s?'Sw ord & Shield Pharmo Ltd. - Bombay Stock Exchange · 2018. 10. 11. · s?'Sword & Shield...

·.::::::::::-=='�.s?'Sword & Shield Pharmo Ltd.

Security Code: 531637 Security ID: SWORDNSH

To, The Listing Compliance Department, BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001

CIN: L24231GJ1995PLC024809

11th October, 2018

Ref:� Regulation 34(1) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 Subject: Annual Report for the Financial Year 2017-18

Dear Sir/ Madam,

Pursuant to the provisions of Regulation 34(1) of the Securities and Exchange Board of India (Listing Obligations, and Disclosure Requirements) Regulations, 2015, please fmd enclosed copy of Annual Report of the Company for the Financial Year 2017-18, duly approved and adopted at the Twenty Third (23rd) Annual General Meeting (AGM) of the Company held on Saturday, September 29, 2018. This is for you information and record

;

You are requested to take the same on record.

Thanking you,

Yours Faithfully,

For, SWORD AND SH��ri��J.

PoojaKadam Company Secreta (ACS-43019)

Registered Office: 55, World Business House, Near Pari mal Garden, Ambawadi, Ahmedabad- 380 006. Website: www.swordnshieldpharma.com I Email: [email protected]

Phone: +91 98250 79759

SWORD & SHIELD PHARMA LIMITED

Annual Report 2017-2018

CORPORATE INFORMATION BOARD OF DIRECTORS Mr. Pravinbhai Patel - Chairman & Managing Director Mrs. Jyotsnaben Patel - Executive Woman Director Mr. Jayeshkumar Patel - Independent Director Mr. Dilipkumar Patel - Independent Director Mr. Paresh Patel - Independent Director Mr. Kanjibhai Chaudhary - Independent Director COMMITTEES OF THE BOARD AUDIT COMMITTEE Mr. KanjibhaiChaudhary - Chairman Mr. Jayeshkumar Patel - Member Mr. Pravinbhai Patel - Member NOMINATION AND REMUNERATION COMMITTEE Mr. Dilipkumar Patel - Chairman Mr. Jayeshkumar Patel - Member Mr. KanjibhaiChaudhary - Member STAKEHOLDERS’ GRIEVANCES AND RELATIONSHIP COMMITTEE Mr. Jayeshkumar Patel - Chairman Mr. Dilipkumar Patel - Member Mr. KanjibhaiChaudhary - Member AUDITORS B. K. Patel & Co. Chartered Accountants SECRETARIAL AUDITOR CONTENTS PAGE Mr. Anand Lavingia Notice 1 Director’s Report 8 COMPANY SECRETARY & COMPLIANCEOFFICER

Management Discussion and Analysis 29 Mrs. Pooja Kadam Auditors’ Report 32 REGISTERED OFFICE Balance Sheet 39 55, World Business House, Profit & Loss Account 40 Near Parimal Garden, Ambawadi, Cash Flow Statement 42 Ahmedabad – 380 006 Accounting Policies and Notes to

accounts 48 INVESTOR QUERIES Attendance Slip & Proxy Form 54

[email protected] Electronic voting particulars

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Important Communication to Members The Ministry of Corporate Affairs has taken a "Green Initiative in the Corporate Governance" by allowing paperless compliances by the companies and has issued circulars stating that service of notice/documents including Annual Report can be sent by e-mail to its members. To support this green initiative of the Government in full measure, members who have not registered their e-mail addresses, so far, are requested to register their e-mail addresses, in respect of electronic holdings with the Depository through their concerned Depository Participants, Members who hold shares in physical form are requested to register their e-mail addresses with the company’s R &T agent.

2017‐2018 NoticeofTwentyThirdAnnualGeneralMeeting

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SWORD AND SHIELD PHARMA LIMITED CIN: L24231GJ1995PLC024809

Registered Office: 55, World Business House, Near Parimal Garden, Ambawadi, Ahmedabad – 380 006

Website: www.swordnshieldpharma.com | e-mail: [email protected] Contact: +91 98250 79759

NOTICEisherebygiventhattheTwentyThird(23rd)AnnualGeneralMeeting(AGM)oftheMembersofSword&ShieldPharmaLimitedwillbeheldonSaturday,September29,2018at10.00A.M.ISTattheRegisteredOfficeoftheCompanysituatedat55,WorldBusinessHouse,NearParimalGarden,Ambawadi,Ahmedabad–380006,totransactthefollowingbusinesses: OrdinaryBusiness:1. Toreceive,consider,approveandadopttheAuditedFinancialStatementsoftheCompanyfortheFinancial

YearendedMarch31,2018togetherwithReportsoftheDirectorsandAuditorsthereon.2. ToappointaDirector inplaceofMr.PravinbhaiPatel (DIN:01877446),whoretiresbyrotationandbeing

eligible,offershimselfforreappointment.3. ToratifytheappointmentofAuditors

ToratifytheappointmentofM/s.B.K.Patel&Co.,CharteredAccountants(FirmRegistrationNo.112647W)astheAuditorsoftheCompanytoholdofficefromtheconclusionofTwentyThirdAnnualGeneralMeetinguntiltheconclusionoftheTwentyFourthAnnualGeneralMeetingandtoauthorizetheBoardofDirectorsorCommitteethereoftofixtheirremuneration,inconsultationwiththeAuditors.

Toconsiderand,ifthoughtfit,topasswithorwithoutmodification(s),thefollowingasan“ORDINARYRESOLUTION”:“RESOLVEDTHAT,pursuanttotheprovisionsofSection139,142andsuchotherapplicableprovisionsoftheCompanies Act, 2013 and relevant rules thereof (including statutory modification(s), enactment(s) or re‐enactment(s)thereof, forthetimebeinginforce),pursuanttotherecommendationoftheAuditCommitteeand that of theBoard ofDirectors andpursuant to the approval of theMembers at theTwentiethAnnualGeneralMeetingheldonSeptember30,2015,theconsentoftheMembersoftheCompanybeandisherebyaccorded to ratify theappointmentofM/s.B.K.Patel&Co.,CharteredAccountants (FirmRegistrationNo.112647W),asAuditorsoftheCompany,toholdofficefromtheconclusionofTwentyThirdAnnualGeneralMeetinguntiltheconclusionoftheTwentyFourthAnnualGeneralMeetingoftheCompanyataremunerationtobedecidedbytheBoardofDirectorsorCommitteeoftheBoardinconsultationwiththeAuditorsoftheCompany”.

For&onbehalfoftheBoardDate:5thSeptember,2018For,SWORDANDSHIELDPHARMALIMITEDPlace:Ahmedabad (Sd/‐)

POOJAKADAMCompanySecretary&ComplianceOfficer


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Notes:1. Amemberentitledtoattendandvoteatthemeetingisentitledtoappointaproxytoattendandvoteonly

onpollinsteadofhimself/herselfandsuchproxyneednotbeamemberofthecompany.PursuanttotheprovisionsofSection105ofTheCompaniesAct,2013apersoncanactasproxyonbehalfofamemberornumberofmembersnotexceedingfifty(50)andholdinginaggregatenotmorethanten(10)percentofthetotalsharecapitalofthecompanycarryingvotingrights.Memberholdingmorethanten(10)percentofthetotalsharecapitalofthecompanycarryingvotingrightsmayappointasinglepersonasproxyandsuchpersonshallnotactasproxy foranyothermember.The instrumentappointingproxyasper theformatincludedintheAnnualReportshouldbelodgedwiththeCompanyatitsRegisteredOfficenotlessthan48hoursbeforethecommencementofthemeetingi.e.by10.00amon27thSeptember,2018.

2. CorporateMembersintendingtosendtheirauthorizedrepresentativestoattendtheAGMarerequestedto sendaduly certifiedcopyof theirBoardResolutionauthorizing their representatives toattendandvoteattheAGM.

3. IncaseofjointholdersattendingtheMeeting,onlysuchjointholderwhoishigherintheorderofnamewillbetitledtovote.

4. Members/Proxies/AuthorizedRepresentativesshouldbring theenclosedAttendanceSlips,duly filledin,forattendingtheMeeting.CopiesoftheAnnualReportorAttendanceSlipswillnotbedistributedattheMeeting.MemberswhoholdsharesindematerializedformarerequestedtowritetheirClientIDandDP IDNosand thosewhohold shares inphysical formare requested tomention their foliono. in theattendanceslipforattendingthemeeting.

5. PursuanttoSection91oftheCompaniesAct,2013,theRegisterofMembersandShareTransferBooksofthe Companywill remain closed from Saturday, 22 September 2018 to Saturday, 29 September 2018(boththedaysinclusive).

6. TheAnnualReportdulycirculatedtothemembersoftheCompanyshallbeavailableonthewebsiteoftheCompanywww.swordnshieldpharma.comShareholdersarerequestedtobringtheircopiesofAnnualReporttotheAGM.

7. AllShareholdersarerequestedtodematerializetheirshareholdingimmediatelyasthesharesaretobetradedcompulsorilyindematformonly.

8. Members holding shares in physical mode are requested to register their email‐id’s, with MCS ShareTransferAgent Limited, theRegistrar and Share transfer agent of the Company andmembers holdingshares in demat mode are requested to register their email id’s with their respective DepositoryParticipant(DPs)incasethestillisnotregistered.IfthereisanychangeintheemailID’salreadyregisteredwiththeCompany,membersarerequestedtoimmediatelynotifysuchchangetotheRegistrarandSharetransferagentoftheCompanyinrespectofsharesheldby theminphysicalmodeandtotheirrespectiveDepositoryParticipants incaseofsharesheldindematmode.

9. Amemberdesirousofseekinganyinformationasregardstothebusinesstobetransactedatthemeetingarerequestedtoforwardhis/herquerytotheCompanyatleastsevenworkingdayspriortothemeeting,sothattherequiredinformationcanbemadeavailableatthemeeting.

10. GreenInitiative:Intermsofsection101and136oftheCompaniesAct2013readtogetherwiththerulesmadethereunder,thecopyoftheAnnualReportincludingFinancialStatements,Boardsreportetc.andthisNoticearebeingsentbyelectronicmode,tothosememberswhohaveregisteredtheiremailidswiththeir respective depository participants or with the share transfer agent of the Company, unless anymemberhas requested for aphysical copyof the same. In case youwish to get aphysical copyof theAnnualReport,[email protected]/[email protected]/FolioandClientID.

11. TheSecuritiesandExchangeBoardofIndia(SEBI)hasmandatedthesubmissionofPermanentAccountNumber(PAN)byeveryparticipantinsecuritiesmarket.Membersholdingsharesinelectronicformare,therefore,requestedtosubmitthePANtotheirDepositoryParticipantswithwhomtheyaremaintaining


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their demat accounts. Members holding shares in physical form can submit their PAN details to theCompany’sR&Tagent.AllthemembersattendingtheAnnualGeneralMeetingarerequestedtobringtheirPhotoID(preferablyPANCard)issuedbyanyauthority.

12. All thedocumentsreferredto intheaccompanyingNoticeandExplanatoryStatementareavailable forinspectionat theRegisteredOfficeof theCompanyduringbusinesshoursonallworkingdays (exceptSundaysandPublicholidays)andwillalsobemadeavailableatthevenueoftheTwentyThirdAGM.

13. The Register of Directors’ and Key Managerial Personnel and their Shareholding maintained undersection170oftheCompaniesAct2013,theRegisterofContractsorArrangementsinwhichtheDirectorsareinterestedundersection189oftheCompaniesAct,2013willbeavailableforinspectionattheAGM

14. Aroutemapshowingdirectionstoreachthevenueof23rdAnnualGeneralMeetingisgivenattheendoftheNoticeaspertherequirementsofSecretarialStandard2onGeneralMeetings.

15. Members are requested to send all communications relating to shares (Physical and Demat) to theCompany’sRegistrarandShareTransferAgentatM/s.MCSShareTransferAgentLimited,101,ShatdalComplex,OppositeBataShowroom,AshramRoad,Ahmedabad‐380009

GENERALINSTRUCTIONSFORVOTINGELECTRONICALLY:16. Incompliancewith theprovisionsofSection108of theCompaniesAct,2013readwithRule20of the

Companies (Management and Administration) Rules, 2014 (as amended) and Regulation 44 of SEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,theCompanyispleasedtoprovideits members, facility to exercise their right to vote at the 23rd Annual General Meeting (AGM) byelectronicmeans and the businessmay be transacted through e‐voting services provided byNationalSecuritiesDepositoryLimited(NSDL)

17. The facility for voting through ballot paper shall be made available at the AGM and the membersattendingthemeetingwhohavenotcasttheirvotebyremotee‐votingshallbeabletoexercisetheirrightatthemeetingthroughballotpaper.

18. Thememberswhohavecasttheirvotebyremotee‐votingpriortotheAGMmayalsoattendtheAGMbutshallnotbeentitledtocasttheirvoteagain.Ifamembercastsvote(s)bybothmodes,thenvotingdonethroughremotee‐votingshallprevailandvote(s)castatthemeetingshallbetreatedas“INVALID”

19. Mr.AnandLavingia,PracticingCompanySecretary(MembershipNo.ACS26458,COP11410)hasbeenappointed by theBoard ofDirectors as the Scrutinizer to scrutinize the e‐votingprocess in a fair andtransparentmanner.

20. TheScrutinizer shallwithinaperiodnot exceeding three (3)workingdays from theconclusionof themeeting,unblock thevotes in thepresenceofat least two (2)witnessesnot in theemploymentof theCompanyandmakeaScrutinizer’sReportofthevotescastinfavouroragainst,ifany,andsubmittotheChairmanoftheCompany.

21. The results declared by the Chairman along with the Scrutinizers Report shall be placed on theCompany’s website www.swordnshieldpharma.com and on the website of NSDL within (3) days ofpassingoftheresolutionsattheAGMoftheCompanyandcommunicatedtotheBSELimitedandwillbeuploadedonwebsiteofStockExchange.

22. A personwhose name is recorded in the register ofmembers or in the register of beneficial ownersmaintainedby thedepositoriesasonthecut‐offdate i.e21stSeptember,2018onlyshallbeentitled toavailthefacilityofremotee‐voting.Aperson,whoisnotamemberasonthecut‐offdate,shouldtreattheNoticeforinformationpurposeonly.

23. IfthememberisalreadyregisteredwithNSDL’se‐votingplatform,thenhecanusehisexistingUserIDandpasswordforcastingthevote(s)throughremotee‐voting.

24. Anyperson,whoacquiressharesoftheCompanyandbecomememberoftheCompanyafterdispatchofthenoticeandholdingsharesasonthecut‐offdatei.e.21stSeptember,2018mayobtaintheloginIDandpasswordbysendingarequesttoevoting@nsdl.co.inorRTA.


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25. The voting period begins onWednesday, 26th September, 2018 at 10.00 am and ends on Friday, 28thSeptember,2018at5.00pm.Duringthisperiodshareholders’oftheCompany,holdingshareseitherinphysicalformorindematerializedform,asonthecut‐offdatei.e.Friday,21stSeptember,2018maycasttheirvoteelectronically.Thee‐votingmoduleshallbedisabledbyNSDLforvotingthereafter.

26. Theprocessandmannerforremotee‐voting:ThewaytovoteelectronicallyonNSDLe‐Votingsystemconsistsof“TwoSteps”whicharementionedbelow:Step1:Log‐intoNSDLe‐Votingsystemathttps://www.evoting.nsdl.com/Step2:CastyourvoteelectronicallyonNSDLe‐Votingsystem.DetailsonStep1arementionedbelow:

1. Visit the e‐Voting website of NSDL. Open web browser by typing the following URL:https://www.evoting.nsdl.com/eitheronaPersonalComputeroronamobile.

2. Once thehomepageofe‐Votingsystem is launched, clickon the icon “Login”which isavailableunder‘Shareholders’section.

3. Anewscreenwillopen.YouwillhavetoenteryourUserID,yourPasswordandaVerificationCodeasshownonthescreen.Alternatively,ifyouareregisteredforNSDLeservicesi.e.IDEAS,youcanlog‐inathttps://eservices.nsdl.com/withyourexistingIDEASlogin.Onceyoulog‐intoNSDLeservicesafterusingyourlog‐incredentials,clickone‐VotingandyoucanproceedtoStep2i.e.castyourvoteelectronically.

4. YourUserIDdetailsaregivenbelow:Mannerofholdingsharesi.e.Demat

(NSDLorCDSL)orPhysicalYourUserIDis:

a)ForMemberswhoholdsharesindemataccountwithNSDL.

8CharacterDPIDfollowedby8DigitClientIDForexample if yourDP ID is IN300***andClient ID is12******thenyouruserIDisIN300***12******.

b)ForMemberswhoholdsharesindemataccountwithCDSL.

16DigitBeneficiaryIDFor example if your Beneficiary ID is 12**************thenyouruserIDis12**************

c) For Members holding shares in PhysicalForm.

EVEN Number followed by Folio Number registeredwiththecompanyFor example if folio number is 001*** and EVEN is101456thenuserIDis101456001***

5. Yourpassworddetailsaregivenbelow:a) Ifyouarealreadyregisteredfore‐Voting,thenyoucanuseryourexistingpasswordtologinandcast

yourvote.b) If you are using NSDL e‐Voting system for the first time, you will need to retrieve the ‘initial

password’whichwascommunicatedtoyou.Onceyouretrieveyour ‘initialpassword’,youneedtoenterthe‘initialpassword’andthesystemwillforceyoutochangeyourpassword.

c) Howtoretrieveyour‘initialpassword’?i. If your email ID is registered in your demat account or with the company, your ‘initial

password’iscommunicatedtoyouonyouremailID.TracetheemailsenttoyoufromNSDLfromyourmailbox.Opentheemailandopentheattachmenti.e.a.pdffile.Openthe.pdffile.Thepasswordtoopenthe.pdffileisyour8digitclientIDforNSDLaccount,last8digitsof


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client ID for CDSL account or folio number for shares held in physical form. The .pdf filecontainsyour‘UserID’andyour‘initialpassword’.

ii. If your email ID isnot registered, your ‘initial password’ is communicated to youonyourpostaladdress.

6. If you are unable to retrieve or have not received the “ Initial password” or have forgotten yourpassword:a) Clickon “ForgotUserDetails/Password?”(Ifyouareholdingshares inyourdemataccountwith

NSDLorCDSL)optionavailableonwww.evoting.nsdl.com.b) PhysicalUserResetPassword?” (Ifyouareholdingshares inphysicalmode)optionavailableon

www.evoting.nsdl.com.c) If you are still unable to get the password by aforesaid two options, you can send a request at

[email protected]/folionumber,yourPAN,yournameandyourregisteredaddress.

7. Afterenteringyourpassword,tickonAgreeto“TermsandConditions”byselectingonthecheckbox.8. Now,youwillhavetoclickon“Login”button.9. Afteryouclickonthe“Login”button,Homepageofe‐Votingwillopen.

DetailsonStep2aregivenbelow:HowtocastyourvoteelectronicallyonNSDLe‐Votingsystem?

1. AftersuccessfulloginatStep1,youwillbeabletoseetheHomepageofe‐Voting.Clickone‐Voting.Then,clickonActiveVotingCycles.

2. After clickonActiveVotingCycles, youwill be able to seeall the companies “EVEN” inwhichyouareholdingsharesandwhosevotingcycleisinactivestatus.

3. Select“EVEN”ofcompanyforwhichyouwishtocastyourvote.4. Nowyouarereadyfore‐VotingastheVotingpageopens.5. Castyourvotebyselectingappropriateoptionsi.e.assentordissent,verify/modifythenumberofshares

forwhichyouwishtocastyourvoteandclickon“Submit”andalso“Confirm”whenprompted.6. Uponconfirmation,themessage“Votecastsuccessfully”willbedisplayed.7. Youcanalsotaketheprintoutofthevotescastbyyoubyclickingontheprintoptionontheconfirmation

page.8. Onceyouconfirmyourvoteontheresolution,youwillnotbeallowedtomodifyyourvote.

GeneralGuidelinesforshareholders

1 Institutionalshareholders(i.e.otherthanindividuals,HUF,NRIetc.)arerequiredtosendscannedcopy(PDF/JPG Format) of the relevant Board Resolution/ Authority letter etc. with attested specimensignatureofthedulyauthorizedsignatory(ies)whoareauthorizedtovote,totheScrutinizerbye‐[email protected]@nsdl.co.in.

2. Itisstronglyrecommendednottoshareyourpasswordwithanyotherpersonandtakeutmostcaretokeepyourpasswordconfidential.Logintothee‐votingwebsitewillbedisableduponfiveunsuccessfulattemptstokeyinthecorrectpassword.Insuchanevent,youwillneedtogothroughthe“ForgotUserDetails/Password?” or “Physical User Reset Password?” option available on www.evoting.nsdl.com toresetthepassword.

3. In caseof anyqueries, youmay refer the FrequentlyAskedQuestions (FAQs) for Shareholders and e‐votingusermanualforShareholdersavailableatthedownloadsectionofwww.evoting.nsdl.comorcallontollfreeno.:1800‐222‐[email protected]


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27. VOTINGATAGMThemembers,whohavenotcast theirvotesbyremotee‐voting,canexercisetheirvotingrightsat theAGMthroughballotpaper.

28. Information as required under Regulation 36(3) of SEBI (Listing Obligations and DisclosureRequirements)Regulations,2015,briefprofileoftheDirectorproposedtobeappointed/reappointedattheAnnualGeneralMeetingisannexedtotheNotice.

For&onbehalfoftheBoard

Date:5thSeptember,2018For,SWORDANDSHIELDPHARMALIMITEDPlace:Ahmedabad

(Sd/‐)POOJAKADAM

CompanySecretary&ComplianceOfficer


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Information as required under Regulation 36 (3) of SEBI (Listing Obligations and DisclosureRequirements) Regulations, 2015, brief profile of the Director proposed to be appointed /reappointedattheAnnualGeneralMeetingisgivenbelow:

NameoftheDirector Mr.PravinbhaiPatelDIN 01877446DateofBirth 15/02/1956Age 62yearsBriefResumeandExpertise Mr. Pravinbhai Patel, a first generation entrepreneur is the

ManagingDirectoroftheCompanysinceFebruary28,1995andheads the Marketing Division of the Company and is having avast experience in the field of Management, Accounting,MarketingofPharmaceutical formulations anddrugsof around30yearsandheisaGraduateofCommerce.

Experience(No.ofyears) 23yearsDateofappointmentontheBoard May30,2015

ShareholdinginSwordandShieldPharmaLimited

229400EquitySharesofINR10/‐ each fullypaidupamountingto4.45%oftheshareholdingoftheCompanyasonMarch31,2018.

DirectorshipinanyotherCompany NIL

RouteMapfortheVenueof23rdAnnualGeneralMeeting

2017‐2018 AnnualReport

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Directors’Report

TotheMembersofSwordandShieldPharmaLimted,TheDirectorsarepleasedtopresenttheTwentyThirdAnnualReportandAuditedStatementofAccountsfortheyearended31stMarch,20181. FINANCIAL AND OPERATIONAL HIGHLIGHTS

(Amount in INR) Particulars 2017-18 2016-17

RevenuefromOperations 2,89,462.00 8,85,768.00 OtherIncome 5,785.00 17,894.00 Profit / (Loss) before Depreciation, Finance Costs,ExceptionalitemsandTaxation

(15,62,024.9) (24,46,008.95)

Less:DepreciationandAmortizationexpense 0.00 0.00 Profit / (Loss) before Finance Costs, Exceptional itemsandTaxation

(15,62,024.9) (24,46,008.95)

Less:FinanceCosts 4,619.00 661.00 Profit/(Loss)beforeExceptionalitemsandTaxation (15,66,643.90) (24,46,669.95) Add:Exceptionalitems 0.00 0.00 ProfitbeforeTaxation (16,06,643.90) (24,53,122.95) Less:TaxExpense 0.00 0.00 DiscontinuingOperations Profit/(Loss)fromdiscontinuingoperations(beforetax) 0.00 0.00 Profit/(Loss)fortheyear (16,06,643.90) (24,53,122.95) EarningsPerShare(EPS) Basic (0.32) (0.48) Diluted (0.32) (0.48)

2. STATEOFCOMPANY’SAFFAIRS

Theyear2017‐18wasanotheryearofcontinuouseffortstoimproveoperatingperformanceandnewinitiativesforSwordandShield.TheRevenue fromOperationswere recordedas INR2.89LakhsalthoughcomparativelylessthanlastyearbuttheCompanyhasreduceditslossesfromINR24.53LakhoflastyeartoINR16.06Lakhforthisyear.TheCompanyisnomoreengagedintheactivityofManufacturingTradingofPharmaceuticalandotheralliedPharmaceuticalProductsasitwasclosedintheyear2015‐16duetoslumpsaleofitsManufacturingUniti.e.FactoryLandandBuilding.SeveraleffortswereundertakentoimprovethemarketingofthePharmaceuticalandotheralliedproductsoftheCompanyonCommissionbasis.TheManagementistakingeverypossiblesteptostreamlineitsoperationsandtoputtheCompanyongrowth.Afteralllegalprocedures,compliancesofseveralacts,andsubsequentfillingsmadewithBSELtd,theCompanyhadreceivedObservationletteron5thMay,2018regardingthedraftschemeofarrangementbetweenSwordandShieldPharmalimitedandPravegCommunicationsLimited.


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3. CHANGEINTHENATUREOFBUSINESS

Companycontinuestooperateonlyinonesegmenti.e.PharmaceuticalsandthusthereisnochangeinthenatureofbusinessoftheCompanyduringtheFinancialYearendedMarch31,2018.

4. DIVIDEND

Inviewofthelossesfortheyearended31stMarch,2018andaccumulatedlosses,theBoardofDirectorsdeferredtheproposalofdeclarationofdividendsforthisyear.5. CHANGESINCAPITALSTRUCTURE

TheAuthorized Share Capital of the Company continues to remainRs. 6,00,00,000, divided into 60,00,000 no.equitysharesofRs.1/‐each.Duringtheyear,theCompanyhadmadecallsonshareholders inrespectofmoneyunpaidontheirsharesthusamounting to increase in the Paid up capital of the Company fromRs. 4,66,19,170 in the year 2016‐17 toRs.5,15,06,000intheyear2017‐18.6. SCHEMEOFAMALGAMATIONANDARRANGEMENT

TheBoardofDirectorsat itsmeetingheldon26thApril,2017hadapproved theSchemeofAmalgamationandArrangementbetweenSword&ShieldPharmaLimited("theTransfereeCompany")andPravegCommunicationsLimited("theTransferorCompany"),underSections230to232oftheCompaniesAct,2013andotherapplicablelaws.7. MATERIALCHANGES&COMMITMENTAFFECTINGTHEFINANCIALPOSITIONOFTHECOMPANYOtherthanthecallsmadeonpartlypaidupsharestherewerenomaterialchangesandcommitmentsaffectingthefinancial position of the Companyduring the year and also no changes have occurred between the end of thefinancialyearandthedateofthisreport.ThepaidupsharecapitaloftheCompanyaftermakingcallsonpartlypaidupsharesstandsasbelow:EQUITYSHARECAPITALISSUED,SUBSCRIBEDANDPAIDUPCAPITALEquitysharesofRs.10/‐each

No.ofshares Amount

Balanceatthebeginningoftheyeari.e.ason1st April,2017Atthebeginningoftheyear‐Fullypaidup 41,73,234 4,17,32,340.00Atthebeginningoftheyear‐Partlypaidup 9,77,366 48,86,830.00Changesintheequitysharecapitalduringtheyear9,77,366 no. of partly paid up shares called during the year andweremadefullypaidup

9,77,366 48,86,830.00Balanceattheendoftheyeari.e.ason31stMarch,2018 51,50,600 5,15,06,000.008. SIGNIFICANT&MATERIALORDERSPASSEDBYTHEREGULATORSORCOURTSORTRIBUNALS

NosignificantormaterialordershavebeenpassedagainsttheCompanybytheRegulators,CourtsorTribunals,whichimpactsthegoingconcernstatusandcompany’soperationsinfuture.


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9. MANAGEMENTDISCUSSIONANDANALYSIS

AdetailedreportontheManagementDiscussionandAnalysis isprovidedasaseparatechapter in thisAnnualReport10. CORPORATEGOVERNANCE

PursuanttoRegulation15(2)ofSEBI(ListingObligationsandDisclosureRequirements)Regulations2015(SEBILODR),theCompanyisnotrequiredtomandatorilycomplywithcertainregulationsofSEBILODRandhencenoseparate report on Corporate Governance is provided in this report, although certain information is providedunderrelevantheading.11. DETAILSOFBOARDOFDIRECTORSANDKEYMANAGERIALPERSONNEL

a) BoardofDirectors:The Board is required to have an appropriate mix of Executive and Independent Directors to maintain itsindependence, and separate its functionsof governance andmanagement. Therefore, Securities andExchangeBoard of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’)mandate that for a Company with an Executive Chairman, at‐least half of the Board should be IndependentDirectors.Thus,theBoardofDirectorsoftheCompanyconsistsofSix(6)DirectorsasonMarch31,2018,whichincludesMr.PravinbhaiPatel,astheManagingDirectoroftheCompany,Mrs.JyotsnabenP.Patel,asanExecutiveDirectorandMr.JayeshkumarPatel,Mr.DilipkumarPatel,Mr.PareshPatelandMr.KanjibhaiChaudharyastheNon‐ExecutiveIndependentDirectorsoftheCompany,whichconstitutes66%oftheBoard’sstrength,althoughmorethantherequirementsoftheCompaniesAct,2013andtheListingRegulations.Further,Mrs. JyotsnabenP.Patel,ExecutiveDirectorof theCompany, isdesignatedasWomanDirector for theCompanyintermsofsecondprovisototheSection149(1)oftheCompaniesAct,2013.Thus,theCompositionofBoardfulfillstheregulatoryrequirements.Mr.PravinbhaiPatel(DIN:01877446),ManagingDirectoroftheCompany,isliabletoretirebyrotationand,beingeligibleoffershimselfforre‐appointmentattheensuingAnnualGeneralMeetingoftheCompany.Further,theCompanyhasreceivednecessarydeclarationfromtheNon‐ExecutiveIndependentDirectorsoftheCompanyunderSection149(6)oftheCompaniesAct,2013andtheprovisionsofSEBI(ListingObligationsandDisclosure Requirements) Regulations, 2015 stating that they meet the criteria of independence as providedthereinb) MeetingsoftheBoardRegularmeetingsoftheBoardareheldatleastonceinaquartertoreviewtheQuarterlyResultsandotheritemson the agenda, and also on the occasion of Annual General Meeting (AGM). Additional Board meetings areconvened to discuss and decide on various business policies, strategies and other businesses. The CompanySecretarydrafts theAgenda foreachmeeting,alongwithexplanatorynotes, inconsultationwith theManagingDirector, and distributes these in advance to the Directors. Every BoardMember can suggest the inclusion ofadditionalitemsintheagenda.DuringtheFinancialYear2017‐18,theBoardofDirectorsoftheCompany,met7(Seventimes)on26April2017,03rdMay,2017,30thMay,2017,06thJuly2017,12thAugust,2017,14thNovember,2017and14thFebruary,2018.


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The gap between two consecutivemeetingswas notmore than one hundred and twenty days as provided insection173oftheAct.TheattendancedetailsoftheBoardMeetingarefollowing: Name of the Director % of Attendance

Mr. Pravinbhai Patel- Chairman and Managing Director DIN: 01877446

100.00

Mrs. Jyotsnaben Patel- Executive Woman Director DIN: 01877469

100.00

Mr. Jayeshkumar Patel- Independent Director DIN: 00473443

66.67

Mr. Dilipkumar Patel- Independent Director DIN: 00473816

66.67

Mr. Paresh Patel- Independent Director DIN: 02352677

66.67

Mr. Kanjibhai Chaudhary-Independent Director DIN: 00505694

66.67

c) KeyManagerialPersonnelMr. Darshil Hiranandani, Company Secretary and Compliance Officer of the Company resigned from the officew.e.f.14thApril,2018andtheBoardconveyeditssincereappreciationforthevaluablecontributionmadebyMr.DarshilHiranandani,totheCompanyastheCompanySecretaryandComplianceOfficeroftheCompany.Ms.PoojaKadam,AssociateCompanySecretarywasthenappointedastheCompanySecretaryandComplianceofficeroftheCompanyw.e.f13thJune,2018.Pursuant to sections 2(51) and 203 of the Companies Act, 2013 read with the Companies (Appointment andRemunerationofManagerialPersonnel)Rules,2014Mr.PravinbhaiPatel,ManagingDirectoroftheCompanyandMs. Pooja Kadam, Company Secretary and Compliance Officer have been designated as the Key ManagerialPersonneloftheCompany.12. PARTICULARSOFEMPLOYEESANDRELATEDDISCLOSURES

Thedetailsasrequiredundersection197(12)oftheCompaniesAct,2013,readwithRule5(2)oftheCompanies(AppointmentandRemunerationofManagerialPersonnel),2014isnotapplicableasthereisnosuchemployeeintheCompanyemployedthroughoutthefinancialyearwithsalaryaboveINR102LakhPerAnnumoremployedpartofthefinancialyearwithaveragesalaryaboveINR8.5LakhPerMonth.Further, there is no employee employed throughout the Financial year or part thereof,whowas in receipt ofremunerationofinaggregateisinexcessofthatdrawnbytheManagingDirectororWholetimeDirectororManagerandholdsbyhimselforalongwithhisspouseanddependentchildren,notlessthanTwoPercent(2%)oftheEquitySharesoftheCompany.


12

13. INFORMATIONOFCOMMITTEEANDITSMEETINGSCurrently,theBoardhasthree(3)Committees:i. AuditCommittee;ii. NominationandRemunerationCommitteeandiii. Stakeholders’GrievancesandRelationshipCommittee

Sr.No. NameoftheDirector AuditCommittee Nominationand

RemunerationCommittee

Stakeholders’GrievancesandRelationshipCommittee

1. Mr.PravinbhaiPatel 2. Mrs.JyotsnabenPatel3. Mr.JayeshkumarPatel 4. Mr.DilipkumarPatel 5. Mr.PareshPatel6. Mr.KanjibhaiChaudhary

Chairman Member

i. AuditCommitteeOurAuditCommitteecomprisedof3DirectorsasonMarch31,2018:a) KanjibhaiChaudhary ‐ Chairmanb) JayeshkumarPatel ‐ Memberc) PravinbhaiPatel ‐ MemberThepastCompanySecretaryandComplianceOfficerMr.DarshilHiranandani,actedastheSecretarytotheAuditCommittee.AuditCommitteeMeetingsandAttendance:TheAuditCommitteeMeetingwasheld5(Five)timesduringtheyearendedMarch31,2018.Thesewereheldon30thMay,2017,12thAugust,2017,14thNovember,2017and14thFebruary,2018.TheattendancedetailsoftheAuditCommitteemeetingarefollowing:

NameoftheDirector %ofattendance

Mr.KanjibhaiChaudhary 100.00Mr.JayeshkumarPatel 100.00Mr.PravinbhaiPatel 60.00


13

ii. NominationandRemunerationCommitteeOurNominationandRemunerationCommitteecomprisedof3DirectorsasonMarch31,2018:a) DilipkumarPatel ‐ Chairmanb) JayeshkumarPatel ‐ Memberc) KanjibhaiChaudhary ‐ MemberTherewasnoconstitutionintheNominationandRemunerationCommitteeduringtheyear2017‐18.The past Company Secretary and Compliance Officer Mr. Darshil Hiranandani, acted as the Secretary to theNominationandRemunerationCommittee.NominationandRemunerationCommitteeMeetingsandAttendance:TheNominationandRemunerationCommitteeMeetingwasheld4(Four)timesduringtheyearendedMarch31,2018.Thesewereheldon30thMay,2017,12thAugust,2017,14thNovember,2017and14thFebruary,2018


Mr.DilipkumarPatel 100.00Mr.JayeshkumarPatel 100.00Mr.KanjibhaiChaudhary 100.00

iii. Stakeholders’GrievancesandRelationshipCommitteeOurStakeholders’GrievancesandRelationshipCommitteecomprisedof3DirectorsasonMarch31,2018:a) JayeshkumarPatel ‐ Chairmanb) DilipkumarPatel ‐ Memberc) KanjibhaiChaudhary ‐ MemberTherewasnoconstitutioninStakeholders’GrievancesandRelationshipCommitteeduringtheyear2017‐18.The past Company Secretary and Compliance Officer Mr. Darshil Hiranandani, acted as the Secretary to theNominationandRemunerationCommitteeStakeholders’GrievancesandRelationshipCommitteeMeetingsandAttendance:The Stakeholders’ Grievances and Relationship Committee Meeting was held 4 (Four) during the year endedMarch31,2018.Thesewereheldon30thMay,2017,12thAugust,2017,14thNovember,2017and14thFebruary,2018.TheattendancedetailsoftheStakeholders’GrievancesandRelationshipCommitteemeetingarefollowing:


Mr.JayeshkumarPatel 100.00Mr.DilipkumarPatel 100.00Mr.KanjibhaiChaudhary 100.00


14

ThedetailsofComplaintsduringthefiscalendedonMarch31,2018areasfollows:NumberofComplaintsPendingbeforetheFiscalYear2017‐18

NumberofComplaintsreceivedduringtheFiscalYear2017‐18

NumberofComplaintsResolvedduringtheFiscalYear2017‐18

NumberofComplaints

pendingattheendoftheFiscalMarch

31,2018Nil(0) Nil(0) Nil(0) Nil(0)

14. DIRECTORS’RESPONSIBILITYSTATEMENTPursuant toSection134(3)(c)of theCompaniesAct,2013, theDirectors to thebestof theirknowledgeherebystateandconfirmthat:a) inthepreparationoftheannualaccounts,theapplicableaccountingstandardshadbeenfollowedalongwith

properexplanationrelatingtomaterialdepartures;b) thedirectorshadselectedsuchaccountingpoliciesandappliedthemconsistentlyandmadejudgmentsand

estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of thecompanyattheendoftheFinancialYearandoftheprofit/(loss)ofthecompanyforthatperiod;

c) thedirectorshadpreparedtheannualaccountsonagoingconcernbasis;d) the internal financial controls to be followed by the Companywere laid down and such internal financial

controlswereadequateandwereoperatingeffectively;ande) thedirectorshaddevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsand

thatsuchsystemswereadequateandoperatingeffectively.15. NOMINATION AND REMUNERATION POLICY OF DIRECTORS, KEY MANAGERIAL PERSONNEL AND

OTHEREMPLOYEESInadherenceofsection178(1)oftheCompaniesAct,2013,theBoardofDirectorsoftheCompany,approvedapolicy on directors’ appointment and remuneration including criteria for determining qualifications, positiveattributes,independenceofadirectorandothermattersprovidedu/s178(3),basedontherecommendationsoftheNominationandRemunerationCommittee.Thebroadparameterscoveredunder thePolicyare–CompanyPhilosophy, Guiding Principles, Nomination of Directors, Remuneration of Directors, Nomination andRemunerationof theKeyManagerialPersonnel (Other thanManaging/Whole‐timeDirectors),Key‐ExecutivesandSeniorManagementandtheRemunerationofOtherEmployees.The Company’s Policy relating to appointment of Directors, payment of Managerial remuneration, Directors’qualifications,positiveattributes,independenceofDirectorsandotherrelatedmattersasprovidedunderSection178(3) of the Companies Act, 2013 is available at the website of the Company viz.www.swordnshieldpharma.com.16. PERFORMANCEEVALUATIONMeetingtherequirementsofthestatuteandconsideringBoardPerformanceEvaluationasanimportantstepforaBoardtotransittoahigherlevelofperformance,theNominationandRemunerationCommitteehaslaiddownacomprehensiveframeworkforcarryingouttheevaluationsprescribedintheCompaniesAct,2013andtheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.


15

The frameworkwas developed to give all Boardmembers an opportunity to evaluate and discuss theBoard’sperformance openly from multiple perspectives and enhance governance practices within the Board. Theframeworkdescribestheevaluationcoverageandtheprocessthereof.I. PerformanceEvaluationoftheBoardandCommittees:In respect of the Financial Year ended March 31, 2018, the Board conducted its self‐evaluation, that of itsCommittees and all of its individual Members. Some of the parameters which were taken into account whileconductingBoardevaluationwere:BoardCompositionintermsofitssize,diversity;Boardprocessesintermsofcommunication;Disclosureofinformation.TheevaluationofeachoftheBoardCommitteesweredoneonparameterssuchaswhetherkeyitemsdiscussedintheCommitteearesuitablyhighlightedtotheBoard,whetherCommitteeeffectivelyperformssupportfunctionstotheBoardinfulfillingitsresponsibilitiesetc.

II. PerformanceEvaluationofNon‐IndependentDirectors:The performance evaluation of the Chairman and the Non‐Independent Directors were carried out by theIndependentDirectors,consideringaspectssuchasEffectivenessasChairman,indevelopingandarticulatingthestrategicvisionof theCompany;Demonstrationofethical leadership,displayingandpromotingthroughouttheCompanyabehaviorconsistentwith thecultureandvaluesof theorganisation;Contributiontodiscussionanddebatethroughthoughtfulandclearlystatedobservationsandopinions;CreationofaperformanceculturethatdrivesvaluecreationwithoutexposingtheCompanytoexcessiverisk.

III. PerformanceEvaluationofIndependentDirectors:Theperformance evaluationof the IndependentDirectorswas carried out by the entireBoard, other than theIndependentDirectorconcerned,takingintoaccountparameterssuchas–refrainfromanyactionthatmayleadto loss of independence; refrain from disclosing confidential information, including commercial secrets,technologies,unpublishedpricesensitiveinformation,salespromotionsplansetc.,supporttoCMDandexecutivedirectors in instilling appropriate culture, values and behaviour in the boardroom and beyond,well informedabouttheCompanyandtheexternalenvironmentinwhichitoperates,moderateandarbitrateintheinterestoftheCompanyasawhole,insituationsofconflictbetweenmanagementandshareholders’interestetc.

IV. EvaluationOutcome:It was assessed that the Board as a whole together with each of its Committees was working effectively inperformanceofitskeyfunctions–ProvidingstrategicguidancetotheCompany,reviewingandguidingbusinessplans and major plans of action, ensuring effective monitoring of the management and overseeing riskmanagementfunction.TheBoard is keptwell informed at all times through regular communication andmeets onceper quarter andmore often during times of rapid growth or if Company needs merit additional oversight and guidance.Comprehensiveagendasaresenttoall theBoardMemberswell inadvancetohelp themprepareandkeepthemeetingsproductive.TheperformanceoftheChairmanwasevaluatedsatisfactoryintheeffectiveandefficientdischargeofhisroleandresponsibilitiesforthedaytodaymanagementofthebusiness,inlinewiththestrategyandlongtermobjectives.


16

TheExecutiveDirectorsandNon‐executiveDirectorsprovidedentrepreneurialleadershipoftheCompanywithinaframeworkofprudentandeffectivecontrols,withabalancedfocusonpolicyformulationanddevelopmentofoperationalprocedures.ItwasacknowledgedthatthemanagementaffordedsufficientinsighttotheBoardinkeepingitup‐to‐datewithkeybusinessdevelopmentswhichwasessentialforeachoftheindividualDirectorstomaintainandenhancetheireffectiveness.17. EXTRACTOFTHEANNUALRETURNTheextractoftheAnnualReturninFormNo.MGT–9formspartoftheBoard’sReportandisannexedherewithasANNEXURE‐I.18. AUDITORSI. StatutoryAuditors:IntermsofthetransitionalprovisionsapplicabletoStatutoryAuditorsundertheCompaniesAct,2013,B.K.Patel& Co., CharteredAccountants (FirmRegistrationNo. 112647W), Ahmedabad were appointed as the statutoryauditorsoftheCompanyforaperiodof5(five)yearsinthe20thAnnualGeneralMeeting(AGM)oftheCompanyheldonSeptember30,2015.Further, as per provisions of Section 139(1) of the Act, the appointment of B. K. Patel & Co., CharteredAccountants(FirmRegistrationNo.112647W),AhmedabadissubjecttoratificationbyMembersateveryAGM.The certificate of eligibility under applicable provisions of the Companies Act, 2013 and corresponding Rulesframedthereunderwasfurnishedbythemtowardsappointmentofa5(Five)yearterm.AsrequiredbytheprovisionsoftheCompaniesAct,2013,theirappointmentshouldberatifiedbymemberseachyear at the AGM. B. K. Patel & Co., Chartered Accountants (Firm Registration No. 112647W), Ahmedabad hasconfirmed that ratification of their appointment, ifmade at the ensuing AGM, shall be in accordancewith theconditionsspecified in theAct.Accordingly, requisiteresolution formspartof theNoticeconveningtheAnnualGeneralMeeting.II. StatutoryAuditors’ReportThe observations of Statutory Auditors in their reports are self‐explanatory and therefore do not call for anyfurthercomments.19. SECRETARIALAUDITORPursuant to the provisions of Section 204 of the Companies Act, 2013 readwith corresponding Rules framedthereunder, Anand Lavingia, Practicing Company Secretary, Ahmedabad was appointed as the SecretarialAuditorsoftheCompanytocarryoutthesecretarialauditfortheyearendingMarch31,2018.SecretarialAuditReportA Secretarial Audit Report given by the Secretarial Auditor in FormNo.MR‐3 is annexedwith this Report asANNEXURE–2.TheBoard in itsMeetingheldon13th June,2018appointedMr.AnandLavingia,PracticingCompanySecretary,AhmedabadastheSecretarialAuditorsoftheCompanyforthefinancialyear2017‐18.


17

20. REPORTINGOFFRAUDSBYAUDITORSDuringtheyearunderreview,theStatutoryAuditorsandSecretarialAuditorhavenotreportedanyinstancesoffraudscommittedintheCompanybyitsOfficersorEmployeestotheAuditCommitteeundersection143(12)oftheCompaniesAct,2013,detailsofwhichneedstobementionedinthisReport.21. SEXUALHARASSMENTOFWOMENATWORKPLACE:Therewerenoincidencesofsexualharassmentreportedduringtheyearunderreview,intermsoftheprovisionsoftheSexualHarassmentofWomenatWorkplace(Prevention,ProhibitionandRedressal)Act,2013andthereareonly1*Womanemployee(Mrs.JyotsnsabenPatel–ExecutiveWomanDirector,whoisholdingthepositionintheTopManagement Level) and therefore therewasno need to constitute an Internal Complaints Committee(ICC).*Ms.PoojaKadamwasappointedastheCompanySecretaryandtheComplianceOfficeroftheCompanyw.e.f13thJune,201822. PARTICULARSOFLOANS,GUARANTEESORINVESTMENTSUNDERSECTION186Details of Loans, Guarantees, Investments and Security covered under the provisions of Section 186 of theCompaniesAct,2013aregiveninthenotestotheFinancialStatement.TheCompanyhasnotgrantedanyLoan,providedGuaranteeorSecuritiesduringtheyearunderreview.23. PARTICULARSOFCONTRACTSORARRANGEMENTSWITHRELATEDPARTIESAlltransactionstobeenteredbytheCompanywithrelatedpartieswillbeintheordinarycourseofbusinessandonanarm’slengthbasis.However,theCompanyhasnotenteredintoanyrelatedpartytransaction,asprovidedinSection188oftheCompaniesAct,2013,withtherelatedparty.Hence,DisclosureasrequiredunderSection188oftheCompaniesAct,2013isnotapplicabletotheCompany.24. GENERALDISCLOSURE:YourDirectors state that theCompanyhasmadedisclosures in this report for the itemsprescribed in section134(3)oftheActandRule8ofTheCompanies(Accounts)Rules,2014totheextentthetransactionstookplaceonthoseitemsduringtheyear.YourDirectorsfurtherstatethatnodisclosureorreportingisrequiredinrespectofthefollowingitemsastherewerenotransactionsontheseitemsduringtheyearunderreview:a. DetailsofAnnualReportonCorporateSocialResponsibilityasCompanyisnotfallingwithinthecriteriaas

prescribedu/s135oftheCompaniesAct,2013;b. IssueofEquityShareswithdifferentialrightsastodividend,votingorotherwise;c. Issueof shares (including sweat equity shares) to employeesof theCompanyunder any scheme save and

ESOS;d. DetailsofContractsandarrangementwiththerelatedparties;e. No significant ormaterial orderswere passed by the Regulators or Courts or Tribunalswhich impact the

goingconcernstatusandCompany’soperationsinfuture


18

25. ACKNOWLEDGEMENT:YourDirectorstakethisopportunitytoplaceonrecordthevaluableco‐operationandsupportextendedbythebanks, government, business associates and the shareholders for their continued confidence reposed in theCompanyandlookforwardtohavingthesamesupportinallfutureendeavors.RegisteredOffice ForandonbehalfoftheBoard55,WorldBusinessHouse,NearParimalGarden,Ambawadi,Ahmedabad–380006.

For,SWORDANDSHIELDPHARMALIMITED

PRAVINBHAIPATEL JYOTSNABENPATELPlace :Pennsylvania MANAGINGDIRECTOR DIRECTORDate :13thAugust,2018 DIN:01877446 DIN:01877469

:::::

::

SR. No.Holding/

Subsidiary /Associate

% of shares held

ApplicableSection

Demat Physical Total% ofTotal

SharesDemat Physical Total

% ofTotal

Shares

(1) Indiana) Individual/ HUF 340,000 122,600 340,000 6.60 340,000 340,000 6.60 - b) Central Govt. - - - - - - - - - c) State Govt. - - - - - - - - - d) Bodies Corporate - - - - - - - - - e) Banks/FI - - - - - - - - - f) Any other - - - - - - - - -

Sub-Total (A)(1): 340,000 122,600 340,000 6.60 340,000 - 340,000 6.60 - (2) Foreign

a) NRIs - Individuals - - - - - - - - - b) Other - Individuals - - - - - - - - -

ANNEXURE -I EXTRACT OF ANNUAL RETURN

as on the financial year ended March 31, 2018[Pursuant to Section 92(3) of the Companies Act, 2013, and Rule 12(1) of theCompanies (Management and Administration) Rules, 2014]

FORM NO. MGT - 9

Company limited by shares / Indian Non-Government Comapny 55, World Business House, Near Parimal Garden, Ambawadi, Ahmedabad - 380 006 Tel No: +91-98250 79759 Email: swordnshield1995@g,ail.com Web Site: www.swordnshieldpharma.com Yes

1) Registration and Other Details:L24231GJ1995PLC024809February 28, 1995Sword & Shield Pharma Limited

Registration DateName of the CompanyCategory / Sub-Category of the CompanyAddress of the Registered Office and contact details

Whether listed Company

CIN

3) Particulars of Holding, Subsidiary and Associate Companies:

Name and Address of the Company CIN/GLN

MCS Share Transfer Agent Limited 201, Shatdal Complex, Opp. Bat Show Room,Ashram Road, Ahmedabad - 380 009Tel No.: 91-79 2658 0461 / 62 / 63 Email ID: [email protected]

2) Principal Business Activity of the Company:Name and Description of main Products / Services NIC Code of the Product / Service % to total turnover of the Company

Name, address and contact details of Registrar and Transfer Agent, if any

Pharmaceutical 996117 100

A. Promoters

N.A.

4) Shareholding Pattern (Equity Share Capital Breakup as percentage of Total Equity):I) Category-wise Shareholding

Category of Shareholders

No. of Shares held as at April 1, 2017 No. of Shares held as at March 31, 2018% Change during the

year

19

c) Bodies Corporate - - - - - - - - - d) Banks / FI - - - - - - - - - e) Any Other - - - - - - - - -

Sub-Total (A)(2): - - - - - - - - - Total Shareholding of

Promoters (A) = (A)(1)+(A)(2) 340,000 122,600 340,000 6.60 340,000 - 340,000 6.60 -

a) Mutual Funds / UTI - - - - - - - - - b) Banks / FI 7,400 - 7,400 0.14 7,400 - 7,400 0.14 - c) Central Govt. - - - - - - - - - d) State Govt.(s) - - - - - - - - - e) Venture Capital Funds - - - - - - - - - f) Insurance Company - - - - - - - - - g) FIIs - - - - - - - - - h) Foreign VentureCapital Funds - - - - - - - - - i) Others (specify) - - - - - - - - -

Sub-Total (B)(1): 7,400 7,400 0.14 7,400 - 7,400 0.14 -

i. Indian 466,244 466,244 9.05 411,694 411,694 7.99 (1.06) ii. Overseas - - - - - - - - -

i. Individual Shareholdersholding nominal share capital upto Rs. 2 Lakh 1,260,146 6,800 1,266,946 24.60 1,347,994 100 1,348,094 26.17 1.57 ii. Individual Shareholders holding nominalshare capital in excess of Rs. 2 Lakh 1,605,876 1,388,140 2,994,016 58.13 1,873,761 977,366 2,851,127 55.36 (2.77)

Market Maker - - - - - - - - - HUF 65,894 65,894 1.28 183,525 183,525 3.56 2.28 NRI 10,100 10,100 0.20 8,760 8,760 0.17 (0.03) Clearing Members - - - - - - - - -

Sub-Total (B)(2): 2,942,016 1,861,184 4,803,200 93.26 3,825,734 977,466 4,803,200 93.25 0.02 Total Public Shareholding(B)=(B)(1)+(B)(2) 2,949,416 1,861,184 4,810,600 93.40 3,833,134 977,466 4,810,600 93.39 0.02 C. Shares held byCustodian for GDRs & ADRs - - - - - - - - -

Grand Total (A+B+C) 3,289,416 1,983,784 5,150,600 100.00 4,173,134 977,466 5,150,600 100 0.02

B. Public Share Holding(1) Institutions

(2) Non-Institutiona) Bodies Corporate

b) Individuals**

c) Others (specify)

20

No. ofShare

% of totalshares of

the CompanyDate

Increase/ Decrease in

shareholdingReason No. ofShare

% of totalshares of

the Company

No. ofShare

% of totalshares of

the Company

Mr. Pravinbhai Patel 229,400 4.45 - - - - - 229,400 4.45 Mrs. Jyotsnaben Patel 110,600 2.15 - - - - - 110,600 2.15

No. ofShare

% of totalshares of

the Company



% of totalshares of

the Company SHAILESHKUMAR PATEL 256,280 4.98 41,000.00 Sell 215,280 4.20 PROBI FINCAP PVT LTD 200,000 3.88 200,000 3.88 SANJAYKUMAR PATEL 150,000 2.91 150,000 2.91 JITENDRAKUMAR PATEL 241,880 4.70 94,266 Sell 147,614 2.86 SANJAYBHAI MODI 141,566 Buy 141,566 2.74 JASHODABEN PATEL 255,730.00 7.64 Sell 137,730 2.67 PUNITABEN PATEL 256,980.00 4.99 120,000 Sell 136,980 2.65 CHIRAGKUMAR PATEL - Buy 131,730 2.55 JAGDISHKUMAR AKHANI 149,300.00 2.90 27,719.00 Sell 121,581 2.36 PRAKASHKUMAR PATEL 120,300.00 2.33 120,300 2.33

No. ofShare

% of totalshares of

the CompanyDate



% of totalshares of

the Company

No. ofShare

% of totalshares of

the Company

Mr. Pravinbhai Patel 229,400 4.45 - - - - - 229,400 4.45 Mrs. Jyotsnaben Patel 110,600 2.15 - - - - - 110,600 2.15 Mr. Jayeshkumar Patel - - - - - - - - - Mr. Dilipkumar Patel - - - - - - - - - Mr. Paresh Patel - - - - - - - - - Mr. Kanjibhai Chaudhary - - - - - - - - -

No Change

No ChangeNo Change

(III) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs)

Name

Shareholding as at April 1, 2017

II) Shareholding of Promoters & Promoters Group

Shareholding as at April 1, 2017

Date wise Increase/Decrease inShareholding

CumulativeShareholding

during the year

Shareholding as at March 31, 2018

Name

Increase/Decrease inShareholding

Shareholding as at March 31, 2018

(IV) Shareholding of Directors and Key Managerial Personnel

Name

Shareholding as at April 1, 2017 Date wise Increase/Decrease inShareholdingCumulative

ShareholdingShareholding as at March 31,

2018

21

Ms. Pooja Kadam#Mr. Darshil Hiranandani* - - - - - - - - -

(Amt. in INR)

Total IndebtednessDepositsUnsecured LoansSecured Loans excluding depositsParticulars

Indebtness at the beginning of the financial year

5) Indebtness (Rs. In Lakh)

*resigned w.e.f. April 14,2018

28.83 - -

28.83

- 28.83

- - - -

-

28.83 - -

28.83

- 28.83

- - - -

-

i) Principal Amount ii) Interest due but not paid iii) Interest accrued but not due

Total A (i+ii+iii)

- -

28.83

- - - -

- -

28.83

- - - -

-

Change in Indebtedness during the financial year

Additions Reduction

Net Change B

Indebtedness at the end of the financial year

- -

-

- -

- -

Name of the MD/WTD/Manager

-

- -

i) Principal Amount ii) Interest due but not paid iii) Interest accrued but not due

Total C (i+ii+iii)

A) Remuneration to Managing Director, Whole-time Directors and/or Manager6) REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

(c) Profits in lieu of salary under section 17(3) of the Income Tax Act, 1961 -

-

Name of the MD/WTD/Manager

Gross salary

Particulars of RemunerationPravinbhai Patel

Managing DirectorJyotsnaben Patel

Executive Woman Director

Total Amount

- - (a) Salary as per provisions contained in section 17(1) of the Income Tax. 1961.(b) Value of perquisites u/s 17(2) of the Income tax Act, 1961 -

- - - -

-

- - - - -

- - - - -

Sweat EquityStock option

Commissionas % of profitothers (specify)

Others, please specify - - Total (A) - - -

- -

#Appointed w.e.f. 13th June, 2018

B) Remuneration to other Directors: The Company is neither paying sitting fees nor any remuneration to other Directors.

22

(Amt. in INR)

*Resigned w.e.f. April, 14 2018

Section of the Companies Act

Authority (RD/ NCLT/ Court)

Appeal made if any (give

details)

For and on behalf of Board of DirectorsFor, Sword & Shield Pharma Limited

Pravinbhai Patel Jyotsnaben PatelPlace: Pennyslavnia Managing Director DirectorDate: 1st September, 2018 DIN 01877446 DIN 01877469

(a) Salary as per provisions contained in section 17(1) of the Income Tax. 1961. 290,000 273,600 563,600 (b) Value of perquisites u/s 17(2) of the Income tax Act, 1961 - - -

C) Remuneration to key Managerial Personnel Other than MD/Manager/WTDName of the KMP Name of the KMP

Gross salary

Darshil Hiranandani*Company Secretary &

Compliance Officer

Pooja Kadam#Company Secretary &

Compliance Officer

Particulars of Remuneration Total Amount

N.A. N.A.

N.A. N.A.N.A.

N.A.

N.A.

N.A.

B. Directors

C. Other Officers in Default

Compounding

PenaltyPunishmentCompounding

PenaltyPunishment N.A.

N.A.

Compounding

Penalty

as % of profit - - - others (specify) - - -

N.A. N.A. N.A. N.A. N.A.

A. Company

7) PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES

Details of Penalty/ Punishment/ Compounding fees imposed Brief DescriptionType

Others, please specify - - -

# Appointed w.e.f. June 13, 2018273,600 563,600

Punishment

Total 290,000

Sweat Equity - - - Commission - - -

(c) Profits in lieu of salary under section 17(3) of the Income Tax Act, 1961 - - - Stock option - - -

23


24

ANNEXURE‐2

SECRETARIALAUDITREPORT

FormNo.MR‐3ForthefinancialyearendedMarch31,2018

[Pursuanttosection204(1)oftheCompaniesAct,2013andRule9oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014]

To,TheMembers,Sword&ShieldPharmaLimited55,WorldBusinessHouse,NearParimalGarden,Ambawadi,Ahmedabad–380006IhaveconductedthesecretarialauditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporatepracticesbySword&ShieldPharmaLimited(hereinaftercalled‘theCompany’).SecretarialAuditwasconductedinamannerthatprovidedmeareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingmyopinionthereon.Based on my verification of the Company’s books, papers, minute books, forms and returns filed and otherrecordsmaintainedbytheCompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsandauthorized representatives during the conduct of secretarial audit, I hereby report that, in my opinion, theCompanyhas,duringtheauditperiodcoveringthefinancialyearendedon31stMarch,2018,generallycompliedwith the statutory provisions listed hereunder and also that the Company has proper Board‐processes andcompliance‐mechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter.Ihaveexaminedthebooks,papers,minutebooks, formsandreturnsfiledandotherrecordsmaintainedbytheCompanyforthefinancialyearendedon31stMarch,2018accordingtotheprovisionsof:i. TheCompaniesAct,2013(‘theAct’)andtherulesmadethereunderasapplicable;ii. TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder;iii. TheDepositoriesAct,1996andtheRegulationsandBye‐lawsframedthereunder;iv. ForeignExchangeManagementAct, 1999 (FEMA)and the rules and regulationsmade thereunder to the

extentofForeignDirectInvestment;v. ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,

1992(‘SEBIAct’):‐a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)

Regulations,2011;b) TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;c) The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“the Listing

Regulations”)


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vi. SecretarialStandardsissuedbytheInstituteofCompanySecretariesofIndia.DuringtheperiodunderreviewtheCompanyhascompliedwiththeprovisionsoftheCompaniesAct,2013,Rulesmadethereunder,Regulations,guidelinesetc.mentionedaboveexcept;

AppointmentofChiefFinancialOfficerundersection203oftheAct;andFurther, the Company being engaged in the Manufacturing/Trading of Pharmaceutical products, following isspecificapplicablelawtotheCompany,whichrequiresapprovalsorcompliancesunderis;

1. DrugsandCosmeticsAct,1940andDrugsandCosmeticsRules,1945‐TheCompanyhascompliedwithallrequirementsasspecifiedbytheAct.

And other generally applicable laws to the company are mentioned in Annexure A. We have relied on therepresentationmade by the Company and its officers for system andmechanism framed by the Company forcompliancesofthesaidlaws.During the Period under review, provisions of the following Acts, Rules, Regulations, and Standards are notapplicabletotheCompany,

i. TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009;

ii. The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents)Regulations,1993regardingtheCompaniesActanddealingwithclient;‐theCompanyisnotregisteredas Registrar to an Issue & Share Transfer Agent. However, the Company has appointed MCS ShareTransfer Agent Limited as Registrar & Share Transfer Agent as per SEBI (Listing Obligations andDisclosureRequirements)Regulations,2015.

iii. TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009;iv. TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008;v. TheSecuritiesandExchangeBoardofIndia(ShareBasedEmployeeBenefits)Regulations,2014;vi. TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,1998;vii. ForeignExchangeManagementAct,1999andtherulesandregulationsmadethereundertotheextentof

OverseasDirectInvestmentandExternalCommercialBorrowings.Ifurtherreportthat‐

The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non‐ExecutiveDirectors,IndependentDirectorsandWomanDirector.ThechangesinthecompositionoftheBoardofDirectorsthattookplaceduringtheperiodunderreviewwerecarriedoutincompliancewiththeprovisionsoftheAct.


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Adequatenotice isgiven toallDirectors toschedule theBoardMeetings,agendaanddetailednotesonagendaweresentinadvance,andasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.Majoritydecisionsarecarriedthroughwhilethedissentingmembers’viewsarecapturedandrecordedaspartoftheminutes.Ifurtherreportthat–Thereareadequate systemsandprocesses in theCompanycommensuratewith the sizeandoperationsof theCompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.Ifurtherreportthat‐Therewereno special/specific eventhasbeenoccurredduring the auditperiodexcept companyhasobtainedobservationletterfromthestockexchangeinthematterofamalgamationinnatureofmerger.Place:Ahmedabad Signature:

Date:13/08/2018 NameofPracticingCompanySecretary:AnandLavingia

ACSNo.:26458

CPNo.:11410

Note: This Report is to be readwithmy letter of above datewhich is annexed as Annexure B and forms anintegralpartofthisreport.


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AnnexureA

ListofmajorSpecificActsapplicabletotheCompany

1. TheIndianContractAct,18722. NegotiableInstrumentAct,18813. SalesofGoodsAct,19304. Arbitration&ConciliationAct,19965. BombayStampAct,1958(asapplicabletoGujaratState)6. RegistrationAct,19087. TheIndianStampAct,18998. TheGujaratStampAct,1958


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AnnexureBTo,TheMembers,Sword&ShieldPharmaLimited55,WorldBusinessHouse,NearParimalGarden,Ambawadi,Ahmedabad–380006Myreportofevendateistobereadalongwiththisletter.

1. Maintenance of secretarial records is the responsibility of the management of the Company. Myresponsibilityistoexpressanopiniononthesesecretarialrecordsbasedonmyaudit.

2. I have followed theauditpractices andprocessesaswere appropriate toobtain reasonable assuranceaboutthecorrectnessofthecontentsofsecretarialrecords.Theverificationwasdoneontestbasis,ontherecordsanddocumentsprovidedbytheManagementoftheCompany,toensurethatcorrectfactsarereflected in secretarial records. I believe that the processes and practices followed by me provide areasonablebasisformyopinion.

3. IhavenotverifiedthecorrectnessandappropriatenessoffinancialrecordsandbooksofaccountsoftheCompany.

4. Thecomplianceoftheprovisionofcorporateandotherapplicable laws,rules,regulations,standardsistheresponsibilityofmanagement.Myexaminationwaslimitedtoverificationofproceduresontestbasis.

5. Whereverrequired,IhaveobtainedtheManagementrepresentationaboutthecomplianceoflaws,rulesandregulationsandhappeningofeventsetc.

6. The Secretarial Audit report is neither an assurance as to the future viability of the Companynor theefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.

Place :Ahmedabad Signature:

Date :13/08/2018 NameofPracticingCompanySecretary:AnandLavingia

ACSNo.:26458

CPNo.:11410


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MANAGEMENTDISCUSSIONANALYSISREPORT

1. OVERVIEW:

India is the largest provider of generic drugs globally. India enjoys an important position in the globalpharmaceuticalssector.Thecountryalsohasa largepoolofscientistsandengineerswhohavethepotential tosteertheindustryaheadtoanevenhigherlevel.TheIndianpharmaindustry,whichisexpectedtogrowover15percentperannumbetween2015and2020,willoutperformtheglobalpharmaindustry,whichissettogrowatan annual rate of 5 per cent between the same periods. The Outlook of the Pharma Industry remains largelypositive over the next few years. India is the largest supplier of the cost effective generic medicines to thedevelopedworld.Withthevariedrangeofmedicinesavailableforexportsandwiththeavailabilityofthelargestnumber of approved pharmaceutical manufacturing facilities, India is all set to become the leader ofPharmaceuticalexportstotheWorld.Due to losses carried out by the Company during several years because of the changing scenario in thepharmaceuticalsector,theManagementoftheCompanythoughttodiversifyitsbusinessthroughcombiningtheresources of 2 Companies to give better yield to the Shareholders of the Company through a scheme ofarrangementinthenatureofamalgamationwithaProfitMakingOrganization–PravegCommunicationsLimited,having its Registered Office in the state of Gujarat – a Companywhich is carrying on the business of Events,ExhibitionsandAdvertisements.2. OPPORTUNITYANDTHREAT:

TheCompanyhasmadeanapplicationfortheSchemeofArrangementinthenatureofAmalgamationtoBSELtd.betweenPravegCommunicationsLimitedandtheCompany.TheapplicationmadebytheCompanyisapprovedbyBSELtd.andisnowpendingfortheapprovalofNationalCompanyLawTribunal,Ahmedabad(NCLT)thentheCompany can diversify its area of business operations apart from pharmaceutical business and can generatebetter revenues in future and can yieldmoreprofitswhich canprotect the interest of the Stakeholders of theCompany.IftheapplicationofAmalgamationisnotapprovedbytheNationalCompanyLawTribunal,Ahmedabad(NCLT)then the Company will carry on the business of pharmaceutical and other allied activities of pharmaceuticalproducts, but to cope upwith the negative reserves of the Company and to make the Company into a profitmakingentityfromalossmakingentitywillbeatidyanddifficultprocessastheCompanyhashugeamountofnegative reserves and with rising population and new health concerns the growth chances lie with all thecompanieswithhuge fundinvestment.Howeverconstant increase in theR&Dcost isacrucial issue forsmallscale pharmaceutical companies.MNCs in pharmaceutical companies are also taking over themarketwhich isalsomaterialthreatforthedomesticindustry.AlsotheCompanyhassoldoffitsmanufacturingunit–FactoryLandandBuildingthroughthewayofSlumpSaleand therefore the Company is not engaged in the business of Manufacturing of Pharmaceutical products andthereforeitisdifficulttorevivetheCompanyfromalossmakingentitytoaprofitmakingentityjustbyearningtheIncomeofCommissionbymarketingofthePharmaceuticalProducts.3. RISKFACTORS:

Theriskfactorisbutnaturallyinvolvedinanytypeofindustryincludingnaturalrisk.Duringthelastfewyears,thepromotionmeasuresundertakenbyotherstatesofIndia,hasalsodivertedthepharmaceuticalbusinessoutofGujarat.Thecorporatewithobsoletetechnologiesarelikelytoclosedownthebusiness.


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4. SEGMENT‐WISEORPRODUCTWISEPERFORMANCE:The Company was engaged in the business of Manufacturing and Trading of Pharmaceutical and other alliedPharmaceuticalProductswhichwascloseddownintheyear2015‐16bysellingoftheitsManufacturingUniti.e.FactoryLandandBuildingthroughSlumpSaleandthereforetheCompanydoesnotpossessanyFixedAssetsason date. Currently, the Company is working for the marketing of the Pharmaceutical and other alliedPharmaceuticalProductsonCommissionbasis.5. FUTUREOUTLOOK:The Company is in planning for expanding its business activities by entering into the business of Events,ExhibitionsandAdvertisementsalongwiththebusinessofPharmaceuticalandotheralliedproductsthroughtheprocess of Amalgamation with an Ahmedabad based organization named Praveg Communications Limited towidenitsbusinessactivities.6. INTERNALCONTROLSYSTEMANDTHEIRADEQUACY:TheCompanyhasanefficientsystemof internalcontrols forachieving the followingbusinessobjectivesof thecompany:a. Efficiencyofoperations;b. Protectionofresources;c. Accuracyandpromptnessoffinancialreporting;d. Compliancewiththelaiddownpoliciesandproceduresande. Compliancewithvariouslawsandregulations.InSword&ShieldPharmaLimited, InternalAudit isamulti‐disciplinaryfunctionwhichreviews,evaluatesandappraises the various systems, procedures/policies of the Company and suggests meaningful and usefulimprovements. It helps theManagement to accomplish its objectives by bringing a systematic and disciplinedapproach to improve the effectivenessof riskmanagement towards good corporategovernance.TheDirectorshandle most of the day‐to‐day functions. The Directors are regularly looking after all the key areas of theoperations.7. DISCUSSIONONFINANCIALPERFORMANCEWITHRESPECTTOOPERATIONALPERFORMANCE:During the Fiscal Year 2017‐18 the Revenue from Operations were recorded as INR 2.89 Lakhs althoughcomparativelylessthanlastyearbuttheCompanyhasreduceditslossesfromINR24.53LakhoflastyeartoINR16.06Lakhforthisyear.Particulars 2017‐18 2016‐17RevenuefromOperations 2,89,462.00 8,85,768.00OtherIncome 5,785.00 17,894.00Profit / (Loss) before Depreciation, Finance Costs,ExceptionalitemsandTaxation

(15,62,024.9) (24,46,008.95)


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Less:DepreciationandAmortizationexpense 0.00 0.00Profit / (Loss) before Finance Costs, Exceptional itemsandTaxation

(15,62,024.9) (24,46,008.95)

Less:FinanceCosts 4,619.00 661.00Profit/(Loss)beforeExceptionalitemsandTaxation (15,66,643.90) (24,46,669.95)Add:Exceptionalitems 0.00 0.00ProfitbeforeTaxation (16,06,643.90) (24,53,122.95)Less:TaxExpense 0.00 0.00DiscontinuingOperations Profit/(Loss)fromdiscontinuingoperations(beforetax) 0.00 0.00Profit/(Loss)fortheyear (16,06,643.90) (24,53,122.95)EarningsPerShare(EPS) Basic (0.32) (0.48)Diluted (0.32) (0.48)8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING

NUMBEROFPEOPLEEMPLOYED:TheCompanybeingengagedinthebusinessofPharmaIndustry,alltheoperationandmanagementislookafterbytheDirectorsoftheCompanyonly.Further,thereisnootheremployeeintheCompanyexceptonemarketingexecutive and the person appointed for looking after the Statutory Compliances under various acts. Further,Management is of the view to employ the person in the suitable post wherever require for the expansion ofbusinesstheCompany.9. CAUTIONARYSTATEMENT:Statement in the Management Discussion and Analysis, describing the Company's objective, projections andestimatesare forward looking statementsandprogressivewithin themeaningofapplicable securityLawsandRegulations. Actual results may vary from those expressed or implied, depending upon economic conditions,GovernmentPoliciesandotherincidentalfactors.


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INDEPENDEDNTAUDITORSREPORT

To,TheMembers,SWORDANDSHIELDPHARMALTD.Ahmedabad

ReportontheFinancialStatements

We have audited the accompanying standalone financial statements of SWORDAND SHIELDPHARMALTD.whichcomprise theBalanceSheetasatMarch31,2018,andtheStatementofProfitandLoss(includingOtherComprehensiveIncome),theStatementofChangesinEquityandtheStatementofCashFlowsfortheyearthenendedandasummaryofthesignificantaccountingpoliciesandotherexplanatoryinformation.

Management’sResponsibilityfortheFinancialStatements

TheCompany’sBoardofDirectors is responsible for thematters insection134(5)of theCompaniesAct,2013(“theAct”)withrespecttothepreparationofthesestandalonefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceincludingothercomprehensiveincome,cashflowsandchangesinequityoftheCompanyinaccordancewiththeIndianAccountingStandards(IndAS)prescribedundersection133oftheActreadwiththeCompanies(IndianAccountingStandards)Rules,2015,asamended,andotheraccountingprinciplesgenerallyacceptedinIndia.This responsibility also includes the maintenance of adequate accounting records in accordance with theprovisionoftheActforsafeguardingoftheassetsoftheCompanyandforpreventinganddetectingthefraudsandother irregularities; selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; anddesign, implementation andmaintenance of adequate internalfinancial control, thatwereoperatingeffectively forensuring theaccuracyandcompletenessof theaccountingrecords,relevanttothepreparationandpresentationofthestandalonefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’sResponsibility

Ourresponsibilityistoexpressanopiniononthesestandalonefinancialstatementsbasedonouraudit.In conducting our audit, We have taken into account the provisions of the Act, the accounting and auditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandtheRulesmadethereunderandtheOrderissuedundersection143(11)oftheAct.We conducted our audit of the standalone financial statements in accordancewith the Standards on Auditingspecifiedundersection143(10)of theAct.ThoseStandards require thatwecomplywithethical requirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.


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An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thestandalone financial statements. The procedures selected depend on the auditor’s judgment, including theassessmentoftherisksofmaterialmisstatementofthestandalonefinancialstatements,whetherduetofraudorerror. In making those risk assessments, the auditor considers internal financial control relevant to theCompany’spreparationofthestandalonefinancialstatementsthatgivetrueandfairviewinordertodesignauditprocedures thatareappropriate in thecircumstances.Anauditalso includesevaluating theappropriatenessofaccountingpoliciesusedand the reasonablenessof the accounting estimatesmadebyCompany’sDirectors, aswellasevaluatingtheoverallpresentationofthefinancialstatements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopiniononthestandalonefinancialstatements.

Opinion

Inouropinionand to thebest of our informationandaccording to the explanationsgiven tous, theaforesaidstandalonefinancialstatements,givethe informationrequiredbytheAct inthemannersorequiredandgiveatrueand fairview inconformitywith theaccountingprinciplesgenerallyaccepted in IndiasubjectaDeferredTaxAssetsofRs.10,24,358.91whichisnotrealizableinviewofwantofconvincingevidencesforavailabilityoftaxableprofitinnearfutureforitsrealization/adjustment,ofthefinancialpositionoftheCompanyasat31March, 2018, and its financial performance including other comprehensive income, its cash flows and thechangesinequityfortheyearendedonthatdate.

ReportonOtherLegalandRegulatoryRequirements

1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the CentralGovernmentofIndiaintermsofSection143(11)oftheCompaniesAct,2013,wegiveintheAnnexure‐A,astatementonthemattersspecifiedinparagraphs3and4oftheOrder.

2. Asrequiredbysection143(3)oftheAct,wereportthat:a) We have sought and obtained all the information and explanations which to the best of our

knowledgeandbeliefwerenecessaryforthepurposesofouraudit.b) InouropinionproperbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofaras

appearsfromourexaminationofthosebooks.c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income,

Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are inagreementwiththebooksofaccount.

d) In our opinion, the aforesaid standalone financial statements comply with the Indian AccountingStandardsprescribedundersection133oftheAct.

e) Onthebasisofwrittenrepresentationsreceivedfromthedirectorsason31stMarch,2018,takenonrecordbytheBoardofDirectors,noneofthedirectors isdisqualifiedason31stMarch,2018, frombeingappointedasadirectorintermsofSection164(2)oftheAct.

f) WithrespecttotheadequacyoftheinternalfinancialcontroloverfinancialreportingoftheCompanyandtheoperatingeffectivenessofsuchcontrols,refertoourseparatereportinAnnexure‐B,and


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g) WithrespecttotheothermattersincludedintheAuditor’sReportinaccordancewithRule11ofthe

Companies(AuditandAuditors)Rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:

s?'Sw ord & Shield Pharmo Ltd. - Bombay Stock Exchange · 2018. 10. 11. · s?'Sword & Shield...

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