SCHEDULE 'L' - NOTES TO THE ACCOUNTS
1. Share Capital includes 42,45,808 Equity Shares of Rs.10/-each allotted on 30.11.2001 as fully paid-up pursuant to a Scheme of Amalgamation 
without payment being received in cash.
2. Significant Accounting Policies :
a. The accounts are prepared on accrual basis of accounting.
b. Fixed Assets and Depreciation : Fixed assets are stated at historical costs less  accumulated  depreciation on the same.Depreciation on Fixed Assets is provided on Written Down Value Method at the rates specified in Schedule XIV of the Companies Act, 1956.
c. Investments ( long term ) are stated at cost. However, provision for diminution is made to recognise a decline,other than temporary, in the value of investments wherever applicable.
d. Trading Stocks of Shares & Securities are valued at lower of Cost or Realisable Value.
e. Income on Capital Contribution made for Trading in Shares and Securities shall be accounted for in the year in which underlying Assets are disposed off in terms of agreement entered into.
f.  Debenture Issue Expenses incurred on issue of debentures is amortised over the tenure of the debentures.
g. Provisions for liabilities in respect of Gratuity and Leave Encashment Benefits are made based on Company Policy as at the Balance Sheet Date.
3. a. The Company has provided guarantees/and or pledged shares of Ranbaxy Laboratories Limited as security in respect of borrowings and secured the
obligation made by other bodies corporate. The outstanding obligation as on 31st March, 2007 aggregated Rs.75 Crores.
b. Uncalled liability in respect of Partly paid Equity Shares held in Subsidiary Company Rs. 16.74 Crores.
4. Particulars of privately placed Secured Redeemable Non-Convertible Debentures : 
a. 150 11.40% Secured Redeemable Non-Convertible Debentures of Face Value of Rs.100,00,000/- each aggregating to Rs.150 Crores on private placement basis on 22.01.07. The same are redeemable at par at the end of 364 days from the date of allotment.
b. Debentures redeemed during the year : 65 7.50%, 50 7% & 100 8%  Secured Redeemable Non-Convertible Debentures of Face Value of Rs.100,00,000/- each aggregating to Rs. 215 Crores.
5. The Company has not created any Debenture Redemption Reserve on  Secured Redeemable Non-Convertible Debentures issued by the Company  in view of the clarification issued by Ministry of  Law & Justics & Company Affairs, Department of Company Affairs on 18th April 2002 exempting the requirement of creating the Debenture Redemption Reserve by NBFC'S on privately placed debentures.
6. The Company has transferred a sum of Rs.220,380,400/-  to Statutory Reserve Fund being 20% of Net Profit during the year as required by Sec.45-IC of RBI Act , 1934.
7. The net deferred tax Assets of Rs.5,05,272/- as at 31st March,2007 has arisen on account of the following : 
2006-2007 2005-2006
Deferred Tax Asset/(Liability) Rs. Rs.
-- Depreciation 147,042               (60,804)
-- Provision for Leave Encashment 10,266 6,622
-- Provision for Gratuity 14,091 12,012
-- MAT Credit u/s 115 JAA 333,873 ---
505,272               (42,170)
8. Basic and Diluted Earning Per Share :
For the purpose of calculation of Basic and Diluted Earning Per Share the following amounts are considered :
Particulars For the Year ended For the Year ended
31st March,2007 31st March,2006
(Rs.) (Rs.)
a) Net Profit after Tax 1,101,901,590 1,394,164,449
Less: Preference dividend and tax thereon --- ---
Net Profit available for equity shareholders 1,101,901,590 1,394,164,449
b) Weighted average number of equity shares (Nos.) 17,280,620 17,280,620
c) Basic and Diluted Earning Per Share (Rs.) 63.77 80.68
9. Since the Company's primary activity is to invest  / deal in Shares and Securities, there are no seperate reportable segments as per Accounting Standard 17 (Segment Reporting).
10. Related Party Disclosures :
a. List of Related Parties where control exists or with whom transactions have taken place during the year are given hereunder :
i. Company holding substantial interest in voting power :- Ranbaxy Holding Company
ii. Subsidiary Company : -  Shimal Research Laboratories Ltd.
iii. Partnership firm in which Company is a major partner: - Oscar Traders
iv. Companies in which substantial interest in voting power is held :-  SRL Ranbaxy Ltd.
v. Key management personnel : - Mrs. Japna Malvinder Singh 
vi. Entities over which (i) and (v) above (directly or indirectly) are  Malav Holdings Private Ltd.
able to excercise significant influence and with whom transactions Forits Healthcare Holdings Ltd.
have taken place during the year :- Forits Healthcare Ltd.
Fortis Financial Services Ltd.
Shivi Holdings Pvt.Ltd.
Religare Securities Ltd.
Religare Finvest Ltd..
b. The following transactions were carried out with Related Parties in the Ordinary Course of Business.
Rs. in Lacs
Transactions Subsidiary /  Company in  Key management   Company Entities over which
 Partnership which substantial personnel  holding substantial  (i) and (v) are
Firm interest in voting interest in voting able to exercise
power is held power  significant influence
Unsecured Loans
a) Taken during the year --- --- ---                 11,993.00 ---
b) Repaid during the year --- --- ---                 11,993.00 ---
c) Balance as at 31st March,2007 --- --- --- --- ---
Investments
a) Made during the year 930.00          734.21 --- --- 10,000.00
b) Sold during the year 95.50 --- --- --- 2,600.00
c) Balance as at 31st March,2007 859.50          734.21 --- --- 11,903.20
Sundry Debtors/ (Creditors)  --- --- --- --- 36.52
as at 31st March ,2007
Loans to Others
a) Given During the year --- --- --- --- ---
b) Returned during the year --- --- --- --- ---
c) Balance as at 31st March,2007 --- --- --- --- ---
d) Interest receivable as at 31st  --- --- --- --- 0.17
    March, 2007
Advance Recoverable in cash or in kind
a) Given During the year --- --- --- --- ---
b) Returned during the year 329.32 --- --- --- 10,000.00
c) Balance as at 31st March,2007 --- --- --- --- 7,500.00
Current Liabilities
a) Other Liabilities as at 31st March , 2007 36.44 --- --- --- ---
b) Interest Accrued but not due as  --- --- --- 305.56 ---
     at 31st March , 2007
Income
a) Share of Profit 11,032.82 --- --- --- ---
b) Interest  --- --- --- --- ---
c) Commission --- --- --- --- 22.16
Expenditure
a) Interest  --- --- --- 305.63 ---
b) Depository Charges --- --- --- --- 0.29
c) Brokerage - Trading --- --- --- --- 8.02
d) Managing Directors' Remuneration --- --- 1.92 --- ---
c. Additional disclosure pursuant to Circular CRD/GEN/2003/1 dated February 6,2003 of The Stock Exchange , Mumbai :
Name Balance as at 31st Maximum amount
March,2007 outstanding during
the year ended 31st
March ,2007
(Rs.in Lacs) (Rs.in Lacs)
A. Loans and Advances in the nature of loans to subsidiaries and associates -                     ---                     ---
B. Others                      ---                     ---
Figures in brackets are the corresponding figures of the previous year.
11. The details in respect of Partnership firms where the company is a partner are as under :
Names of Partnership Firms Name of the Partners Share of Profit / Share of Profit /
 Loss as on Loss as on
  31.03.2007 31.03.2006
a. M/s Oscar Traders i. M/s. Oscar Investments Ltd. 85% 85%
ii. Mr.Malvinder Mohan Singh 7.50% 7.50%
iii. Mr.Shivinder Mohan Singh 7.50% 7.50%
100% 100%
( Partners' Capital - Rs. 1,14,000/-,Previous Year - Rs. 1,14,000/- )
b. M/s Oscar Syndicate  i. M/s. Oscar Investments Ltd. 10% 10%
ii. M/s. Oscar Holdings Pvt. Ltd. 90% 90%
100% 100%
( Partners' Capital - Rs. 11,000/-,Previous Year - Rs. 11,000/- )
c. M/s Delta Associates  i. M/s. Oscar Investments Ltd. 10% 10%
ii. M/s. Delta Aromatics Pvt. Ltd. 90% 90%
100% 100%
( Partners' Capital - Rs. 11,000/-,Previous Year - Rs. 11,000/- )
12. Directors' Remuneration :
2006-2007 2005-2006
Managing Director (Rs.) (Rs.)
Salaries & Allowances 192,000 217,200
192,000 217,200
13. Interest Paid : 2006-2007 2005-2006
(Rs.) (Rs.)
a. On Debentures 101,208,906 119,322,604
b. Others 36,816,436 156,339
138,025,342 119,478,943
14. Additional information pursuant to the Provisions of paras 3 and 4 of part II of Schedule VI to the Companies Act, 1956 :
2006-2007 2005-2006
a. Expenditure in Foreign Currency during the year NIL NIL
b. Amount remitted during the year in Foreign Currency by way of Dividend NIL NIL
c. Earnings in Foreign Currency NIL NIL
15. Previous Year's Figures
Previous year figures have been regrouped/recast to make the same comparable with those of the current year.
Signatories to Schedules A to L
As per our attached report of even date
For R.V.SHAH & CO. FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
Chartered Accountants
(R.V.SHAH) JAPNA MALVINDER SINGH V.K.KAUL
Proprietor Managing Director  Director
Membership No.F16097
ANURAG GUPTA
Company Secretary
Place  :   Mumbai Place  :   New Delhi
Dated :   August 23, 2007 Dated :   August 22, 2007

 

  

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