| 1) Companies Information:
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.
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