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VimtaLabsLimited142,IDAPhaseII,CherlapallyHyderabad-500051,IndiaT:+914027264141F:+914027263657DrivenbyQuality.
InspiredbyScience.
VLL\10\AGM-29\2019Date:03.
07.
2019ListingCentreAsstVicePresidentM/sBSELimitedNationalStockExchangeofIndiaLimitedPhirozeJeejeehhoyTowers"ExchangePlaza",BandraDalalStieeEIsurla(omplex,Randía(IMunabai400001Muinbal—4000051KindAttu;Mt.
Khat!
.
ScripCode:524394CodeVIMTAIABSDearSirs,Sub:SubmissionofAnnualreportinpursuanceofregulation34ofSEBI(ListingObligationsandDisclosureRequirementsRegulations,2015.
PleasefindenclosedherewithAnnualReportforthefinancialyear2018-19alongwithNoticecallingAnnualGeneralMeeting.
Thankingyou,Yoursfaithfully,forVIMTALABSLIMITEDFSujaniVasireddiCompanySecretaryLifeSciencesCampus,#5,MNScience&TechnologyPark,GenomeValley,Shamirpet,Hyderabad-500101,IndiaT:+914067404040E:mdoffice@vimta.
comURL:www.
vimta.
comCIN:L24110TG1990PLC011977NoticeCalling29thAnnualGeneralMeetingScheduledtobeheldonSaturday,July27,2019VimtaLabsLimitedCIN:L24110TG1990PLC011977RegisteredOffice:PlotNos.
141/2&142,IDAPhaseII,Cherlapally,Hyderabad-500051,INDIA.
E-mail:shares@vimta.
comWeb:www.
vimta.
comNoticeVimtaLabsLimitedNOTICEisherebygiventhatthetwentyninthAnnualGeneralMeetingofthemembersofVimtaLabsLimitedwillbeheldonSaturdaythe27thdayofJuly,2019at3.
00PMattheRegisteredOfficeoftheCompanyi.
e.
141/2&142,IDA,Phase-II,Cherlapally,Hyderabad-500051,totransactthefollowingitemsofbusiness:ORDINARYBUSINESS:1.
Toreceive,consider,approveandadopttheauditedfinancialstatementsoftheCompanyforthefinancialyearendedMarch31,2019andtheReportofAuditorsandBoard'sReportthereon.
2.
TodeclaredividendonEquityShares.
3.
ToappointaDirectorinplaceofDr.
SPVasireddi(DIN:00242288)whoretiresbyrotationandbeingeligible,offershimselfforreappointment.
SPECIALBUSINESS:4.
RatificationofremunerationofcostauditorsToconsiderandifthoughtfit,topasswithorwithoutmodification(s),thefollowingresolutionasanOrdinaryResolution:"RESOLVEDTHATpursuanttotheprovisionsofSection148oftheCompaniesAct,2013readwithRule14(a)(ii)ofCompanies(AuditandAuditors)Rules,2014,includinganystatutorymodification(s)orre-enactment(s)thereof,forthetimebeinginforcetheremunerationofRs.
65,000/-(Rupeessixtyfivethousandonly)approvedbytheBoardofDirectorsandpayabletoM/sUSRao&Co(Regn.
No.
33808),CostAuditorsoftheCompanyfortheauditofcostrecordsmaintainedbytheCompanyforthefinancialyearendingMarch31,2020beandisherebyratified.
"5.
AppointmentofShriGuttaPurnachandraRaoasanIndependentNon-ExecutiveDirectorToconsiderandifthoughtfit,topassthefollowingresolutionwithorwithoutmodification(s)asanOrdinaryResolution:"RESOLVEDTHATpursuanttotheprovisionsofSections149and152readwithScheduleIVandotherapplicableprovisions,ifany,oftheCompaniesAct,2013("theAct")andtheCompanies(AppointmentandQualificationofDirectors)Rules,2014andtheapplicableprovisionsoftheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015includinganystatutorymodification(s)orre-enactment(s)thereof,forthetimebeinginforceShriGuttaPurnachandraRao(DIN:00876934),whoqualifiesforbeingappointedasanIndependentDirectorbeandisherebyappointedasanIndependentNon-ExecutiveDirectoroftheCompany,notliabletoretirebyrotation,foratermof5(five)consecutiveyearsw.
e.
f.
May11,2019thatistoholdhisofficeuptoMay10,2024.
""RESOLVEDFURTHERTHATtheBoardofDirector(s)and/orCompanySecretaryoftheCompanybeandare/isherebyauthorizedtodoallsuchacts,deedsandthingsasmaybenecessarytogiveeffecttotheaforesaidresolution.
"6.
AppointmentofShriPopuriAdeyyaChowdary(PAChowdary)asanIndependentNon-ExecutiveDirectorToconsiderandifthoughtfit,topassthefollowingresolutionwithorwithoutmodification(s)asanOrdinaryResolution:"RESOLVEDTHATpursuanttotheprovisionsofSections149and152readwithScheduleIVandotherapplicableprovisions,ifany,oftheCompaniesAct,2013("theAct")andtheCompanies(AppointmentandQualificationofDirectors)Rules,2014andtheapplicableprovisionsoftheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015includinganystatutorymodification(s)orre-enactment(s)thereof,forthetimebeinginforceShriPopuriAdeyyaChowdary(PAChowdary)(DIN:02936505),whoqualifiesforbeingappointedasanIndependentDirectorbeandisherebyappointedasanIndependentNon-ExecutiveDirectoroftheCompany,notliabletoretirebyrotation,foratermof5(five)consecutiveyearsw.
e.
f.
May11,2019thatistoholdhisofficeuptoMay10,2024.
""RESOLVEDFURTHERTHATtheBoardofDirector(s)and/orCompanySecretaryoftheCompanybeandare/isherebyauthorizedtodoallsuchacts,deedsandthingsasmaybenecessarytogiveeffecttotheaforesaidresolution"7.
AppointmentofShriSanjayDaveasanIndependentNon-ExecutiveDirectorToconsiderandifthoughtfit,topassthefollowingresolutionwithorwithoutmodification(s)asanOrdinaryResolution:"RESOLVEDTHATpursuanttotheprovisionsofSections149and152readwithScheduleIVandotherapplicableprovisions,ifany,oftheCompaniesAct,2013("theAct")andtheCompanies(AppointmentandQualificationofDirectors)Rules,2014andtheapplicableprovisionsoftheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015includinganystatutorymodification(s)orre-enactment(s)thereof,forthetimebeinginforceShriSanjayDave(DIN:08450232),whoqualifiesforbeingappointedasanIndependentDirectorbeandisherebyappointedasanIndependentNon-ExecutiveDirectoroftheCompany,notliabletoretirebyrotation,foratermof5(five)consecutiveyearsw.
e.
f.
May11,2019thatistoholdhisofficeuptoMay10,2024.
""RESOLVEDFURTHERTHATtheBoardofDirector(s)and/orCompanySecretaryoftheCompanybeandare/isherebyauthorizedtodoallsuchacts,deedsandthingsasmaybenecessarytogiveeffecttotheaforesaidresolution.
"229AnnualReport2018-19th8.
Re-appointmentofSmt.
HaritaVasireddiasManagingDirectoroftheCompany.
Toconsiderandifthoughtfit,topasswithorwithoutmodification(s),thefollowingresolutionasOrdinaryResolution:"RESOLVEDTHATpursuanttotheprovisionsofSections196,197,198,203andotherapplicableprovisionsoftheCompaniesAct,2013(theAct)andtheRulesmadethereunderreadwithSchedule-VoftheAct,includinganystatutorymodification(s)orre-enactment(s)thereofandArticlesofAssociationoftheCompany,approvalofthemembersoftheCompanybeandisherebyaccordedforthere-appointmentofSmt.
HaritaVasireddiasManagingDirector(DIN00242512)oftheCompanyforatermofFiveyearswitheffectfromJuly14,2019onfollowingtermsandconditionswitharemunerationpartlybywayofmonthlysalary,perquisitesandtheotherpartannuallyasapercentagetotheNetProfitsoftheCompanyassetoutbelow:A.
BywayofMonthlyremunerationandperquisites:I.
Salary(Consolidated):10,00,000/-(Rupeestenlakhsonly)permonthII.
Perquisitesandallowances:a)MedicalReimbursement:AspertherulesoftheCompany,Payment/Reimbursementofmedicalexpensesincurredforselfandfamilyincludingdependentparents,subjecttoceilingofonemonth'ssalaryinayear.
b)LeaveTravelConcession:Forselfandfamilyincludingdependentparents,toandfrofromanyplaceinIndia,onceinayearsubjecttoceilingofonemonth'ssalaryperannum.
c)Pension/SuperannuationFund:Company'scontributiontoProvidentFund,SuperannuationFundorannuityfundinaccordancewiththeSchemeoftheCompanytotheextenttheseeithersinglyorputtogetherarenottaxableunderIncomeTaxAct,1961.

d)Gratuity:AspertherulesoftheCompany,attheratenotexceedingone-halfmonth'ssalaryforeachcompletedyearofservice.

e)EncashmentofLeave:Encashmentofleavewillbepaidaspertherulesofthecompany.
f)TelephoneandCar:Telecommunicationfacilitiesandcarforbusinesspurposes.
g)Personalaccidentinsurance:Personalaccidentinsurancepremiumwillbepaidaspertherulesofthecompany.
"B.
BywayofpercentageonNetProfitsoftheCompany:Inadditiontothesalaryandperquisites,basedonherperformancevariableremunerationbepaidatsuchpercentageastheBoardmaydeemfit,notexceeding2%oftheNetProfitsoftheCompanyascomputedundertheprovisionsofSection198oftheCompaniesAct,2013.
TheaggregateremunerationpaidtoherunderA&BaboveandtoallotherWhole-time-DirectorsputtogetherinanyfinancialyearshallnotexceedthelimitsspecifiedundertheprovisionsofSection197ofCompaniesAct,2013andotherapplicableprovisionsandRulesmadethereunder,readwithScheduleVofthesaidActoranystatutorymodification(s)orre-enactment(s)thereofforthetimebeinginforce,orotherwiseasmaybepermissiblebylaw.
""RESOLVEDFURTHERTHATtheBoardofDirectorsofthecompany(hereinafterreferredtoastheBoard,whichtermshallbedeemedtoincludeanycommitteewhethercalledNominationandRemunerationCommitteeorsuchothernamewhichmayexerciseitspowersincludingthepowersconferredbythisresolution)beandareherebyauthorizedtovary,alterormodifythescopeoftheabovestatedremunerationoranysuchotherlimits,eitheronhigher/lowersideastheymaydeemfitintheinterestofthecompanywithinthepermissibleprovisionsoftheActandrulesmadethereunder,includinganystatutorymodification(s)orre-enactment(s)thereofforthetimebeinginforce.
""RESOLVEDFURTHERTHATthesaidappointmentofSmt.
HaritaVasireddishallbesubjecttonottoretirementbyrotationduringhertenureandsheisnoteligibletodrawsittingfeeforanyBoard/CommitteeMeetings.
""RESOLVEDFURTHERTHATtheBoardand/orCompanySecretaryoftheCompanybeandisherebyauthorizedtodoallsuchacts,deeds,mattersandthingsasmaybeconsiderednecessary,desirableorexpedientforthepurposeofgivingeffecttothisresolution.
"9.
Re-appointmentofShriHarrimanVungalasExecutiveDirector-OperationsoftheCompany.
Toconsiderandifthoughtfit,topasswithorwithoutmodification(s),thefollowingresolutionasOrdinaryResolution:"RESOLVEDTHATpursuanttotheprovisionsofSections196,197,198,203andotherapplicableprovisionsoftheCompaniesAct,2013(theAct)andtheRulesmadethereunderreadwithSchedule-VoftheAct,includinganystatutorymodification(s)orre-enactment(s)thereofandArticlesofAssociationoftheCompany,approvalofthemembersoftheCompanybeandisherebyaccordedforthere-appointmentofShriHarrimanVungalasExecutiveDirector-Operations(DIN00242621)oftheCompanyforatermofTwoyearswitheffectfromJuly14,2019onfollowingtermsandconditionswitharemunerationpartlybywayofmonthlysalary,perquisitesandtheotherpartannuallyasapercentagetotheNetProfitsoftheCompanyassetoutbelow:NoticeVimtaLabsLimited329AnnualReport2018-19thA.
BywayofMonthlyremunerationandperquisites:I.
Salary(Consolidated):10,00,000/-(Rupeestenlakhsonly)permonthII.
Perquisitesandallowances:a)MedicalReimbursement:AspertherulesoftheCompany,Payment/Reimbursementofmedicalexpensesincurredforselfandfamilyincludingdependentparents,subjecttoceilingofonemonth'ssalaryinayear.
b)LeaveTravelConcession:Forselfandfamilyincludingdependentparents,toandfrofromanyplaceinIndia,onceinayearsubjecttoceilingofonemonth'ssalaryperannum.
c)Pension/SuperannuationFund:Company'scontributiontoProvidentFund,SuperannuationFundorannuityfundinaccordancewiththeSchemeoftheCompanytotheextenttheseeithersinglyorputtogetherarenottaxableunderIncomeTaxAct,1961.

d)Gratuity:AspertherulesoftheCompany,attheratenotexceedingone-halfmonth'ssalaryforeachcompletedyearofservice.

e)EncashmentofLeave:Encashmentofleavewillbepaidaspertherulesofthecompany.
f)TelephoneandCar:Telecommunicationfacilitiesandcarforbusinesspurposes.
g)Personalaccidentinsurance:Personalaccidentinsurancepremiumwillbepaidaspertherulesofthecompany.
"B.
BywayofpercentageonNetProfitsoftheCompany:Inadditiontothesalaryandperquisites,basedonhisperformancevariableremunerationbepaidatsuchpercentageastheBoardmaydeemfit,notexceeding2%oftheNetProfitsoftheCompanyascomputedundertheprovisionsofSection198oftheCompaniesAct,2013.
TheaggregateremunerationpaidtohimunderA&BaboveandtoallotherWhole-time-DirectorsputtogetherinanyfinancialyearshallnotexceedthelimitsasspecifiedundertheprovisionsofSection197ofCompaniesAct,2013andotherapplicableprovisionsandRulesmadethereunder,readwithScheduleVofthesaidActoranystatutorymodification(s)orre-enactment(s)thereofforthetimebeinginforce,orotherwiseasmaybepermissiblebylaw.
""RESOLVEDFURTHERTHATtheBoardofDirectorsofthecompany(hereinafterreferredtoastheBoard,whichtermshallbedeemedtoincludeanycommitteewhethercalledNominationandRemunerationCommitteeorsuchothernamewhichmayexerciseitspowersincludingthepowersconferredbythisresolution)beandareherebyauthorizedtovary,alterormodifythescopeoftheabovestatedremunerationoranysuchotherlimits,eitheronhigher/lowersideastheymaydeemfitintheinterestofthecompanywithinthepermissibleprovisionsoftheActandrulesmadethereunder,includinganystatutorymodification(s)orre-enactment(s)thereofforthetimebeinginforce.
""RESOLVEDFURTHERTHATthesaidappointmentofShriHarrimanVungalshallbesubjecttoretirementbyrotationduringhistenureandheisnoteligibletodrawsittingfeeforanyBoard/CommitteeMeetings.
""RESOLVEDFURTHERTHATtheBoardand/orCompanySecretaryoftheCompanybeandisherebyauthorizedtodoallsuchacts,deeds,mattersandthingsasmaybeconsiderednecessary,desirableorexpedientforthepurposeofgivingeffecttothisresolution.
"10.
AppointmentofShriNeerukondaSatyaSreenivasasExecutiveDirectoroftheCompany.
Toconsiderandifthoughtfit,topasswithorwithoutmodification(s),thefollowingresolutionasOrdinaryResolution:"RESOLVEDTHATpursuanttotheprovisionsofSections149&152andotherapplicableprovisions,ifany,oftheCompaniesAct,2013("theAct")andtheCompanies(AppointmentandQualificationofDirectors)Rules,2014,includinganystatutorymodification(s)orre-enactment(s)thereof,forthetimebeinginforceShriNeerukondaSatyaSreenivas(DIN00269814),whoqualifiesforbeingappointedasaDirectorbeandisherebyappointedasDirectoroftheCompany,liabletoretirebyrotation,foratermof5(five)consecutiveyearsw.
e.
f.
July14,2019thatistoholdhisofficeuptoJuly13,2024.
""FURTHERRESOLVEDTHATpursuanttotheprovisionsofSections196,197,198,203andotherapplicableprovisionsoftheCompaniesAct,2013(theAct)andtheRulesmadethereunderreadwithSchedule-VoftheAct,includinganystatutorymodification(s)orre-enactment(s)thereofandArticlesofAssociationoftheCompany,approvalofthemembersoftheCompanybeandisherebyaccordedfortheappointmentofShriNeerukondaSatyaSreenivasasExecutiveDirector(DIN00269814)oftheCompany,foratermofFiveyearswitheffectfromJuly14,2019onfollowingtermsandconditionswitharemunerationpartlybywayofmonthlysalary,perquisitesandtheotherpartannuallyasapercentagetotheNetProfitsoftheCompanyassetoutbelow:A.
BywayofMonthlyremunerationandperquisites:I.
Salary(Consolidated):8,00,000/-(Rupeeseightlakhsonly)permonthII.
Perquisitesandallowances:a)MedicalReimbursement:AspertherulesoftheCompany,Payment/Reimbursementofmedicalexpensesincurredforselfandfamilyincludingdependentparents,subjecttoceilingofonemonth'ssalaryinayear.
NoticeVimtaLabsLimited429AnnualReport2018-19thNoticeVimtaLabsLimitedb)LeaveTravelConcession:Forselfandfamilyincludingdependentparents,toandfrofromanyplaceinIndia,onceinayearsubjecttoceilingofonemonth'ssalaryperannum.
c)Pension/SuperannuationFund:Company'scontributiontoProvidentFund,SuperannuationFundorannuityfundinaccordancewiththeSchemeoftheCompanytotheextenttheseeithersinglyorputtogetherarenottaxableunderIncomeTaxAct,1961.

d)Gratuity:AspertherulesoftheCompany,attheratenotexceedingone-halfmonth'ssalaryforeachcompletedyearofservice.

e)EncashmentofLeave:Encashmentofleavewillbepaidaspertherulesofthecompany.
f)TelephoneandCar:Telecommunicationfacilitiesandcarforbusinesspurposes.
g)Personalaccidentinsurance:Personalaccidentinsurancepremiumwillbepaidaspertherulesofthecompany.
"B.
BywayofpercentageonNetProfitsoftheCompany:Inadditiontothesalaryandperquisites,basedonhisperformancevariableremunerationbepaidatsuchpercentageastheBoardmaydeemfit,notexceeding2%oftheNetProfitsoftheCompanyascomputedundertheprovisionsofSection198oftheCompaniesAct,2013.
TheaggregateremunerationpaidtohimunderA&BaboveandtoallotherWhole-time-DirectorsputtogetherinanyfinancialyearshallnotexceedthelimitsasspecifiedundertheprovisionsofSection197ofCompaniesAct,2013andotherapplicableprovisionsandRulesmadethereunder,readwithScheduleVofthesaidActoranystatutorymodification(s)orre-enactment(s)thereofforthetimebeinginforce,orotherwiseasmaybepermissiblebylaw.
""RESOLVEDFURTHERTHATtheBoardofDirectorsofthecompany(hereinafterreferredtoastheBoard,whichtermshallbedeemedtoincludeanycommitteewhethercalledNominationandRemunerationCommitteeorsuchothernamewhichmayexerciseitspowersincludingthepowersconferredbythisresolution)beandareherebyauthorizedtovary,alterormodifythescopeoftheabovestatedremunerationoranysuchotherlimits,eitheronhigher/lowersideastheymaydeemfitintheinterestofthecompanywithinthepermissibleprovisionsoftheActandrulesmadethereunder,includinganystatutorymodification(s)orre-enactment(s)thereofforthetimebeinginforce.
""RESOLVEDFURTHERTHATtheappointmentofShriNeerukondaSatyaSreenivasshallbesubjecttoretirementbyrotationduringhistenureandheisnoteligibletodrawsittingfeeforanyBoard/CommitteeMeetings.
""RESOLVEDFURTHERTHATtheBoardand/orCompanySecretaryoftheCompanybeandisherebyauthorizedtodoallsuchacts,deeds,mattersandthingsasmaybeconsiderednecessary,desirableorexpedientforthepurposeofgivingeffecttothisresolution"11RemunerationtoShriSireeshChandraVungalVicePresident-InformationTechnologyToconsiderandifthoughtfittopasswithorwithoutmodification(s)thefollowingresolutionasanOrdinaryResolution:"RESOLVEDTHATapprovalofthemembersbeandisherebyaccordedtotheBoardundertheprovisionsofSection188oftheCompaniesAct,2013(theAct)readwithrelevantRulesmadethereunderandotherapplicableprovisionsoftheAct,ifanyincludinganystatutorymodification(s)orre-enactment(s)thereoftopaysuchremunerationastheBoardmaydeemfitfromtimetotime,toShriSireeshChandraVungal,VicePresident-InformationTechnologynotexceedingRs.
7,00,000/-(Rupeessevenlakhsonly)permonthplusCompanycontributiontoProvidentFund/Superannuationfund,Annuityfund;Gratuity,MedicalandotherperquisitesaspertherulesoftheCompany.
""RESOLVEDFURTHERTHATtheBoardmaydelegateitspowersinthisregardtotheManagingDirectorforimplementation.
"ByOrderoftheBoardSujaniVasireddiCompanySecretaryPlace:HyderabadDate:11.
05.
2019529AnnualReport2018-19thNote:TherequirementtoplacethematterbeforethemembersrelatingtoappointmentofAuditorsforratificationbythemateveryAnnualGeneralMeetingisdoneawaybyCompaniesAmendmentAct2017videNotificationNo.
:S.
O.
1833(E)dated07.
05.
2018issuedbyMinistryofCorporateAffairs.
Accordingly,noresolutionisproposedforratificationofAuditors,whowereappointedbythemembersforaperiodof5yearsintheirmeetingheldon27.
09.
2017.
StatementPursuanttoSection102(1)oftheCompaniesAct,2013:ItemNo.
4TheCompanyismaintainingthecostrecordsinpursuanceofSection148(1)andgettingauditedbyaCostAuditorinpursuanceofSection148(2)oftheCompaniesAct,2013readwithRulesmadethereunder.
Accordingly,onrecommendationsofAuditCommitteetheBoardofDirectorshaveapprovedtheappointmentoftheM/sUSRao&Co,CostAccountants(RegdNo.
33808),tocarryoutcostauditofthecostrecordsoftheCompanyforthefinancialyearendingMarch31,2020ataremunerationofRs.
65,000/-(Rupeessixtyfivethousandonly).
InpursuanceofRule14(1)(ii)oftheCompanies(AuditandAuditors)Rules,2014theremunerationsofixedbytheBoardofDirectorsneedsaratificationbytheshareholdersoftheCompany.
Accordingly,thesaidresolutionputupforratification.
NoneoftheDirectorsareinanywayconcernedorinterestedintheresolutionsetoutatitemNo.
4oftheNotice.

TheBoardcommendstheOrdinaryResolutionsetoutatItemNo:4oftheNoticeforapprovalbythemembers.
ItemNo.
5BasedontherecommendationsoftheNominationandRemunerationCommitteeandundertheprovisionsofSection161oftheAct,theBoardofDirectorsintheirmeetingheldonMay11,2019haveappointedShriGuttaPurnachandraRao(DIN:00876934)asAdditionalDirectorinthecapacityofIndependentNon-ExecutiveDirectorontheBoardoftheCompanywhoholdshisofficeuptothedateofthisAnnualGeneralMeeting.

TheappointmentofShriGuttaPurnachandraRaoasanIndependentNon-ExecutiveDirectorshallbeeffectiveuponapprovalbythemembersintheirMeetingundertheprovisionsofSection149and152oftheCompaniesAct,2013("theAct").
TheCompanyhasreceivedanoticeinwritingfromamemberunderSection160oftheActproposingthecandidatureofShriGuttaPurnachandraRaofortheofficeofDirectoroftheCompany.
ShriGuttaPurnachandraRaohasgivenhisconsenttoactasaDirectorandgivenadeclarationstatingthatheisnotdisqualifiedfrombeingappointedasaDirectorintermsofSection164oftheActandthathemeetsthecriteriaofindependenceasprescribedinbothundersub-section(6)ofSection149oftheActandundertheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015("ListingRegulations").
IntheopinionoftheBoard,ShriGuttaPurnachandraRaofulfillstheconditionsforhisappointmentasanIndependentNon-ExecutiveDirectorasspecifiedintheActandtheListingRegulations.
ShriGuttaPurnachandraRaoisindependentofthemanagementandpossessesappropriateskills,experienceandknowledge.
TherelevantparticularsofShriGuttaPurnachandraRaoasrequiredundertheprovisionsofregulation36(3)ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015areannexedtothisnotice.
CopyofdraftletterofappointmentofShriGuttaPurnachandraRaosettingoutthetermsandconditionsofappointmentisavailableforinspectionbythemembersattheregisteredofficeoftheCompany.
NoneoftheDirectors/KeyManagerialPersonneloftheCompany/theirrelativesare,inanyway,concernedorinterested,financiallyorotherwise,intheresolutionsetoutatItemNo.
5oftheNotice.
TheBoardcommendstheOrdinaryResolutionsetoutatItemNo.
5oftheNoticeforapprovalbythemembers.
ItemNo.
6BasedontherecommendationsoftheNominationandRemunerationCommitteeandundertheprovisionsofSection161oftheAct,theBoardofDirectorsintheirmeetingheldonMay11,2019haveappointedShriAdeyyaChowdaryPopuri(PAChowdary)(DIN:02936505)asAdditionalDirectorinthecapacityofIndependentNon-ExecutiveDirectorontheBoardoftheCompanywhoholdshisofficeuptothedateofthisAnnualGeneralMeeting.
TheappointmentofShriAdeyyaChowdaryPopuri(PAChowdary)asanIndependentNon-ExecutiveDirectorshallbeeffectiveuponapprovalbythemembersintheirMeetingundertheprovisionsofSection149and152oftheCompaniesAct,2013("theAct").
TheCompanyhasreceivedanoticeinwritingfromamemberunderSection160oftheActproposingthecandidatureofShriAdeyyaChowdaryPopuri(PAChowdary)fortheofficeofDirectoroftheCompany.
ShriAdeyyaChowdaryPopuri(PAChowdary)hasgivenhisconsenttoactasaDirectorandgivenadeclarationstatingthatheisnotdisqualifiedfrombeingappointedasaDirectorintermsofSection164oftheActandthathemeetsthecriteriaofindependenceasprescribedinbothundersub-section(6)ofSection149oftheActandundertheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015("ListingRegulations").
IntheopinionoftheBoard,ShriAdeyyaChowdaryPopuri(PAChowdary)fulfillstheconditionsforhisappointmentasanIndependentNon-ExecutiveDirectorasspecifiedintheActandtheListingRegulations.
ShriAdeyyaChowdaryPopuri(PAChowdary)isindependentofthemanagementandpossessesappropriateskills,experienceandknowledge.
TherelevantparticularsofShriAdeyyaChowdaryPopuri(PAChowdary)asrequiredundertheprovisionsofregulation36(3)ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015areannexedtothisnotice.
CopyofdraftletterofappointmentofShriAdeyyaChowdaryPopuri(PAChowdary)settingoutthetermsandconditionsofappointmentisavailableforinspectionbythemembersattheregisteredofficeoftheCompany.
NoneoftheDirectors/KeyManagerialPersonneloftheCompany/theirrelativesare,inanyway,concernedorinterested,financiallyorotherwise,intheresolutionsetoutatItemNo.
6oftheNotice.
TheBoardcommendstheOrdinaryResolutionsetoutatItemNo.
6oftheNoticeforapprovalbythemembers.
NoticeVimtaLabsLimited629AnnualReport2018-19thItemNo.
7BasedontherecommendationsoftheNomination&RemunerationCommitteeandundertheprovisionsofSection161oftheAct,theBoardofDirectorsintheirmeetingheldonMay11,2019haveappointedShriSanjayDave(DIN:08450232)asAdditionalDirectorinthecapacityofIndependentNon-ExecutiveDirectorontheBoardoftheCompanywhoholdshisofficeuptothedateofthisAnnualGeneralMeeting.

TheappointmentofShriSanjayDaveasanIndependentNon-ExecutiveDirectorshallbeeffectiveuponapprovalbythemembersintheirMeetingundertheprovisionsofSection149and152oftheCompaniesAct,2013("theAct").
TheCompanyhasreceivedanoticeinwritingfromamemberunderSection160oftheActproposingthecandidatureofShriSanjayDavefortheofficeofDirectoroftheCompany.
ShriSanjayDavehasgivenhisconsenttoactasaDirectorandgivenadeclarationstatingthatheisnotdisqualifiedfrombeingappointedasaDirectorintermsofSection164oftheActandthathemeetsthecriteriaofindependenceasprescribedinbothundersub-section(6)ofSection149oftheActandundertheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015("ListingRegulations").
IntheopinionoftheBoard,ShriSanjayDavefulfillstheconditionsforhisappointmentasanIndependentNon-ExecutiveDirectorasspecifiedintheActandtheListingRegulations.
ShriSanjayDaveisindependentofthemanagementandpossessesappropriateskills,experienceandknowledge.
TherelevantparticularsofShriSanjayDaveasrequiredundertheprovisionsofregulation36(3)ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015areannexedtothisnotice.
CopyofdraftletterofappointmentofShriSanjayDavesettingoutthetermsandconditionsofappointmentisavailableforinspectionbythemembersattheregisteredofficeoftheCompany.
NoneoftheDirectors/KeyManagerialPersonneloftheCompany/theirrelativesare,inanyway,concernedorinterested,financiallyorotherwise,intheresolutionsetoutatItemNo.
7oftheNotice.
TheBoardcommendstheOrdinaryResolutionsetoutatItemNo.
7oftheNoticeforapprovalbythemembers.
ItemNo.
8MembersattheirmeetingheldonSeptember02,2016haveapprovedtheappointmentofSmt.
HaritaVasireddiasManagingDirector(DIN00242512)oftheCompanyforaperiodof3yearsw.
e.
f.
July15,2016andherpresenttenurewillbecompletedonJuly14,2019andthuscallsforre-appointment.
Accordingly,theNominationandRemunerationCommitteeatitsmeetingheldonMay11,2019hasreviewedtheproposalofre-appointmentofSmt.
HaritaVasireddiasManagingDirectorandmadetheirrecommendationstotheBoardforherre-appointment.
BasedontherecommendationsofthesaidCommittee,theBoardinitsmeetingheldonevendatehasconsideredthesaidre-appointmentandpassednecessaryresolutionundertheprovisionsofSections196,197,198,203andotherapplicableprovisionsoftheCompaniesAct,2013(theAct)andtheRulesmadethereunderre-appointingherasManagingDirectoroftheCompanyforaperiodof5yearsw.
e.
f.
July14,2019subjecttoapprovalofthemembersintheirensuingAnnualGeneralmeetingwiththefollowingtermsandconditions:A.
BywayofMonthlyremunerationandperquisites:I.
Salary(Consolidated):10,00,000/-(Rupeestenlakhsonly)permonthII.
Perquisitesandallowances:a)MedicalReimbursement:AspertherulesoftheCompany,Payment/Reimbursementofmedicalexpensesincurredforselfandfamilyincludingdependentparents,subjecttoceilingofonemonth'ssalaryinayear.
b)LeaveTravelConcession:Forselfandfamilyincludingdependentparents,toandfrofromanyplaceinIndia,onceinayearsubjecttoceilingofonemonth'ssalaryperannum.
c)Pension/SuperannuationFund:Company'scontributiontoProvidentFund,SuperannuationFundorannuityfundinaccordancewiththeSchemeoftheCompanytotheextenttheseeithersinglyorputtogetherarenottaxableunderIncomeTaxAct,1961.

d)Gratuity:AspertherulesoftheCompany,attheratenotexceedingone-halfmonth'ssalaryforeachcompletedyearofservice.

TheaggregateremunerationpaidtoherunderA&BaboveandtoallotherWhole-time-DirectorsputtogetherinanyfinancialyearshallnotexceedthelimitsasspecifiedundertheprovisionsofSection197oftheActandotherapplicableprovisionsoftheActandRulesmadethereunder,readwithScheduleVofthesaidActoranystatutorymodification(s)orre-enactment(s)thereofforthetimebeinginforce,orotherwiseasmaybepermissiblebylaw.
NoticeVimtaLabsLimited729AnnualReport2018-19thThetermsandconditionsassetouthereinabovemaybetreatedaswrittenmemorandumsettingoutthetermsofre-appointmentofSmt.
HaritaVasireddiundertheprovisionsofSection190oftheAct.
Therelevantparticularsasrequiredundertheprovisionsofregulation36(3)ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015areannexedtothisnotice.
CopyofrelevantresolutionsoftheBoardwithrespecttoabovesaidre-appointmentisavailableforinspectionbymembersattheregisteredofficeduringworkinghoursonanyworkingdaytillthedateoftheAnnualGeneralMeeting.
ExceptSmt.
HaritaVasireddiandDrSPVasireddi,noneoftheotherDirectorsareinanywayconcernedorinterestedinthespecialbusinesssetoutatitemNo.
8.
TheBoardcommendstheOrdinaryResolutionunderitemNo.
8forre-appointmentofSmt.
HaritaVasireddiasManagingDirector,forapprovalbythemembers.
ItemNo.
9MembersattheirmeetingheldonSeptember02,2016haveapprovedtheappointmentofShriHarrimanVungalasExecutiveDirector-Operations(DIN00242621)oftheCompanyforaperiodof3yearsw.
e.
f.
July15,2016andhispresenttenurewillbecompletedonJuly14,2019andthuscallsforre-appointment.
Accordingly,theNominationandRemunerationCommitteeatitsmeetingheldonMay11,2019hasreviewedtheproposalofre-appointmentofShriHarrimanVungalasExecutiveDirector-OperationsandmadetheirrecommendationstotheBoardforhisre-appointment.
BasedontherecommendationsofthesaidCommittee,theBoardinitsmeetingheldonevendatehasconsideredthesaidre-appointmentandpassednecessaryresolutionundertheprovisionsofSections196,197,198,203andotherapplicableprovisionsoftheCompaniesAct,2013(theAct)andtheRulesmadethereunderre-appointinghimasExecutiveDirectors-OperationsoftheCompanyforaperiodof2yearsw.
e.
f.
July14,2019subjecttoapprovalofthemembersintheirensuingAnnualGeneralmeetingwiththefollowingtermsandconditions:A.
BywayofMonthlyremunerationandperquisites:I.
Salary(Consolidated):10,00,000/-(Rupeestenlakhsonly)permonthII.
Perquisitesandallowances:a)MedicalReimbursement:AspertherulesoftheCompany,Payment/Reimbursementofmedicalexpensesincurredforselfandfamilyincludingdependentparents,subjecttoceilingofonemonth'ssalaryinayear.
b)LeaveTravelConcession:Forselfandfamilyincludingdependentparents,toandfrofromanyplaceinIndia,onceinayearsubjecttoceilingofonemonth'ssalaryperannum.
c)Pension/SuperannuationFund:Company'scontributiontoProvidentFund,SuperannuationFundorannuityfundinaccordancewiththeSchemeoftheCompanytotheextenttheseeithersinglyorputtogetherarenottaxableunderIncomeTaxAct,1961.

d)Gratuity:AspertherulesoftheCompany,attheratenotexceedingone-halfmonth'ssalaryforeachcompletedyearofservice.

TheBoardcommendstheOrdinaryResolutionunderitemNo.
9forre-appointmentofShriHarrimanVungalasExecutiveDirector-Operations,forapprovalbythemembers.
NoticeVimtaLabsLimited829AnnualReport2018-19thItemNo.
10BasedontherecommendationsoftheNomination&RemunerationCommitteeandundertheprovisionsofSection161oftheAct,theBoardofDirectorsintheirmeetingheldonMay11,2019haveappointedShriNeerukondaSatyaSreenivasasAdditionalDirectorinthecapacityofWholetimeDirectorwiththedesignationofExecutiveDirectorontheBoardoftheCompanywhoholdshisofficeuptothedateofthisAnnualGeneralMeeting.
TheappointmentofShriNeerukondaSatyaSreenivasasDirectorshallbeeffectiveuponapprovalbythemembersintheirMeetingundertheprovisionsofSection149&152oftheCompaniesAct,2013("theAct").
TheCompanyhasreceivedanoticeinwritingfromamemberunderSection160oftheActproposingthecandidatureofShriNeerukondaSatyaSreenivasfortheofficeofDirectoroftheCompany.
ShriNeerukondaSatyaSreenivashasgivenhisconsenttoactasaDirectorandgivenadeclarationstatingthatheisnotdisqualifiedfrombeingappointedasaDirectorintermsofSection164oftheAct.
ShriNeerukondaSatyaSreenivaspossessesappropriateskills,experienceandknowledge.
Further,theNominationandRemunerationCommitteeatitsmeetingheldonMay11,2019hasalsoreviewedtheappointmentofShriNeerukondaSatyaSreenivasasExecutiveDirectorandmadetheirrecommendationstotheBoardforhisappointment.
BasedontherecommendationsofthesaidCommittee,theBoardinitsmeetingheldonevendatehasconsideredthesaidappointmentofShriNeerukondaSatyaSreenivasandpassednecessaryresolutionsubjecttotheprovisionsofSections196,197,198,203andotherapplicableprovisionsoftheCompaniesAct,2013(theAct)andtheRulesmadethereunderappointinghimasAdditionalDirectorinthecapacityofExecutiveDirectoroftheCompanyforaperiodof5yearsw.
e.
f.
July14,2019subjecttoapprovalofthemembersintheirensuingAnnualGeneralmeeting.
AsanAdditionalDirector,heholdshisofficeuptothedateofthisAnnualGeneralMeetingandhisappointmentasExecutiveDirectorshallbeeffectiveuponapprovalbythemembersintheirMeeting.
Thetermsandconditionsofhisappointmentareasunder:A.
BywayofMonthlyremunerationandperquisites:I.
Salary(Consolidated):8,00,000/-(Rupeeseightlakhsonly)permonthII.
Perquisitesandallowances:a)MedicalReimbursement:AspertherulesoftheCompanyPayment/Reimbursementofmedicalexpensesincurredforselfandfamilyincludingdependentparents,subjecttoceilingofonemonth'ssalaryinayear.
b)LeaveTravelConcession:Forselfandfamilyincludingdependentparents,toandfrofromanyplaceinIndia,onceinayearsubjecttoceilingofonemonth'ssalaryperannum.
c)Pension/SuperannuationFund:Company'scontributiontoProvidentFund,SuperannuationFundorannuityfundinaccordancewiththeSchemeoftheCompanytotheextenttheseeithersinglyorputtogetherarenottaxableunderIncomeTaxAct,1961.

d)Gratuity:AspertherulesoftheCompany,attheratenotexceedingone-halfmonth'ssalaryforeachcompletedyearofservice.

TheaggregateremunerationpaidtohimunderA&BaboveandtoallotherWhole-time-DirectorsputtogetherinanyfinancialyearshallnotexceedthelimitsasspecifiedundertheprovisionsofSection197,198oftheActandotherapplicableprovisionsoftheActandRulesmadethereunder,readwithScheduleVofthesaidActoranystatutorymodification(s)orre-enactment(s)thereofforthetimebeinginforce,orotherwiseasmaybepermissiblebylaw.
ThetermsandconditionsassetouthereinabovemaybetreatedaswrittenmemorandumsettingoutthetermsofappointmentofShriNeerukondaSatyaSreenivasundertheprovisionsofSection190oftheAct.
Therelevantparticularsasrequiredundertheprovisionsofregulation36(3)ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015areannexedtothisnotice.
CopyofrelevantresolutionsoftheBoardwithrespecttoabovesaidappointmentisavailableforinspectionbymembersattheregisteredofficeduringworkinghoursonanyworkingdaytillthedateoftheAnnualGeneralMeeting.
ExceptShriNeerukondaSatyaSreenivasandShriVVPrasad,noneoftheotherDirectorsareinanywayconcernedorinterestedinthespecialbusinesssetoutatitemNo.
10.
TheBoardcommendstheOrdinaryResolutionunderitemNo.
10forappointmentofShriNeerukondaSatyaSreenivasasExecutiveDirector,forapprovalbythemembers.
NoticeVimtaLabsLimited929AnnualReport2018-19thNoticeVimtaLabsLimitedItemNo.
11MembersintheirmeetingheldonSeptember27,2017haveapprovedtheremunerationofRs.
5,00,000/-permonthpayabletoShriSireeshChandraVungal,VicePresident-Information&Technology(S/oShriHarrimanVungal,ExecutiveDirector-Operations),sinceitwasarelatedpartytransactioninexcessofthelimitsspecifiedundertheprovisionsofSection188ofCompaniesAct,2013readwithRule15oftheCompanies(MeetingsorBoardanditsPowers)Rules,2014,madethereunder.
Consideringthattheexistingsalarysoapprovedbythemembersisnotcommensuratewithpresentmarkettrendsforanindividualwithhisqualification,experienceandjobresponsibilities,resolutionsetoutattheitemNo.
11oftheNoticeisputupforapprovalofthemembersforfurtherenhancement.
ExceptShriHarrimanVungalnoneoftheDirectorsareinanywayconcernedorinterestedinthespecialbusinesssetoutatitemNo:11.

TheBoardcommendstheOrdinaryResolutionunderItemNo.
11forincreasingtheremunerationpayabletoShriSireeshChandraVungal,forapprovalbythemembers.
ByOrderoftheBoardSujaniVasireddiCompanySecretaryPlace:HyderabadDate:11.
05.
20191029AnnualReport2018-19thAnnexureVimtaLabsLimited1129AnnualReport2018-19th1.
DetailsoftheDirectorsseekingreappointmentattheforthcomingAnnualGeneralmeeting(Regulation36(3)ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015)NameDrSPVasireddiShriGuttaPurnachandraRaoShriAdeyyaChowdaryPopuri(PAChowdary)ShriSanjayDaveDesignationParticularsDateofBirthQualificationExpertiseinspecificfunctionalareasPh.
D.
withover41yearsofexperience.
Fromtheinception,heisoneofthepromoterDirectorofthecompanyandhasbeenitsChairman&ManagingDirectorupto15.
07.
2013.
Subsequently,hewasdesignatedasExecutiveChairmanupto30.
06.
2018andfurtherdesignatedasNon-ExecutiveChairman.
HeisamemberontheGoverningBoardsofseveralscientificbodiesNon-ExecutiveDirector&Chairman01.
07.
1948AdditionalDirector25.
06.
1956AdditionalDirector01.
07.
1945AdditionalDirector18.
07.
1955PhDCAIRS(Retd.
)M.
Sc.
Board(Listedentities)NamesoflistedentitiesinwhichthepersonalsoholdstheDirectorshipandthemembershipofthecommitteesofBoard(ason11.
05.
2019)NilNilNilTheAndhraSugarsLtd.
NilCommittees(Listedentities)Shareholdingofason11.
05.
20193598525NilNilNilAndhraSugarsAuditCommittee:MemberAndhraSugarsStakeholdersRelationshipCommittee:MemberNilItemNo.
3ItemNo.
5ItemNo.
6ItemNo.
7DIN00242288008769340293650508450232MorethanthreedecadesofexperienceinStatutoryAuditsofPubliclimitedandPrivateLimitedCompaniesofvariednatureviz.
,manufacturing,trading,serviceindustry(Hospitals,Hotels)softwareandtechnologycompanies.
AlsoperformsspecialAuditsforBanks/FinancialInstitutionsandmanagementauditsofvariouscompaniesforthelastfewyears.
Consultantinmattersdealtwithcompanyincorporation,projectfinancing,loansyndication,liaisonwithbanksandfinancialinstitutionsandotheralliedmatters.
ConsultantforSystemsimplementation,Internalcontrols,ManagementInformationSystemsforCompaniesinmanufacturingandServicesectors.
Taxation:Taxplanning;Taxcounselingandrepresentationofcorporatetaxmatters,namelyComplianceservices,TaxDeductionatSource,AdvanceTax,Assessmentproceedingsetc.
FellowmemberoftheInstituteofCharteredAccountantsofIndia(F.
C.
A),NewDelhi,HoldingCertificateofPracticefromFebruary,1984.
CertifiedFraudExaminer(CFE)awardedbytheAssociationofCertifiedFraudExaminer,USAJoinedtheIndianRevenueServicein1968andhandleddifferentassignmentsintheIncomeTaxDepartmentrelatingtoassess-ments,collection,recovery,training,investigationandadministration.
WorkedinvariouscapacitiesasCommissionerofIncomeTax,DirectorofIncomeTax(lnvesti-gation),DirectorGeneralofIncomeTax(Investigation)andlastlyfunctionedascadrecontrolChiefCommissionerofIncomeTax,HyderabadforAndhraPradeshregion.
SanjayDavehasatotalprofessionalexperienceofabout43yearsoutofwhichabout33yearsisinagri.
tradeandfoodsafety.
HeistheChairpersonoftheCodexCo-ordinatingCommitteeforAsia(CC-Asia).
HeisalsotheChairmanofSurakshitKhadyaAbhiyan(NationalMissionforSafeFood)launchedbytheGovernmentofIndiainJuly2015.
HeisdevelopingcountrySPSexpertfromAsiatotheStandardsandTradeDevelopmentFacility(STDF)oftheWTO.
HefunctionsastheSeniorInternationalConsultanttoFAO,WHOandInternationalTradeCentre(ITC),Geneva.
HeisamemberoftheScientificCommitteeofFSSAI.
Inthepast,heservedas:-ChairpersonofCodexAlimentariusCommission(aUNbody-FAO/WHO)fromJuly2011toJuly2014.
-AdvisorofFSSAI-Advisor(Agriculture)intheMissionofIndiatotheEuropeanUnionatBrussels.
-DirectorofAPEDAHaritaVasireddi–ManagingDirectorisdaughter.
VVPrasad–ExecutiveDirector-Administrationisbrother.
Disclosureofrelationshipsbetweendirectorsinter-seNANANANilAnnexureVimtaLabsLimited1229AnnualReport2018-19thShriVVPrasad-ExecutiveDirector-AdministrationisFather-in-Law.
NameSmt.
HaritaVasireddiShriHarrimanVungalShriSatyaSreenivasNeerukondaDesignationParticularsDateofBirthQualificationExpertiseinspecificfunctionalareasManagingDirector10.
10.
1974ExecutiveDirectorOperations10.
10.
1951ExecutiveDirector18.
02.
1976B.
PharmMBA(USA)D.
Tech(Toranto)B.
PharmMBA(USA)Board(Listedentities)NamesoflistedentitiesinwhichthepersonalsoholdsthedirectorshipandthemembershipofthecommitteesofBoard(ason11.
05.
2019)NilNilNilNilNilNilCommittees(Listedentities)Shareholdingofason11.
05.
20191679541777166NilItemNo.
8ItemNo.
9ItemNo.
10DIN002425120024262100269814APharmacistandanMBAinServiceOperationsManagementwithover21yearsofexperienceinLeadership,LaboratoryBusinessManagement,QualityManagement.
D.
Tech.
fromToronto,Canadawithover41yearsofexperience.
HeisoneofthepromoterDirectorofthecompanyandhasbeenitsDirector-TechnicalsinceinceptionAglobalsalesandbusinessdevelopmentprofessionalwithmorethan20yearsofrichexperienceinmultiplemarketsandindustries.
StrongknowledgeofPharmaceutical,Biotechnology,MedicalDeviceandFoodindustries.
DrSPVasireddi-NonExecutiveDirector&ChairmanisfatherDisclosureofrelationshipsbetweendirectorsinter-seNANoticeVimtaLabsLimitedNOTES:1.
TheStatementpursuanttoSection102(1)oftheCompaniesAct,2013withrespecttothespecialbusinesssetoutintheNoticeseperately.

2.
AmemberentitledtoattendandvoteattheAnnualGeneralMeetingisentitledtoappointaproxytoattendandvoteonapollinthemeetinginsteadofsuchmember.
TheproxyneednotbeamemberoftheCompany.
3.
Apersoncanactasaproxyonbehalfofsuchmemberornumberofmembersnotexceedingfifty(50)membersandholdinginaggregatenotmorethanten(10)percentofthetotalsharecapitaloftheCompany.
Amemberholdingmorethanten(10)percentofthetotalsharecapitaloftheCompanymayappointasinglepersonasproxyandsuchpersonshallnotactasproxyforanyotherpersonormember.

4.
AmemberofacompanyregisteredunderSection8oftheCompaniesAct,2013shallnotbeentitledtoappointanyotherpersonasitsproxyunlesssuchotherpersonisalsoamemberofsuchcompany.
5.
Theinstrumentappointingtheproxy,dulycompleted,mustbedepositedattheCompany'sregisteredofficenotlessthan48hoursbeforethecommencementofthemeeting.
AproxyformforthisAnnualGeneralMeetingisenclosed.
6.
CorporatemembersintendingtosendtheirauthorizedrepresentativestoattendthemeetingarerequestedtosendacertifiedcopyoftheBoardresolutiontotheCompanyauthorizingtheirrepresentativetoattendandvoteontheirbehalfatthemeeting.
7.
Duringtheperiodbeginning24hoursbeforethetimefixedforthecommencementofthemeetingandendingwiththeconclusionofthemeeting,amemberwouldbeentitledtoinspecttheproxieslodgedwiththeCompanyatanytimeduringthebusinesshoursoftheCompany,providedthatnotlessthanthreedaysofnoticeinwritingisgiventotheCompanybysuchintendingperson.
8.
Members/proxies/authorizedrepresentativesshouldbringthedulyfilledAttendanceSlipenclosedherewithtoattendthemeeting.
9.
TheRegisterofMembersandShareTransferBookswillremainclosedfromMonday,July22,2019toSaturday,July27,2019(bothdaysinclusive)forthepurposeofAnnualClosingforthefinancialyearendedMarch31,2019.
10.
Memberswhoseshareholdingisinelectronicmodearerequestedtoupdatethechangeofaddress,emailIDsandchangeinbankaccountdetails,ifanywiththerespectiveDepositoryParticipant(s).
11.
Memberswhoarewillingtoclaimdividends,whichremainunclaimed,arerequestedtocorrespondwiththeCompanyatitsregisteredofficeaddress.
MembersarerequestedtonotethatdividendsnotclaimedwithinsevenyearsfromthedateoftransfertotheCompany'sUnpaidDividendAccount,suchdividendsalongwithrespectiveshareswillbetransferredtotheInvestorEducationandProtectionFundaspertheprovisionsofSection124oftheCompaniesAct,2013.
12.
Withaviewtousingnaturalresourcesresponsibly,werequestthememberstoupdaterespectiveemailaddresseswithyourDepositoryParticipants,ifnotalreadydone,toenabletheCompanytosendcommunicationselectronically.
13.
TheAnnualReport2018-19isbeingsentthroughelectronicmodetothememberswhoseemailaddressesareregisteredwiththeCompany/DepositoryParticipant(s),unlessanymemberhasspecificallyrequestedforaphysicalcopyofthereport.
Formemberswhohavenotregisteredtheiremailaddresses,physicalcopiesoftheAnnualReport2018-19arebeingsentbythepermittedmodeorbyanyothermodeasspecificallyrequested.
14.
IncompliancewithSection108oftheCompaniesAct,2013readwithRule20oftheCompanies(ManagementandAdministration)Rules,2014assubstitutedbyCompanies(ManagementandAdministration)Amendment,Rules2015theCompanyhasprovidedafacilitytothememberstoexercisetheirvoteselectronicallythroughtheelectronicvotingservicefacilityarrangedbyCentralDepositoryServices(India)Limited.
Thefacilityforvoting,throughballotpaper,willalsobemadeavailableattheAnnualGeneralMeetingandthemembersattendingtheAnnualGeneralMeetingwhohavenotalreadycasttheirvotesbyremotee-votingshallbeabletoexercisetheirrightattheAnnualGeneralMeetingthroughballotpaper.
Memberswhohavecastedtheirvotesbyremotee-votingpriortotheAnnualGeneralMeetingmayattendtheAnnualGeneralMeetingbutshallnotbeentitledtocasttheirvotesagain.
TheCompanyhasappointedM/sDHanumantaRaju&Co.
,Hyderabad,PracticingCompanySecretaryastheScrutinizerforconductingthee-votingprocessinafairandtransparentmanner.
E-votingisoptional.
TheE-votingrightsoftheshareholders/beneficialownersshallbereckonedontheequitysharesheldbythemasonStockExchangeclosinghoursofJuly19,2019.
15.
Theinstructionsfore-voting,alongwiththeAttendanceslipandProxyformareprovidedherewithasaninsertion.
AcopyofthesameisalsoavailableonCompany'swebsitewww.
vimta.
comforreference.
16.
MembersmayalsonotethattheNoticeofthe29thAnnualGeneralMeetingandtheAnnualReport2018-19isavailableontheCompany'swebsite,www.
vimta.
com.
Memberswhorequirephysicalcopiesmaywritetousat"shares@vimta.
com"17.
TheSecuritiesandExchangeBoardofIndia(SEBI)hasmandatedthesubmissionofthePermanentAccountNumber(PAN)byeveryparticipantinthesecuritiesmarket.
Membersholdingsharesinelectronicformare,therefore,requestedtosubmittheirPANtotheirrespectiveDepositoryParticipant(s).
MembersholdingsharesinphysicalformarerequiredtosubmittheirPANdetailstotheCompany.

18.
AlldocumentsreferredtointhisNoticeareavailableforinspectionattheCompany'sregisteredofficeduringnormalbusinesshoursonworkingdaysuptothedateoftheAnnualGeneralMeeting.
19.
TheRegisterofContractsorArrangementsinwhichDirectorsareinterestedmaintainedunderSection189oftheCompaniesAct,2013andtheRegisterofDirectorsandKeyManagerialPersonnelandtheirshareholdingmaintainedunderSection170oftheCompaniesAct,2013willbeavailableforinspectionbythemembersattheAGM.
20.
MembersarerequestedtobringtheircopyofAnnualReporttotheMeeting.
1329AnnualReport2018-19thTHEINSTRUCTIONSTOTHEMEMBERSFORVOTINGELECTRONICALLYAREASUNDER(I)Thevotingperiodbeginsat.
Duringthisperiodshareholders'of9.
30amonWednesday,July24,2019andendsat5.
00pmonFriday,July26,2019theCompany,holdingshareseitherinphysicalformorindematerializedform,asonthecut-offdate,maycasttheirvoteFriday,July19,2019electronically.
Thee-votingmodulewillbedisabledbyCDSLforvotingthereafter.
(ii)Theshareholdersshouldlogontothee-votingwebsitewww.
evotingindia.
com.
(iii)ClickonShareholders.
(iv)NowEnteryourUserIDa.
ForCDSL:16digitsbeneficiaryID,b.
ForNSDL:8CharacterDPIDfollowedby8DigitsClientID,c.
MembersholdingsharesinPhysicalFormshouldenterFolioNumberregisteredwiththeCompany.
(v)NextentertheImageVerificationasdisplayedandClickonLogin.
(vi)Ifyouareholdingsharesindematformandhadloggedontowww.
evotingindia.
comandvotedonanearliervotingofanycompany,thenyourexistingpasswordistobeused.
(vii)Ifyouareafirsttimeuserfollowthestepsgivenbelow:ForMembersholdingsharesinDematFormandPhysicalFormPANEnteryour10digitalpha-numericPANissuedbyIncomeTaxDepartment(Applicableforbothdematshareholdersaswellasphysicalshareholders)MemberswhohavenotupdatedtheirPANwiththeCompany/DepositoryParticipantarerequestedtousethefirsttwolettersoftheirnameandthe8digitsofthesequencenumberinthePANfield.
Incasethesequencenumberislessthan8digitsentertheapplicablenumberof0'sbeforethenumberafterthefirsttwocharactersofthenameinCAPITALletters.
Eg.
IfyournameisRameshKumarwithsequencenumber1thenenterRA00000001inthePANfield.
DIVIDENDBANKDETAILSORDATEOFBIRTH(DOB)EntertheDividendBankDetailsorDateofBirth(indd/mm/yyyyformat)asrecordedinyourdemataccountorinthecompanyrecordsinordertologin.
Ifboththedetailsarenotrecordedwiththedepositoryorcompanypleaseenterthememberid/folionumberintheDividendBankdetailsfieldasmentionedininstruction(iv).
(viii)Afterenteringthesedetailsappropriately,clickon"SUBMIT"tab.
(ix)MembersholdingsharesinphysicalformwillthendirectlyreachtheCompanyselectionscreen.
However,membersholdingsharesindematformwillnowreach'PasswordCreation'menuwhereintheyarerequiredtomandatorilyentertheirloginpasswordinthenewpasswordfield.
Kindlynotethatthispasswordistobealsousedbythedematholdersforvotingforresolutionsofanyothercompanyonwhichtheyareeligibletovote,providedthatcompanyoptsfore-votingthroughCDSLplatform.
Itisstronglyrecommendednottoshareyourpasswordwithanyotherpersonandtakeutmostcaretokeepyourpasswordconfidential.
(x)ForMembersholdingsharesinphysicalform,thedetailscanbeusedonlyfore-votingontheresolutionscontainedinthisNotice.

(xi)ClickontheEVSNfortherelevantonwhichyouchoosetovote.
(xii)Onthevotingpage,youwillsee"RESOLUTIONDESCRIPTION"andagainstthesametheoption"YES/NO"forvoting.
SelecttheoptionYESorNOasdesired.
TheoptionYESimpliesthatyouassenttotheResolutionandoptionNOimpliesthatyoudissenttotheResolution.
(xiii)Clickonthe"RESOLUTIONSFILELINK"ifyouwishtoviewtheentireResolutiondetails.
(xiv)Afterselectingtheresolutionyouhavedecidedtovoteon,clickon"SUBMIT".
Aconfirmationboxwillbedisplayed.
Ifyouwishtoconfirmyourvote,clickon"OK",elsetochangeyourvote,clickon"CANCEL"andaccordinglymodifyyourvote.
(xv)Onceyou"CONFIRM"yourvoteontheresolution,youwillnotbeallowedtomodifyyourvote.
(xvi)Youcanalsotakeaprintofthevotescastbyclickingon"Clickheretoprint"optionontheVotingpage.
(xvii)IfademataccountholderhasforgottentheloginpasswordthenEntertheUserIDandtheimageverificationcodeandclickonForgotPassword&enterthedetailsaspromptedbythesystem.
(xviii)ShareholderscanalsocasttheirvoteusingCDSL'smobileappm-Votingavailableforandroidbasedmobiles.
Them-VotingappcanbedownloadedfromGooglePlayStore.
Pleasefollowtheinstructionsaspromptedbythemobileappwhilevotingonyourmobile.
(xix)NoteforNon-IndividualShareholdersandCustodiansNon-Individualshareholders(i.
e.
otherthanIndividuals,HUF,NRIetc.
)andCustodianarerequiredtologontowww.
evotingindia.
comandregisterthemselvesasCorporates.
AscannedcopyoftheRegistrationFormbearingthestampandsignoftheentityshouldbeemailedtohelpdesk.
evoting@cdslindia.
com.
AfterreceivingthelogindetailsaComplianceUsershouldbecreatedusingtheadminloginandpassword.
TheComplianceUserwouldbeabletolinktheaccount(s)forwhichtheywishtovoteon.
Thelistofaccountslinkedintheloginshouldbemailedtohelpdesk.
evoting@cdslindia.
comandonapprovaloftheaccountstheywouldbeabletocasttheirvote.
AscannedcopyoftheBoardResolutionandPowerofAttorney(POA)whichtheyhaveissuedinfavouroftheCustodian,ifany,shouldbeuploadedinPDFformatinthesystemforthescrutinizertoverifythesame.
(xx)Incaseyouhaveanyqueriesorissuesregardinge-voting,youmayrefertheFrequentlyAskedQuestions("FAQs")ande-votingmanualavailableatwww.
evotingindia.
com,underhelpsectionorwriteanemailtohelpdesk.
evoting@cdslindia.
com.
ADMISSIONSLIPName&AddressofMemberFoiloNo.
DPIDNo.
ClientIDNo.
Iherebyrecordmyattendanceatthe29thAnnualGeneralMeetingoftheCompany,tobeheldonSaturdaythe27thdayofJuly,2019at03.
00PMatRegd.
Office141/2&142,IDA,Phase-II,Cherlapally,Hyderabad:500051IcertifythatIamaregisteredmemberofthecompanyandhold_shares.
Member's/Proxy'sSignature[Pursuanttosection105(6)oftheCompaniesAct,2013andrule19(3)oftheCompanies(ManagementandAdministration)Rules,2014](FormNo.
MGT-11)ProxyFormCIN:L24110TG1990PLC011977Nameofthecompany:VimtaLabsLimitedRegisteredoffice:PlotNos.
141/2&142,IDAPhaseII,Cherlapally,Hyderabad-500051E-mail:shares@vimta.
comWeb:www.
vimta.
comNameofthemember(s):Registeredaddress:E-mailId:FolioNo/ClientId:DPID:I/We,beingthemember(s)having………….
sharesintheabovenamedcompany,herebyappoint1.
Name:2.
Name:Address:Address:E-mailId:E-mailId:Signature:Signature:orfailinghim/herasmy/ourproxytoattendandvote(onapoll)forme/usandonmy/ourbehalfatthe29thAnnualGeneralMeetingofthecompany,tobeheldonSaturdaythe27thdayofJuly,2019at03.
00PMatRegd.
Office141/2&142,IDA,Phase-II,Cherlapally,Hyderabad:500051andatanyadjournmentthereofinrespectofsuchresolutionsasareindicatedbelow:Signedthis…dayof2019SignatureofshareholderSignatureofProxyholder(s)Affix1RupeeRevenueStampNote:ThisformofproxyinordertobeeffectiveshouldbedulycompletedanddepositedattheRegisteredOfficeoftheCompany,notlessthan48hoursbeforethecommencementoftheMeeting.
Resolutions:1.
2.
3.
4.
AdoptionofFinancialStatementsApprovalofdividendAppointmentofDr.
SPVasireddi(DIN:00242228)whoretiresbyrotation.
RatificationofremunerationofcostauditorsAppointmentofShriGuttaPurnachandraRaoasanIndependentNon-ExecutiveDirectorAppointment5.
6.
ofShriPopuriAdeyyaChowdary(PAChowdary)asanIndependentNon-ExecutiveDirectorAppointmentofShriSanjayDaveasanIndependentNon-7.
ExecutiveDirectorRe-appointmentofSmt.
HaritaVasireddiasManagingDirectoroftheCompany.
Re-appointmentofShriHarrimanVungalas8.
9.
ExecutiveDirector-OperationsoftheCompany.
AppointmentofShriNeerukondaSatyaSreenivasasExecutiveDirectoroftheCompany.
10.
11.
RemunerationtoShriSireeshChandraVungalVicePresident-InformationTechnologyROUTEMAPAnnualGeneralMeetingofVIMTALABSLIMITEDCIN:L24110TG1990PLC011977RegisteredOffice:PlotNos.
141/2&142,IDAPhaseII,Cherlapally,Hyderabad-500051,India.
E-mail:shares@vimta.
comWeb:www.
vimta.
comAnnualReport2018-1929thBOARDOFDIRECTORSDrSPVASIREDDINon-ExecutiveDirector&ChairmanHARITAVASIREDDIManagingDirectorHARRIMANVUNGALExecutiveDirector-OperationsVVPRASADExecutiveDirector-AdministrationTSAJAIIndependentirectorPROFDBALASUBRAMANIANIndependentDirector(upto31.
03.
2019)RAOPURNACHANDRAPOTHARLANKAIndependentDirectorYALAMANCHILIPRAMEELARANIIndependentDirectorDBANKERS/INSTITUTIONSStateBankofIndiaSTATUTORYAUDITORSSECRETARIALAUDITORSCOSTAUDITORSLISTEDWITHSHARETRANSFERAGENTSDHanumantaRaju&Co.
USRao&Co.
BSELimitedNationalStockExchangeofIndiaLtd.
CILSecuritiesLtd.
(FirmRegn.
No.
)CharteredAccountantsHyderabadCompanySecretariesHyderabad(FirmRegn.
No.
102629)CostAccountantsHyderabad.
214,RaghavaRatnaTowersChiragAliLane,AbidsHyderabad-500001CISCOSystemsCapital(India)PrivateLimitedGattamaneni&Co.
009303SGUTTAPURNACHANDRARAOAdditionalDirector-IndependentDirector(w.
e.
f.
11.
05.
2019)ADEYYACHOWDARYPOPURI(PACHOWDARY)AdditionalDirector-IndependentDirector(w.
e.
f.
11.
05.
2019)SANJAYDAVEAdditionalDirector-IndependentDirector(w.
e.
f.
11.
05.
2019)COMPANYSECRETARY&COMPLIANCEOFFICERSUJANIVASIREDDI(appointedon31.
08.
2018)AVENKATARAMANA(upto31.
08.
2018)CHIEFFINANCIALOFFICERAMITPATHAK(appointedon01.
01.
2019)MMURALIMOHANARAO(upto01.
12.
2018)AUDITCOMMITTEESTAKEHOLDERSRELATIONSHIPCOMMITTEENOMINATIONANDREMUNERATIONCOMMITTEERISKMANAGEMENTCOMMITTEETSAJAICHAIRMANCHAIRPERSONCHAIRMANMANAGINGDIRECTOREXECUTIVEDIRECTOR-OPERATIONSCHIEFFINANCIALOFFICERRAOPURNACHANDRAPOTHARLANKAYALAMANCHILIPRAMEELARANIYALAMANCHILIPRAMEELARANITSAJAIPROFDBALASUBRAMANIANTSAJAIPROFDBALASUBRAMANIANRAOPURNACHANDRAPOTHARLANKAHARITAVASIREDDICHAIRPERSONHARRIMANVUNGALVVPRASADRAOPURNACHANDRAPOTHARLANKACHAIRPERSONCORPORATESOCIALRESPONSIBILITYCOMMITTEESContentsSelectiveFinancialDataBoard'sReportReportonCorporateGovernanceAnnexurestoBoard'sReportIndependentAuditor'sReportFinancialsSignificantaccountingpoliciesandotherexplanatoryinformation03041017343943IMPORTANTCOMMUNICATIONTOMEMBERSTheMinistryofCompanyAffairshastakena"GreenInitiativeintheCorporateGovernance"byallowingpaperlesscompliancesbytheCompaniesandhasissuedcircularsstatingthatserviceofnotice/documentsincludingAnnualReportcanbesentbye-mailtoitsmembers.
TosupportthisgreeninitiativeoftheGovernmentinfullmeasure,memberswhohavenotregisteredtheire-mailaddresses,sofar,arerequestedtoregistertheire-mailaddresses,inrespectofelectronicholdingswiththeDepositorythroughtheirconcernedDepositoryParticipants.
Memberswhoholdsharesinphysicalformarerequestedtoregistertheire-mailIDwithM/s.
CILSecuritiesLtd.
,214,RaghavaRatnaTowers,Chirag-Ali-Lane,Abids,Hyderabad-500001.
229AnnualReport2018-19thVimtaLabsLimitedSelectiveFinancialData329AnnualReport2018-19thRevenueAmountinMillion`.
AmountinMillion`.
PBTDomesticvsExportRevenueAmountinMillion`.
EPSAmountin`.
EBIDTAAmountinMillion`.
NetWorthAmountinMillion`.
FortheYear2018-19FortheYear2017-18(inMillions)`Board'sReportToTheMembersofVIMTALABSLIMITEDFINANCIALSUMMARYYourDirectorshavepleasureinpresentingthe29AnnualReportandauditedfinancialstatementsofyourCompanyfortheyearendedMarch31,2019.
thVimtaLabsLimitedTotalIncome2145.
681846.
48EarningsbeforeInterest&Financecost,DepreciationandTaxexpense594.
71464.
64Financecosts46.
0752.
00Depreciationexpenses197.
23157.
00ProfitbeforeTax351.
41255.
64Taxexpenses(current&deferred)98.
3091.
31Profitfortheyearincludingothercomprehensiveincome248.
30159.
05EPS(in.
)11.
457.
43`429AnnualReport2018-19thFINANCIALHIGHLIGHTSBUSINESS-MANAGEMENTDISCUSSIONANDANALYSISCompanyOverviewOurVisionOurCoreValuesCoreStrategiesTotalincomeincreasedby16.
20%overpreviousyear.
EBITDAhasgoneupby28%overpreviousyearandPATby54%IncreaseinEPSby54%VimtaLabsisIndia'sleaderincontractresearchandtestingservicesforthefood,environment,pharmaceutical,biopharmaceuticalandagrochemicalproductstesting.
Forbiopharmaceuticalproducts,itoffersdruglifecyclemanagement,developmentanddiscoverysupportservicesintheareasofpreclinicalresearch,clinicalresearchandanalyticalservices.
TheCompanyisalsointhebusinessofprovidingclinicaldiagnosticservicesandthirdpartyanalyticallaboratoryservicestovariousotherindustries.
Vimtahasanetworkof17laboratoriesinIndia,includingmultiplebranchlaboratoriesforfoodtestingandclinicaldiagnostics.
TobeseenasanIndianorganizationwithaglobalperspectivethathascreatedanintegrated,qualitydriven,customersensitive,ContractResearchandTestingcentre,thatisthemostcomprehensiveofitskindacrosstheglobe.
Integrityofservicethroughhonesty,responsibilityandanuncompromisingcommitmenttoQualityandCustomerservice.
Respectforallourteammembers,partners,customers,suppliersandallotherpeopleourbusinessinteractswith.
AstrongleadershippositionisbuiltbyVimtathroughthefollowingcorestrategies:Quality&Compliance-Thisisthefoundationofourbusinessandremainsthecoreofourprocesses.
Qualityprinciplesandcontinuousimprovementtowardsbestpracticesareintegratedintoallouractivities.
Innovation-Constantlycreatingnewservicesaimingtodeliverend-to-endtesting,development,discoveryandlaboratoryservicestothecustomers.
Technology-UseofadvancedtechnologiessupportedbyrobustITsolutionstoprovidecuttingedgesolutionstocustomers.
Knowledge-PeoplearethestrengthofVimta.
Thediverseeducation,skillsandexperienceofourteamisharnessedforoperationalexcellenceandtodelivertrustedresultsandscientificallyreliabledata.
Reach-Continuouslyexpandthereachtomoreandmorecustomersandmarkets.
ThedynamicsofPharmaceuticalindustryoutsourcingkeepchanging,dependinglargelyonthesize,structureandstrategicintentsofthecompanies.
Virtualcompaniesoutsourcealmosttheentiredrugdiscoveryordevelopmentprocesstothirdpartyorganizations.
ThebigpharmacompaniesincreasetheirR&Dportfoliossignificantlythroughacquiringpartiallydevelopedproductsfromothercompanies.
ThereisanincreasingoutsourcingtrendofR&Dactivitiestoserviceproviders.
AccordingtoananalyticalreportbyVisiongain,drugdiscoveryoutsourcingwillcontinuetogrowoverthenextdecadeandwillrisetoa$43.
7billiondollarindustryby2026,ascomparedtoanestimated19.
2billionin2016.
(Source-Biopharmatrend.
com).
Indiaisoneofthefavorabledestinationstooutsourcesuchactivitiesgiventhecostadvantageandtalentpool.
Further,inthepharmaceutical,biopharmaceuticalandmedicaldeviceindustries,productsmustconformtoapplicablenationalandinternationalregulations.
Regulationsareconstantlyrevisedtoupgradethesafetyandefficacyinformationonproducts,andthereforetheneedformoresafetyassessmentsandtestingIndustryStructure&Developments$Board'sReportVimtaLabsLimited529AnnualReport2018-19thcontinuestogrow.
Thesearefavourabletrendsforourbusiness.
Vimtaprovidesvitalsupportandexpertisethroughoutvariousstagesofdiscovery,productdevelopment,productionanddistribution.
Vimtabeinganintegratedserviceprovider,andwithastrongregulatoryaudittrackrecord,isoneoftheleadersinIndiainthissegment.
Inthefoodandagriindustry,factorssuchasthestrengtheningregulatorylandscape,increasingproductsafetyandqualityrequirementsfromFSSAI,consumerawareness,andthetradebetweenIndiaandothercountries,continuetopropeltheneedforassuranceofproductsafetyandqualityateverystageofthefoodproductionandtradeprocess.
Ourservicesbuildtrust,andreduceriskacrossdiverseagricultureandfoodsupplychains.
Vimtaoffersroutineaswellasspecializedtestingservicesforfoodandagriproductstoassistwithregulatorycompliance,tradeandinternalqualityrequirements.
Vimtahasfoodtestinglaboratoriesin9citiesacrossIndia,whichisthelargestnetworkinthecountry,andhasreceivedallrequiredapprovalsfromqualityaccreditationandregulatorybodies,exceptinDelhiLab,forwhichplansareinprogress.
ThelaboratorynetworkenablesustogainmoreaccesstothemarketsandleverageourpanIndiapresencetogrowthebusinesswithinthefoodindustry.
ClinicaldiagnosticsisalargemarketinIndiathatcontinuestogrowinlowerdoubledigits,withthegrowthineconomyandpublic'sincreasinghealthcareawarenessandaccesstohealthcareinfrastructure.
Sophisticatedtechnologiesareconstantlybroughtintothemarketbyglobalvendors.
Competitionisveryhighandlocal,furtherthisisaverypricesensitiveone.
Theserviceprovidersinthisbusinessarehighlyfragmentedandofvaryingsizesofferingeitherroutineorspecializedorcombinationservices.
VimtaenjoysastrongqualitybrandinthecountryandhasapanIndiapresenceofferingbothroutineandspecializeddiagnosticservices.
Wecontinuetoinvestinexpandingourgeographicreachandbuildingspecializedtestcapabilitiestogrowinthisgrowingmarket.
Indiaisapartoftheglobalcommunitythatisbeginningtoputgreaterfocusondevelopingsustainableeconomiesandenergysources.
ProtectingtheenvironmentanditsnaturalresourcesisakeyagendaforIndia.
Thisfocusretainstheneedforqualityenvironmentalimpactassessmentandenvironmenttestingservices.
Vimtahasalwaysbeenaleaderinthisbusinessforoverthreedecades,duetoitswideexpertise,thequalityofitsservices,anditsreputationforintegrityofdata.
Vimtaalsoprovidestestingservicesforagrochemicalindustryfortheirdiscoveryandproductsafetytestingneeds.
TheAPACmarketsareespeciallywitnessinggrowthinthisindustrywhichisattributedtotheincreasinguseofherbicides,growingdemandfromdevelopingcountries,andtechnologicalimprovementsleadingtoefficientmethodsofagriculture.
Giventheabovebusinessenvironment,webelieveVIMTAcontinuestobeinapositiontoleveragethemarketopportunitiesavailableandcontinuetherobustgrowthjourneythatithasembarkedon.
Havingstatedthis,thereisnoguaranteethatthesemarkettrendswillallcontinuetobepositiveforourbusiness,astherecouldbeseveralrisksandeventsthatcouldnegativelyimpacttheopportunitiesandbusinessfactorsforVimta.
TheRiskManagementCommitteedulyconstitutedbytheBoardhasformulatedaRiskManagementPolicyfordealingwithdifferentkindsofrisksattributabletotheoperationsoftheCompany.
RiskRiskManagementManagementPolicyoftheCompanyoutlinesdifferentkindsofrisksandriskmitigatingmeasurestobeadoptedbytheBoard.
TheCompanyhasadequateinternalcontrolsystemsandprocedurestocombattherisk.
TheRiskManagementprocedurewillbereviewedperiodicallybytheAuditCommitteeandtheBoard.
Risksareinherenttoanybusiness.
TheyaremanagedbyyourCompanythroughariskmanagementprocessofriskidentificationandriskmitigation,throughriskreductionstrategies&plansandcontinuousmonitoringoftheeffectivenessoftheriskmitigationmeasurestocontrolthem.
Yourcompanycontinuestostrivetostayaheadonthecompetitioncurvethroughcreationofnewserviceopportunities,operationalexcellenceanditsuncompromisingcommitmenttoquality,regulatorycomplianceandcustomerservice.
However,theremaybecertainfactorsthatarebeyondVimta'scontrolthatcouldadverselyimpactbusiness.
Afewthatgenerallycouldimpactmostofthecompaniesinthisindustryinclude,changeinregulationsandregulatoryenvironment;downturnineconomiesthatourbusinessoperatesin;steepdropinservicepricesfromcompetition;increaseinpricesofinputmaterial;changesinlawssuchastaxlawsetc.
,thatcouldadverselyimpactthecompetitivenessofVimtainglobalmarkets;foreignexchangerisks;interestraterisks;risksfromterrorismetc.
Therecouldbemanymorerisksfromexternalfactors,whichmanagementcurrentlydoesn'tforeseetobematerial.
Qualityrelatedrisks-PoorperformanceinregulatoryauditsandaccreditationbodyauditscouldadverselyimpactVimta'sbusiness.
Maintainingqualityandcomplianceispartofeveryactivityintheorganization.
Yourcompany'smanagementleadsthequalitycultureunderstandingverywellthatthisiscriticalforbusinesssuccessandsurvival.
However,surprisesfrompoororinadequateperformancebyemployeescouldleadtoregulatoryrisks.
Thereareadequatebuiltincontrolsandcheckstomitigatethisrisk.
Nevertheless,theseriskscannotbecompletelyruledout.
Financialrisks-Vimtamakescontinuousinvestmentsincapacityexpansion,marketreachandnewbusinessstreams.
Theseinvestmentsarebasedongoodbusinessjudgementthroughmarketstudy,backedupbystrongplanningandriskmitigationmeasures.
However,timefactorsandmarketdynamicscoulddelayresultsand/orcreaterisksinobtainingreturnsonsuchinvestment.
Otherfinancialrisksinclude,baddebtsfromcustomersforvariousreasons;andliquidityrisksasaresultofanypoorcashflowsthatcouldfurtherleadtonon-servicingofloans.
Yourcompanyhasdedicatedgroupsforcustomerrelationsmanagementandcreditcontrol.
Thereareadequatecheckstoidentifyriskycustomeraccountsandcontrolbusinesswiththemtominimizerisks.
Nevertheless,theseriskscannotbecompletelyruledout.
Datarisks-Asathirdpartyproviderofservices,weoftengetintovariousserviceagreements,withcustomersincludingrequirementsondataconfidentiality,datasecurityandIPprotection.
Giventhelargescaleofhumanresourcesinvolvedinourorganization,andtheinherentvulnerabilityofITsolutionsdeployed,companymaybeatriskasaresultofunintentionalviolationsofcustomercontractsandagreements,whichcouldfurtherleadtosignificantlegalrisksforthebusiness.
Thisismitigatedthroughstrongphysicalsecurityandelectronicsecuritysystems;trainingstoemployees,businesscontinuityprocessessuchaselectronicdatadisasterrecoverysystems;confidentialityoathsfromemployees;wellpropagatedwhistleblowerpoliciesetc.
OtherrisksandmitigationsBoard'sReportVimtaLabsLimited629AnnualReport2018-19thOtherrisksinclude:Criticalequipmentbreakdowns,powerbreakouts,shortsupplyofanyinputmaterialorconsumableandfireandnaturalcalamities.
Thesearehandledthrougharobustbusinesscontinuityplanwhereadequatebackupsarecreatedandtestedfromtimetotimefortheireffectiveness.
Itispossiblethattheaboveriskanalysisdoesnotcoverallrisksexhaustively.
Butbeinganexperiencedorganization,themitigationmeasuresarein-builtintotheorganization,itsstrategyandprocesses,andsofarhavehelpedtheorganizationgothrough,andgrowthrough,variousphasesofbusinessandthemarketsituations.
Itwillbemanagement'scontinuousendeavourtodevelopstrategiesthatwouldhelptheorganizationde-riskitsbusiness.
CautionaryStatementSTATEOFCOMPANY'SAFFAIRSAccountingtreatmentPerformanceKeyFinancialRatiosStatementsintheManagementDiscussionareforwardlookingandactualfactorsthatcomeintoplayforthebusinessandtheconsequentresultsmightdiffermateriallyfromthoseexpressedorimplied.
Company'sfinancialstatementshavebeenpreparedinlinewithIndianAccountingStandards(Ind-AS).
Thereisnochangeinaccountingtreatmentduringtheyearunderreview.
TotalIncomefortheyear2018-19isRs.
2145.
68millionascomparedtoRs.
1846.
48millioninthepreviousyear.
Duringtheyearunderreview,thetotalincomehasgoneupby16.
20%ascomparedtothepreviousyear.
NetProfitbeforetaxisRs.
351.
41millionascomparedtoRs.
255.
64millioninthepreviousyear.
ProfitfortheyearincludingothercomprehensiveincomestoodatRs.
248.
30millionascomparedtoRs.
159.
05millionofpreviousyear.
InaccordancewithSEBI(ListingobligationsandDisclosurerequirement2018)(Amendment)Regulations,2018,thecompanyisrequiredtogivedetailsofsignificantchanges(changesof25%ormoreascomparedtotheimmediatelypreviousfinancialyear)inkeysectorspecificfinancialratios.
ThecompanyhasidentifiedthefollowingratiosaskeyfinancialratiosDebtorsTurnoverRatio(indays)-DividedbyaverageaccountsreceivableforlasttwoyearsbytherevenuefromoperationsforFY2018-19,andmultipliedby365days.
InventoryTurnoverRatio(indays)-DividedbyaverageaccountsreceivableforlasttwoyearsbytherevenuefromoperationsforFY2018-19,andmultipliedby365days.
FinancialYear2018-19RatioDebtorsTurnoverRatio(indays)98.
2397.
840.
40%InventoryTurnoverRatio(indays)32.
0238.
68(17.
22)%InterestCoverageRatio8.
625.
9145.
88%CurrentRatio2.
131.
6827.
14%DebtEquityRatio0.
380.
53(27.
20)%OperatingProfitMargin(%)17.
7816.
1010.
39%NetProfitMargin(%)11.
798.
8932.
64%ReturnonNetWorth(%)15.
6311.
3937.
27%FinancialYear2017-18ChangeoverFY2017-18vsFy2018-19OperatingProfitMargin-DividedbyaverageinventoryforlasttwoyearsbytherevenuefromoperationforFY2018-19,andmultipliedby365days.
Ratioswhere,therehasbeenasignificantchangefromfinancialyear2017-18tofinancialyear2018-19areasfollowsInterestcoverageratio-iscalculatedconsideringtheEarningsbeforeInterestandTax(EBIT)dividedbytheInterestExpenses.
TheInterestCoverageRatio(ICR)isusedtodeterminehowwellacompanycanpaytheinterestexpensesonitsoutstandingdebts.
Italsoindicatesthathowmanytimesthecompanycanpayitsinterestcomparedtoitsoperatingprofit.
ThehigherInterestcoverageratioindicatesthelesserchanceofdefaultbythecompany.
ThecompanyInterestcoverageratiohasmainlyscaledupfrom5.
91timesto8.
62times,duetoincreaseinitsrevenueandoperationsprofitmarginvsreductioninthefinancecostduetolowerutilisationofworkingcapitallimitduringtheyear.
CurrentRatio-isaliquidityratiothatindicatescompany'sabilitytopaynetshort-termobligationswithinaperiodofoneyear.
Thehigherofthecurrentratioreflectsthatthecompanyismorecapableinpayingitsobligationsbecauseithasalargerproportionofshort-termassetvaluerelativetothevalueofitsshort-termliabilities.
Thecompanycurrentratiohasmainlyscaledupfrom1.
68timesto2.
13timesduetolowerutilisationofworkingcapitallimit,reductionoftradepayableliabilitiesandincreaseinreceivableswiththegrowthofthecompany.
DebtEquity(D/E)Ratio-iscalculatedbydividingacompany'stotalliabilitiesbyitsshareholderequity.
TheD/Eratioisameasureofthedegreetowhichacompanyisfinancingitsoperationsthroughdebtversuswhollyownedfunds.
Morespecifically,itreflectstheabilityofshareholderequitytocoveralloutstandingdebtsintheeventofabusinessdownturn.
ThecompanyDebtEquityhasmainlyreducedfrom0.
53timesto0.
38timesduetolowerutilisationofworkingcapital&reductionoflongtermborrowingvsgrowthintheretainedearningsofthecompany.
NetProfitMargin:-reflectsthenetprofitaftertaxisgeneratedasapercentageofTotalIncome.
Bytrackingincreasesanddecreasesinitsnetprofitmargin,aperformanceofthecompanycanbemeasuredinabsoluteterms.
Furtheritalsoindicatesthatwhetherthecompany'smanagementisgeneratingenoughprofitfromitssalesandwhetheroperatingcostsandoverheadcostsarebeingcontained.
Theincreaseinnetprofitisduetoincreaseinrevenueforfinancialyear2018-19by16%overfinancialyear2017-18,whereasoperatingexpensesandmanpowercostshaveincreasedbyaround10%&11%overfinancialyear2017-18.
Taxliabilityofthishasalsoincreasedbyaround8%infinancialyear2018-19comparedtofinancialyear2017-18duetocertainbenefitsofpriorperiodexpensesanddeferredtaxbenefits.
ReturnonNetWorth-Returnonnetworth(RONW)isameasureoffinancialperformancecalculatedbydividingnetprofitaftertaxbyaverageshareholders'equity.
RONWisconsideredameasureofhoweffectivelymanagementisusingacompany'sassetstocreateprofits.
Theincreaseof54%oftheprofitaftertaxinFY2018-19overFY2017-18duetothereductioninoperatingcost%andtaxexpenses%comparedtogrowth%inincomefromrevenuehascontributedforthereturnonnetworth.
Therewerenomaterialchangesandcommitments,affectingthefinancialpositionoftheCompanywhichhaveoccurredbetweentheendofthefinancialyearoftheCompanytowhichthefinancialstatementsrelate,andthedateofthisreport.
MaterialChangesandCommitmentsBoard'sReportVimtaLabsLimited729AnnualReport2018-19thDividendTransfertoReservesFixedDepositsBOARDParticularsofBoardofDirectorsanditsCommitteesParticularsofchangesinDirectorshipandKeyManagerialPersonnelDeclarationbyIndependentDirectorsYourDirectorshaverecommendedadividendofRs.
2/-perequityshareofRs.
2/-each,for2018-19fiscal.
YourDirectorshavedecidednottotransferanyportionofitscurrentyear'sprofitstotheReserves.
YourCompanyhasnotacceptedanyfixeddepositsandassuchnoprincipalorinterestwasoutstandingasonthedateoftheBalanceSheet.
CompositionandparticularsofBoardofDirectors,itsCommitteesalongwithtermsofreferenceandmeetingsheldduringtheyearunderreviewandthematrixofcompetencyoftheDirectorsaregivenindetailinthereportoncorporategovernance.
DuringtheperiodunderreviewtheBoardhasacceptedalltherecommendationsofAuditCommittee.
NoneoftheDirectorsontheBoardofyourCompanyhavebeendebarredordisqualifiedfrombeingappointedortocontinueasDirectoroftheCompanybySEBI,MCAoranyotherStatutoryAuthority.
TheCompanyisinComplianceofallSecretarialStandardsasprescribedbytheInstituteofCompanySecretariesofIndia.
Shri.
AVenkataRamanagotrelievedonAugust31,2018fromtheservicesoftheCompanyasCompanySecretaryonaccountofhisresignation.
Consequently,Smt.
SujaniVasiredditookuptheofficeofCompanySecretaryw.
e.
f.
,August31,2018.
Shri.
MMuraliMohanaRaogotrelievedonDecember01,2018fromtheservicesoftheCompanyasChiefFinancialOfficeronaccountofhisresignation.
Consequently,Shri.
AmitPathaktookuptheofficeofChiefFinancialOfficerw.
e.
f.
,January01,2019.
TheIndependentDirectorsoftheCompanyhavesubmittedtheirdeclarationsasrequiredunderSection149(7)oftheCompaniesAct,2013statingthattheymeetthecriteriaofindependenceaspersub-section(6)ofSection149oftheAct.
Prof.
D.
BalasubramanianhassubmittedhisresignationeffectivefromMarch31,2019duetohispre-occupation.
ConsequenttotheresignationofProf.
DBalasubramanianandkeepinginviewofforthcomingexpirationofthetenureofShri.
T.
S.
AjaiandShri.
RaoPPotharlankaw.
e.
f.
May16,2019asIndependent&Non-ExecutiveDirectorsoftheCompany,yourBoardofDirectorsintheirmeetingheldonMay11,2019haveappointedShriGPurnachandraRao;ShriPopuriAdheyyaChowdary(PAChowdary)andShriSanjayDaveasAdditionalDirectorsinthecapacityofIndependent&Non-ExecutiveDirectorsoftheCompany.
YourDirectorsrecommendtheirappointmentasindicatedintheNoticecallingtheAnnualGeneralMeeting.
YourDirectorshaveplacedonrecordthevaluablecontributionsmadebyProf.
DBalasubramanian;Shri.
T.
S.
AjaiandShri.
RaoPPotharlankatotheBoardandforthegrowthofyourCompany.
ThetermofShri.
VVPrasad,ExecutiveDirector–AdministrationwouldbeexpiringonJuly14,2019andhehasconveyedhisintentionnottocontinueontheBoardoftheCompany.
YourDirectorshavealsoplacedonrecordthevaluablecontributionmadebyShri.
VVPrasad,ExecutiveDirector–AdministrationtotheBoardandforthegrowthofyourCompany.
YourDirectorsintheirmeetingheldonMay11,2019haveappointedShri.
SatyaSreenivasNeerukondaasAdditionalDirectorinthecapacityofWhole-time-Director(ExecutiveDirector)w.
e.
f.
July14,2019.
YourDirectorsrecommendhisappointmentasindicatedintheNoticecallingtheAnnualGeneralMeeting.
NominationandRemunerationPolicyAnnualEvaluationofPerformanceofBoarditsCommitteesandofDirectorsTrainingofIndependentDirectorsStatementofparticularsofappointmentandremunerationofManagerialpersonnel&particularsofemployeesDirectors'ResponsibilityStatementIncompliancewiththeprovisionsofSection178oftheCompaniesAct,2013andRegulation19ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015theNominationandRemunerationCommitteehasrecommendedtotheBoardaNominationandRemunerationpolicywithrespecttocriteriafordeterminingqualifications,positiveattributes,independenceofDirectors;andappointment/nominationandremunerationpayablefortheDirectors,KeyManagerialPersonnelandseniorlevelemployeesoftheCompany.
ThesaidpolicyhasbeenadoptedbytheBoardandthesameisattachedasAnnexure-IItotheBoard'sReportandisalsoavailableonCompany'swebsitewww.
vimta.
com.
TheBoardandtheIndependentDirectorshavecarriedoutevaluationsfortheyear2018-19w.
r.
t.
,performanceoftheBoard,itsCommittees,theindividualDirectorsincludingIndependentDirectorsandtheChairperson,incompliancetotheprovisionsofCompaniesAct,2013andSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.
TheevaluationreportsaremeetingtheexpectationsoftheBoard.
FurthertheNominationandRemunerationCommitteehasalsoevaluatedtheperformanceofeachDirector.
TheevaluationcriteriahavebeenexplainedinthereportoncorporategovernanceappendedtotheBoard'sreport.
ForeveryDirectorinductednewlytotheBoard,thereisasystemtomakethemundergoanorientationprograminordertogetfamiliarizedwiththestrategy,operationsandfunctionsoftheCompany.
TheExecutiveDirectors/seniorpersonnelmakepresentationstotheinducteesabouttheCompany'sstrategy,operations,serviceofferings,markets,organizationstructure,finances,humanresources,technology,facilities,riskmanagement,etc.
AfterfamiliarizationprogramthedetailsofthesamearepostedontheCompany'swebsitewww.
vimta.
com.
Further,atthetimeofappointmentofanIndependentDirector,theCompanyissuesaformalletterofappointmentoutlininghis/herrole,functions,dutiesandresponsibilitiesasanIndependentDirector.
ThecontentsoftheletterofappointmentisavailableonCompany'swebsitewww.
vimta.
com.
PursuanttoSection197(12)readwithRule5(1)and5(2)ofCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014,detailsofremunerationofmanagerialpersonnelandparticularsofemployeesareappendedasAnnexure-IIItotheBoard'sreportandformpartoftheAnnualReport.
PursuanttotheprovisionsofSection134(5)oftheCompaniesAct,2013(theAct)yourBoardofDirectorsstatethat:a)Inthepreparationofannualaccounts,applicableaccountingstandardshavebeenfollowedalongwithproperexplanationrelatingtomaterialdepartures;b)TheyhaveselectedsuchaccountingpoliciesandappliedthemconsistentlyandmadejudgmentsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyattheendofthefinancialyearandoftheprofitandlossforthatperiod;c)TheyhavetakenproperandsufficientcareforthemaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudandotherirregularities;d)Theyhavepreparedtheannualaccountsonagoingconcernbasis;Board'sReportVimtaLabsLimited829AnnualReport2018-19the)TheyhavelaiddowninternalfinancialcontrolstobefollowedbytheCompanyandthatsuchinternalfinancialcontrolsareadequateandwereoperatingeffectively;andf)Theyhavedevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsandthatsuchsystemswereadequateandoperatingeffectively.
AlltransactionsenteredintobytheCompanywiththeRelatedPartiesasdefinedintheCompaniesAct,2013wereintheordinarycourseofbusinessandareonarm'slengthpricingbasis.
TheAuditCommitteegrantedapprovalsforthetransactionsandthesamewerereviewedandconsentedbytheBoardofDirectors.
TheserelatedpartytransactionsarenotmateriallysignificantandnotinconflictwiththeinterestoftheCompany.
DetailsofcontractsandarrangementswithrelatedpartiesasreferredtoinSection188(1)oftheCompaniesAct,2013aregivenasAnnexure-ItotheBoard'sReportinFormNo.
AOC-2pursuanttoSection134(3)(h)oftheActreadwithRule8(2)oftheCompanies(Accounts)Rules2014.
TherearenosubsidiaryCompanies.
Hence,disclosureunderA(2)ofScheduleVofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015isnotapplicable.
TheCompanyhaswell-definedandeffectiveinternalfinancialcontrolswhichareadequateandcommensuratewiththesizeandnatureofitsbusiness.
Thecontrolsareadequateforensuringtheorderlyandefficientconductofthebusiness,includingadherencetotheCompany'spolicies,safeguardingofassets,preventionanddetectionoffraudanderrors,theaccuracyandcompletenessofaccountingrecordsandtimelypreparationofreliablefinancialinformation.
TheCompanyisintheBusinessofprovidingTestingandContractResearchservicesinthefieldsofClinicalResearch,Pre-ClinicalResearch,ClinicalDiagnostics,cGMPAnalyticalResearch&TestingservicesforPharmaceuticalsandBiopharmaceuticals;AnalyticaltestingservicesforFood&Agriproducts;andEnvironmentalstudies.
Sincetheinherentnatureofalltheseservicesareinterrelatedandgovernedbysimilarsetofrisksandreturnsandoperatinginthesameeconomicenvironment,segmentreportingisnotapplicable.
Accordingly,forreportingpurposes,alltheseservicesaretreatedassinglebusinessandgeographicalsegment.
ThesaidtreatmentisinaccordancewithInd-AS108SegmentReporting.
HumanResourceisoneofthekeystrengthsoftheCompany.
Attheendofthefinancialyear31.
03.
2019,theCompanyhad1081employeesincluding24medicaldoctors;28PhDsand1029sciencegraduates&postgraduates,engineers,techniciansandotheradministrativestaff.
PursuanttoSection177(9)oftheCompaniesAct,2013readwithRule7oftheCompanies(MeetingsofBoardanditsPowers)Rules,2014,Regulation22ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,theBoardhasadoptedWhistleBlowerPolicy.
Thispolicyaimsforconductingtheaffairsinafairandtransparentmannerbyadoptinghigheststandardsofprofessionalism,honesty,integrityandethicalbehaviour.
Amechanismhasbeenestablishedforemployeestoreportconcernsaboutunethicalbehaviour,actualorsuspectedfraudorviolationofCodeofConductandEthics.
ThepolicyprovidesadequatesafeguardsagainstthevictimizationofemployeeswhoavailofthemechanismandallowsdirectaccesstotheChairmanoftheAuditCommitteeinexceptionalcases.
YourCompanyherebyaffirmsthatduringtheyear,noDirector/employeehavebeendeniedaccesstotheChairmanoftheAuditCommitteeandthatnocomplaintswerereceived.
PARTICULARSOFCONTRACTS&ARRANGEMENTSWITHRELATEDPARTIESINTERNALCONTROLSYSTEMSSEGMENT-WISEORPRODUCT-WISEPERFORMANCEHUMANRESOURCESVIGILMECHANISM/WHISTLEBLOWERPOLICYPARTICULARSOFLOANS,GUARANTEESORINVESTMENTSSAFETY,HEALTHANDENVIRONMENTFOREIGNEXCHANGEFLUCTUATIONSAUDITORSStatutoryAuditorsAuditReportInternalAuditorsCostAuditorsSecretarialAuditorsDuringtheyearunderreview,theCompanyhasneitherdirectlyorindirectlygivenanyloantoitsDirectorsnorextendedanyguaranteeorprovidedanysecurityinconnectionwithanyloantakenbythem.
Further,theCompanyhasneithergivenanyinter-corporateloan/advancenormadeanyinvestmentsinothercompanies.
Safety,healthandenvironmentcontinuetobethepriorityareasoftheCompany.
Someofthecontinuousactivitiesintheseareashavebeenrecyclingofwastewater,trainingofstaffatalllevelsw.
r.
t.
,safety,healthandenvironment.
Thenetgainduringtheyearonaccountofforeignexchangefluctuationsagainstoverseascustomers,vendorsandbookbalanceswasRs.
8.
22million.
ThesamewasaccountedundertheheadOtherIncomeinthestatementofProfitandLoss.
TheMembersintheirAnnualGeneralMeetingheldon27.
09.
2017haveappointedM/sGattamaneni&Co.
,CharteredAccountants(FirmReg.
No:009303S)asStatutoryAuditorsoftheCompanytoholdofficeforaperiodof5yearsuntiltheconclusionoftheAnnualGeneralMeetingtobeheldinthecalendaryear2022.
RatificationoftheirappointmentbythemembersineveryAnnualGeneralMeeting(AGM)isdoneawaybyCompaniesAmendmentAct,2017.
Hence,noresolutiontothiseffectproposedintheNoticecallingAGM.
TheAuditorshaveconfirmedthattheyholdavalidcertificateissuedbythePeerReviewBoardoftheInstituteofCharteredAccountantsofIndia.
TheStatutoryAuditorshavegiventheirreportdated11.
05.
2019onfinancialstatementsofyourCompanyrelatingtofinancialyear2018-19andthesameformpartofthisAnnualReport.
Theirreportdoesnotcontainanyqualifications,reservationsoradverseremarksordisclaimer.
NofraudswerereportedbytheStatutoryAuditorseithertotheCentralGovernmentortotheAuditCommittee/theBoardintermsofsection143(12)oftheCompaniesAct,2013.
OntherecommendationsoftheAuditCommittee,inpursuanceofSection138oftheCompaniesAct,2013readwithrulesmadethereunder,theBoardhasappointedM/sJVSL&Associates,CharteredAccountants(FirmRegistrationNo.
015002S)asInternalAuditorsoftheCompanytocarryoutinternalauditingofbooksofaccountsperiodically.
InpursuanceofSection148oftheCompaniesAct,2013readwithrulesmadethereunder,basedontherecommendationsoftheAuditCommittee,theBoardhasappointedM/sUSRao&Co.
(RegistrationNo.
102629),CostAccountantsasCostAuditorsoftheCompanytocarryouttheauditofcostrecordsmaintainedbytheCompany.
Inpursuanceofrule4(a)(ii)ofCompanies(AuditandAuditors)rules2014theremunerationforthefinancialyear2019-20fixedbytheBoardofDirectorsandpayabletoCostAuditorsneedsaratificationbytheshareholdersoftheCompany.
Accordingly,remunerationfixedbytheBoardisplacedforratificationbeforetheshareholder.
InpursuanceofSection204oftheCompaniesAct,2013readwithrulesmadethereunder,theBoardhasappointedM/sDHanumantaRaju&Co.
,practicingCompanySecretariesasSecretarialAuditorsoftheCompanytocarryoutthesecretarialaudit.
TheSecretarialAuditReportfortheyearendedMarch31,2019issuedinFormMR-3isprovidedinAnnexure-IVtothisreport.
Board'sReportVimtaLabsLimited929AnnualReport2018-19thForandonbehalfoftheBoardDRSPVASIREDDIDate:11.
05.
2019NON-EXECUTIVEDIRECTOR&CHAIRMANPlace:HyderabadThereportcontainsaqualificationstatingthatThefinancialsummaryandthechangesinDirectorsandKeyManagerialPersonnelweregivensupra.
Duringtheyearunderreview,thereisnochangeinthenatureofbusinessoftheCompanyandithasnosubsidiaries,jointventuresorassociatecompanies.
Duringtheyearunderreview,theCompanyhasnotacceptedanydepositsintermsofSection73oftheCompaniesAct,2013andtherulesmadethereunderandhenceprovidingcompliancestatementwithrespecttotheprovisionsofChapterVoftheActisnotapplicable.
Duringtheyearunderreview,therearenoorderspassedbytheregulatorsorcourtsortribunalsimpactingthegoingconcernstatusandCompany'soperationsinfuture.
TheCompanyhaswell-definedandeffectiveinternalfinancialcontrolswhichareadequateandcommensuratewiththesizeandnatureofitsbusiness.
Thisisdiscussedsupraunder"Business-ManagementDiscussionandAnalysis".
ACommitteewasformedincompliancetotheprovisionsoftheSexualHarassmentofWomenatWorkplace(Prevention,ProhibitionandRedressal)Act,2013inordertocurbsexualharassment,ifany,atworkplaceoftheCompany.
TherewerenocomplaintsreceivedbytheCompanyduringtheyearunderreview.
InaccordancewiththeprovisionsofSection134(3)(a)oftheCompaniesAct,2013,anextractoftheAnnualReturnintheprescribedformatisappendedasAnnexure-VtotheBoard'sReport.
TheAnnualReturnisplacedonCompany'swebsitewww.
vimta.
com.
TheCompany,asapolicybelievesthatitscorporategovernancegoesbeyondtheregulatoryrequirementandhaslaidstrongemphasisonthetransparency,accountability,responsibility,fairness,integrity,consistentvaluesystemsanddelegationacrossallofitsoperations.
AseparatesectiononCorporateGovernancealongwithaCertificatefromtheAuditorsconfirmingthecomplianceisappendedtotheBoard'sReportandformspartoftheAnnualReport.
CorporateSocialResponsibilityisacommitmentoftheCompanytothecommunityandsocietyatlarge.
TheCompanybelievesthatCSRplaysanimportantroleinanorganization'sexistence,sustainedgrowthandforoveralldevelopmentofallstakeholders&thesocietyatlarge.
Inlinewiththis,theBoardhasconstitutedCSRCommitteeandadoptedaCSRpolicyontherecommendationsoftheCommittee.
ThepolicyisplacedonCompany'swebsitewww.
vimta.
com.
DuringtheyearunderreviewyourCompanyhassupportedM/sNarsinghSwainMemorialTrust(AkarAsha)worthRs.
1.
56Millionforprovidingmedicalaidtodifferentlyabledpeopleoncharitablebasis,"IthasbeenobservedthatListedEntityhasreceivedcreditratingreportfromICRA,thecreditratingagencyon01.
10.
2018andthesameneedstobeintimatedwithin24hoursasperDisclosureofeventsorinformationunderRegulation30of(ListingObligationsandDisclosureRequirements)Regulations,2015butthesamehasbeenintimatedon01.
11.
2018".
ThedisclosureofchangeincreditratingismandatoryforthelistedentitieshavingdebtsecuritiesundertheprovisionsofRegulations55&84readwithRegulation30ofSEBI(LODR)Regulations,2015.
Thoughthesaiddisclosurewasnotmandatory,yourCompanyhasdiscloseditvoluntarilywhichwastakenforthepurposeofbankfundbasedlimts.
Thedelayindisclosurewasnotintentional.
OTHERINFORMATIONINPURSUANCEOFRULE8(5)OFCOMPANIES(ACCOUNTS)RULES,2014RISKMANAGEMENTANTISEXUALHARASSMENTEXTRACTOFANNUALRETURNCORPORATEGOVERNANCECORPORATESOCIALRESPONSIBILITY(CSR)whobelongtoeconomicallyweakersectionsofthesociety.
Further,yourCompanyhascontributedanamountworthRs.
0.
8MilliontoM/sPublicHealthFoundationofIndia(PHFI)formedicalresearchactivitiesandprograms;Rs.
0.
2MilliontoSpicMacayanorganizationwhichpromotesIndianclassicalmusicandculture.
Rs.
0.
2MillionwasprovidedtosupportPeopleforAnimalsofIndia(PFA)whichpromotesanimalwelfareandRs.
0.
5MilliontoDeputyCommissionerofPoliceCyberabadforinstallationofCCTVcamerasatruralareasofShamirpetforwomenwelfareactivities.
ReportonCSRactivityisenclosedasAnnexure-VItotheBoard'sReportincompliancetoRule8ofCompanies(CorporateSocialResponsibilityPolicy)Rules,2014.
InduecomplianceofthelistingagreementsandinaccordancewiththerequirementsprescribedbySEBI,thecashflowstatementispreparedandisappendedtothisAnnualReport.
EquitySharesoftheCompanyarelistedwithBSELimitedandNationalStockExchangeofIndiaLimitedandtherespectivelistingfeeswerepaidintimeandnoamountisoutstanding.
TheCompanyhasappointedM/sCILSecuritiesLtd.
,asitssharetransferagencyforhandlingbothphysicalandelectronictransfers.
TheCompanyhastransferredunclaimeddividendfortheyearupto2010-11toInvestorEducationandProtectionFund(IEPF).
Thedetailsofunclaimeddividendsandduedatesfortransfertothesaidfundaccountforotherfinancialyearsaredisclosedinthereportoncorporategovernance.
Further,inpursuanceofSection124(6)ofCompaniesAct,2013readwithInvestorEducationandProtectionFundAuthority(Accounting,Audit,TransferandRefund)Rules,2016thesharesoftherelevantshareholderswhohavenotclaimedtheirdividendamountrelatingto2008-09,2009-10&2010-11weretransferredtoIEPFAuthorities.
Themembersmayclaimthedividendamountand/orthesharessotransferredbymakinganapplicationwithIEPFauthoritiesintheprescribedform.
TheCompanyhasadoptedCodeofConductfortheBoardandfortheseniorlevelemployeesoftheCompanyandtheyarecomplyingwiththesaidcode.
AdeclarationbytheManagingDirectortothiseffectisfurnishedasAnnexure-VIItotheBoard'sReport.
PursuanttotheprovisionsofSection134(3)(m)oftheCompaniesAct,2013readwithRule8(3)ofCompanies(Accounts)Rules,2014,therelevantinformationpertainingtoconservationofenergytechnologyabsorption,foreignexchangeearningsandoutgoisappendedheretoasAnnexure-VIIIandformspartoftheBoard'sReport.
TheDirectorswishtoplaceonrecord,theirappreciationforthecontributionmadebytheemployeesatalllevels,fortheirsincerity,hardwork,solidarityanddedicatedsupporttotheCompany.
TheDirectorsalsowishtoplaceonrecordtheirgratitudetoshareholdersandthankthecustomers,vendors,consultants,bankersfortheircontinuedsupporttotheCompany'sgrowth.
CASHFLOWSTATEMENTSTOCKEXCHANGESSHARETRANSFERAGENCYTRANSFEROFUNCLAIMEDDIVIDENDAMOUNTANDSHARESCODEOFCONDUCTINFORMATIONONCONSERVATIONOFENERGY,TECHNOLOGYABSORPTION&FOREIGNEXCHANGEEARNINGSANDOUTGOACKNOWLEDGMENTSDrSPVasireddiPromoter,Non-ExecutiveDirector&ChairmanHarrimanVungalPromoter,ExecutiveDirector-OperationsVVPrasadPromoter,ExecutiveDirector-AdministrationNameoftheDirector&CategoryAttendanceatTSAjaiProfDBalasubramanian*RaoPurnachandraPotharlankaBoardMeetingAnnualGeneralMeetingNo.
ofotherBoards/Committeesinwhichhe/sheismemberorChairpersonBoardCommittee545434PresentPresentPresentAbsentPresentAbsent-----1---------------HaritaVasireddiManagingDirector5Present1322I)EXECUTIVEII)NON-EXECUTIVE&INDEPENDENTDIRECTORS-----YPrameelaRani5Present2INTRODUCTIONCompanyphilosophyonCorporateGovernanceBOARDOFDIRECTORSCompositionAttendanceandotherDirectorshipsVimtaLabsLimited's("Vimta"or"theCompany")CorporateGovernancephilosophystemsfromthebeliefthatCorporateGovernanceisakeyelementinimprovingefficiencyandgrowthaswellasenhancinginvestorconfidence.
CompanyalsobelievesthatCorporateGovernancegoesbeyondregulatoryrequirement,andhaslaidstrongemphasisontransparency,accountability,responsibility,fairness,integrity,consistentvaluesystemsanddelegationacrossallofitsoperations.
TheCompany'sBoardhasanoptimumcombinationofexecutiveandnon-executivedirectors.
OutofthetotalstrengthoftheBoardoneisNon-ExecutivePromoterDirector,threemembersareexecutiveandanotherfourmembersarenon-executiveindependentdirectors.
TwooftheBoardmembersareWomenDirectors.
TheChairmanoftheBoardisaPromoterDirectorandNon-Executivemember.
TheIndependentDirectorsontheBoardaresenior,competentandhighlyqualifiedfromdifferentfields.
ActiveparticipationoftheIndependentDirectorsdoesaddvalueinthedecisionmakingprocessoftheBoard.
NoneoftheDirectorshavebeendebarredordisqualifiedfrombeingappointedortocontinueasDirectorsoftheCompanybyMinistryofCorporateAffairsoranysuchstatutoryauthority.
AcertificatefromSecretarialAuditorsisannexed.
IntheopinionoftheBoard,theIndependentDirectorsfulfilltheconditionsspecifiedintheSEBI(LODR)Regulations,2015DuringtheyearendedMarch31,2019theBoardofDirectorsmetfivetimesexcludinganadjournedmeeting.
ThesemeetingswereheldonMay10,2018adjournedtoMay11,2018;June30,2018,August13,2018;November9,2018andFebruary6,2019.
TheDirectors'attendanceandtheirDirectorshipsduringtheyearendedMarch31,2019areasunder:ReportonCorporateGovernanceVimtaLabsLimited*ProfDBalasubramanianhasresignedon29.
03.
2019w.
e.
f.
31.
03.
2019beforecompletionofhistenureduetohispre-occupation.
Thesaidreasonforhisresignationwasconfirmedinhisresignationletter.
SelectionofnewDirectorsPerformanceevaluationmechanismBasedontherecommendationsoftheremunerationandnominationcommittee,theBoardwillselectanewDirectorforinductiontotheBoard.
Beforeitsrecommendations,thecommitteewillcarryoutthescreeningandselectionprocessfornewDirectors.
ThedetailsoffamiliarizationprogramsimpartedtonewlyinductedindependentdirectorsareplacedonCompany'swebsitewww.
vimta.
comItistheresponsibilityoftheBoardtomonitorandreviewtheboardevaluationframework.
TheremunerationandnominationcommitteeformulatesthecriteriaofperformanceevaluationprocedureoftheDirectorsandtheBoardasawhole.
EachBoardmemberisrequiredtoevaluatetheeffectivenessoftheBoardintermsofitsdynamicsandrelationships,informationflow,decisionmaking,relationshiptostakeholders,Companyperformance,CompanystrategyandtheeffectivenessofthewholeBoardanditsvariouscommittees.
Theperformanceindicatorsforevaluatingtheindividual/independentdirectorsare:TheirabilitytocontributeandmonitortheimplicationsofCompany'scorporategovernancepractice.
Theirabilitytocontributebyintroducingbestpracticesoftheindustryandtoaddresstop-managementissues.
Theiractiveparticipationinlong-termstrategicplanning.
Theircommitmenttothefulfillmentofobligationsasadirector,fiduciaryresponsibilitiesandparticipationinBoardandcommitteemeetings.
1029AnnualReport2018-19thDetailsofremunerationpaidtotheDirectors:DrSPVasireddi*3.
6NIL3.
6HaritaVasireddi12.
43NIL12.
43HarrimanVungal12.
43NIL12.
43VVPrasad12.
43NIL12.
43TSAjaiNILNILNILProfDBalasubramanianNIL0.
070.
07RaoPurnachandraPotharlankaNILNILNILYPrameelaRaniNIL0.
130.
13NameoftheDirectorsSalarySittingFeeTotal(inMillions)`*uptoJune30,201812241RaoPurnachandraPotharlankaYPrameelaRani44TheCompanySecretaryactedasSecretarytotheCommittee.
TSAjai,ChairmanNameoftheMemberMeetingsheld44AttendanceCompositionandAttendanceReportonCorporateGovernanceVimtaLabsLimited1129AnnualReport2018-19thNote:1.
SalaryincludesBasicSalaryandAllowances.
Duringtheyearthewhole-timeDirectorswerepaidremunerationundertheprovisionsofScheduleVPartIISectionIIoftheCompaniesAct,2013asamendedtodate.
2.
Thetermoftheexecutivedirectorsisthreeyearsandthatofindependentdirectorsisfiveyearseffectivefromtheirappointmentrespectively.
Thereisnonoticeperiodandseverancefee,otherthanpaymentofgratuityandleaveencashmenttotheexecutivedirectorsaspertheCompanypolicy.
3.
Detailsofpecuniaryrelationships;paymentsandshare-holdingofNon-ExecutiveDirectorsDuringtheFinancialYear2018-19,therearenopecuniaryrelationshipsortransactionsoftheNon-ExecutiveDirectors'vis-à-vistheCompanyNopaymentsweremadetoNon-Executive/IndependentDirectorsotherthansittingfeeasdetailedhereinabove.
NoneoftheIndependentDirectorsareholdingsharesoftheCompany.
COMMITTEESOFTHEBOARDAuditCommitteeTermsofReferenceThetermsofreferenceoftheAuditCommitteeisaspertheguidelinessetoutintheRegulation18(3)ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015andSection177oftheCompaniesAct,2013.
TheCommitteeismainlyresponsibleforMonitoringoftheCompany'sfinancialreportingprocess,disclosureofitsfinancialinformationandtoensurethecorrectness&credibilityofthefinancialstatements;Recommendingappointment,remunerationandtermsofappointmentofstatutory,internalandcostauditorsoftheCompany;ReviewingwiththeManagement,thequarterlyandannualfinancialstatementsandauditor'sreportthereonbeforesubmissiontotheboardforitsapproval;Reviewingandmonitoringtheauditor'sindependenceandperformance,andeffectivenessofauditprocess;Reviewingandprovidingitsrecommendationstotheboardw.
r.
t.
,transactionsoftheCompanywithrelatedparties;Evaluationofinternalfinancialcontrolsandriskmanagementsystems;ReviewingwiththeManagement,performanceofstatutoryandinternalauditorsandtheadequacyoftheinternalcontrolsystems;Reviewingthefindingsofanyinternalinvestigationsbytheinternalauditorsintomatterswherethereissuspectedfraudorirregularityorafailureofinternalcontrolsystemsofamaterialnatureandreportingthemattertotheboard;Discussingwithstatutoryauditorsbeforetheauditcommences,aboutthenatureandscopeofauditaswellaspost-auditdiscussiontoascertainanyareaofconcern;andReviewingthefunctioningoftheWhistleBlowermechanism.
TheCommitteecomprisesofthreemembersandarenon-executive&independentdirectorsoftheCompany.
TheChairmanoftheCommitteeTSAjaiisaseniorCharteredAccountantinpractice.
TheothermembersareRaoPurnachandraPotharlankaandYPrameelaRaniandtheyarefinanciallyProficientDuringtheyearendedMarch31,2019theAuditCommitteemetfourtimesexcludinganadjournedmeeting.
ThesemeetingswereheldonMay10,2018adjournedtoMay11,2018;August10,2018;October27,2018andFebruary2,2019.
CompositionMeetingsNominationandRemunerationCommitteeCompositionMeetingsTheroleoftheCommitteeistoformulatecriteriafordeterminingqualifications,positiveattributesandindependenceofaDirectorandrecommendtotheBoardapolicy,relatingtotheremunerationoftheDirectors,keymanagerialpersonnelandotherseniorlevelemployeesoftheCompany.
TheCommitteecomprisesofthreenon-executiveandIndependentDirectorsnamely,ShriTSAjai,Chairman,Prof.
DBalasubramanianandShriRaoPPotharlankaasMembers.
TheCompanySecretaryactsasSecretarytotheCommittee.
DuringtheyearendedMarch31,2019theNominationandRemunerationCommitteemetonMay10,2018,June30,2018andOctober27,2018.
TSAjai,ChairmanNameoftheMemberMeetingsheld3332AttendanceAttendance31RaoPurnachandraPotharlankaProf.
DBalasubramanianCompetencymatrixoftheBoardofDirectorsDrSPVasireddiLeadershipandDomainKnowledgeHaritaVasireddiLeadership,LaboratoryBusinessManagement,QualityManagementHarrimanVungalOperationalmanagement®ulatoryVVPrasadGeneralAdministrationTSAjaiCharteredAccountant,TaxConsultancyProfDBalasubramanianModernBiologyRaoPurnachandraPotharlankaPharmaceuticalManufacturingYPrameelaRaniBankingSectorNameoftheDirectorsCoreSkills/Expertise/CompetencyReportonCorporateGovernanceVimtaLabsLimitedForF/YS.
No.
VenueDate1.
MeetingTime2.
3.
2016-2017AGMRegd.
Office27.
09.
201710.
00a.
m.
Regd.
Office2015-2016AGM10.
00a.
m.
02.
09.
2016TherewerenoExtra-OrdinaryGeneralMeetingsheldduringlastthreeyears.
2017-2018AGMRegd.
Office25.
08.
201810.
00a.
m.
Allspecialresolutionsplacedbeforetheshareholdersattheabovemeetingswereapproved.
NoresolutionwasproposedwhichgottobeconductedthroughPostalballot.
Hence,noresolutionwasconductedthroughpostalballotintheaboveGeneralMeetings.
1229AnnualReport2018-19thRemunerationPolicyTheCommitteehaslaiddownapolicyontheNominationandRemunerationofDirectors,keymanagerialpersonnelandotheremployeesoftheCompanyatseniorlevel.
ThesaidpolicyisinlinewiththeprovisionsofSection178(4)oftheCompaniesActreadwithrulesmadethereunder,andRegulation19ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.
Theobjectivesandpurposeofthispolicyare,Toformulatethecriteriafordeterminingqualifications,positiveattributesofaDirector;keymanagerialpersonnelandotherseniorlevelemployeesofthecompanyandToformulateremunerationprinciplesfortheDirectors,keymanagerialpersonnelandotherseniorlevelemployeesoftheCompany.
Directorheadingthecommittee:SmtYPrameelaRaniComplianceOfficer:CompanySecretaryNo.
ofshareholders'complaintsreceivedduringtheyear:NilNo.
ofcomplaintsresolved:NilNo.
ofpendingcomplaints:NilThekeyareasofevaluationofindividualdirectors,includingIndependentDirectorsareknowledgeofbusiness,diligenceandpreparedness,effectiveinteractionwithothers,constructivecontributiontodiscussionandstrategy,concernforstakeholders,attentivenesstotheinternalcontrolsmechanismandethicalconduct.
Vimtabelievesthatbusinessenterprisesareeconomicorgansofsocietyandtobeatrulyvalueaddingorganization,Vimtashouldnotonlydeliverqualityscientificservicesbutalsodirectlynurturethesocietyanditsenvironmentinascalethatisappropriatetoitseconomics.
Inlinewiththisbelief,VimtawouldbecarryingoutCSRactivitiestobuildabetter,sustainablewayoflifefortheweaker/needysectionsofsociety.
Programmes,projectsandactivities(collectivelyknow"CSRProgrammes)areindependentofthenormalbusinessactivitiesofVimta.
TheBoardhasconstitutedCSRCommitteeconsistingofSmtHaritaVasireddi,ManagingDirectorasChairpersonoftheCommittee;ShriVungalHarriman,ExecutiveDirector-Operations;ShriVVPrasad,ExecutiveDirector-AdministrationandShriRaoPurnachandraPotharlanka,IndependentDirector,asmembersoftheCommittee.
TheCommitteemeton18.
01.
2019forabriefoverviewandtoprioritizedeploymentofavailablefundstovariousdesiringcharitableorganizations.
TheBoardhasconstitutedRiskManagementCommitteetoformulateaRiskManagementPolicyfordealingwithdifferentkindsofrisksattributabletotheoperationsoftheCompanyoutliningdifferentkindsofrisksandriskmitigatingmeasurestobeadopted.
TheBoardisresponsibleforframing,implementingandmonitoringtheriskmanagementplanoftheCompany.
Stakeholders'RelationshipGrievanceCommitteePerformanceEvaluationCriteriaforIndependentDirectorsCorporateSocialResponsibility(CSR)CommitteePhilosophyCompositionRiskManagementCommitteePhilosophyGENERALBODYMEETINGSTheDetailsofAnnualGeneralMeetingsheldinlastthreeyearsDISCLOSURESTherewerenomateriallysignificantrelatedpartytransactionsthatmayhavepotentialconflictwiththeinterestsoftheCompany.
SuitabledisclosureshavebeenmadeintheAnnualReportasrequiredbytheprovisionsoftheCompaniesAct,2013.
Duringthelastthreeyearstherewerenoinstancesofnon-compliancebytheCompanyw.
r.
t.
,StockExchangeandSEBIRegulations.
Further,nopenalties,nostricturesimposedontheCompanybyStockExchange(s)orSEBIoranyotherstatutoryauthorityonanymattersrelatingtocapitalmarket.
TheCompanyhascompliedwithallmandatoryrequirementsofSEBI(LODR)regulationsandithasadoptednonmandatoryrequirementoftheCorporateGovernanceclausewithrespectto:i)separatepostsofChairmanandManagingDirectorii)reportingofInternalAuditortotheAuditCommitteeWeblinkforpolicyondisclosureofmaterialeventsandrelatedpartytransactionsiswww.
vimta.
com/financialsCommoditypricerisksandcommodityhedgingactivitiesarenotapplicablebeingaserviceindustry.
TheCompanyhascompliedwithcorporategovernancerequirementsspecifiedinregulations17to27andclause(b)to(i)ofregulation46(2)ofSEBI(LODR)Regulations,2015.
CertificatefromCompanySecretaryinpracticeindicatingthatnoneoftheDirectorsontheBoardhavebeendebarredisannexed.
AlltherecommendationsofBoard'sCommitteeswereacceptedbytheBoard.
NocomplaintswerereceivedinrelationtoSexualHarassmentofWomenatworkplace.
InrespectofDrSPVasireddi-Non-ExecutiveDirector&Chairman:SmtHaritaVasireddi-ManagingDirectorisdaughterofDrSPVasireddiShriVVPrasad-ExecutiveDirector-AdministrationisbrotherofDrSPVasireddiInrespectofSmtHaritaVasireddi-ManagingDirector:DrSPVasireddi-NonExecutiveDirector&ChairmanisfatherofSmtHaritaVasireddiInrespectofShriVVPrasad-ExecutiveDirectorAdmn.
DrSPVasireddi-NonExecutiveDirector&ChairmanisbrotherofShriVVPrasad.
INTER-SERELATIONSHIPBETWEENWHOLETIMEDIRECTORSYearofDividendDuefortransfertoIEPFinthemonthofSl.
No.
Dateofdeclaration12011-2012Nodividendwasdeclared22012-201331.
05.
2013July202032013-201407.
07.
2014August202142014-201521.
08.
2015September202252015-201602.
09.
2016October202362016-2017Nodividendwasdeclared72017-201825.
08.
2018September2025ReportonCorporateGovernanceVimtaLabsLimited1329AnnualReport2018-19thMEANSOFCOMMUNICATIONCOMPLIANCEOFINSIDERTRADINGNORMSIncompliancetotheprovisionsoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,thequarterly,halfyearlyandannualfinancialresultsoftheCompanyaresenttotheStockExchangesimmediatelyaftertheyareapprovedbytheBoardthroughBSEListingCentreandNSEElectronicApplicationProcessingSystemandarealsoplacedontheCompany'swebsitehttp://www.
vimta.
com/financials.
Theabridgedfinancialresultsarepublishedintwonewspaperswithin48hoursoftheconclusionofthemeetingoftheBoardincompliancetotheRegulations.
Generallytheresultsarepublishedinregionalnewspapers.
Further,allthematerialinformation,ifany,whichhasbearingontheoperationsoftheCompanyissenttoallstockexchangesconcerned.
TheCompany'swebsitealsodisplaysofficialpress/newsreleases,presentationsifany,madetoinstitutionalinvestors&analystsandotherdetails/informationofinteresttovariousstakeholders.
TheCompanyhasadoptedthecodeofinternalproceduresandconductforlistedcompaniesasnotifiedbySecuritiesExchangeBoardofIndiaprohibitinginsidertrading.
ApolicydocumentoninternalcodeofconductoninsidertradingisavailablewiththeregisteredofficeandonthewebsiteoftheCompany.
AllinsidersarecomplyingwiththecodeofconductadoptedbytheCompany.
GENERALSHAREHOLDERINFORMATIONAnnualGeneralMeetingDay&Date:Saturday,July27,2019Time:3.
00PMVenue:PlotNo.
142,IDA,Phase-II,Cherlapally,Hyderabad-500051.
Financialyear:April1,2019toMarch31,2020Firstquarterresults:OnorbeforeAugust14,2019Halfyearlyresults:OnorbeforeNovember14,2019Thirdquarterresults:OnorbeforeFebruary14,2020Fourthquarter/AnnualResults:OnorbeforeMay30,2020DateofBookClosure:22.
07.
2019to27.
07.
2019(bothdaysinclusive)Dateofdividendpayment:FinancialCalendarWithin30daysfromthedateofdeclarationinAGMTransferstoIEPFAuthoritya)UnclaimeddividendDividendpertainingtothefinancialyears2001-02to2010-11whichremainunclaimedforaperiodofsevenyears,wastransferredtotheInvestorEducationandProtectionFund(IEPF).
Theunclaimeddividendsforthefinancialyears2012-13to2015-16and2017-18areduefortransfertothesaidfundaccountasdetailedinthebelowstatementandthedetailsofwhichareavailableonCompany'swebsiteandonthewebsiteofMinistryofCorporateAffairs.
Therefore,themembersmayclaimtheirdividendbeforeitstransfertothesaidFund.
b)SharesInpursuanceofSection124(6)ofCompaniesAct,2013readwithInvestorEducationandProtectionFundAuthority(Accounting,Audit,TransferandRefund)Rules,2016thesharesoftherelevantshareholderswhohavenotclaimedtheirdividendamountrelatingto2008-09,2009-10&2010-11weretransferredtoIEPFAuthorities.
Themembersmayclaimthedividendamountand/orthesharessotransferredbymakinganapplicationwithIEPFauthoritiesintheprescribedform.
ListingwithStockExchangesCompany'ssecuritiesarelistedwith"INE579C01029"ElectronicConnectivityi)BSELimitedPJTowersDalalStreet,Mumbai-400001,India.
StockCode:524394ii)NationalStockExchangeofIndiaLimited"ExchangePlaza",BandraKurlaComplexBandra(E)Mumbai-400051,India.
StockCode:VIMTALABSTheISINofdematerializedsharesoftheCompanyisi)NationalSecuritiesDepositoryLtdTradeWorld,4thFloor,KamalaMillsCompoundSenapatiBapatMarg,LowerParel,Mumbai-400013,India.
ii)CentralDepositoryServices(India)Limited,India.
MarathonFuturex,A-Wing,25thfloor,NMJoshiMargLowerParel,Mumbai400013ShareTransferAgentsM/sCILSecuritiesLtd.
214,RaghavaRatnaTowers,AbidsHyderabad-500001,India.
Phone:040-23203155;E-mail:rta@cilsecurities.
comStockPriceDataMonthlyhighandlowsharequotationsontheBSELimitedandNationalStockExchangeofIndiaLimited,Mumbaiforthefinancialyear2018-2019wereasfollows:BSELimitedHighHighYear2018-19NationalStockExchangeofIndiaLtd.
LowLowApril,2018232.
50174.
10231.
30174.
00May,2018242.
85190.
55243.
35190.
65June,2018238.
85192.
00238.
85190.
00July,2018235.
00199.
45235.
90196.
15August,2018293.
40216.
20298.
95211.
60September,2018341.
00255.
30342.
90258.
00October,2018294.
80236.
05299.
80240.
55November,2018304.
00240.
00303.
20240.
10December,2018332.
10247.
00333.
00246.
15January,2019325.
00245.
15324.
00245.
00Febrauary,2019263.
50177.
05264.
80177.
10March,2019219.
40180.
00221.
00204.
00CategoryNo.
ofShares%Indian827015337.
41ForeignPublicShareholdingInstitutionalInvestors652130.
29Non-InstitutionalInvestors1377244462.
30TOTAL22107810100ShareholdingofPromoter&PromoterGroupNilNilCategoriesofshareholdersason31.
03.
2019ReportonCorporateGovernanceVimtaLabsLimited1429AnnualReport2018-19thSharepriceperformanceincomparisontobroadbasedindices-BSESensexandNSE:BSELimitedNationalStockExchangeofIndiaLimitedApr-18May-18Jun-18Jul-18Aug-18Sep-18Oct-18Nov-18Dec-18Jan-19Feb-19Mar-19Apr-18May-18Jun-18Jul-18Aug-18Sep-18Oct-18Nov-18Dec-18Jan-19Feb-19Mar-19SharePriceIndexSharePriceIndexShareTransferSystemThesharetransfersarebeingdealtbytheCompany'sRegistrarsandTransferAgents(RTA),M/sCILSecuritiesLtd.
SharetransferswhicharereceivedinphysicalformareprocessedbyRTAandafternecessarytransfersthesharecertificatesarereturnedwithinaperiodof15to20daysfromthedateofitsreceipt,subjecttothedocumentsbeingvalidandcompleteinallrespects.
AddressforCommunicationForShareTransfersandrelatedmattersM/sCILSecuritiesLtd.
214,RaghavaRatnaTowers,AbidsHyderabad-500001,India.
Phone:040-23203155;Fax:040-66661267E-mail:rta@cilsecurities.
comForothermattersComplianceOfficerVimtaLabsLtd.
PlotNo.
142,IDA,Phase-II,Cherlapally,Hyderabad-500051,India.
Phone:040-27264141Web:www.
vimta.
com;E-mail:shares@vimta.
comCIN:L24110TG1990PLC011977SujaniVasireddi,CompanySecretaryVimtaLabsLtd.
PlotNo.
142,IDA,Phase-II,Cherlapally,Hyderabad-500051,India.
Phone:040-27264141Email:cs@vimta.
com/shares@vimta.
comDematerializationofsharesandliquidityTradinginEquitysharesoftheCompanyispermittedonlyindematerializedformaspernotificationissuedbySEBIwithduedatefortransferofphysicalshares31.
03.
2019.
Over98.
68%oftheCompany'sequityshareshavebeendematerializedason31.
03.
2019.
VimtaSharesareactivelytradedatBSELimitedandNationalStockExchangeofIndiaLtd.
SharetradingSharesheldShareholdersNo.
ofSharesFrom-ToNo.
No.
%%Upto50001065398.
24360162616.
305001-10000880.
816485602.
9310001-20000480.
447065673.
2020001-30000120.
112969051.
3430001-4000090.
083096561.
4040001-5000080.
073444841.
5650001-10000090.
086221582.
81100001&above170.
161557785470.
46Total1084410022107810100Distributionofshareholdingason31.
03.
2019Relevantturnoverdataforthefinancialyear2018-19BSELtd.
Turnovervalue*2812.
435TotalsharestradedNationalStockExchangeofIndiaLtd.
1768683462.
74610810723Asondate,theCompanyhasnotissuedanyGDRs/ADRs/Warrantsoranyconvertibleinstruments.
*(inMillions)`A.
Wehavereviewedfinancialstatementsandcashflowstatementsforthefinancialyear2018-19,andthattothebestofourknowledgeandbelief:1.
Thesestatementsdonotcontainanymateriallyuntruestatementoromitanymaterialfactorcontainstatementsthatmightbemisleading;2.
ThesestatementstogetherpresentatrueandfairviewoftheCompany'saffairsandareincompliancewithexistingaccountingstandards,applicablelawsandregulations.
B.
Thereare,tothebestofourknowledgeandbelief,notransactionsenteredintobytheCompanyduringtheyearwhicharefraudulent,illegalorviolativeoftheCompany'scodeofconduct.
C.
Weacceptresponsibilityforestablishingandmaintaininginternalcontrolsforfinancialreportingandwehaveevaluatedtheeffectivenessofinternalcontrolsystemsofthecompanypertainingtofinancialreportinganddeficienciesinthedesignandoperationofsuchinternalcontrols,ifany,ofwhichweareawarehavebeendisclosedtotheAuditorsandAuditCommitteeandstepshavebeentakentorectifythesedeficiencies.
D.
WehaveindicatedtotheAuditorsandtheAuditcommitteethatduringtheyear1.
Therewerenosignificantchangesininternalcontroloverfinancialreporting;2.
Therewerenosignificantchangesinaccountingpoliciesduringtheyearrequiringdisclosureinthenotestothefinancialstatementsand3.
WearenotawareofanyinstancesofsignificantfraudwithinvolvementthereinofthemanagementoranyemployeehavingasignificantroleintheCompany'sinternalcontrolsystemoverfinancialreporting.
ReportonCorporateGovernanceVimtaLabsLimitedCOMPLIANCECERTIFICATEHARITAVASIREDDIMANAGINGDIRECTORAMITPATHAKCHIEFFINANCIALOFFICERPlace:HyderabadDate:11.
05.
20191529AnnualReport2018-19thforGATTAMANENI&COCHARTEREDACCOUNTANTS(FirmRegn.
No.
009303SG.
SrinivasaRaoPartnerICAIMs.
No.
210535Place:HyderabadDate:11.
05.
2019AUDITORS'CERTIFICATEToTheMembersofVimtaLabsLimited1.
WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyVimtaLabsLimited,fortheyearendedMarch31,2019,asstipulatedinregulation15(2)ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.
2.
TheComplianceofconditionsofCorporateGovernanceistheresponsibilityoftheManagement.
Ourexaminationwaslimitedtoproceduresandimplementationthereof,adoptedbytheCompanyforensuingthecomplianceoftheconditionsoftheCorporateGovernance.
ItisneitheranauditnoranexpressionofopiniononthefinancialstatementsoftheCompany.
3.
Inouropinion,andtothebestofourinformationandaccordingtoexplanationsgiventous,wecertifythattheCompanyhascompliedwiththeconditionsoftheCorporateGovernanceasstipulatedintheabovementionedListingRegulations.
4.
WefurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynortheefficiencyoreffectivenesswithwhichtheManagementhasconductedtheaffairsoftheCompany.
CEO/CFOCertificationTheManagingDirectorandChiefFinancialOfficerhavecertifiedtotheBoardwithrespecttothefinancialstatements,internalcontrolsandothermatters,asrequiredbySEBI(ListingObligationsandDisclosureRequirements)Regulations,2015andthesaidcertificateisappendedtoreportoncorporategovernance,andformspartoftheAnnualReport.
S.
No.
CityAddressRegd.
Office&CentralLaboratory1.
Hyderabad141/2&142,IDA,Phase-II,Cherlapally,Pin:500051Phone:040-27264141LifeScienceFacility2.
HyderabadPlotNo.
5,MNScience&TechnologyPark,GenomeValley,Shameerpet,Hyderabad:500101Phone:040-67404040COMPANYLOCATIONSAddressesofbranchlaboratoriesandliaisonofficesareasdetailedinCompany'swebsitewww.
vimta.
com1.
Mrs.
HaritaVasireddi0024251201/04/20052.
DrSivalingaPrasadVasireddi0024228801/04/20053.
Mr.
VeerabhadraPrasadVasireddi0024235525/03/20134.
Mr.
HarrimanVungal0024262116/11/19905.
Mr.
SundarRamanAjaiThotapalli0028253712/04/20026.
Mrs.
PrameelaRaniYalamanchili0327090901/12/20177.
Mr.
RaoPurnachandraPotharlanka0518603630/01/2012NameoftheDirectorDINSl.
No.
DateofAppointmentinCompanyReportonCorporateGovernanceVimtaLabsLimited1629AnnualReport2018-19thCERTIFICATEOFNON-DISQUALIFICATIONOFDIRECTORS(PursuanttoRegulation34(3)andScheduleVParaCclause(10)(i)oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015)To,TheMembersofVIMTALABSLIMITED141/2&142,IDAPhaseIICharlapalli,Hyderabad-500802Wehaveexaminedtherelevantregisters,records,forms,returnsanddisclosuresreceivedfromtheDirectorsofVIMTALABSLIMITEDhavingCIN:L24110TG1990PLC011977andhavingregisteredofficeat141/2&142,IDAPhaseIICherlapally,Hyderabad-500802(hereinafterreferredtoas'theCompany'),producedbeforeusbytheCompanyforthepurposeofissuingthisCertificate,inaccordancewithRegulation34(3)readwithScheduleVPara-CSubclause10(i)oftheSecuritiesExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015.
Inouropinionandtothebestofourinformationandaccordingtotheverifications(includingDirectorsIdentificationNumber(DIN)statusattheportalwww.
mca.
gov.
in)asconsiderednecessaryandexplanationsfurnishedtousbytheCompany&itsofficers,weherebycertifythatnoneoftheDirectorsontheBoardoftheCompanyasstatedbelowfortheFinancialYearendingon31stMarch,2019havebeendebarredordisqualifiedfrombeingappointedorcontinuingasDirectorsofCompaniesbytheSecuritiesandExchangeBoardofIndia,MinistryofCorporateAffairs,oranysuchotherStatutoryAuthority.
Ensuringtheeligibilityfortheappointment/continuityofeveryDirectorontheBoardistheresponsibilityofthemanagementoftheCompany.
Ourresponsibilityistoexpressanopiniononthesebasedonourverification.
ThiscertificateisneitheranassuranceastothefutureviabilityoftheCompanynoroftheefficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.
ForD.
HANUMANTARAJU&CO.
COMPANYSECRETARIESCSSHAIKRAZIAPARTNERFCS:7122,CPNO:7824Place:HyderabadDate:11.
05.
2019NameoftherelatedpartyandnatureofrelationshipNatureofContracts/arrangements/transactionsSalienttermsofthecontractsorarrangementsortransactionsincludingthevalue;ifanySl.
No.
DurationofContracts/arrangements/transactionsDateofapprovalbytheBoard,ifanyJustificationForenteringintoContract/ArrangementAppointmenttoofficeorplaceofprofit:AppointedasManager–Legal&Admn.
PresentcapacityCompanySecretary&GeneralManager-Commercial1.
HarrimanVungalLeasingofproperty:ResidentialpropertyObtainedonleaseforofficepurpose2yearsw.
e.
f.
01.
04.
2018`15,000permonthwithannualescalationof10%10.
05.
2018LeaseRentalsatprevailingmarketrates.
Leaserentalspaidfortheyear@15,000/-p.
m.
`OwnerofthepropertyisExecutiveDirector–OperationsoftheCompany2.
Appointmenttoofficeorplaceofprofit:w.
e.
f.
01.
04.
2014AppointedonaMonthlyremunerationnotexceeding250,000/-permonthApprovalgivenbytheShareholdersbyspecialresolutiontopaynotexceeding500,000/-p.
m.
``BoardapprovalDt.
17.
05.
2014andShareholdersApprovalDt.
27.
09.
2017SireeshChandraVungalSonofExecutiveDirector–OperationsoftheCompanyAppointedasManager–InformationTechnologyPresentlyVicePresident-InformationTechnologyGroup3.
Appointmenttoofficeorplaceofprofit:w.
e.
f.
01.
04.
2014SatyaSreenivasNeerukondaAppointedasManager–BusinessDevelopmentPresentlySeniorVicePresidentandGlobalHeadBusinessDevelopmentSon-in-lawofExecutiveDirector–AdministrationoftheCompany4.
Appointmenttoofficeorplaceofprofit:w.
e.
f.
01.
04.
2014AppointedonaMonthlyremunerationnotexceeding250,000/-permonth`17.
05.
2014PraveenaVasireddiAppointedasExecutvie–InternalAuditingDaughterofNon-ExecutiveDirector&ChairmanandsisterofManagingDirectoroftheCompany5.
Appointmenttoofficeorplaceofprofit:w.
e.
f.
01.
04.
2014AppointedonaMonthlyremunerationnotexceeding250,000/-permonth`17.
05.
2014SudeshnaVungalAppointedasBioChemistPresentcapacity-Dy.
Manager-QualityAssuranceDaughterofExecutiveDirector–OperationsoftheCompanyCommensuratewithqualificationandexperienceanamountof145,600p.
m.
isbeingpaid`Commensuratewithqualificationandexperienceanamountof148,120p.
m.
isbeingpaid`6.
w.
e.
f.
18.
08.
2016AppointedonaMonthlyremunerationnotexceeding250,000/-permonth`12.
11.
2016SujaniVasireddiDaughterofExecutiveDirector–AdministrationoftheCompanyCommensuratewithqualificationandexperienceanamountof191,800p.
m.
isbeingpaid`AppointedonaMonthlyremunerationnotexceeding250,000/-permonthApprovalgivenbytheShareholdersbyspecialresolutiontopaynotexceeding500,000/-p.
m.
``BoardapprovalDt.
17.
05.
2014andShareholdersApprovalDt.
27.
09.
2017Commensuratewithqualificationandexperienceanamountof497,280p.
m.
isbeingpaidwhichiswithinthelimitsapprovedbyShareholders`Commensuratewithqualificationandexperienceanamountof498,400p.
m.
isbeingpaidwhichiswithinthelimitsapprovedbyShareholders`1.
TherewerenomateriallypecuniaryrelationshipsortransactionsoftheIndependentdirectors'vis-à-vistheCompany.
2.
Particularsofcontracts/arrangementsenteredintobytheCompanywithrelatedpartiesasreferredtoinsub-section(1)ofsection188oftheCompaniesAct,2013:a)Therewerenocontracts/arrangementsenteredintobytheCompanywithrelatedpartieswhicharenotatarmslengthbasis.
b)Therewerenomaterialcontracts/arrangementsenteredintobytheCompanywithrelatedpartieswhichareatarmslengthbasis.
c)Detailsofnon-materialcontracts/arrangementsatarmlengthbasiswithrelatedpartiesfortheyearendedMarch31,2019areasfollow:-Annexure-ItoBoard'sReportVimtaLabsLimitedDisclosureofParticularsofContract/ArrangementsenteredintobytheCompanyFormNo.
AOC-2(Pursuanttosection134(3)(h)oftheCompaniesAct2013andRule8(2)oftheCompanies(Accounts)Rules,2014)DrSPVasireddiNon-ExecutiveDirector&ChairmanPlace:HyderabadDate:11.
05.
20191729AnnualReport2018-19th(inMillions)`Annexure-IItoBoard'sReportVimtaLabsLimitedNominationandRemunerationpolicyIntroductionObjectiveandpurposeofthepolicyThecommitteeDefinitions'TheBoard''Directors'TheCommittee''TheCompany''IndependentDirector'KeyManagerialPersonnel(KMP)''Seniorlevelemployees'ThePolicyPart-A:StructureoftheBoaSuccessionplansEvaluationofperformanceTheCompany'spolicyontheappointmentandremunerationofDirectorsandkeymanagerialpersonnelprovidesaframeworkforpaymentofsuitableremunerationtotheDirectors,KeyManagerialPersonnel(KMP)andseniorlevelemployeesoftheCompanyandtoharmonizetheaspirationsofhumanresourcesconsistentwiththegoalsoftheCompany.
ThenominationandremunerationpolicyprovidedherewithisinlinewiththerequirementsofSection178(4)oftheCompaniesActreadwithrulesmadethereunderandSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.
TheobjectivesandpurposeofthispolicyareToformulatethecriteriafordeterminingqualifications,positiveattributesandindependenceofaDirector.

ToformulateremunerationprinciplesfortheDirectors,keymanagerialpersonnelandotherseniorlevelemployeesoftheCompany.
TheBoardhasconstitutedthenominationandremunerationcommitteeoftheBoardonOctober10,2014.
ThisisinlinewiththerequirementsofCompaniesAct,2013('theAct')andthelistingagreemententeredintowithStockExchanges.
TheBoardhasauthoritytoreconstitutethiscommitteefromtimetotime.
meansBoardofDirectorsoftheCompany.
meansDirectorsoftheCompany.
'meansthenominationandremunerationcommitteeoftheCompanyasconstitutedorreconstitutedbytheBoard,inaccordancewiththeActandapplicablelistingagreementsand/orregulations.
meansVimtaLabsLimited.
'meansadirectorreferredtoinSection149(6)oftheCompaniesAct,2013andrulesmadethereundermeans:theManagingDirectorortheChiefExecutiveOfficerandWhole-timeDirector;theCompanySecretaryandtheChiefFinancialOfficermeanspersonneloftheCompanyjustbelowthelevelofexecutivedirectors&KMPsi.
e.
atthelevelofPresidentandExecutiveVicePresidentUnlessthecontextotherwiserequires,wordsandexpressionsusedinthispolicyandnotdefinedhereinbutdefinedintheCompaniesAct,2013andListingAgreementasmaybeamendedfromtimetotimeshallhavethesamemeaningrespectivelyassignedtothemtherein.
ThispolicyisdividedintothreepartsPart-A:CoversthematterstobedealtwithandtorecommendtotheBoardPart-B:Coverstheappointmentandnomination;andPart-C:Coversremunerationandperquisitesetc.
ThefollowingmatterstobedealtwithandrecommendedtotheBoardbythecommitteeFormulatethecriteriadeterminingqualifications,positiveattributesandindependenceofadirectorandrecommendingcandidatestotheBoard,whencircumstanceswarranttheappointmentofanewdirector,havingregardtotherangeofskills,experienceandexpertise,ontheBoardandwhowillbestcomplementtheBoardinordertomakeappropriatedecisionsinthebestinterestsoftheCompanyasawhole.
ThecommitteeistoassisttheBoardinensuringthatdiversityofgender,thought,experience,knowledgeandperspectiveismaintainedintheBoardnominationprocess,inaccordancewiththeBoarddiversityrequirementsoftheCompany.
EstablishingandreviewingBoardandseniorexecutivesuccessionplanstoensureandmaintainanappropriatebalanceofskills,experienceandexpertiseontheBoardandseniorManagement.
MakerecommendationstotheBoardanappropriateperformancecriteriafortheDirectors.
FormulatethecriteriaandframeworkforevaluationofperformanceofeveryDirectorontheBoardoftheCompany.
rd1829AnnualReport2018-19thAnnexure-IIContd.
.
.
VimtaLabsLimitedIdentifyongoingtrainingandeducationprogramsfortheBoardandinparticulartothenewincumbents,asandwhenrequiredandtoensurethatnon-executiveDirectorsareprovidedwithadequateinformationregardingnatureofthebusiness,theindustryandtheirlegalresponsibilitiesandduties.
ThecommitteeisresponsibleforreviewingandmakingrecommendationstotheBoardon(a)RemunerationoftheManagingDirector,Whole-timeDirectorsand(b)TheremunerationpoliciesforKMPs,otheremployeesatseniorlevel.
ThestructureoftheremunerationtobemadekeepingthebestinterestoftheCompanyinordertoattractandmotivatetalenttopursuetheCompany'slong-termplans.
Thecriteriafortheappointmentofdirectors,KMPsandotherseniorlevelemployeesareasfollows:Thecommitteeshallidentifyandascertaintheintegrity,qualification,expertiseandexperienceofthepersonforappointmentasdirector,KMPorseniorlevelandrecommendtotheBoardhis/herappointment.
ApersontobeappointedasDirector,KMPoratseniorlevelshouldpossessadequatequalification,expertiseandexperienceforthepositionhe/sheisconsideredforappointmentto.
Thecommitteehasdiscretiontodecidewhetherqualification,expertiseandexperiencepossessedbyapersonaresufficient/satisfactoryfortheconcernedposition.
Aperson,tobeappointedasDirectorshouldpossessimpeccablereputationforintegrity,deepexpertiseandinsightsinsectors/areasrelevanttotheCompany,abilitytocontributetotheCompany'sgrowth,andcomplementaryskillsinrelationtotheotherBoardmembers.
TheCompanyshallnotappointorcontinuetheemploymentofanypersonwhohasattainedtheageof70yearsasManagingDirector/ExecutiveorWholetimeDirector.
Providedthatthetermofthepersonholdingthispositionmaybeextendedbeyondtheageof70yearswiththeapprovalofshareholdersbypassingaspecialresolution.
Awhole-timeKMPoftheCompanyshallnotholdofficeinmorethanonecompanyexceptinitssubsidiarycompanyatthesametime.
However,awhole-timeKMPcanbeappointedasanon-executivedirectorinanyCompany.
ManagingDirector/Whole-timeDirectorTheCompanyshallappointorre-appointanypersonasitsManagingDirectororWhole-timeDirectorforatermnotexceedingfiveyearsatatime.
Nore-appointmentshallbemadeearlierthanoneyearbeforetheexpiryofthetermIndependentDirectorAnIndependentDirectorshallholdofficeforatermuptofiveconsecutiveyearsontheBoardoftheCompanyandwillbeeligibleforreappointmentonpassingofaspecialresolutionbytheCompanyanddisclosureofsuchappointmentintheBoard'sreport.
NoIndependentDirectorshallholdofficeformorethantwoconsecutiveterms,butsuchIndependentDirectorshallbeeligibleforappointmentaftertheexpiryofthreeyearsofceasingtobecomeanIndependentDirector.
ProvidedthatanIndependentDirectorshallnot,duringthesaidperiodofthreeyears,beappointedinorbeassociatedwiththeCompanyinanyothercapacity,eitherdirectlyorindirectly.
AtthetimeofappointmentofanIndependentDirector,itshouldbeensuredthatthenumberofBoardsonwhichsuchIndependentDirectorservesisrestrictedtosevenlistedcompaniesasanIndependentDirectorandthreelistedcompaniesasanIndependentDirectorincasesuchpersonisservingasawhole-time(executive)Directorofalistedcompany.
WhereanyoftheDirectorbecomesdisqualifiedtobeaDirectoroftheCompanyduetoanyofthereasonsofdisqualificationsasmentionedintheCompaniesAct,2013andrulesmadethereunderorunderanyotherapplicableActs,rulesandregulations,thecommitteemayrecommendtotheBoard,withreasonsrecordedinwritingtheremovalofsuchDirectororKMPsubjecttotheprovisionsandcomplianceofthesaidAct,rulesandregulationsunderwhichsuchdisqualificationarises.
TheWhole-timeDirectors,KMPandseniorpersonnelshallretireaspertheapplicableprovisionsoftheCompaniesAct,2013andtheprevailingpolicyoftheCompany.
TheBoardwillhavethediscretiontoretaintheWhole-timeDirectors,KMPandseniormanagementpersonnelinthesamepositionorotherwise,evenafterattainingtheretirementage,forthebenefitoftheCompanysubjecttosuchapprovalsasmayberequiredundertheprovisionsoftheCompaniesAct,2013.
RemunerationtoManagingDirector;Whole-timeDirectors:Theremuneration/compensation/commissiontoDirectorswillbedeterminedbythecommitteeandrecommendedtotheBoardforapproval.
RemunerationframeworkPART-BAppointmentcriteriaandqualificationsTerm/TenureRemovalRetirementPART-CRemunerationofDirectors,KMPsandotherseniorlevelemployees1929AnnualReport2018-19thAnnexure-IIContd.
.
.
VimtaLabsLimitedTheremunerationandcommissiontobepaidtotheManagingDirectorandtheWhole-timeDirectorsshallbeinaccordancewiththeprovisionsoftheCompaniesAct,2013,andtherulesmadethereunder.
Incrementstotheexistingremuneration/compensationstructuremayberecommendedbythecommitteetotheBoardwhichshouldbewithinthelimitsapprovedbytheshareholders.
WhereanyinsuranceistakenbytheCompanyonbehalfofitsManagingDirectorand/orofitsWhole-timeDirectorsforindemnifyingthemagainstanyliability,thepremiumpaidonsuchinsuranceshallnotbetreatedaspartoftheremunerationpayabletoanysuchpersonnel.
Providedthat,ifsuchpersonisprovedtobeguilty,thepremiumpaidonsuchinsuranceshallbetreatedaspartoftheremuneration.
If,inanyfinancialyear,theCompanyhasnoprofitsoritsprofitsareinadequate,theCompanyshallpayminimumremunerationtoitsManagingDirectorandtheWhole-timeDirectorsinaccordancewiththeprovisionsofScheduleVoftheCompaniesAct,2013,includinganystatutorymodificationsoramendmentsthereof.
TheremunerationpayabletoeachNon-executiveDirectorisbasedontheremunerationstructureasdeterminedbytheBoard,andisrevisedfromtimetotime,dependingonindividualcontribution,theCompany'sperformance,andtheprovisionsoftheCompaniesAct,2013andtherulesmadethereunder.
SuchremunerationtoNon-executive/IndependentDirectorsmaybepaidwithinthemonetarylimitsapprovedbyshareholders,subjecttothelimitsnotexceeding1%oftheprofitsoftheCompanycomputedaspertheapplicableprovisionsoftheCompaniesAct,2013.
ThispolicyisframedinthebestinterestoftheCompanybasedontheprovisionsoftheCompaniesAct,2013andrulesmadethereunderandrequirementsofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.
IncaseofanysubsequentchangesintheprovisionsoftheCompaniesAct,2013oranyotherregulationswhichmakesanyoftheprovisionsinthepolicyinconsistentwiththeActorregulations,theprovisionsoftheActorregulationssoamendedwouldprevailoverthepolicy,andtheprovisionsinthepolicywouldbemodifiedinduecoursetomakeitconsistentwiththelaw.
Thispolicyshallbereviewedbythenominationandremunerationcommitteeasandwhenchangesneedtobeincorporatedinthepolicyduetochangesinregulationsorasmaybefeltappropriatebythecommittee.
AnychangeormodificationinthepolicyasrecommendedbythecommitteerequiresapprovaloftheBoard.
MinimumremunerationtoManagingDirectorandWhole-timeDirectorsRemunerationtoNon-executive/IndependentDirectorsRemunerationofotherKMPsandSeniorlevelemployeesPolicyreviewAtthetimeofappointment,theRemunerationCommitteeshallfixtheremunerationandrewardstructureforotherKMPs(i.
e.
CFO&CS)andseniorlevelemployeesbasedontheirqualificationsandexpertiseandforwarditsrecommendationstotheBoardforitsapproval.
TheannualincrementstotheseemployeestobedecidedandawardedbytheManagingDirectorbasedontheirperformanceandcalibersoastoretainthetalentinacompetitiveenvironment.
2029AnnualReport2018-19thAnnexure-IIItoBoard'sReportVimtaLabsLimitedNote:NoremunerationwaspaidtoIndependentDirectors.
MinimumremunerationwaspaidtoManagingDirectorandotherWhole-timeDirectorsinaccordancewiththetermsofappointmentasapprovedbytheshareholdersandPart-II,Section-IIofSchedule-VofCompaniesAct,2013asamendedtodate.
ii)TherewasnovariablecomponentofremunerationavailedbytheDirectors.
iii)TheremunerationpaidtotheKeyManagerialPersonnelwasaspertheremunerationpolicyoftheCompany.
iv)Therewere1081permanentemployeesontherollsoftheCompanyasonMarch31,2019.
Thepercentageincreaseinthemedianremunerationofemployeesinthefinancialyearwas5.
94%v)Theaverageincreaseinthesalaries/remunerationoftheemployeesduringtheyearwas4.
00%.
Beingserviceindustry,retentionoftalentedmanpoweristhekeyelement.
Hence,therewasanincreaseinthesalariesoftheemployeesduringtheyear.
vi)TheratiooftheremunerationofthehighestpaidDirectortothatoftheemployeewhoarenotDirectorbutreceivedremunerationinexcessofthehighestpaiddirectorduringtheyearwas:Notapplicablevii)Themarketcapitalizationason31.
3.
2019atBSEwas.
4393.
93MillionsandatNSEis.
4419.
35Millions.
ThePriceEarningRatiowasasonMarch31,2019ascomparedto23.
61asofMarch31,2018.
TheclosingpriceoftheCompany'sequitysharesontheBSEandNSEasofMarch31,2019was199.
90/-and.
```.
`.
``17.
46198.
75/-respectivelyA)i)DetailsofremunerationpaidtoDirectorsandKeyManagerialPersonnelasperrule5(1)ofCompanies(AppointmentofManagerialPersonnel)Rules2014StatementofparticularsofappointmentandremunerationofmanagerialpersonnelandparticularsofemployeesName&DesignationRemunerationreceivedQualificationsandexperienceoftheemployeeSl.
No.
NatureofemploymentDateofCommencementofemploymentAgeLastemploymentheldbeforejoiningthecompanyThe%ofequitysharesheldinthecompanyWhetherisarelativeofanydirectorofkeymanagerialpersonnelofthecompanyB)Particularsofemployeespursuanttosection197(12)readwithRule5(2)of(AppointmentofManagerialPersonnel)Rules20141.
DateofCessationofemploymentNil2129AnnualReport2018-19thNameoftheDirectorRatiooftheremunerationpaidtoDirectorstothemedianremunerationoftheemployeeexcludingmanagerialremunerationSl.
No.
PercentageincreaseinremunerationduringtheyearRemunerationpaid(inMillions)`ComparisonofremunerationagainstperformanceoftheCompany1DrSPVasireddiNon-ExecutiveDirector&Chairman46:1248.
302HaritaVasireddiManagingDirector46:132.
093VungalHarrimanExecutiveDirector-Operations4VVPrasadExecutiveDirector-Admn5TSAjaiIndependentDirectorNANA6Prof.
DBalasubramanianIndependentDirector7RaoPurnachandraPotharlankaIndependentDirector9MMuraliMohanRao03.
3712.
43248.
3046:132.
0912.
43248.
3046:132.
0912.
43248.
30NANANANANANANANANANA8YPrameelaRaniIndependentDirectorNANANANACFO(Relivedon01.
12.
2019)11:110.
422.
80248.
3010A.
VenkataRamanaCS(Relivedon31.
08.
2018)6:19.
041.
12248.
3011AmitPathakCFO(Joinedon01.
01.
2019)12:1NA0.
89248.
3012SujaniVasireddiCS(Joinedon31.
08.
2018)8:1NA2.
04248.
30PerformanceoftheCompanyfortheyear(NetProfit`inMillions)FORMNo.
MR-3SECRETARIALAUDITREPORTFORTHEFINANCIALYEARENDED31.
03.
2019[Pursuanttosection204(1)oftheCompaniesAct,2013andruleNo.
9oftheCompanies(AppointmentandRemunerationPersonnel)Rules,2014]ToTheMembersVIMTALABSLIMITED141/2&142,IDAPhaseIICherlapalli,MedchalDist.
TELANGANA-500051Annexure-IVtoBoard'sReportVimtaLabsLimitedWehaveconductedtheSecretarialAuditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporatepracticesbyVIMTALABSLIMITED(hereinaftercalledthecompany).
SecretarialAuditwasconductedinaccordancewiththeguidancenoteissuedbytheInstituteofCompanySecretariesofIndiaandinamannerthatprovidedusareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingouropinionthereon.
Basedonourverificationofthecompany'sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbythecompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofSecretarialAudit,weherebyreportthatinouropinion,theCompanyhas,duringtheauditperiodcoveringthefinancialyearendedon31stMarch,2019,compliedwiththestatutoryprovisionslistedhereunderandalsothattheCompanyhasproperBoardprocessesandcompliancemechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter:Wehaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyforthefinancialyearendedon31stMarch,2019,accordingtotheprovisionsof:(i)TheCompaniesAct,2013(theAct)andtherulesmadethereunder;(ii)TheSecuritiesContracts(Regulation)Act,1956('SCRA')andtherulesmadethereunder;(iii)TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder;(iv)ForeignExchangeManagementAct,1999andtherulesandregulationsmadethereundertotheextentofForeignDirectInvestment,OverseasDirectInvestmentandExternalCommercialBorrowings;(Notapplicabletocompanyduringtheperiodofaudit)(v)ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992('SEBIAct'):-(vi)OtherlawsapplicabletotheCompanyaspertherepresentationsmadebymanagementinclude:(a)SecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;(b)SecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;(c)TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2018;(d)SecuritiesandExchangeBoardofIndia(ShareBasedEmployeeBenefits)Regulations,2014-(NotapplicabletotheCompanyduringtheperiodofaudit);(e)SecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008-(NotapplicabletotheCompanyduringtheperiodofaudit);(f)SecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993regardingtheCompaniesActanddealingwithclient;(g)SecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009-(NotapplicabletotheCompanyduringtheperiodofaudit);(h)SecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,2018;(NotapplicabletotheCompanyduringtheperiodofaudit);(i)SecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015;(j)SecuritiesandExchangeBoardofIndia(IssueandListingofNon-ConvertibleandRedeemablePreferenceShares),Regulations,2013;-(NotapplicabletotheCompanyduringtheperiodofaudit);and(k)SecuritiesandExchangeBoardofIndia(DepositoriesandParticipants)Regulations,2018.
A.
TheDrugsandCosmeticAct,1940B.
NarcoticDrugsandPsychotropicSubstancesAct,1985andNarcoticDrugsandPsychotropicSubstances(RegulationofControlledSubstances)Order,2013C.
GoodLaboratoryPracticesaslaiddowninScheduleL-1ofDrugsandCosmeticRules,1945D.
FoodSafetyandStandardsAct,2006E.
ThePathologyandLaboratoryAct,2007F.
Bio-MedicalWaste(ManagementandHandling)Rules,1998G.
HazardousWaste(Management,HandlingandTransboundaryMovement)Rules,2008specifically2229AnnualReport2018-19thForD.
HANUMANTARAJU&COCOMPANYSECRETARIESCSSHAIKRAZIAPARTNERFCS:7122,CPNO.
:7824ThisreportistobereadwithourletterofevendatewhichisannexedasAnnexureAandformsanintegralpartofthisreport.
Annexure-IVtoBoard'sReportVimtaLabsLimitedPlace:HyderabadDate:11.
05.
2019H.
TheManufacture,StorageandImportofHazardousChemicalsRules,1989I.
ExplosivesAct,1884readwithGasCylinderRules,2004J.
Selection,installationandmaintenanceofFirst-aidFireExtinguishers-CodeofPracticeK.
ContractLabor(RegulationandAbolition)Act,1970andAndhraPradeshContractLabor(RegulationandAbolition)Rules,1971Wehavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:(i)SecretarialStandardsissuedbyTheInstituteofCompanySecretariesofIndiaandnotifiedundertheCompaniesAct,2013;(ii)TheListingAgreementsenteredintobytheCompanywithBSELimitedandNationalStockExchangeofIndiaLimited(NSE).
DuringtheperiodunderreviewtheCompanyhascompliedwiththeprovisionsoftheAct,Rules,Regulations,Guidelines,Standards,etc.
mentionedaboveexceptthefollowing:Wefurtherreportthat:TheBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectors,Non-ExecutiveDirectorsandIndependentDirectors.
TherewasnochangeinthecompositionoftheBoardofDirectorsduringtheperiodunderreview.
AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentinadvance,andasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.
Majoritydecisionsarecarriedthroughwhilethedissentingmember'sviews,ifany,arecapturedandrecordedaspartoftheminutes.
Wefurtherreportthatthereareadequatesystemsandprocessesinthecompanycommensuratewiththesizeandoperationsofthecompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.
Wefurtherreportthatduringtheauditperiodthecompanyhasnospecificevents/actionshavingamajorbearingonthecompany'saffairsinpursuanceoftheabovereferredlaws,rules,regulations,guidelines,standards,etc.
referredtoabove.

IthasbeenobservedthatListedEntityhasreceivedcreditratingreportfromICRA,thecreditratingagencyon01.
10.
2018andthesameneedstobeintimatedwithin24hoursasperDisclosureofeventsorinformationunderRegulation30of(ListingObligationsandDisclosureRequirements)Regulations,2015butthesamehasbeenintimatedon01.
11.
2018.
2329AnnualReport2018-19thAnnexure-IVContd.
.
.
VimtaLabsLimitedAnnexureA'ToTheMembersVIMTALABSLIMITED141/2&142,IDAPhaseIICherlapalli,MedchalDist.
TELANGANA-500051OurreportofevenDateistobereadalongwiththisletter1.
MaintenanceofsecretarialrecordsistheresponsibilityofthemanagementoftheCompany.
Ourresponsibilityistoexpressanopiniononthesesecretarialrecordsbasedonouraudit.
2.
Wehavefollowedtheauditpracticesandprocessesaswereappropriatetoobtainreasonableassuranceaboutthecorrectnessofthecontentsofthesecretarialrecords.
Theverificationwasdoneontestbasistoensurethatcorrectfactsarereflectedinsecretarialrecords.
Webelievethattheprocessesandpractices,wefollowed,provideareasonablebasisforouropinion.
3.
WehavenotverifiedthecorrectnessandappropriatenessoffinancialrecordsandBooksofAccountsoftheCompany.

4.
Whereeverrequired,wehaveobtainedtheManagementRepresentationaboutthecomplianceoflaws,rulesandregulationsandhappeningofeventsetc.
5.
ThecomplianceoftheprovisionsofCorporateandotherapplicablelaws,rules,regulations,standardsistheresponsibilityofmanagement.
Ourexaminationwaslimitedtotheverificationofproceduresontestbasis.
6.
TheSecretarialAuditreportisneitheranassuranceastothefutureviabilityofthecompanynoroftheefficacyoreffectivenessandwithwhichthemanagementhasconductedtheaffairsofthecompany.
Place:HyderabadDate:11.
05.
20192429AnnualReport2018-19thForD.
HANUMANTARAJU&COCOMPANYSECRETARIESCSSHAIKRAZIAPARTNERFCS:7122,CPNO.
:7824Shareholder'sNameNo.
ofSharesSl.
No.
No.
ofsharesheldatthebeginningoftheyear01.
04.
2018%oftotalsharesofthecompany%ofsharesPledged/encumberedtototalsharesNo.
ofSharesNo.
ofsharesheldattheendoftheyear31.
03.
2019%oftotalsharesofthecompany%ofsharesPledged/encumberedtototalshares%changeinshareholdingduringtheyear(ii)ShareholdingofPromotersandpromotersgroup1SivalingaPrasadVasireddi359852516.
280359852516.
2800.
002VangalHarriman17771668.
04017771668.
0400.
003VasireddiVeerabhadraPrasad14635156.
62014635156.
6200.
004AndhraPradeshIndustrialDevelopmentCorporationLtd.
5900002.
6705900002.
6700.
005HaritaVasireddi1679640.
7601679640.
7600.
006PraveenaVasireddi1225500.
5501225500.
5500.
007SujaniVasireddi1225420.
5501225420.
5500.
008SireeshChandraVungal1101010.
5001101010.
5000.
009SwarnaLathaVasireddi947650.
430947650.
4300.
0010SudheshnaVungal1000000.
4501000000.
4500.
0011RajyaLakshmiVasireddi423000.
190423000.
1900.
0012VungalRajeswari807250.
370807250.
3700.
0Total827015337.
410827015337.
4100.
00Annexure-VtoBoard'sReportVimtaLabsLimitedEXTRACTOFTHEANNUALRETURN(Asonthefinancialyearendedon31.
03.
2019)I.
REGISTRATIONANDOTHERDETAILS:i)CIN:L24110TG1990PLC011977ii)RegistrationDate:16.
11.
1990iii)NameoftheCompany:VIMTALABSLIMITEDiv)Category/Sub-CategoryoftheCompany:Servicev)AddressoftheRegisteredoffice:141/2&142,IDA,PHASE-IIandcontactdetailsCHERLAPALLYHYDERABAD:500051,TELANGANA,INDIACompanySecretary040-27264141cs@vimta.
com;shares@vimta.
comvi)WhetherlistedcompanyYes/No:YESvii)Name,AddressandContact:CILSECURITIESLIMITEDdetailsofRegistrarandTransfer214,RAGHAVARATNATOWERSAgent,ifanyCHIRAGALILANE,ABIDSHYDERABAD:500001,040-23203155rta@cilsecurities.
comTELANGANA,INDIAII.
PRINCIPALBUSINESSACTIVITIESOFTHECOMPANYAllthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated:1ContractResearch&TestingNotApplicable100%NameandDescriptionofmainproduct/servicesNICCodeoftheProduct/ServiceSl.
No.
%tototalturnoverofthecompanyIII.
PARTICULARSOFHOLDINGSUBSIDIARYANDASSOCIATECOMPANIESNILName&AddressoftheCompanyHolding/Subsidiary/AssociateSl.
No.
%ofSharesheldCIN/GLNApplicableSection2529AnnualReport2018-19th(A)PromoterandPromoterGroup1IndianSub-Total(A)(1)82701530827015337.
4182701530827015337.
410.
002ForeignSub-Total(A)(2)000000000.
00TotalshareholdingofPromoter&PromoterGroup(A)=(A)(1)+(A)(2)82701530827015337.
4182701530827015337.
410.
00(B)Publicshareholding1InstitutionsSub-Total(B)(1)580140580140.
26652130652130.
290.
032Non-InstitutionsSub-Total(B)(2)134434143362291377964362.
33134807152917291377244462.
301.
28TotalPublicshareholdingGroup(B)=(B)(1)+(B)(2)135014283362291383765762.
59135459282917291383765762.
590.
00Total(A)+(B)2177158133622922107810100.
002181608129172922107810100.
000.
00GRANDTOTAL(A)+(B)+(C)2177158133622922107810100.
002181608129172922107810100.
000.
00(a)Individuals/HUF76801530768015334.
7476801530768015334.
740.
00(b)CentralGovt.
/StateGovt.
0000.
000000.
000.
00(c)BodiesCorporate/Govt.
CorporateBodies59000005900002.
6759000005900002.
670.
00(d)FinancialInstitutions/Banks0000.
000000.
000.
00(e)Anyother(Specify)0000.
000000.
000.
00(a)Individuals(NRI/Foreignindividuals)0000.
000000.
000.
00(b)BodiesCorporate0000.
000000.
000.
00(c)Institutions0000.
000000.
000.
00(d)Anyother(Specify)0000.
000000.
000.
00(a)MutualFunds/UTI0000.
000000.
000.
00(b)Financialinstitutions/Banks57505750.
00205130205130.
090.
09(c)CentralGovt.
/StateGovt.
0000.
000000.
000.
00(d)VentureCapitalFunds0000.
000000.
000.
00(e)InsuranceCompanies0000.
000000.
000.
00(f)ForeignInstitutionalInvestors0000.
000000.
000.
00(g)ForeignVentureCapitalInvestors0000.
000000.
000.
00AlternateInvestmentFund0000.
00246000246000.
110.
11(h)ForeignPortfolioInvestor574390574390.
26201000201000.
09(0.
17)(a)Bodiescorporate70347697000704176931.
8572138117000722081132.
660.
81(b)Individualsi)IndividualshareholdersholdingnominalsharecapitaluptoRs.
1lakh4959282329229528851123.
924899924284729518465323.
45(0.
47)ii)IndividualshareholdersholdingnominalsharecapitalinexcessRs.
1lakh1157729011577295.
2479232507923253.
58(1.
65)(c)Anyother(Specify)IEPF13442901344290.
6114797301479730.
670.
06NonResidentIndian12059701205970.
5517718901771890.
800.
26NAClearingMember366080366080.
1724949302494931.
130.
96(C)SharesheldbyCustodiansandagainstwhichDepositoryReceiptshavebeenissued000000000.
00000CategoryofShareholdersDematSl.
No.
No.
ofsharesheldatthebeginningoftheyear01.
04.
2018PhysicalTotalNo.
ofsharesheldattheendoftheyear31.
03.
2019%changeduringtheyear%ofTotalSharesDematPhysicalTotal%ofTotalSharesIV.
SHAREHOLDINGPATTERN(EquitysharecapitalBreakupaspercentageofTotalEquity)i)CategorywiseshareholdingAnnexure-VContd.
.
.
VimtaLabsLimited2629AnnualReport2018-19thShareholder'sNameNo.
ofSharesSl.
No.
Shareholdingatthebeginningoftheyear01.
04.
2018TransactionsduringtheyearCumulativeshareholdingduringtheyear%oftotalsharesoftheCompanyPurchase/(Sale)No.
ofShares%oftotalsharesoftheCompany%Purchase/(Sale)1234567Annexure-VContd.
.
.
VimtaLabsLimited(iii)ChangeinPromoters'orpromotersgroupshareholding(iv)ShareholdingPatternoftoptenShareholders(otherthanDirectorsandPromoters)Shareholder'sNameNo.
ofSharesSl.
No.
Shareholdingatthebeginningoftheyear01.
04.
2018TransactionsduringtheyearCumulativeshareholdingduringtheyear%oftotalsharesoftheCompanyPurchase/(Sale)No.
ofShares%oftotalsharesoftheCompanyTHEREWERENOCHANGESDURINGTHEYEAR%Purchase/(Sale)12345671EUROFINSANALYTICALSERVICESINDIAPVTLTD2LCGCCHROMATOGRAPHYSOLUTIONSPRIVATELIMITED3ITHOUGHTWEALTHANALYTICSLLPAtthebeginningoftheyear440366819.
92Attheendoftheyear440366819.
92Atthebeginningoftheyear20831759.
42Attheendoftheyear20831759.
42Atthebeginningoftheyear00.
0027.
04.
201822770.
0122770.
0104.
05.
201854760.
0277530.
0411.
05.
2018102880.
05180410.
0818.
05.
2018403630.
18584040.
2625.
05.
2018105300.
05689340.
3101.
06.
2018271240.
12960580.
4308.
06.
2018285010.
131245590.
5615.
06.
2018233100.
111478690.
6722.
06.
2018326560.
151805250.
8230.
06.
20185170.
001810420.
8206.
07.
2018208030.
092018450.
9113.
07.
2018344690.
162363141.
0720.
07.
2018254550.
122617691.
1827.
07.
2018208000.
092825691.
2803.
08.
2018272650.
123098341.
4010.
08.
201870150.
033168491.
4312.
10.
2018(75000)(0.
34)2418491.
0902.
11.
2018161840.
072580331.
1731.
03.
201946260.
022626591.
19Attheendoftheyear2626591.
192729AnnualReport2018-19th1234567Annexure-VContd.
.
.
VimtaLabsLimited4S.
SHYAM5INVESTOREDUCATIONANDPROTECTIONFUNDAUTHORITYMINISTRYOFCORPORATEAFFAIRS6AJAYUPADHYAYA7SANJAYKUMAR8KARANSINGHTHANDI9CHOLAMANDALAMSECURITIESLIMITEDAtthebeginningoftheyear00.
0018.
05.
201895630.
0495630.
0425.
05.
2018150500.
07246130.
1101.
06.
201810100.
00256230.
1208.
06.
20181000.
00257230.
1222.
06.
2018(25715)(0.
12)80.
0023.
11.
2018523090.
24523170.
2430.
11.
2018966340.
441489510.
6718.
01.
2019(4445)(0.
02)1445060.
6515.
02.
20192000.
001447060.
6522.
02.
2019342000.
151789060.
81Attheendoftheyear1789060.
81Atthebeginningoftheyear1344290.
6130.
11.
2018106020.
051450310.
6607.
12.
201829420.
011479730.
67Attheendoftheyear1479730.
67Atthebeginningoftheyear17798506.
04.
2018150.
001780000.
8118.
05.
2018(28000)(0.
13)1500000.
6808.
06.
2018(15000)(0.
07)1350000.
6122.
06.
2018(5000)(0.
02)1300000.
5912.
10.
201810000.
001310000.
5916.
11.
201852000.
021362000.
6223.
11.
20189770.
001371770.
6230.
11.
201863830.
031435600.
6507.
12.
20185900.
001441500.
6514.
12.
201844120.
021485620.
6711.
01.
201914380.
011500000.
6815.
03.
2019(3653)(0.
02)1463470.
6631.
03.
2019(1347)(0.
01)1450000.
66Attheendoftheyear1450000.
66Atthebeginningoftheyear1250000.
57Attheendoftheyear1250000.
57Atthebeginningoftheyear1036050.
47Attheendoftheyear1036050.
47Atthebeginningoftheyear00.
0018.
05.
2018130050.
06130050.
0625.
05.
2018(11995)(0.
05)10100.
0001.
06.
2018(1010)(0.
00)00.
0024.
08.
2018200.
00200.
0024.
08.
2018(20)(0.
00)00.
0014.
09.
20182000.
002000.
0021.
09.
2018(200)(0.
00)00.
0005.
10.
2018190260.
09190260.
0912.
10.
20181390280.
631580540.
7126.
10.
2018(100)(0.
00)1579540.
7102.
11.
2018(5)(0.
00)1579490.
712829AnnualReport2018-19thShareholder'sNameNo.
ofSharesSl.
No.
Shareholdingatthebeginningoftheyear01.
04.
2018TransactionsduringtheyearCumulativeshareholdingduringtheyear%oftotalsharesoftheCompanyPurchase/(Sale)No.
ofShares%oftotalsharesoftheCompany%Purchase/(Sale)1234567(iv)ShareholdingofDirectorsandKeyManagementPersonnel1SivalingaPrasadVasireddi359852516.
28NilNil359852516.
282VungalHarrinan17771668.
04NilNil17771668.
043VasireddiVeerabhadraPrasad14635156.
62NilNil14635156.
624HaritaVasireddi1679640.
76NilNil1679640.
765TSAjai00.
00NilNil00.
006DBalasubramanian00.
00NilNil00.
007RaoPurnachandraPotharlanka00.
00NilNil00.
008YPrameelaRani00.
00NilNil00.
009MokkapatiMuraliMohanRao(CFO)*500.
00(50)Nil00.
0010AmitPathak(CFO)00.
00NilNil00.
0011AVenkataRamana(CS)**7000.
00NilNil7000.
0012SujaniVasireddi(CS)1225420.
55NilNil1225420.
551234567Annexure-VContd.
.
.
VimtaLabsLimited09.
11.
2018(6363)(0.
03)1515860.
6916.
11.
2018(51425)(0.
23)1001610.
4523.
11.
2018(3527)(0.
02)966340.
4430.
11.
2018(96634)(0.
44)00.
0007.
12.
2018214260.
10214260.
1014.
12.
201810000.
00224260.
1021.
12.
201810000.
00234260.
1128.
12.
2018(1000)(0.
00)224260.
1011.
01.
2019(6000)(0.
03)164260.
0718.
01.
2019(16121)(0.
07)3050.
0001.
02.
2019(305)(0.
00)00.
0008.
02.
20195100.
005100.
0015.
02.
2019637850.
29642950.
2922.
02.
201967800.
03710750.
3201.
03.
201954900.
02765650.
3508.
03.
2019120500.
05886150.
4015.
03.
2019277710.
131163860.
5322.
03.
2019281810.
131445670.
6531.
03.
2019(74238)(0.
34)703290.
32Attheendoftheyear703290.
32Atthebeginningoftheyear650000.
29Attheendoftheyear650000.
2910THYAGARAJANS2929AnnualReport2018-19th*upto01.
12.
2018**upto31.
08.
2018B.
RemunerationtootherDirectorsParticularsofRemunerationNameofDirector1.
IndependentDirectorsFeeforattendingboard/committeemeetings—0.
07—0.
130.
20-Commission———–--Others(ScientificAdvisoryCommitteeFee)———2.
OtherNonExecutiveDirectorFeeforattendingcommitteemeetings————-Commission————-Others,pleasespecify————NANANA—Total(1)0.
07*—0.
13*0.
20Total(2)Total(B)=(1+2)TotalManagerialRemunerationOverallceilingaspertheAct---board/——————0.
07*—0.
13*0.
200.
07*—0.
13*0.
20TSAjaiProfDBala-subramanianRaoPPotharlankaSl.
No.
TotalAmount*ExcludingServiceTaxYPrameelaRani(inMillions)`Annexure-VContd.
.
.
VimtaLabsLimitedParticularsIndebtednessatthebeginningofthefinancialyeari)PrincipalAmount399.
380.
17NIL399.
55ii)InterestduebutnotpaidNILNILNILNILChangeinIndebtednessduringthefinancialyeari)Addition24.
40NILNIL24.
40ii)Reduction165.
520.
17NIL165.
69NetChange(141.
12)(0.
17)NIL(141.
29)Indebtednessattheendofthefinancialyeari)PrincipalAmount258.
26NIL258.
26ii)InterestduebutnotpaidNILNILNILNILiii)Interestaccruedbutnotdue0.
75NILNIL0.
75Total(i+ii+iii)401.
070.
17NIL401.
24Total(i+ii+iii)259.
01NILiii)Interestaccruedbutnotdue1.
69NILNIL1.
69NILNIL259.
01SecuredLoansexcludingdepositsUnsecuredLoansDepositsTotalIndebtednessV.
INDEBTEDNESSIndebtednessoftheCompanyincludinginterestoutstanding/accruedbutnotdueforpaymentParticularsofRemunerationNameofMD/WTD/Manager1.
Grosssalary(a)Salaryasperprovisionscontainedinsection17(1)oftheIncome-taxAct,19613.
3712.
4340.
66(b)Valueofperquisitesu/s17(2)Income-taxAct,1961(c)Profitsinlieuofsalaryundersection17(3)Income-taxAct,19612.
StockOption3.
SweatEquity4.
Commission-as%ofprofit-Others,specify5.
Others,pleasespecifyTotal(A)12.
00*—CeilingaspertheActasperScheduleVPart-IISection-II12.
4312.
433.
3712.
4312.
4312.
4340.
6612.
00*12.
00*12.
00*iDrSPVasireddiHaritaVasireddiHarrimanVungalVVPrasadSl.
No.
TotalAmountVI.
REMUNERATIONOFDIRECTORSANDKEYMANAGERIALPERSONNELA.
RemunerationtoManagingDirector,Whole-timeDirectorsand/orManager:*PluscontributiontoProvidentFund(inMillions)`(inMillions)`3029AnnualReport2018-19thAnnexure-VContd.
.
.
VimtaLabsLimitedC.
RemunerationpaidtoKeyManagerialPersonnelotherthenMD,WholetimeDirectorsParticularsofRemunerationKeyManagerialPersonnel1.
Grosssalary(a)Salaryasperprovisionscontainedinsection17(1)ofthe3.
163.
696.
85Income-taxAct,1961(b)Valueofperquisitesu/s17(2)Income-taxAct,1961---——(c)Profitsinlieuofsalaryundersection17(3)Income-taxAct,1961---——2.
StockOption---——3.
SweatEquity---——4.
Commission-as%ofprofit-Others,specify———5.
Others,pleasespecify---——Total3.
163.
696.
85CompanySecretaryCFOSl.
No.
TotalAmountVII.
Penalties/Punishment/CompoundingofoffencesTypeSectionoftheCompaniesActAuthority[RD/NCLT/COURT]Appealmade,ifany(givedetails)BriefDescriptionDetailsofPenalty/Punishment/CompoundingfeesimposedPenaltyPunishmentCompoundingPenaltyPunishmentCompoundingNilNilC.
OTHEROFFICERSINDEFAULT(inMillions)`3129AnnualReport2018-19thAnnexure-VItoBoard'sReportVimtaLabsLimitedReportonCorporateSocialResponsibilityasperRule8ofCompanies(CorporateSocialResponsibilityPolicy)Rules,2014CompositionofCSRCommitteeNameoftheMemberDesignation1HaritaVasireddiChairperson2VungalHarrimanMember3VVPrasadMember4RaoPurnachandraPotharlankaMember(IndependentDirector)Sl.
No.
DetailsofCSRexpendituretobespentduringFinancialYear2018-19AverageNetProfitsforlastthreeFinancialYears:ForandonbehalfofCSRCommitteePlace:HyderabadHaritaVasireddiDate:11.
05.
2019ChairpersonMinimumCSRexpenditureprescribedis2%oflastthreefinancialyears'averagenetprofitsTotalamountprescribedtobespent:Rs.
32,56,295Amountspentduringthefinancialyear2018-19:Rs.
32,56,295Amountunspentduringthefinancialyear:NilResponsibilityStatementWe,themembersofCSRCommitteeherebyconfirmthattheimplementationandmonitoringofCSRPolicy,isincompliancewithCSRobjectivesandpolicyoftheCompany.
ThroughimplementationagencyThroughimplementationagencyCSRprojectoractivityidentifiedSectorinwhichtheprojectiscoveredProjectsorprograms(1)Localareaorother(2)SpecifythestateanddistrictwhereprojectsorprogramswasundertakenAmountoutlay(budget)projectorprogramswiseAmountspentontheprojectsorprogramsCumulativeexpenditureuptothereportingperiodAmountspentDirectorthroughimplementingagencyNarsingSwainMemorialTrust(AkarAsha)Supporttopeoplehavingdeformitiesanddisabilities,withreconstructivesurgery.
Hyderabad,Telangana15,56,295/-15,56,295/-15,56,295/-PublicHealthFoundationofIndia(PHFI)SupporttocorepublichealthprogrammessuchasImmunisation;HIV/AIDSpreventionetcNewDelhi8,00,000/-8,00,000/-8,00,000/-SpicMacaySupporttoIndianClassicalMusicandCultureBasar,Telangana2,00,000/-2,00,000/-2,00,000/-ThroughimplementationagencyThroughimplementationagencyThroughimplementationagencyPeopleforAnimalIndiaSupporttopromotionofAnimalwelfareNewDelhi2,00,000/-2,00,000/-2,00,000/-DeputyCommissionerofPoliceSupporttolocalruralcommunitywithCCTVCamerasforwomensafetyandsecurityLocalarea,Cyberabad,Telangana5,00,000/-5,00,000/-5,00,000/-DetailsofthemannerinwhichtheamountspentduringthefinancialyearParticularsFortheFinancialYearsendedMarch31NetProfit247.
61158.
1482.
69AverageNetProfitfortheprecedingthreeFinancialYears162.
81201820172016(inMillions)`BriefoutlineoftheCompany'sCorporateSocialResponsibility(CSR)policy:VimtabelievesthatCSRplaysanimportantroleinanorganization'sexistenceandsustainedgrowth.
Inlinewiththis,VimtawouldbecarryingoutCSRactivitiestobuildabetter,sustainablewayoflifefortheweakersectionsofsociety.
CSRprogrammes,projectsandactivitiesareindependentfromthenormalbusinessactivitiesofVimta.
ThecoreareasofVimta'sCSRactivitiesare:Healthcareincludingpreventivehealthcaretotheeconomicallyweakersectionsandphysically/differentlyabledpeopleofweakersections.
EradicatingextremehungerandpovertyPromotionofeducationCombatinghumanimmuno-deficiencyvirus,acquiredimmuno-deficiencysyndrome,malariaandotherdiseases.
EnvironmentalsustainabilitySocialbusinessprojectsProvidingmiddaymealstothechildrenatgovernmentschoolsProvidingdrinkingwatertoweakersectionsandtothechildrenatgovernmentschools.
Providing/developingnecessaryinfrastructureatgovernmentschoolsincludingprovidingofbooks,dressmaterial,etc.
ContributiontothePrimeMinister'sNationalReliefFundoranyotherfundsetupbytheCentralGovernmentortheStateGovernmentsforsocialeconomicdevelopmentandreliefandfundsforthewelfareoftheScheduledCastes,theScheduledTribes,otherbackwardclassesminoritiesandwomen.
3229AnnualReport2018-19thAnnexure-VIItoBoard'sReportVimtaLabsLimitedConservationofEnergy,TechnologyAbsorption,ForeignExchangeEarningsandOutgoInformationonConservationofEnergy,TechnologyAbsorption,ForeignExchangeearningsandoutgo(formingpartoftheBoard'sReportfortheyearended31stMarch,2019)TheCompanyisengagedintestingofvariousmaterialsanddifferenttypesoftestsarecarriedoutdependingonthenatureofmaterialasperrequiredspecificationsandstandards.
Testingisperformedusingdifferentinstruments.
Itmaybethataparticularmaterialneedstobetestedondifferentinstrumentsforvariousparameterssimultaneouslyasrequiredbythecustomer.
Mostofthetestequipmentsaremicroprocessorbasedanddrawonlyrequisitepower.
PowerisdrawnbydifferentequipmentsfromacommonsourceintheLab.
Besidesthis,generatorandUPSareusedasback-upsources.
i)Designedandinstalledanefficientpowerdistributionsystemtoutilizethepoweratoptimumlevelofrequirement.

ii)TheLaboratorybuildingsaredesignedinsuchawaythatduringdaytimenoartificiallightingisneededinmostareasinthelabs.
b)Additionalinvestmentandproposals,ifany,beingimplementedforreductionofconsumptionofenergy:Noadditionalinvestmentsweremadeduringtheyear.
c)Impactofthemeasuresin(a)and(b)aboveforthereductionofenergyconsumptionandconsequentimpactonthecostofproductionofgoods:Theenergyconsumptionisreducedtothebarestminimumrequirementthusreducingcosts.
d)Totalenergyconsumptionandenergyconsumptionperunitofproduction:FurnishingoftheseparticularsisnotapplicabletotheCompany.

e)Greenbuildingcertification:ThepreclinicalresearchbuildingatLifeSciencesfacilityoftheCompanyhasbeenawardedgoldratingbyIndianGreenBuildingCouncil(IGBC).
TheawardtestifiestotheCompany'seffortsforreductionofenergyconsumption,reducedwaterconsumptionandlimitedwastegeneration.
Thetests/studiesarecarriedoutaspertheprescribednational/internationalStandardsandregulations.
TheCompanyundertakescontractresearchprojectsforthesponsorsaspernationalandinternationalstandards,guidelinesandregulationssuchasISO,ICH,GCP,GLPandcGMP.
Duringthefinancialyear,theCompanyhasearnedforeignexchangeofMillions(previousyear487.
25Millions).
TheCompany'sforeignexchangeoutgowasof309.
16Millions(previousyear219.
58Millions)onimportofcapitalgoods,software,chemicals,consumables&referencestandards,travelexpenditure,professionalchargesetc.
A.
Conservationofenergya)EnergyConservationMeasuresTaken:B.
TechnologyAbsorptionC.
Foreignexchangeearningsandoutgo`648.
49```DeclarationbyManagingDirectorI,HaritaVasireddi,ManagingDirectorofVimtaLabsLimitedherebydeclarethatthemembersofBoard,KeyManagerialPersonnelandotherseniorlevelemployeesoftheCompanyareadheringtothecodeofconductadoptedbytheBoardwhichispostedonthewebsiteoftheCompany.
Place:HyderabadHaritaVasireddiDate:11.
05.
2019ManagingDirectorAnnexure-VIIItoBoard'sReport3329AnnualReport2018-19thVimtaLabsLimitedIndependentAuditor'sReport34TotheMembersofVimtaLabsLimitedWehaveauditedtheaccompanyingstandalonefinancialstatementsofVimtaLabsLimited("theCompany"),whichcomprisethebalancesheetasatMarch31,2019,theStatementofProfitandLoss(includingothercomprehensiveincome),theStatementofChangesinEquityandtheStatementofCashFlowsfortheyearendedonthatdate,andnotestothefinancialstatements,includingasummaryoftheSignificantAccountingPoliciesandotherexplanatoryinformation("thestandalonefinancialstatements").
Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidstandalonefinancialstatementsgivetheinformationrequiredbytheCompaniesAct,2013("theAct")inthemannersorequiredandgiveatrueandfairviewinconformitywiththeIndianAccountingStandardsprescribedundersection133oftheActreadwiththeCompanies(IndianAccountingStandards)Rules,2015,asamended,("IndAS")andotheraccountingprinciplesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasatMarch31,2019,theprofitandtotalcomprehensiveincome,changesinequityanditscashflowsfortheyearendedonthatdate.
WeconductedourauditofthestandalonefinancialstatementsinaccordancewiththeStandardsonAuditingspecifiedundersection143(10)oftheAct(SAs).
OurresponsibilitiesunderthoseStandardsarefurtherdescribedintheAuditor'sResponsibilitiesfortheAuditoftheStandaloneFinancialStatementssectionofourreport.
WeareindependentoftheCompanyinaccordancewiththeCodeofEthicsissuedbytheInstituteofCharteredAccountantsofIndia(ICAI)togetherwiththeindependencerequirementsthatarerelevanttoourauditofthestandalonefinancialstatementsundertheprovisionsoftheActandtheRulesmadethereunder,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheICAI'sCodeofEthics.
Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopiniononthestandalonefinancialstatements.
Keyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthestandalonefinancialstatementsofthecurrentperiod.
Thesematterswereaddressedinthecontextofourauditofthestandalonefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.
WehavedeterminedthemattersdescribedbelowtobetheKeyAuditMatterstobecommunicatedinourreport.
ReportontheAuditoftheStandaloneFinancialStatementsOpinionBasisforOpinionKeyAuditMattersAccuracyofrecognition,measurement,presentationanddisclosuresofrevenueinviewofadoptionofIndAS–115"RevenuefromContractswithCustomers"Theapplicationofthenewrevenueaccountingstandardinvolvescertainkeyjudgementsrelatingtoidentificationofdistinctperformanceobligations,determinationoftransactionpriceoftheidentifiedperformanceobligations,theappropriatenessofthebasisusedtomeasurerevenuerecognisedoveraperiod.
Additionally,newrevenueaccountingstandardcontainsdisclosureswhichinvolvescollationofinformationinrespectofdisaggregatedrevenueandperiodsoverwhichtheremainingperformanceobligationswillbesatisfiedsubsequenttothebalancesheetdate.
ReferNoteNo.
22tothestandalonefinancialstatements.
1.
PrincipalAuditproceduresperformed:WeassessedtheCompany'sprocesstoidentifytheimpactofadoptionofthenewrevenueaccountingstandard.
Ourauditapproachconsistedtestingofthedesignandoperatingeffectivenessoftheinternalcontrolsandsubstantivetestingasfollows:Evaluatedthedesignofinternalcontrolsrelatingtoimplementationofthenewstandard.
Selectedasampleofcontinuingandnewcontractsandtestedtheoperatingeffectivenessoftheinternalcontrolsrelatingtoidentificationofthespecificperformanceobligations.
Selectedasampleofcontinuingandnewcontractsandperformedthefollowingprocedures.
-Studied,analysedandidentifiedthespecificperformanceobligationsinthesecontracts.
-Comparedtheseperformanceobligationswiththatofrecordedbythecompany.
-Performedanalyticalproceduresforreasonablenessofrevenuedisclosedbytypeandserviceofferings.
S.
No.
KeyAuditMatterAuditor'sResponseProvisionforimpairmentlossinaccountsreceivables.
Thecreditlossprovisioninrespectofaccountreceivablesrepresentmanagement'sbestestimateofthecreditlossesincurredonthereceivablesatthebalancesheetdate.
Wehaveidentifiedprovisioningforcreditlossasakeyauditmatterasthecalculationofcreditlossprovisionisacomplexareaandrequiresmanagementtomakesignificantassumptionsoncustomerpaymentbehaviourandestimatingthelevelandtimingofexpectedfuturecashflows.
RefertoNoteNo.
10tothestandaloneFinancialstatements2.
Ourauditprocedureinrespectofthisareaincluded:Understandandassessthemanagement'sestimateandrelatedpoliciesusedinthecreditlossanalysisPerformedtestofkeycontrolstoanalyseoperatingeffectivenessrelatingtocalculationofimpairmentprovisions.
Reviewedthedataflowsfromsourcesystemstospreadsheet-basedmodelstotesttheircompletenessandaccuracy.
ForExpectedCreditLoss(ECL)oftradereceivablesassessedonindividuallevelbythemanagement,examinedonatestcheckbasis,theobjectiveevidencerelatingtotheimpairmentoftradereceivablesandthekeyassumptionsusedintheestimateofthecashshortfallsandreviewedwhetheramountshavebeenrecoveredaftertheendofreportingperiod.
Obtaineddebtors'creditinformationonsamplebasistoascertainwhethertheclassificationofdebtorsisincompliancewiththecompany'spolicy.
Reviewedthemanagement'sageinganalysisbasedondayspastduebyexaminingtheoriginaldocuments(suchasinvoicesandbankdepositadvices).
VerifiedthecalculationofECLofeachtypeoftradereceivablesaccordingtotheprovisionmatrix.
29AnnualReport2018-19thInformationotherthantheStandaloneFinancialStatementsandAuditor'sReportthereonManagement'sResponsibilityfortheStandaloneFinancialStatementsAuditor'sResponsibilitiesfortheAuditoftheStandaloneFinancialStatementsTheCompany'sBoardofDirectorsisresponsibleforthepreparationoftheotherinformation.
TheotherinformationcomprisestheinformationincludedintheManagementDiscussionandAnalysis,Board'sReportincludingannexuresthereto,BusinessResponsibilityReport,CorporateGovernanceandShareholder'sInformation,butdoesnotincludethestandalonefinancialstatementsandourauditor'sreportthereon.
Ouropiniononthestandalonefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.
Inconnectionwithourauditofthestandalonefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththestandalonefinancialstatementsorourknowledgeobtainedduringthecourseofourauditorotherwiseappearstobemateriallymisstated.
If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.
Wehavenothingtoreportinthisregard.
TheCompany'sBoardofDirectorsisresponsibleforthemattersstatedinsection134(5)oftheActwithrespecttothepreparationofthesestandalonefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformance,totalcomprehensiveincome,changesinequityandcashflowsoftheCompanyinaccordancewiththeIndASandotheraccountingprinciplesgenerallyacceptedinIndia.
ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingoftheassetsoftheCompanyandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthestandalonefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.
Inpreparingthestandalonefinancialstatements,managementisresponsibleforassessingtheCompany'sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.
TheBoardofDirectorsareresponsibleforoverseeingtheCompany'sfinancialreportingprocess.
Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthestandalonefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor'sreportthatincludesouropinion.
Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithSAswillalwaysdetectamaterialmisstatementwhenitexists.
Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesestandalonefinancialstatementsAspartofanauditinaccordancewiththeSAs,weexerciseprofessionaljudgmentandmaintainprofessionalscepticismthroughouttheaudit.
Wealso:Identifyandassesstherisksofmaterialmisstatementofthestandalonefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.
Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
Obtainanunderstandingofinternalcontrolsrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.
Undersection143(3)(i)oftheAct,wearealsoresponsibleforexpressingouropiniononwhetherthecompanyhasadequateinternalfinancialcontrolssysteminplaceandtheoperatingeffectivenessofsuchcontrols.
Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebymanagement.
Concludeontheappropriatenessofmanagement'suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany'sabilitytocontinueasagoingconcern.
Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor'sreporttotherelateddisclosuresinthestandalonefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.
Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor'sreport.
However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthedisclosures,andwhetherthestandalonefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

Materialityisthemagnitudeofmisstatementsinthestandalonefinancialstatementsthat,individuallyorinaggregate,makesitprobablethattheeconomicdecisionsofareasonablyknowledgeableuserofthefinancialstatementsmaybeinfluenced.
Weconsiderquantitativematerialityandqualitativefactorsin(i)planningthescopeofourauditworkandinevaluatingtheresultsofourwork;and(ii)toevaluatetheeffectofanyidentifiedmisstatementsinthefinancialstatements.
VimtaLabsLimitedIndependentAuditor'sReport3529AnnualReport2018-19thWecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.
Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.
Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthestandalonefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.
Wedescribethesemattersinourauditor'sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
1.
AsrequiredbySection143(3)oftheAct,basedonourauditwereportthat:(a)Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit.
(b)Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromourexaminationofthosebooks.
(c)TheBalanceSheet,theStatementofProfitandLossincludingOtherComprehensiveIncome,StatementofChangesinEquityandtheStatementofCashFlowdealtwithbythisReportareinagreementwiththerelevantbooksofaccount.
(d)Inouropinion,theaforesaidstandalonefinancialstatementscomplywiththeIndASspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.
(e)OnthebasisofthewrittenrepresentationsreceivedfromthedirectorsasonMarch31,2019takenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedasonMarch31,2019frombeingappointedasadirectorintermsofSection164(2)oftheAct.
(f)WithrespecttotheadequacyoftheinternalfinancialcontrolsoverfinancialreportingoftheCompanyandtheoperatingeffectivenessofsuchcontrols,refertoourseparateReportin"AnnexureA".
Ourreportexpressesanunmodifiedopinionontheadequacyandoperatingeffectivenessofthecompany'sinternalfinancialcontrolsoverfinancialreporting.
(g)WithrespecttotheothermatterstobeincludedintheAuditor'sReportinaccordancewiththerequirementsofsection197(16)oftheAct,asamended:Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theremunerationpaidbytheCompanytoitsdirectorsduringtheyearisinaccordancewiththeprovisionsofsection197oftheAct.
(h)WithrespecttotheothermatterstobeincludedintheAuditor'sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014,asamended,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:i.
TheCompanyhasdisclosedtheimpactofpendinglitigationsonitsfinancialpositioninitsstandalonefinancialstatements.

ii.
TheCompanydidnothaveanylong-termcontractsincludingderivativecontractsforwhichtherewereanymaterialforeseeablelosses.
iii.
Therehasbeennodelayintransferringamounts,requiredtobetransferred,totheInvestorEducationandProtectionFundbytheCompany.
2.
AsrequiredbytheCompanies(Auditor'sReport)Order,2016("theOrder"),issuedbytheCentralGovernmentintermsofsection143(11)oftheAct,wegivein"Annexure-B"astatementonthemattersspecifiedinparagraphs3and4oftheOrder.
ReportonOtherLegalandRegulatoryRequirementsVimtaLabsLimitedIndependentAuditor'sReportForGATTAMANENI&CO.
CharteredAccountants(FirmRegnNo.
009303S)G.
SRINIVASARAOPartner(ICAIMsNo.
210535)Place:HyderabadDate:11.
05.
20193629AnnualReport2018-19thVimtaLabsLimitedIndependentAuditor'sReportForGATTAMANENI&CO.
CharteredAccountants(FirmRegnNo.
009303S)G.
SRINIVASARAOPartner(ICAIMsNo.
210535)Place:HyderabadDate:11.
05.
2019Annexure-AtotheIndependentAuditor'sReport(ReportontheInternalFinancialControlsoverFinancialReportingunderClause(i)ofSub-section3ofSection143oftheCompaniesAct,2013Referredtoinparagraph1(f)under"ReportonOtherLegalandRegulatoryRequirementssectionofourreporttotheMembersofVimtaLabsLimitedofevendate)"WehaveauditedtheInternalFinancialControlsoverfinancialreportingofVIMTALABSLIMITED("theCompany")asofMarch31,2019inconjunctionwithourauditofthestandalonefinancialstatementsoftheCompanyfortheyearendedonthatdate.
TheBoardofDirectorsoftheCompanyisresponsibleforestablishingandmaintainingInternalFinancialControlsbasedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia("TheGuidanceNote").
Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofitsbusiness,includingadherencetorespectivecompany'spolicies,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.
OurresponsibilityistoexpressanopinionontheinternalfinancialcontrolsoverfinancialreportingoftheCompanybasedonouraudit.
WeconductedourauditinaccordancewiththeGuidanceNoteandtheStandardsonAuditing,prescribedundersection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancialcontrols.
ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.

Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness.
Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.
Theproceduresselecteddependontheauditor'sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.

Webelievethattheauditevidencewehaveobtained,issufficientandappropriatetoprovideabasisforourauditopinionontheCompany'sinternalfinancialcontrolssystemoverfinancialreportingoftheCompany.
Acompany'sinternalfinancialcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.
Acompany'sinternalfinancialcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(i)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(ii)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorisationsofmanagementanddirectorsofthecompany;and(iii)providereasonableassuranceregardingpreventionortimelydetectionofunauthorisedacquisition,use,ordispositionofthecompany'sassetsthatcouldhaveamaterialeffectonthefinancialstatements.
Becauseoftheinherentlimitationsofinternalfinancialcontrolsoverfinancialreporting,includingthepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.
Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.
Inouropinion,tothebestofourinformationandaccordingtotheexplanationsgiventous,theCompanyhas,inallmaterialrespects,anadequateinternalfinancialcontrolssystemoverfinancialreportingandsuchinternalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasatMarch31,2019,basedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofInternalFinancialControlstatedintheGuidanceNote.
Management'sResponsibilityforInternalFinancialControlsAuditors'ResponsibilityMeaningofInternalFinancialControlsoverFinancialReportingInherentLimitationsofInternalFinancialControlsoverFinancialReportingOpinion3729AnnualReport2018-19thVimtaLabsLimitedIndependentAuditor'sReportForGATTAMANENI&CO.
CharteredAccountants(FirmRegnNo.
009303S)G.
SRINIVASARAOPartner(ICAIMsNo.
210535)Place:HyderabadDate:11.
05.
2019Annexure-BtoIndependentAuditor'sReportStatementonthemattersspecifiedinParagraphs3and4oftheCompanies(Auditor'sReport)Order,2016("CARO")(Referredtoinparagraph2under'ReportonOtherLegalandRegulatoryRequirements'sectionofourreporttotheMembersofVimtaLabsLimitedofevendate)(i)InrespectoftheCompany'sfixedassets:(a)Thecompanyhasmaintainedproperrecordsshowingfullparticulars,includingquantitativedetailsandsituationofitsfixedassets.

(b)Thecompany'sfixedassetshavebeenphysicallyverifiedbythemanagementatreasonableintervalsasperaregularprogrammeofverificationwhich,inouropinion,isreasonablehavingregardtothesizeoftheCompanyandthenatureofitsassets.
Accordingtotheinformationandexplanationsgiventous,nomaterialdiscrepancieswerenoticedonsuchverificationmadeduringtheyear.

(c)Accordingtotheinformationandexplanationsgiventous,therecordsexaminedbyusandbasedontheexaminationoftheconveyancedeeds/registeredsaledeedsprovidedtous,wereportthat,thetitledeedsofalltheimmovablepropertiesoflandandbuildingswhicharefreehold,areheldinthenameofthecompanyasatthebalancesheetdate.
(ii)Accordingtotheinformationandexplanationsgiventous,thecompany'sinventoryhasbeenphysicallyverifiedbythemanagementatreasonableintervalsandinouropinion,thefrequencyandproceduresofverificationarereasonable.
Nomaterialdiscrepancieswerenoticedbetweenthephysicalstocksandthebookstocksonsuchverificationmadeduringtheyear.
(iii)Accordingtotheinformationandexplanationsgiventousandbasedonouraudit,theCompanyhasnotgrantedanyloans,securedorunsecuredtocompanies,firms,LimitedLiabilityPartnershipsorotherpartiescoveredintheregistermaintainedU/s.
189oftheCompaniesAct,2013("theAct").
Hence,theprovisionsofsub-clauses(a),(b)and(c)ofclause(iii)ofparagraph3ofCAROarenotapplicabletothecompany.
(iv)Accordingtotheinformationandexplanationsgiventousandbasedonouraudit,theCompanyhasnotgiven/madeloans,investments,guaranteesandsecuritytowhichtheprovisionsofSection185and186oftheCompaniesAct,2013areapplicable.

(v)TheCompanyhasnotaccepteddepositsduringtheyearanddoesnothaveanyunclaimeddepositsasattheyearend.
Hence,theprovisionsofclause3(v)oftheCAROarenotapplicabletothecompany.
(vi)Aspertheinformationandexplanationfurnishedtous,maintenanceofCostrecordshasbeenspecifiedbytheCentralGovernmentU/s.
148(1)oftheActforthiscompanyandweareoftheopinionthat,theprescribedaccountsandrecordshavebeenmadeandmaintainedbythecompany.
However,wehavenotconductedanyauditofthesame.
(vii)Accordingtotheinformationandexplanationsgiventousandbasedonouraudit,inrespectofstatutorydues:(a)Thecompanyhasgenerallybeenregularindepositingundisputedstatutorydues,includingProvidentFund,Employees'StateInsurance,IncomeTax,GoodsandServiceTax,DutyofCustoms,DutyofExcise,Cessandothermaterialstatutoryduesapplicabletoitwiththeappropriateauthorities.
TherewerenoundisputedamountsinrespectofProvidentFund,Employees'StateInsurance,IncomeTax,GoodsandServiceTax,DutyofCustoms,DutyofExcise,CessandothermaterialstatutoryduesasatMarch31,2019foraperiodofmorethansixmonthsfromthedatetheybecamepayable.
(b)TherewerenomaterialduesofIncometax,GoodsandServiceTax,DutyofCustoms,DutyofExcise,Cessandothermaterialstatutorydueswhichhavenotbeendepositedonaccountofanydispute.
(viii)TheCompanyhasnotdefaultedinrepaymentofloansorborrowingtoafinancialinstitution,bankandGovernment.
Thecompanyhasnotissueddebentures.
(ix)Duringtheyearunderreview,thecompanyhasnotraisedanymoneysbywayofinitialpublicofferorfurtherpublicoffer(includingdebtinstruments).
TheTermloansavailedbythecompanywereappliedforthepurposesforwhichthosewereraised.
(x)Tothebestofourknowledgeandaccordingtotheinformationandexplanationsgiventous,duringtheyear,nofraudbythecompanyornofraudontheCompanybyitsofficersoremployeeshasbeennoticedorreported.
(xi)Inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyhaspaid/providedmanagerialremunerationinaccordancewiththerequisiteapprovalsmandatedbytheprovisionsofsection197readwithscheduleVtotheAct.
(xii)TheCompanyisnotaNidhiCompanyandhencereportingunderclause3(xii)ofCAROisnotapplicabletothecompany.
(xiii)Inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyisincompliancewithSection177and188oftheActandwhereapplicable,foralltransactionswiththerelatedpartiesandthedetailsofrelatedpartytransactionshavebeendisclosedinthestandalonefinancialstatementsasrequiredbytheapplicableaccountingstandards.
(xiv)Duringtheyear,theCompanyhasnotmadeanypreferentialallotmentorprivateplacementofsharesorfullyorpartlyconvertibledebenturesandhencereportingunderclause3(xiv)oftheCAROisnotapplicabletothecompany.
(xv)Inouropinionandaccordingtotheinformationandexplanationsgiventous,duringtheyearthecompanyhasnotenteredintoanynon-cashtransactionswithitsDirectorsorpersonsconnectedtoitsDirectors.
Hence,provisionsofSection192oftheCompaniesAct,2013arenotapplicabletothecompany.
(xvi)Thecompanyisnotrequiredtoberegisteredundersection45-IAoftheReserveBankofIndiaAct,1934.
3829AnnualReport2018-19thBalanceSheetasatMarch31,2019VimtaLabsLimited(Allamountsin.
Millionsunlessotherwisestated)Theaccompanyingsignificantaccountingpoliciesandnotesareanintegralpartofthefinancialstatements.
ForForandonbehalfoftheBoardofCharteredAccountantsFirmRegnNo:009303SPartnerPlace:HyderabadDate:11May2019Gattamaneni&CoVimtaLabsLimitedG.
SrinivasaRaoDr.
S.
P.
VasireddiHaritaVasireddiHarrimanVungalTSAjaiSujaniVasireddiAmitPathakNon-ExecutiveChairmanManagingDirectorED-OperationsDirectorMembershipNo.
210535CompanySecretaryChiefFinancialOfficerPlace:HyderabadDate:11May2019NoteNoI.
ASSETSNon-currentassetsTotalNon-Currentassets1,451.
101,486.
92CurrentassetsTotalCurrentassets923.
17835.
63TotalAssets2,374.
272,322.
55EQUITYANDLIABILITIESEquityTotalequity1,715.
521,520.
53LiabilitiesNon-CurrentLiabilitiesTotalNonCurrentLiabilities225.
75303.
71CurrentLiabilitiesTotalCurrentLiabilities433.
00498.
31TotalEquityandLiabilities2,374.
272,322.
55(a)Property,PlantandEquipment51,347.
221,403.
90(b)Capitalworks-in-progress641.
82-(c)Financialassets(i)Loans7A18.
7217.
95(d)Othernon-currentassets8A43.
3465.
07(a)Inventories9190.
41182.
64(b)Financialassets(i)Tradereceivables10585.
29559.
26(ii)Cashandcashequivalents11A26.
6719.
95(iii)Bankbalancesotherthan(ii)above11B6.
786.
25(iv)Loans7B14.
2015.
14(v)Otherfinancialassets120.
840.
80(c)Othercurrentassets8B98.
9851.
59(a)Equitysharecapital1344.
2244.
22(b)Otherequity141,671.
301,476.
31(a)Financialliabilities(i)Borrowings15A115.
68194.
63(b)Provisions16A82.
8068.
40(c)Deferredtaxliabilities(Net)1711.
0321.
09(d)Othernon-currentliabilities1816.
2419.
59(a)Financialliabilities(i)Borrowings15B52.
42131.
48(ii)Tradepayables19-Outstandingduesofmicroenterprisesandsmallenterprises19.
25--Outstandingduesofcreditorsotherthanmicro&smallenterprises91.
06129.
74(iii)Otherfinancialliabilities20195.
42160.
32(b)Othercurrentliabilities2155.
1661.
32(c)Provisions16B19.
6915.
45Asat31March2019Asat31March20183929AnnualReport2018-19thAsperourreportofevendate.
NoteFortheYearNo31.
03.
2019FortheYearendedended31.
03.
2018StatementofProfit&LossfortheyearendedMarch31,2019VimtaLabsLimitedI.
IncomeTotalIncome2,145.
681,846.
48II.
ExpensesTotalExpenses1,794.
271,590.
84III.
Profitbeforetax[I-II]351.
41255.
64IV.
Taxexpense29TotalTaxExpense98.
3091.
31V.
Profitfortheyear[III-IV]253.
11164.
33VI.
OthercomprehensiveIncomeVII.
TotalComprehensiveincomefortheyear[V-VI]248.
30159.
05VIII.
Earningspershare30RevenuefromOperations222,126.
411,834.
51OtherIncome2319.
2711.
97Costofmaterialconsumedandtestingexpenditure24591.
99506.
45Changesininventoriesofwork-in-progress25(7.
78)23.
57Employeebenefitsexpense26592.
53532.
61Financecosts2746.
0752.
00Depreciationexpense5197.
23157.
00Otherexpenses28374.
23319.
21(a)CurrentTax115.
2076.
91(b)Prioryearadjustments(8.
82)2.
40(c)Deferredtax(benefit)/expense(8.
08)12.
00Itemsthatwillnotbereclassifiedtoprofitorloss(a)Re-measurementofthenetdefinedliability(6.
78)(8.
08)(b)Incometaxrelatingtotheaboveitem1.
972.
80Totalothercomprehensiveincome/(loss),netoftax(4.
81)(5.
28)Basic(INR)11.
457.
43Diluted(INR)11.
457.
434029AnnualReport2018-19th(Allamountsin.
Millionsunlessotherwisestated)Theaccompanyingsignificantaccountingpoliciesandnotesareanintegralpartofthefinancialstatements.
ForForandonbehalfoftheBoardofCharteredAccountantsFirmRegnNo:009303SPartnerMembershipNo.
210535Place:HyderabadDate:11May2019Gattamaneni&CoVimtaLabsLimitedG.
SrinivasaRaoDr.
S.
P.
VasireddiHaritaVasireddiHarrimanVungalTSAjaiSujaniVasireddiAmitPathakNon-ExecutiveChairmanManagingDirectorED-OperationsDirectorCompanySecretaryChiefFinancialOfficerPlace:HyderabadDate:11May2019Asperourreportofevendate.
ParticularsStatementofCashflowfortheyearendedMarch31,2019VimtaLabsLimitedCASHFLOWFROMOPERATINGACTIVITIESProfitbeforetaxAdjustmentstoreconcileprofitbeforetaxtonetcashflows:Adjustmentsforchangesinworkingcapital:Cashgeneratedfrom/(usedin)operations487.
81391.
18Netcashflowsgeneratedfrom/(usedin)operatingactivities(A)391.
46334.
21CashflowfromInvestingactivitiesNetcashflowgeneratedfrom/(usedin)investingactivities(B)(156.
50)(237.
66)CashflowfromFinancingactivitiesNetcashflowgeneratedfrom/(usedin)financingactivities(C)(228.
24)(82.
85)Netincreaseincashandcashequivalents(A+B+C)Cashandcashequivalentscomprise(Refernote11A)Totalcashandbankbalancesatendoftheyear26.
6719.
95351.
41255.
64-Depreciationexpense197.
23157.
00-InterestCostpaid29.
7044.
60-Impairmentlossonreceivables28.
76--BadDebtswrittenoff44.
0334.
24-Lossonsaleofassets2.
250.
05-Liabilitiesnolongerrequiredwrittenback0.
18(3.
88)-InterestIncomereceived(7.
23)(5.
45)-IncomefromGovernmentGrants(3.
35)(1.
68)-Un-realisedforeignexchangegainsandlosses(net)5.
632.
11-(Increase)/decreaseininventories(7.
76)23.
49-(Increase)/decreaseintradereceivables(101.
50)(168.
12)-(Increase)/decreaseinloans0.
16(0.
34)-(Increase)/decreaseinotherfinancialassets---(Increase)/decreaseinotherassets(47.
29)(1.
51)-Increase/(decrease)inemployeebenefitobligations11.
8619.
73-Increase/(decrease)intradepayables(19.
50)(23.
08)-Increase/(decrease)inotherfinancialliabilities9.
545.
60-Increase/(decrease)inothercurrentliabilities(6.
31)52.
78Incometaxpaid(96.
35)(56.
97)Paymentforproperty,plantandequipmentandcapitalwork-in-progress(165.
32)(243.
43)Proceedsfromsale/disposalofproperty,plantandequipment2.
170.
20Redemption/(Investment)infixeddeposits(Net)(0.
53)0.
06InterestIncomereceived7.
185.
51PaymentofDividend(includingDividendDistributionTax)(53.
30)-RepaymentofLongtermBorrowings(82.
32)(64.
02)ProceedsfromLongtermBorrowings17.
0887.
25Proceedsfrom/(repaymentof)short-termborrowings(79.
06)(62.
56)InterestCostpaid(30.
64)(43.
52)6.
7213.
70Cashandcashequivalentsatthebeginningoftheyear19.
956.
25Cashandcashequivalentsattheendoftheyear26.
6719.
95Balanceswithbanksincurrentaccounts26.
0919.
04Cashonhand0.
580.
91/Fortheyearended31.
03.
201931.
03.
2018Fortheyearended4129AnnualReport2018-19th(Allamountsin.
Millionsunlessotherwisestated)Theaccompanyingsignificantaccountingpoliciesandnotesareanintegralpartofthefinancialstatements.
ForForandonbehalfoftheBoardofCharteredAccountantsFirmRegnNo:009303SPartnerPlace:HyderabadDate:11May2019Gattamaneni&CoVimtaLabsLimitedG.
SrinivasaRaoDr.
S.
P.
VasireddiHaritaVasireddiHarrimanVungalTSAjaiSujaniVasireddiAmitPathakNon-ExecutiveChairmanManagingDirectorED-OperationsDirectorMembershipNo.
210535CompanySecretaryChiefFinancialOfficerPlace:HyderabadDate:11May2019Asperourreportofevendate.
SecuritiesPremiumReserveGeneralReserveOpeningBalanceasofApril1,2018773.
7386.
40626.
94(10.
76)1,476.
31ClosingBalanceasofMarch31,2019773.
7386.
40933.
36(15.
57)1,777.
92Add:Profitfortheyear--253.
11-253.
11Less:DividendonEquityShares--44.
22-44.
22Less:TaxonDividend--9.
09-9.
09Add/(Less):Othercomprehensiveincome/(loss)fortheyear---(4.
81)(4.
81)RetainedEarningsTotalOtherComprehensiveIncomeEquitysharesof.
2/-eachissued,subscribedandfullypaid`OpeningBalanceasatApril1,201822.
1144.
22Add/Less:Changesinequitysharecapital--ClosingBalanceasatMarch31,201922.
1144.
22StatementofchangesinEquityfortheyearendedMarch31,2019VimtaLabsLimitedNumberofSharesAmountA)EquitysharecapitalB)OtherEquityParticularsParticulars4229AnnualReport2018-19th(Allamountsin.
Millionsunlessotherwisestated)Theaccompanyingsignificantaccountingpoliciesandnotesareanintegralpartofthefinancialstatements.
ForForandonbehalfoftheBoardofCharteredAccountantsFirmRegnNo:009303SPartnerPlace:HyderabadDate:11May2019Gattamaneni&CoVimtaLabsLimitedG.
SrinivasaRaoDr.
S.
P.
VasireddiHaritaVasireddiHarrimanVungalTSAjaiSujaniVasireddiAmitPathakNon-ExecutiveChairmanManagingDirectorED-OperationsDirectorMembershipNo.
210535CompanySecretaryChiefFinancialOfficerPlace:HyderabadDate:11May2019Asperourreportofevendate.
NotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019VimtaLabsLimited1GeneralInformation2Significantaccountingpolicies2.
1BasisofPreparationofFinancialStatements(a)StatementofCompliancewithIndAS(b)Basisofmeasurement(c)Useofestimates(d)Fairvaluemeasurement2.
2Property,plantandequipmentVimtaLabsLimited(the"Company")isapubliclimitedcompanydomiciledinIndiaandwasincorporatedonNovember16,1990undertheerstwhileprovisionsoftheCompaniesAct,1956.
TheregisteredofficeoftheCompanyissituatedat141/2&142,IDAPhaseII,Cherlapally,Hyderabad–500051.
TheCompanyisaleadingcontractresearchandtestingservicesproviderinIndia.
TheCompany'sequitysharesarelistedatBSELimitedandNationalStockExchangeofIndiaLimited.
ThefinancialstatementshavebeenpreparedinaccordancewithIndianAccountingStandards(IndAS)notifiedunderSection133oftheCompaniesAct,2013(the""Act"")readwiththeCompanies(IndianAccountingStandards)Rules,2015andCompanies(IndianAccountingStandards)AmendmentRules,2016,asamendedfromtimetotimeandotherrelevantprovisionsoftheAct.

Accountingpolicieshavebeenconsistentlyappliedtoalltheyearspresentedexceptwhereanewlyissuedaccountingstandardisinitiallyadoptedorarevisiontoanexistingaccountingstandardrequiresachangeintheaccountingpolicyhithertoinuse.

ThefinancialstatementshavebeenpreparedfortheCompanyasagoingconcernonthebasisofrelevantIndASthatareeffectiveattheCompany'sannualreportingdate.
Thefinancialstatementshavebeenpreparedonhistoricalcostconventionandonaccrualbasis,exceptforthefollowingitemsinthebalancesheeti)Certainfinancialassetsandliabilitiesmeasuredeitheratfairvalueoramortisedcostdependingontheclassification;ii)Definedemployeebenefitliabilitiesarerecognisedatthepresentvalueofdefinedbenefitobligationadjustedforfairvalueofplanassets;Allassetsandliabilitieshavebeenclassifiedascurrentornon-currentaspertheCompany'soperatingcycleandothercriteriasetoutintheScheduleIIItotheCompaniesAct,2013.
Basedonthenatureofservicesandthetimebetweentherenderingofserviceandtheirrealizationincashandcashequivalents,theCompanyhasascertaineditsoperatingcycleastwelvemonthsforthepurposeofcurrentandnon-currentclassificationofassetsandliabilities.
ThepreparationoffinancialstatementsinconformitywithIndASrequiresthemanagementofthecompanytomakejudgments,estimatesandassumptionstobemadethataffectthereportedamountsofassetsandliabilitiesonthedateoffinancialstatements,disclosureofcontingentliabilitiesasatthedateofthefinancialstatements,andthereportedamountsofincomeandexpensesduringthereportedperiod.
Estimatesandunderlyingassumptionsarereviewedonanongoingbasis.
Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimatesarerevised.
TheCompany'saccountingpoliciesanddisclosuresrequirethemeasurementoffairvalues,forcertainfinancialandnon-financialassetsandliabilitiesbasedontheirclassification.
Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.
Inestimatingthefairvalueofanassetorliability,thecompanytakesintoaccountthecharacteristicsoftheassetorliabilityifmarketparticipantswouldtakethosecharacteristicsintoaccountwhenpricingtheassetorliabilityatthemeasurementdate.

Fairvaluesarecategorizedintodifferentlevelsinafairvaluehierarchybasedontheinputsusedinthevaluationtechniquesasfollows:Level1:quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities.
Level2:inputsotherthanquotedpricesincludedinLevel1thatareobservablefortheassetorliability,eitherdirectly(i.
e.
asprices)orindirectly(i.
e.
derivedfromprices).
Level3:inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(unobservableinputs).
Whenmeasuringthefairvalueofanassetoraliability,theCompanyusesobservablemarketdataasfaraspossible.
Iftheinputsusedtomeasurethefairvalueofanassetoraliabilityfallintodifferentlevelsofthefairvaluehierarchy,thenthefairvaluemeasurementiscategorizedinitsentiretyinthesamelevelofthefairvaluehierarchyasthelowestlevelinputthatissignificanttotheentiremeasurement.
TheCompanyrecognisestransfersbetweenlevelsofthefairvaluehierarchyattheendofthereportingperiodduringwhichthechangehasoccurred.
Forthepurposeoffairvaluedisclosures,theCompanyhasdeterminedclassesofassetsandliabilitiesonthebasisofthenature,characteristicsandrisksoftheassetorliabilityandthelevelofthefairvaluehierarchyasexplainedabove.
Property,plantandequipmentaremeasuredatcostlessaccumulateddepreciationandimpairmentlosses,ifany.
Costcomprisesofpurchaseprice,freight,non-refundabletaxesandduties,specifiedforeignexchangegainsorlossesandanyothercostattributabletobringtheassettoitsworkingconditionforitsintendeduse.
Subsequentcostsareincludedintheasset'scarryingamountorrecognizedasaseparateasset,asappropriate,onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheCompanyandthecostoftheitemcanbemeasuredreliably.
AllotherrepairsandmaintenancearechargedtoStatementofProfitandLossduringtheyearinwhichtheyareincurred.
4329AnnualReport2018-19thPlantandEquipment6.
67Years10-15yearsComputerserversandnetworks3Years6yearsParticularsUsefulLifeasperManagementEstimateUsefulLifeasperScheduleIIoftheActVimtaLabsLimitedAdvancespaidtowardstheacquisitionofproperty,plantandequipmentoutstandingateachbalancesheetdateisclassifiedascapitaladvancesandthecostofassetsnotreadytousebeforesuchdatearedisclosedunder'Capitalwork-in-progress'andhencenotdepreciated.
Depreciableamountforassetsisthecostofanassetorotheramountsubstitutedforcost,lessitsestimatedresidualvalue.
Depreciationonproperty,plantandequipmentisprovidedonstraight-linemethodovertheirestimatedusefulliveswhicharethesameasprescribedinScheduleIItotheCompaniesActexceptforthefollowing:Depreciationmethods,estimatedusefullivesBasedonthetechnicalexpertsassessmentofusefullife,certainitemsofpropertyplantandequipmentarebeingdepreciatedoverusefullivesdifferentfromtheprescribedusefullivesunderScheduleIItotheCompaniesAct,2013.
Themanagementhasassessedtheusefullifeofsuchassetsonthebasisoftechnicalexpertadviceandpastexperienceintheindustryasitbelievesthatsuchestimatedusefullivesarerealisticandreflectfairapproximationoftheperiodoverwhichtheassetsarelikelytobeused.

Depreciationonadditiontopropertyplantandequipmentisprovidedonpro-ratabasisfromthedateofacquisition.
Depreciationonsale/deductionfrompropertyplantandequipmentisprovideduptothedateofsale/deduction,asthecasemaybe.
GainsandlossesondisposalsaredeterminedbycomparingproceedswithcarryingamountandareincludedinStatementofProfitandLoss.
Non-currentassetsheldforsalearemeasuredattheloweroftheircarryingvalueandfairvalueoftheassetslesscoststosale.
Assetsandliabilitiesclassifiedasheldforsalearepresentedseparatelyinthebalancesheet.
Property,plantandequipmentonceclassifiedasheldforsalearenotdepreciated/amortised.
Intangibleassetsarestatedatcostlessaccumulatedamortizationandimpairment.
Intangibleassetsareamortizedovertheirrespectiveindividualestimatedusefullivesonastraight-linebasis,fromthedatethattheyareavailableforuse.
Theestimatedusefullifeofanidentifiableintangibleassetisbasedonanumberoffactorsincludingtheeffectsofobsolescence,othereconomicfactorsetc.
Amortizationmethodsandusefullivesarereviewedperiodicallyincludingateachfinancialyearend.
Ateachreportingdate,theCompanyassesseswhetherthereisanyindicationthatanassetmaybeimpaired,basedoninternalorexternalfactors.
Ifanysuchindicationexists,theCompanyestimatestherecoverableamountoftheassetorthecashgeneratingunit.
Ifsuchrecoverableamountoftheassetorcashgeneratingunittowhichtheassetbelongsislessthanitscarryingamount,thecarryingamountisreducedtoitsrecoverableamount.
ThereductionistreatedasanimpairmentlossandisrecognisedintheStatementofProfitandLoss.
If,atthereportingdatethereisanindicationthatapreviouslyassessedimpairmentlossnolongerexists,therecoverableamountisreassessedandtheassetisreflectedattherecoverableamount.
ImpairmentlossespreviouslyrecognisedareaccordinglyreversedintheStatementofProfitandLoss.
Afinancialinstrumentisanycontractthatgivesrisetoafinancialassetofoneentityandafinancialliabilityorequityinstrumentofanotherentity.
Allfinancialassetsarerecognisedinbalancesheetwhen,andonlywhen,theentitybecomespartytothecontractualprovisionsoftheinstrumentandinitiallymeasuredatfairvalueplus,inthecaseoffinancialassetsnotrecordedatfairvaluethroughprofitorloss,transactioncoststhatareattributabletotheacquisitionofthefinancialassetorliabilityareaddedtoordeductedfromthefairvalue.

Purchasesorsalesoffinancialassetsthatrequiredeliveryofassetswithinatimeframeestablishedbyregulationorconventioninthemarketplace(regularwaytrades)arerecognisedonthetradedate,i.
e.
,thedatethattheCompanycommitstopurchaseorselltheasset.
Forpurposesofsubsequentmeasurement,financialassetsareclassifiedintofourcategories:DebtinstrumentsatamortisedcostDebtinstrumentsatfairvaluethroughothercomprehensiveincome(FVTOCI)Debtinstrumentsandequityinstrumentsatfairvaluethroughprofitorloss(FVTPL)andEquityinstrumentsmeasuredatFVTOCIA'debtinstrument'ismeasuredattheamortisedcostifboththefollowingconditionsaremet:Theassetisheldwithinabusinessmodelwhoseobjectiveistoholdassetsforcollectingcontractualcashflows,andContractualtermsoftheassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterest(SPPI)ontheprincipalamountoutstanding.

Assetsheldforsale2.
3OtherIntangibleAssets2.
4Impairmentofnon-financialassets2.
5Financialinstruments(a)FinancialassetsInitialrecognitionandmeasurementSubsequentmeasurementDebtinstrumentsatamortisedcost4429AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019Afterinitialmeasurement,financialassetsaresubsequentlymeasuredatamortisedcostusingtheEffectiveInterestRate(EIR)method.
AmortisedcostiscalculatedbytakingintoaccountanydiscountorpremiumonacquisitionandfeesorcoststhatareanintegralpartoftheEIR.
TheEIRamortisationisincludedinfinanceincomeintheprofitorloss.
ThelossesarisingfromimpairmentarerecognisedintheStatementofProfitandLoss.
ThiscategorycoversTradeReceivables,Loans,Cash&BankBalancesandOtherReceivables.
A'debtinstrument'isclassifiedasattheFVTOCIifbothofthefollowingcriteriaaremet:Theobjectiveofthebusinessmodelisachievedbothbycollectingcontractualcashflowsandsellingthefinancialassets,andContractualtermsoftheassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterest(SPPI)ontheprincipalamountoutstanding.
DebtinstrumentsincludedwithintheFVTOCIcategoryaremeasuredinitiallyaswellasateachreportingdateatfairvalue.
Fairvaluemovementsarerecognisedintheothercomprehensiveincome(OCI).
Onderecognitionoftheasset,cumulativegainorlosspreviouslyrecognisedinOCIisreclassifiedtotheStatementofProfitandLoss.
InterestearnedwhileholdingFVTOCIdebtinstrumentisreportedasinterestincomeusingtheEIRmethod.
FVTPLisaresidualcategoryfordebtinstruments.
Anydebtinstrument,whichdoesnotmeetthecriteriaforcategorizationasatamortizedcostorasFVTOCI,isclassifiedasatFVTPL.
DebtandEquityinstrumentsincludedwithintheFVTPLcategoryaremeasuredatfairvaluewithallchangesrecognizedintheStatementofProfitandLoss.
EquityinstrumentsincludedwithintheFVTPLcategoryaremeasuredatfairvaluewithallchangesrecognizedintheStatementofProfitandLoss.
AllequityinvestmentsinthescopeofIndAS109aremeasuredatfairvalue.
EquityinstrumentswhichareheldfortradingareclassifiedasatFVTPL.
Forallotherequityinstruments,theCompanydecidestoclassifythesameeitherasatFVTOCIorFVTPL.
TheCompanymakessuchelectiononaninstrument-by-instrumentbasis.
Theclassificationismadeoninitialrecognitionandisirrevocable.

IftheCompanydecidestoclassifyanequityinstrumentasatFVTOCI,thenallfairvaluechangesontheinstrument,excludingdividends,arerecognizedintheOCI.
ThereisnorecyclingoftheamountsfromOCItoStatementofProfitandLoss,evenonsaleofinvestment.
However,theCompanymaytransferthecumulativegainorlosswithinequity.
TheCompanyde-recognisesafinancialassetonlywhenthecontractualrightstothecashflowsfromtheassetexpiresorittransfersthefinancialassetandsubstantiallyalltherisksandrewardsofownershipoftheasset.
WhentheCompanyhastransferreditsrightstoreceivecashflowsfromanassetorhasenteredintoapass-througharrangement,itevaluatesifandtowhatextentithasretainedtherisksandrewardsofownership.
Whenithasneithertransferrednorretainedsubstantiallyalloftherisksandrewardsoftheasset,nortransferredcontroloftheasset,theCompanycontinuestorecognisethetransferredassettotheextentoftheCompany'scontinuinginvolvement.
Inthatcase,theCompanyalsorecognisesanassociatedliability.
ThetransferredassetandtheassociatedliabilityaremeasuredonabasisthatreflectstherightsandobligationsthattheCompanyhasretained.
ContinuinginvolvementthattakestheformofaguaranteeoverthetransferredassetismeasuredattheloweroftheoriginalcarryingamountoftheassetandthemaximumamountofconsiderationthattheCompanycouldberequiredtorepay.
InaccordancewithIndAS109,theCompanyappliesexpectedcreditloss(ECL)modelformeasurementandrecognitionofimpairmentlossforthefollowingfinancialassetsandcreditriskexposures:a)Financialassetsthataredebtinstrumentsandaremeasuredatamortisedcoste.
g.
,loans,depositsandbankbalanceb)TradeReceivablesthatresultfromtransactionsthatarewithinthescopeofIndAS115.
TheCompanyfollows'simplifiedapproach'forrecognitionofimpairmentlossallowanceontradereceivables.
TheapplicationofsimplifiedapproachdoesnotrequiretheCompanytotrackchangesincreditrisk.
ItrecognisesimpairmentlossallowancebasedonlifetimeECLsateachreportingdate,rightfromitsinitialrecognition.
Asapracticalexpedient,thecompanyusesaprovisionmatrixtodetermineimpairmentlossallowanceonportfolioofitsreceivables.
Theprovisionmatrixisbasedonitshistoricallyobserveddefaultratesovertheexpectedlifeofthetradereceivablesandisadjustedforforwardlookingestimates.
Ateveryreportingdate,thehistoricalobserveddefaultratesareupdatedandchangesintheforwardlookingestimatesareanalysed.
Forrecognitionofimpairmentlossonotherfinancialassetsandriskexposure,theCompanydetermineswhethertherehasbeenasignificantincreaseinthecreditrisksinceinitialrecognition.
Ifcreditriskhasnotincreasedsignificantly,12-monthECLisusedtoprovideforimpairmentloss.
However,ifcreditriskhasincreasedsignificantly,lifetimeECLisused.
If,inasubsequentperiod,creditqualityoftheinstrumentimprovessuchthatthereisnolongerasignificantincreaseincreditrisksinceinitialrecognition,thentheentityrevertstorecognisingimpairmentlossallowancebasedon12-monthECL.
LifetimeECLaretheexpectedcreditlossesresultingfromallpossibledefaulteventsovertheexpectedlifeofafinancialinstrument.
The12-monthECLisaportionofthelifetimeECLwhichresultsfromdefaulteventsthatarepossiblewithin12monthsafterthereportingdate.
ECListhedifferencebetweenallcontractualcashflowsthatareduetotheCompanyinaccordancewiththecontractandallthecashflowsthattheCompanyexpectstoreceive.
Debtinstrumentsatfairvaluethroughothercomprehensiveincome(FVTOCI)Debtinstrumentsandequityinstrumentsatfairvaluethroughprofitorloss(FVTPL)EquityinstrumentsmeasuredatFVTOCIDe-recognitionImpairmentoffinancialassetsVimtaLabsLimited4529AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019VimtaLabsLimitedWhenestimatingthecashflows,theCompanyisrequiredtoconsider:Allcontractualtermsofthefinancialassets(includingprepaymentandextension)overtheexpectedlifeoftheassets.

Cashflowsfromthesaleofcollateralheldorothercreditenhancementsthatareintegraltothecontractualterms.
"Financialliabilitiesareclassified,atinitialrecognition,asfinancialliabilitiesatfairvaluethroughprofitorloss.

Allfinancialliabilitiesarerecognizedinitiallyatfairvalueand,inthecaseofloansandborrowingsandpayables,netofdirectlyattributabletransactioncosts.
TheCompany'sfinancialliabilitiesincludetradeandotherpayables,loansandborrowings.
Themeasurementoffinancialliabilitiesdependsontheirclassification,asdescribedbelow:Financialliabilitiesatfairvaluethroughprofitorlossincludefinancialliabilitiesheldfortradingandfinancialliabilitiesdesignateduponinitialrecognitionasatfairvaluethroughprofitorloss.
Financialliabilitiesareclassifiedasheldfortradingiftheyareincurredforthepurposeofrepurchasinginthenearterm.
Gainsorlossesonliabilitiesheldfortradingarerecognisedintheprofitorloss.
Afterinitialrecognition,interest-bearingloansandborrowingsaresubsequentlymeasuredatamortisedcostusingtheEIRmethod.
GainsandlossesarerecognisedinprofitorlosswhentheliabilitiesarederecognisedaswellasthroughtheEIRamortisationprocess.
AmortisedcostiscalculatedbytakingintoaccountanydiscountorpremiumonacquisitionandfeesorcoststhatareanintegralpartoftheEIR.
TheEIRamortisationisincludedasfinancecostsintheStatementofProfitandLoss.
Thiscategorygenerallyappliestointerest-bearingloansandborrowings.
TheseamountsrepresentliabilitiesforgoodsandservicesprovidedtotheCompanypriortotheendoffinancialyearwhichareunpaid.
Theamountsareunsecuredandareusuallypaidasperagreedterms.
Tradeandotherpayablesarepresentedascurrentliabilitiesunlesspaymentisnotduewithin12monthsafterthereportingperiod.
Theyarerecognisedinitiallyattheirfairvalueandsubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.
Afinancialliabilityisde-recognisedwhentheobligationundertheliabilityisdischargedorcancelledorexpires.
Whenanexistingfinancialliabilityisreplacedbyanotherfromthesamelenderonsubstantiallydifferentterms,orthetermsofanexistingliabilityaresubstantiallymodified,suchanexchangeormodificationistreatedasthederecognitionoftheoriginalliabilityandtherecognitionofanewliability.
ThedifferenceintherespectivecarryingamountsisrecognisedintheStatementofProfitandLoss.
Financialassetsandfinancialliabilitiesareoffsetandthenetamountisreportedinthebalancesheetifthereisacurrentlyenforceablelegalrighttooffsettherecognisedamountsandthereisanintentiontosettleonanetbasis,torealisetheassetsandsettletheliabilitiessimultaneously.
Taxexpensefortheyear,comprisingcurrenttaxanddeferredtax,areincludedinthedeterminationofthenetprofitorlossfortheyear.

Currenttaxassetsandliabilitiesaremeasuredattheamountexpectedtoberecoveredorpaidtothetaxationauthorities.
Thetaxratesandtaxlawsusedtocomputetheamountarethosethatareenactedorsubstantivelyenacted,attheyearenddate.

TheCompanyrecognisesinterestleviedandpenaltiesrelatedtoincometaxassessmentsininterestexpense.
DeferredtaxisprovidedusingtheBalanceSheetmethodontemporarydifferencesbetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsforfinancialreportingpurposesatthereportingdate.
Deferredtaxliabilitiesarerecognisedforalltaxabletemporarydifferences.
Deferredtaxassetsarerecognisedforalldeductibletemporarydifferences,thecarryforwardofunusedtaxcreditsandanyunusedtaxlosses.
Deferredtaxassetsarerecognisedtotheextentthatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,andthecarryforwardofunusedtaxcreditsandunusedtaxlossescanbeutilized.
Thecarryingamountofdeferredtaxassetsisreviewedateachreportingdateandreducedtotheextentthatitisnolongerprobablethatsufficientfuturetaxableprofitwillbeavailabletoallowallorpartofthedeferredtaxassettobeutilized.
Unrecognizeddeferredtaxassetsarere-assessedateachreportingdateandarerecognisedtotheextentthatithasbecomeprobablethatfuturetaxableprofitswillallowthedeferredtaxassettoberecovered.
Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplyintheyearwhentheassetisrealizedortheliabilityissettled,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedatthereportingdate.
Deferredtaxrelatingtoitemsrecognisedoutsideprofitorlossisrecognisedoutsideprofitorloss(eitherinothercomprehensiveincomeorinequity).
Deferredtaxassetsanddeferredtaxliabilitiesareoffsetifalegallyenforceablerightexiststosetoffcurrenttaxassetsagainstcurrenttaxliabilitiesandthedeferredtaxesrelatetothesametaxableentityandthesametaxationauthority.
MinimumAlternateTax(MAT)creditisrecognizedasanassetonlywhenandtotheextentthereisconvincingevidencethattheCompanywillpaynormalincometaxduringthespecifiedperiod.
TheCompanyreviewssuchassetsateachreportingdateandwrites(b)FinancialLiabilitiesInitialrecognitionandmeasurementSubsequentmeasurementLoansandborrowingsTradeandotherpayablesDe-recognitionOffsettingoffinancialinstruments2.
6Taxes(a)Currenttax(b)Deferredtax(c)MinimumAlternateTax(MAT)4629AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019VimtaLabsLimiteddownthecarryingamountofMATCreditEntitlementtotheextentthereisnolongerconvincingevidencetotheeffectthatCompanywillpaynormalincometaxduringthespecifiedperiod.
MATpaidinayearischargedtothestatementofProfitandLossascurrenttax.
DividenddistributiontaxarisingoutofpaymentofdividendstoshareholdersundertheIndianIncometaxregulationsisnotconsideredastaxexpensefortheCompanyandallsuchtaxesarerecognisedinthestatementofchangesinequityaspartoftheassociateddividendpayment.
Inventoriesconsistofchemicalsandconsumables,storesandspares,aremeasuredatthelowerofcostandnetrealisablevalue.
Costincludespurchaseprice,dutiesandtaxes(otherthanthosesubsequentlyrecoverablebytheCompanyfromtheconcernedrevenueauthorities),freightinwardsandotherexpenditureincurredinbringingsuchinventoriestotheirpresentlocationandcondition.
Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusiness,lesstheestimatedcostsofcompletionandsellingexpenses.
Indeterminingthecost,FirstInFirstOut(FIFO)methodisused.
Thecarryingcostofinventoriesareappropriatelywrittendownwhenthereisadeclineinreplacementcostofsuchmaterials.
Workinprogressarevaluedatthelowerofcostandnetrealisablevalue.
Costofworkinprogressisdeterminedonthebasisofcostandonthecostwhichcomprisesdirectmaterialconsumedandhumanresourcecost.
Provisionsarerecognizedwhenthereisapresentobligationasaresultofapastevent,itisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationandthereisareliableestimateoftheamountoftheobligation.
Provisionsaremeasuredatthebestestimateoftheexpenditurerequiredtosettlethepresentobligationattheyearend.

Iftheeffectofthetimevalueofmoneyismaterial,provisionsarediscountedusingacurrentpre-taxratethatreflects,whenappropriate,therisksspecifictotheliability.
Whendiscountingisused,theincreaseintheprovisionduetothepassageoftimeisrecognizedasafinancecost.
Contingentliabilitiesaredisclosedwhenthereisapossibleobligationarisingfrompastevents,theexistenceofwhichwillbeconfirmedonlybytheoccurrenceornonoccurrenceofoneormoreuncertainfutureeventsnotwhollywithinthecontroloftheCompanyorapresentobligationthatarisesfrompasteventswhereitiseithernotprobablethatanoutflowofresourceswillberequiredtosettleorareliableestimateoftheamountcannotbemade.
Contingentliabilitiesandassetsarenotrecognisedinfinancialstatements.
Adisclosureofthecontingentliabilityismadewhenthereisapossibleorapresentobligationthatmay,butprobablywillnot,requireanoutflowofresources.
TheCompanyprimarilyearnsrevenuefromContractresearchandtestingservices.
RevenueisrecognisedupontransferofcontrolofpromisedservicestocustomersinanamountthatreflectstheconsiderationtheCompanyexpecttoreceiveinexchangeforthoseservices.
Revenuefromprovidingservicesisrecognisedintheaccountingperiodinwhichsuchservicesarerendered.
Atcontractinception,theCompanyassessesitspromisetotransferservicestoacustomertoidentifyseparateperformanceobligations.
TheCompanyappliesjudgmenttodeterminewhethereachservicepromisedtoacustomeriscapableofbeingdistinct,andaredistinctinthecontextofthecontract,ifnot,thepromisedservicesarecombinedandaccountedasasingleperformanceobligation.
Thecompanyallocatesthearrangementconsiderationtoseparatelyidentifiableperformanceobligationbasedontheirrelativestand-alonesellingpriceorresidualmethod.
Incaseoffixed-pricecontracts,thecustomerpaysthefixedamountbasedonapaymentschedule.
Iftheservicesrenderedbythegroupexceedthepayment,acontractassetisrecognised.
Ifthepaymentsexceedtheservicesrendered,acontractliabilityisrecognised.
Revenuesinexcess/shortofinvoicingareclassifiedasassets/liabilities,asthecasemaybe.
Exportincentivesarerecognisedwhentherighttoreceivethecreditisestablishedinrespectoftheexportsmadeandwherethereisnosignificantuncertaintyregardingtheultimatecollectionoftherelevantexportproceedsandutilizationofexportincentiveswithinitsvalidityperiod.
IInterestincomeisrecognisedwhenitisprobablethattheeconomicbenefitswillflowtotheCompanyandtheamountofincomecanbemeasuredreliably.
Interestincomeisaccruedonatimebasis,byreferencetotheprincipleoutstandingandattheeffectiveinterestrateapplicable,whichistheratethatexactlydiscountsestimatedfuturecashreceiptsthroughtheexpectedlifeofthefinancialassettothatasset'sgrosscarryingamountoninitialrecognition.
InterestincomeisincludedinotherincomeintheStatementofProfitandLoss.
GrantsfromthegovernmentarerecognizedattheirfairvaluewherethereisareasonableassurancethatthegrantwillbereceivedandtheCompanywillcomplywithallattachedconditions.
Governmentgrantsrelatingtoincomearedeferredandrecognizedintheprofitorlossovertheperiodnecessarytomatchthemwiththecoststhattheyareintendedtocompensateandpresentedwithinotherincome.
(d)Dividenddistributiontax(DDT)2.
7Inventories2.
8Provisionsandcontingentliabilities2.
9RevenueRecognitionRenderingofservicesExportincentivesnterest2.
10Governmentgrants4729AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019VimtaLabsLimitedGovernmentgrantsrelatingtothepurchaseofproperty,plantandequipmentareincludedinnon-currentliabilitiesasdeferredincomeandarecreditedtotheprofitorlossonastraight-linebasisovertheexpectedlivesoftherelatedassetsandpresentedwithinotherincome.
(a)FunctionalandpresentationcurrencyItemsincludedinthefinancialstatementsaremeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates('thefunctionalcurrency').
ThefinancialstatementsarepresentedinIndianrupee(INR),whichistheCompany'sfunctionalandpresentationcurrency.
Oninitialrecognition,allforeigncurrencytransactionsarerecordedbyapplyingtotheforeigncurrencyamounttheexchangeratebetweenthefunctionalcurrencyandtheforeigncurrencyatthedateofthetransaction.
Gains/LossesarisingoutoffluctuationinforeignexchangeratebetweenthetransactiondateandsettlementdatearerecognisedintheStatementofProfitandLoss.
AllmonetaryassetsandliabilitiesinforeigncurrenciesarerestatedattheyearendattheexchangerateprevailingattheyearendandtheexchangedifferencesarerecognisedintheStatementofProfitandLoss.
Non-monetaryitemsthataremeasuredintermsofhistoricalcostinaforeigncurrencyaretranslatedusingtheexchangeratesatthedatesoftheinitialtransactions.

Liabilitiesforwagesandsalaries,includingnon-monetarybenefitsthatareexpectedtobesettledwhollywithin12monthsaftertheendoftheyearinwhichtheemployeesrendertherelatedservicearerecognizedinrespectofemployees'servicesuptotheendoftheyearandaremeasuredattheamountsexpectedtobepaidwhentheliabilitiesaresettled.
Theliabilitiesarepresentedascurrentemployeebenefitobligationsinthebalancesheet.
ProvidentFund:Contributiontowardsprovidentfundismadetotheregulatoryauthorities,wheretheCompanyhasnofurtherobligations.
SuchbenefitsareclassifiedasDefinedContributionSchemesastheCompanydoesnotcarryanyfurtherobligations,apartfromthecontributionsmadeonamonthlybasiswhicharechargedtotheStatementofProfitandLoss.
Employee'sStateInsuranceScheme:Contributiontowardsemployees'stateinsuranceschemeismadetotheregulatoryauthorities,wheretheCompanyhasnofurtherobligations.
SuchbenefitsareclassifiedasDefinedContributionSchemesastheCompanydoesnotcarryanyfurtherobligations,apartfromthecontributionsmadeonamonthlybasiswhicharechargedtotheStatementofProfitandLoss.
TheCompanyhasgratuityasdefinedbenefitplanwheretheamountthatanemployeewillreceiveonretirementisdefinedbyreferencetotheemployee'slengthofserviceandfinalsalary.
TheCompanyhassubscribedtogratuityschemeofLifeInsuranceCorporationofIndia('LIC')towhichtheCompanymakesperiodicFunding.
Underthesaidpolicy,theeligibleemployeesareentitledforgratuityupontheirresignation,retirement,incapitation,terminationorintheeventofdeathinlumpsumafterdeductionofnecessarytaxes,asapplicable.
Theliabilityinrespectofdefinedbenefitplansiscalculatedusingtheprojectedunitcreditmethodconsistentwiththeadviceofqualifiedactuaries.
Thepresentvalueofthedefinedbenefitobligationisdeterminedbydiscountingtheestimatedfuturecashoutflowsusinginterestratesofhighqualitycorporatebondsthataredenominatedinthecurrencyinwhichthebenefitswillbepaid,andthathavetermsofmaturityapproximatingtothetermsoftherelateddefinedbenefitobligation.

Thecurrentservicecostofthedefinedbenefitplan,recognisedinthestatementofprofitandlossunderemployeebenefitexpense,reflectstheincreaseinthedefinedbenefitobligationresultingfromemployeeserviceinthecurrentyear,benefitchanges,curtailmentsandsettlements.
PastServicecostsarerecognisedinstatementofprofitandlossintheperiodofplanamendment.
Thenetinterestcostiscalculatedbyapplyingthediscountratetothenetbalanceofthedefinedbenefitobligationandfairvalueofplanassets.
Thecostisincludedintheemployeebenefitexpensesinthestatementofprofitandloss.
Actuarialgainsandlossesarisingfromexperienceadjustmentsandchangesinactuarialassumptionsarechargedorcreditedtoothercomprehensiveincomeintheperiodinwhichtheyarise.
CompensatedAbsences(LeaveEncashment):Thecompany'scurrentpolicypermitsemployeestoaccumulateandcarryforwardaportionoftheirunutilisedcompensatedabsencesandutilise/encashtheminfutureperiodsinaccordancewiththetermsofsuchpolicies.
ThecompanymeasurestheexpectedcostofaccumulatedabsencesastheadditionalamountthatthecompanyincursasaresultoftheunusedentitlementsthathasaccumulatedatthebalancesheetdateandchargetoStatementofProfitandloss.
TheCompany'sliabilityisactuariallydetermined(usingtheProjectedUnitCreditmethod)attheendofeachyear.
Suchmeasurementisbasedonactuarialvaluationatthebalancesheetdatecarriedoutbyaqualifiedactuary.
Actuariallosses/gainsarerecognizedinthestatementofprofitandlossintheyearinwhichtheyarise.
OpearingLease:LeasesinwhichasignificantportionoftherisksandrewardsofownershiparenottransferredtotheCompanyasalesseeareclassifiedasoperatingleases.
Paymentsmadeunderoperatingleases(netofanyincentivesreceivedfromthelesser)arechargedtoStatementofProfitandLossonastraight-linebasisovertheperiodoftheleaseunlessthepaymentsarestructuredtoincreaseinlinewithexpectedgeneralinflationtocompensateforthelessor'sexpectedinflationarycostincreases.
Alsoinitialdirectcostincurredinoperatingleasesuchascommissions,legalfeesandinternalcostsisrecognisedimmediatelyintheStatementofProfitandLoss.
FinanceLease:Leasesofproperty,plantandequipmentwheretheCompany,aslessee,hassubstantiallyalltherisksandrewardsofownershipareclassifiedasfinanceleases.
Financeleasesarecapitalizedatthelease'sinceptionatthefairvalueoftheleased2.
11ForeignCurrencyTransactions(b)Transactionsandbalances2.
12RetirementandotherEmployeeBenefits(a)Short-termobligations(b)Otherlong-termemployeebenefitobligations(i)Definedcontributionplan(ii)Definedbenefitplans2.
13Leases(asalessee)4829AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019VimtaLabsLimitedpropertyor,iflower,thepresentvalueoftheminimumleasepayments.
Thecorrespondingrentalobligations,netoffinancecharges,areincludedinborrowingsorotherfinancialliabilitiesasappropriate.
Eachleasepaymentisallocatedbetweentheliabilityandfinancecost.
ThefinancecostischargedtotheStatementofProfitandLossovertheleaseperiodsoastoproduceaconstantperiodicrateofinterestontheremainingbalanceoftheliabilityforeachperiod.
Borrowingcostsconsistofinterest,ancillarycostsandothercostsinconnectionwiththeborrowingoffundsandexchangedifferencesarisingfromforeigncurrencyborrowingstotheextenttheyareregardedasanadjustmenttointerestcosts.
Borrowingcostsattributabletoacquisitionand/orconstructionofqualifyingassetsarecapitalisedasapartofthecostofsuchasset,uptothedatesuchassetsarereadyfortheirintendeduse.
OtherborrowingcostsarechargedtotheStatementofProfitandLoss.

Basicearningspershareiscalculatedbydividingthenetprofitorlossfortheyearattributabletoequityshareholdersbytheweightedaveragenumberofequitysharesoutstandingduringtheyear.
EarningsconsideredinascertainingtheCompany'searningspershareisthenetprofitorlossfortheyearafterdeductingpreferencedividendsandanyattributabletaxtheretofortheyear.
Theweightedaveragenumberofequitysharesoutstandingduringtheyearandforalltheyearspresentedisadjustedforevents,suchasbonusshares,otherthantheconversionofpotentialequityshares,thathavechangedthenumberofequitysharesoutstanding,withoutacorrespondingchangeinresources.
Forthepurposeofcalculatingdilutedearningspershare,thenetprofitorlossfortheyearattributabletoequityshareholdersandtheweightedaveragenumberofsharesoutstandingduringtheyearisadjustedfortheeffectsofalldilutivepotentialequityshares.

TheCompanyrecognisesaliabilitytomakecashornon-cashdistributionstoequityholderswhenthedistributionisauthorisedandthedistributionisnolongeratthediscretionoftheCompany.
AsperthecorporatelawsinIndia,adistributionisauthorisedwhenitisapprovedbytheshareholders.
Acorrespondingamountisrecogniseddirectlyinequity.
Cashflowsarereportedusingtheindirectmethod,wherebyprofitbeforetaxisadjustedfortheeffectsoftransactionsofanon-cashnature,anydeferralsoraccrualsofpastorfutureoperatingcashreceiptsorpaymentanditemsofincomeorexpensesassociatedwithinvestingorfinancingcashflows.
Thecashflowsfromoperating,investingandfinancingactivitiesoftheCompanyaresegregated.
ThemanagementhasassessedtheidentificationofreportablesegmentsinaccordancewiththerequirementsofIndAS108'OperatingSegment'andbelievesthattheCompanyhasonlyonereportablesegmentnamely"ContractResearchandTestingServices.
Cashandcashequivalentinthebalancesheetcomprisecashatbanks,cashonhandandshort-termdepositswithanoriginalmaturityofthreemonthsorless,whicharesubjecttoaninsignificantriskofchangesinvalue.
Thepreparationoffinancialstatementsrequiresmanagementtomakejudgments,estimatesandassumptionsthataffectthereportedamountsofrevenues,expenses,assetsandliabilities,andtheaccompanyingdisclosures,andthedisclosureofcontingentliabilities.
Uncertaintyabouttheseassumptionsandestimatescouldresultinoutcomesthatrequireamaterialadjustmenttothecarryingamountofassetsorliabilitiesaffectedinfutureyears.
Thekeyassumptionsconcerningthefutureandotherkeysourcesofestimationuncertaintyattheyearenddate,thathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyear,aredescribedbelow.
TheCompanybasedassumptionsandestimatesonparametersavailablewhenthefinancialstatementswereprepared.
Existingcircumstancesandassumptionsaboutfuturedevelopments,however,maychangeduetomarketchangesorcircumstancesarisingthatarebeyondthecontroloftheCompany.
Suchchangesarereflectedintheassumptionswhentheyoccur.
TheCompanyhasevaluatedeachleaseagreementforitsclassificationbetweenfinanceleaseandoperatinglease.
TheCompanyhasreacheditsdecisionsonthebasisoftheprincipleslaiddowninIndAS17"Leases"forthesaidclassification.
TheassessmentoftheprobabilityoffuturetaxableprofitinwhichdeferredtaxassetscanbeutilisedisbasedontheCompany'slatestapprovedforecast,whichisadjustedforsignificantnon-taxableprofitandexpensesandspecificlimitstotheuseofanyunusedtaxlossorcredit.
ThetaxrulesinthejurisdictioninwhichtheCompanyoperatesarealsocarefullytakenintoconsideration.
Ifapositiveforecastoftaxableprofitindicatestheprobableuseofadeferredtaxasset,especiallywhenitcanbeutilisedwithoutatimelimit,thatdeferredtaxassetisusuallyrecognisedinfull.
Thecostofthedefinedbenefitplanssuchasgratuityandleaveencashmentaredeterminedusingactuarialvaluations.
Anactuarialvaluationinvolvesmakingvariousassumptionsthatmaydifferfromactualdevelopmentsinthefutureduetochangingmarketandeconomicconditions,regulatoryevents,judicialrulings,higherorlowerwithdrawalrates,orlongerorshorterparticipantlifespans.
Theassumptionsincludedeterminationofthediscountrate,salarygrowthrate,mortalityrate,retirementageandattritionrate.
Duetothecomplexitiesinvolvedinthevaluationanditslong-termnature,adefinedbenefitobligationishighlysensitivetochangesintheseassumptions.
Allassumptionsarereviewedateachyearend.
Managementusesvaluationtechniquesinmeasuringthefairvalueoffinancialinstrumentswhereactivemarketquotesarenotavailable.
Inapplyingthevaluationtechniques,managementmakesmaximumuseofmarketinputsandusesestimatesand2.
14BorrowingCosts2.
15EarningsPerShare2.
16Cashdividendandnon-cashdistributiontoequityshareholders2.
17CashFlows2.
18SegmentReporting2.
19Cashandcashequivalents3.
Significantaccountingjudgments,estimatesandassumptions3.
1Estimatesandassumptions(a)Leases(b)DeferredTaxes(c)Definedbenefitplans(gratuitybenefitsandleaveencashment)(d)Fairvalueoffinancialinstruments-4929AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019VimtaLabsLimitedassumptionsthatare,asfaraspossible,consistentwithobservabledatathatmarketparticipantswoulduseinpricingtheinstrument.
Whereapplicabledataisnotobservable,managementusesitsbestestimateabouttheassumptionsthatmarketparticipantswouldmake.
Theseestimatesmayvaryfromtheactualpricesthatwouldbeachievedinanarm'slengthtransactionatthereportingdate.
Animpairmentlossisrecognisedfortheamountbywhichanasset'sorcash-generatingunit'scarryingamountexceedsitsrecoverableamounttodeterminetherecoverableamount,managementestimatesexpectedfuturecashflowsfromeachassetorcashgeneratingunitanddeterminesasuitableinterestrateinordertocalculatethepresentvalueofthosecashflows.
Intheprocessofmeasuringexpectedfuturecashflows,managementmakesassumptionsaboutfutureoperatingresults.
Theseassumptionsrelatetofutureeventsandcircumstances.
Theactualresultsmayvary,andmaycausesignificantadjustmentstotheCompany'sassets.
Inmostcases,determiningtheapplicablediscountrateinvolvesestimatingtheappropriateadjustmenttomarketriskandtheappropriateadjustmenttoasset-specificriskfactors.
Managementmonitorsprogressofinternalresearchanddevelopmentprojectsbyusingaprojectmanagementsystem.
Significantjudgmentisrequiredindistinguishingresearchfromthedevelopmentphase.
Developmentcostsarerecognisedasanassetwhenallthecriteriaaremet,whereasresearchcostsareexpensedasincurred.
Managementalsomonitorswhethertherecognitionrequirementsfordevelopmentcostscontinuetobemet.
Thisisnecessaryduetoinherentuncertaintyintheeconomicsuccessofanyproductdevelopment.
Depreciationmethods,usefullivesandresidualvaluesarereviewedateachfinancialyearendandadjustedprospectively,asappropriate.
Significantjudgmentsareinvolvedindeterminingtheprovisionforincometaxesincludingjudgmentonwhethertaxpositionsareprobableofbeingsustainedintaxassessments.
Ataxassessmentcaninvolvecomplexissues,whichcanonlyberesolvedoverextendedtimeperiods.
Therecognitionoftaxesthataresubjecttocertainlegaloreconomiclimitsoruncertaintiesisassessedindividuallybymanagementbasedonthespecificfactsandcircumstances.
Thestandardsandinterpretationsthatareissued,butnotyeteffectiveuptothedateofissuanceofthefinancialstatementsaredisclosedbelow.
TheCompanyintendstoadoptthesestandards,ifapplicable,whentheybecomeeffective.
OnMarch30,2019,MinistryofCorporateAffairs("MCA")hasnotifiedtheIndAS116,Leases.
ThisStandardsetsouttheprinciplesfortherecognition,measurement,presentationanddisclosureofleases.
Theobjectiveofthestandardistoensurethatlesseesandlessorsproviderelevantinformationinamannerthatfaithfullyrepresentsthosetransactions.
TheeffectivedateforadoptionofIndAS116isfinancialperiodsbeginningonorafterApril1,2019.
TheCompanyiscurrentlyevaluatingtherequirementsofamendments.
TheCompanybelievethattheadoptionofthisamendmentwillnothaveamaterialeffectonitsfinancialstatements.
Theamendmentclarifiesthatanentityshallrecognisetheincometaxconsequencesofdividendsinprofitorloss,othercomprehensiveincomeorequityaccordingtowheretheentityoriginallyrecognisedthosepasttransactionsorevents.
TheeffectivedateforapplicationofthisamendmentisannualperiodbeginningonorafterApril1,2019.
TheCompanydoesnotexpectanysignificantimpactoftheamendmentonitsfinancialstatements.
TheamendmentsrelatetotheexistingrequirementsinIndAS109regardingterminationrightsinordertoallowmeasurementatamortisedcost(or,dependingonthebusinessmodel,atfairvaluethroughothercomprehensiveincome)eveninthecaseofnegativecompensationpayments.
TheCompanydoesnotexpectthisamendmenttohaveanyimpactonitsfinancialstatements.
Theamendmentsclarifythatifaplanamendment,curtailmentorsettlementoccurs,itismandatorythatthecurrentservicecostandthenetinterestfortheperiodafterthere-measurementaredeterminedusingtheassumptionsusedforthere-measurement.
Inaddition,amendmentshavebeenincludedtoclarifytheeffectofaplanamendment,curtailmentorsettlementontherequirementsregardingtheassetceiling.
TheCompanydoesnotexpectthisamendmenttohaveanysignificantimpactonitsfinancialstatements.
Theamendmentsclarifythatifanyspecificborrowingremainsoutstandingaftertherelatedassetisreadyforitsintendeduseorsale,thatborrowingbecomespartofthefundsthatanentityborrowsgenerallywhencalculatingthecapitalisationrateongeneralborrowings.
TheCompanydoesnotexpectthisamendmenttohaveanysignificantimpactonitsfinancialstatements.
TheamendmentsclarifythatanentityappliesIndAS109FinancialInstruments,tolong-terminterestsinanassociateorjointventurethatformpartofthenetinvestmentintheassociateorjointventurebuttowhichtheequitymethodisnotapplied.
TheCompanywillapplythepronouncementifandwhenitobtainsanyinterestsinassociatesandjointventures.
TheamendmentstoIndAS103relatingtore-measurementclarifythatwhenanentityobtainscontrolofabusinessthatisajointoperation,itre-measurespreviouslyheldinterestsinthatbusiness.
TheamendmentstoIndAS111clarifythatwhenanentityobtainsjointcontrolofabusinessthatisajointoperation,theentitydoesnotre-measurepreviouslyheldinterestsinthatbusiness.
TheCompanywillapplythepronouncementifandwhenitobtainscontrol/jointcontrolofabusinessthatisajointoperation.
(e)Impairmentofnon-financialassetsandgoodwill(f)ResearchandDevelopmentsCosts(g)Property,PlantandEquipment(h)Currentincometaxes4.
Standards(includingamendments)issuedbutnotyeteffective(a)IndAS116-Leases(b)IndAS12–Incometaxes(c)IndAS109–PrepaymentFeatureswithNegativeCompensation(d)IndAS19–PlanAmendment,CurtailmentorSettlement(e)IndAS23–BorrowingCosts(f)IndAS28–Long-termInterestsinAssociatesandJointVentures(g)IndAS103–BusinessCombinationsandIndAS111–JointArrangements5029AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019VimtaLabsLimited5.
Property,PlantandEquipmentParticularsAsatApril1,2018AsatApril1,2018Additions/AdjustmentsChargefortheYearTangibleAssetsTotal1,657.
09144.
965.
301,796.
75253.
19197.
230.
89449.
531,347.
221,403.
90Land21.
88--21.
88----21.
8821.
88Buildings565.
27--565.
2724.
9112.
46-37.
37527.
90540.
36Furniture&Fixtures107.
472.
572.
02108.
0222.
5114.
950.
2737.
1970.
8384.
96Plant&Equipment852.
70120.
342.
54970.
50162.
49143.
980.
32306.
15664.
35690.
21ElectricalInstallation30.
85--30.
8518.
243.
67-21.
918.
9412.
61OfficeEquipment16.
041.
74-17.
786.
493.
67-10.
167.
629.
55Computers35.
6117.
76-53.
3712.
3414.
37-26.
7126.
6623.
27Vehicles27.
272.
550.
7429.
086.
214.
130.
3010.
0419.
0421.
06PreviousYear979.
61677.
780.
301,657.
0996.
24157.
000.
05253.
191,403.
90883.
37Deductions/AdjustmentsDeductions/AdjustmentsAsatMarch31,2019AsatMarch31,2019(Allamountsin.
Millionsunlessotherwisestated)GrossCarryingValueAccumulatedDepreciationAsatMarch31,2019AsatMarch31,2018NetCarryingValueNote:(i)Financeleases-ThecarryingvalueofofficeequipmentheldunderfinanceleasesatMarch31,2019isRs.
0.
52Million(March31,2018:Rs.
0.
88Million).
(ii)ReferNoteNo.
15ofthefinancialstatementsfordisclosuresrelatingtoproperty,plantandequipmentpledgedassecuritybytheCompany.
(iii)ReferNoteNo.
34ofthefinancialstatementsfordisclosuresrelatingtocontractualcommitmentsforacquisitionofproperty,plantandequipment.
5129AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019TOTALOpeningbalance-528.
79Add:Additionsduringtheyear49.
7326.
04Less:Capitalisedduringtheyear7.
91554.
8341.
82-Asat31.
03.
2019Asat31.
03.
2018Particulars6.
Capitalwork-in-progress(A)Non-currentTOTAL18.
7217.
95(B)CurrentTOTAL14.
2015.
14Loans-consideredgood,unsecuredSecuritydeposit-Others18.
7217.
74Securitydeposits-Directors(forleasedpremises)-0.
21Loans-consideredgood,unsecuredSecureddeposits-Others12.
2414.
06OtherLoans-Employees1.
961.
08Asat31.
03.
2019Asat31.
03.
2018Particulars7.
LoansVimtaLabsLimitedNote:LoansduefromrelatedpartiesasonMarch31,2019isRs.
Nil(PreviousYear:Rs.
0.
21Million)(A)OtherNon-Currentassets(Unsecured,consideredgood)TOTAL43.
3465.
07(B)OtherCurrentAssets(Unsecured,Consideredgood)TOTAL98.
9851.
59Capitaladvances-11.
70Incometaxassets(Net)43.
3453.
37Prepaidexpenses27.
9820.
34Advancesforservicesandsupplies14.
9912.
36Balancewithgovernmentauthorities4.
592.
75Exportincentives41.
057.
95Otheradvances10.
378.
19Asat31.
03.
2019Asat31.
03.
2018Particulars8.
OtherAssetsNote:OtherAssetsduefromrelatedpartiesasonMarch31,2019isRs.
Nil(PreviousYear:Rs.
Nil)ValuedatthelowerofcostandnetrealisablevalueTOTAL190.
41182.
64Chemicalsandconsumables140.
86142.
11Storesandspares11.
3010.
06Work-in-progress38.
2530.
47Asat31.
03.
2019Asat31.
03.
2018Particulars9.
Inventories5229AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019(Allamountsin.
Millionsunlessotherwisestated)VimtaLabsLimitedTOTAL585.
29559.
26Unsecured,consideredgood585.
29559.
26Unsecured,considereddoubtful28.
76-614.
05559.
26Less:ImpairmentLossonreceivables28.
76-Asat31.
03.
2019Asat31.
03.
2018Particulars10.
TradeReceivablesNote:TradeReceivablesduefromrelatedpartiesasonMarch31,2019isRs.
Nil(PreviousYear:Rs.
Nil)(i)BalancewithBanks-CurrentAccounts15.
6818.
11-EEFCAccounts10.
410.
93(ii)Cashonhand0.
580.
91(B)Bankbalancesotherthan(A)(i)aboveDepositsheldassecurityforbankguaranteeswithoriginalmaturityformorethan3monthsbutlessthan12months4.
704.
44UnclaimedDividendaccounts2.
081.
81(A)CashandCashequivalents:TOTAL26.
6719.
95TOTAL6.
786.
25Asat31.
03.
2019Asat31.
03.
2018Particulars11.
CashandBankBalancesNote:UnclaimedDividendsaretransferredtoInvestorEducationandProtectionFundaftersevenyearsfromduedateinaccordancewiththeapplicableprovisionsoftheAct.
Current-Unsecured,consideredgoodTOTAL0.
840.
80Interestaccruedondeposits0.
840.
80Asat31.
03.
2019Asat31.
03.
2018Particulars12.
OtherFinancialAssetsNote:OtherFinancialAssetsduefromrelatedpartiesasonMarch31,2019isRs.
Nil(PreviousYear:Rs.
Nil)AuthorizedIssued,subscribedandfullypaid-upEquitySharesofRs.
2/-each35,000,00070.
0035,000,00070.
00EquitySharesofRs.
2/-each22,107,81044.
2222,107,81044.
22Particulars13.
EquityShareCapitalAsat31.
03.
2019No.
ofSharesAmountAsat31.
03.
2018No.
ofSharesAmountOutstandingatthebeginningoftheyear22,107,81044.
2222,107,81044.
22Add:Issuedduringtheyear----Outstandingattheendoftheyear22,107,81044.
2222,107,81044.
22Particulars(a)ReconciliationofequitysharesoutstandingatthebeginningandattheendoftheyearAsat31.
03.
2019No.
ofSharesAmountAsat31.
03.
2018No.
ofSharesAmount5329AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019(Allamountsin.
Millionsunlessotherwisestated)VimtaLabsLimited(b)Rights,preferencesandrestrictionsattachedtosharesTheCompanyhasonlyoneclassofequityshareshavingparvalueofRs.
2/-pershare.
Eachshareholderisentitledtoonevotepershareheldandranksparipassu.
ThedividendproposedbytheBoardofDirectorsissubjecttotheapprovaloftheshareholdersintheensuingAnnualGeneralMeetingexceptinthecaseofInterimDividend.
Intheeventofliquidationofthecompany,theholdersofequitysharesareentitledtoreceiveremainingassetsofthecompany,afterdistributionofallpreferentialamounts.
Thedistributionwillbeinproportiontothenumberofequitysharesheldbytheshareholders.
TheboardofdirectorsofthecompanyhaverecommendedadividendofRs2/-perequityshareofRs2/-eachforthefinancialyear2018-19(FY2017-18:Rs.
2/-perequityshareofRs2/-each),subjecttoapprovaloftheshareholdersattheensuingAnnualGeneralMeeting(c)Detailsofsharesheldbyshareholdersholdingmorethan5%oftheaggregatesharesintheCompanyEurofinsAnalyticalServicesIndiaPvt.
Ltd.
4,403,66819.
924,403,66819.
92SivalingaPrasadVasireddi3,598,52516.
283,598,52516.
28LCGCChromatographySolutionsPvt.
Ltd.
2,083,1759.
422,083,1759.
42HarrimanVungal1,777,1668.
041,777,1668.
04VeerabhadraPrasadVasireddi1,463,5156.
621,463,5156.
62ParticularsAsat31.
03.
2019No.
ofShares%ofHoldingAsat31.
03.
2018No.
ofShares%ofHoldingNote:TheaboveshareholdingisaspertherecordsoftheCompany,includingitsregisterofshareholders/membersandotherdeclarationsreceivedfromshareholdersregardingbeneficialinterest,theaboveshareholdingrepresentsbothlegalandbeneficialownershipofshares.
(d)NoclassofshareshavebeenissuedasbonussharesorforconsiderationotherthancashbytheCompanyduringtheperiodoffiveyearsimmediatelyprecedingthecurrentyearend.
(e)NoclassofshareshavebeenboughtbackbytheCompanyduringtheperiodoffiveyearsimmediatelyprecedingthecurrentyearend.
SecurityPremiumGeneralReserveRetainedEarningsOtherComprehensiveIncomeTOTAL1,671.
301,476.
31Balanceatthebeginningandendoftheyear773.
73773.
73Balanceatthebeginningandendoftheyear86.
4086.
40Balanceatthebeginningoftheyear626.
94462.
61Add:Profitfortheyear253.
11164.
33Less:TransfertoGeneralReserve--Less:DividendonEquityShares44.
22-Less:TaxonDividend9.
09-Balanceattheclosingoftheyear826.
74626.
94Balanceatthebeginningoftheyear(10.
76)(5.
48)Add:Othercomprehensiveincome/(loss)fortheyear(4.
81)(5.
28)Balanceattheclosingoftheyear(15.
57)(10.
76)Asat31.
03.
2019Asat31.
03.
2018Particulars14.
OtherEquityNatureandpurposeofreserves:Securitypremium:Generalreserves:Retainedearnings:Othercomprehensiveincome:ThisisthepremiumreceivedonissueofequitysharesandwillbeutilisedaspertheapplicableprovisionsoftheAct.
ThisistheamounttransferredfromretainedearningsandwillbeutilisedaspertheapplicableprovisionsoftheAct.
ThiscomprisesofnetaccumulatedprofitoftheCompanyafterdeclarationofdividend.
Thiscomprisesofacturialgain/(loss)[netoftaxes]attheendofthereportingperiod.
5429AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019(Allamountsin.
Millionsunlessotherwisestated)(A)Non-currentBorrowingsUnsecuredTOTAL115.
68194.
63(B)CurrentBorrowingsSecured,repayableondemandTOTAL52.
42131.
48SecuredLoansfromBanks-Rupeetermloan72.
0084.
00-Foreigncurrencytermloan116.
76183.
90LoansfromFinancialInstitution-Rupeetermloan17.
08-205.
84267.
90Financelease-0.
17205.
84268.
07Less:currentmaturities[ReferNote20]90.
1673.
44-Workingcapitalloansfrombanks52.
42131.
48Asat31.
03.
2019Asat31.
03.
2018Particulars15.
BorrowingsVimtaLabsLimitedNote:(a)Termsandconditionsofsecuredrupeetermloansandnatureofsecurity(b)Termsandconditionsofsecuredforeigncurrencytermloansandnatureofsecurity(c)Termsandconditionsofsecuredrupeetermloansandnatureofsecurity(d)Termsandconditionsofunsecuredloans1.
TherupeetermloanfromStateBankofIndiaamountingtoRs.
72MillionasatMarch31,2019(sanctionedlimitofRs.
84MillioninFY2017-18)issecuredbywayoffirstchargeonfixedassetsoftheCompanyandstructuresthereon(bothpresentandfuture)bywayofhypothecationandequitablemortagagethereonexcludingassetacquired/tobeacquiredbyloantakenfromCiscoSystemsCapitalIndiaPrivateLimited,asmentionedinnote(c)below.
Additionally,thisloanisalsosecuredbyafirstchargeonallcurrentassetsoftheCompany(bothpresentandfuture).
2.
Theabovementionedrupeetermloancarriesaninterestattherateof2.
50%aboveMCLRratei.
e.
11.
05%p.
a.
asatMarch31,2019(March31,2018:11.
00%p.
a.
)andisrepayablein14equalquarterlyinstalmentscommencingfromNovember2018.
1.
TheforeigncurrencytermloanfromStateBankofIndiaamountingtoRs.
116.
75Million(equivalenttoUSD1.
69Million)asatMarch31,2019(sanctionedlimitofrupeetermloanofRs.
271MillioninFY2015-16)issecuredbywayoffirstchargeonfixedassetsoftheCompanyandstructuresthereon(bothpresentandfuture)bywayofhypothecationandequitablemortagagethereonexcludingassetacquired/tobeacquiredbyloantakenfromCiscoSystemsCapitalIndiaPrivateLimited,asmentionedinnote(c)below.
Additionally,thisloanisalsosecuredbyafirstchargeonallcurrentassetsoftheCompany(bothpresentandfuture).
2.
Theabovementionedforeigncurrencytermloancarriesinterestat3.
25%oversixmonthsLIBORi,e.
5.
94%p.
a.
asatMarch31,2019(March31,2018:4.
00%oversixmonthsLIBORi,e.
6.
50%p.
a.
)andrepayablein14equalquarterlyinstalmentscommencingfromDecember2017.
1.
TherupeetermloanfromCiscoSystemsCapitalIndiaPrivateLimitedamountingtoRs.
17.
08MillionasatMarch31,2019(sanctionedlimitofRs.
24.
40MillioninFY2018-19)issecuredbywayofexclusivechargeonassetsacquiredfromsuchloanbywayofhypothecation.
2.
Theabove-mentionedrupeetermloancarriesaninterestattherateof5.
00%asatMarch31,2019(March31,2018:NotApplicable)andisrepayablein12quarterlyinstalmentscommencingfromMarch2019.
Thefinanceleasecarriedinterestof8.
21%p.
a.
inthepreviousyearandwasrepaidin12quarterlyinstalments,thelastofwhichwasrepaidinMay2018.
05529AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019(Allamountsin.
Millionsunlessotherwisestated)TOTAL73.
4485.
27109.
36268.
07Rupeetermloanfrombank12.
0024.
0048.
0084.
00Foreigncurrencytermloanfrombank61.
2761.
2761.
36183.
90Financeleasefromfinancialinstitution0.
17--0.
17ParticularsWithin1Year1-2Years2-5YearsTotal31March2018VimtaLabsLimited(f)Detailsofsecurityofshort-termborrowings:TheworkingcapitalfacilityfromStateBankofIndiacarriesaninterestof0.
95%aboveMCLRratei.
e.
9.
50%p.
a.
(31March2018:2%aboveMCLRi.
e.
10.
00%p.
a.
)andissecuredbywayoffirstchargeonfixedassetsoftheCompanyandstructuresthereon(bothpresentandfuture)bywayofhypothecationandequitablemortagagethereonexcludingassetacquired/tobeacquiredbyloantakenfromCiscoSystemsCapitalIndiaPrivateLimited,asmentionedinnote(c)above.
Additionally,thisfacilityisalsosecuredbyafirstchargeonallcurrentassetsoftheCompany(bothpresentandfuture).
TOTAL90.
1686.
7928.
89205.
84Rupeetermloanfrombank24.
0024.
0024.
0072.
00Foreigncurrencytermloanfrombank60.
2256.
54-116.
76Rupeetermloanfromfinancialinstitution5.
946.
254.
8917.
08Particulars(e)Maturityprofileoflong-termborrowings:Within1Year1-2Years2-5YearsTotal31March2019(A)Non-currentTOTAL82.
8068.
40(B)CurrentTOTAL19.
6915.
45Provisionforemployeebenefits-Gratuity,funded50.
9741.
71-Compensatedabsences31.
8326.
69Provisionforemployeebenefits-Gratuity,funded11.
266.
61-Compensatedabsences8.
438.
84Asat31.
03.
2019Asat31.
03.
2018Particulars16.
Provisions(A)Deferredtaxliabilityonaccountof(B)DeferredtaxassetonaccountofTOTAL(A)-(B)11.
0321.
09-Property,plantandequipment52.
4558.
39-Gratuity18.
0616.
72-Compensatedabsences11.
7212.
30-Bonus3.
268.
28-Impairmentlossrecognizedunderexpectedcreditloss(ECL)model8.
38-41.
4237.
30Asat31.
03.
2019Asat31.
03.
2018Particulars17.
DeferredTaxLiabilities(Net)5629AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019(Allamountsin.
Millionsunlessotherwisestated)VimtaLabsLimitedClosingbalanceasatMarch31,2019(44.
92)64.
33(8.
38)11.
03OpeningbalanceasofApril1,2018(37.
30)58.
39-21.
09Charged/(credited)-toprofitorloss(5.
65)5.
94(8.
38)(8.
09)-toOCI(1.
97)--(1.
97)ParticularsMovementinthedeferredtaxliabilities/(assets)EmployeebenefitexpensesProperty,plantandequipmentImpairmentlossrecognizedunderECLmodelTotalDeferredgrantincomerelatedtoProperty,Plant&Equipment14.
1117.
46Deferredgrantincomerelatedtorevenue(refernotebelow)2.
132.
13TOTAL16.
2419.
59Asat31.
03.
2019Asat31.
03.
2018Particulars18.
Othernon-currentliabilitiesNote:TheCompanywasgrantedanin-principalapprovalofagrant-in-aidofRs.
7.
1MillionduringFY2017-18bytheBiotechnologyIndustryResearchAssistanceCouncil('BIRAC')forprojectentitledtowardspreclinicalevaluationofclinicalgradevaccine.
However,thebalancegrantofRs.
4.
97MillionisyettobereceivedbytheCompanyasonMarch31,2019.
Outstandingduesofmicroenterprisesandsmallenterprises19.
25-Outstandingduesofcreditorsotherthanmicroenterprisesandsmallenterprises91.
06129.
741TOTAL10.
31129.
74Asat31.
03.
2019Asat31.
03.
2018Particulars19.
TradepayablesNote:DetaileddisclosurerelatingtosuppliersregisteredunderMSMEDActaregiveninNoteNo.
40ofthefinancialstatements.
Currentmaturitiesoflong-termborrowings(ReferNote15A)90.
1673.
27Currentmaturitiesoffinanceleaseobligations(ReferNote15A)-0.
17Interestaccrued0.
751.
69Unclaimeddividends2.
081.
81Creditorsforcapitalexpenditure17.
377.
60Securitydeposits6.
006.
00Others-Duesforrevenueexpenses79.
0669.
78TOTAL195.
42160.
32Asat31.
03.
2019Asat31.
03.
2018Particulars20OthercurrentfinanicialliabilitiesNote:UnclaimedDividendsdonotincludeanyamountdueandoutstandingtobecreditedtoInvestorEducationandProtectionFund.
DeferredgrantincomerelatedtoProperty,Plant&Equipment3.
353.
35Advancesfromcustomers28.
4427.
75Others-StatutoryDues23.
3730.
22TOTAL55.
1661.
32Asat31.
03.
2019Asat31.
03.
2018Particulars21.
OtherCurrentLiabilities5729AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019(Allamountsin.
Millionsunlessotherwisestated)VimtaLabsLimitedSaleofservices-TestingandAnalysis2,079.
601,805.
86Otheroperatingrevenue-ExportIncentives46.
8128.
65TOTAL2,126.
411,834.
51Fortheyearended31.
03.
2019Fortheyearended31.
03.
2018Particulars22.
RevenuefromOperations-Bankdeposits0.
290.
24-DepositswithStateElectricityCorporations0.
890.
80-InterestIncomeonfairvaluemeasurement0.
29--Incometaxrefunds5.
444.
21-Employeesloans0.
280.
19-Liabilitiesnolongerrequiredwrittenback0.
183.
88-Rent-0.
97-Grantincome3.
351.
68-Gainonforeigncurrencytransactionsandtranslations(net)8.
22--Miscellaneousreceipts0.
33-i)Interestincomeon:ii)OthersTOTAL19.
2711.
97Fortheyearended31.
03.
2019Fortheyearended31.
03.
2018Particulars23.
OtherIncome(a)Inventoryatthebeginningoftheyear152.
17152.
10Add:Purchases356.
39295.
38Less:Inventoryattheendoftheyear152.
15152.
17Samplepreparation,datageneration,inspection&testingexpenditure133.
14114.
80CarriageInwards3.
213.
63Powerandfuel94.
3187.
80WaterCharges4.
924.
91CostofmaterialsconsumedSUB-TOTAL(A)356.
41295.
31(b)TestingexpenditureSUB-TOTAL(B)235.
58211.
14TOTAL(A)+(B)591.
99506.
45Fortheyearended31.
03.
2019Fortheyearended31.
03.
2018Particulars24.
CostofmaterialconsumedandtestingexpenditureOpeningWork-in-Progress30.
4754.
04Less:ClosingWork-in-Progress38.
2530.
47Decrease/(Increase)inWork-in-Progress(7.
78)23.
57Fortheyearended31.
03.
2019Fortheyearended31.
03.
2018Particulars25.
ChangesininventoriesofWork-in-Progress5829AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019(Allamountsin.
Millionsunlessotherwisestated)Salariesandwages477.
39415.
17Directorsremuneration40.
6641.
65Contributiontoprovidentandotherfunds(ReferNoteNo.
39A)29.
8328.
00Gratuity(ReferNoteNo.
39B)10.
6211.
12Compensatedabsences(ReferNoteNo.
39B)16.
7422.
22Staffwelfareexpenses17.
2914.
45TOTAL592.
53532.
61Fortheyearended31.
03.
2019Fortheyearended31.
03.
2018Particulars26.
EmployeebenefitsexpenseVimtaLabsLimitedInterestontermloans21.
4623.
94Interestonworkingcapitalloans9.
1720.
60Interestonfinanceleaseobligations0.
010.
06Interestexpenseonfairvaluemeasurement0.
30-Bankcharges4.
344.
24Exchangedifferencesregardedasanadjustmenttoborrowingcost10.
793.
16TOTAL46.
0752.
00Fortheyearended31.
03.
2019Fortheyearended31.
03.
2018Particulars27.
FinancecostsSittingfeestodirectors0.
200.
18Rent21.
8122.
43Rates,taxes,dutiesandlevies12.
5419.
11Insurance6.
286.
29Repairsandmaintenance:-PlantandMachinery65.
4860.
79-Buildings13.
9714.
37-Vehicles4.
734.
06Advertisementandsalespromotion6.
995.
29Commission4.
218.
92Travellingandconveyance60.
5055.
63Communicationexpenses22.
7818.
20PrintingandStationery2.
535.
91Booksandperiodical0.
240.
13Professionalandconsultancyservices47.
9634.
48Membershipandsubscriptions0.
870.
54HouseKeepingandpremisesmaintenance10.
0410.
77Securitycharges6.
826.
63Recruitmentandtrainingexpenses2.
041.
42Paymentstoauditors:-forstatutoryaudit1.
251.
00-fortaxaudit0.
150.
06-forotherservices0.
300.
22-forreimbursementofexpenses0.
040.
03Softwarecharges1.
161.
69Lossonforeigncurrencytransactionsandtranslations(net)-2.
63Lossonsaleofassets2.
250.
05Baddebtswrittenoff44.
0334.
24Impairmentlossonreceivables28.
76-CorporateSocialResponsibilityexpenses3.
262.
60Miscellaneousexpenses3.
041.
54TOTAL374.
23319.
21Fortheyearended31.
03.
2019Fortheyearended31.
03.
2018Particulars28.
Otherexpenses5929AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019(Allamountsin.
Millionsunlessotherwisestated)VimtaLabsLimitedCurrenttaxes115.
2076.
91Prioryearadjustments(8.
82)2.
40Deferredtax(benefit)/expense(8.
08)12.
00Profitbeforetax351.
41255.
64Taxexpenseatapplicabletaxrates(March31,2019:29.
12%;March31,2018:34.
61%)102.
3388.
47Taxeffectsof:-adjustmentforpreviousyears(8.
82)2.
40-itemsnotdeductiblefortax3.
391.
42-Others1.
40(0.
98)TaxexpensereportedinStatementofProfitandLoss(A)TaxexpensechargedtoStatementofProfitandLossTOTAL98.
3091.
31(B)TaxexpensechargedtoOtherComprehensiveIncome1.
972.
80(C)Reconciliationoftaxexpense98.
3091.
31Fortheyearended31.
03.
2019Fortheyearended31.
03.
2018Particulars29.
TaxExpenseProfitattributabletoequityholders(inINRMillion)253.
11164.
33Profitattributabletoequityholdersadjustedfortheeffectofdilution(inINRMillion)253.
11164.
33WeightedaveragenumberofequitysharesforbasicEPS(inNo's)22,107,81022,107,810Weightedaveragenumberofequitysharesadjustedfortheeffectofdilution(inNo's)22,107,81022,107,810Nominal/FaceValuepershare(INR)2.
002.
00BasicEarningspershare(INR)11.
457.
43DilutedEarningspershare(INR)11.
457.
43Fortheyearended31.
03.
2019Fortheyearended31.
03.
2018Particulars30.
EarningspershareBasicearningspershareamountsarecalculatedbydividingtheprofitfortheyearattributabletoequityholdersbytheweightedaveragenumberofequitysharesoutstandingduringtheyear.
ThefollowingreflectstheincomeandsharedatausedinthebasicanddilutedEPScomputations:NoteAsatNo31.
03.
2019Asat31.
03.
2018FinancialAssets652.
50619.
35FinancialLiabilities473.
83616.
17Loans(currentandnon-current)7A&7B32.
9233.
09Tradereceivables(net)10585.
29559.
26Cashandcashequivalents11A26.
6719.
95BankbalancesotherthanCashandcashequivalents11B6.
786.
25Otherfinancialassets120.
840.
80Borrowings(currentandnon-current)15A&15B168.
10326.
11TradePayables19110.
31129.
74Otherfinancialliabilities20195.
42160.
3231.
FairvaluemeasurementsThefollowingtableshowsthecarryingamountandfairvalueoffinancialassetsandfinancialliabilities:Themanagementhasassessedthefairvaluethroughamortisedcostfortheabovementionedfinancialassetsandliabilities,whichareapproximatetotheircarryingamounts.
Further,theCompanydoesnothaveanyfinancialinstrumentslikeinvestmentinequityshares,preferenceshares,debenture,convertibleloanetc.
whichneedstofairvalued/classifiedintodifferentlevelsprescribedasrequiredundertheIndianAccountingStandard113,FairValueMeasurement.
6029AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019(Allamountsin.
Millionsunlessotherwisestated)VimtaLabsLimited32.
Financialriskmanagementobjectivesandpolicies(i)MarketRiska)ForeignCurrencyriskTheCompany'sactivitiesexposeittoavarietyoffinancialrisks,includingmarketrisk,creditriskandliquidityrisk.
TheCompany'sprimaryriskmanagementfocusistominimizepotentialadverseeffectsofmarketriskonitsfinancialperformance.
TheCompany'sriskmanagementassessmentandpoliciesandprocessesareestablishedtoidentifyandanalysetherisksfacedbytheCompany,tosetappropriaterisklimitsandcontrols,andtomonitorsuchrisksandcompliancewiththesame.
RiskassessmentandmanagementpoliciesandprocessesarereviewedregularlytoreflectchangesinmarketconditionsandtheCompany'sactivities.
TheBoardofDirectorsandtheAuditCommitteeisresponsibleforoverseeingtheCompany'sriskassessmentandmanagementpoliciesandprocesses.
ItistheCompany'spolicythatnotradinginderivativesforspeculativepurposesmaybeundertaken.
Marketriskistheriskthatchangesinmarketprices,suchasforeignexchangerates,interestratesandequityprices,willaffecttheCompany'sincomeorthevalueofitsholdingsoffinancialinstruments.
Marketriskisattributabletoallmarketrisksensitivefinancialinstrumentsincludingforeigncurrencyreceivablesandpayablesandlong-termdebt.
Theobjectiveofmarketriskmanagementistomanageandcontrolmarketriskexposureswithinacceptableparameters,whileoptimisingthereturn.
Foreigncurrencyriskistheriskthatthefairvalueorfuturecashflowsofanexposurewillfluctuatebecauseofchangesinforeignexchangerates.
TheCompany'sexposuretotheriskofchangesinforeignexchangeratesrelatesprimarilytotheCompany'soperatingactivities(whenrevenueorexpenseisdenominatedinaforeigncurrency)inUnitedStatesDollar('USD'),Euro('EUR'),GreatBritainPound('GBP')andMalaysianRinggit('MYR')andborrowingsinUSD.
TheCompany'sexposuretoforeigncurrencyriskfromnon-derivativefinancialinstrumentsattheendofthefinancialyear,areasfollows:UnitedStatesDollarEuroGreatBritainPoundMalaysianRinggitAssets-TradeReceivables2.
17149.
801.
73112.
36Liabilities-TradePayables(0.
09)(5.
88)(0.
04)(2.
87)Liabilities-Borrowings(1.
69)(116.
76)(2.
83)(183.
90)Assets-TradeReceivables0.
1612.
440.
1310.
72Assets-TradeReceivables0.
054.
96--Assets-TradeReceivables2.
7747.
43--ParticularsAsat31.
03.
2019ForeignCurrencyAmountinINRAsat31.
03.
2018ForeignCurrencyAmountinINRUnitedStatesDollar69.
171365.
0441Euro77.
702480.
6222GreatBritainPound90.
475692.
2846MalaysianRinggit17.
096516.
8540Asat31.
03.
2019Asat31.
03.
2018ParticularsThefollowingexchangerateshavebeenappliedattheendofthefinancialyear:ForeigncurrencysensitivityTheimpactontheCompany'sprofitabilityandequityisduetochangesinthefairvalueofmonetaryassetsandliabilitiesincludingnon-designatedforeigncurrencyderivativesareasfollows:6129AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019(AllamountsinMillionsunlessotherwisestated)(Allamountsin.
Millionsunlessotherwisestated)31March20195%Sensitivity*of:UnitedStatesDollar1.
36(1.
36)0.
96(0.
96)Euro0.
62(0.
62)0.
44(0.
44)GreatBritainPound0.
25(0.
25)0.
18(0.
18)MalaysianRinggit2.
37(2.
37)1.
68(1.
68)31March20185%Sensitivity*of:UnitedStatesDollar(3.
72)3.
72(2.
43)2.
43Euro0.
54(0.
54)0.
35(0.
35)ParticularsImpactonProfitStrengtheningWeakeningImpactonEquity,netoftaxStrengtheningWeakening*HoldingallothervariablesconstantVimtaLabsLimitedb)InterestrateriskInterestrateriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarketinterestrates.
TheCompany'sfixedrateborrowingsarecarriedatamortisedcostandhencearenotsubjecttointerestrateriskasdefinedinIndAS107,sinceneitherthecarryingamountnorthefuturecashflowswillfluctuatebecauseofachangeinmarketinterestrates.
Further,theCompany'sinvestmentsindepositsiswithbanksandelectricityauthoritiesandthereforedonotexposetheCompanytosignificantinterestratesrisk.
Thecompany'smaininterestrateriskarisesfromborrowingswithvariablerates,whichexposeittocashflowinterestraterisk.
TheCompany'sexposuretofixedrateandvariablerateinstrumentsattheendofthefinancialyear,areasfollows:Financialassets39.
7039.
34Financialliabilities23.
086.
00Financialliabilities241.
18399.
55FixedrateinstrumentsVariablerateinstrumentsAsat31.
03.
2019Asat31.
03.
2018ParticularsThefollowingtabledemonstratesthesensitivitytoareasonablypossiblechangeininterestratesonthatportionofborrowingsaffected.
Withallothervariablesheldconstant,theCompany'sprofitbeforetaxisaffectedthroughtheimpactonfloatingrateborrowings,asfollows:Interestratesincreaseby100basispoints*2.
414.
00Interestratesdecreaseby100basispoints*(2.
41)(4.
00)Asat31.
03.
2019Asat31.
03.
2018Particulars*Holdingallothervariablesconstantc)Priceriskii)CreditriskTradeandotherreceivablesTheCompanydoesnothaveanyinvestmentswhichareclassifiedinthebalancesheeteitherasfairvaluethroughOCIoratfairvaluethroughprofitorloss.
Hence,theCompanyisnotexposedtoanypricerisk.
Creditriskistheriskthatcounterpartywillnotmeetitsobligationsunderafinancialinstrumentorcustomercontract,leadingtoafinancialloss.
TheCompanyisexposedtocreditriskfromitsoperatingactivities(primarilytradereceivables)andfromitsfinancingactivities,includingdepositswithbanksandfinancialinstitutions,foreignexchangetransactionsandotherfinancialinstruments.

CustomercreditriskismanagedbyeachbusinessunitsubjecttotheCompany'sestablishedpolicy,proceduresandcontrolrelatingtocustomercreditriskmanagement.
Thecreditqualityofacustomerisassessedbasedonanextensivecreditratingscorecard,internalevaluationandindividualcreditlimits.
TheCompanyevaluatestheconcentrationofriskwithrespecttotradereceivablesaslow,asitscustomersarelocatedinseveraljurisdictionsandindustriesandoperateinlargelyindependentmarkets.

Tomeasuretheexpectedcreditlosses,tradereceivableshavebeengroupedbasedonsharedcreditriskcharacteristicsandthedayspastdue.
Theexpectedlossratesarebasedonthepaymentprofilesofsalesoverthelastninequartersbeforethereportingdateandthecorrespondinghistoricalcreditlossesexperiencedattheendofeachquarter.
Thehistoricallossratesareadjustedtoreflectcurrentandforward-lookinginformationonmacroeconomicfactorsaffectingtheabilityofthecustomerstosettlethereceivables.
TheexpectedcreditlossassessmentfromcustomersasatMarch31,2019areasfollows:6229AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019(Allamountsin.
Millionsunlessotherwisestated)VimtaLabsLimitedTOTAL614.
0528.
76585.
29Upto180days483.
803.
43480.
37Over180days130.
2525.
33104.
92CarryingamountoftradereceivableParticularsExpectedcreditlossesGrossCarryingAmountCollateralheldassecurityandothercreditenhancementsFinancialassetsthatareneitherpastduenorimpairedFinancialassetsthatareneitherpastduebutnotimpairedTheCompanydoesnotcollectanycollateralorothercreditenhancementstocoveritscreditrisksassociatedwithitsfinancialassets.
Otherthantradereceivables,theCompanyhasnosignificantclassoffinancialassetsthatispastduebutnotimpaired.
TheCompany'screditperiodforcustomersgenerallyrangesfrom0-180days.
Theagingoftradereceivablesthatarenotdueandpastduebutnotimpairedisgivenbelow:PeriodindaysAsat31.
03.
2019Asat31.
03.
2018Upto180days480.
37452.
59Over180days104.
92106.
67585.
29559.
26iii)LiquidityriskLiquidityriskistheriskthattheCompanywillnotbeabletomeetitsfinancialobligationsastheybecomedue.
TheCompanymanagesitsliquidityriskbyensuring,asfaraspossible,thatitwillalwayshavesufficientliquiditytomeetitsliabilitieswhendue,underbothnormalandstressedconditions,withoutincurringunacceptablelossesorrisktotheCompany'sreputation.
ManagementmonitorsrollingforecastsoftheCompany'sliquidityposition(comprisingtheundrawnborrowingfacilities)andcashandcashequivalentsonthebasisofexpectedcashflows.
ThisisgenerallycarriedoutbytheCompanyinaccordancewithpracticeandlimitssetbythemanagement.
Inaddition,theCompany'sliquiditymanagementpolicyinvolvesprojectingcashflowsinmajorcurrenciesandconsideringthelevelofliquidassetsnecessarytomeetthese,monitoringbalancesheetliquidityratiosagainstinternalandexternalregulatoryrequirementsandmaintainingdebtfinancingplans.
ParticularsAsat31.
03.
2019Asat31.
03.
2018Currentassets923.
17835.
63Currentliabilities433.
00498.
31Workingcapital490.
17337.
32TheCompanyhadfollowingworkingcapitalattheendofthereportingyears:ThetablebelowsummarisesthematurityprofileoftheCompany'sfinancialliabilitiesbasedoncontractualundiscountedpaymentsatthereportingperiod:ParticularsAsat31.
03.
2019Asat31.
03.
2018Lessthan1year-Borrowings142.
58204.
92-Tradepayables110.
31129.
74-Otherfinancialliabilities105.
2686.
881to2years-Borrowings86.
7985.
272to5years-Borrowings28.
89109.
366329AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019(Allamountsin.
Millionsunlessotherwisestated)iv)ExcessiveriskconcentrationConcentrationsarisewhenanumberofcounterpartiesareengagedinsimilarbusinessactivities,oractivitiesinthesamegeographicalregion,orhaveeconomicfeaturesthatwouldcausetheirabilitytomeetcontractualobligationstobesimilarlyaffectedbychangesineconomic,politicalorotherconditions.
ConcentrationsindicatetherelativesensitivityoftheCompany'sperformancetodevelopmentsaffectingaparticularindustry.
Inordertoavoidexcessiveconcentrationsofrisk,theCompany'spoliciesandproceduresincludespecificguidelinestofocusonthemaintenanceofadiversifiedportfolio.
Identifiedconcentrationsofcreditrisksarecontrolledandmanagedaccordingly.
SelectivehedgingisusedwithintheCompanytomanageriskconcentrationsatboththerelationshipandindustrylevels.
VimtaLabsLimitedParticularsAsat31.
03.
2019Asat31.
03.
2018A.
ClaimsagainsttheCompanynotacknowledgedasdebtsinrespectof:18.
5716.
82B.
BankGuarantees13.
4436.
91(i)IncometaxdemandsnotprovidedforAssessmentYear2012-13,2013-14and2014-15(pendingbeforetheIncomeTaxAppellateTribunal)8.
138.
13(ii)IncometaxdemandsnotprovidedforAssessmentYear2016-17(pendingbeforetheCommissionerofIncomeTax(Appeals))1.
75-(iii)Employeesprovidentfunddemandnotprovidedfor(pendingbeforetheEmployees'ProvidentFundsAppellateTribunal)8.
708.
70Note:(a)Inrespectofitem(i)above,thecompanyhasreceivedafavourableorderdatedApril24,2019fromtheIncomeTaxAppellateTribunalandinrespectofitem(ii)&(iii)above,thelegalcounselhasconfirmedthevalidityofthecompany'sstand.
Althoughtherecanbenoassuranceregardingtheoutcomeoftheappeals,thecompanydoesnotexpectthesetohaveamateriallyadverseeffectonitsfinancialposition,asitbelievesthatthelikelihoodoflossinexcessofamountsaccrued(ifany)isnotprobable.
(b)IncomeTaxdemandforAssessmentYear2016-17wasadjustedfromtheeligiblerefundandhenceoutstandingdemandisNil.

(c)BasedontheSupremeCourtJudgementdatedFebruary28,2019,theCompanywasrequiredtoreassessthecomponentstobeincludedinthebasicsalaryforthepurposesofdeductionofProvidentFund.
However,onthebasisoflegaladvice,theCompanybelievesthattherewillbenoimpactasondateandhencehasnotprovidedforanyadditionalliabilityasatMarch31,2019inthebooksofaccounts.
"(d)BankGuaranteesareissuedtomeetcertainbusinessobligationstowardsgovernmentagenciesandcertaincustomers.

0ParticularsAsat31.
03.
2019Asat31.
03.
2018Estimatedamountofcontractsamountingtobeexecutedoncapitalaccountandnotprovidedfor(netofadvances)33.
920.
2034.
CommitmentsParticularsFortheyearended31.
03.
2019Fortheyearended31.
03.
2018Totalrentalexpenserelatingtooperatinglease21.
8122.
43-Non-cancellable---Cancellable21.
8122.
4335.
LeasesTheCompany'ssignificantleasingarrangementsareinrespectofoperatingleasesforpremises.
Theleasingarrangementsaregenerallycancellableleaseswhichrangebetween1yearsto5yearsandareusuallyrenewablebymutualconsentonagreedterms.
ParticularsFortheyearended31.
03.
2019Fortheyearended31.
03.
2018Employeebenefitsexpenses-2.
38Materialsandstoresandsparesconsumption0.
604.
14Otherexpenses-1.
500.
608.
0236.
ResearchanddevelopmentexpenditureAggregateamountofresearchanddevelopmentexpenditurerecognisedasanexpenseduringtheyear6429AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019(Allamountsin.
Millionsunlessotherwisestated)33.
ContingentLiabilitiesVimtaLabsLimitedParticularsFortheyearended31.
03.
2019Fortheyearended31.
03.
2018Grossamountrequiredtobespentduringtheyear3.
262.
05Add:UnspentAmountbroughtforwardfrompreviousyear-0.
55Less:Actualamountspentduringtheyear3.
262.
60Balanceamounttobespentinfutureyears--37.
Corporatesocialresponsibilityexpenditure(CSR)38.
RelatedPartydisclosuresa)NameoftherelatedpartiesandnatureofrelationshipNameoftherelatedpartiesNatureofrelationship(i)KeyManagementPersonnel(ii)RelativesofKeyManagementpersonnel(iii)CompaniesinwhichsomeoftheDirectorsorotherrelativesareinterestedDrSPVasireddiChairman(ExecutiveChairmanupto30.
06.
2018HaritaVasireddiManagingDirectorHarrimanVungalExecutiveDirector(ED)-OperationsVVPrasadExecutiveDirector(ED)-AdministrationTSAjaiIndependentDirectorProfD.
BalasubramanianIndependentDirectorRaoPurnachandraPotarlankaIndependentDirectorYPrameelaRaniIndependentDirector(w.
e.
f01/12/2017)AmitPathakChiefFinancialOfficer(from01.
01.
2019)MuraliMohanaRaoMokkapatiChiefFinancialOfficer(upto01.
12.
2018)SujaniVasireddiCompanySecretary(from31.
08.
2018)AVenkaramanaCompanySecretary(upto31.
08.
2018)SireeshChandraVungalSonofED-OperationsSudheshnaVungalDaughterofED-OperationsSatyaSreenivasNeerukondaSon-in-lawofED-AdministrationPraveenaVasireddiDaughterofChairmanRajeswariVungalWifeofED-OperationsRajyaLakshmiVasireddiWifeofED-AdministrationSwarnalathaVasireddiWifeofChairmanBloomedhaInfoSolutionsLimitedParticularsFortheyearended31.
03.
2019Fortheyearended31.
03.
2018(i)RemunerationtoKeyManagementPersonnel(KMP)*(ii)RentpaidtoKeyManagementPersonnel(KMP)(iii)RemunerationtorelativesofKeyManagementPersonnel(KMP)Dr.
SPVasireddi14.
3213.
42HaritaVasireddi12.
439.
41HarrimanVungal12.
439.
41VVPrasad12.
439.
41AmitPathak0.
89-MuraliMohanaRaoMokkapati2.
803.
31SujaniVasireddi2.
04-AVenkaramana1.
121.
49*Remunerationisinclusiveofprovidentfund,gratuityandleaveencashmentDr.
SPVasireddi-0.
92HarrimanVungal0.
180.
16SireeshChandraVungal5.
904.
19SudheshnaVungal1.
281.
51SatyaSreenivasNeerukonda5.
974.
19PraveenaVasireddi1.
741.
59SujaniVasireddi-1.
40(B).
Detailsoftransactionswithrelatedpartyintheordinarycourseofbusiness:6529AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019(Allamountsin.
Millionsunlessotherwisestated)ParticularsFortheyearended31.
03.
2019Fortheyearended31.
03.
2018(iv)SittingFeestoKMP-IndependentDirectors(v)DividendsPaid(vi)ServicesreceivedProf.
D.
Balasubramanian0.
070.
13YPrameelaRani0.
130.
05Dr.
SPVasireddi7.
20-HaritaVasireddi0.
34-HarrimanVungal3.
55-VVPrasad2.
93-SireeshChandraVungal0.
22-SudheshnaVungal0.
20-PraveenaVasireddi0.
25-SujaniVasireddi0.
25-RajeswariVungal0.
16-RajyaLakshmiVasireddi0.
08-SwarnalathaVasireddi0.
19-BloomedhaInfoSolutionsLimited5.
105.
58VimtaLabsLimitedParticularsAsat31.
03.
2019Asat31.
03.
2018(i)SecurityDeposits:(ii)DuesPayabletoKMPsandtheirrelatives:(iii)OthersDr.
SPVasireddi-(0.
21)Dr.
SPVasireddi0.
340.
07HaritaVasireddi0.
320.
18HarrimanVungal0.
510.
19VVPrasad0.
520.
15AVenkataramana-0.
05SujaniVasireddi0.
050.
09MuraliMohanaRaoMokkapati-0.
13AmitPathak0.
27-SudheshnaVungal0.
120.
07SatyaSreenivasNeerukonda0.
210.
04PraveenaVasireddi0.
070.
08SireeshChandraVungal0.
220.
24BloomedhaInfoSolutionsLimited0.
520.
35(C).
Balancepayable/(receivable)0ParticularsFortheyearended31.
03.
2019Fortheyearended31.
03.
2018Employers'ContributiontoProvidentFund25.
1223.
43Employers'ContributiontoEmployeeStateInsurance4.
714.
5739.
Employeebenefitsa)DefinedContributionPlansTheCompanyhasrecognisedthefollowingamountsintheStatementofProfitandLoss:(B)Definedbenefitplans(I)TheCompanyprovidesforgratuitytoemployeesworkinginIndiaasperthePaymentofGratuityAct,1972.
Underthegratuityplan,everyemployeewhohascompletedatleastfiveyearsofservicegetsagratuityondeparture@15daysoflastdrawnsalaryforeachcompletedyearofservice.
Thelevelofbenefitsprovideddependsonthemember'slengthofserviceandsalaryatretirementage.
6629AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019(Allamountsin.
Millionsunlessotherwisestated)ParticularsFortheyearended31.
03.
2019Fortheyearended31.
03.
2018Currentservicecost7.
076.
47Pastservicecost-1.
96NetInterestCost/(Income)ontheNetDefinedBenefitLiability/(Asset)3.
552.
69TotalamountrecognizedintheStatementProfitandLoss10.
6211.
12AmountsrecognisedintheStatementofProfitandLossareasfollows:VimtaLabsLimitedParticularsFortheyearended31.
03.
2019Fortheyearended31.
03.
2018-changeinfinancialassumptions0.
951.
35-experiencevariance(i.
e.
Actualexperiencevsassumptions)4.
896.
22Returnonplanassets,excludingamountrecognisedinnetinterestexpense0.
940.
51ActuariallossesTotalamountrecognisedintheothercomprehensiveincome6.
788.
08AmountsrecognisedinOtherComprehensiveIncomeareasfollowsChangesinpresentvalueofdefinedbenefitobligationrepresentingreconciliationofopeningandclosingbalancesthereofareasfollows:ParticularsAsat31.
03.
2019Asat31.
03.
2018Currentservicecost7.
076.
47InterestExpenseorCost4.
483.
51Re-measurement(orActuarial)(gain)/lossarisingfrom:-changeinfinancialassumptions0.
951.
35-experiencevariance(i.
e.
actualexperiencev/sassumptions)4.
896.
22Pastservicecost-1.
96Benefitspaid(13.
02)(2.
39)Presentvalueofobligationatthebeginningoftheyear60.
9943.
87Presentvalueofobligationattheendoftheyear65.
3660.
99ChangesintheFairValueofPlanAssetsareasfollows:ParticularsAsat31.
03.
2019Asat31.
03.
201812.
6710.
25InvestmentIncome0.
930.
82Employer'sContribution3.
504.
50BenefitsPaid(13.
02)(2.
39)Returnonplanassets,excludingamountrecognisedinnetinterestexpense(0.
94)(0.
51)FairValueofPlanAssetsasatthebeginningoftheyearFairValueofPlanAssetsasattheendoftheyear3.
1412.
67Thenetliabilitydisclosedaboverelatestofundedandunfundedplansareasfollows:ParticularsAsat31.
03.
2019Asat31.
03.
2018Presentvalueofdefinedbenefitobligation(65.
36)(60.
99)Fairvalueofplanassets3.
1412.
67NetAsset/(Liability)(62.
22)(48.
32)6729AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019(Allamountsin.
Millionsunlessotherwisestated)VimtaLabsLimitedTheassumptionsusedinaccountingforthegratuityplanaresetoutasbelow:ParticularsAsat31.
03.
2019Asat31.
03.
2018Discountrate(perannum)6.
95%7.
35%Salarygrowthrate(perannum)4.
00%4.
00%Mortalityrate(%ofIALM06-08)100.
00%100.
00%Normalretirementage(asperCompany'spolicy)60and7060and70Attrition/Withdrawalrate(perannum)20%20%Theestimatesoffuturesalaryincreaseconsideredinactuarialvaluationtakenintoaccountofinflation,seniority,promotionsandotherrelevantfactorssuchassupplyanddemandintheemploymentmarket.
TheCompanyevaluatestheseassumptionsannuallybasedonitslong-termplansofgrowthandindustrystandards.
ImpactondefinedbenefitobligationParticularsAsat31.
03.
2019Asat31.
03.
20181%increase63.
0458.
951%decrease67.
8663.
181%increase67.
7763.
101%decrease63.
0858.
9750%increase66.
0961.
8650%decrease62.
5658.
1210%increase65.
3761.
0010%decrease65.
3560.
98DiscountRateSalaryGrowthRateAttritionRateMortalityRateThesensitivityanalysesabovehavebeendeterminedbasedonamethodthatextrapolatestheimpactondefinedbenefitobligationasaresultofreasonablechangesinkeyassumptionsoccurringattheendofthereportingperiod.
Throughitsdefinedbenefitplans,theCompanyisexposedtoanumberofrisks,themostsignificantofwhicharedetailedbelow:Theplanliabilitiesarecalculatedusingadiscountratesetwithreferencetocurrentinvestmentpatternsintheeconomy;ifplanassetsunderperformthisyield,thiswillcreateadeficit.
Theplanassetinvestmentsaresubjecttointerestraterisk.
TheCompanyhasariskmanagementstrategywheretheaggregateamountofriskexposureismaintainedatafixedrange.
Anydeviationsfromtherangearecorrectedbyre-balancingtheinvestments.
TheCompanyintendstomaintaintheinvestmentpatterninthecontinuingyears.
Adecreaseinbondyieldswillincreaseplanliabilities,althoughthiswillbepartiallyoffsetbyanincreaseinthevalueoftheplans'bondholdings.
Thedefinedbenefitobligationistoprovidebenefitsforthelifeofthemember,soincreasesinlifeexpectancywillresultinanincreaseintheplans'liabilities.
Thisisparticularlysignificantwhereinflationaryincreasesresultinhighersensitivitytochangesinlifeexpectancy.
Riskexposure(a)Assetvolatility:(b)Changesinbondyields:(c)Lifeexpectancy:Thefollowingcontributionsandexpectedun-discountedfuturebenefitpayments:DefinedbenefitliabilityandemployercontributionsParticularsAsat31.
03.
20190-1Year14.
392-5Years46.
546-10Years17.
75Morethan10Years8.
916829AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019(Allamountsin.
Millionsunlessotherwisestated)VimtaLabsLimitedTheweightedaveragedurationofthedefinedbenefitplanobligationattheendofthereportingperiodis3years(31March2018:3years).
(ii)TheCompanyprovidesforaccumulationofcompensatedabsencesbycertaincategoriesofitsemployees.
Theseemployeescancarryforwardaportionoftheirunutilisedcompensatedabsencesandutilise/encashtheminfutureperiodsaspertheCompany'spolicy.
TheCompanyrecordsaliabilityforcompensatedabsencesintheperiodinwhichtheemployeerenderstheservicesthatincreasesthisentitlement.
40DisclosuresunderMicro,SmallandMediumEnterprisesDevelopmentAct,2006[MSMEDAct]ParticularsAsat31.
03.
2019Asat31.
03.
2018(a)Amountremainingunpaidtoanysupplierattheendofeachaccountingyear:PrincipalInterest(b)Theamountofinterestpaidbythebuyerintermsofsection16oftheMSMEDAct,alongwiththeamountofthepaymentmadetothesupplierbeyondtheappointeddayduringeachaccountingyear.
(c)Theamountofinterestdueandpayablefortheperiodofdelayinmakingpayment(whichhavebeenpaidbutbeyondtheappointeddayduringtheyear)butwithoutaddingtheinterestspecifiedundertheMSMEDAct.
(d)Theamountofinterestaccruedandremainingunpaidattheendofeachaccountingyear.
(e)Theamountoffurtherinterestremainingdueandpayableeveninthesucceedingyears,untilsuchdatewhentheinterestduesaboveareactuallypaidtothesmallenterprise,forthepurposeofdisallowanceofadeductibleexpenditureundersection23oftheMSMEDAct.
Total019.
25---19.
25---------Note:TheMicro,SmallandMediumenterpriseshavebeenidentifiedbytheManagementonthebasisofinformationavailablewiththeCompanyandhavebeenrelieduponbytheauditors.
41SegmentReporting42CapitalmanagementTheManagingDirectorofthecompanyhasbeenidentifiedastheChiefOperatingDecisionMaker(CODM)asrequiredbyIndAS108OperatingSegments.
TheCompanyisinthebusinessofprovidingcontractresearchandtestingservices.
TheManagingDirectorreviewstheoperationsoftheCompanyasoneoperatingsegmenttakingintoaccountthenatureofthebusiness,theorganizationstructure,internalreportingstructureandriskandrewards.
Hencenoseparatesegmentinformationhasbeenfurnishedherewith.

TheCompany'sobjectiveswhenmanagingcapitalaretosafeguardtheirabilitytocontinueasagoingconcern,sothattheycancontinuetoprovidereturnsforshareholdersandbenefitsforotherstakeholders,andmaintainanoptimalcapitalstructuretoreducethecostofcapital.
Inordertomaintainoradjustthecapitalstructure,theCompanymayadjusttheamountofdividendspaidtoshareholders,returncapitaltoshareholders,issuenewsharesorsellassetstoreducedebt.
TheCompanymonitorscapitalonthebasisofthefollowinggearingratioi.
e.
Netdebt(totalborrowingsnetofcashandcashequivalents)dividedbytotalequity(asshowninthebalancesheet):ParticularsAsat31.
03.
2019Asat31.
03.
2018EquityShareCapital44.
2244.
22OtherEquity1,671.
301,476.
31(i)Long-termborrowings115.
68194.
63Short-termborrowings52.
42131.
48Otherfinancialliabilities(currentmaturitiesoflong-termborrowings)90.
1673.
44Less:CashandCashequivalents26.
6719.
95(ii)Overallfinancing(iii)=(i)+(ii)1,947.
111,900.
13(ii)/(iii)TotalEquity1,715.
521,520.
53TotalDebt231.
59379.
60Gearingratio11.
89%19.
98%Inordertoachievethisoverallobjective,theCompany'scapitalmanagement,amongstotherthings,aimstoensurethatitmeetsfinancialcovenantsattachedtotheinterest-bearingloansandborrowingsthatdefinecapitalstructurerequirements.
Breachesinmeetingthefinancialcovenantswouldpermitthebanktoimmediatelycallloansandborrowings.
Therehavebeennobreachesinthefinancialcovenantsofanyinterest-bearingloansandborrowinginthecurrentperiod.
Furthertherewerenochangesweremadeintheobjectives,policiesorprocessesformanagingcapitalfortheyearsendedMarch31,2019.
6929AnnualReport2018-19thNotesformingpartoftheFinancialStatementsfortheyearendedMarch31,2019(Allamountsin.
Millionsunlessotherwisestated)VimtaLabsLimited43.
RevenuefromContractswithcustomers(i)Disaggregationofrevenue(ii)TradeReceivablesandContractBalancesTheCompanyhasadoptedIndAS115"RevenuefromContractswithCustomers"effectiveApril1,2018usingthecumulativecatch-uptransitionmethod,appliedtocontractsthatwerenotcompletedasatApril1,2018.
Inaccordancewiththecumulativecatch-uptransitionmethod,thecomparativeshavenotbeenretrospectivelyadjusted.
TheCompanybelievesthattherearenodisaggregationofrevenuebasedonitsnature,amount,timinganduncertaintyofitsrevenuesandcashflows.
TheCompanyclassifiestherighttoconsiderationinexchangefordeliverablesaseitherareceivableorasunbilledrevenue.
Invoicinginexcessofearningsareclassifiedasunearnedrevenue.
Thefollowingtableprovidesinformationaboutreceivables,contractassetsandcontractliabilitiesfromcontractswithcustomers:ParticularsAsat31.
03.
2019GrossTradeReceivables620.
51Contractassets(Unbilledrevenue)andContractliabilities(Unearnedrevenue)(6.
46)TradeReceivables(net)614.
05ParticularsFortheyearended31.
03.
2019Balanceatthebeginning-Add:Revenuerecognizedduringtheperiod2,079.
60Less:Invoicedduringtheperiod2,086.
06Balanceattheend(6.
46)Thefollowingtabledisclosesthemovementincontractassetsandliabilitiesbalances:(iii)Performanceobligationsandremainingperformanceobligations44TheremainingperformanceobligationdisclosureprovidestheamountofthetransactionpriceyettoberecognizedasattheendofthereportingperiodandanexplanationastowhentheCompanyexpectstorecognizetheseamountsinrevenue.
ApplyingthepracticalexpedientasgiveninIndAS115,theCompanyhasnotdisclosedthevalueofremainingperformanceobligationsfor:(i)contractswithanoriginalexpecteddurationofoneyearorlessand(ii)contractsforwhichtheCompanyrecognisesrevenueattheamounttowhichithastherighttoinvoiceforservicesperformed(typicallythosecontractswhereinvoicingisontimeandmaterialbasis).