9. Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
Provisions for restructuring are recognised by the Company when it has developed a detailed formal plan for restructuring and has raised a valid expectation in those affected that the Company will carry out the restructuring by starting to implement the plan or announcing its main features to those affected by it.
Provisions are measured at the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). The measurement of provision for restructuring includes only direct expenditures arising from the restructuring, which are both necessarily entailed by the restructuring and not associated with the ongoing activities of the Company.
10. Employee Benefits
Employee benefits include salaries, wages, contribution to provident fund, gratuity.
leave encashment towards un-availed leave, compensated absences, post-retirement medical benefits and other terminal benefits.
Short-term Employee Benefits
Wages and salaries, including non-monetary benefits that are expected to be settled within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
Liabilities recognised in respect of shortterm employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service. Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.
Post-employment Benefits • Defined Benefit Plan
Defined benefit plans comprising of gratuity, post-retirement medical benefits and other terminal benefits, are recognized based on the present value of defined benefit obligations which is computed using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. These are accounted either as current employee cost or included in cost of assets as permitted. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.
11. Earnings per Share
Basic Earnings per Share
Basic earnings per share is computed by dividing the net profit after tax by weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the year is adjusted for treasury shares, bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).
Diluted Earnings per Share
Diluted earnings per share is computed by dividing the profit after tax after considering the effect of interest and other financing costs or income (net of attributable taxes) associated with dilutive potential equity shares by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares including the treasury shares held by the Company to satisfy the exercise of the share options by the employees.
Terms of Repayment of Loans:
1. Vehicle Loan from HDFC Bank (8347) is repayable in 60 monthly equal instalments of? 71.695 each, starting from December 2021. The total outstanding as on 31s' March 2024 is ? 20,84,530.15.
2. Vehicle Loan from HDFC Bank (8131) is repayable in 60 monthly equal instalments of ? 31,186 each, starting from May 2021. The total outstanding as on 31st March 2024 is ? 7.12.203.73.
3. Loan from Bank of Baroda (2820) is repayable in 36 monthly instalments of ? 2,31,972 each, after an initial moratorium period of 12 months, i.e. starting from January 2023. The total outstanding as on 31st March 2024 is ? 76.55.084.00.
4. Loan from Bank of Baroda (3018) is repayable in 60 monthly instalments of ? 2,62,000 each, starting from April 2023. The total outstanding as on 31st March 2024 is ? 55.12.000.00.
5. Loan from Bank of Baroda (1570) is repayable in 36 monthly instalments, after an initial moratorium period of 12 months, i.e. starting from July 2021. The total outstanding as on 31s' March 2024 is ? 3,64,989.00.
6 The coupon rates for the secured long-term borrowings are 710 % to 1140 % per annum (Previous Year: 7.10% to 10.35% per annum).
7. Unsecured loans of ? 3,00,000.00 had been received from Abundant Trade Link. No terms of repayment have been specified for the same.
8. Loans from Bank of Baroda (2820. 3018 and 1570) are secured by equitable mortgage of factory land and building and residential bungalow of Director Shri Natwarbhai P Prajapati and hypothecation of all plant and machinery, movable fixed assets, stock, book debts and all the current assets of the company, as well as personal guarantee of the following directors:
a. Mr. Natwarbhai P Prajapati
b. Mr. Amritbhai P. Prajapati
c. Mr. Aalap N. Prajapati
Note No. 33: Discontinued Operations
On 1st January 2018, the board of directors of the company decided to discontinue the operations of the Metal Division, which had been suspended by the management since last few years. As on 31st March 2018, the Metal Division was classified as Discontinued Operations. The Metal Division which was earlier shown as an operating segment is no longer presented in the segment report.
For the financial year ended on 31s: March 2024, no financial transactions have occurred relating to the Metal Division and there are no results to be declared for the same.
The major classes of assets and liabilities of the metal division classified as held-for-sale in accordance with Ind AS 105 as on 3T' March 2024 are presented as follows:
At the time of classification of the Metal Division as a discontinued operation, the recoverable value of items of property, plant and equipment was estimated based on the report of a registered valuer. As per the report of the registered valuer dated 18th May 2022, no impairment losses were identified in the value of property, plant and equipment.
Note No. 34: Contingent Liabilities
The Income Tax Department has made additions to the income of the company on various grounds for the financial years 2010-11, 2011-12, 2012-13 and 2013-14, against which, the company had preferred appeals before the Commissioner of Income Tax (Appeals) during the respective periods in which the matters were decided. The appeals were disposed of by the Commissioner with a reduction in demands, which were duly paid by the company against the appeal orders. However, in respect of those matters, the Income Tax Department had preferred further appeals before the Income Tax Appellate Tribunal, Ahmedabad, and the matters were decided by the Hon. Tribunal against the company. The company filed a Miscellaneous Application for rectification of the said orders which is decided by the Hon. Tribunal against the company The company has decided to file petition before Hon. Gujarat High court. As per the opinion of the Advocate of the company, the amount of potential liability, if any, in respect of the pending matter is not ascertainable at this stage since there are points on which the company has favourable arguments.
Signature to notes 1 to 34.
In terms of our separate audit report of even date attached.
For M. A. Shah b Co. For Gujarat Terce Laboratories Limited
Chartered Accountants Firm Registration No.: 112630W
Pramesh Doshi, FCA Natwarbhai P. Prajapati Aalap Prajapati
Partner Chairman Managing Director b
Membership No : 045319 DIN: 00031187 Chief Executive Officer (CEO)
DIN: 08088327
Place: Anand Bhagirath Maurya CS Ripalben S. Sukhadiya
Date: 29 May 2024 Chief Finance Officer (CFO) Company Secretary
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