DIL Limited (''the Company'') is in the business of renting properties,
motion film production and distribution and in treasury operation. The
Company also has strategic investments in subsidiary / associates
companies primarily dealing in manufacturing of bulk drugs and contract
research services and providing services of sporting and health
awareness/ education activities.
2. (a) During the previous year, the Company has executed a Share
Purchase and a Shareholder''s Agreement (Agreements) on August 31, 2009
with Evotec AG and transferred 2,54,94,000 equity shares of Rs. 2/-
each. i.e. 70% of the paid up equity share capital of Evotec (India)
Pvt. Ltd. (EIPL) (formerly known as Research Support International
Private Limited (RSIPL)) for a consideration of Rs. 1,117.71 Lakhs, as
a result of which w.e.f. September 1, 2009 EIPL and it''s wholly owned
subsidiary Evotec RSIL Limited (ERL) are no longer subsidiaries of the
Company. Accordingly, the Company''s interest in EIPL/ERL has been
accounted as “Interest in Associate Company” in the consolidated
During the current year, the Company has received an earn out of Rs.
413.55 Lakhs based on achievement of “ Earn Out Revenue” during the
twelve months period ending on 31st August,2010 as per the terms
stipulated in the aforesaid agreement.
(b) During the current year, the Company agreed with its subsidiary -
Fermenta Biotech Ltd. (''FBL'') to convert the 7,00,000 redeemable non
convertible preference shares of Rs. 10. each together with share issue
premium of Rs. 90. each invested in FBL to Redeemable convertible
preference shares and waived the additional premium that was due
pursuant to the preference share issue document. Subsequent to this,
these preference shares have been converted into 70,00,000 equity
shares of Rs. 10 each at face value of FBL.
(c) During the current year, the Company along with its subsidiary
Fermenta Biotech Limited (FBL) has executed agreement with Evolence
India Life Sciences Fund LLC (EILSF). Accordingly transaction was
completed on January 17, 2011, whereby EILSF has acquired 21.05% Equity
Capital of FBL through sale of 19,15,036 FBL equity shares by the
Company to EILSF and issue of an equal number of fresh equity shares by
FBL to EILSF at a price of Rs. 104.44 per equity share of Rs. 10 each.
(d) During the current year, the Company has invested Rs. 225 Lakhs for
15,96,892 equity shares of Rs. 10 each of Health and Wellness India
Pvt. Ltd (HWIPL) Bangalore. HWIPL is in the business of providing
services on sporting activities, health awareness and health education.
With the aforesaid investment, Company holds 30.30% Equity Capital of
HWIPL. Accordingly, the Company''s interest in HWIPL has been accounted
as “ Interest in Associate Company” in the consoli- dated financial
March 31, March 31,
Rs. in Rs. in
3.(b) Contingent liabilities, including 1.12 16.29
amounts not provided for pertaining to
excise duty, sales tax and service
tax matters in respect of earlier years
for which appeals are pending before
appropriate authorities. Future cash
outflows in respect of this contingent
liabilities are determinable only on
receipt of judgments pending at various
forums / authorities.
(c) Company has invested an aggregate of Rs. 188.51 Lakhs in VasKo
Glider s.r.o. Czechoslovakia, a joint venture. Out of the above, Rs.
1.96 Lakhs (Czech Koruna 1 Lakh) is towards basic capital and Rs.
186.55 Lakhs (Czech Koruna 95.24 Lakhs) is towards voluntary additional
contribution to capital. VasKo Glider is involved in manufacture of
wheelchairs based on Levitation Movement Technology, acquired from the
joint venture partner under the Technology transfer agreement with
effect from March 18, 2005 and the patent of which is registered in
Czechoslovakia in the name of the joint venture partner. The joint
venture partner has applied for registration of patent in various
countries and the same has been registered in USA, India and Australia.
4. Related party disclosures
a. Parties where control exists
Mr. Krishna Datla - Managing Director, Party controlling holding
DVK Investments Private Ltd
1. Aegean Properties Ltd.
2. CC Square Films Limited (w.e.f. December 27, 2010)
3. Fermenta Biotech Ltd.
4. Fermenta Biotech (UK) Ltd. (100% subsidiary of Fermenta Biotech
5. G. I. Biotech Private Ltd. (62.50% subsidiary of Fermenta Biotech
6. Evotec (India) Pvt. Ltd. (formerly known as Research Support
International Private Limited upto August 31, 2009)
7. Evotec – RSIL Ltd. (subsidiary of Research Support International
Private Limited) upto August 31, 2009 merged with Evotec (India)
Private Ltd w.e.f. January 1, 2010 #
b. Other related party relationships where transactions have taken
place during the year
VM Cafe de Art Private Ltd.
Key Management Personnel
1. Mr. Krishna Datla - Managing Director
2. Mr. Satish Varma - Executive Director (upto May 31, 2010)
c. Joint Venture
VasKo Glider s.r.o. **
1. Evotec (India) Pvt. Ltd .(formerly known as Research Support
International Private Ltd.) (w.e.f. September 1, 2009)
2. Evotec RSIL Ltd. (subsidiary of Evotec (India) Pvt. Ltd.) (w.e.f.
September 1, 2009) merged with Evotec (India) Private Ltd w.e.f.
January 1, 2010 #
3. Health and Wellness India Private Ltd (w.e.f. March 15, 2011)
e. Related party relationship is identified by the Company on the
basis of available information
8. Employee Benefits
ix) a) The discount rate is considered based on market yield on
government bonds having currency and terms consistent with the currency
and terms of post-employment benefit obligations.
b) Expected rate of return on assets assumed by the Insurance Company
is generally based on their investment pattern as stipulated by the
Government of India.
c) The estimates of rate escalation in salary considered in the
actuarial valuation take in to account inflation, seniority promotion
and other relevant factors including supply demand in the employment
d) The Company is expected to contribute to the Gratuity fund during
2011-12 Rs. 1.50 Lakhs (2010- Rs. Nil during 2010-11).
9. Previous year''s figures have been regrouped wherever necessary.