiredtosettletheobligation.Ifeffectof probable that an outflow of economic benefits will obligation that can be estimated reliably, and it is the Companyhasapresentlegalorconstructive A provisionisrecognized if, asaresultofpastevent, benefits) Provisions (otherthanforemployee

– thestatedpoliciesandobjectives fortheportfolio through Profit andLoss(FVTPL),transaction and the operation of those policiesin practice. are directlyattributable toitsacquisitionorissue. accounting mismatchthatwouldotherwisearise. doing so eliminates or significantly reduces an to be measured at amortised cost at FVTPL if asset that otherwise meets the requirements Company mayirrevocablydesignateafinancial measured atFVTPL.Oninitialrecognition,the at amortised cost as described above are All financial assets not classified as measured amount outstanding. payments ofprincipalandinterestonthe rise onspecifieddatestocashflowsthataresolely – thecontractualtermsoffinancialassetgive cash flows;and objective istoholdassetscollectcontractual – theassetisheld within abusiness modelwhose designated asatFVTPL: meets bothofthefollowingconditionsand is not A financial asset is measured at amortised cost if it managing financialassets. the Companychangesitsbusinessmodelfor their initialrecognition,exceptifandintheperiod Financial assetsarenotreclassifiedsubsequent to – FVTPL – amortisedcost; as measured at On initial recognition, a financial asset is classified Financial assets: considered includes: is provided to management. The information the way the business is managed and information held ataportfoliolevelbecause thisbestreflects of the business model in which a financial asset is The Companymakesanassessmentoftheobjective Financial assets:Businessmodelassessment b. ClassificationandSubsequentmeasurement costs that

119 Annual Report 2018-19 120 VIVIMED LABS LIMITED

forming partofthestandalonefinancialstatements Notes

In assessingwhether thecontractualcash flows the assets; outflows orrealisingcashflowsthroughthesaleof duration ofanyrelatedliabilitiesorexpectedcash matching thedurationoffinancialassetsto maintaining aparticularinterestrateprofile, focuses onearningcontractualinterestincome, These includewhethermanagement’sstrategy margin. risk andadministrativecosts), aswellaprofit for otherbasiclendingrisksand costs(e.g.liquidity outstanding duringaparticular periodoftimeand the creditriskassociatedwith principalamount consideration for the time value of money and for on initial recognition. ‘Interest’ is defined as is definedasthefairvalueoffinancialasset For thepurposesofthisassessment,‘principal’ interest cash flows are solely payments of principal and Financial assets: Assessment whether contractual on afairvaluebasisaremeasuredatFVTPL. managed and whose performance is evaluated Financial assetsthatareheldfortradingor the Company’s continuing recognition of the assets. not consideredsalesforthispurpose,consistentwith transactions that do not qualify for derecognition are Transfers of financial assets to third parties in activity. such salesandexpectationsaboutfuture financial assets in prior periods, the reasonsfor – the frequency, volume and timing of sales of cash flowscollected;and value of the assets managed or the contractual – e.g. whether compensation is based on the fair – howmanagersofthebusinessarecompensated are managed; within thatbusiness model)andhowthoserisks business model(andthefinancialassetsheld – the risks that affect the performance of the and reported to theCompany’smanagement; – howtheperformanceofportfolioisevaluated

In makingthisassessment,theCompanyconsiders: cash flows suchthat it would not meet this condition. could changethetimingoramountofcontractual financial assetcontainsacontractualtermthat instrument. Thisincludesassessingwhetherthe Company considers the contractual terms of the are solely payments of principal and interest, the foreign exchange gains and losses and impairment is reduced by impairment losses. Interest income, the effectiveinterestmethod. The amortised cost subsequently measured at amortised cost using Financial assetsatamortisedcost: Theseassetsare or timingofcashflows; – contingenteventsthatwould change theamount are recognisedinprofitorloss. losses, includinganyinterestordividendincome, subsequently measured at fairvalue.Netgainsand Financial assetsatFVTPL:Theseare gains andlosses Financial assets: Subsequent measurement and initial recognition. value oftheprepaymentfeatureisinsignificantat treated as consistent with this criterion if the fair additional compensationforearlytermination)is interest (which may also include reasonable amount plus accrued (but unpaid) contractual that substantially represents the contractual par that permitsorrequiresprepaymentatanamount premium to its contractual par amount, a feature financial asset acquired at a significant discount or termination ofthecontract.Additionally,fora reasonable additional compensationforearly principal amountoutstanding,whichmayinclude unpaid amounts of principal and interest on the prepayment amount substantially represents payments ofprincipalandinterestcriterionifthe A prepaymentfeatureisconsistentwiththesolely from specifiedassets(e.g.non‑recoursefeatures). – termsthatlimittheCompany’sclaimtocashflows – prepaymentandextensionfeatures; rate, includingvariableinterestratefeatures; – terms that may adjust the contractual coupon

forming partofthestandalonefinancialstatements Notes c. different. Inthis case,anewfinancialliabilitybased flows underthemodifiedterms aresubstantially liability whenitstermsaremodified and the cash The Company also derecognises a financial derecognition isrecognised in profitorloss. are recognisedinprofitorloss.Anygainlosson Financial assets cancelled, orexpire. when itscontractualobligations aredischargedor The Company derecognises a financial liability Financial liabilities transferred assetsarenotderecognised. risks andrewardsofthetransferredassets, but retainseitherallorsubstantiallyofthe it transfersassetsrecognised on itsbalancesheet, If theCompanyentersintotransactionswhereby financial asset. of ownership and does not retain control of the retains substantially all of the risks and rewards or inwhichtheCompanyneithertransfersnor of ownershipthefinancialassetaretransferred in whichsubstantiallyalloftherisksand rewards receive thecontractualcashflowsinatransaction financial assetexpire,orittransferstherightsto the contractual rights to the cash flows from the The Companyderecognisesafinancialassetwhen Derecognition also recognisedinprofitorloss. in profitorloss.Anygainlossonderecognitionis foreign exchangegainsandlossesarerecognised the effectiveinterestmethod.Interestexpenseand are subsequentlymeasuredatamortisedcostusing recognised in profitorloss.Otherfinancialliabilities and losses,includinganyinterestexpense,are FVTPL aremeasuredatfairvalueandnetgains such oninitialrecognition.Financialliabilitiesat trading, oritisaderivative designated as classified asatFVTPLifitisheld‑ amortised cost or FVTPL. A financial liability is Financial liabilities are classified as measured at measurement andgainslosses Classification,Subsequent Financial liabilities:

for‑

liability withmodifiedtermsisrecognisedinprofit financial liability extinguished and the new financial The differencebetweenthecarryingamountof on the modified terms is recognised at fair value. month expected creditlosses: except forthefollowing,which are measured as 12 amount equal to lifetime expected credit losses, The Company measures loss allowances at an security becauseoffinancialdifficulties. – thedisappearanceofanactive marketfora bankruptcy orotherfinancialreorganisation; – itisprobablethattheborrowerwillenter consider otherwise; Company ontermsthatthewouldnot – therestructuringofaloanoradvanceby issuer; – significant financial difficulty of the borrower or includes thefollowingobservabledata: Evidence that afinancial asset is credit‑impaired have occurred. estimated future cash flows of the financial asset more events that have a detrimental impact on the A financialassetis‘credit‑impaired’whenoneor comprehensive income(FVOCI)arecreditimpaired. and debtsecuritiesatfairvaluethroughother whether financialassetscarriedatamortisedcost At each reporting date, the Company assesses at amortisedcost; expected credit lossesonfinancialassetsmeasured The Companyrecogniseslossallowancesfor e. Impairment simultaneously. or torealisetheassetand settle theliability and it intends either tosettle them on a net basis a legally enforceable right to set off the amounts when andonlywhen,theCompanycurrentlyhas and thenetamountpresentedinbalancesheet Financial assetsandfinancialliabilitiesareoffset d. Offsetting

121 Annual Report 2018-19 122 VIVIMED LABS LIMITED

available withoutunduecostoreffort.Thisincludes and supportable information that is relevant and credit losses,theCompanyconsidersreasonable initial recognitionand when estimatingexpected financial assethasincreased significantly since When determining whether the credit risk of a exposed tocreditrisk. contractual periodoverwhichtheCompanyis estimating expectedcreditlossesisthemaximum In all cases, the maximum period considered when life oftheinstrumentislessthan12months). reporting date (or a shorter period if the expected events that are possible within 12 months after the of expected credit losses that result from default 12-month expectedcreditlossesaretheportion events over the expected life of a financial instrument. credit lossesthatresultfromallpossibledefault Lifetime expectedcreditlossesarethe credit losses. measured at an amount equal to lifetime expected Loss allowancesfortradereceivablesarealways increased significantlysinceinitialrecognition. expected lifeofthefinancialinstrument)hasnot credit risk(i.e.theofdefaultoccurringover – otherdebtsecuritiesand bank balances forwhich credit riskatthereportingdate;and – debtsecuritiesthataredeterminedtohavelow

Write-off including forward‑lookinginformation. experience and informed credit assessmentand and analysis,basedontheCompany’shistorical both quantitativeandqualitativeinformation Measurement ofexpectedcreditlosses cash flowsthattheCompanyexpectstoreceive). Company in accordance with the contract and the difference betweenthecashflowsdueto as the present valueof all cashshortfalls(i.e.the estimate ofcreditlosses.Creditlossesaremeasured Expected credit lossesareaprobability‑weighted recovery ofamountsdue. order tocomplywiththeCompany’sproceduresfor off could still be subject to enforcement activities in write‑ off.However,financialassetsthatarewritten cash flows to repay the amounts subject to the sources of income that could generate sufficient that the trade receivable does not have assets or generally thecasewhenCompanydetermines that there is no realisticprospectof recovery. Thisis written off(eitherpartiallyor in full)to the extent The grosscarrying amount ofafinancial asset is carrying amountoftheassets. at amortised cost arededucted from thegross Loss allowancesforfinancialassetsmeasured losses inthebalancesheet. Presentation of allowancefor expected credit

Notes forming part of the Standalone financial statements

4. Property, Plant And Equipment (All amounts in Indian Rupees millions, except share data and where otherwise stated). Particulars Land Buildings Plant and Electrical Laboratory Office Computers Furniture Vehi- Books and Total Machinery equipment equipment equipment cles Periodicals Gross Carrying amount At April 1, 2017 1,238.77 913.89 1,942.27 58.18 47.50 18.37 34.54 62.29 31.98 0.04 4,347.85 Additions 103.35 356.06 4.81 0.26 28.81 0.63 0.66 0.68 4.22 - 499.48 Disposals/ 67.40 440.27 106.63 0.60 34.34 0.15 23.22 52.02 1.49 - 726.12 adjustments At March 31, 2018 1,274.72 829.68 1,840.45 57.84 41.97 18.85 11.98 10.95 34.71 0.04 4,121.21 Additions 300.07 1.69 84.42 0.13 1.79 0.04 0.16 8.17 2.74 - 399.22 Disposals/ adjust- 456.90 0.20 - - - - - 0.79 - 457.90 ments At March 31, 2019 1,117.89 831.37 1,924.67 57.97 43.77 18.89 12.15 19.12 36.66 0.04 4,062.53 Accumulated depreciation At April 1, 2017 0.08 72.45 352.66 9.81 0.94 8.68 30.88 41.07 10.03 0.03 526.63 Charge for the year - 32.79 94.97 3.48 4.50 0.41 4.76 2.51 4.92 0.01 148.35 Less: Disposals / - - 44.00 76.21 0.01 120.22 adjustments At March 31, 2018 0.08 105.24 447.63 13.29 5.44 9.09 (8.36) (32.63) 14.95 0.03 554.76 Charge for the year - 42.13 54.22 12.38 14.69 4.45 12.86 4.43 6.24 0.00 151.39 Less: Disposals / ------adjustments At March 31, 2019 0.08 147.37 501.85 25.67 20.13 13.54 4.50 (28.20) 21.19 0.03 706.16 Net Carrying amount At March 31, 2018 1,274.64 724.44 1,392.82 44.55 36.54 9.75 20.35 43.58 19.77 0.01 3,566.44 At March 31, 2019 1,117.80 684.01 1,422.82 32.31 23.64 5.35 7.65 47.32 15.47 0.01 3,356.37 Note a) Charge on Property, plant and equipment All the property, plant and equipment are subject to a first charge, second charge and pari passu to secure the Company’s working capital and Term loan bank loans.

123 Annual Report 2018-19 124 VIVIMED LABS LIMITED forming partoftheStandalonefinancialstatements Notes 6. Investments 5. I10 eachinVivimedLifeSciences PrivateLimited NIL (March31,2018:14,133,440;March 31,2017:10,000)equitysharesof each inVivimedSpecialityChemicals PrivateLimited 10,000 (March31,2018:10,000;March 31,2017:10,000)equitysharesofI10 USD 1eachinVivimed Labs MauritiusLimited, 900,000 (March31,2018:900,000;March2017:900,000)equity sharesof 0.01 eachinVivimedLabsUSAInc, 1,000 (March31,2018:1,000;March2017:1,000)equity sharesofUSD HKD 1eachinVivimed Holdings Limited,HongKong 10,000 (March31,2018:10,000;March2017:10,000)equity sharesof shares ofI10eachinFinosoPharmaPrivateLimited 1,015,000 (March31,2018:1,015,000;March2017:1,015,000) equity Investments insubsidiaries Unquoted equityshares Investments carried at cost Non-current investments Particulars Particulars Additions At April1,2017 Gross Carryingamount Additions At March31,2018 Less: Disposals/adjustments Amortisation expense At March31,2018 Less: Disposals/adjustments Amortisation expense At March31,2017 Accumulated depreciation At March31,2019 At March31,2019 At March31,2018 Carrying amount At March31,2019 Intangible assets

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). and Technicalknowhow Brands,Trademarks 31 March2019 281.52 516.15 516.15 203.43 177.22 516.15 312.72 234.63 31.20 33.08 6.87 460.41 246.98 100.00 - - - Asat 0.10 0.07 -

31 March2018 281.52 516.15 516.15 203.43 177.22 516.15 312.72 234.63 31.20 33.08 6.87 460.41 246.98 642.75 100.00 Total Asat 0.10 0.07 - - -

forming partoftheStandalonefinancialstatements Notes 9. 8. 7. Inventories 6. Total Less: Allowancefordoubtfulreceivables Total Finished Goods(includingintransit) Semi-finished &Work-in-process Packing Materials shares ofI10eachinYantraGreenPowerPrivateLimited 2,500,000 (March31,2018:2,500,000;March2017:2,500,000)equity Unquoted equityshares Investments inothers Investments carriedatfairvaluethroughprofitandloss -Oncurrentaccounts i) Balanceswithbanks: Unsecured,considered good Raw Materials Particulars Particulars Particulars Particulars (A)Total -(i+ii) ii) Cashonhand Vivimed Labs MauritiusLimited Investments throughfairvalueofcorporateguarantees Others Total (i+ii+iii) (B) Total(iii) -Unpaiddividendaccount iii) Bankbalancesotherthancash andcashequivalentsstatedabove Yantra GreenPowerPrivateLimited Finoso PharmaPrivateLimited Vivimed Labs USAInc. Total investmentscarriedatfairvaluethroughprofitandloss Total investmentscarriedatcost Total Other investments Cash andcashequivalents Trade receivables Investments (Contd.)

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 31 March2019 31 March2019 31 March2019 1,018.86 2,824.47 1,051.70 1,051.70 1,769.14 (32.85) 241.59 249.59 875.31 764.10 206.54 239.22 807.56 84.69 25.00 20.96 15.60 26.29 41.46 Asat Asat Asat Asat 8.00 2.37 1.29 8.00 2.25 2.65

31 March2018 31 March2018 31 March2018 31 March2018 1,676.71 2,925.40 1,703.26 1,518.66 1,703.26 1,838.00 1,450.31 (26.55) 552.45 422.86 112.09 91.78 91.78 25.00 90.08 20.96 15.60 26.89 41.46 Asat Asat Asat Asat 1.70 1.89 2.25 2.65 - -

125 Annual Report 2018-19 126 VIVIMED LABS LIMITED forming partoftheStandalonefinancialstatements Notes (a) Reconciliation of shares outstanding at the beginning and end of the reporting year Capital 13. Share assets 12. Other 11. 10. paid-up. 82,523,915 (March31,2018:82,523,915)equity sharesofI2/-eachfully Issued, subscribedandfullypaid-up 710,000 (March31,2018:)PreferenceSharesofI1,000/-each Advance taxandTDSreceivable Loans andadvancestorelatedparties Security deposits Current 200,000,000 (March31,2018:200,000,000)equitysharesofI2/-each Authorised Share Capital Staff advances Advances otherthancapitaladvances Unsecured, consideredgood Current Total Prepaid expenses Other advances Particulars Particulars Particulars Issued during theyear(Equity sharesofC2/-eachfullypaid) Balance atMarch31,2017(Equity sharesofD2/-eachfullypaid-up) Particulars Particulars Issued during theyear(Equity sharesofC2/-eachfullypaid) Balance atMarch31,2018(Equity sharesofC2/-eachfullypaid-up) Balance atMarch31,2019(Equity sharesofD2/-eachfullypaid-up) Total Less: Provisionfortaxes Total Currenttaxassets Loans (Unsecured,consideredgoodunlessotherwisestated)

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 31 March2019 31 March2019 31 March2019 Numberof 8,10,18,915 8,25,23,915 8,25,23,915 Shares 15,05,000 1,245.21 1,100.00 165.05 199.09 684.23 165.05 199.09 647.81 205.57 966.98 710.00 400.00 36.41 72.66 Asat Asat Asat Asat -

31 March2018 31 March2018 31 March2018 31 March2018 1,257.93 1,100.00 162.04 165.05 165.05 582.11 165.05 518.65 202.81 890.81 164.31 165.05 710.00 400.00 Value 25.48 25.48 63.46 Asat Asat Asat Asat 3.01 -

14. Otherequity (c) Detailsofshareholdersholdingmore than 5%sharesintheCompany preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. the holdersofequity shareswillbeentitledtoreceiveremainingassetsoftheCompany,afterdistribution ofall per share.TheCompanydeclaresand pays dividendinIndianrupees.Intheeventofliquidation oftheCompany, Equity sharesoftheCompanyhaveaparvalueI2pershare.Eachholderequity sharesisentitledtoonevote (b) Terms/rightsattachedtothe equity shares forming partoftheStandalonefinancialstatements Notes Particulars received inrespectofsharesissued. Securities premiumconsistsofthedifferencebetweenfacevalueequity sharesandtheconsideration Closing balance Additions during theyear Number ofsharesheld BBR ProjectsPrivateLimited Equity sharesofI2/-eachfullypaid Closing balance Add: Transfers duringtheyear Opening balance General reserve Closing balance Additions during theyear Opening balance Capital reserve Opening balance Securities premium % ofholding Number ofsharesheld Santosh Varalwar % ofholding Number ofsharesheld Kitara PIIN1102 % ofholding Particulars Particulars or loss. other comprehensiveincome,items includedinthegeneralreservewillnotbereclassified subsequently toprofit As the general reserve is created by a transfer from one component of equity to another and is not an item of The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes.

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 31 March2019 31 March2019 1,23,12,000 55,99,050 91,50,685 1,766.60 1,766.60 167.80 167.80 11.09% 14.92% 6.78% Asat Asat Asat 8.57 8.57 - - -

31 March2018 31 March2018 31 March2018 1,31,62,000 60,99,050 91,50,685 1,766.60 1,766.60 167.80 167.80 11.09% 15.95% 7.39% Asat Asat Asat 8.57 8.57 - - -

127 Annual Report 2018-19 128 VIVIMED LABS LIMITED 15. Borrowings 14. Otherequity(Contd.) forming partoftheStandalonefinancialstatements Notes 2019.This loancarriesaninterest rateof12.75% (ii) TermloanfromAllahabadBank forINR500millionrepayablein16instalmentsfromMay 2015 toFebruary carries aninterestrateof5.84%. (i) LoantakenfromSBIforUSD 10.1millionrepayablein16instalmentsfromOctober2017to June2021.Thisloan Term loanfromBanksconsists of: A. Termloans: Total currentborrowings - Foreignbillsdiscounting - Cashcreditand packing creditloans(refernoteDbelow) Working capitalloans Secured loansrepayableondemand B. CurrentBorrowings Total non-currentborrowings Sales taxdefermentloan(refernoteBbelow) Unsecured loans - Fromfinancialinstitutions Other loans - Fromfinancialinstitutions(refernoteAbelow) Closing balance Add: Additions fromamalgamated entities Opening balance Revaluation reserve FCCB's FromFinancialInstitutions(refernoteCbelow) - Frombanks(refernoteAbelow) Term loans Secured loans A. Non-currentBorrowings Particulars Particulars Profit/(loss) fortheyear Opening balance Retained earnings Total otherequity Closing balance Other comprehensiveincome Ind AS Adjustments Dividend paid during theyear(includingtaxondividend) Additions fromamalgamated entities

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 31 March2019 2,141.26 5,561.16 2,141.26 3,186.07 3,238.19 897.10 380.00 380.00 553.16 276.03 (11.85) 58.94 61.86 Asat Asat 8.97 2.11 - - - - -

31 March2018 31 March2018 2,587.04 1,159.57 5,509.04 2,587.04 3,123.59 3,186.07 380.00 380.00 489.33 257.98 401.12 (11.85) 98.67 Asat Asat 7.49 3.66 3.28 - - - -

17. Deferred tax liabilities, net 17. Deferredtaxliabilities, 16. Otherfinancialliabilities the year. 5.45% to14.75%.Duringtheyear,EXIMBank have notrenewed PCFC facilityand the loanwascalled back during Allahabad Bank, Exim and PCFC amounting to a total limit of INR 2,622 million with interest rates varying between The CompanyhasworkingcapitalfacilitiesintheformofcashcreditsandpackagingcreditfromStateBankIndia, D. Cashcreditsandpackagingcreditloans: instrument. upto 30 September 2019. The entire portionwas classified under "Borrowings", and there is no equity portion of the conversion optionisnotexercised.Subsequently, duringtheyear,due dateforpaymenthasbeenextended with acouponrateof0.55%perannumand an interestrateof4.23%perannumcompoundedsemiannuallyifthe The CompanyhasobtainedanFCCBfromIFCinJune2011foramountofUSD7.5millionrepayable5years C. FCCB'sfromFinancialInstitutions: per thetermsofthisscheme,CompanyhastorepayamounttillFY2018-19.Thisloanisunsecured. The CompanyhasbeengrantedaninterestfreesalestaxdefermentloanbytheGovernmentofAndhra Pradesh.As B. Salestaxdefermentloan: future, withaparipassucharge. All thetermloansaresecured by achargeonthemoveableand immovable assetsoftheCompany,presentand loan carriesaninterestrateof6.02%. (i) ECBloantakenfromIFCforUSD12.5millionrepayablein10instalmentsJune2015toDecember2019.This Term loanfromFinancialInstitutionsconsistsof: forming partoftheStandalonefinancialstatements Notes Employee salariespayable Current maturitiesoflong-termdebts (B) Current Deferred taxasset, net -Fairvaluationoffinancialliabilities Deferred tax liability Total -MATcreditentitlement -Expected credit lossonfinancialassets -Provisionallowedundertax on paymentbasis -TangibleandIntangibleassets Deferred taxasset Payable torelated parties Creditors forcapitalgoods (A) Non-Current Particulars Particulars Employee bonuspayable Provision forexpenses

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 31 March2019 1,244.95 1,001.89 532.34 440.78 243.06 98.72 98.72 98.72 57.53 14.66 19.37 Asat Asat - - - -

31 March2018 31 March2018 1,352.85 1,074.68 133.35 133.35 133.35 759.96 708.43 278.17 30.19 14.94 Asat Asat 6.40 - - - -

129 Annual Report 2018-19 130 VIVIMED LABS LIMITED 21. Currenttaxliabilities 20. Tradepayables 19. Provisions 18. Otherliabilities forming partoftheStandalonefinancialstatements Notes Less: AdvancetaxandTDSreceivable Advances received Deferred interest (A) Non-Current Provision fortaxes note 37) - Totaloutstandingduesofmicroenterprisesandsmall (refer Trade payables - Gratuity(refernote36) Provision foremployeebenefits (A) Non-Current enterprises - Totaloutstandingduesofcreditorsotherthanmicroenterprises andsmall Particulars Particulars Particulars Particulars Grants receivable Financial guaranteeliability - Compensatedabsences Financial guaranteeliability (B) Current Provision forothers - Gratuity(refernote36) Provision foremployeebenefits (B) Current

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 31 March2019 31 March2019 31 March2019 351.01 352.85 351.01 352.85 97.99 95.38 15.90 70.45 50.92 11.65 21.80 22.66 Asat Asat Asat Asat 7.77 7.77 - - - - -

31 March2018 31 March2018 31 March2018 31 March2018 403.05 233.86 165.39 403.05 134.19 233.86 71.69 15.30 40.14 15.53 17.55 14.00 Asat Asat Asat Asat 0.37 7.76 5.52 7.76 5.52 - -

25. ChangesininventoriesandWork-in-progress 24. Costofmaterialsconsumed 23. Otherincome 22. Revenuefromoperations forming partoftheStandalonefinancialstatements Notes (Increase) /Decrease inInventories Miscellaneous income Guarantee income Grants received Goods intransit Sub Total(B) Less:Inventoriesattheend of theyear Sub Total(A) Add : AmalgamatedEntitiesFinishedGoods Inventoriesatthebeginning oftheyear Semi FinishedGoods&Work-in-Progress Less:Inventoriesattheend of theyear Inventoriesatthebeginningofyear Finished Goods Particulars Particulars Particulars Particulars Opening StockofRawMaterialsand Consumables Unwinding ofinterestonassetsdiscounted Domestic Revenue fromsaleofproducts Add : OpeningStockofRawMaterialonAmalgamatedEntities Opening StockofPackingMaterials Other operatingrevenue Export Add : OpeningStockofPackingMaterialonAmalgamatedEntities Add : Purchasesduring theyear Less :ClosingStockofRawMaterialsand Consumables Less :ClosingStockofPackingMaterials

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated).

For theyearended For theyearended For theyearended For theyearended 31 March2019 31 March2019 31 March2019 31 March2019 2,518.08 2,140.57 1,587.94 1,277.04 1,838.00 3,130.87 1,180.78 1,769.14 (474.04) (666.52) 377.51 552.63 112.09 (23.84) 216.32 206.54 422.86 759.40 735.56 85.35 78.45 84.69 3.02 3.88 - - - -

For theyearended For theyearended For theyearended For theyearended 31 March2018 31 March2018 31 March2018 31 March2018 2,613.86 2,569.10 1,900.58 1,149.74 1,895.63 3,099.83 1,092.21 1,838.00 (285.73) (280.28) 668.52 111.99 112.09 (32.83) 422.86 142.58 735.56 762.94 44.76 19.30 27.38 6.60 9.09 0.38 3.23 - - -

131 Annual Report 2018-19 132 VIVIMED LABS LIMITED 29. Financecosts 28. Depreciationandamortisationexpense 27. Otheroperatingexpenses 26. Employee benefits expense forming partoftheStandalonefinancialstatements Notes Contribution toprovidentand other funds Salaries, wagesand bonus Amortization ofintangibleassets Depreciation oftangibleassets Consumption ofStores&Spares Particulars Particulars Particulars Particulars Other borrowingcost Interest onworkingcapitalloanand cash credit Interest ontermloans,ECBloansand vehicle loans Staff welfareexpenses Wages &Allowances Power &Fuel Labour Charges Repairs toBuilding Repairs toMachinery Other ManufacturingExpenses Job Work Charges R &DExpenses

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated).

For theyearended For theyearended For theyearended For theyearended 31 March2019 31 March2019 31 March2019 31 March2019 302.20 182.59 378.75 350.54 151.39 524.03 323.57 126.51 48.32 89.20 72.17 19.25 62.79 31.20 20.93 73.95 6.84 0.94 1.42 1.27 7.29

For theyearended For theyearended For theyearended For theyearended 31 March2018 31 March2018 31 March2018 31 March2018 309.41 108.33 181.43 340.87 313.22 148.35 518.02 348.76 136.99 37.11 10.44 63.00 25.22 58.14 33.08 19.35 32.27 1.91 4.75 0.51 8.30

31. Taxexpenses 30. Otherexpenses forming partoftheStandalonefinancialstatements Notes Income taxchargetoOCI Business &MarketingExpenses Particulars Particulars Re-measurement gains/(losses) ondefinedbenefitplan Deferred taxrelatedtoitemsconsideredinOCIduringthe year Income tax expense recognised inthe statement ofprofitorloss Current incometaxcharge Current incometax: Relating tooriginatingandreversaloftemporarydifferences Deferred tax: Bank charges Commission &Discounts Travelling Expenses-Foreign Printing &Stationery Telephone &PostageExpenses Travelling Expenses Rates &Taxes Conveyance Directors' SittingFee Consultancy Charges Insurance Rent Processing feeontermloans Other AdministrativeExpenses Fluctuation onForeignexchange Provision againstdoubtfulreceivables Directors' Remuneration-Salary (i)AsAuditor Payment toAuditors: (ii)ForTaxationMatters

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated).

For theyearended For theyearended For theyearended 31 March2019 31 March2019 31 March2019 (10.55) 361.55 180.39 (20.93) (1.03) 18.44 24.35 35.34 21.98 17.45 24.13 (1.03) 10.38 2.30 1.59 5.43 5.65 9.10 1.13 3.95 8.31 0.14 1.82 0.07 - -

For theyearended For theyearended For theyearended 31 March2018 31 March2018 31 March2018 (10.15) 330.90 (27.18) 15.03 14.69 37.73 36.40 12.87 18.73 65.68 13.80 45.57 29.00 17.02 3.98 4.52 6.95 8.53 1.45 7.55 6.53 1.82 0.07 3.28 3.28 -

133 Annual Report 2018-19 134 VIVIMED LABS LIMITED b) a) 33. andcommitments 32. Contingentliabilities forming partoftheStandalonefinancialstatements Notes individual amount cannotbedetermined. this isprovided in thebooksofaccountson basisofactuarialvaluationfor theCompanyasawholeand hence *Does notincludeinsurance,which ispaidfortheCompanyasawholeand gratuity and compensated absences as ii) Commitments: i) Contingentliabilities: Sale ofgoods Key Management Personnel Subsidiary Companies Particulars Key ManagementPersonnel("KMP") Joint ventureCompany Step down subsidiaryCompanies Transactions withrelatedparties Names ofrelatedpartiesanddescriptionrelationship Related partydisclosures Advances received Advances given Purchase ofgoods - Estimated amount ofcontractsremainingtobeexecutedoncapital - Income taxdemand - Corporateguaranteesgivenonbehalfofothers Subsidiaries andstepdownsubsidiaries In subsidiaries Investments made Remuneration Paid* - Bankguarantees - Letterofcreditoutstanding account and not providedfor,netofadvances

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated).

Yugandhar Kopparthi(CompanySecretary) RaghunandanS(Whole-TimeDirectorand CFO) SantoshVaralwar(ManagingDirector) - SoneasResearchLtd SoneasChemicalLtd VivimedLabs(Mascarene)Ltd UquifaMexicoS.A.deC.V. HollidayInternationalLimited UnionQuimicoFarmaceuticaS.A.U VivimedLabsSpainS.L. VivimedLabsUKLimited VivimedLabsEuropeLimited UQUIFAIndiaPrivateLimited VivimedLabsMauritiusLimited VivimedLabsUSAINC. VivimedHoldingsLimited VivimedSpecialtyChemicalsPrivateLimited FinosoPharmaPrivateLimited

For theyearended 31 March2019 31 March2019 1,533.61 796.54 157.44 970.25 26.31 414.35 14.20 58.60 Asat 68.02 -

-

For theyearended 31 March2018 31 March2018 3,105.13 1,273.01 1,619.66 1,076.60 487.06 455.00 642.65 40.17 Asat 68.02 9.06 -

c) forming partoftheStandalonefinancialstatements Notes The Companyhastworeportablesegments-SpecialityChemicals Businessand Pharma Business. resources onoverallbasis. to the Chief Operating Decision Maker (CODM).The CODM evaluates the Company’s performance and allocates segments and geographical segments are to be reported in a manner consistent with the internal reporting provided geographic areas,andmajorcustomers.Basedonthe“management approach”asdefinedinIndAS108,Operating report informationaboutoperatingandgeographicalsegments andrelateddisclosuresaboutproducts andservices, Ind AS108“OperatingSegment”(“Ind108”)establishesstandards forthewaythatpublicbusiness enterprises 34. Segmentinformation e) Others: d) Total revenue Union QuimicoFarmaceuticaSAU,Spain Vivimed Labs SpainUSL c) Others Vivimed Labs Mauritius Vivimed Labs Europe Vivimed Labs USAInc.USA Finoso PharmaPrivateLimited b) Pharma a) SpecialityChemicals Revenue bysegment Yantra GreenPower BBR Projects Vivimed Holdings Ltd Kreatvie HostsAtriaPvtLtd Yantra E-SolarIndiaPrivateLimited Uquifa Mexico Nisarg BiosciencesPrivateLimited Vivimed Life sciencesPrivateLimited Vivimed Global GenericsPrivatelimited BBR GreenfieldsPrivateLimited Sanvita BiotechPrivateLimited Details ofbalancesreceivablefromandpayabletorelatedpartiesare as follows: The CompanyhasgivenCorporateGuaranteeforthecreditfacilitiesofC414.35MnavailedbySubsidiaries. length transactions.Outstandingbalancesattheyear-end are unsecured and interest free. The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s Terms and conditions oftransactionswithrelatedparties:

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated).

For theyearended For theyearended 31 March2019 31 March2019 2,469.76 1,904.58 (248.08) (538.06) (232.14) (48.87) (13.62) (65.44) (53.05) (75.59) 244.29 565.18 478.93 163.01 108.40 (4.06) 40.50 0.19 0.11 5.70 -

For theyearended For theyearended 31 March2018 31 March2018 2,613.86 1,897.74 (237.25) (213.44) (332.33) (56.86) 358.18 716.12 379.23 (6.21) (0.56) (2.95) 11.40 58.72 24.99 26.05 40.45 1.58 0.15 5.70 -

135 Annual Report 2018-19 136 VIVIMED LABS LIMITED forming partoftheStandalonefinancialstatements Notes Reconciliation ofopeningandclosing balancesofthepresentvaluedefined benefit obligations: and theamountsrecognisedinbalancesheetforplan: The followingtablessummarizethecomponentsofnetbenefit expenserecognisedinthestatementofprofitorloss retirement/exit, restrictedtoasumofI2,000,000. salary for each year of completed service (service of six months and above is rounded off as one year) at the time of The GratuityPlanentitlesanemployee,whohasrenderedatleast fiveyearsofcontinuousservice,toreceive15days The Companyprovidesitsemployeeswithbenefitsunderadefined benefit plan,referred to asthe“GratuityPlan”. 36. Gratuity 35. Auditors’remunerationinclude: Total c) Others b) Pharma a) SpecialityChemicals (Profit beforeTax&Interest) Statutory auditfee(includinglimitedreview) b) Pharma a) SpecialityChemicals Total Taxation matters Segment Assets Segment Results Particulars Total Profitbeforetax (ii) Unallocableexpenditure(NetofUnallocableincome) Less: (i)Interest a) SpecialityChemicals Segment Liabilities Total b) Pharma Total a) SpecialityChemicals Capital Employed b) Pharma Total

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated).

For theyearended For theyearended 31 March2019 31 March2019 31 March2019 11,546 575.33 11,036 486.49 524.03 10,486 5,819 51.30 88.85 1,060 5,651 6,925 4,111 168 Asat 1.89 1.82 0.07 -

For theyearended For theyearended 31 March2018 31 March2018 31 March2018 12,554 606.54 11,144 402.79 203.75 518.02 10,699 6,880 88.52 1,855 6,724 7,187 3,957 Asat 1.89 1.82 0.07 156 -

forming partoftheStandalonefinancialstatements Notes are asfollows: A quantitativesensitivityanalysisforsignificantassumption anditsimpactonprojectedbenefitobligation assuming therearenootherchanges inmarketconditions. These sensitivieshavebeencalculated to showthemovement inprojected benefit obligation inisolationand Opening balance Impact of1%decreaseindiscountrate Impact of1%increaseindiscountrate Future salaryincreases Discount rate(perannum) Gratuity cost Interest cost Service cost Benefits paid Interest cost Current servicecost Impact of1%increaseinsalarygrowthrate Actuarial gain/(loss)duetoothers Re-measurement gains/(losses)inOCI Actuarial gain Impact of1%increaseinattritionrate Impact of1%decreaseinsalarygrowthrate Total expensesroutedthroughOCI Return onplanassetsgreater(less)thandiscountrate Remeasurement becauseofOBdifference Closing balance Impact of1%increaseinmortalityrate Impact of1%decreaseinattritionrate Assumptions Present valueofprojected benefit obligationattheend of theyear Impact of1%decreaseinmortality rate Net liabilityrecognised in thebalancesheet Fair valueofplanassetsattheendyear Non currentprovision Current provision Expenses recognisedinstatementofprofitandloss

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 31 March2019 31 March2019 31 March2019 (54.67) (45.47) (47.88) (50.84) (2.49) (3.61) (3.61) (3.14) 45.66 11.37 50.92 47.64 57.39 53.67 51.10 50.92 50.92 45.69 2.00% 7.36% Asat Asat Asat Asat 3.53 7.84 3.53 7.84 0.10 0.38 5.23 -

31 March2018 31 March2018 31 March2018 31 March2018 (42.53) (40.41) (42.42) (45.58) (0.13) (4.11) 19.73 12.15 45.66 10.67 10.67 49.26 13.90 51.76 13.90 48.58 45.74 45.66 45.66 40.13 2.00% 7.73% Asat Asat Asat Asat 1.48 1.48 0.02 9.81 5.52 -

137 Annual Report 2018-19 138 VIVIMED LABS LIMITED i) in thesearrangementrangesfrom5%to10%. from eleven monthsto five years, with an option to renew the lease after the term completion.The escalation clause The Companyhastakenvariousofficepremisesunderoperating leases.Theleasestypicallyrunforatermranging Where the Companyisalessee: 38. Leases for interestfromanysupplier. Development Act,2006(‘TheMSMEDAct’)isnotexpectedtobematerial.TheCompanyhasreceivedanyclaim interest, if any, that may be payable in accordance with the provisions of the Micro, Small and Medium Enterprises based oninformationreceived and available withtheCompany.Furtherinviewofmanagement,impact respect of the amounts payable to such enterprises as at March 31, 2019 has been made in the financial statements Entrepreneurs MemorandumNumberasallocated after filingoftheMemorandum.Accordingly,disclosurein recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the The MinistryofMicro,Smalland Medium Enterpriseshasissued an officememorandumdated 26 August2008which 37. DuestoMicro,smallandmediumenterprises forming partoftheStandalonefinancialstatements Notes ii) Cancellable leaseexpense Not laterthan1year Particulars Particulars Total Non -cancellableleaseexpense Later than1yearandnotlater5years Later than5years d) b) e) a) c) Future minimumleasepaymentsundernon-cancellableoperating leasesareasfollows: Amounts recognised in statement of profit and loss: succeeding years, until such date when the interest dues above are ac the amountoffurtherinterestremainingdue and payable eveninthe accounting year;and the amount of interestaccrued and remaining unpaid at the end of each the year) but without adding the interest specified under this MSMED Act payment (whichhavebeenpaidbutbeyondtheappointed dayduring the amount of interest due and payable for the period of delay in making beyond theappointed day duringeachaccountingyear; MSMED Act, along with the amount of the payment made to the supplier the amountofinterestpaidbybuyerintermssection16 the endofeachaccountingyear. the principalamountdue thereonremainingunpaid to anysupplier at Particulars deductible expenditureundersection23oftheMSMEDAct. tually paid to the small enterprise, for the purpose of disallowance of a

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). - 31 March2019 31 March2019 31 March2019 Nil Nil Nil Nil Nil 17.45 15.30 13.02 11.30 Asat Asat Asat 2.15 -

31 March2018 31 March2018 31 March2018 Nil Nil Nil Nil Nil 18.73 16.58 13.02 11.30 Asat Asat Asat 2.15 -

primarily tothe Company’sshort-termdebtobligations withfloatinginterestrates. of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates Interest rateriskisthe that thefairvalueorfuturecash flowsofafinancialinstrumentwillfluctuatebecause Interest raterisk is based on thefinancialassetsand financial liabilitiesheld at March31,2019and March 31,2018. The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This The belowassumptionhasbeenmadeincalculatingthesensitivity analysis: retirement obligations;provisions. The analysis excludes the impact of movements in market variables on: the carrying values of gratuity and other post floating interestratesofthedebt. 2018. Thesensitivityanalyseshavebeenpreparedonthebasis thattheamountofnetdebtandratiofixedto deposits. Thesensitivityanalysisinthefollowingsectionsrelate tothepositionasatMarch31,2019and as commodityrisk.Financialinstrumentsaffectedbymarket riskincludeloansandborrowingsrefundable changes inmarketprices.Marketriskcomprisestwotypes of risk:interestrateriskand other pricerisk,such Market riskisthethatfairvalueoffuturecashflows ofafinancialinstrumentwillfluctuatebecause a) Marketrisk which aresummarizedbelow. the managementofthese risks. The Board of Directors reviews and agrees policiesfor managing each of theserisks, The Companyisexposed to marketrisk,creditriskand liquidity risk.TheCompany’sseniormanagementoversees that derivedirectlyfromitsoperations. financial assetsincludeinventory,tradeandotherreceivables,cashequivalents andrefundabledeposits purpose ofthesefinancialliabilitiesistofinanceandsupportCompany’soperations.Theprincipal The Company’sprincipalfinancialliabilitiescompriseloansand borrowings, tradeand other payables.Themain 40. Financialriskmanagementobjectivesandpolicies be issuedonconversionofallthedilutivepotentialequitysharesinto Shares. number of equity shares outstanding during the year plus the weighted average number of equity shares that would Diluted EPSamountsarecalculatedbydividingtheprofitattributable toequityholdersbytheweightedaverage average numberofequitysharesoutstandingduring theyear. Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted 39. Earningspershare forming partoftheStandalonefinancialstatements Notes Profit fortheyearattributable toequity shareholders Particulars year –basic Weighted averagenumberofequitysharesoutstandingduringthe Shares year –diluted Weighted averagenumberofequitysharesoutstandingduringthe Earnings pershareofparvalueI2–basic() Earnings pershare Earnings pershareofparvalueI2–diluted()

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 8,25,23,915.00 8,60,18,915.00 61.86 Asat 0.75 0.72

31 March2018 8,25,23,915.00 8,35,18,915.00 98.67 Asat 1.20 1.18

139 Annual Report 2018-19 140 VIVIMED LABS LIMITED undiscounted The tablebelowsummarises the maturity profile of theCompany’sfinancialliabilities based on contractual bank depositsandloans. payments:” The Company’sobjectiveistomaintain abalancebetweencontinuityoffundingandflexibility throughtheuseof c) Liquidityrisk institutions withhighcreditratingsassignedbyinternationaland domesticcreditratingagencies. Credit riskoncashandequivalent islimitedastheCompanygenerallytransactswith banksandfinancial there isnosignificantconcentrationriskofrevenue. No singlecustomeraccountsformorethan10%oftherevenue asofMarch31,2019,2018andhence was asfollows: 2016: 2,302.83).Themovementinallowanceforcreditlossrespectoftradeandotherreceivablesduringtheyear as at reporting date is primarily from trade receivables amounting to trade and other receivables based on the past and the recent collection trend. The maximum exposure to credit risk The Company establishes an allowance for credit loss that represents its estimate of expected losses in respect of monitored onacontinuousbasisbythereceivablesteam. credit hasbeengrantedafterobtainingnecessaryapprovalsforcredit.Thecollectionfromthetradereceivablesare Credit riskiscontrolledbyanalysingcreditlimitsandcreditworthinessofcustomersonacontinuousbasistowhom financial instruments. receivables) and from its investing activities, including deposits with banks and financial institutions and other contract, leadingtoafinancialloss.Thecreditriskarisesprincipallyfromitsoperatingactivities(primarilytrade Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer b) Creditrisk through theimpactonfloatingrateborrowings,asfollows:” of loansandborrowingsaffected.Withallothervariablesheld constant, theCompany’sprofitbeforetaxisaffected The followingtabledemonstratesthesensitivitytoareasonablypossiblechangeininterestratesonthatportion Interest ratesensitivity does notenterintoanyinterestrateswaps. The Company manages its interest rate risk by having a balanced portfolio of variable rate borrowings. The Company forming partoftheStandalonefinancialstatements Notes Opening balance Allowance forcreditloss INR INR March 31,2018 INR INR March 31,2019 Credit lossprovided/(reversed) Closing balance

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). C1,676.71 (March 31,2017: 2,248.54; April 1, Increase/decrease ininterestrate 31-Mar-19 26.55 32.85 6.30 +1% +1% -1% -1% 31-Mar-18 20.02 26.55 6.53 forming partoftheStandalonefinancialstatements Notes has beencompleted. present andfuturearrangements andshalldeterminetheappropriatetransitionoptiononce thesaidevaluation requirements inIndAS17.TheCompany isintheprocessofevaluatingimpactNew Lease Standardonthe enhanced disclosurerequirements forlessees.IndAS116Substantiallycarriesforward the lessoraccounting underlying asset and a lease liability representing its obligation to make lease payments. The standard also contains sheet lessee accounting model for lessees. A lessee recognises rightof- use asset representing its right to use the measurement, presentationanddisclosureofleasesforboth lessees andlessors.Itintroducesasingle,on-balance Ind AS-116 will replace the existing leases standard, Ind AS 17 Leases. Ind AS 116 sets out the principles of recognition, Ind AS-116 amendments toIndAsswhichtheCompanyhasnotapplied astheyareeffectivefrom1April 2019 and Companies (Indian Accounting Standards) second Amendment Rules, has notified the following new and Ministry ofCorporateAffairs(“MCA”),throughCompanies(Indian AccountingStandards)AmendmentRules,2019 The standardsissued,butnoteffectiveuptothedateofissuance ofthefinancialstatementsisdisclosed below: 42. Standardsissuedbutnoteffective The capitalstructureasofMarch31,2019,2018wasfollows: comprise ofissued share capitaland all otherequityreserves. For thepurposeofdebttototalequityratio,consideredislong-termandshort-termborrowings.Total employed as wellthedebttototalequityratio. and to sustain futuredevelopmentofthe business. Management monitors capital on the basisofreturn on capital The Company’spolicyistomaintainastablecapitalbasesoasinvestor,creditorandmarketconfidence 41. Capitalmanagement Total equityattributable totheequityshareholdersofCompany Particulars Trade payables Borrowings Year endedMarch31,2018 Trade payables Borrowings Year endedMarch31,2019 As apercentageoftotalcapital Long termborrowingsincludingcurrentmaturities Short termborrowings Total borrowings As apercentageoftotalcapital Total capital(equityand borrowings)

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 62.21% 37.79% 9,205 5,726 1,338 2,141 3,479 Asat On demand

2,587 2,141 234 353 31 March2018 10,129 56.02% 43.98% 5,674 1,868 2,587 4,455 Asat

141 Annual Report 2018-19 142 VIVIMED LABS LIMITED previously held interests inthatbusiness.The Company doesnotexpectany impact fromthisamendment. clarify thatwhenanentityobtains jointcontrolofabusinessthatisoperation,theentity doesnotremeasure that isajointoperation,itre-measures previouslyheld interests inthatbusiness.TheamendmentstoInd AS 111 The amendmentstoIndAS103 relatingtore-measurementclarifythatwhenanentityobtains controlofabusiness Ind AS103–BusinessCombinations andIndAS111–JointArrangements is notapplied. TheCompanydoesnotexpectanyimpactfrom thisamendment. or jointventurethatformpartofthenetinvestmentinassociate orjointventurebuttowhichtheequitymethod The amendmentsclarifythatanentityappliesIndAS109Financial Instruments,tolong-terminterestsinanassociate Ind AS28-Long-termInterestsinAssociatesandJointVentures amendment. when calculating the capitalisation rate on general borrowings. The Company does not expect any impact from this asset isreadyforitsintendeduseorsale,thatborrowingbecomes partofthefundsthatanentityborrowsgenerally 23 - Borrowing Costs The amendment clarify that if any specific borrowing remains outstanding after the related The Company does not expect this amendment to have any significant impact on its financial statements. Ind AS curtailment orsettlementontherequirements regardingtheassetceiling. for theremeasurement.Inaddition, amendmentshavebeenincludedtoclarifytheeffect ofaplanamendment, service cost and the net interest for period after the re-measurement are determined using the assumption used The amendmentsclarifythatifaplanamendment,curtailmentorsettlementoccurs,itismandatorythecurrent Ind AS19-PlanAmendment,CurtailmentorSettlement have anyimpactonitsfinancialstatements. income) eveninthecaseofnegativecompensationpayments.TheCompanydoesnotexpectthisamendmentto measurement atamortisedcost(or,dependingonthebusiness model,atfairvaluethroughothercomprehensive The amendment relate to the existing requirements in Ind AS 109 regarding termination rights in order to allow Ind AS109-PrepaymentFeatureswithNegativeCompensation on itsfinancialstatements. rates woulddependupontheprobability.TheCompanydoesnotexpectanysignificantimpactofamendment treatment andthedeterminationoftaxableprofit(taxloss),taxbases,unusedlosses,credits examining any amount (3) entity has to consider the probability of relevant taxation authority accepting the tax (2) theentityistoassumethattaxationauthoritywillhavefullknowledgeofallrelevant information while decision should be based on theapproachwhichprovidesbetterpredictionsof resolution of theuncertainty whether eachtaxtreatmentshould be considered separately orwhethersomecanbeconsidered together. The income taxtreatmentsunderInd AS 12.Itoutlinesthefollowing:(1)entityhastousejudgement,determine taxable profit(taxloss),taxbase,unusedlosses,creditsandrates,whenthereisuncertaintyover The amendment to Appendix C of Ind AS 12specifies that the amendmentistobe applied to thedeterminationof dividend, inaccordancewithInd AS 12. of shareholders. Such amount paid or payable to taxation authorities continues to be charged to equity as part of the entitypaysataxondividendwhichiseffectivelyportionofdividendspaidtotaxationauthoritiesbehalf any impactfromthispronouncement.Itisrelevanttonotethattheamendmentdoesnotamendsituationswhere according towheretheentityoriginallyrecognised those pasttransactionsorevents.TheCompanydoesnotexpect shall recognise the income tax consequences of dividends in profit or loss, other comprehensive income or equity income taxtreatments)Theamendmentrelatingtoconsequencesofdividendclarifythatanentity Ind AS12Incometaxes(amendmentsrelatingtoincometaxconsequencesofdividendanduncertaintyover forming partoftheStandalonefinancialstatements Notes

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). Chandra BabuM Sd/- ICAI FirmRegistrationNumber:016016S Chartered Accountants for PCN&Associates As perourreportofevendateattached The accompanyingnotesareanintegralpartofthestandalonefinancialstatements. year’s The figuresofthepreviousyearhavebeenregrouped/reclassified,wherenecessary,toconformwithcurrent 44. Prioryearcomparatives classification. There arenosignificanteventsthatoccurred after thebalancesheetdate. 43. SubsequentEvents forming partoftheStandalonefinancialstatements Notes Date: 30May2019 Place: Hyderabad Membership No.:227849 Partner

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). Santosh Varalwar Sd/- CIN: L02411KA1988PLC009465 Vivimed Labs Limited for andon behalfoftheBoardDirectors DIN: 02029812 Whole -Time DirectorcumCFO S Raghunandan Sd/- DIN: 00054763 Managing Director

Manohar RaoVaralwar Sd/- Sd/- M. No.ACS19315 Company Secretary Yugandhar Kopparthi DIN: 00059815 Whole -TimeDirector

143 Annual Report 2018-19 144 VIVIMED LABS LIMITED year endedonthatdate. changes inequityanditsconsolidatedcashflowsforthe consolidated totalcomprehensiveincome, the GroupasatMarch31,2019,consolidatedprofit, accepted in India,oftheconsolidatedstateaffairs (“IndAS”) and other accounting principles generally (Indian Accounting Standards) Rules ,2015, as amended under section133oftheActreadwithCompanies conformity with Indian Accounting Standards prescribed manner sorequiredandgiveatruefairviewin required by theCompaniesAct,2013(“Act”)in consolidated financialstatementsgivetheinformation according totheexplanationsgivenus,aforesaid In ouropinionandtothebestofinformation statements”). (herein afterreferredtoas“theconsolidatedfinancial accounting policiesandotherexplanatoryinformation ended onthatdate,andasummaryofthesignificant Consolidated Statement of Cash Flows for the year Consolidated StatementofChangesinEquity andthe Loss (includingOtherComprehensiveIncome),the 31, 2019,theConsolidatedStatementofProfitand comprise the Consolidated Balance Sheet as at March subsidiaries together referred to as “the Group”),which Company”) anditssubsidiaries(theCompany financial statementsof VIVIMED LABS LIMITED(“the We haveauditedtheaccompanyingconsolidated Opinion Statements Report ontheAuditofConsolidatedFinancial TO THEMEMBERSOFVIVIMEDLABSLIMITED Independent Auditor’sReport balance sheetposition. significantly impacttheCompany’s reportedprofitand Accordingly, unexpected adverse outcomes could unfavorable outcomeontheclaims. in determiningthelikelihoodand magnitudeofan accounting estimates made by management reflect These provisionsarebasedonjudgementsand subject tosignificantManagementjudgment. amounts ofprovisionsorcontingentliabilitiesare of litigationmaybesignificantandestimates of the corporate guaranteetoitssubsidiaries.Theamount in that area related to Income Tax, BGs, LCs and litigations. Major risks identified by the Company The Company is subject to number of significant statements. statements and note 34 to the consolidated financial Refer note 2.5 of the basis of preparation of financial Contingent LiabilitiesandlitigationMatters Key AuditMatter • We Evaluating the adequacy of disclosures given in Note 34 to • Evaluating significant adjustments to legal provisions recorded • Obtaining confirmations from internal legal counsel where • verifyingcorrespondence,ordersandappealsinrespectof • makingenquirieswiththein-houselegalcounselof Corroborating management’sassessmentby: provisions towardslitigationandclaims; of controls in respect of the recognition and measurement of We evaluatingthedesignandtestingoperatingeffectiveness Our auditproceduresincludedthefollowing: consolidated financialstatements. management bias;and during theyeartodetermine iftheywereindicativeof management; relevant and/orevaluatinglegalopinionsobtainedbythe open litigation; Company; the keyauditmatterstobecommunicated in ourreport. We havedetermined the mattersdescribedbelowtobe these matters. thereon, andwedonotprovideaseparateopinionon statements as a whole, and in forming our opinion the contextofourauditconsolidated financial the currentperiod.Thesematterswereaddressed in our auditoftheconsolidatedfinancialstatements professional judgment,wereofmostsignificancein Key audit matters are those matters that, in our Key Audit Matters statements. basis forouraudit opinion ontheconsolidated financial have obtainedissufficientandappropriatetoprovidea Code of Ethics. We believe that the audit evidence we in accordancewiththeserequirementsandtheICAI’s and wehavefulfilledourotherethicalresponsibilities provisions of the Act and the Rules made there under, audit of the consolidated financial statements under the independence requirementsthatarerelevanttoour Chartered Accountants of India (ICAI) together with the with theCodeofEthicsissuedbyInstitute report .WeareindependentoftheGroupinaccordance of theConsolidatedFinancialStatementssectionour described in the Auditor’sResponsibilities for the Audit Our responsibilitiesunderthoseStandardsarefurther (SAs) specified under section143(10)oftheAct(SAs). statements in accordance with theStandards on Auditing We conductedourauditoftheconsolidatedfinancial Basis forOpinion How thematterwasaddressedinouraudit and completeness of the accounting records, relevant and completenessoftheaccounting records,relevant that were operating effectively for ensuring the accuracy and maintenanceofadequateinternal financialcontrols, are reasonableandprudent; design,implementation accounting policies;makingjudgments andestimatesthat irregularities; selectionandapplicationof appropriate and forpreventingdetectingfraudsother of theActforsafeguardingassetsCompany accounting records in accordancewith the provisions responsibility alsoincludesmaintenanceofadequate accounting principles generally accepted in India. This of theCompanyinaccordancewithIndASandother comprehensive income,changesinequityandcashflows of thefinancialposition,performance,total financial statements that give a true and fair view with respect to the preparation of these consolidated for the matters stated in section 134(5) of the Act The Company’sBoardofDirectorsisresponsible Financial Statements for the Management’s Responsibility Consolidated • • • • Statements andAuditor’sReportThereon: Information OtherthantheConsolidatedFinancial that fact.Wehavenothingtoreportinthisregard. this otherinformation,wearerequired toreport conclude that there is amaterial misstatement of If, based on the work we have performed, we or otherwiseappearstobemateriallymisstated. knowledge obtainedduring thecourseofouraudit with theconsolidated financialstatementsorour the otherinformation is materiallyinconsistent other information and, in doing so, consider whether financial statements,ourresponsibilityistoreadthe In connectionwithourauditoftheconsolidated express anyformofassuranceconclusionthereon. does notcovertheotherinformationandwedo Our opinion on the consolidated financial statements and ourauditor’sreportthereon. not include the consolidated financial statements Governance and Shareholder’s Information,but does Report, BusinessResponsibilityCorporate Board’s Report including Annexure to Board’s in theManagementDiscussionandAnalysis, information comprisestheincluded the preparation of the other information. The other The Company’s Board of Directors is responsible for • skepticism throughouttheaudit.Wealso: professional judgment and maintain professional As partofanauditinaccordancewithSAs,weexercise statements. users takenonthebasisoftheseconsolidatedfinancial be expectedtoinfluencetheeconomicdecisionsof individually orintheaggregate,theycouldreasonably arise fromfraudorerrorandareconsideredmaterialif, material misstatementwhenitexists.Misstatementscan conducted inaccordancewithSAswillalwaysdetecta level ofassurance,butisnot a guaranteethatanaudit that includesouropinion.Reasonableassuranceisahigh due tofraudorerror,andissueanauditor’sreport a whole are free from material misstatement, whether about whethertheconsolidatedfinancialstatementsas Our objectivesaretoobtainreasonableassurance Consolidated FinancialStatements fortheAuditof Auditor’s Responsibilities the financialreportingprocessofGroup. included intheGroupisalsoresponsibleforoverseeing The respectiveBoardof Directors of the companies do so. to cease operations, or has no realistic alternative but to management either intends to liquidate the Company or using thegoingconcernbasisofaccountingunless applicable, mattersrelatedtogoingconcernand ability tocontinueasagoingconcern,disclosing, management is responsible for assessing the Company’s In preparingtheconsolidatedfinancialstatements, error. free from materialmisstatement,whetherdue to fraud or financial statements that give a true and fair view and are to the preparation and presentation of the consolidated internal control. omissions, misrepresentations, ortheoverrideof as fraudmayinvolvecollusion, forgery,intentional fraud ishigherthanforone resulting fromerror, detecting a material misstatement resulting from to provide a basisforouropinion.The risk of not audit evidencethatissufficientandappropriate procedures responsivetothoserisks,andobtain due tofraudorerror,designandperformaudit of theconsolidatedfinancialstatements,whether Identify andassesstherisksofmaterialmisstatement

145 Annual Report 2018-19 146 VIVIMED LABS LIMITED of a reasonably knowledgeable user of the financial of areasonablyknowledgeable userofthefinancial aggregate, makesitprobablethat theeconomicdecisions consolidated financial statements that, individually or in Materiality isthemagnitudeof misstatementsinthe • • • • • statements. of such entities included in the consolidated financial performance oftheauditfinancialstatements We are responsible for the direction, supervision and opinion on the consolidated financial statements. business activities within the Group to express an regarding thefinancialinformationofentitiesor Obtain sufficient appropriate audit evidence achieves fairpresentation. underlying transactions and events in a manner that consolidated financialstatementsrepresentthe including thedisclosures,andwhether content of the consolidated financial statements, Evaluate the overall presentation, structure and concern. may causetheGrouptoceasecontinueasagoing auditor’s report.However,futureeventsorconditions on theauditevidenceobtaineduptodateofour to modifyouropinion.Ourconclusionsarebased statements or, if such disclosures are inadequate, to therelateddisclosuresinconsolidatedfinancial are requiredtodrawattentioninourauditor’sreport If weconcludethatamaterialuncertaintyexists, ability oftheGrouptocontinueasagoingconcern. conditions thatmaycastsignificantdoubtonthe a material uncertainty exists related to events or based ontheauditevidenceobtained,whether use ofthegoingconcernbasisaccountingand, Conclude on the appropriateness of management’s and relateddisclosuresmadebymanagement. used andthereasonablenessofaccountingestimates Evaluate theappropriatenessofaccountingpolicies operating effectivenessofsuchcontrols. internal financialcontrolssysteminplaceandthe are companiesincorporatedinIndia,hasadequate the Company and its subsidiary companies which responsible forexpressingouropiniononwhether Under section 143(3)(i) of the Act, we are also procedures thatareappropriateinthecircumstances. controls relevanttotheauditinorderdesign Obtain anunderstandingofinternalfinancial by theManagement. is basedsolelyonthereportsand informationprovided the Act,insofarasitrelatestoaforesaidsubsidiaries and ourreportintermsofsubsection(3)section143 and disclosuresincludedinrespectof these subsidiaries, financial statements,insofarasitrelatestotheamounts by the Management and our opinion on the consolidated financial informationarepreparedandsubmittedtous financial statements.Thesestatements/ ended onthatdate,asconsideredintheconsolidated 2019, totalrevenuesofC before eliminationofC statements /financialinformationreflecttotalassets information of16subsidiaries,whosefinancial We didnotauditthefinancialstatements/ Other Matters: benefits ofsuchcommunication. reasonably beexpectedtooutweighthepublicinterest because theadverseconsequencesofdoingsowould a mattershouldnotbecommunicatedinourreport in extremelyrarecircumstances,wedeterminethat precludes publicdisclosureaboutthematterorwhen, matters in our auditor’s report unless law or regulation therefore thekeyauditmatters.Wedescribethese financial statementsofthecurrentperiodandare of most significance in the audit of the consolidated with governance,wedeterminethosemattersthatwere From thematterscommunicatedwiththosecharged independence, and where applicable, related safeguards. matters that may reasonably be thought to bear on our communicate with them all relationships and other ethical requirementsregardingindependence,andto a statement that we have complied with relevant We alsoprovidethosechargedwithgovernance that weidentifyduringouraudit. including anysignificantdeficienciesininternalcontrol and timingoftheauditsignificantfindings, regarding, amongothermatters,theplannedscope We communicatewith those chargedwith governance misstatements inthefinancialstatements. our work; and (ii) to evaluate the effect of any identified scope of our audit work and in evaluating the results of materiality andqualitativefactorsin:(i)planningthe statements maybeinfluenced.Weconsiderquantitative 2,788.40 crores as at 31 March 2,788.40 croresasat31March 1,138.32 crores for the year 1,138.32 croresfortheyear 1. Report onOtherLegalandRegulatoryRequirements f) e) d) c) b) a) audit wereportthat: As required by Section 143(3) of the Act, based on our stated therein. reporting ofthosecompanies, forreasons the internalfinancialcontrols over financial the adequacy and operating effectivenessof report expressesanunmodified opinion on Company anditssubsidiarycompanies.Our which isbasedontheAuditor’sreportsof refer to our separate Report in “Annexure A” the operatingeffectivenessofsuchcontrols, financial controls over financial reporting and With respecttotheadequacyofinternal a directorintermsofSection164(2)theAct. as on March31,2019 frombeingappointed as directors of the group companies is disqualified of the company and its subsidiaries, none of the 2019 takenonrecordbytheBoardofDirectors received fromthedirectors as onMarch 31, On thebasisofwrittenrepresentations Rule 7oftheCompanies(Accounts)Rules,2014. specified underSection133oftheAct,read with financial statementscomplywiththeIndAS In ouropinion,theaforesaidconsolidated financial statements. the purpose of preparation of the consolidated the relevantbooksofaccountmaintainedfor dealt with by this Report are in agreement with and the Consolidated Statement of Cash Flow Consolidated Statement of Changes in Equity (including Other Comprehensive Income), Consolidated StatementofProfitandLoss The ConsolidatedBalanceSheet,the examination ofthosebooks. have beenkeptsofarasitappearsfromour aforesaid consolidatedfinancialstatements required by law relating to preparation of the In our opinion, proper books of account as consolidated financialstatements. for thepurposesofourauditaforesaid of our knowledge and belief were necessary information andexplanationswhichtothebest We have sought and obtained all the Date: 30-05-2019 Place: Hyderabad h) g) iii. ii. i. explanations giventous: best ofourinformationandaccordingtothe 2014, asamendedinouropinionandtothe 11 ofthe Companies (Audit and Auditors) Rules, in the Auditor’s Report in accordance with Rule With respecttotheothermattersbeincluded the provisionsofsection197Act. directors during the year is in accordance with the remunerationpaidbyCompanytoits and according to the explanations given to us, In our opinion and to the best of our information amended: requirements of section 197(16) of the Act, as in theAuditor’sReportaccordancewith With respecttotheothermattersbeincluded companies. Fund bytheCompanyanditssubsidiary the Investor Education and Protection amounts, required to be transferred, to There hasbeennodelayintransferring contracts includingderivativecontracts. foreseeable losses,ifany,onlongterm accounting standards,formaterial required undertheapplicablelawor consolidated financial statements, as Provision has been made in the the Group. on theconsolidatedfinancialpositionof disclose the impact ofpending litigations The consolidated financial statements Chartered Accountants For PCN&Associates., Chandra BabuM FRN :016016S M.No:227849 Sd/- Partner

147 Annual Report 2018-19 148 VIVIMED LABS LIMITED the Guidance Note require that we comply with ethical the GuidanceNoterequirethat wecomplywithethical audit ofinternalfinancialcontrols. ThoseStandardsand the CompaniesAct,2013to extentapplicabletoan Standards onAuditingprescribed underSection143(10)of the InstituteofCharteredAccountants ofIndiaandthe Over Financial Reporting(the“Guidance Note”) issued by Guidance Note on Audit of Internal Financial Controls audit. We conducted our audit in accordance with the Company anditssubsidiarycompaniesbasedonour internal financialcontrolsoverreportingofthe Our responsibility is to express an opinion on the Auditor’s Responsibility under theCompaniesAct,2013. preparation ofreliablefinancialinformation,asrequired completeness of the accounting records, and the timely and detectionoffraudserrors,theaccuracy policies, the safeguarding of its assets, the prevention its business,includingadherencetorespectivecompany’s effectively forensuringtheorderlyandefficientconductof adequate internalfinancialcontrolsthatwereoperating include thedesign,implementationandmaintenanceof of Chartered Accountants of India. These responsibilities Controls Over Financial Reporting issued by the Institute in theGuidanceNoteonAuditofInternalFinancial the essential components of internal control stated established bytherespectiveCompaniesconsidering the internalcontroloverfinancialreportingcriteria and maintaininginternalfinancialcontrolsbasedon subsidiary companiesareresponsibleforestablishing The Board of Directors of the Company and its Controls forInternalFinancial Management’s Responsibility of thatdate. companies, which are companies incorporated in India, as (herein afterreferredtoas“Company”)anditssubsidiary controls over financial reporting of VIVIMED LABS LIMITED March 31,2019,wehaveauditedtheinternalfinancial statements oftheCompanyasandforyearended In conjunction with ouraudit of theconsolidatedfinancial of Section143theCompaniesAct,2013(“theAct”) Financial ReportingunderClause(i)ofSub-section3 Report on the Internal Financial Controls Over report totheMembersofVIVIMEDLABSLIMITEDevendate (Referred toinparagraph1(f)under‘ReportonOtherLegalandRegulatoryRequirements’sectionofour Annexure “A”ToTheIndependentAuditor’sReport Meaning ofInternalFinancialControlsOverFinan Companies. financial reportingoftheCompanyanditsSubsidiary opinion ontheinternalfinancialcontrolssystemover sufficient and appropriate to provide a basis for our audit We believe that the audit evidence we have obtained, is whether duetofraudorerror. risks of material misstatement of the financial statements, the auditor’s judgment, including the assessment of the the assessed risk.Theproceduresselected depend on and operatingeffectivenessofinternalcontrolbasedon weakness exists,andtestingevaluatingthedesign financial reporting,assessingtheriskthatamaterial an understandingofinternalfinancialcontrolsover controls overfinancialreportingincludedobtaining operating effectiveness.Ourauditofinternalfinancial controls systemoverfinancialreportingandtheir evidence abouttheadequacyofinternalfinancial Our auditinvolvesperformingprocedurestoobtain in allmaterialrespects. and maintainedifsuchcontrolsoperatedeffectively financial controls over financial reporting was established reasonable assuranceaboutwhetheradequateinternal requirements andplanperformthe audit to obtain company; and(3)provide reasonable assurance regarding company; and(3)providereasonable assuranceregarding authorizations ofmanagement anddirectorsofthe of thecompanyarebeingmade onlyinaccordancewith accounting principles, and that receipts and expenditures statements inaccordancewith generallyaccepted recorded as necessary to permit preparation of financial (2) providereasonableassurancethattransactionsare transactions anddispositionsoftheassetscompany; that, in reasonable detail, accurately and fairly reflect the procedures that(1)pertaintothemaintenanceofrecords control overfinancialreportingincludesthosepoliciesand accounting principles.Acompany’sinternalfinancial purposes in accordance with generally accepted and thepreparationoffinancialstatementsforexternal assurance regarding the reliability of financial reporting reporting is a process designed to provide reasonable A company’sinternalfinancialcontrolover cial Reporting - adequate internal financial controls system over financial adequate internalfinancialcontrolssystemover subsidiary companies,have,inallmaterialrespects,an to theexplanationsgivenus,Companyandits In our opinion ,to the best of our information and according Opinion deteriorate. degree ofcompliancewiththepoliciesorproceduresmay inadequate becauseofchangesinconditions,orthatthe financial control over financial reporting may become to futureperiodsaresubjecttheriskthatinternal of theinternalfinancialcontrolsoverreporting and notbedetected.Also,projectionsofanyevaluation material misstatementsduetoerrororfraudmayoccur of collusionorimpropermanagementoverridecontrols, controls overfinancial reporting, includingthepossibility Because oftheinherentlimitationsinternalfinancial Over FinancialReporting: Inherent LimitationsofInternalFinancialControls a materialeffectonthefinancialstatements.. use, ordispositionofthecompany’sassetsthatcouldhave prevention or timely detection of unauthorized acquisition, Date: 30-05-2019 Place: Hyderabad of CharteredAccountantsIndia Controls Over Financial Reporting issued by the Institute stated intheGuidanceNoteonAuditofInternalFinancial considering theessentialcomponentsofinternalcontrol reporting criteria established by the respective companies 31, 2019, based on the internal control over financial financial reportingwereoperatingeffectivelyasatMarch reporting andsuchinternalfinancialcontrolsover Chartered Accountants For PCN&Associates., Chandra BabuM FRN :016016S M.No:227849 Sd/- Partner

149 Annual Report 2018-19 150 VIVIMED LABS LIMITED Chandra BabuM Sd/- ICAI FirmRegistrationNumber:016016S Chartered Accountants for PCN&Associates As perourreportofevendateattached The accompanyingnotesareanintegralpartoftheconsolidatedfinancial statements. Date: 30May2019 Place: Hyderabad Membership No.:227849 Partner Property, plantandequipment Non-current assets Assets Particulars as at31stMarch2019 Consolidated BalanceSheet Other financialliabilities Capital work-in-progress Current taxliabilities Provisions Other currentliabilities Goodwill Summary ofsignificantaccountingpolicies Total equityandliabilities Total liabilities Other intangibleassets Investments Financial assets Deferred taxassets,net Inventories Current assets Other non-currentassets Trade receivables Financial assets Cash andcashequivalents Bank balancesotherthancashandequivalents Loans Others Current taxassets Equity sharecapital Equity Equity andLiabilities Total assets Other currentassets Instruments entirelyequityinnature Other equity Borrowings Financial Liabilities Non-current liabilities Total equity Non-controlling interests Equity attributabletotheownersofCompany Other financialliabilities Provisions Other noncurrentliabilities Borrowings Financial Liabilities Current liabilities Trade payables (All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated) Santosh Varalwar Sd/- CIN: L02411KA1988PLC009465 Vivimed Labs Limited for andon behalfoftheBoardDirectors DIN: 02029812 Whole -Time DirectorcumCFO S Raghunandan Sd/- DIN: 00054763 Managing Director

19 (B) 21 (B) 20 (B) 11 (B) 11 (A) 18 (B) Note 18 (A) 19 (A) 21 (A) 20 (A) 8 (B) 8 (A) 23 10 12 13 14 15 16 17 22 4 3 5 6 7 9 31 March2019 23,291.67 13,853.73 10,985.58 23,291.67 12,306.09 8,889.35 9,437.94 9,437.94 4,964.38 6,620.33 2,193.39 1,223.07 2,176.25 5,636.86 3,561.10 1,198.04 3,252.21 6,020.69 4,248.01 3,323.01 2,944.24 Manohar RaoVaralwar Sd/- Sd/- M. No.ACS19315 Company Secretary Yugandhar Kopparthi DIN: 00059815 Whole -TimeDirector 351.01 852.64 945.04 756.88 199.10 165.05 308.55 315.71 Asat 77.70 25.10 67.92 20.26 92.11 8.00 1.08 - - 31 March2018

23,936.28 11,549.50 11,116.87 23,936.28 12,819.41 12,386.78 12,263.97

7,902.31 3,647.19 7,447.16 1,398.16 2,176.26 5,401.66 2,754.30 2,501.03 3,252.21 8,846.71 3,251.97 3,851.61 2,019.14 652.71 548.80 730.15 990.33 847.14 324.17 165.05 122.81 233.60 Asat 78.28 26.99 78.57 91.34 70.28 5.52 5.03 0.78

Chandra BabuM Sd/- ICAI FirmRegistrationNumber:016016S Chartered Accountants for PCN&Associates As perourreportofevendateattached The accompanyingnotesareanintegralpartoftheconsolidatedfinancial statements. Date: 30May2019 Place: Hyderabad Membership No.:227849 Partner Total comprehensiveincomeattributabletoownersoftheParent Total comprehensiveincomeattributabletononcontrollinginterest Total comprehensiveincomefortheyearbeforenoncontrollinginterest Summary ofsignificantaccountingpolicies Other comprehensiveincomeattributabletoownersoftheParent Other comprehensiveincomeattributabletononcontrollinginterest Income-tax effect Deferred tax Diluted Profit/(Loss) attributabletoownersoftheParent Earnings perequityshare(nominalvalueofINR2)in Other comprehensiveincomebeforenon-controllinginterest Total Re-measurement gains/(losses)ondefinedbenefitplan Items thatwillnotbereclassifiedtoprofitorloss: Other comprehensiveincome Profit/(Loss) attributabletononcontrollinginterest interest Profit/(Loss) fortheyearbeforenon-controlling Total taxexpense Current tax Tax expenses Profit beforetax Total expense Depreciation andamortisationexpense Other operatingexpenses Employee benefitsexpense Changes ininventoriesandworkprogress Cost ofmaterialsconsumed Expenses Total income Other income Revenue fromoperations Income Particulars for theyearended31stMarch2019 Consolidated StatementofProfitandLoss Finance costs Other expenses Basic (All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated) Santosh Varalwar Sd/- CIN: L02411KA1988PLC009465 Vivimed Labs Limited for andon behalfoftheBoardDirectors DIN: 02029812 Whole -Time DirectorcumCFO S Raghunandan Sd/- DIN: 00054763 Managing Director

Note 33 33 33 30 29 28 27 26 25 24 31 32 41 3 ended 31March

For theyear 12,720.86 13,381.31 13,151.70 2,580.96 2,417.60 5,619.12 1,197.78 (435.13) 573.65 575.74 575.74 660.45 573.65 667.90 229.61 672.62 Manohar RaoVaralwar Sd/- Sd/- M. No.ACS19315 Company Secretary Yugandhar Kopparthi DIN: 00059815 Whole -TimeDirector (1.03) 86.80 78.03 2.08 2019 2.08 8.77 6.67 2.08 3.11 6.95

- - - 31 March2018

For theyear 11,095.59 11,952.70

11,856.60

2,093.35 1,977.77 4,898.03 (101.29) 760.90 (25.58) 772.86 754.33 121.79 857.11 779.43 564.20 794.83 868.70 ended (6.57) (6.57) (6.57) (9.81) 96.21 18.53 18.53 96.10 3.24 9.11 9.22

-

151 Annual Report 2018-19 152 VIVIMED LABS LIMITED Chandra BabuM Sd/- ICAI FirmRegistrationNumber:016016S Chartered Accountants for PCN&Associates As perourreportofevendateattached The accompanyingnotesareanintegralpartoftheconsolidatedfinancial statements. Date: 30May2019 Place: Hyderabad Membership No.:227849 Partner Income taxespaid Net increaseincashandequivalents(I+II+III) Trade payables Adjustment for(increase)/decreaseinoperatingassets Changes inworkingcapital: Cash andcashequivalentsattheendofyear Adjustments toreconcileprofitbeforetaxnetcashflows: Profit beforetax I. Cashflowsfromoperatingactivities Particulars for theyerarended31March2019 Consolidated StatementofCashFlows Cash andcashequivalentsatthebeginningofyear Cash onhand Cash andcashequivalentscomprise: Note: II. Cashflowsfrominvestingactivities Net cashprovidedbyfinancingactivities - incurrentaccounts Balances withbanks: III. Cashflowsfromfinancingactivities Summary ofsignificantaccountingpolicies 3 Cash generatedfromoperations Provisions Finance costs(includingfairvaluechangeinfinancialinstruments) Net cashgeneratedfrom/(usedin)operatingactivities Other liabilities Other financialliabilities Adjustment for(increase)/decreaseinoperatingliabilities Other assets Loans -current Inventories Trade receivables Operating profitbeforeworkingcapitalchanges Amoritsation ofintangibleassets Depreciation oftangibleassets Investments madeduringtheyear and intangibles(includingcapitalworkinprogress),net Proceeds fromsale/(Purchaseof)property,plantandequipment Interest paid Net cashusedininvestingactivities Dividend paid & CapitalReduction ofsubsidiaries Share issueproceeds Proceeds from/(repaymentof)short-termborrowings,net Proceeds from/(repaymentof)long-termborrowings,net (All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated) (refer notebelow) Santosh Varalwar Sd/- CIN: L02411KA1988PLC009465 Vivimed Labs Limited for andon behalfoftheBoardDirectors DIN: 02029812 Whole -Time DirectorcumCFO S Raghunandan Sd/- DIN: 00054763 Managing Director

For theyearended 31 March2019 (3,377.95) (3,172.77) 4,371.26 4,221.38 2,000.97 1,287.46 (149.88) (235.20) (806.80) (890.61) (672.62) (888.72) (528.60)

(45.29) 945.04 945.04 223.78 870.18 924.30 672.62 990.33 264.19 403.71 660.45 941.62 996.04 16.30 90.26 3.42 1.89 Manohar RaoVaralwar Sd/- Sd/- M. No.ACS19315 Company Secretary Yugandhar Kopparthi DIN: 00059815 Whole -TimeDirector -

For theyearended 31 March2018 (1,635.37) (1,635.27) (1,281.14)

1,856.63 2,216.14

3,935.17 (420.57) (617.82) (224.70) (561.98) (752.88) (794.83) (39.47) 634.78 990.33 214.21 990.33 234.01 435.58 220.49 794.83 554.73 515.15 857.11 987.53 49.71 71.81 49.05 36.90 2.80 0.10

Consolidated Statement of Changes in Equity for the yerar ended 31 March 2019 (All amounts in Indian Rupees millions, except share data and where otherwise stated) A. Equity Share Capital Particulars No. of shares Amount Balance as at April 1, 2017 8,10,18,915 162.04 Changes in equity share capital during the year 15,05,000 3.01 Balance as at March 31, 2018 8,25,23,915 165.05 Changes in equity share capital during the year - - Balance as at March 31, 2019 8,25,23,915 165.05 B. Instruments entirely equity in nature Particulars No. of shares Amount Compulsorily convertible preference shares Balance as at April 1, 2018 50,00,000 3,252.21 Add: NIL - - Balance as at March 31, 2019 50,00,000 3,252.21 C. Other equity Reserves and Surplus Total equity attri- Non-con- Particulars Securities Capital General Revaluation Foreign curren- Retained butable to the owners trolling Total premium reserve reserve reserve cy adjustment earnings of the Company interest At April 1, 2017 1,766.60 8.57 141.16 380.00 (449.91) 5,333.64 7,180.06 - 7,180.06 Profit for the year 779.43 779.43 (18.53) 760.90 Additions during the year 538.62 384.83 - 923.45 141.34 1,064.79 Dividend paid during the year (including (39.47) (39.47) (39.47) tax on dividend) Other comprehensive income Re-measurement gains/ (losses) on - - - 3.24 3.24 - 3.24 defined benefit plans, net of tax At March 31, 2018 2,305.22 8.57 141.16 380.00 (65.08) 6,076.84 8,846.71 122.81 8,969.52 Profit for the year 573.65 573.65 - 573.65 Additions during the year - (91.22) - (91.22) - (91.22) Ind AS Adjustment (11.85) (11.85) Dividend paid & capital reduction of (3,295.58) (3,295.58) - (3,295.58) subsidiaries Other comprehensive income Re-measurement gains/(losses) on - - - (1.03) (1.03) - (1.03) defined benefit plans, net of tax Balance as of 31 March 2019 2,305.22 8.57 141.16 380.00 (156.30) 3,342.04 6,020.69 - 6,155.35

The accompanying notes are an integral part of the consolidated financial statements. As per our report of even date attached for P C N & Associates for and on behalf of the Board of Directors of Chartered Accountants Vivimed Labs Limited ICAI Firm Registration Number: 016016S CIN: L02411KA1988PLC009465

Sd/- Sd/- Sd/- Chandra Babu M Santosh Varalwar Manohar Rao Varalwar Partner Managing Director Whole -Time Director Membership No.: 227849 DIN: 00054763 DIN: 00059815

Sd/- Sd/- Raghunandan S Yugandhar Kopparthi Place: Hyderabad Whole -Time Director cum CFO Company Secretary Date: 30 May 2019 DIN: 02029812 M. No. ACS19315

153 Annual Report 2018-19 154 VIVIMED LABS LIMITED 2.1 2 1 forming partoftheConsolidated financial statements Notes Vivimed Holdings Limited Limited Vivimed Specialty ChemicalsPrivate Finoso PharmaPrivateLimited Name ofinvestee Vivimed Labs USAINC. Vivimed Labs EuropeLimited UQUIFA IndiaPrivateLimited Vivimed Labs MauritiusLimited Vivimed Labs UKLimited Holliday InternationalLimited Union QuimicoFarmaceuticaS.A.U Vivimed Labs SpainS.L. Soneas ChemicalsLtd Vivimed Labs (Mascarene)Ltd Uquifa MexicoS.A.deC.V. Soneas ResearchLtd (Ind AS) aspertheCompanies(IndianAccounting accordance withIndianAccountingStandards The financialstatementshavebeenpreparedin Statement ofCompliance Basis ofpreparationfinancialstatements (NSE) and the BombayStockExchange(BSE). Company is listed in the National Stock Exchange Retail Branded Formulation manufacturing.The Dosage Formulation,SpecialtyChemicalsand Pharmaceuticals Ingredients,CDMOFinished is primarily engaged in the Business of Active its registeredofficeatBidar,India.TheCompany Limited Company incorporated in India, having Vivimed Labs Limited (‘the Company’) is a Public General Information

Subsidiary Subsidiary Subsidiary Relationship Subsidiary Step down Subsidiary Step down Subsidiary Subsidiary Step down Subsidiary Step down Subsidiary Step down Subsidiary Step down Subsidiary Step down Subsidiary Step down Subsidiary Step down Subsidiary Step down Subsidiary 2.2 provisions oftheAct. of Companies Act 2013 (the ‘Act’) and other relevant Standards) Rules 2015 notified under Section 133 listed in thetablebelow: includes subsidiariesandstepdown The consolidatedfinancialstatementsoftheGroup Group information Directors onMay30,2019. authorised forissuebytheCompany’sBoardof date, 31 March 2019. The financial statements were are effective at the Company’s annual reporting relevant IndianAccountingStandards(IndAS)that for theCompanyasgoingconcernonbasisof These financialstatementshavebeenprepared incorporation Countryof Mauritius Mauritius Hungary Hungary Mexico Spain Spain India India India USA HK UK UK UK ownership/ votingrights 31/Mar/19 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Percentageof 31/Mar/18 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% - - 2.3 forming partoftheConsolidated financial statements Notes 2.4 The financialstatementsare presented inIndian (iii) The consolidated financial statements of the (ii) (i) Basis ofconsolidation Functional andpresentation currency

the policiesadopted by theParentCompany. been harmonised to ensure the consistency with The accountingpoliciesofsubsidiarieshave transactions areeliminatedonconsolidation. and unrealisedprofits/lossesonintra-Group Group assets,liabilities,income,expenses liabilities, incomeand expenses. Allintra- by adding togetherthelikeitemsofassets, Parent Companyanditssubsidiaryline-by-line Group combinesfinancialstatementsofthe to controlthesubsidiary. Parent Company,directlyorindirectly,ceases indirectly, gainscontroluntilthedatewhen from thedateParentCompany,directlyor the consolidatedStatementofProfitandLoss or disposed off during the year are included in Income and expenses of a subsidiary acquired or indirectly, loses control of thesubsidiary. ceases whentheParentCompany,directly obtains controloverthesubsidiaryand the ParentCompany,directlyorindirectly, Consolidation ofasubsidiarybeginswhen the abilitytouseitspoweraffectreturns. from itsinvolvementwiththeinvesteeandhas the investee,isexposedtovariablereturns Company, directly or indirectly, has power over the Group. Control existswhentheParent together withitssubsidiariesconstitute is treated as subsidiary.TheParentCompany indirectly, controlled by the Parent Company this purpose,anentitywhichis,directlyor Parent Companyanditssubsidiaries.For incorporate the financial statements of the The consolidated financial statements standalone financialstatements. the samemannerasParentCompany’s been presented to the extent possible, in The consolidated financial statements have

2.5 Assets: 2.6 which theentityoperates. currency oftheprimaryeconomicenvironmentin the Group.Functionalcurrencyofanentityis rupees millions,whichisthefunctionalcurrencyof d) • • • statement offinancialposition: basis, except for the following material items in the the historical cost convention and on an accrual These financialstatementshavebeenpreparedon Basis ofmeasurement share data,unlessotherwisestated. All amounts are in Indian Rupee millions except c) b) a) of thefollowingcriteria: An assetisclassifiedascurrentwhenitsatisfiesany Schedule IIItotheCompaniesAct,2013. operating cycle and other criteria set out in the current ornon-currentaspertheGroup’snormal All theassetsandliabilitieshavebeenclassifiedas Operating cycle

settle aliability for atleasttwelvemonthsafter restricted from beingexchangedorused to it is cash or cash equivalent unless it is method. amortized costusingtheeffectiveinterestrate long term borrowings are measured at benefit obligation; gains and the present valueofthedefined plan assets,plusactuariallosses,less recognized asthenettotaloffairvalue employee defined benefit assets/(liability) are measured atfairvalue; certain financialassetsand liabilities are traded; it isheldprimarilyforthepurposeofbeing months afterthereportingdate; or it isexpected to berealized within twelve operating cycle; for saleorconsumptionin,theGroup’snormal it isexpectedtoberealized in, orisintended

155 Annual Report 2018-19 156 VIVIMED LABS LIMITED forming partoftheConsolidated financial statements Notes 2.7 uncertainty andcriticaljudgements thatthe The following are the areas of estimation revision affectsbothcurrent and futureperiods. period oftherevisionandfuture periodsifthe the revision affects only that period, or in the the periodinwhichestimateisrevisedif to accounting estimates are recognised in are reviewed on an ongoing basis. Revisions The estimatesand underlying assumptions Actual resultsmaydifferfromtheseestimates. other factors that are considered to be relevant. assumptions arebasedonhistoricalexperienceand from other sources. The estimates and associated assets and liabilities that are not readily apparent and assumptions aboutthecarryingamountsof Group are required to make judgements, estimates which are described in note 3, the management of the In theapplication oftheGroup’saccountingpolicies, d) c) b) a) Liabilities: of estimationuncertainty Critical accountingjudgements and key sources

the reportingdate. instruments donotaffectitsclassification. in its settlement by the issue of equity the optionofcounterparty,result date. Terms of a liability that could, at at leasttwelvemonthsafterthereporting right to defer settlement of the liability for the Groupdoesnothaveanunconditional after thereportingdate;or itisduetobesettled within twelvemonths traded; it isheldprimarilyforthepurposeofbeing classified asnon-current. respectively. All other assets/ liabilities are portion of non-current assets/ liabilities Current assets/liabilitiesincludethecurrent normal operatingcycle; it is expected to be settled in the Group’s satisfies anyofthefollowingcriteria: A liabilityisclassified as currentwhenit

2.8 in thefinancialstatements: most significanteffectontheamountsrecognised the Group’saccountingpoliciesandthathave management hasmadeintheprocessofapplying – – – valuation techniques asfollows: fair valuehierarchybasedontheinputs usedinthe Fair valuesarecategorisedintodifferentlevelsina liabilities. for bothfinancialandnon-financialassets disclosures requirethemeasurementoffairvalues, A number of the Group’s accounting policies and Measurement offairvalues useful livesascompared to previousyear. Group. Further, there is no significant change in the represent the expected utility of the assets to the management assessedthattheusefullives assets at each reporting. As at March 31, 2019 Management reviewstheusefullivesofdepreciable Useful livesofdepreciableassets received or receivable. contingency hasbeenresolved and amounts are Gain contingencies are not recognized until the are notdisclosedinthefinancialstatements. Contingencies thelikelihoodofwhichisremote Contingent liabilitiesinthefinancialstatements. possible are not provided for but disclosed as statements. Loss Contingencies that are considered estimated lossisrecordedasanaccrualinfinancial contingent losses that are considered probable, an claims bythirdpartiesandothercontingencies.For On anongoingbasis,Group reviews pendingcases, Provision andcontingentliability

(unobservable inputs). are notbasedonobservablemarket data Level 3:inputsfortheassetorliability that or indirectly(i.e.derivedfromprices). asset orliability,eitherdirectly (i.e.asprices) included in Level1thatareobservableforthe Level 2:inputsotherthanquoted prices markets foridenticalassetsorliabilities. Level 1:quoted prices(unadjusted)inactive 3.1 3 forming partoftheConsolidated financial statements Notes •

• • • or services. expects toreceiveinexchangeofthoseproducts that reflect the consideration which the Company products orservicestocustomerinanamount Revenue is recognised upon transfer of promised statements oftheCompanyisinsignificant. adoption ofthestandard on thefinancial period during whichthechangehasoccurred. the fairvaluehierarchyatendofreporting The Grouprecognisestransfersbetweenlevelsof replaces IndAS18Revenue.Theimpactofthe and when revenueistoberecognised. Ind AS 115 framework fordeterminingwhether,howmuch Customers which establishes acomprehensive Ind AS115:RevenuefromContractswith “Effective April 1, 2018, the Company has applied Revenue recognition Significant accountingpolicies input thatissignificanttotheentiremeasurement. level ofthefair value hierarchy as the lowest level measurement iscategorised in itsentiretythesame levels ofthefairvaluehierarchy,then fair valueofanassetoraliabilityfallintodifferent far aspossible.Iftheinputs usedtomeasurethe liability, theGroup uses observablemarketdataas When measuringthefairvalueofanassetora

Dividend income isaccounted for when the collection oftherelevantexport proceeds significant uncertaintyregarding theultimate of the exports made and where there is no terms oftheschemeisestablishedinrespect when the right to receive credit as per the Export incentives are recognised as income duty. Revenue from the sale of goods includes excise the goodssold are transferred. significant risksand rewards ofownership of rebates andVAT/GSTarerecognisedwhenall into accounttheamountofdiscounts,volume consideration received or receivabletaking Revenue ismeasured at thefairvalueof

3.2 Leases If the Group concludes for a finance lease that it the basisoftheirrelativefairvalues. those for the lease and those for other elements on consideration requiredbythe arrangementinto a lease, the Group separates a payments and other on reassessmentofanarrangementthatcontains arrangement is or containsalease.At inception or the Group determines whether the above Further, attheinceptionofabovearrangement, the lessor’s expected inflationary cost increases. the expectedgeneralinflationtocompensatefor payments arestructuredtoincreaseinlinewith line basisoverthetermofleaseunlesssuch statement ofprofitandlossonastraight- generally recognisedasanexpenseinthe Lease paymentsunderoperatingleaseare ownership are not recognized in the balance sheet. not transfersubstantiallyalltherisksand reward of whichever islower.Assetsheldunderleasesthatdo lease paymentsat the inception ofthelease, value oftheassetorpresentminimum as finance leases. Such assets are capitalized at fair all the risks and rewards of ownership are classified Leases underwhichtheGroup assumes substantially All otherleasesareclassifiedasoperatingleases. the risksand rewards ofownershiptothelessee. the termsofleasetransfersubstantiallyall Leases areclassifiedasfinanceleaseswhenever • •

dividend. is generally when shareholders approve the right to receive the income is established, which amount oninitialrecognition. the financial asset tothatasset’s net carrying ture cash receipts through the expected life of the rate that exactly discounts estimated fu the effectiveinterestrateapplicable, whichis reference totheprincipaloutstandingand at Interest incomeisaccruedon,timebasis,by trade dateoftransaction. loss onsale/redemptioninvestment value ofinvestmentisrecognisedasprofitor Difference betweenthesalepriceandcarrying -

157 Annual Report 2018-19 158 VIVIMED LABS LIMITED forming partoftheConsolidated financial statements Notes 3.4 3.3 is the Interestcost. to theextenttheyareregarded asanadjustmentto difference arisingfromforeign currency borrowings connection with borrowing of funds and exchange amortization ofdiscounts,ancillary costsincurred in Borrowing cost includes interest expense, incremental borrowingrate. on theliabilityisrecognisedusingGroup’s payments aremadeandanimputed finance cost asset; subsequently,theliabilityisreduced as amount equal to the fair value of the underlying then anassetandaliabilityarerecognisedat expense intheperiodwhichtheyareincurred. All otherborrowingcostsarerecognised as an period of time to get ready for its intended use. asset isanthatnecessarilytakesasubstantial and borrowing costsarebeingincurred. A qualifying till suchtimetheassetisreadyforitsintendeduse asset are capitalized as part of the cost of such asset acquisition, constructionorproductionofaqualifying Specific borrowing costs that are attributable to the Borrowing costs in theperiodwhichtheyarise. on monetaryitemsarerecognised in profitorloss currency are not retranslated. Exchange differences are measuredintermsofhistoricalcostaforeign prevailing atthatdate.Non-monetaryitems in foreigncurrenciesareretranslated at therates reporting period, monetary items denominated at the dates of the transactions. At the end of each are recognised at theratesof exchange prevailing Group’s functionalcurrency(foreigncurrencies) Group, transactions in currencies other than the In preparingthefinancialstatementsof Foreign currencies liability. rate of interest on the remaining balance of the the leasetermsoastoproduceaconstantperiodic finance charge is allocated to each period during and the reduction of the outstanding liability. The leases areapportionedbetweenthefinancecharge Minimum leasepaymentsmadeunderfinance impracticable toseparatethepaymentsreliably,

3.5 Taxation assets and liabilities will be realized simultaneously. liabilities and assets on a net basis or their tax tax entities,buttheyintendtosettlecurrent authority onthesametaxableentity,ordifferent they relatetoincometaxeslevied by thesametax right tooffsetcurrenttaxliabilitiesandassets, liabilities are offset if there is a legally enforceable by thereportingdate.Deferredtaxassetsand that havebeenenactedorsubstantively differences whentheyreverse,basedonthelaws that are expected to be applied to the temporary goodwill. Deferred tax is measured at the tax rates differences arisingupontheinitialrecognitionof in theforeseeablefuture;andtaxabletemporary extent that it is probable that they will not reverse subsidiaries andjointlycontrolledentitiestothe taxable profit;differencesrelatingtoinvestmentsin combination and that affects neither accounting nor liabilities inatransactionthatisnotbusiness differences: theinitialrecognitionofassetsor tax isnotrecognized for thefollowingtemporary amounts usedfortaxationpurposes.Deferred liabilities for financial reporting purposes and the between thecarryingamountsofassetsand method, providingfortemporarydifferences Deferred taxisrecognizedusingthebalancesheet can beutilized. Deferredtaxassetsare available against which the temporary difference that itisprobablefuturetaxable profitswillbe A deferredtaxassetisrecognized totheextent Deferred tax previous years. and anyadjustmenttotaxpayableinrespectof or substantivelyenacted at thereportingdate, taxable incomefortheyear,usingtaxratesenacted Current tax is the expected tax payable on the Current tax which caseitisrecognizedinequity. it relatestoitemsrecognizeddirectlyinequity, in theincomestatementexcepttoextentthat deferred tax.Incometaxexpenseisrecognized Income taxexpenseconsistsofcurrentand

3.7 forming partoftheConsolidated financial statements Notes 3.6 in the period in which the costs are incurred. are chargedtotheStatementofProfitandLoss into operation,suchasrepairsandmaintenance, Expenditure incurred after the PPE have been put and accumulated impairment losses,ifany. decommissioning, lessaccumulateddepreciation borrowing costsandanyexpectedof location foritsintendeduse,includingrelevant of bringinganassettoworkingconditionand purchase taxes,andanydirectlyattributable costs price, including importdutiesandnon-refundable The initial cost of PPE comprises its purchase related tax benefitwillberealized. to theextentthatitisnolongerprobable reviewed at eachreportingdateand are reduced Material itemssuchasspare parts,stand-by separate items (major components) of PPE. useful lives, then they are accounted for as If significant parts of an item of PPE have different decrease thenetprofitpershare. only iftheirconversiontoequityshareswould Potential equitysharesaredeemedtobedilutive conversion of all dilutive potential equity shares. equity shareswhichcould have beenissued on the per shareand the weighted average numberof shares consideredforderivingbasicearnings shares, bytheweighted average numberofequity for theyearrelatingtodilutivepotentialequity the netprofitattributable toequityshareholders Diluted earningspershareiscomputed bydividing impairment. Freehold land is notdepreciated. less accumulateddepreciationand or administrativepurposes arestated at cost in the production or supply of goods or services, Freehold land and buildings(property)held for use Property plantandequipment of equitysharesoutstandingduring theyear. for theperiodbyweightedaveragenumber the netprofitattributabletoequityshareholders basic earningspershareiscomputedbydividing per share(“EPS”)dataforitsordinaryshares.The The Group presents basic and diluted earnings Earnings pershare

3.10 3.9 Depreciation 3.8 in IndAS16–Property,PlantandEquipment. PPE when they meet the definition of PPE as specified equipment and service equipment are classified as are availablefor use. lives on a straight-line basis, from the date that they amortized over their respective estimated useful amortization and impairment. Intangible assets are Intangible assets are stated at cost less accumulated Intangible assetsandamortisation disposal. on apro-ratabasisuptothedateofdeduction/ Depreciation ondeductions/disposalsisprovided of commencement of commercial production. acquisition andincaseofProjectsfromthedate rata basis from the month of installation or Depreciation on additions is provided on a pro- useful livesasprescribedinSchedule IItotheAct. The Group depreciates its fixed assets over the separately assessedthelifeofmajorcomponents. The GrouphascomponentiseditsPPEand from theassetbyGroup. production orsimilarunitsexpectedtobeobtained available for use by the Group, or the number of is theperiodoverwhichPPEexpectedtobe its estimated residual value. The useful life of PPE Depreciable amount for PPE is the cost of PPE less technical assessment. lives as prescribed in Schedule II to the Act or as per is providedonastraight-linebasisovertheuseful depreciable amountofPPEoveritsusefullifeand Depreciation is the systematic allocation of the under “Othernon-currentAssets”. reporting date are disclosed as Capital Advances quisition orconstructionofPPEoutstandingateach of their construction. Advances given towards ac allocated to therespectivePPEoncompletion ed under CapitalWork-in-Progress,and the sameis struction or acquisition of qualifying PPE) is includ financing costrelatedtoborrowedfundsforcon Expenditure during constructionperiod (including Expenditure duringconstructionperiod - - -

159 Annual Report 2018-19 160 VIVIMED LABS LIMITED 3.13 3.11 Inventories Amortization forming partoftheConsolidated financial statements Notes 3.12 Cash flowsarereportedusing the indirectmethod, Cash flowstatement short-term cashcommitments. es invalueandareheldforthepurposeofmeeting • • follows: present locationand condition areaccounted for as value. Costsincurredinbringingeachproduct toits on “Weightedaverage”basisandnetrealisable “Inventories arevaluedatlowerofcost,determined asset. to obtaintheexpectedfuturecashflowsfrom the levelofmaintenanceexpendituresrequired industry andknowntechnologicaladvances) other economicfactors(suchasthestabilityof effects ofobsolescence,demand,competitionand asset is based on a number of factors including the The estimated useful lifeof an identifiable intangible cash which are subject to insignificant risk of chang deposits withbanksthatarereadilyconvertibleinto comprise cash at bank and in hand and short-term Cash and cash equivalents in the Balance Sheet Cash andcashequivalents

present locationand condition. incurred in bringing the inventories to their materials, cost of conversion and other costs Finished goods and WIP includescostofraw Valued atlowerofcostandNRV.Cost stock-in-trade: Work-in- progress(WIP),finishedgoodsand FIFO basis. sold atorabovecost.Costisdeterminedon in which they will be used, are expected to be be realisable at cost, if the finished products, (NRV). However, these itemsareconsidered to Valued at lower of cost and net realisable value packing materials: Raw materials,fuel,stores&sparepartsand

- grants 3.14 Government 3.15 part ofanentity’scashmanagement. cash andequivalent, astheyformanintegral segregated. Bankoverdraftsareclassifiedaspartof investing andfinancingactivitiesoftheGroupare or payments.Thecashflowsfromoperating, deferrals oraccrualsofpastfuturecashreceipts effects oftransactionsanon-cashnatureandany whereby netprofitbeforetaxisadjustedforthe the asset’srecoverableamountisestimated. impairment. Ifanysuchindicationexists,then determine whetherthereisanyindicationof assets are reviewed at each reporting date to financial assets, inventories and deferred tax The carryingamountsoftheGroup’snon- no longerexists.Animpairment lossisreversedif for anyindicationsthattheloss hasdecreasedor prior periodsareassessedat each reportingdate carrying amount. Impairment losses recognized in an assetoritscash-generating unit islowerthanits statement if the estimated recoverable amount of An impairment loss is recognized in the income or groups of assets (the “cash-generating unit”). independent ofthecashinflowsotherassets cash inflowsfromcontinuingusethatarelargely into the smallest group of assets that generates impairment testing,assetsaregroupedtogether the cash-generating unit. For the purpose of of money and the risks specific to the asset or current marketassessmentsofthetimevalue value using a pre-tax discount rate thatreflects future cashflowsarediscountedtotheirpresent to sell. In assessing value in use, the estimated of itsvalueinuseandfairlesscosts generating unit(as defined below) is the greater The recoverableamountofanassetorcash- and allattachedconditionswillbecompliedwith. reasonable assurancethatthegrantwillbereceived Government grantsarerecognisedwherethereis Impairment ofnonfinancialassets over theexpectedusefullifeofasset. and recognisedinthestatementofprofitloss the asset and the grant are accounted at fair value Where the Group receives non-monetary grants,

forming partoftheConsolidated financial statements Notes benefits 3.16 Employee discounting theestimatedfuture cashoutflows of the defined benefit obligation is determined by the adviceof qualified actuaries. Thepresent value the projectedunitcreditmethod consistentwith other post-employment benefits is calculated using The liabilityinrespect of defined benefit plans and associate maybeimpaired. is objectiveevidencethattheinvestmentinan tested for impairmentasasingleassetwhenthere entire amount of the investment in an associate is tested forimpairmentseparately.Instead,the is not recognized separately, and thereforeisnot carrying amountofaninvestmentinassociate had beenrecognized.Goodwillthatformspartofthe depreciation oramortization,ifnoimpairmentloss amount thatwouldhavebeendetermined,netof carrying amountdoesnotexceedthe loss is reversed only to the extent that the asset’s determine therecoverableamount.Animpairment there hasbeenachangeintheestimatesusedto under adefinedcontributionplan. ed with the Regional Provident Fund Commissioner employee. period during whichservicesarerendered by the on the basis of the amount paid or payable for the ee costssuchassalaries,bonusetc.isrecognized Defined benefitplans contributions towardsProvidentFundaredeposit the statementofprofitand loss. TheCompany’s employee stateinsuranceschemesischargedto The Company’scontributiontoprovidentfund and Defined contributionplans Short-term employeebenefitscompriseofemploy Short-term employee benefits determine therecoverableamount. favourable changeintheestimatesusedto statement, andreversediftherehasbeena An impairmentlossisrecognizedintheincome amount of investment with its carrying amount. investee ismeasured by comparingtherecoverable An impairment loss in respect of equity accounted

- -

in whichtheyarise. equity inothercomprehensiveincometheperiod in actuarial assumptions are charged or credited to arising fromexperienceadjustmentsand changes in theincomestatement.Actuarialgainsandlosses This cost is included in employee benefit expense benefit obligationandthefairvalueofplanassets. discount ratetothenet balance ofthedefined The netinterestcostiscalculatedbyapplying the service costs are recognized immediately in income. benefit changes, curtailments and settlements. Past resulting from employee service in the current year, reflects theincreaseindefinedbenefitobligation income statementinemployeebenefitexpense, cost ofthedefinedbenefitplan,recognizedin on governmentbondsareused. The currentservice is nodeepmarketinsuchbonds,therates defined benefitobligation.Incountrieswherethere maturity approximating to the terms of the related the benefits will be paid, and that have terms to that aredenominatedinthecurrencywhich using interest rates of high-quality corporate bonds they arise. statement ofprofitand loss inthe period in which value. Re-measurementsare recognized inthe That benefitisdiscountedtodetermine itspresent their serviceinthecurrentand previous periods. benefit thatemployeeshaveearned in returnfor term employeebenefitsistheamountoffuture The Group’s net obligation in respect of other long Other long-termemployee benefits number ofacceptancescanbeestimatedreliably. it is probable that the offer will be accepted, and the made anofferencouragingvoluntaryredundancy, are recognized as anexpenseiftheGroup has Termination benefitsforvoluntaryredundancies offer madetoencouragevoluntaryredundancy. or toprovideterminationbenefitsasaresultofan employment before the normal retirement date, a formal detailed plan to either terminate without realistic possibility of withdrawal, to when theGroupisdemonstrablycommitted, Termination benefitsarerecognizedasanexpense Termination benefits

161 Annual Report 2018-19 162 VIVIMED LABS LIMITED a. instruments 3.19 Financial 3.18 3.17 forming partoftheConsolidated financial statements Notes are addedtothefairvalueon initialrecognition. that are notatfairvalue through profitor loss, or issuesoffinancialassetsand financialliabilities costs thataredirectlyattributabletotheacquisition initially measuredattransactionprice.Transaction recognition, exceptfortradereceivableswhichare and liabilitiesarerecognizedatfairvalueoninitial provisions oftheinstrument.Allfinancialassets liabilities whenitbecomesapartytothecontractual The Grouprecognizesfinancialassetsand value throughprofit andloss(FVTPL),transaction measured at fair value plus, for an item not at fair A financial asset or financial liability is initially Recognition andInitialrecognition period in whichthechangeoccurs. asset andrelatedincomearerecognisedinthe that aninflowofeconomicbenefitswillarise,the are assessedcontinuallyandifitisvirtuallycertain financial statements. However, contingent assets Contingent assetsarenotrecognised in the provision ordisclosureismade. likelihood ofoutflowresourcesisremote,no or apresentobligationinrespectofwhichthe of resources.Wherethereisapossibleobligation that may,but probablywillnot,requireanoutflow there isapossibleobligationorpresent A disclosure for a contingent liability is made when &contingentassets Contingent liabilities cost. to thepassageoftimeisrecognizedasafinance counting isused,theincreaseinprovisiondue and therisksspecifictoliability.Wheredis market assessmentsofthetimevaluemoney cash flowsatapre-taxratethatreflectscurrent are determined by discountingtheexpectedfuture of thetimevaluemoneyismaterial,provisions will berequiredtosettletheobligation.Ifeffect it isprobablethatanoutflowofeconomicbenefits tive obligationthatcanbeestimatedreliably,and event, theGrouphasapresentlegalorconstruc A provisionisrecognizedif,asaresultofpast Provisions (otherthanforemployee benefits)

- -

b. ClassificationandSubsequentmeasurement or issue. costs thataredirectlyattributabletoitsacquisition –

– – – – as measuredat On initial recognition, a financial asset is classified Financial assets:

the stated policies and objectives for the includes: management. The information considered is managed and informationisprovided to because thisbestreflectstheway thebusiness a financialassetisheld at aportfoliolevel objective ofthebusinessmodelinwhich The Group makes an assessment of the Financial assets:Businessmodelassessment mismatch that would otherwise arise. or significantlyreduces anaccounting cost at FVTPL if doing so eliminates requirements to be measured at amortised financial asset that otherwise meets the the Groupmayirrevocablydesignatea measured atFVTPL.Oninitialrecognition, at amortisedcostasdescribedaboveare All financialassetsnotclassifiedasmeasured on theprincipalamountoutstanding. are solelypaymentsof principal and interest give rise on specified dates to cash flows that the contractualtermsoffinancialasset contractual cashflows;and whose objective is to hold assets to collect the asset is held within a business model is notdesignatedasatFVTPL: if itmeetsbothofthefollowingconditionsand A financialassetismeasured at amortised cost for managingfinancialassets. period the Group changes its business model to theirinitialrecognition,exceptifandinthe Financial assetsarenotreclassified subsequent FVTPL amortised cost;

forming partoftheConsolidated financial statements Notes

administrative costs),aswell as aprofitmargin. basic lendingrisksandcosts(e.g. liquidityriskand during a particular period of time and for other associated withtheprincipalamount outstanding for the time value of money and for the credit risk recognition. ‘Interest’isdefined as consideration defined as the fair value of the financial asset on initial For thepurposesofthisassessment,‘principal’is – – – – – interest cash flows are solely payments of principal and Financial assets: Assessment whether contractual on afairvaluebasisaremeasuredatFVTPL. managed and whose performance is evaluated Financial assetsthatareheldfortradingor with the Group’s continuing recognition of the assets. are notconsidered sales forthispurpose,consistent transactions thatdonotqualify forderecognition Transfers of financial assets to third parties in flows throughthesaleofassets; or expectedcashoutflowsrealising assets tothedurationofanyrelated liabilities profile, matchingtheduration of the financial income, maintainingaparticularinterestrate strategy focuses onearningcontractualinterest practice. These include whether management’s portfolio and the operation of those policies in sales activity. for suchsalesandexpectationsaboutfuture financial assetsinpriorperiods,thereasons the frequency,volumeand timing ofsales cash flowscollected;and value of the assets managed or the contractual e.g. whethercompensationisbasedonthefair compensated how managers of the business are risks aremanaged; within that business model) and how those business model (and the financial assets held the risksthataffectperformanceof management; evaluated andreportedtotheGroup’s how theperformanceofportfoliois

the effectiveinterestmethod. The amortised cost subsequently measured at amortised cost using Financial assetsatamortisedcost: Theseassetsare assessment, theGroup considers: that itwould not meetthiscondition.Inmaking timing or amountof contractual cash flows such contains a contractual term that could change the This includes assessing whether the financial asset considers thecontractualtermsofinstrument. solely payments ofprincipaland interest, theGroup In assessingwhetherthecontractualcashflowsare – – – – are recognisedinprofitorloss. losses, includinganyinterestor dividendincome, subsequently measured at fairvalue.Netgainsand Financial assetsatFVTPL:Theseare gains andlosses Financial assets:Subsequentmeasurementand initial recognition. value oftheprepaymentfeatureisinsignificantat treated as consistent with this criterion if the fair additional compensationforearlytermination)is interest (which may also include reasonable amount plus accrued (but unpaid) contractual that substantially represents the contractual par that permitsorrequiresprepaymentatanamount premium to its contractual par amount, a feature financial asset acquired at a significant discount or termination ofthecontract.Additionally,fora reasonable additional compensationforearly principal amountoutstanding,whichmayinclude unpaid amounts of principal and interest on the prepayment amount substantially represents payments ofprincipalandinterestcriterionifthe A prepaymentfeatureisconsistentwiththesolely

features). flows fromspecifiedassets(e.g.non‑recourse terms that limit the Group’s claim to cash prepayment and extension features;and rate, includingvariableinterestratefeatures; terms thatmayadjustthecontractualcoupon amount ortimingofcashflows; contingent eventsthatwouldchangethe

163 Annual Report 2018-19 164 VIVIMED LABS LIMITED forming partoftheConsolidated financial statements Notes c. under the modified terms are substantially when itstermsaremodified and thecashflows The Group also derecognisesafinancialliability derecognition isrecognised in profitorloss. are recognisedinprofitorloss.Anygainlosson foreign exchange gains and losses and impairment is reduced by impairment losses. Interest income, or expire. contractual obligationsaredischarged orcancelled, The Group derecognises a financial liability when its Financial liabilities transferred assetsarenotderecognised. risks andrewardsofthetransferredassets, but retainseitherallorsubstantiallyofthe transfers assets recognised on its balance sheet, If theGroupentersintotransactionswherebyit financial asset. of ownership and does not retain control of the retains substantially all of the risks and rewards or inwhichtheGroupneithertransfersnor of ownershipthefinancialassetaretransferred in whichsubstantiallyalloftherisksand rewards receive thecontractualcashflowsinatransaction financial assetexpire,orittransferstherightsto the contractual rights to the cash flows from the The Group derecognises afinancial asset when Derecognition FinancialAssets also recognisedinprofitorloss. in profitorloss.Anygainlossonderecognitionis foreign exchangegainsandlossesarerecognised the effectiveinterestmethod.Interestexpenseand are subsequentlymeasuredatamortisedcostusing recognised in profitorloss.Otherfinancialliabilities and losses,includinganyinterestexpense,are FVTPL aremeasuredatfairvalueandnetgains such oninitialrecognition.Financialliabilitiesat trading, oritisaderivative designated as classified asatFVTPLifitisheld‑ amortised cost or FVTPL. A financial liability is Financial liabilities are classified as measured at measurement andgainslosses Classification,Subsequent Financial liabilities:

for‑ e. d. Offsetting liability withmodifiedtermsisrecognised in profit financial liability extinguished and the new financial The differencebetweenthecarryingamountof on the modified terms is recognised at fair value. different. Inthiscase,anewfinancialliabilitybased

– – – – includes thefollowingobservabledata: Evidence that afinancial asset is credit‑impaired have occurred. estimated future cash flows of the financial asset more events that have a detrimental impact on the A financialassetis‘credit‑impaired’whenoneor comprehensive income(FVOCI)arecreditimpaired. and debtsecuritiesatfairvaluethroughother whether financialassetscarriedatamortisedcost At eachreportingdate,theGroup assesses amortised cost; credit losses on financial assets measured at The Grouprecogniseslossallowancesforexpected Impairment simultaneously. basis or to realise the asset and settle the liability and it intends either to settle them on a net legally enforceable right to set off the amounts when and only when, the Group currently has a and thenetamountpresentedinbalancesheet Financial assetsandfinancialliabilitiesareoffset

12 monthexpectedcreditlosses: except forthefollowing,whichare measuredas amount equal to lifetime expected credit losses, The Group measures lossallowancesatan security becauseoffinancialdifficulties the disappearanceofanactivemarketfora or bankruptcy orotherfinancialreorganisation; it is probable that the borrower will enter consider otherwise; Group ontermsthatthewouldnot the restructuringofa loan or advance by the or issuer; significantfinancialdifficultyoftheborrower

forming partoftheConsolidated financial statements Notes

analysis, basedontheGroup’shistoricalexperience both quantitative and qualitative informationand available withoutunduecostoreffort.Thisincludes and supportable information that is relevant and credit losses,theGroupconsidersreasonable initial recognitionand when estimatingexpected financial assethasincreased significantly since When determining whether the credit risk of a life oftheinstrumentislessthan12months). reporting date (or a shorter period if the expected events that are possible within 12 months after the of expected credit losses that result from default 12-month expectedcreditlossesaretheportion – – to creditrisk. contractual period over which the Group is exposed estimating expectedcreditlossesisthemaximum In all cases, the maximum period considered when events over the expected life of a financial instrument. credit lossesthatresultfromallpossibledefault Lifetime expectedcreditlossesarethe credit losses. measured at an amount equal to lifetime expected Loss allowancesfortradereceivablesarealways

since initialrecognition. instrument) has not increased significantly occurring overtheexpectedlifeoffinancial for which credit risk (i.e. the risk of default other debtsecuritiesandbankbalances low creditriskatthereportingdate;and debt securitiesthataredeterminedtohave

Write-off

forward‑ and informed credit assessmentand including recovery ofamountsdue. in ordertocomply with the Group’s procedures for off couldstillbesubjecttoenforcementactivities write‑ off.However,financialassetsthatarewritten cash flows to repay the amounts subject to the sources of income that could generate sufficient that the trade receivable does not have assets or is generally the case when the Group determines that there is no realistic prospect of recovery. This written off(eitherpartiallyor in full)totheextent The grosscarrying amount ofafinancial asset is carrying amountoftheassets. at amortised cost arededucted from thegross Loss allowancesforfinancialassetsmeasured losses inthebalancesheet. Presentation of allowancefor expected credit the cashflowsthatGroupexpectstoreceive). the Group in accordance with the contract and (i.e. thedifferencebetweencashflowsdue to measured as thepresentvalueofallcashshortfalls estimate ofcreditlosses.Creditlossesare Expected credit lossesareaprobability‑weighted Measurement ofexpectedcreditlosses lookinginformation.

165 Annual Report 2018-19 166 VIVIMED LABS LIMITED

Notes forming part of the Consolidated financial statements

4. Property, Plant And Equipment (All amounts in Indian Rupees millions, except share data and where otherwise stated). Particulars Land Buildings Plant Electrical Laborato- Office Comput- Furni- Vehi- Books Lease- Total and Ma- equip- ry equip- equip- ers ture cles and hold chinery ment ment ment Periodi- improve- cals ments Gross Carrying amount At April 1, 2017 1,539.73 1,460.16 3,568.01 33.97 103.09 13.81 42.97 44.57 28.15 0.02 - 6,834.48 Additions 674.42 1,125.08 597.92 0.26 48.85 1.81 18.98 92.82 13.59 1.44 2,575.17 Disposals/ adjustments 67.40 418.01 556.51 - 33.82 0.02 14.84 44.38 1.60 - 1,136.58 At March 31, 2018 2,146.75 2,167.23 3,609.42 34.23 118.12 15.60 47.11 93.01 40.14 0.02 1.44 8,273.07 Additions 361.69 502.76 937.31 0.13 48.91 20.03 36.88 14.86 9.96 0.27 0.64 1,933.46 Disposals/ adjustments 990.84 401.50 605.14 (20.20) - (0.93) 25.09 44.06 3.70 - 0.13 2,049.32 At March 31, 2019 1,517.60 2,268.49 3,941.59 54.56 167.03 36.56 58.91 63.82 46.39 0.29 1.95 8,157.20 Accumulated - depreciation At April 1, 2017 0.00 20.60 252.10 0.50 7.07 1.25 17.76 5.29 6.18 0.00 - 310.76 Charge for the year - 63.52 399.10 3.48 11.47 0.79 19.96 9.32 7.48 0.03 515.15 Disposals/ adjustments - - At March 31, 2018 0.00 84.12 651.20 3.98 18.54 2.04 37.72 14.61 13.66 0.00 0.03 825.91 Charge for the year 95.00 421.97 12.38 23.79 8.13 26.85 9.77 9.73 0.00 0.15 607.77 Disposals/ adjustments (54.67) (64.50) (1.70) - (19.71) 7.32 32.31 (2.10) (0.16) (103.20) At March 31, 2019 0.00 233.79 1,137.68 18.05 42.33 29.88 57.25 (7.93) 25.49 0.16 0.18 1,536.88 Net Carrying amount - At March 31, 2018 2,146.75 2,083.11 2,958.22 30.25 99.58 13.56 9.39 78.40 26.48 0.02 1.41 7,447.16 At March 31, 2019 1,517.60 2,034.70 2,803.91 36.51 124.70 6.69 1.66 71.75 20.91 0.13 1.76 6,620.33 Note “a) Charge on Property, plant and equipment All the property, plant and equipment are subject to a first charge to secure the Group’s Bank loans 5. forming partoftheConsolidated financial statements Notes 6. Investments Particulars At April1,2017 At April1,2017 Accumulated depreciation At March31,2018 Disposals/ adjustments Additions At March31,2018 Disposals/ adjustments Amortisation expense At March31,2019 Disposals/ adjustments Additions At March31,2019 Disposals/ adjustments Amortisation expense At March31,2018 Carrying amount At March31,2019 Total investmentscarried at fairvaluethroughprofitandloss Total Others Green PowerPrivateLimited 2,500,000 (March31,2018:2,500,000)equitysharesofI10eachinYantra Unquoted equityshares Investments inothers Investments carried at fairvaluethroughprofitand loss Non-current investments Particulars Intangible assets

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). and Technicalknowhow Brands,Trademarks 31 March2019 1,232.29 (212.57) 25.10 25.10 25.00 731.49 837.11 106.96 379.65 730.15 852.64 129.47 421.93 Asat 0.10 57.91 23.85 49.05 26.74 60.12

- 31 March2018 1,232.29 (212.57) 731.49 837.11 106.96 379.65 730.15 852.64 129.47 421.93 57.91 23.85 49.05 26.74 60.12 Total 26.99 26.99 25.00 Asat 1.99 -

167 Annual Report 2018-19 168 VIVIMED LABS LIMITED forming partoftheConsolidated financial statements Notes Trade receivables 10. Trade 9. Inventories 8. 7. Total Total Less: Allowancefordoubtfulreceivables Finished Goods(includingintransit) Semi-finished &Workinprocess Packing Materials Export incentives -Expected credit lossonfinancialassets -Provisionallowedundertaxonpaymentbasis -TangibleandIntangibleassets Deferred tax asset Unsecured,considered good Raw Materials Prepaid expenses Capital advances Unsecured, consideredgood (A) Non-current Other advances Advances otherthancapitaladvances Unsecured, consideredgood (B) Current Prepaid leases Advances otherthancapitaladvances Particulars Particulars Particulars Particulars Deferred taxasset,net -Fairvaluationoffinancialliabilities Deferred tax liability Total -MATcreditentitlement Other assets Deferred taxassets,net

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 31 March2019 31 March2019 31 March2019 5,636.86 3,561.10 3,590.79 1,198.04 2,006.60 3,590.79 2,570.06 (29.69) 969.68 277.71 891.60 20.26 67.92 67.92 90.52 28.73 67.92 15.23 Asat Asat Asat Asat 5.03 - - - -

31 March2018 31 March2018 31 March2018 31 March2018 5,401.66 2,754.30 2,780.85 2,501.03 1,943.13 2,780.85 2,597.83 2,205.94 (26.55) 746.36 114.34 289.62 78.57 78.57 78.57 Asat Asat Asat Asat 5.03 5.03 5.47 - - - - -

forming partoftheConsolidated financial statements Notes 15. 14. 13. 12. 11. paid-up. 82,523,915 (March31,2018:82,523,915) equity sharesofI2/-eachfully Issued, subscribedandfullypaid-up 710,000 PreferenceSharesofI1,000/-each (A)Total -(i+ii) ii) Cashonhand -Oncurrentaccounts i) Balanceswithbanks: 200,000,000 (March31,2018,200,000,000),equitySharesofI2/-each Authorised Share Capital Total Less: Provisionfortaxes Advance taxand TDS receivable Interest receivable Current Loans andadvancestorelatedparties Security deposits Current Particulars Particulars Particulars Particulars Particulars Total (i+ii+iii) (B) Total(iii) -Unpaiddividendaccount iii) Bankbalancesotherthancashandequivalentsstatedabove Total Loans toemployeesandothers ShareCapital Currenttaxassets Otherfinancialassets Loans(Unsecured,consideredgoodunlessotherwisestated) Cash andcashequivalents

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 31 March2019 31 March2019 31 March2019 31 March2019 1,100.00 945.04 199.10 953.04 756.88 165.05 165.05 941.62 199.10 104.39 579.83 710.00 400.00 72.66 Asat Asat Asat Asat Asat 1.08 8.00 3.42 1.08 8.00

31 March2018 31 March2018 31 March2018 31 March2018 31 March2018 1,100.00 990.33 324.17 990.33 847.14 165.05 165.05 987.53 324.17 562.80 191.27 710.00 400.00 93.06 Asat Asat Asat Asat Asat 0.78 2.80 0.78 - -

169 Annual Report 2018-19 170 VIVIMED LABS LIMITED 15. forming partoftheConsolidated financial statements Notes 16. (c) Detailsofshareholdersholdingmore than 5%sharesintheCompany preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. the holdersofequity shareswillbeentitledtoreceiveremainingassetsoftheCompany,afterdistribution ofall per share.TheCompanydeclaresand pays dividendinIndianrupees.Intheeventofliquidation oftheCompany, Equity sharesoftheCompanyhaveaparvalueI2pershare.Eachholderequityisentitledtoonevote (b) Terms/rightsattachedtothe equity shares (a) Reconciliationofsharesoutstandingatthebeginningandendreportingyear Balance atMarch31,2019(EquitysharesofD2/-eachfullypaid-up) Issued during theyear(Equity sharesofC2/-eachfullypaid) Add: Issued during theyear Balance atMarch31,2017(EquitysharesofC2/-eachfullypaid-up) Issued, subscribed and fully paid-up Authorised ShareCapital Compulsorily convertiblepreferenceshares Number ofsharesheld BBR ProjectsPrivateLimited Equity sharesofD2/-eachfullypaid Balance atMarch31,2018(EquitysharesofD2/-eachfullypaid-up) % ofholding Number ofsharesheld Santosh Varalwar % ofholding Number ofsharesheld Kitara PIIN1102 % ofholding Particulars Particulars Particulars ShareCapital(contd.) Instruments entirelyequityinnature

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). (All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 31 March2019 31 March2019 8,25,23,915 8,25,23,915 8,10,18,915 1,23,12,000 15,05,000 55,99,050 91,50,685 11.09% 14.92% 6.78% Asat Asat Asat - - -

31 March2018 31 March2018 31 March2018 1,31,62,000 60,99,050 91,50,685 3,252.21 3,252.21 165.05 165.05 162.04 11.09% 15.95% 7.39% Asat Asat Asat 3.01 -

Other equity 17. Other forming partoftheConsolidated financial statements Notes Total otherequity Closing balance Add: Transfers duringtheyear Opening balance General reserve Closing balance Additions during theyear Opening balance Capital reserve received inrespectofsharesissued. Securities premiumconsistsofthedifferencebetweenfacevalueequity sharesandtheconsideration Closing balance Additions during theyear Opening balance Securities premium Particulars Closing balance Other comprehensiveincome Dividend paid / Capitalreductionofsubsidiaries Closing balance Add: Additions duringtheyear Opening balance Revaluation reserve or loss. other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit As thegeneralreserveiscreatedbyatransferfromonecomponentofequitytoanotherandnotanitem The generalreserveisused from timetotransferprofits retained earnings for appropriation purposes. Ind AS Adjustments Profit/(loss) fortheyear Opening balance Retained earnings Closing balance Add: Additions duringtheyear Opening balance Foreign currencyadjustment

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 (3,295.58) 2,305.22 2,305.22 6,076.84 (169.18) 6,020.69 3,354.92 (104.10) (65.08) 141.16 380.00 141.16 380.00 573.65 (11.85) (1.03) Asat 8.57 8.57 - - - -

31 March2018 8,846.71 6,076.84 2,305.22 1,766.60 5,333.64 (449.91) (65.08) (39.47) 141.16 380.00 141.16 538.62 380.00 779.43 384.83 Asat 8.57 8.57 3.24 - - - -

171 Annual Report 2018-19 172 VIVIMED LABS LIMITED forming partoftheConsolidated financial statements Notes (iii) (ii) (i) Term loanfromFinancialInstitutionsconsistsof: (iv) (iii) (ii) (i) Term loanfromBanksconsistsof: A. Termloans: 18. Borrowings - Others - Foreignbillsdiscounting - Cashcreditand packing creditloans(refernoteDbelow) Working capitalloans Secured loansrepayableondemand (B) CurrentBorrowings Total non-currentborrowings FCCB's FromFinancialInstitutions(refernoteCbelow) Sales taxdefermentloan(refernoteBbelow) Unsecured loans - FromFinancialinstitutions Other loans - FromFinancialinstitutions(refernoteCbelow) Redeemable preferenceshares - FromFinancialinstitutions(refernoteAbelow) - FromBanks(refernoteAbelow) Term loans Secured loans (A) Non-currentBorrowings Particulars Total currentborrowings

future, withaparipassu charge. All the term loans are secured by a charge on the moveable and immovable assets of the Group, present and Term loanfromMinistryofIndustries, SingaporeforEuros9.5million” Term loanfromSantander-Syndicated for USD35million This loancarriesaninterestrate of6.02%. ECB loan taken from IFC for USD 12.5 million repayable in 10 instalments from June 2015 to December 2019. Term loanfromAxisBankSingaporeforUSD10.4millionatan interestrateof3.60% Term loanfromSBIforINR30millionataninterestrateof12.75% 2019.This loancarriesaninterestrateof12.75% Term loan from Allahabad Bank for INR 500 million repayable in 16 instalments from May 2015 to February loan carriesaninterestrateof5.84%. Loan taken from SBI for USD 10.1 million repayable in 16 instalments from October 2017 to June 2021. This

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 4,248.01 3,323.01 3,147.23 3,559.10 175.78 553.16 127.21 Asat 4.04 4.50 -

31 March2018 3,251.97 3,851.61 3,814.46 1,940.46 489.33 811.03 37.15 Asat 3.66 7.49 -

During theyear,EXIMBankhavenotrenewed PCFC facilityand the loanwascalled back duringtheyear. with interestratesvaryingbetween1.55%to14.75%. The CompanyhasworkingcapitalfacilitiesintheformofcashcreditsandpackagingcreditfrommultipleBanks D. Cashcreditsandpackagingcreditloans: instrument. upto 30September2019.Theentireportionwasclassifiedunder“Borrowings”,andthereisnoequity portionofthe conversion optionisnotexercised.Subsequently, duringtheyear,due dateforpaymenthasbeenextended with acouponrateof0.55%perannumand an interestrateof4.23%perannumcompoundedsemiannuallyifthe The CompanyhasobtainedanFCCBfromIFCinJune2011foramountofUSD7.5millionrepayable5years C. FCCB’sfromFinancialInstitutions: per thetermsofthisscheme,CompanyhastorepayamounttillFY2019-20.Thisloanisunsecured. The CompanyhasbeengrantedaninterestfreesalestaxdefermentloanbytheGovernmentofAndhra Pradesh.As B. Salestaxdefermentloan: forming partoftheConsolidated financial statements Notes Other liabilities 20. Other 19. Deferred interest (A) Non-Current Payable torelated parties Creditors forcapitalgoods (A) Non-Current Particulars Particulars Employee bonuspayable Employee salariespayable Advances received Current maturitiesoflong-termdebts (B) Current Provision forexpenses Statutory liabilities Current (B) Current Grants receivable Other financialliabilities

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 31 March2019 2,193.39 1,976.09 308.55 315.71 308.55 188.00 296.38 77.70 18.96 14.66 14.64 77.70 Asat Asat 0.37 -

31 March2018 31 March2018 1,398.16 1,136.37 233.60 233.60 224.85 91.34 78.28 74.60 14.94 16.37 22.01 78.28 Asat Asat 0.37 -

173 Annual Report 2018-19 174 VIVIMED LABS LIMITED forming partoftheConsolidated financial statements Notes 24. Revenuefromoperations 23. payables 22. Trade 21. Provisions - Gratuity(refernote38) Provision foremployeebenefits (A) Non-Current Revenue fromsaleofproducts Provision fortaxes Trade payables Other operatingrevenue Particulars Particulars Particulars Particulars - Compensatedabsences Provision forothers - Gratuity(refernote38) Provision foremployeebenefits (B) Current - Compensatedabsences Export Domestic Less: AdvancetaxandTDSreceivable - Totaloutstandingduesofmicroenterprisesandsmall small enterprises - Totaloutstandingduesofcreditorsotherthanmicroenterprisesand (refernote39) Current taxliabilities

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated).

31 March2019 31 March2019 31 March2019 31 March2019 Fortheyear 13,151.70 12,649.10 2,944.24 9,719.47 2,929.63 2,944.24 351.01 351.01 502.60 ended 92.11 53.30 23.66 15.15 Asat Asat Asat - - -

31 March2018 31 March2018 31 March2018 31 March2018 Fortheyear 11,856.60 11,811.84 2,019.94 8,546.90 3,264.94 2,019.94 548.80 548.80 ended 70.28 43.14 44.76 19.31 Asat Asat Asat 5.52 5.52 7.83 -

forming partoftheConsolidated financial statements Notes 28. Employee benefits expense 27. ChangesininventoriesandWorkprogress 26. Costofmaterialsconsumed 25. Otherincome Goods intransitand stock intrade Fluctuation inforeignexchange Sub Total(B) Less:Inventoriesattheend of theyear Inventoriesatthebeginningofyear Semi FinishedGoods&WorkinProgress Sub Total(A) Less :ClosingStockofPackingMaterials (Increase) /DecreaseinInventories Less:Inventoriesattheend of theyear Less :ClosingStockofRawMaterialsand Consumables Opening StockofRawMaterials(JDV) Opening StockofPackingMaterials Opening StockofPackingMaterials(JDV) Opening StockofRawMaterialsand Consumables Grants received Salaries, wagesand bonus Inventoriesatthebeginningofyear Finished Goods Add : Purchasesduring theyear Particulars Particulars Particulars Particulars Staff welfareexpenses Miscellaneous income

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 31 March2019 31 March2019 31 March2019 Fortheyear Fortheyear Fortheyear Fortheyear 5,619.12 2,417.60 8,279.70 1,803.05 2,570.06 2,597.83 2,344.48 1,755.69 5,567.53 (127.45) (435.13) (260.31) (47.36) 229.61 873.81 746.36 114.34 229.23 ended ended ended ended 90.52 73.12 0.38 - - -

31 March2018 31 March2018 31 March2018 31 March2018 Fortheyear Fortheyear Fortheyear Fortheyear 4,898.03 1,977.77 7,610.20 1,755.69 2,597.83 2,484.42 1,878.35 1,697.79 4,863.33 (101.29) (57.90) (76.13) 746.36 779.10 114.34 114.07 ended ended ended ended 32.74 96.10 80.18 68.20 99.42 95.72 0.38 -

175 Annual Report 2018-19 176 VIVIMED LABS LIMITED forming partoftheConsolidated financial statements Notes 32. Otherexpenses 31. Financecosts 30. Depreciationandamortisationexpense 29. Otheroperatingexpenses Business &MarketingExpenses Interest ontermloans,ECBloansand vehicle loans Consumption ofStores&Spares Particulars Particulars Particulars Particulars Depreciation oftangibleassets Repairs toBuilding Labour Charges Job Work Charges Other ManufacturingExpenses Repairs toMachinery Commission &Discounts R &DExpenses Travelling Expenses-Foreign Other sellingexpenses Telephone &PostageExpenses Printing &Stationery Travelling Expenses Rates &Taxes Conveyance Consultancy Charges Other borrowingcost Interest onworkingcapitalloanand cash credit Wages &Allowances Power &Fuel Amortization ofintangibleassets Bank charges

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). Fortheyearended Fortheyearended Fortheyearended Fortheyearended 31 March2019 31 March2019 31 March2019 31 March2019 2,580.96 1,108.39 667.90 403.71 264.19 427.67 229.12 174.40 244.56 363.04 672.62 102.36 408.76 161.50 241.33 23.29 37.36 28.02 74.93 32.41 31.81 23.76 11.60 48.67 71.68 6.84 3.64 9.10

Fortheyearended Fortheyearended Fortheyearended Fortheyearended 31 March2018 31 March2018 31 March2018 31 March2018 2,093.35 564.20 515.15 347.25 174.49 170.82 451.83 182.01 747.70 794.83 278.70 369.80 146.33 180.45 49.05 10.44 38.91 28.70 86.39 38.25 41.33 17.22 41.30 63.16 4.06 4.75 8.89 8.53

34. Contingent liabilities and Commitments 34. Contingentliabilities 33. Taxexpenses 32. Otherexpenses(Contd.) forming partoftheConsolidated financial statements Notes - Estimated amount ofcontractsremainingtobeexecuted on ii) Commitments: -Incometaxdemand - Bankguarantees -Letterofcreditoutstanding - Corporateguaranteesgivenonbehalfofothers i) Contingentliabilities: Insurance Income taxchargetoOCI Re-measurement gains/(losses)ondefinedbenefitplan loss Income taxexpenserecognisedinthestatementofprofitor Relating tooriginatingandreversaloftemporarydifferences Deferred tax: Current incometaxcharge Current incometax: Particulars Particulars Particulars Rent Deferred taxrelatedtoitemsconsideredinOCIduringtheyear Processing feeontermloans Other AdministrativeExpenses (i)AsAuditor Payment toAuditors: Fluctuation onForeignexchange Provision againstdoubtfulreceivables (ii)ForTaxationMatters capital accountandnotprovided for,netofadvances

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). Fortheyearended Fortheyearended Fortheyearended Fortheyearended 31 March2019 31 March2019 31 March2019 31 March2019 1,197.78 (110.12) 528.33 414.35 (1.03) (1.03) 86.80 78.03 50.20 68.46 20.61 26.34 68.02 14.20 8.77 3.29 58.6 -

Fortheyearended Fortheyearended Fortheyearended Fortheyearended 31 March2018 31 March2018 31 March2018 31 March2018 1,076.60 (141.48) (25.58) 121.79 868.70 311.35 455.00 96.21 42.31 48.15 20.85 26.34 68.02 3.24 3.24 6.53 1.52 9.06

177 Annual Report 2018-19 178 VIVIMED LABS LIMITED a) 35. Relatedpartydisclosures forming partoftheConsolidated financial statements Notes amount cannotbedetermined. is provided in thebooksofaccountsonbasisactuarialvaluationforGroup as awholeand hence individual *Does not include insurance, which is paid for the Group as a whole and gratuity and compensated absences as this e) Others: c) b) d) Yantra GreenPowerPLtd. BBR ProjectsPLtd. Advances received Advances given Purchase ofgoods Key ManagementPersonnel("KMP") Sale ofgoods Subsidiaries andstepdownsubsidiaries Remuneration Paid* Key Management Personnel Particulars Joint ventureGroup Name ofRelatedParty Kreatvie HostsAtriaPvtLtd Yantra E-SolarIndiaPrivateLimited Nisarg BiosciencesPrivateLimited BBR GreenfieldsPrivateLimited Sanvita BiotechPrivateLimited Names ofrelatedpartiesanddescriptionrelationship The CompanyhasgivenCorporate GuaranteeforthecreditfacilitiesofC414.35MnavailedbySubsidiaries. length transactions.Outstandingbalancesattheyear-end are unsecured and interest free. The salestoandpurchases fromrelatedpartiesaremadeontermsequivalent tothosethatprevailinarm’s Details ofbalancesreceivablefromandpayabletorelatedpartiesare as follows: Transactions withrelatedparties Terms andconditionsoftransactionswithrelatedparties:

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). Yugandhar Kopparthi(CompanySecretary) S Raghunandan(Whole-TimeDirector&CFO) Santosh Varalwar(ManagingDirector) -

For theyearended

31 March2019 31 March2019 1,533.61 796.54 157.44 970.25 26.31 (13.62) (53.05) (75.59) 478.93 163.01 108.40 Asat 0.19

For theyearended

31 March2018 31 March2018 3,105.13 1,273.01 1,619.66 379.23 487.06 (0.56) 40.17 58.72 24.99 26.05 40.45 Asat 0.15

The segmentrevenue,profitability,assetsandliabilitiesareasunder: The Group has tworeportablesegments-SpecialityChemicalsBusinessandPharmaBusiness. resources onoverallbasis. to theChiefOperatingDecisionMaker(CODM).TheCODMevaluatesGroup’sperformanceand allocates segments and geographical segments are to be reported in a manner consistent with the internal reporting provided geographic areas,andmajorcustomers.Basedonthe“managementapproach”asdefinedinIndAS108,Operating report informationaboutoperatingandgeographicalsegmentsrelateddisclosuresproducts andservices, Ind AS108“OperatingSegment”(“Ind108”)establishesstandardsforthewaythatpublicbusiness enterprises 36. Segmentinformation forming partoftheConsolidated financial statements Notes Total revenue c) Others Total Profitbeforetax (ii) Unallocableexpenditure(NetofUnallocableincome) Less: (i)Interest Total: c) Others b) Pharma b) Pharma b) Pharma a) SpecialityChemicals Capital Employed Total b) Pharma a) SpecialityChemicals Segment Liabilities Total b) Pharma a) SpecialityChemicals Segment Assets a) SpecialityChemicals (Profit beforeTax&Interest) Segment Results a) SpecialityChemicals Revenue bysegment Total

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated).

For theyearended For theyearended For theyearended 31 March2019 31 March2019 31 March2019 13,151.70 11,524.73 1,333.08 8,610.11 5,243.62 8,611.14 1,626.98 13,854 23,292 19,693 660.46 672.62 896.75 436.33 11,718 14,681 7,975 - -

For theyearended For theyearended For theyearended 31 March2018 31 March2018 31 March2018 11,856.60 1,651.93 9,853.14 1,029.62 2,003.46 11,549 23,936 12,360 857.10 622.32 11,303 12,633 6,557 5,499 6,050 5,803 795 -

179 Annual Report 2018-19 180 VIVIMED LABS LIMITED 38. Gratuity 37. Auditors’remunerationinclude: forming partoftheConsolidated financial statements Notes Current servicecost Service cost Interest cost Opening balance Particulars Actuarial gain/(loss)duetoothers Re-measurement gains/(losses)inOCI Interest cost Benefits paid Gratuity cost Particulars Total Statutory auditfee(includinglimitedreview) Particulars Taxation matters Return onplanassetsgreater(less) thandiscountrate Remeasurement becauseofOB difference Actuarial gain Total expensesroutedthrough OCI Present valueofprojected benefit obligationattheend of theyear Closing balance Current provision Non currentprovision recognisedin the balance sheet Net liability Fair valueofplanassetsattheendyear Expenses recognisedinstatementofprofitandloss Reconciliation ofopeningandclosingbalancesthepresentvaluedefined benefit obligations: loss andtheamountsrecognisedinbalancesheetforplan: The followingtablessummarizethecomponentsofnetbenefitexpenserecognisedinstatementprofitor time ofretirement/exit,restricted to asumofI2,000,000. days salaryforeachyearofcompleted service (serviceofsixmonthsand above isrounded off asoneyear)atthe The GratuityPlanentitlesanemployee,whohasrenderedatleastfiveyearsofcontinuousservice,toreceive15 The Group provides its employees with benefits under a defined benefit plan, referred to as the “Gratuity Plan”.

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated).

For theyearended 31 March2019 31 March2019 31 March2019 31-Mar-19 29.63 26.34 3.29 (3.14) (3.61) (2.49) (3.61) 45.66 11.37 50.92 50.92 50.92 45.69 Asat Asat 7.84 7.84 3.53 3.53 0.10 0.38 5.23

- For theyearended

31 March2018 31 March2018 31 March2018 31-Mar-18 (0.13) (4.11) 27.86 26.34 19.73 12.15 45.66 45.66 10.67 10.67 13.90 13.90 45.66 40.13 Asat Asat 1.52 9.81 1.48 1.48 0.02 5.52 -

39. DuestoMicro,smallandmediumenterprises 38. Gratuity(contd.) forming partoftheConsolidated financial statements Notes Impact of1%decreaseindiscountrate Impact of1%increaseindiscountrate follows: A quantitative sensitivityanalysisforsignificantassumptionanditsimpactonprojectedbenefitobligationareas Future salaryincreases Discount rate(perannum) suming therearenootherchangesinmarketconditions. Assumptions Impact of1%increaseinsalarygrowthrate Impact of1%increaseinattritionrate Impact of1%decreaseinsalarygrowthrate Impact of1%increaseinmortalityrate Impact of1%decreaseinattritionrate These sensitivies have been calculated to show the movement in projected benefit obligation in isolation and as Impact of1%decreaseinmortalityrate b) d) e) a) c) supplier beyond the appointeddayduringeachaccountingyear; the MSMED Act, along with the amount of the payment made to the the amountofinterestpaidbybuyer intermsofsection16 each accountingyear;and the amount of interest accrued and remaining unpaid at the end of MSMED Act during theyear) but without adding theinterest specified under this making payment(whichhavebeenpaidbut beyondtheappointedday theamountofinterestdueandpayableforperiod of delayin the endofeachaccountingyear. the principalamountduethereonremainingunpaidtoanysupplier at Particulars a deductibleexpenditureundersection23oftheMSMEDAct. actually paid to the small enterprise, for the purpose of disallowance of succeeding years,untilsuchdatewhentheinterestduesabove are the amountoffurtherinterestremainingdue andpayableeveninthe

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 31 March2019 31 March2019 Nil Nil Nil Nil Nil (54.67) (45.47) (47.88) (50.84) 47.64 57.39 53.67 51.10 2.00% 7.36% Asat Asat Asat

31 March2018 31 March2018 31 March2018 Nil Nil Nil Nil Nil (42.53) (40.41) (42.42) (45.58) 49.26 51.76 48.58 45.74 2.00% 7.73% Asat Asat Asat -

181 Annual Report 2018-19 182 VIVIMED LABS LIMITED 40. Leases forming partoftheConsolidated financial statements Notes 41. Earningspershare ii) Not laterthan1year basic Weighted averagenumberofequitysharesoutstandingduring theyear– Shares Profit fortheyearattributable toequity shareholders Cancellable leaseexpense Particulars Particulars Particulars diluted Weighted averagenumberofequitysharesoutstandingduring theyear– Later than1yearandnotlater5years Non -cancellableleaseexpense Total Earnings pershareofparvalueI2–basic() Earnings pershare Earnings pershareofparvalue I2–diluted I) ( Later than5years i) clause inthesearrangementrangesfrom5%to10%. from elevenmonthstofiveyears,withanoptionrenewtheleaseaftertermcompletion.Theescalation The Group has takenvariousofficepremisesunderoperatingleases.Theleasestypicallyrunforatermranging Where theGroup is alessee: The followingtablesetsoutthecomputationofbasicand diluted earningspershare: would beissuedonconversionofallthedilutivepotentialequitysharesintoShares. number ofequitysharesoutstandingduringtheyearplusweightedaveragethat Diluted EPS amountsarecalculated by dividingtheprofitattributabletoequityholdersweighted average average numberofequitysharesoutstandingduring theyear. Basic EPSamountsarecalculatedbydividingtheprofitforyearattributabletoequityholdersweighted Amounts recognisedinstatementofprofitandloss: Future minimumleasepaymentsundernon-cancellableoperatingleasesareasfollows:

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 31 March2019 31 March2019 8,25,23,915.00 8,60,18,915.00 573.65 68.46 13.02 66.31 11.30 Asat Asat Asat 2.15 6.95 6.67 -

31 March2018 31 March2018 31 March2018 8,25,23,915.00 8,35,18,915.00 760.90 48.15 13.02 46.00 11.30 Asat Asat Asat 2.15 9.22 9.11 -

42. Financialriskmanagementobjectivesandpolicies forming partoftheConsolidated financial statements Notes INR INR March 31,2019 INR INR March 31,2018 through theimpactonfloatingrateborrowings,asfollows:” of loansandborrowingsaffected.Withallothervariablesheld constant,theGroup’sprofitbeforetaxisaffected The followingtabledemonstratesthesensitivitytoareasonably possiblechangeininterestratesonthatportion Interest ratesensitivity does notenterintoanyinterestrateswaps. The Group manages its interest rate risk by having a balanced portfolio of variable rate borrowings. The Group primarily totheGroup’sshort-termdebtobligationswithfloatinginterestrates. of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates Interest rateriskisthethatfairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecause Interest raterisk This isbasedonthefinancialassetsand financial liabilitiesheldatMarch31,2019and2018. The sensitivityoftherelevantprofitorlossitemiseffectassumedchangesinrespectivemarketrisks. The belowassumptionhasbeenmadeincalculatingthesensitivityanalysis: post retirementobligations;provisions. The analysisexcludestheimpactofmovementsinmarketvariableson:carryingvaluesgratuityandother fixed to floatinginterestratesofthedebt. 31, 2018.Thesensitivityanalyseshavebeenprepared on thebasisthatamountofnetdebtand the ratioof deposits. ThesensitivityanalysisinthefollowingsectionsrelatetopositionasatMarch31,2019and March as commodity risk. Financial instruments affected by market risk include loans and borrowings and refundable changes inmarketprices.Marketriskcomprisestwotypesofrisk:interestrateandotherpricerisk,such Market riskisthethatfairvalueoffuturecashflowsafinancialinstrumentwillfluctuatebecause a) Marketrisk which aresummarized below.” management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, The Groupisexposedtomarketrisk,creditriskandliquidityrisk.Group’sseniormanagementoverseesthe derive directlyfromitsoperations. assets includeinventory,tradeandotherreceivables,cashequivalents andrefundabledepositsthat purpose ofthesefinancialliabilitiesistofinanceandsupportGroup’soperations.Theprincipal The Group’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). Increase/decrease in interestrate +1% +1% -1% -1% Effect onprofitbeforetax (94.72) (82.40) 94.72 82.40

183 Annual Report 2018-19 184 VIVIMED LABS LIMITED comprise ofissued share capitaland all otherequityreserves. For thepurpose ofdebttototalequity ratio,debtconsideredislong-termandshort-term borrowings.Totalequity employed as wellthedebttototalequityratio. and tosustainfuturedevelopment ofthebusiness. Management monitorscapitalonthebasisofreturn “The Group’spolicyistomaintain astablecapitalbasesoastomaintaininvestor,creditorand market confidence 43. Capitalmanagement c) Liquidityrisk b) Creditrisk forming partoftheConsolidated financial statements Notes 42. Financialriskmanagementobjectivesandpolicies(contd.) Opening balance Allowance forcreditloss Trade payables Borrowings Year ended March 31,2018 Trade payables Borrowings Year endedMarch31,2019 Credit lossprovided/(reversed) Closing balance undiscounted The tablebelowsummarisesthematurityprofileofGroup’s financialliabilitiesbasedoncontractual bank depositsandloans. payments:” The Group’sobjectiveistomaintainabalancebetweencontinuityoffundingandflexibilitythroughtheuse institutions withhighcreditratingsassignedbyinternationalanddomesticratingagencies. Credit riskoncashandequivalentislimited as theGroupgenerallytransactswithbanksandfinancial there isnosignificantconcentrationriskofrevenue. No single customer accounts for more than 10% of the revenue as of March 31, 2019, March 31, 2018 and hence follows: The movement in allowance for credit loss in respect of trade and other receivables during the year was as risk asatreportingdateisprimarilyfromtradereceivablesamountingtoC3,590.79(March31,2018:2,780.85). trade and other receivables based on the past and the recent collection trend. The maximum exposure to credit The Groupestablishesanallowanceforcreditlossthatrepresentsitsestimateofexpectedlossesinrespect receivables aremonitored on acontinuousbasisbythereceivablesteam. whom credithasbeengrantedafterobtainingnecessaryapprovalsforcredit.Thecollectionfromthetrade Credit riskiscontrolledbyanalysingcreditlimitsandcreditworthinessofcustomersonacontinuousbasisto financial instruments. receivables) andfromitsinvestingactivities,includingdepositswithbanks financial institutionsandother contract, leadingtoafinancialloss.Thecreditriskarisesprincipallyfromitsoperatingactivities(primarilytrade Credit risk is therisk that counterpartywillnotmeetitsobligationsundera financial instrumentorcustomer

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 26.55 29.69 Asat 3.14

31 March2018 On Demand 2,020 3,852 2,944 3,147 20.02 26.55 Asat 6.53

The capitalstructureasofMarch31,2019,2018wasfollows: 43. Capitalmanagement(contd.) forming partoftheConsolidated financial statements Notes 44. Long termborrowingsincludingcurrentmaturities As apercentageoftotalcapital Total equityattributable totheequityshareholdersofGroup Particulars Short termborrowings Total borrowings Total capital(equityand borrowings) As apercentageoftotalcapital impact oftheamendment onitsfinancialstatements. unused tax credits and tax rates would depend upon the probability. The Company does not expect any significant accepting thetaxtreatmentand thedeterminationoftaxableprofit(taxloss),taxbases, unused taxlosses, information whileexaminingany amount(3)entityhastoconsidertheprobabilityofrelevant taxationauthority of the uncertainty (2) the entity is to assume that the taxation authority will have full knowledge of all relevant together. The decision should be based on the approach which provides better predictions of the resolution determine whethereachtaxtreatment shouldbeconsideredseparatelyorwhethersome can beconsidered over income tax treatmentsunderInd AS 12. It outlines the following: (1) the entity has to use judgement, to of taxable profit(tax loss), tax base, unused tax losses, unused tax credits and tax rates, when there is uncertainty The amendmenttoAppendixCofIndAS12specifiesthatthe amendmentistobeapplied tothedetermination charged to equity aspartofdividend,inaccordancewithIndAS12. authorities on behalf of shareholders. Such amount paid or payable to taxation authorities continues to be situations wheretheentitypaysataxondividendwhichiseffectively aportionofdividendspaidtotaxation not expectanyimpactfromthispronouncement.Itisrelevant tonotethattheamendmentdoesnotamend equity accordingtowheretheentityoriginallyrecognisedthose pasttransactionsorevents.TheCompanydoes shall recognisetheincometaxconsequences ofdividendsinprofitorloss,othercomprehensive incomeor income tax treatments) The amendmentrelating to income tax consequencesofdividend clarify that an entity Ind AS12Incometaxes(amendmentsrelatingtoincometax consequencesofdividendanduncertaintyover completed. arrangements andshalldeterminetheappropriatetransitionoptiononcesaidevaluationhasbeen The CompanyisintheprocessofevaluatingimpactNewLeaseStandardonpresentandfuture Substantially carriesforwardthelessoraccountingrequirementsinInd AS17. make leasepayments.Thestandardalsocontainsenhanceddisclosurerequirements forlessees.IndAS116 use assetrepresentingitsrighttotheunderlyingandaleaseliabilityobligation introduces a single, on-balance sheet lessee accounting model for lessees. A lessee recognises rightof- of recognition,measurement,presentationanddisclosureleasesforbothlesseeslessors.It Ind AS-116willreplacetheexistingleasesstandard,AS17Leases.116setsoutprinciples Ind AS -116 amendments toIndAsswhichtheCompanyhasnotapplied astheyareeffectivefrom1April2019. and Companies(IndianAccountingStandards)secondAmendmentRules,hasnotifiedthefollowingnew Ministry ofCorporate Affairs (“MCA”), through Companies (Indian AccountingStandards)Amendment Rules, 2019 The standardsissued,butnoteffectiveuptothedateofissuancefinancialstatementsisdisclosed below: Standards issuedbutnoteffective

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). 31 March2019 49.71% 50.29% 18,985 6,224 9,438 3,323 9,547 Asat

31 March2018 59.81% 40.19% 12,264 20,504 4,388 3,852 8,240 Asat

185 Annual Report 2018-19 186 VIVIMED LABS LIMITED Chandra BabuM Sd/- ICAI FirmRegistrationNumber:016016S Chartered Accountants for PCN&Associates As perourreportofevendateattached The accompanyingnotesareanintegralpartoftheconsolidatedfinancial statements. 46. Prioryearcomparatives 45. SubsequentEvents forming partoftheConsolidated financial statements Notes Date: 30May2019 Place: Hyderabad Membership No.:227849 Partner 44. year’s classification. The figuresofthepreviousyearhavebeenregrouped/reclassified, wherenecessary,toconformwiththecurrent There arenosignificanteventsthatoccurred after thebalancesheetdate. amendment. not remeasure previously held interests in that business. The Company does not expect any impact from this Ind AS 111 clarify that when an entity obtains joint control of a business that is a joint operation, the entity does business thatisajointoperation,itre-measurespreviouslyheldinterestsinbusiness. Theamendmentsto The amendments to Ind AS 103 relating to re-measurement clarify that when an entity obtains control of a Ind AS 103–BusinessCombinationsandInd111JointArrangements equity methodisnotapplied.TheCompanydoesexpectanyimpactfromthisamendment. associate orjointventurethatformpartofthenetinvestmentinbut towhichthe The amendmentsclarifythatanentityappliesInd AS 109FinancialInstruments,tolong-terminterestsinan Ind AS 28-Long-termInterestsinAssociatesandJointVentures impact fromthisamendment. generally whencalculatingthecapitalisationrateongeneralborrowings.TheCompanydoesnotexpectany asset isreadyforitsintendeduseorsale,thatborrowingbecomespartofthefundsanentityborrows 23 -BorrowingCostsTheamendmentclarifythatifanyspecificborrowingremainsoutstandingaftertherelated The Companydoesnotexpectthisamendmenttohaveanysignificantimpactonitsfinancialstatements.IndAS plan amendment,curtailmentorsettlementontherequirements regardingtheassetceiling. assumption usedfortheremeasurement.Inaddition, amendmentshavebeenincludedtoclarifytheeffectofa the currentservicecostand the netinterestforperiod after there-measurementaredetermined using the The amendmentsclarifythatifaplanamendment,curtailmentorsettlementoccurs,itismandatory Ind AS 19-PlanAmendment,CurtailmentorSettlement have anyimpactonitsfinancialstatements. income) eveninthecaseofnegativecompensationpayments.TheCompanydoesnotexpectthisamendmentto measurement atamortised cost (or,dependingonthebusinessmodel,atfairvaluethroughothercomprehensive The amendmentrelatetotheexistingrequirements inIndAS109regardingterminationrightsordertoallow Ind AS 109-PrepaymentFeatureswithNegativeCompensation Standards issuedbutnoteffective(contd.)

(All amountsinIndianRupeesmillions,exceptsharedataandwhereotherwisestated). Santosh Varalwar Sd/- CIN: L02411KA1988PLC009465 Vivimed Labs Limited for andon behalfoftheBoardDirectors DIN: 02029812 Whole -Time DirectorcumCFO S Raghunandan Sd/- DIN: 00054763 Managing Director

Manohar RaoVaralwar Sd/- Sd/- M. No.ACS19315 Company Secretary Yugandhar Kopparthi DIN: 00059815 Whole -TimeDirector

5. SPECIAL BUSINESS: 4. 3. 2. 1. ORDINARY BUSINESS: Notice NOTICE ISHEREBYGIVENTHATTHE31 TRANSACT THEFOLLOWINGBUSINESS: COMPANY SITUATEDATPLOTNO.78-A,KOLHARINDUSTRIALAREA,BIDAR-585403KARNATAKA,INDIATO LIMITED WILL BE HELD ON MONDAY, SEPTEMBER 30, 2019 AT 11.30 A.M. AT THE REGISTERED OFFICE OF THE E-mail: [email protected] Tel: 91-40-66086608,Fax:6699, Corporate office:NorthEnd,Road No.2, BanjaraHill,Hyderabad - 500034 Registered office:PlotNo.78-A,KolharIndustrialArea,Bidar,Karnataka-585403 CIN: L02411KA1988PLC009465 Vivimed Labs Limited to holdofficeuntiltheconclusionof35 Meeting as Statutory Auditors of the Company for thefinancial yearending31stMarch2020. & Co, Cost Accountants to audit the cost records To ratify the remuneration payable toM/s.A.S.Rao their remuneration. General MeetingandtoauthorizetheBoardfix as approved by members at the 30 Chartered Accountants, (Registration No.016016S), To ratifytheappointmentofM/s.PCN&Associates, eligible, offershimselfforre-appointment. [DIN: 01682951],whoretiresbyrotationand,being To appoint a Director in place of Mr.Sandeep Varalwar thereon. year ended March 31,2019and Report of Auditors 31, 2019,CashFlowStatementforthefinancial Profit and Loss for the financial year ended March Balance Sheet as at March 31, 2019, Statement of To receive, consider and adopt the Consolidated Auditors thereon. ended March 31,2019and reports ofDirectorsand 31, 2019,CashFlowStatementforthefinancialyear Profit and Loss for the financial year ended March Balance Sheet as at March 31, 2019, Statement of To receive, consider and adopt the Standalone th Annual General st ANNUALGENERALMEETINGOFTHEMEMBERSVIVIMEDLABS th Annual 6. time directorcumCFOofthe company. Srirambatla fromwholetime directortowhole Change indesignationof Mr.Raghunandan of givingeffecttothisresolution”. necessary, expedientand desirable forthepurpose to do all such acts, deeds and things as may be that mayariseingivingeffecttothisresolutionand authorized to settle any question, difficulty or doubt, and/or theCompanySecretarybeandarehereby RESOLVED FURTHERTHATtheBoardofDirectors connection withtheaudit.’’ of pocketexpensesatactuals,ifany,incurredin only) excluding GST and reimbursement of out exceeding ending 31stMarch,2020,bepaid remuneration not the costrecords,ifrequired,forfinancialyear Auditors of the Company forconductingauditof Registration No.000326)appointedastheCost force) M/s.A.S.Rao&Co,CostAccountants(Firm or re-enactment(s)thereofforthetimebeingin Rules, 2014(includinganystatutorymodification(s) Rules, 2014and Companies (CostRecordsand Audit) 2013 read with the Companies (Audit and Auditors) applicable provisions,ifany,oftheCompaniesAct, “RESOLVED THATpursuant toSection148andother ORDINARY RESOLUTION: modification, topassthefollowingresolutionasan To considerand,ifthoughtfit,withorwithout C1.1 lacs(RupeesOnelacTenthousand

187 Annual Report 2018-19 188 VIVIMED LABS LIMITED 7. Mamidpalli (DIN: 00117862), who was appointed as amended from time to time, Prof. Bhagvanth Rao and Disclosure Requirements) Regulations, 2015, as the timebeinginforce)and SEBI (ListingObligations statutory modification(s)orre-enactmentthereof,for Qualifications of Directors) Rules, 2014 (including any Act, 2013 and Companies (Appointment and other applicable provisions, if any, of the Companies Section 149and152readwithSchedule IVand “RESOLVED THATpursuant totheprovisionsof Special Resolution: modification(s), thefollowingresolutionasan To consider and if thought fit, to pass with or without Independent Director To appointProf. Bhagvanth Rao Mamidpalli as an give effecttotheaboveresolution. to do all such acts and deeds as may be required to necessary e-formswithRegistrarofCompanies,and hereby jointlyand/orseverallyauthorisedtofilethe Company Secretaryofthebeand are Directors ofthecompanyandMr.K.Yugandhar Mr.Manohar RaoVaralwar,Mr.Sandeep RESOLVED FURTHERTHATMr.SantoshVaralwar, Srirambatla bytheCompany. per LetterofAppointmentgiventoMr.Raghunandan 14 company, liabletoretirebyrotation,effectivefrom director towholetimecumCFOofthe of Mr.RaghunandanSrirambatlafromwholetime is herebyaccorded to thechangeindesignation approval of the members of the Company be and and rules and regulations made there under, re-enactment thereof for the time being in force) Act, 2013(includinganystatutorymodificationor other applicable provisions,ifany,oftheCompanies section 152,203 of the Companies Act, 2013 and all “RESOLVED THATpursuant tothe provisions of SPECIAL RESOLUTION: without modification(s), the following resolution as To consider and, if thought fit, to pass, with or th November, 2018 on such terms and conditions as 8. Date: 09.08.2019 Place: Hyderabad of five years up to 31 an IndependentDirectoroftheCompanyforaterm 2024, notliabletoretirebyrotation.” Annual GeneralMeetingtobeheldincalendaryear commencing fromSeptember30,2019up to 36th Company for a second term of five consecutive years re-appointed as anIndependentDirectorofthe 149 of the Companies Act, 2013, be and is hereby 26th AnnualGeneralMeeting,intermsofSection year 2024,notliabletoretirebyrotation.” 36th Annual General Meeting to be held in calendar years commencingfrom September 30,2019 up to the Company for a second term of five consecutive hereby re-appointed as anIndependent Director of Section 149 of the Companies Act, 2013, be and is at the26thAnnualGeneralMeeting,intermsof term offiveyearsup to 31 as anIndependentDirectoroftheCompanyfora Mr. NixonPatel(DIN:01717281),whowasappointed Regulations, 2015,asamendedfromtimetotime, (Listing Obligations and Disclosure Requirements) thereof, for the time being in force) and SEBI any statutorymodification(s)orre-enactment Qualifications ofDirectors)Rules,2014(including Act, 2013andCompanies(Appointment other applicable provisions,ifany,oftheCompanies Section 149and152readwithSchedule IVand “RESOLVED THATpursuant to the provisions of Special Resolution: modification(s), thefollowingresolutionasan To consider and if thought fit, to pass with or without Director. To appoint Mr.Nixon Patel as an Independent st AGM, by the members at the for VivimedLabsLimited st AGM, bythemembers By orderoftheBoard Company Secretary K.Yugandhar Sd/- 4. 3. Membersarerequestedtohandovertheenclosed 2. 1. Amemberentitledtoattendandvoteattheannual Notes:

Company’s Registrar andTransferAgent, Aarthi attend and vote ontheirbehalfattheAGMto signatures authorizingtheir representative(s) to the BoardResolutiontogether withtheirspecimen 2013 arerequestedtosenda duly certifiedcopyof pursuant toSection113of the CompaniesAct, authorized representatives toattend the AGM Corporate membersintendingtosendtheir their ClientIDandDPnumbersforidentification. shares in dematerialized form are requested to bring for admissiontothemeetinghall.Memberswhohold specimen signature(s) registered with the Company Attendance Slip,dulysignedinaccordancewiththeir given totheCompany. that not less than three days of notice in writing is during the business hours of the Company provided entitled to inspect the proxies lodged at any time time fixed for the meeting, a member would be During the period beginning 24 hours before the shall notactasproxyforanyothermember. appoint single person as a proxy and such person of the total share capital carrying voting rightsmay rights. Amemberholdingmorethantenpercent total sharecapitaloftheCompanycarryingvoting in theaggregatenotmorethantenpercentof members notexceedingfiftyinnumberandholding Act, 2013,apersoncanactasproxyonbehalfof the provisions of Section 105 of the Companies resolution/authority, as applicable. Pursuant to societies, etc., must be supported by an appropriate Meeting. Proxies submitted on behalf of companies, before commencementoftheAnnualGeneral of theCompanynotlessthanforty-eighthours proxy shouldbedepositedattheRegisteredOffice of thecompany.Theinstrumentappointing himself/herself andaproxyneed not beamember a proxytoattendandonpoll,voteinsteadof general meeting(AGM)ofthecompanymayappoint 10. 9. TheRegisterofMembersandShareTransferBooks 8. Relevantdocumentsreferred to intheaccompanying 7. AstatementpursuanttoSection102(1)ofthe 6. Asameasureofausterity,copiestheAnnual 5. 5.

to the Investor Education and Protection Fund [IEPF] the paymentthereofassame willbetransferred years are requested to approach the Company for dividend warrants pertaining to the following financial Those memberswhohave not encashedtheir AGM. forty-eight (48) hours before commencement of the Domalaguda, Hyderabad-500029 by not less than Consultants Pvt.Ltd,RegisteredOffice:1-2-285, [both daysinclusive]. September 25,2019toMonday,30, of theCompanywillremainclosedfromWednesday, inspection bythemembersatAGM. 189 oftheCompaniesAct,2013,willbeavailablefor directors areinterested,maintainedunderSection The Register of Contracts or Agreements in which the available forinspectionbythemembersatAGM. Section 170oftheCompaniesAct,2013,willbe Personnel and their shareholding, maintained under AGM. TheRegisterofDirectorsandKeyManagerial Sundays and public holidaysuptothe date of the during business hours on all days except Saturdays, inspection attheRegisteredOfficeofCompany 102(1) oftheCompaniesAct,2013areavailablefor Notice and the statement pursuant to Section to betransacted at theAGMisannexedhereto. Companies Act,2013,relatingtotheSpecialBusiness Annual ReporttotheMeeting. are, therefore, requested to bring their copies of the Report willnotbedistributed attheAGM.Members - 2”onGeneralMeetings. as pertherequirementof“SecretarialStandards the 31stAGMisgivenalongwiththisAnnualReport A routemapshowingdirectionstoreachthevenueof

189 Annual Report 2018-19 190 VIVIMED LABS LIMITED 13. 12. 11. 2013 and the Rulesmadethereunder. on therespectivedatesmentionedthereagainstpursuanttoprovisionsofsection125CompaniesAct, (i) alternatives bywhichtheymay casttheirvotes: force), themembersareprovided withthefollowing and /orre-enactment(s)for thetimebeingin Regulations’ (includinganystatutory modification(s) Regulations, 2015 hereinafter referred to as ‘Listing Obligations and Disclosure Requirements), Rules, 2014andRegulation44oftheSEBI(Listing Companies (ManagementandAdministration) of theCompaniesAct,2013readwithRule20 In compliance with the provisions of Section 108 electronically. Annual Report,Notices,etc.,fromtheCompany ids forreceivingallcommunicationsincluding address sofararerequested to registertheiremail Members whohavenotregisteredtheiremail are beingsentinthepermittedmode. physical copies of the aforementioned documents members whohavenotregisteredtheiremailids, with theCompany/DepositoryParticipant(s).For the memberswhohaveregisteredtheiremailids Attendance SlipandProxyFormarebeingsentto AGM oftheCompany,AnnualReportalongwith Electronic copy of the Notice convening the 31st mca.gov.in the website of Ministry of Corporate Affairs www. 2018 onitswebsite:www.vivimedlabs.comand on Annual GeneralMeetingheld on September27th, Unclaimed Dividendsasonthedateof30th has uploadedtheinformationinrespectof with theCompanies]Rules,2012,Company regarding unpaid and unclaimed amountlying Pursuant totheIEPF[Uploadingofinformation Accounting Year By electronic means throughtheremote e-voting March 31,2018 March 31,2017 March 31,2014 March 31,2013 March 31,2012 ended Date ofdeclaration 28 Sep 2018 29 Sep 2017 30 Sep 2014 30 Sep 2013 27 Sep 2012 of dividend payment % Dividend 20% 20% 30% 30% 30% (ii) for votingthereafter. remote e-voting module will be disabled by CDSL 2019, maycasttheirvotebyremotee-voting.The as onthecut-offdate,i.e.Friday,September20, shares either in physical or dematerialized form, this period, members of the Company holding p.m. onSunday,September29,2019.During on Friday, September 27, 2019 and ends at 5:00 e-voting periodwillcommencefrom9:00a.m. through e-voting is annexed hereto. The remote platform provided by CDSL. The process for voting shall betreated asinvalid.Thefacilityfor through remote e-voting shall prevail and Ballot member castsvotebybothmodes, votingdone either throughremotee-voting or by Ballot. If a member can opt for only one mode of voting i.e. September 29, 2019 will be treated as invalid. A Ballot Formsreceived after 5.00p.m.onSunday, by mentioningtheirFolio / DPID and Client ID No. vivimedlabs.com [email protected] by sending an e-mail to yugandhar.kopparthi@ to request for physical copy of the Ballot Form i.e. Friday, September 20, 2019 have the option Meeting and holding shares as on the cut-off date the CompanyafterdispatchofNotice 29, 2019. Any person who becomes a member of not later than by 5.00 p.m. on Sunday, September No.2886), attheCorporateOfficeofCompany Company Secretary(MembershipNo.5868,CP Mr.N.V.S.S.Suryanarayana Rao,Practicing by theBoard of DirectorstheCompany, so as to reach the Scrutinizer appointed Ballot Form (enclosed with the Annual Report) e-voting facilitymaysendduly completed Members whodonothaveaccesstoremote Expected dateofdividendtransfer unpaid dividendtoIEPFAccount 28 Sep 2025 29 Sep 2024 30 Sep 2021 30 Sep 2020 27 Sep 2019 voting 16. 15. The voting rights of members shall be in proportion 14. Date ofAppointmentontheBoard Age Name oftheDirector Directors Inter-se relationshipsbetween Shareholding ofDirector Companies of Committeesacrosspublic Memberships /Chairmanships private Companies) Companies (excludingforeignand Directorships heldinotherpublic expertise infunctionalareas Brief resumeandnatureof Date ofAppointmentontheBoard Age Name oftheDirector form are, therefore, requested to submit PAN to market. Members holding shares in electronic Number (PAN) by every participant in securities mandated submissionofPermanentAccount The SecuritiesExchangeBoardofIndia(SEBI)has September 20,2019. in theCompanyasoncut-offdatei.e.Friday, to theirsharesofthepaid-up equitysharecapital cast theirvoteagain. attend theMeetingbut theyshallnotbeentitled to e-voting or by Ballot Form prior to the AGM may also Members whohavecasttheirvotesbyremote electronic meansisoptionalforthemembers. the meeting.Pleasenote that thevotingthrough e-voting shallbeabletoexercisetheirrightat Meeting who have not cast their vote by remote polling paperand the membersattending shall bemadeavailableattheAGMthrough 23/01/2008 58 years Mr.S.Raghunandan 3. BrotherssonofMr.SubhashVaralwar 2. BrotherofMr.SantoshVaralwar 1. SonofMr.ManoharRaoVaralwar, 30,60,965 equitysharesofC2/-each Committee Memberships:AuditofVivimedLabsLimited Nil Other Directorships: Labs Limited. Varalwar isappointedasawholetimeDirectorontheBoardofVivimed Pvt. Ltd.AftertheVVSmergerwithVivimedLabsLimited,Mr.Sandeep Company andtookanactiveroleinVVSPharmaceuticalsChemicals He isthemainstrengthbehindgrowthofPharmadivision industry. of richexperienceinmanufacturingandmarketingdivisionsPharma B.Pharmacy. Aftercompletionofgraduation,hegainedmorethan25years Mr.Sandeep Varalwar,aged50yearshascompletedhisGraduationin 23/01/2008 50 years Mr.Sandeep Varalwar 18. 17. Membersholdingsharesinsinglenameareadvised to AarthiConsultantsPvtLtd. shares in physical form can submit their PAN details maintaining theirdemataccounts.Membersholding their DepositoryParticipantwithwhomtheyare as under: rotation and being eligible seeking re-appointment is Governance) with respect to the Directors retiring by the Listing Regulations (relating to Corporate Information required under Regulation 36(3) of Depository Participantsforavailingthisfacility. in electronicmodemaycontacttheirrespective Company’s R&TAgent.Membersholdingshares No.SH-13 duly filledintoAarthiConsultantsPvtLtd, may sendtheirnominationintheprescribed Form shares inphysicalformdesiringtoavailthisfacility 72 oftheCompaniesAct,2013.Membersholding held bythempursuant totheprovisionsofSection to availthefacilityof nomination in respectof shares

191 Annual Report 2018-19 192 VIVIMED LABS LIMITED 19. Votingthroughelectronicmeans: Directors Inter-se relationshipsbetween Shareholding ofDirector Companies of Committeesacrosspublic Memberships /Chairmanships private Companies) Companies (excludingforeignand Directorships heldinotherpublic expertise infunctionalareas Brief resumeandnatureof a. b.

The businessesassetoutintheNoticemaybetransactedthroughelectronicvotingsystem.Incompliancewith compliance with Regulation 44 of the Listing Regulations, the Company is pleased to offer the facility of voting www.cdslindia.com. The members who have cast www.vivimedlabs.com and on the website of CDSL will bedisplayed on thewebsiteofCompany electronic meansisoptionalforthemembers. the meeting.Pleasenote that thevotingthrough e-voting shallbeabletoexercisetheirrightat Meeting who have not cast their vote by remote polling paperand the membersattending shall bemadeavailableattheAGMthrough the AGM[remotee-voting].Thefacilityforvoting cast theirvotesfromaplaceotherthanvenueof (India) Limited (CDSL) tofacilitatethemembers arrangements with Central Depository Services electronically. The Company has made necessary its memberstoenablethemcasttheirvotes through electronicmeans,asanalternate,toall and Administration] Rules, 2014, Standard 2 of the Secretarial Standards on General the provisionsofsection108 of theCompaniesAct,2013 read withtheCompanies[Management this notice for information not membersasonthecut-off dateshouldtreat e-voting orvotingattheAGM. Personswhoare date shallbeentitled to avail the facility ofremote maintained by the depositories as on the cut-off of membersorintheregisterbeneficialowners A personwhosenameisrecordedintheregister purpose only. The Notice NIL 3,17,500 equitysharesofC2/-each Committee Memberships:NIL Other Directorships:NIL Company isnowofmorethan27years. rose tothepositionofDirector-Operations.Hisassociationwith He joinedVivimedasHeadofproductionatBidarPlantandsubsequently production. of IbuprofeninIndiaandworkedtherehandlingvariousaspects career withChandraPharmaceuticals,atthattimethelargestproducer Mr.S.Raghunandan aged58yearsisaSciencePostGraduate,hebeganhis c. TheCompanyhasappointedMr.N.V.S. d. vote byelectronicmeans. USER IDand Password for exercisingtheirrightto may approachtheCompanyforissuanceof Report andholdingsharesasonthecut-offdate acquired shares after the dispatch of the Annual set forthintheNotice.Eligiblememberswhohave closure dateareentitled to voteonResolutions 2019 i.e. the date prior to commencement of book of Beneficial Owners as on Friday, September 20, names appearintheRegisterofMembers/List to casttheirvoteagain.TheMemberswhose also attendtheAGM,but shallnotbeentitled their vote by remote e-voting prior to AGM may

transparent manner. and votingprocessattheAGM inafairand as Scrutinizerforconductingtheremotee-voting Secretary (MembershipNo.5868,CP2886) Suryanarayana Rao, Practicing Company i. electronically areasunder: The instructionsforshareholders voting The votingperiod beginsontheFriday, Meetings and in Details Bank Dividend DOB PAN vii. iv. iii. ii. If youareafirsttimeuserfollowthestepsgivenbelow: a. Now EnteryourUserID Click onShareholders. e-voting website‘www.evotingindia.com’ The Shareholders should log on to the thereafter. module shallbedisabledbyCDSLforvoting may casttheirvoteelectronically.Thee-voting the cut-off date of Friday, September 20, 2019, physical formorindematerializedform,ason of the Company, holding shares either in p.m. (IST)during thisperiod,shareholders on the Sunday, September 29, 2019 at 5.00 September 27, 2019 at 9.00 a.m. (IST) and ends For CDSL:16digitsbeneficiaryID, number intheDividendBankdetailsfield asmentioned ininstruction(iv) If thedetailsarenotrecorded with thedepositoryorcompanypleaseentermemberid / folio the saiddemataccountorfolio.•PleaseenterDOBDividend Bank Detailsinorderto login. Enter theDividend Bank Detailsasrecorded in yourdemataccountorthecompanyrecordsfor records forthesaid demataccountorfolioindd/mm/yyyyformat. Enter thedateofbirthasrecordedinyourdemat accountorinthecompany • • demat ShareholdersaswellphysicalShareholders) Enter your10digitalpha-numeric *PANissuedbyIncomeTaxDepartment(Applicable forboth For MembersholdingsharesinDematFormandPhysical name isRameshKumarwithsequencenumber1thenenterRA00000001inthePANfield 0’s beforethenumberafterfirsttwocharactersofnameinCAPITALletters.Eg.Ifyour In casethesequence numberislessthan8digitsentertheapplicable numberof” number inthePANfield. requested tousethefirsttwolettersoftheirnameand the8digitsofsequence Members whohavenotupdated their PANwiththeCompany/DepositoryParticipantare vi. v. c. be used. company, thenyourexistingpasswordisto com and voted on anearliervotingofany and hadloggedontowww.evotingindia. If youareholdingsharesindematform displayed andClickonLogin. Next enter the Image Verification as b. with theCompany. should enterFolioNumberregistered Members holdingsharesinphysicalform 8 DigitsClientID, For NSDL:8CharacterDPIDfollowed by

193 Annual Report 2018-19 194 VIVIMED LABS LIMITED x. ix. viii. xvii. xvi. xv. xiv. xiii. xii. xi. resolutions containedinthisnotice. details canbeusedonlyfore-votingonthe For Membersholdingsharesinphysicalform,the care tokeepyourpasswordconfidential. password withanyotherpersonandtakeutmost It isstronglyrecommendednottoshareyour that companyoptsfore-votingthroughCDSLplatform. company onwhichtheyareeligibletovote,provided holders forvotingresolutionsofanyother password is to be also used by the demat in the new password field. Kindly note that this are required to mandatorily enter their login password now reach‘PasswordCreation’menuwhereinthey However, membersholdingsharesindematformwill then directlyreachtheCompanyselectionscreen. Members holding shares in physical form will “SUBMIT” tab. After enteringthesedetailsappropriately,clickon print” optionontheVoting page. done byyouclickingon “Clickhereto You canalsotakeoutprint ofthevoting modify yourvote. resolution, youwillnotbeallowedto Once you“CONFIRM”yourvoteonthe and accordinglymodifyyourvote. else tochangeyourvote,clickon“CANCEL” wish to confirm your vote, click on “OK”, confirmation boxwillbedisplayed. Ifyou decided tovoteon,clickon“SUBMIT”.A After selectingtheresolutionyouhave wish toviewtheentireResolutiondetails. Click onthe“RESOLUTIONSFILELINK”ifyou implies thatyoudissenttotheResolution. assent totheResolutionandoptionNO as desired.TheoptionYESimpliesthatyou “YES/NO” forvoting.SelecttheoptionYESorNO DESCRIPTION” andagainstthesameoption On thevotingpage,youwillsee“RESOLUTION on whichyouchoosetovote. Click on the EVSN for the Company Name If Demataccountholder has forgotten Item No.5: The Board of Directors at its meeting held on COMPANIES ACT,2013 STATEMENT PURSUANT TO SECTION 102(1) OF THE xix. xviii. Note for Non – Individual Shareholders and the detailsasprompted bythesystem. and click onForgotPassword &enter User IDand theimageverification the samepasswordthen Enterthe [email protected]. help sectionorwrite anemailto available atwww.evotingindia.com,under Questions (“FAQs”)ande-votingmanual e-voting, you may refer the Frequently Asked In caseyouhaveanyqueries orissues regarding • • • • • Custodians scrutinizer toverifythesame. in PDFformatthesystemfor Custodian, if any, should be uploaded they have issued in favour of the and PowerofAttorney(POA)which A scannedcopyoftheBoardResolution able tocasttheirvote. approval oftheaccountstheywould be [email protected] and on The listofaccountsshouldbemailedto which theywishtovoteon. would be able to link the account(s) for and password. TheComplianceuser user should be created using the admin login After receivingthelogindetailsacompliance cdslindia.com. should be emailed to helpdesk.evoting@ bearing thestampandsignofentity A scanned copy of the Registration Form and registerthemselvesasCorporates. required to log on to www.evotingindia.com Individuals, HUF, NRI etc.) and Custodian are Non-Individual Shareholder(i.e.otherthan code the company, liable to retire by rotation, on the terms Whole TimeDirectortowholetime directorcumCFOof designation of Mr.Raghunandan Srirambatla from of Directorsconsideredandapproved thechangein The Nomination&Remuneration CommitteeandBoard director cumCFOofthecompany. 30, 2015hasshownhiswillingnesstoactaswholetime ratified hisappointmentintheAGMheldonSeptember 2015 bytheBoardofDirectorsandMembershave Whole TimeDirectoroftheCompanyw.e.f.14thAugust Mr.Raghunandan Srirambatla who was appointed as Item No.6: The members are apprised that members. set outatItemNo.5oftheNoticeforapprovalby The BoardrecommendstheOrdinaryResolutionas their shareholding,ifany,intheCompany. out at Item No.5 of the Notice, except to the extent of interested intheproposedOrdinaryResolutionasset of the Company or theirrelativesis concerned or None of the Directors and Key Managerial Personnel 31st March,2020. the Company, if required, for the financial year ending Auditor forconducting theauditofcostrecords No.5 for ratification of remuneration payable to the Cost approving the Ordinary Resolution as set out at Item Accordingly, consentofthemembersissoughtfor of theCompany. payable toCostAuditorshallberatifiedbythemembers Records andAudit)Rules,2014,theremuneration (Audit andAuditors)Rules,2014Companies(Cost of the Companies Act, 2013 read with the Companies In accordancewiththeprovisionsofSection148(3) the audit. expenses at actuals, if any, incurred in connection with excluding GSTandreimbursementofoutpocket exceeding year ending31stMarch,2020,at a remunerationnot accounting records of the Company for the financial No.000326), astheCostAuditorforauditofcost M/s.A.S.Rao & Co, Cost Accountants (Firm Registration August 09, 2019, on the recommendations of the Committee, had approved the re-appointment of C1.1 lacs (Rupees One lac Ten thousand only) Audit resolution byshareholders. another termofuptofiveyears, onpassingofaspecial Company butshallbeeligible forre-appointment, a termuptofiveconsecutiveyears ontheBoardofa Act, 2013,anIndependentDirector shallhold office for As pertheprovisionsofSection 149oftheCompanies calender year2019. 5 years up to 31stAnnual General Meeting to be held in an IndependentDirectoroftheCompanyforaperiod the appointmentofProf.BhagvanthRaoMamidpallias General MeetingheldonSeptember30,2014approved Act, 2013,membersoftheCompanyat26thAnnual 149 andotherapplicableprovisionsoftheCompanies the CompanyonDecember12,2003.IntermsofSection 00117862) wasappointed as aDirectorontheBoard of Item No.7:Prof.BhagvanthRaoMamidpalli the approvalbymembersasSpecialResolution The Directorsrecommendtheaforesaid resolution for cum CFOofthecompany. of Mr.RaghunandanSrirambatlaaswholetimedirector concerned orinterestedintheproposedappointment of thecompanyandtheirrelatives,areinanyway None oftheDirectorsand/orKeyManagerialpersonnel mentioned intheLetterofAppointment. CFO of the company on such terms and conditions as from WholeTimeDirectortowholetimedirectorcum change in designation of Mr.Raghunandan Srirambatla recommended to the shareholders for their approval for Remuneration Committee & the Board, the matter is Based ontherecommendationofNomination& Companies Act.2013. ,203 and other applicable provisions, if any, of the the GeneralMeetingasperprovisionsofsection152 the company by way of 2018 and requires the approval of the Shareholders of Srirambatla assuchshalltakeeffectfrom14thNovember, the company.TheappointmentofMr.Raghunandan to appoint himaswholetimedirectorcumCFOof Hence, the Committee & the Board have proposed with effectfrom14thNovember,2018 and conditions as specified in the Appointment Letter Special Resolution passed in (DIN:

195 Annual Report 2018-19 196 VIVIMED LABS LIMITED and Environmental StudiesandDirector of Physical and UGC Affairs, Director ofRegional Center for Urban various positionincludingthe DeanofDevelopment been involved with Osmania University, Hyderabad in thermodynamics and biochemical engineering.Hehas in the fields of chemical reaction engineering, catalysis, He has over 35 years experience in research and teaching Education etc. Life MembershipintheIndianSocietyforTechnical of ChemicalEngineersandA.P.AcademySciences, associations includingFellowshipsintheIndianInstitute Japan. Hehasmembershipstovariousprofessional doctoral studies at Tokyo Institute of Technology, Institute ofSciences,Bangaloreand has donehispost holds anPhDinchemicalengineeringfromIndian Prof. BhagvanthRaoMamidpalli(aged75years) Rao Mamidpalliasmentioned in theresolution. approved the continuanceofofficeProf.Bhagvanth of DirectorsatitsmeetingheldonAugust09,2019 expertise ofProf.BhagvanthRaoMamidpalli,theBoard & Remuneration Committee and keeping in view the Based on the recommendations of the Nomination management. the SEBIListingRegulationsand is independentofthe as anIndependentDirectorspecifiedintheActand Mamidpalli fulfillstheconditionsforhisre-appointment In theopinionofBoard,Prof.BhagvanthRao under. Heisnotliabletoretirebyrotation. applicable provisionsoftheActandRulesmadethere in calendaryear2024termsofSection149andother year 2019 up to 36thAnnualGeneralMeeting to be held from 31stAnnualGeneralMeetingtobeheldincalendar an IndependentDirectoroftheCompanycommencing re-appointment ofProf.BhagvanthRaoMamidpallias The resolution seeks the approval of members for the and hisconsenttocontinueasanIndependentDirector. 2013 & Regulation 16(1)(b) of SEBI Listing Regulations prescribed underSection149(6)oftheCompaniesAct, that he meets with the criteriaofindependence as Director intermsofSection164theAct,declaration disqualified from beingre-appointed as anIndependent from Prof. Bhagvanth Rao Mamidpalli that, he is not The Companyhasreceived intimation inFormDIR-8 Journal ofChemicalEngineering,IndustrialEngineering credit some of which include articles in the Canadian Education. Hehasvariousresearchpublicationstohis in August, 2019), the Company is required to obtain provision beingagedmorethan 75years(justcompleted Director oftheCompanyiscovered undertheaforesaid Since Prof.BhagvanthRaoMamidpalli, Non-Executive same bywayofspecialresolution. unless approvalofMembershas beenobtainedforthe Non-Executive Directorinanylistedcompanyuntiland years ormorecannotbeappointedcontinued as a Non-Executive Directorwhohasattainedtheageof75 2018 effectivefromApril1,2019,requiresthatany Disclosure Requirements) (Amendment)Regulations, Regulation 17(1A)ofSEBI(ListingObligationsand Company. inspection by members at the Registered Office of the setting out the terms and conditions is available for Bhagvanth Rao Mamidpalli as an Independent Director Copy ofthedraftletterforre-appointmentProf. and recommended his re-appointment. Rao Mamidpalli, rated him satisfactory on all parameters Board evaluated the performanceofProf.Bhagvanth The Nomination&RemunerationCommitteeandthe of otherCompanies. 2018-19.He is not a Member /ChairmanofCommittees the seven(7)meetingsof the Board held during the year of AuditCommitteetheCompany.Hehasattendedall Corporate SocialResponsibilityCommitteeandMember of Nomination&RemunerationCommittee,Member other Directors/KMPs of the Company. He is the Member shares of Vivimed Labs Limited. He is not related to any Prof. Bhagvanth Rao Mamidpalli doesnot hold any Director. Vivimed Labs Limited.Heisnotrelated to anyother Responsibility CommitteeandAuditof and Remuneration Committee, Corporate Social Private Limited.HeisthememberofNomination He is also Director in Sanvita Biotechnologies to variouslaboratorieslikeIICT,BHELR&DNFCetc. Sciences (USA) etc. He also acts as a research consultant and ChemistryFundamentals (USA), Journal of Polymer not liabletoretire byrotation. provisions oftheActandRules madethereunder.Heis year 2024intermsofSection149 andotherapplicable to 36thAnnualGeneralMeeting tobeheld in calendar General Meeting to be held in calendar year 2019 up Director of the Company commencing from 31st Annual re-appointment ofMr.NixonPatel asanIndependent The resolution seeks the approval of members for the continue asanIndependentDirector. 16(1)(b) ofSEBIListingRegulationsandhisconsentto Section 149 (6) of the Companies Act, 2013 & Regulation with the criteria of independence as prescribed under of Section 164 of the Act, declaration that he meets being re-appointed as an Independent Director in terms from Mr.NixonPatelthat,heisnotdisqualified The CompanyhasreceivedintimationinFormDIR-8 resolution byshareholders. another termofuptofiveyears,onpassingaspecial Company butshallbeeligibleforre-appointment, a termuptofiveconsecutiveyearsontheBoardof Act, 2013,anIndependentDirectorshallhold office for As pertheprovisionsofSection149Companies 2019. 31stAnnual GeneralMeetingtobeheld in calendaryear Director of the Company for a period of 5 years up to appointment ofMr.NixonPatelasanIndependent Meeting held on September 30, 2014 approved the members oftheCompanyat26thAnnualGeneral applicable provisions ofthe Companies Act, 2013, on June28,2010.IntermsofSection149and other appointed as a Director on the Board of theCompany Item No.8:Mr.NixonPatel(DIN:01717281)was Resolution. No.7 forapprovalofthemembers,bywaySpecial Board recommends the resolution set-forth in Item the resolution. way, concernedorinterested,financiallyotherwise,in Rao Mamidpalli,towhomtheresolutionrelates,isinany Company and / or their relatives except Prof. Bhagvanth None oftheDirectorsorKeyManagerialPersonnel continuing hisDirectorship in theCompany. approval of Members by way of special resolution for and facilities. Ithas beenapioneerin developing TTS and dash held devices facilitating multi-facet features products whichcanbeuseddaily intermsofhandheld Vision ofthecompanyis to deliver state of the art to about 110 employeesin a short span of 20 months. and contactcentertechnologies. Yantrateamhasgrown services inspeechintegration,Interactivevoiceresponse offering speech technology products, solutions and Yantra Softwareisaproducts andIPfocused company Founder, Chairmanand MD September2008toPresent yantrasoftware.com) YantraSoft Inc/YantraSoftware(P)Ltd(www. PROFESSIONAL EXPERIENCE: motivational leadership. thinking, andexcellenceinexecutionwithacapacityfor is knownforcontagiouspassioninnovation,visionary professional withahighdegreeofpersonalintegrity.He He isrecognizedbyclientsandcolleagues,aconsummate these products. to solve complex problems and thereby help monetize conceptualize &createinnovativeproductsand services, Marketing &BusinessDevelopmentteamsto world classBoardmembers,research&development, deep networking and relationships toattract,create a shortspanof22years.Anexemplaryexecutivewith Pharmaceutical and Renewable energyindustries,in across theglobeinInformationTechnology,Telecom, with largetechnologyandoperationsorganization 5 businesses from startup to millions in annual sales entrepreneur with a proven track record for growing Mr. Nixon Patel, is a business oriented successful the resolution. continuance of office of Mr.Nixon Patel as mentioned in at itsmeetingheldonAugust09,2019approvedthe expertise of Mr.Nixon Patel, the Board of Directors & Remuneration Committee and keeping in view the Based on the recommendations of the Nomination Regulations and is independentofthemanagement. Director asspecifiedintheActandSEBIListing conditions for his re-appointment as an Independent In the opinionof the Board, Mr.Nixon Patel fulfills the

197 Annual Report 2018-19 198 VIVIMED LABS LIMITED Hyderabad toprovidetechniques forconsistentdelivery an ecommerceTechnology competency centrein based eComServer Inc.,wassuccessfullylaunched eComServer awhollyowned subsidiaryofUS President &CTO December 1998–February2002 eComServer India(P)Ltd/Inc. SEI CMMLevel4andISO9001:2000certified. across its locations in a short span of time, and also is a Bhrigus reached a teamsizeofcloseto300employees Business Intelligencesolutions. develop, andmanagetheirEnterpriseapplications and Bhrigus’ consultantsworkwiththeclientstodesign, Enterprise Solutions. With offices in India, UK and USA,. of VoiceandSpeechbasedtechnologyofferings Bhrigus is a Global Services and Solutions provider bhrigus.com) February2002–December2007 Bhrigus SoftwareIndia(P)Ltd/Inc.(www. through affordablestateofthearttechnologies. to theremotestregionswithincountryandabroad to provideaccessibilityofexpertmedicalpractitioners in thefield of telemedicineand bio-technology and a goal to improvepublichealthbysettingthehigheststandards prominent associations. Mission of the company is strive Wockhardt Hospitals–Mumbai,andmanymore of deriving and developing Oncology Telemedicine, association withtheGujaratCancerResearch,interms networks. Ithasbeencurrentlyworkingin close products and services through telecommunication company focusedinTelemedicineprovidinghealthcare Medisoft Telemedicineisaresearchanddevelopment Chairman com) Medisoft Telemedicine(www.medisofttelemedicine. ASR products. search engine products complimentary to the TTS and also hascreatedspeechbiometricsandmulti-lingual leading Universities and Institutions for the masses. It and ASR for Indian languages in collaboration with January 2008–May2009 Relationship, Grievance and Share Transfer Committee Remuneration Committee, and Member of Stakeholders of the Company. He is the Chairman of Nomination & Limited. Heisnotrelatedtoany otherDirectors/KMPs Mr.Nixon Pateldoesnotholdany sharesofVivimedLabs (India) PrivateLimited. Solutions IndiaPrivateLimited And 6. QulabsSoftware Research LabsIndiaPrivateLimited,5.KovidAnalytics Institute of Renewable Energy Private Limited, 4. Kovid 2. KovidGroupAnalyticsIndiaPrivateLimited,3.Takshila He isalsoDirectorsin1.YantraSoftwarePrivateLimited, Member ofIEEE–ISTO Charter MemberofTiE American InstituteOFChemicalEngineers(AICHE) Association ComputingMachinery(ACM) Member ofVoiceXmlforum Member atW3C Group (VBWG) Advisory CommitteeMemberatVoiceBrowserWorking Consortium (W3C) Advisory CommitteeMemberatWorldWideWeb MEMBERSHIPS &INDUSTRYAFFILIATIONS Technology MS inComputer SciencefromNewJerseyInstituteof Kharagpur –India B.Tech. (Hons)fromIndianInstituteofTechnology, EDUCATION company) and wasacquiredbySilverlineTechnologies(NYSElisted in 4yearswithGlobalpresenceUS,SpainandIndia, eComServer was groomed to a 500 people company Chief Minister,Mr.ChandraBabu Naidu. Towers, Hyderabad and was inaugurated by Former company totakepossessionofanofficespaceinCyber including RUP(rationalunifiedprocess).Itwasthefirst of softwareproductsbasedonRational’sStandards None oftheDirectorsorKeyManagerialPersonnel the RegisteredOfficeofCompany. and conditions is available for inspection by members at Patel as an Independent Director setting out the terms Copy ofthedraftletterforre-appointmentMr.Nixon recommended hisre-appointment. Patel, ratedhimsatisfactoryonallparametersand the BoardevaluatedperformanceofMr.Nixon The Nomination & Remuneration Committee and Member /Chairmanof Committees ofotherCompanies. of theBoardheldduring theyear2018-19.Heisnota of theCompany.Hehasattendedone(1)meeting Date: 09.08.2019 Place: Hyderabad Resolution. No.8 forapprovalofthemembers,bywaySpecial Board recommends the resolution set-forth in Item resolution. concerned orinterested,financiallyotherwise,inthe Patel, to whom the resolution relates, is in any way, the Companyand / ortheirrelativesexceptMr.Nixon for VivimedLabsLimited By orderoftheBoard Company Secretary K.Yugandhar Sd/-

199 Annual Report 2018-19 200 VIVIMED LABS LIMITED assent ordissenttothesaid Resolutions byplacingthetick(√)markinappropriateboxbelow: 8. I/Weherebyexercisemy/ourvote(s)inrespectoftheResolutionsenumeratedbelowbyrecording,my/our 7. Password: 6. User-ID: (Remotee-VotingEventNumber) 5. REVEN/Sequencenumber 4. Numberofsharesheld sharesindematerialised form) (Applicable toinvestorsholding DPIDNo.andClientNo. 3. Registered Folio Number/ 2. Name(s)ofJointHolder(s),ifany oftheSole/FirstnamedMember 1. Name(s)and Registered Address (SignatureoftheShareholder) Date: 09.08.2019 ______Place: Hyderabad 1 Ordinary Business: 8 7 6 5 Special Business: 4 3 2 No. Sr. To appointMr.NixonPatelasanIndependentDirector. Director. To appointProf.BhagvanthRaoMamidpalliasanIndependent time directortowholecumCFOofthecompany Change indesignationofMr.RaghunandanSrirambatlafromwhole To ratifytheremunerationpayabletocostauditor Accountants, Hyderabadasstatutoryauditors To ratifytheappointmentofM/s.PCN&Associates,Chartered who retiresbyrotationandbeingeligibleoffersforreappointment. To appointDirectorinplaceofMr.SandeepVaralwar[DIN:01682951], ended March31,2019andReportofAuditorsthereon. ended onMarch31,2019,CashFlowStatementfortheFinancialYear March 31,2019,StatementofProfitandLossfortheFinancialYear To receive,considerandadopttheConsolidatedBalanceSheetasat ended March31,2019andreportsofDirectorsAuditorsthereon. ended onMarch31,2019,CashFlowStatementfortheFinancialYear March 31,2019,StatementofProfitandLossfortheFinancialYear To receive,considerandadopttheStandaloneBalanceSheetasat Registered office:PlotNo.78-A,KolharIndustrial Area,Bidar,Karnataka585403 Particulars : : : CIN: L02411KA1988PLC009465 VIVIMED LABSLIMITED : : BALLOT FORM Shares No. of held I/We assent Resolutions FOR to the I/We dissent AGAINST Resolutions to the

201 Annual Report 2018-19 202 VIVIMED LABS LIMITED g. f. e. d. c. b. a. Process andmannerformembersoptingtovotebyusingtheballotform 4. 3. 2. 1. GENERAL INSTRUCTIONS Note: Pleasereadtheinstructionsprintedoverleafcarefullybefore exercising yourvote. The decisionoftheScrutinizeronvalidityBallotForm and any otherrelatedmatter shallbefinal. verified. to identifyeithertheMemberoraswhethervotesarein favouroragainstifthesignaturecannotbe be rejectedifitisreceivedtorn,defacedormutilated to anextentwhichmakesitdifficultfor theScrutinizer Unsigned, incomplete,improperlyorincorrectlytickmarkedBallot Formswillberejected.TheFormalso Form should reach theScrutinizernotlaterthandateand time specified in serialno.babove A Membermayrequest foraduplicateBallotForm,ifsorequired. However,dulyfilled in andsigned duplicate authorizing theirrepresentative. accompanied by acertified true copyoftherelevantBoardResolutiontogetherwiththeirspecimensignatures In casethesharesareheldbycompanies,trusts,societies,etc.dulycompleted Ballot Formshould be attested copy ofthePOA.ExercisevotebyBallotisnotpermitted through proxy. of aMember,mentioningtheregistrationnumberPOAregisteredwithCompanyorenclosingan and inhis/herabsence,bythenextnamedjointholder.APowerofAttorney(POA)holdermayvoteonbehalf Depositories. Incaseofjointholding,theFormshouldbecompletedandsignedbyfirstnamed Member The Formshould be signed by theMemberasperspecimensignatureregisteredwithCompany/ Company onorbeforeSunday,September29,2019(5.00p.m.). Limited, NorthEnd,RoadNo.2,BanjaraHills,Hyderabad -500034 appointed bytheBoardofDirectors so astoreachtheScrutinizer,Mr.N.V.S.S.SuryanarayanaRao,PracticingCompanySecretaryatVivimedLabs PleasecompleteandsigntheBallotFormreturnforminself-addressed Business Replyenvelope Owners asonFriday,September20,2019. Voting rightsarereckonedonthebasisofsharesregistered in thenamesofMembers/Beneficial Limited, wherethesharesofCompanyarelisted. on Monday,September30,2019andcommunicatedtotheBSELimited National StockExchangeofIndia evotingindia.com withinthree(3)daysofthepassingResolutionsatAGMCompanytobeheld vivimedlabs.com and on thewebsiteofCentralDepositoryServicesLimited (CDSL), https://www. The resultsdeclaredalongwithScrutinizerʼsReport,shallbeplacedontheCompanyʼswebsitewww. ballot todeclarethefinalresultforeachofresolutionsformingpartNoticeAGM. The scrutinizerwillcollatethevotesdownloaded from theremotee-votingsystemandvotesreceivedthrough as invalid. casts votesbybothmodes,thenvotingdonethroughremotee-votingshallprevailandballotbetreated A Membercanoptforonlyonemodeofvotingi.e.eitherthroughremotee-votingorbyBallot.Ifa This BallotFormisprovidedforthebenefitofMemberswhodonothaveaccesstoremotee-votingfacility. Signature:…………….,……………………………...... …. orfailinghim Signature:…………….,……………………………...... …. E-mailId:…………………………………………………...... …………. ………………………………………………...... …………. Address:…………………………………………………...... …………. 3. Name:………………………………………...... ………. orfailinghim Signature:…………….,……………………………...... …. E-mailId:…………………………………………………...... …………. ………………………………………………...... …………. Address:…………………………………………………...... …………. 2. Name:………………………………………...... ………. orfailinghim Signature:…………….,……………………………...... …. E-mailId:…………………………………………………...... …………. ………………………………………………...... …………. Address:…………………………………………………...... …………. 1. Name:………………………………………...... ………. sharesoftheabovenamedcompany,herebyappoint I/We, beingthemember(s)of………...... …………. DP ID:...... Folio No/ClientId:...... E-mail Id:...... Registered address:...... Name ofthemember(s):...... [Pursuant toSection105(6)oftheCompaniesAct,2013readwithRule19(3) Registered office:PlotNo.78-A,KolharIndustrial Area,Bidar,Karnataka585403 (Management andAdministration)Rules,2014] CIN: L02411KA1988PLC009465 VIVIMED LABSLIMITED PROXY FORM

203 Annual Report 2018-19 204 VIVIMED LABS LIMITED ed below: Area, Bidar–585403,KarnatakaStateand at anyadjournmentthereofinrespectofsuchresolutionsasareindicat of thecompany,tobeheldonMonday,30thdaySeptember2019at11.30a.m.78/A,KolharIndustrial as my/ourproxytoattend and vote (onapoll)forme/usandonmy/ourbehalfatthe31stAnnualgeneralmeeting Company, notlessthan48hoursbeforethecommencementof theMeeting. This formofproxyinordertobeeffectiveshould be dulycompletedanddepositedatthe Registered Office ofthe Note: Signature ofProxyholder(s)………………………………… Signature ofshareholder……………………………………… Signed this…………..dayof………………………….2019 Special Business: Ordinary Business: Resolution No(s). 8 7 6 5 4 3 2 1 To appointMr.NixonPatelasanIndependentDirector. To appointProf.BhagvanthRaoMamidpalliasanIndependentDirector. director towholetimecumCFOofthecompany Change indesignationofMr.RaghunandanSrirambatlafromwholetime To ratifytheremunerationpayabletocostauditor. Accountants, Hyderabadasstatutoryauditors.. To ratifytheappointmentofM/s.PCN&Associates,Chartered who retiresbyrotationand being eligibleoffersforreappointment. To appoint DirectorinplaceofMr.SandeepVaralwar[DIN:01682951], March 31,2019andReportofAuditorsthereon. on March31,2019,CashFlowStatementfortheFinancialYearended March 31, 2019, Statementof Profit and Loss for the Financial Yearended To receive,considerandadopttheConsolidatedBalanceSheetasat 31, 2019andreportsofDirectorsAuditorsthereon. March 31,2019,CashFlowStatementfortheFinancialYearended 31, 2019, Statement of Profit and Loss for the Financial Year ended on To receive,considerand adopt theStand alone BalanceSheetasatMarch Resolutions For Vote (Optional) Revenue Stamp Affix Against - SHAREHOLDER(S) MAYOBTAINADDITIONALSLIPATTHEVENUEOFMEETING. PLEASE COMPLETETHISATTENDANCESLIPANDHANDITOVERATTHEENTRANCEOFMEETINGHALL.JOINT 78/A, KolharIndustrialArea,Bidar–585403,KarnatakaonMonday,30thdayofSeptember2019at11.30a.m. I/We herebyrecord my/our presenceatthe31 (To bepresentedattheentrance) DP ID______Regd. Office:PlotNo.78-A,KolharIndustrialArea,Bidar–585403,Karnataka Email: [email protected],Website:vivimedlabs.com, Tel: 08482-232045,Fax:–232436 CIN: L02411KA1988PLC009465 VIVIMED LABSLIMITED st ANNUALGENERALMEETINGoftheCompanyatRegistered office: ATTENDANCE SLIP Folio No./ClientID______Signature oftheMember/Proxy ______

205 Annual Report 2018-19 206 VIVIMED LABS LIMITED Institute of Medical Naubad Bidar X Road BUS Stand Hyderabad Road Gulbarga Road ROUTE MAPTOAGMVENUE Railway Gate Vivimed LabsLimited Kolhar IndustrialArea towards Gulbarga NOTES NOTES

VIVIMED LABS LIMITED (CIN: L02411KA1988PLC009465) Plot No. 78-A, Kolhar Industrial Area, Bidar, Karnataka - 585403

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