1.1 Shares allotted as fully paid up by way of Bonus Shares for the
Period of five years immediately preceding 31st March,2012;
The Company allotted 5,76,33,250 Equity Shares as fully paid-up Bonus
Shares by utilization of Securities Premium in April 2007 except this
no shares have been allotted by way of bonus during the preceding
period of the five years.
1.2 Rights, preferences and restrictions attached to the Ordinary
The Shares of the Company, having par value of Rs.1.00 per share, rank
pari passu in all respects including voting rights and entitlement to
Terms and Conditions of Options Granted
Each Option entitles the holder thereof to apply for and be allotted
one Equity Shares of the Company of Rs.1.00 each upon payment of the
exercise price during the exercise period. The exercise period
commences from the date of vesting of the Options and expires at the
end of three years from the date of vesting in respect of Options
granted under the Suven Employee Stock Option Scheme -2004
The vesting period for conversion of Options is as follows:
On completion of 24 months from the date of grant of the Options: 25%
vests On completion of 36 months from the date of grant of the Options:
35% vests On completion of 48 months from the date of grant of the
Options: 40% vests
The Options have been granted at the ''market price'' as defined from
time to time under the Securities and Exchange Board of India (Employee
Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines,
Capital Work in progress for the year 2011-12 Rs.2735.65 lakhs (Previous
year Rs.335.62 lakhs)
Depreciation on R & D Equipment of Rs.254.74 lakhs has been added to R &
D Expenses (Previous Year Rs.246.02 lakhs) Amalgamated Assets pertains to
M/s. Suven Nishtaa Pharma Pvt. Ltd.
* depredation for the year includes depreciation on account of
amalgamation for a period of 3 months.
In accordance with Accounting Standard 15 Employees Benefits, the
Company has classified various benefits provided to employees as under:
b) Other Employee Benefit Plan
The liability for Leave Encashment as at the year end is Rs.186.70 Lakhs
(previous year Rs.142.06 Lakhs) and the assumptions are as same as above.
2.1 Contingent Liabilities
(Rs. in lakhs)
Particulars Year Ended Year Ended
given on behalf
of Suven Nishtaa Pharma
Private Limited Nil 2375.00
Un expired Letters of Credit 358.71 478.31
Disputed Service Tax demands
against which company is in appeal Nil 38.25
Disputed VAT demands against
which company is in appeal Nil 7.53
2.2 Capital commitments not provided for on account of pending
execution [net of advance Rs.225.19 Lakhs (Previous year Rs.2.80 Lakhs)]
2.3 During the year Unclaimed Dividend pertaining to 2003-04 amounting
to Rs.0.91 Lakhs has been transferred to Investor Education and
Protection Fund. There are no amounts due and outstanding to be
credited to the Investor Education and Protection Fund as of 31st March
2012 (Previous year Nil).
2.4 There are no delays in payments to Micro and Small enterprises as
required to be disclosed under the Micro, Small and Medium Enterprises
Development Act, 2006. The information regarding Micro and Small
enterprises has been determined to the extent such parties have been
identified on the basis of information available with the Company.
This has been relied upon by the Auditors.
The Company has paid a minimum remuneration of Rs.4.00 Lakhs per month to
Mr. Venkateswarlu Jasti, Chairman & CEO of the Company and Rs.3.05 Lakhs
per month to Mrs. Sudha Rani Jasti, Whole-time Director of the Company
for the financial year ending 31st March 2012.
The above remuneration excludes provision for gratuity, since the
liability is determined for all the employees on an independent
actuarial valuation basis. The specific amount of gratuity Directors
cannot be ascertained separately.
2.5 National Savings Certificates to the extent of Rs.3,000/- have been
pledged with Government Authorities.
2.6 Employee Stock Option Scheme
The Company instituted the Employees Stock Option 2004 plan for all
eligible employees. The Scheme covers all eligible employees of Suven
Life Sciences Limited and its subsidiary.
2.7 Excise Duty amounting to Rs.18.38 Lakhs on Closing Stock of finished
Goods has been provided during the year to comply with '' Guidance Note
on Accounting treatment for Excise duty'' issued by Institute of
Chartered Accountants of India.
2.8 Hedging and Derivatives
Company has entered into Forward Exchange contract, being derivative
instruments for hedging purpose and not intended for trading or
speculation purposes, to establish the amount of currency in Indian
Rupees required or available at the settlement date of certain payables
and receivables. The following are the outstanding Forward Exchange
Contracts as on 31st March 2012, entered into by the company;
A) Primary Segment:
Segments have been identified and reported taking into account the
nature of products, the differing risk and returns, the organization
structure, and the internal financial reporting scheme. The company has
identified the following segments as its reportable segments:
a) Manufacturing (CRAMS)
b) Services (DDDSS)
c) Research and Development
I. Manufacturing (CRAMS) - Bulk Drugs & Intermediates under contract
services products are developed and produced on an exclusive basis
under contract manufacturing services
II. Services (DDDSS) - Which consists of Collaborative Research
Projects (CRP), Clinical Trials and Testing and Analysis services
B) Secondary Segment:
The Company has identified the following geographical reportable
a) India-The Company sells Bulk Drugs and Intermediates and Fine
b) U.S.A -The Company sells Intermediates
c) Europe--The Company sells Bulk Drugs and Intermediates
d) Others-The Company sells Bulk Drugs and Intermediates
* Capital expenditure related to Amalgamation of Suven Nishtaa Pharma
A) Related Parties
1. Subsidiary : Suven Nishtaa Pharma Pvt. Ltd
2. Key Managerial Personnel : Mr. Venkateswarlu Jasti
Mrs. Sudha Rani Jasti
Note: Figures in bracket indicates previous year figures
NOTE 3: AMALGAMATION OF M/S. SUVEN NISHTAA PHARMA PVT. LTD.
In terms of the Scheme of Amalgamation & Arrangement (Scheme) approved
by orders dated 10.07.2012 of Hon''ble High Court of Andhra Pradesh,
M/s. Suven Nishtaa Pharma Private Limited (Nishtaa) a wholly owned
subsidiary whose core business is to carry on the business of
Pharmaceutical Formulations contract services has been amalgamated with
the Company with effect from 1st January, 2012.
The amalgamation has been accounted for under the Pooling of Interest
Method as prescribed by Accounting Standard (AS-14) Accounting for
Amalgamation issued by the Institute of Chartered Accountants of
In accordance with the said scheme all the assets, debts, liabilities,
duties and obligations of Nishtaa have been vested in the Company
with effect from 1st January, 2012 and have been recorded at their
respective book values under pooling of Interest method of accounting
for amalgamation. There were no differences in the accounting policies
of Nishtaa and the Company.
On account of the Amalgamation of M/s. Suven Nishtaa Pharma Private
Limited with the company w.e.f 01.01.2012, previous year figures are
not comparable with the current year figures.
Previous year figures have been regrouped and reclassified wherever
considered necessary to conform to this year''s classification.