Company Affairs [Section 134(3)(i)] Research and Development R&D is another focus area for Gland. Synthetic R&D is led by Dr. C.S. Venkatesan and Formulation R&D is led by Dr S. Sridevi. Each of them has over two decades of experience. Gland has a team of close to 200 scientists working in the areas of: · API Process Development · Analytical Method Development · Formulation Development · Synthesis/isolation and characterization of process and degradation impurities

A. Conservation of Energy The Company has been taking adequate measures to reduce energy consumption at all levels.     The details of consumption of electrical energy are given below: POWER AND FUEL CONSUMPTION 2017-18 2016-17 a) Electricity         Units purchased 67,315,101 61,711,212     Total Amount In Rupees 410,340,083 338,518,857     Unit Rate in Rupees 6.10 5.49 b) Own generation through Diesel Generators:         Units 1,062,866 536,413     Units per litre of Diesel Oil 3.82 3.66     Cost per Unit in Rs. 12.09 13.76   Steps taken by the Company for utilizing alternate sources of energy: No alternative source of energy was used during the period under review. Capital investment on energy conservation equipment: Nil Consumption per unit of production: Products Electricity (Units) Coal (D/C Grade) Others (Specify) Since the Company manufactures different types of Formulations and Active Pharmaceutical Ingredients, it is not practicable to give consumption per unit of production.

B.        Technology absorption RESEARCH AND DEVELOPMENT (R&D): 1. Specific areas in which R&D is carried out by the Company.     Formulation Development, Analytical Method Development, Stability studies and Development of            new products. 2. Benefits derived as a result     of the above R&D   Developed new products and achieved cost and process efficiencies on existing products. 3. Future plan of action   To develop processes   for   newer products and intermediates. 4. Expenditure on R&D   2017-18 (Rs. in Mn) 2016-17  (Rs. in Mn) a) Capital   43.89 16.85 b) Recurring   619.51 583.92 c) Total   663.39 600.76 d) Total R&D Expenditure as a     Percentage of Sales   4.09% 4.03%   Technology absorption, adaptation and innovation: 1.      Efforts in brief, made towards technology absorption and adoption.       Works on Basic Drugs and Formulations related to the Company’s existing activities at various levels of Development.   2.      Benefits derived as a result of the above efforts       Developed new products and achieved cost and process efficiencies on existing products. 3.      Information regards import of technology during the last                3 years.       NIL

Particulars of Foreign Exchange Earnings and Outgo       (Amount in Rs.) PARTICULARS 2017-18  2016-17 1. Foreign Exchange Earnings:     In USD 205,836,006 170,244,517 In EURO 933,552.805 3,088,756 Equivalent In INR 13,172,130,618 11,493,343,078       2. Foreign Exchange Outgo:     Capital Expenditure     In USD 1,651,392 5,858,761 In EURO 1,386,534 2,065,628 Equivalent In INR 219,243,761 553,900,994       Revenue Expenditure     In USD 75,115,276 52,416,195 In EURO 7,298,596 6,032,912 Equivalent In INR 5,457,794,692 3,981,263,375                   Payment to Financial Institutions - -

Directors’ Responsibility Statement [Section 134(3)(c) and 134(5)] In terms of Section 134(3)(c) and 134(5) of the Companies Act, 2013 your directors state that : a) in preparation of the annual accounts for the year ended 31st March, 2018, the applicable accounting standards have been followed along with proper explanations relating to material departures, if any. b) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2018 and of the profit of the Company for the year ended on that date. c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. d) they have prepared the annual accounts on a going concern basis. e) they have laid down proper internal financial controls to be followed by the Company and they were adequate and operating effectively and f) they have devised proper systems to ensure compliance with the provisions of all applicable laws and such systems were adequate and operating effectively.