Fresenius Kabi Oncology Limited (The Company) is a Indian domiciled public limited company, being direct subsidiary of Fresenius Kabi (Singapore) Pte. Limited incorporated in Singapore. Ultimate holding company is Fresenius SE & Co. KGaA incorporated in Germany. The Company is engaged in manufacturing of generic pharmaceutical products. The Company has three manufacturing units two at Himachal Pradesh and one at West Bengal. It has a highly sophisticated research and development centre at Gurgaon catering to needs of the company as well as the group.

The Company is listed on BSE & NSE. However board of directors has approved delisting of the company from both the exchanges.

2: Contingent Liabilities (not provided for)

i) Claims against the company not acknowledged as debts:

Excise duty demand disputed Rs. 742.36 (Previous year Rs. 11.24)

Income tax demand disputed Rs. 1,598.45 (Previous Year Rs. 1,217.16) Others Rs. 220.07 (Previous Year Rs. 193.07)

Guarantee Furnished Rs. 769.25 (Previous Year Rs. 241.96)

Counter Guarantee against LC (sight) Rs. 78.38 (Previous Year Rs. 129.86)

ii) Commitments

Capital Contract Rs. 7,349.26 (Previous Year Rs. 5,474.40)

3: Test of impairment of tangible fixed assets conducted for three cash generating units (CGUs) of the company (Kalyani, Baddi-I unit & Nalagarh unit) revealed their recoverable value arrived at on the basis of value in use concept higher than corresponding carrying costs. This ruled out the cause of any further exercise of ascertaining recoverable value on the basis of net selling price method and exigency of impairment provision.

4: Foreign Exchange exposure:

(i) Overseas exposure hedged against adverse currency fluctuations by way of forward contract:

Unsecured ECB 14.70 Mio EURO (previous year 14.70 Mio EURO)

Off balance sheet exposure against open forward 10.00 Mio EURO (previous year 18.00 Mio EURO) contract, mark to market, to hedge adverse foreign 10.40 Mio USD (previous year 9.00 Mio USD) currency fluctuation

(ii) Other Overseas liabilities and assets not being hedged

Sundry Creditors (foreign) (0.09) Mio GBP (previous year (0.12) Mio GBP) (1.46) Mio USD (previous year (0.53) Mio USD) (0.95) Mio EURO (previous year 1.78 Mio EURO)

Sundry Debtors (foreign) 6.30 Mio EURO (previous year Nil Mio EURO) 0.46 Mio USD (previous year 4.09 Mio USD)

(iii) There has been a change in treatment of gain on forward contract by way of creating provision against gain, if any, lying unrealized on reporting date unlike previous year which reduced the profit of the year by Rs. 680.84 lacs with corresponding rise in short term provision.

(iv) Creation of provision in (iii) above is attributed to huge export/import commitment of the company entailing use of hedging instrument to marginalize impact of exchange fluctuation. Currency fluctuation syndrome over the years have been proving so erratic that any expectation of profit at a given point of time may turn towards loss subsequently or vice versa. Considering these, recognition of unearned income as laid down in AS-11 (Revised) may prove derogatory to the cause of true and fairness of accounts, guarding which is the raison de etre of such treatment. However unrealized loss in this connection has been provided for as a measure of abundant precaution.

5: Related party Disclosures:

Related party disclosures as required under AS-18 are given below:

a) Name of related party and nature of related party relationship where control exists:

Ultimate Holding Entity : Fresenius SE & Co. KGaA

Immediate Holding Entity : Fresenius Kabi (Singapore) Pte.Ltd.

Other Holding Entities : Fresenius Kabi AG, Fresenius Kabi Deutschland GmbH,

Fresenius Kabi Austria GmbH

Fellow Subsidiaries : Fresenius Kabi Brazil Ltda., Fresenius Kabi Chile Ltda.,

Fresenius Kabi Korea Ltd., Fresenius Kabi Norge,AS.

Fresenius Kabi Mexico S.A. de C.V., Fresenius Kabi Denmark, PT.

Fresenius Kabi Indonesia, Fresenius Kabi Philippines Inc, HOSPED GmbH, Calea UK Ltd, Fresenius Kabi EOOD, Fresenius Kabi Pharma Portugal Lda., Laboratories Filaxis International S.A, V. Krutten Medizinische Einmalgerate GmbH, Fresenius Kabi Argentina SA, Fresenius Kabi Asia Pacific Ltd., Fresenius Kabi (China) Co. Ltd., Fresenius Kabi Ilac Sanayi ve Ticaret Ltd., Fresenius Kabi India Private Ltd., Fresenius Netcare GmbH,

Fresenius Kabi Asiaco GmbH, Fresenius Kabi, USA LLC,

Fresenius Kabi (Thailand) Limited, Laboratorio Sanderson S.A Peru, Fresenius Kabi Australia, Fresenius Kabi Malaysia, Fresenius Kabi Hungary, Fresenius Kabi AB Sweden, Fresenius Kabi Taiwan Ltd. Fresenius Kabi Japan KK, Fresenius Kabi Anti infectives srl (Italy), Fresenius Kabi Oncology Plc (UK), Hygieneplan GmbH, Pharmaceutical Partners of Canada,

b) Other related party transaction

Key management personnel : Peter F. Nilsson, MD & CEO

6: Information pursuant to AS-19

The total of future minimum lease rent payment under non-cancelable operating lease against residential/office accommodation.

7: Being exposed to exigency of upgradation of Kalyani unit with involvement of revenue expenditure aggregating Rs. 58 crore towards consumption of materials during trial run Rs.36 crore, up-gradation of plant facility Rs.12 crore forming part of research and development cost and consultancy charges Rs.10 crore in terms of technical estimate, provision has been made in accounts in respect of estimated loss under appropriate heads as a measure of prudence.

Such exigency of up gradation of plant to meet the challenges of continuing metamorphosis in product technology and it's means of production in such research and development based units are periodic occurrences and as such expenses in these regards are to be charged to revenue under respective category as regular expenses only.

8: a) All monetary figures are expressed in Rs. Lacs unless stated otherwise.

b) Previous year figures have been regrouped / recasted wherever considered necessary to make them comparable with those of the current year.