accord ACCORD FARMACEUTICA L TOA. FINANCIAL STATEMENTS AS OF MARCH 31, 2017 AND 2016 AND INDEPENDENT AUDITORS REVIEW REPORT IN REAIS (R$)

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1 accord FINANCIAL STATEMENTS AS OF MARCH 31, 2017 AND 2016 AND INDEPENDENT AUDITORS REVIEW REPORT IN REAIS (R$)

2 ACCORD FARMACEUTICA L TOA. FINANCIAL STATEMENTS AS OF MARCH 31, 2017 AND 2016 IN REAIS CONTENTS MAP ACC INDEPENDENT AUDITORS REVIEW REPORT... 2 FINANCIAL STATEMENTS Balance sheet Income Statement Accompanying notes

3 ~ ~~' CPAAI CPA AGSOCIATC.o:> INT(.RNATIONAL INDEPENDENT AUDITORS REVIEW REPORT To the Management and Quotaholders Sao Paulo - SP :\lap ~_ Auditoria We have reviewed the the accompanying financial statements of ACCORD FARMACEUTICA L TOA., which comprise the statement of financial position as of March 31, 2017 and the related statements of income, changes in shareholders, equity and cash flow for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's16 Responsibility for the Financial Statements Management of ACCORD FARMACEUTICA LTDA is responsible for the preparation and fair presentation of these financial statements in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities, 17 and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Independent Auditors's Responsibility Our responsibility is to express a conclusion on the accompanying financial statements. We conducted our review in accordance with International Standard on Review Engagements (ISRE) 2400 (Revised), Engagements to Review Historical Financial Statements. ISRE 2400 (Revised) requires us to conclude whether anything has come to our attention that causes us to believe that the financial statements, taken as a whole, are not prepared in all material respects in accordance with the applicable financial reporting framework. This Standard also requires us to comply with relevant ethical requirements. A review of financial statements in accordance with ISRE 2400 (Revised) is a limited assurance engagement. The practitioner performs procedures, primarily consisting of making inquiries of management and others within the entity, as appropriate, and applying analytical procedures, and evaluates the evidence obtained. The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International Standards on Auditing. Accordingly, we do not express an audit opinion on these financial statements

4 ~,/~~' CPAAI.,. CPA A~ CIA1L lnic.rnational To the Management and Quotaholders Sao Paulo - SP Conclusion INDEPENDENT AUDITORS REPORT ~lap Auditoria Based on our review, nothing has come to our attention that causes us to believe that these financial statements do not present fairly, in all material respects, the financial position of of ACCORD FARMACEUTICA LTDA., which comprise the statement of financial position as of March 31, 2017 and the related statements of income, changes in shareholders' equity and cash flow for the year then ended, in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities. Emphasis No calculations have been made to determine that the prices of goods imported from foreign-based related parties for resale are within the limits established by the Brazilian transfer pricing legislation. As a consequence, it was impracticable to identify possible income tax- and social contribution-related obligations. As describe on Note 6 ACCORD FARMACEUTICA LTDA. has R$9.432 thousands, referring the ICMS (Value Added Tax) to compensate, the accomplishment of these assets, depends on the improvement of the profitability of its operations or of an authorization of use of this credit tributary, the society constituted provision of R$160.thousands to make front the possible losses with these credits May15, 2017 MAP AUDITORES INDEPENDENTES CRC N 2SP020649/0-2 3

5 EQUITY AM> LIA Bil.lTlES Shareholders' Funds (a) Share Capital (b) Reserves and Surplus Non-current Liabiities (a) Long Term Borrowings Current Liabiities (b) Trade Payables (c) Other Current Liabilities (d) Short Term Provisions ASSETS Profit/ (Loss) Before Tax Balance Brought forward from Previous Year Non-current Assets (a) Fixed Assets (i) Ta ngible Assets Current Assets (b) Inventories (c) Trade Receivables (d) Cash and Cash Equivalents (e) Short Term Loans and Advances PET ajrrent ASSETS BALANCE SHEET AS OF MARCH 31 lotal lotal Notes Mar 31, 2017 WIR$ The Accompanying Notes are an integral part of the Financial Statements. Mar 31, 2016 R$ ( ) ( )

6 accord ACCORD FARMACEUTICA L TOA. INCOME STATEMENT AS OF MARCH 31 l't>tes inr~ R$ Re11enue from Operabons (Gross) Less: ICMS reco\iered 'IOB Revenue from Operations (Net) Other Jncome Total Revenue (I) E>cpenses: Purchases of Traded Goods (Increase)/Decrease 1n Inventones of R11shed Goods, Work-In-Progress and 23 Traded Goods Manufacb..Jnng Expenses Employee Benefits Expenses Adm1nlstrab11e and General Expenses Selling and Markebng El<penses Total Expenses (D) Earnings before Interest, Tax, Depreciation and Amortisation ( ) oeixeoabon and Amorbsabon B<penses Flnance Costs Profit I (Loss) Before Tax ( ) Tax El<penses: (i) CurrentTax ( ) {II) Deferred Tax Balance Brought forward from Prel/lous Year ( ) Profit / (Loss) for the year ~ The Accompanying Notes are an integral part of the Financial Statements.

7 ACCOMPANYING NOTES AS OF MARCH 31, 2017 AND 2016 NOTE 1- Operations Company make import and trade drugs and medical products for human use NOTE 2 - Summary of Significant Accounting Policies System of Accounting The Company follows the accrual basis in preparing the accounts. Liquid Assets Cash & Bank balances are expressed to the corresponding market value, recognising the exchange rate variations. Fixed Assets Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation thereon. The cost of fixed asset includes non-refundable taxes & levies, freight and other incidental expenses related to the acquisition and installation of the respective assets. Depreciation Depreciation on fixed assets is provided on straight line basis, utilizing the rates authorized by the Brazilian Income Tax Law. Foreign Currency Transactions Foreign currency transactions are recorded in the reporting currency using a monthly exchange rate prevailing at the end of the month. Foreign currency assets and liabilities on the balance sheet date are reported using the closing rate. Exchange differences arising on foreign currency transactions are recognized as income or expense of the period in which they arise. Stockholders Equity The Share Capital as at March 31, 2017 is made-up of 13,414,884 shares (quotas) issued, subscribed and paid-up with a nominal value of Reais 1 each, totaling to a paid-up Share Capital of Reais 13,414,884. Accounting for Taxes on Income Current taxes have been accounted as per payable method. 6

8 Contingent Liabilities There are no contingent liabilities. Notes forming part of the Accounts A. According to the information and explanations given to us, transactions of the Company which are represented merely by book entries are not prejudicial to the interests of the Company. 8. Trade Payables include an amount of R$ due by the company on account of purchases made from lntas Pharmaceuticals Ltd, the parent share holder. Long Term Borrowings of R$ represents amount due by the company on account of loan taken from lntas Pharmaceuticals Ltd, the parent share holder.] C. During the year, the company had purchased pharmaceutical products from its Parent share holder amounting to R$ (US$ ) The inventory of the company as at the end of the exercise comprises of purchases made from its Parent Share holder. NOTE 3 - Share Capital Authorised Shares Redeemable Preference Shares Equity Shares of R$ 1 each Issued, Subscribed and Fully Paidup Shares Redeemable Preference Shares Equity Shares of R$ 1 each (a) March 31, 2017 March 31, 2016 in R$ In. Nos In R$ In. Nos In R$ Reconciliation of the shares outstanding at the beginning and at the end of the year Equity Shares At the Beginning of the year Add: Issued During the Year Outstanding at the End of the year March 31, 2017 In. Nos In R$ March 31, 2016 In. Nos In R$

9 accord NOTE 3 - Share Capital (continuation) (b) Shares held by Holding/Ultimate Holding Company and/or their Subsidiaries/Associates (c) lntas Pharmaceuticals Limited, the Holding Company March 31, 2017 March 31, 2016 In. Nos In R$ In. Nos In R$ Aggregate Number of Bonus Shares issued, Shares issued for consideration other than cash and Shares bought back during the period of five years immediately preceding the reporting date: Year (Aggregate Number of Shares) Equity Shares: Alloted as Fully paid bonus shares by capitalisation of Security Premium Alloted as Fully paid-up pursuant to contracts for consideration other than cash Shares bought back by the Company (Above disclosure (d) need to be made for each class of shares) (d) Details of shareholders holding more than 5% Shares in the Company March 31, 2017 March 31, 2016 % Holding in % Holding No. Lacs the Class No. Lacs in the Class Equity Shares lntas Pharmaceulticas Limited ,997% Mr. Binish K. Chudgar 400 0,003% ,000% As per the records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares. (e) The Company has only one class of equity shares having a par value of R$ 1, per share. Each equity shareholder is entitled to one vate per share. 99,997% 0,003% 100,000%

10 NOTE 4 - Reserves and surplus (a) Surplus Balance as per Last mancial Statements Net Profit/ (Net Loss) for the year Net Surplus in the Statement of Profit and Loss ~N>lOTAL NOTE 5 - Long term borrowings Other Loans and Advances Intercorporate Deposit (Unsecured) The above amount includes: Secured Borrowings Unsecured Borrowings Net Amount ~~~-in~r$~-~~ :;~;;.;_;_;R$~ ( ) ( ) ( ) ( ) ( ) ~n-current Portion R$ R$ Descrition R$ Debit Note Loan Loan Loan Loan Interest -464 Interest Interest Interest Interest Interest Interest Interest ND

11 NOTE 6 - long-term loans and advances Capital Advances Security deposit Unsecured, considered good Loans and Advances to Related Parties Advances recoverable in Cash or Kind Secured, considered good Other Loans and Advances Advance income-tax Prepaid expenses Balances with Statutory/Government Authorities Less: Provision for doubtful loans and advances NOTE 8 - Provisions Total (A + B + c + D + E) Provision for EnJ>loyee Benefits Provision for Q-atuity Provision for Leave Encashment (A) (B} (C} (D} (E) Current Portion in R$ in R$ Short-term in R$ in R$

12 NOTE 10 - Other current liabilities Trade Payables Intas Pharmaceuticals Others - Service Tax Payable - TDS Payable Invoice,..nmer Value ND subtotal Invoice,..nmer subtotal subtotal in R$ in R$ Value Invoice,..nmer Value subtotal Total The Company has purchased pharmaceutical products from lntas Pharmaceuticals Limited amounting to U$ during the year equivalent to R$ (Previous year US$ equivalent to R$ ) 11

13 accord ACCORD FARMACEUTICA L TOA. NOTE 11 - Tangible Assets in R$ Gross Block Accumulated Depreciation Net Block in R$ Balance as at April 1, 2016 Additions Balance as at Balance as at O.arge for the Balance as at Mar 31, 2017 April 1, 2015 year Mar 31, 2017 Balance as at Balance as at April 1, 2015 Mar 31, 2017 Plant and Machineries Furniture, Fixtures and Equipments Vehicles Computers Others (specify nature) Capital Work In Progress GRAN>lOTAL Previous Years Rgures ; I

14 NOTE 15 -Trade Receivables ACCORD FARMACEUTICA L TOA. OUtsta nding for a period exceeding six n>nths from the date they are due for payment Secured, considered good Unsecured, considered good Unsecured, considered doubtful Less: Provision for doubtful receivables Other receivables Secured, considered good Unsecured, considered good Unsecured, considered doubtful Less: Provision for doubtful receivables NOTE 18 - Inventories Total (A+ B) [Valued at lower of cost and net realisable vah.je] Finished Goods NOTE 19 - Cash and cash equivalents Balances with Banks: On Current Accounts Cash on Hand Amount disclosed under Non-Current Assets (A) (B) Current Portion Mar31,2017 Mar31,2016 in R$ in R$ ( ~~~~i_n_r$~-~~~-in~r$~ Current Portion in R$ in R$

15 NOTE 20 - Revenues from operations Sale of Products Finished Goods Traded Goods Revenue from Operations (Q-oss) Less:!CMS Revenue from Operations (Net) NOTE 21 - Other income :i.:..:..n..:..:r:i..$ , _:in:.:...:...:r$::l ;i.:..:..n..:..:r$:.i.. ~in:...;,_:_;r$~ Insurance Claims Received Other Non-operating Income (net of expenses directly attributable) , NOTE 23 - Increase I decrease in inventories Inventory at the end of the Period Traded Goods Inventory at the beginning of the Period Traded Goods Mar 31, 2017 inr$ Mar 31, 2016 inr$ (Increase) I Decrease Mar 31, 2015 inr$ :1::.=;0=.9=18:.:..:.. 7-=.:11= :1::..::0=.9=18:.:..:..7-=.:11= =9=.3..;;;.;53=.94:;...;..= =1=9=.3=53=.94-'-'8= ===== ~ 14

16 :accord I I I a NOTE 24 - Manufacturing Expenses Power and Fuel Laboratory Expenses NOTE 25 - Employee Benefit Expenses Salaries, Wages and Bonus Contribution to Provident and Other Fund Q'atuity Expense Post Employment Medical Benefits Staff Welfare Expenses NOTE 26 - Administrative and General Expenses Mar 31, 2017 in R$ Mar 31, 2016 inr$ ~~~~~in_r$,_~~~~_in_r$,_ in R$ In R$ Rent, Rates and Taxes Insurance Repairs and Maintenance - Buildings - Others Travelling and Conveyance Communication Costs Printing and Stationery Legal and Professional Fees Payment to Auditor (Refer details below) Exchange Differences (Net) Product Development Expenses Provision and write off for short life inventories ,89 Provision for D:>ubtful Debts and Advances Miscellaneous Expenses Payment to Auditor: In R$ In R$ As Auditor: Audit Fee ~

17 NOTE 27 - Selling and marketing expenses Commission on Sales Freight and Forwarding on Sales Advertisements and ajsiness Promotions Discounts given Representative Expenses, Allowances and IncentiveS Other Marketing Expenses NOTE 27 - Finance costs Interest Bank Charges Amortisation of ancilliary Borrowing Costs Total Exchange Difference to the extent considered as an adjustment to Borrowing Costs ****** in R$ In R$ , ~~~-in~r$~-~~---'in~r$~ /