Note 1 : Significant Accounting Policies:

A Company Background

Brooks Laboratories Limited was incorpoated on 23rd January, 2002. The Company has set up a manufacturing plant at Baddi, Himachal Pradesh. The Company is a pharmaceutical manufacturing company working on contract basis and have a strong brsence in the pharmaceutical market.

B Basis of Accounting:

a) The Financial Statements have been brpared in compliance with the Accounting Standards specified under section 133 of the Company Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

b) Financial Statements are based on historical cost convention and are brpared on accrual basis.

C Use of Estimates:

The brparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the financial statements and the reported amounts of revenues and expenses during the reporting period.

Difference between actual results and estimates are recognized in the periods in which the results are known / materialize.

D Revenue Recognition

i) Revenue is recognised when it is earned and no significant uncertainty exists as to its realisation or collection.

ii) Interest is recognised on a time proportion basis taking in to account the amount outstanding and the rate applicable.

iii) Dividend income is recognised when right to receive the same is established.

E Fixed Assets:

Fixed Assets are stated at actual cost less accumulated debrciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

F Impairment of Fixed Assets

At the end of each year, the Company determines whether a provision should be made for impairment loss on fixed assets by considering the indication that an impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets". Where the recoverable amount of any fixed assets is lower than its carrying amount, a provision for impairment loss on fixed assets is made for the difference.

G Debrciation:

Debrciation on Fixed Assets has been provided on 'Straight Line Method' as per the useful life and in the manner brscribed in the Schedule II of the Companies Act, 2013.

H Inventories

Inventories are valued as follows:

i) Finished Goods are valued at lower of cost or net realisable value*.

ii) Raw Material are valued at lower of cost or net realisable value**.

iii) Packing Materials are valued at cost or net realisable value**.

iv) Work in process is valued at lower of cost or net realisable value**. * Cost is arrived at on retail method.

** Cost is arrived at on weighted average cost method.

I Investments

Investments that is intended to be held for more than a year from the date of acquisition are classified as long term investments and are carried at cost less any provision for other than temporary diminution in value. Investments other than long term investments being current investments are valued at cost or fair market value whichever is lower

J Employee Benefits

i) Company's contribution to Provident Fund and other Funds for the year is accounted on accrual basis and charged to the Statement of Profit & Loss for the year.

ii) Retirement benefits in the form of Gratuity & Leave Encashment are considered as defined benefit obligations and are provided on the basis of the actuarial valuation, using the projected unit credit method as at the date of the Balance Sheet.

K Provisions and Contingent Liabilities

i) Provisions are recognized in terms of Accounting Standard 29- "Provisions, Contingent Liabilities and Contingent Assets in accordance with the Accounting Standard specified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 when there is a brsent legal or statutory obligation as a result of past events where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

ii) Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

iii) Contingent Liabilities are disclosed by way of notes.

L Foreign Currency Transactions

i) The transactions in foreign currencies on revenue accounts are stated at the rate of exchange brvailing on the date of transactions.

ii) The difference on account of fluctuation in the rate of exchange, brvailing on the date of transaction and the date of realisation are recognised as Income or Expenses.

iii) Differences on translation of Current Assets and Current Liabilities remaining unsettled at the year-end are recognised as Income or Expenses.

M Government Grants

Subsidy for acquiring certain fixed assets is deducted from their respective cost. N Accounting for Taxation of Income Current Taxes

Provision for current income-tax is recognized in accordance with the provisions of Indian Income- tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions.

Deferred Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the Balance Sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. Deferred tax assets are reviewed as at each Balance Sheet date.

Minimum Alternate Tax

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

O Miscellaneous Expenditure

Preliminary expenses are amortised in the year in which they are incurred.

Note 1 :Commitments

(i) Estimated amount of contracts remaining to be executed on capital account (net of advances already made) and not provided for is Rs. 1,193.05 lacs (P.Y. 1.58 lacs).

(ii) EPCG commitment outstanding : Rs. 449.16 lacs (P.Y. Rs. 449.16 lacs).

The Company has obtained license under Export Promotion Capital Goods Scheme(EPCG) for purchase of capital goods on zero percent custom duty. Under the EPCG the Company needs to fulfill certain export obligations, failing which, it is liable for payment of custom duty. Total Export obligations amounts to Rs. 3,163.29 lacs (P.Y. Rs. 3,163.29 lacs) out of which Rs. 1,289.95 lacs needs to be fulfilled within 6 years & Rs. 1,873.34 lacs needs to be fulfilled within 8 years from the date of purchase of respective Capital Goods.

Note 2 : In the opinion of the Board, Current Assets, Loans & Advances are realisable in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

Note 3 : Debrciation

Effective from 1st April,2014 the Company has charged debrciation on its fixed assets based on their useful life as stipulated under Schedule II of the Companies Act, 2013. Due to this,the debrciation for the year ended on 31st March, 2015 is higher by Rs. 25.25 lacs as compared to the debrciation computed under the provisions of the Comapnies Act, 1956. Further, based on the transitional provisions as provided in Note 7(b) of Schedule II, Rs. 8.17 lacs is adjusted against opening balance of Retained Earnings.

Note 4 : The financial statements for the year ended 31st March, 2014 were audited by another firm of Chartered Accountants and the same has been reclassified, wherever considered necessary, to conform with the current year's brsentation. Figures wherever not available/ furnished in last year's financial statements have not been given and hence are not strictly comparable.

As per our report of even date attached

For S G C O & Co.

Chartered Accountants

Sd/- Suresh Murarka

Partner

Mem. No. 44739

For and on behalf of the Board of Directors

Sd/- Atul Ranchal

Chairman

Din : 01998361

Sd/- Rajesh Mahajan

Managing Director

Din : 02000634

Sd/- Anil Kumar Pillai

CFO

Sd/- Ankit Parekh

Company Secretary

Place : Mumbai

Date : 29th May, 2015