Choksi Laboratories Limited ("the Company") was incorporated on 29/01/1993 under the Companies Act, 1956.The Company is engaged in the business of Testing & Analytical Services.The Company's equity shares are listed at BSE.

1. The Company has only one class of shares i.e. equity shares with equal rights for dividend and repayment. Each holder of the shares is entitled to one vote per share.Dividend on equity shares whenever proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting.

2. The Term Loans from Axis Bank is secured by hypothecation of Indore & Goa fixed assets. The above loans are also personally guaranteed by the directors Mr. Sunil Choksi & Mr. Vyangesh Choksi. Loan from Bank of India is secured by Freehold Land at Kumedi in Indore.

3. All unsecured Loans are also personally guaranteed by the director Mr. Vyangesh Choksi.

4. There are no defaults as on the Balance Sheet date in repayment of the above loans and interest thereon.

5. Working Capital Loans are secured by joint hypothecation of running stocks of consumable and all Book debts, both present and future alongwith Indore and Goa Fixed Assets.

*The above loans are also personally guaranteed by the directors Mr. Sunil Choksi & Mr.Vyangesh Choksi.

6. Segmental Reporting :

The Company is engaged in the sole segment of Analysis and Testing. There are, therefore, no separate segments within the Company as defined by AS-17 (Segmental Reporting) issued by the ICAI.

7. Related Party Disclosures :

Relationships (Related party relationships are as identified by the Company and relied upon by the Auditors)

8. Related Parties

(a) Individual having control & Key Management Personnel

Mr. Sunil Choksi               Managing Director

Mrs. Stela Choksi              Whole Time Director

(b) Relatives of KMP Mrs.Neeta Shah D. G Choksi HUF Mrs. Khyati Choksi

9. Contingent liabilities not provided for in respect of :

a) Guarantees issued by Bank on behalf of the Company Rs.1478612/-(Previous year Rs. 1,34,264).

b) An amount of Rs.32,04,212/- has been shown as recoverable from Commissioner of Customs (EPCG) under current assets.This amount was forfieted by the said authority during FY 2012-13 . The Company has timely fulfilled all export obligations & is under the process of recovering the same from the said authority.

10. Estimated amount of Contracts remaining to be executed on Capital Account and not provided for (net of advances) Rs. Nil (Previous year Rs. Nil).

11. The previous year figures have been regrouped/ reclassified, wherever necessary to confirm to current year presentation.