XVI. Provisions, Contingent Liabilities & Contingent asset
1. Provisions are recognized only when:
(i) the Company has a present obligation (legal or constructive) as a result of a past event; and
(ii) it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation; and
(iii) a reliable estimate can be made of the amount of the obligation
When the effect of the time value of money is material, the enterprise determines the level of
provision by discounting the expected cash flows at a pre-tax rate reflecting the current rates specific
to the liability. The expense relating to any provision is presented in the Statement of Profit and Loss
net of any reimbursement.
2. Contingent Liabilities: Contingent liability is disclosed in case of:
(i) a present obligation arising from past events, when it is not probable that an outflow of resources
will be required to settle the obligation; and
(ii) a present obligation arising from past events, when no reliable estimate is possible.
3. Contingent assets are disclosed where an inflow of economic benefits is probable. Provisions,
contingent liabilities and contingent assets are reviewed at each Balance Sheet date. Where the
unavoidable costs of meeting the obligations under the contract exceed the economic benefits
expected to be received under such contract, the present obligation under the contract is
recognized and measured as a provision.
XVII. Earnings Per Share
The Company reports basic and diluted earnings per share in accordance with Ind AS 33 on
Earnings per share.
Basic EPS is calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year.
For calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted
for the effects of all dilutive potential equity shares. Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless they have been issued at a later date. In
computing the dilutive earnings per share, only potential equity shares that are dilutive and that
either reduces the earnings per share or increases loss per share are included.
Note No. 04
Accounting Judgments, Estimates and Assumptions
The preparation of financial statements in conformity with the IND AS requires the management to
make judgments, estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities and the accompanying disclosure and the disclosure of contingent
liabilities, at the end of the reporting period. Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are recognized in the period in which the
estimates are revised and future periods are affected. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty about these assumptions
and estimates could result in the outcomes requiring a material adjustment to the carrying amounts
of assets or liabilities in future periods.
In particular, information about significant areas of estimation, uncertainty and critical judgments in
applying accounting policies that have the most significant effect on the amounts recognized in the
financial statements is included in the following notes:
I. Fair value measurement
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot
be measured based on quoted prices in active markets, their fair value is measured using various
valuation techniques. The inputs to these models are taken from observable markets where
possible, but where this is not feasible, a degree of judgment is required in establishing fair values.
Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in
assumptions about these factors could affect the reported fair value of financial instruments.
II. Useful lives of property, plant and equipment, and intangible assets
Property, plant and equipment, and intangibles assets represent a significant proportion of the asset
base of the Company. The charge in respect of periodic depreciation is derived after determining an
estimate of an asset's expected useful life and the expected residual value at the end of its life. The
useful lives and residual values of Company's assets are determined by the management at the time
the asset is acquired and reviewed periodically, including at each financial year end. The lives are
based on historical experience with similar assets as well as anticipation of future events, which may
impact their life, such as changes in technology.
III. Expected credit loss:
The Company applies Expected Credit Losses ("ECL") model for measurement and recognition of
loss allowance on Trade receivables.
Judgments are required in assessing the recoverability of overdue trade receivables and
determining whether a provision against those receivables is required. Factors considered include
the credit rating of the counterparty, the amount and timing of anticipated future payments and any
possible actions that can be taken to mitigate the risk of non-payment.
IV. Contingent liabilities and provisions
Provisions and liabilities are recognized in the period when it becomes probable that there will be a
future outflow of funds resulting from past operations or events and the amount of cash outflow can
be reliably estimated. The timing of recognition and quantification of the liability requires the
application of judgment to existing facts and circumstances, which can be subject to change. The
carrying amounts of provisions and liabilities are reviewed at each Balance sheet date and revised to
take account of changing facts and circumstances.
V. Defined Benefit Plans:
The cost of the defined benefit gratuity plan and other post-employment benefits and present value
of the gratuity obligation are determined using actuarial valuation. An actuarial valuation involves
making various assumptions that may differ from actual development in the future. These include the
determination of the discount rate, future salary increases and mortality rates. Due to complexities
involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting date.
NOTE 15.04 :
Terms/ Rights attached to equity shares :
The Company has only one class of shares i.e. equity shares having a face value of Rs. 10. All these shares have the
same rights and preferences with respect to payment of dividend, repayment of capital and voting. Dividend on
equity shares whenever proposed by the Board of Directors is subject to the approval of the shareholders in the
Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to
receive remaining assets of the Company, after distribution of preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders.
Note No. 17.02:
There are no defaults as on the Balance Sheet date in repayment of the above loans and interest thereon except one
installment of Rs. 1.43 lakhs on loan from Punjab National bank Car loan in the month of January 2025, which
subsequently paid in the month of March 2025.
Note No. 17.03- Charges not registed with ROC till date:
The Company has taken a loan from Kotak Mahindra Bank for Rs. 175 Lakhs on 01/11/2021, for which neither
charge has been created nor satisfaction of charges made as on 31.03.2025, However the balance of said loan in
current year Nil (P.Y. Rs. 143.51 Lakhs).
Note No. 17.04- Utilisation of Funds
The loan has been utlised for the purpose for which it was obtained and no short term funds have been used for
long term purpose.
Note No. 17.05- Difference between books debt statement submitted to bank and balance as per books:
The Monthly statements of Book Debts filed by the company with the banks are not in agreement with the books of
accounts of the company, below differences are observed as follow.
35. Disclosure as per Ind AS 116, “Leases”
i. As Lessee:
The 3 industrial land allotted by MPAKVN is on a lease of 30 years, which is further renewable
and is recognized in the financial statements. Since the yearly lease payments for such leases
are not material, the management has decided to apply the recognition exemption as per Para
5(b) of IND AS 116, wherein the entity need not apply the requirements for which, the
recognition and measurement of lease liability for which the underlying asset is of low value.
There is another property on lease whose rentals are of Rs. 0.72 Lakhs per annum and the rent
agreements for 11 months are cancellable and are generally renewable in mutual consent or
mutually agreeable terms.
ii. As Lessor
The company has given its Godown to various parties on monthly rent. The rent agreements for
11 months are cancellable and are generally renewable in mutual consent or mutually
agreeable terms. The rental income on such Godown is included in other income.
41. The Company has no subsidiary. Hence requirement of Consolidated Financial Statement is not
applicable to the Company.
42. The company has temporally discontinue production in FFS Section for upgradation as per revised
Schedule M, WHO-GMP Norms w.e.f. January 2025 and accordingly turnover of the company is
lower from earlier year. Now, the company has got WHO-GMP certification on 27/03/2025.
43. The company has written off trade receivable Rs. 23.75 Lakhs (PY Rs. 8.62 Lakhs) due to non¬
recoverability after continuous follow-up in during the year.
44. In the opinion of the Board Current Assets, Loans & Advances are approximately of the value
stated, if realized in the ordinary course of business. The provision for Depreciation & amortization
and all known liability are adequate. There is no Contingent liability other than stated.
45. Details of Dues To Micro And Small Enterprises As Defined Under The Micro, Small And
Medium Enterprises Development Act, 2006:
As on the date of Balance Sheet, the Company has not received (except as given in Table) any
communication from any of its suppliers regarding the applicability of Micro, Small and Medium
enterprises development Act, 2006 to them, as such, information as required under the act cannot
be complied and therefore not given for the year.
The following information has been determined to the extent such parties have been identified on
the basis of information available with the company:-
48. Details of Corporate Social Responsibility Expenditure:
As per Section 135 of the Companies Act, 2013, The Company is not liable to spend the specified
amount on CSR activities as per the norms. Hence, no separate reporting is required for the same.
49. Disclosure related to Investment Property:
Fair Value as on 31.3.2025 of Investment property based on valuation of an independent registered
valuer dt. 21/08/2024 is as follows:
a. Land on P.H. No. 18, Survey No. 278/1, Plot No. 100, Gram Kelodhala, Tehsil & District, Indore :
Fair Value Rs. 86.99 Lakhs
b. Godown constructed on (a) above: Fair Value Rs. 119.00 Lakhs
Fair Value as on 31.3.2025 of Investment property based on Guideline valuation is as follows:
a. Land on P.H.No. 189, Survey No. 278/1, Plot No. 109, 110, 115, Gram Kelodhala, Tehsil &
District, Indore: Fair Value Rs. 140 Lacs
Amounts recognized in profit and loss account for:
Rental Income on Godown given on rent is Rs. 13.37 Lacs (P.Y. Rs. 12.73 Lacs).
50. Disclosure as per IND As 107, Financial Instruments
a. Capital management
The Company's objectives when managing capital is to safeguard their ability to continue as a going
concern, so that they can continue to provide returns for shareholders and benefits for other
stakeholders. In order to maintain or adjust the capital structure, the Company adjusts the amount
of dividends paid to shareholders, return capital to shareholders or issue new shares.
For the purpose of Company's capital management, Capital includes Issued Equity share capital.
Gearing Ratio is ratio of Net debts (total borrowings (long term as well as short term) net of cash &
cash equivalents) divided by total equity capital. Accordingly, the Company has calculated gearing
ratio as at 31st March, 2025 and 31st March, 2024. The gearing ratio is as follows:
b. Financial risk management objective and policies:
This section gives an overview of the significance of financial instruments for the Company and
provides additional information on the balance sheet. Details of significant accounting policies,
including the criteria for recognition, the basis of measurement and the basis on which income and
expenses are recognized, in respect of each class of financial asset and financial liability are
disclosed in Note No. 1
Financial assets and liabilities: The accounting classification of each category of financial
instruments, and their carrying amounts, are set out below:
c. Fair value of financial assets and financial liabilities that are not measured at fair value
Management considers that the carrying amounts of financial assets and financial liabilities
recognized in the Financial Statements
d. Defaults and breaches
There are no defaults as on the Balance Sheet date in repayment of the above loans and interest
thereon except one installment of Rs. 1.43 lakhs of car loan from Punjab National bank for 40 days
of delay for January 2025 of monthly instalment of Car which subsequently paid in the month of
March 2025.
e. Risk management framework
The Company's business is subject to several risks and uncertainties including financial risks. The
Company's documented risk management polices act as an effective tool in mitigating the various
financial risks to which the business is exposed to in the course of their daily operations. The risk
management policies cover areas such as liquidity risk, interest rate risk, counterparty and
concentration of credit risk and capital management. Risks are identified through a formal risk
management programme with active involvement of senior management personnel and business
managers. The Company's risk management process is in line with the corporate policy. Each
significant risk has a designated ‘owner' within the Company at an appropriate senior level. The
potential financial impact of the risk and its likelihood of a negative outcome are regularly updated.
The risk management process is coordinated by the Management Assurance function and is
regularly reviewed by the Company's Audit Committee. The overall internal control environment
and risk management programme including financial risk management is reviewed by the Audit
Committee on behalf of the board. The risk management framework aims to:
• improve financial risk awareness and risk transparency
• identify, control and monitor key risks
• identify risk accumulations
• provide management with reliable information on the Company's risk situation
• improve financial returns
Treasury management
The Company's treasury function provides services to the business, co-ordinates access to
domestic and international financial markets, monitors and manages the financial risks relating to
the operations of the Company through internal risk reports which analyses exposures by degree
and magnitude of risks. These risks include market risk (including currency risk and interest rate
risk), credit risk and liquidity risk.
Treasury management focuses on capital protection, liquidity maintenance and yield maximization.
Financial risk
The Company's Board of Directors approves financial risk policies comprising liquidity, foreign
currency, interest rate and counterparty credit risk. The Company does not engage in the
speculative treasury activity but seeks to manage risk and optimize interest through proven
financial instruments.
i. Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in
financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy
counterparties as a means of mitigating the risk of financial loss from defaults. The Company is
exposed to credit risk for receivables, cash and cash equivalents, bank balances other than cash
and cash equivalents, investments and loans.
Regarding trade and other receivables, the Company has accounted for impairment based on
expected credit losses method as at 31st March, 2025 and 31st March, 2024 based on expected
probability of default.
Deposits are with government departments and with lessor so chances of default are very minimal.
For short-term loans and advances, counterparty limits are in place to limit the amount of credit
exposure to any counterparty.
None of the Company's cash equivalents are past due or impaired.
ii. Liquidity risk
Liquidity risk arises from the Company's inability to meet its cash flow commitments on time.
Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable
securities. The Company maintains adequate cash and cash equivalents along with the need
based credit limits to meet the liquidity needs.
52. Wilful Defaulter
The company has not declare wilful defaulter by any bank or financial institution or other lender.
53. Events after reporting date:
There have been no events after the reporting date that require adjustment/disclosures in these
financial statements.
54. Undisclosed income
As explained by the management and records examined by us, no transactions were observed
which remain unrecorded in the books of accounts that can materially impact the financial position
of the company as at the balance sheet date. Further, no instances of transactions surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 which
previously remain unrecorded, offered as income in the books of accounts during the year.
55. Details of Benami Property held:
During the year no proceedings have been initiated or pending against the company for holding any
Benami Property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules
made there under.
56. Indications of impairment:
In the opinion of management, there are no indications, internal or external which could have the
effect of Impairing the value of assets to any material extent as at the Balance Sheet date requiring
recognition in terms of Ind AS 36.
57. Relationship with Struck off Companies: As per the management no transaction with the strike
off company were entered into during the year.
58. Details of Crypto Currency or Virtual Currency
The company has not traded or invested in crypto currency or Virtual currency during the year.
59. The Company, has no long-term contracts including derivative contracts having material
foreseeable losses as at 31st March 2025.
60. There is nothing to report with regard to Disclosure related to Loans or Advances in the nature of
loans are granted to promoters, directors, KMPs and the related parties (as defined under
Companies Act, 2013,) either severally or jointly with any other person since no such transaction.
61. During the year no scheme of arrangement has been formulated by the Company/pending with any
competent authority.
62. The Company has no subsidiary. The Company is in compliance with the number of layers as
prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies
(Restriction on Number of Layers) Rules, 2017.
63. During the year the company has not advanced or loaned or invested funds (either borrowed funds
or share premium or any other sources or kind of funds) to any other person or entity including
foreign entities (intermediaries) with the understanding (whether recorded in writing or otherwise)
that the intermediary shall :
(i) directly or indirectly lend or invest in other person or entities identified in any manner
whatsoever by or on behalf of company (ultimate beneficiaries) or
(ii) Provide any guarantee, security or the like to or behalf of the ultimate beneficiaries. The
company has not given guarantee or provided security.
64. The Company has not received any fund from any person(s) or entity(ies) including foreign entities
(funding party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:
(i) directly or indirectly lender invest in any manner whatsoever by or on behalf of the funding party
(ultimate beneficiaries) or
(ii) provide any guarantee, security or the like to or on behalf of the (ultimate beneficiaries) or
65. Deferred Tax Assets are recognized to the extent there is reasonable certainty that sufficient future
taxable income be available to realize those assets at each Balance Sheet Date. The Carrying
amount of Deferred Tax Assets is reviewed to reassess realization.
66. Since the date of last Balance Sheet there have been no material change affecting the accounts as
on 31st March, 2025.
67. Company has complied with all rule, regulation and laws applicable to company including all Labour
and tax laws (Both State and Central) and all liabilities under such applicable laws have been fully
paid/provided for in the accounts of the company for the year ended 31.03.2025.
68. There have been no event subsequent year end which require adjustment or disclosure in the
financial statement or notes thereto except those disclosed in the notes to the financial statement.
69. Company has complied with all condition and requirement of SEBI (Listing and Obligation and
Disclosure Requirement, 2015) regarding Corporate Governance.
AS PER OUR REPORT OF EVEN DATE FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
FOR SUBHASH CHAND JAIN ANURAG & ASSOCIATES CIN: L02423MP1993PLC007840
CHARTERED ACCOUNTANTS
FRN-004733C
SANJAY SETHI SUDHIR SETHI
(MANAGING DIRECTOR) (DIRECTOR)
DIN :00090277 DIN : 00090172
(AKSHAY JAIN)
PARTNER
M.NO.447487 nehasharma
UDIN: 25447487BMICQT4570 (COMrAN\SECREoTARY)
ICSI. M.No. A30887
PLACE: INDORE
DATE : 30/05/2025
| 