3.15 Provisions
Provisions are recognized when there is a present legal or
constructive obligation as a result of a past event, when it is
probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
Provisions are not recognized for future operating losses.
Any reimbursement that the Company can be virtually certain
to collect from a third party with respect to the obligation is
recognized as a separate asset. However, this asset may not
exceed the amount of the related provisions.
Provisions are reviewed at each reporting date and adjusted
to reflect the current best estimate. If it is no longer probable
that an outflow of economic resources will be required to
settle the obligation, the provisions are reversed. Where
the effect of the time of money is material, provisions
are discounted using a current pre-tax rate that reflects,
where appropriate, the risks specific to the liability. When
discounting is used, the increase in the provisions due to the
passage of time is recognized as a finance cost.
Provision for litigation related obligation represents
liabilities that are expected to materialize in respect of
matters in appeal.
3.16 Dividends
The Company recognises a liability to make cash distributions
to equity holders when the distribution is authorized and the
distribution is no longer at the discretion of the Company
on or before the balance sheet date but not distributed at
the balance sheet date. As per the corporate laws in India,
a distribution is authorised when it is approved by the
shareholders. A corresponding amount is recognized directly
in equity. Interim dividends are recorded as a liability on the
date of declaration by the Company's Board of Directors.
3.17 Equity:
Ordinary Shares are classified as Equity share Capital.
Incremental costs directly attributable to the issue of new
ordinary shares or share options and buy back are recognized
as a deduction from equity, net of tax effects, if any.
3.18 Research and Development:
Revenue expenditure pertaining to research is charged to the
Statement of Profit and Loss. Development costs of products
are also charged to the Statement of Profit and Loss unless
a product's technical feasibility has been established, in
which case such expenditure is capitalized. Development
expenditure on an individual project are recognized as an
intangible asset when the Company can demonstrate:
• The technical feasibility of completing the intangible
asset so that the asset will be available for use or sale
• Its intention to complete and its ability and intention to
use or sell the asset
• How the asset will generate future economic benefits
• The availability of adequate resources to
complete the asset
• The ability to measure reliability the expenditure
during development.
The amount capitalized comprises expenditure that can
be directly attributed or allocated on a reasonable and
consistent basis to creating, producing and making the asset
ready to its intended use.
3.19 Employee Benefits:
(i) Defined Contribution Plan:
The Company's contribution to provident fund and
employee state insurance schemes is charged to the
statement of profit and loss as and when the services
are received from the employees. The Company's
contributions towards Provident Fund are deposited
with the Regional Provident Fund Commissioner under
a defined contribution plan. The Company has no
further obligations once the contributions have been
paid to the Fund.
(ii) Defined Benefit Plan:
The Company has gratuity as defined benefit plan where
the amount that an employee will receive on retirement is
defined by reference to the employee's length of service
and final salary. The liability recognized in the balance
sheet for defined benefit plans as the present value of
the defined benefit obligation (DBO) under projected
unit credit method at the reporting date. Management
estimates the DBO annually with the assistance of
independent actuaries as per the requirements of IND
AS 19 "Employee Benefits”. Actuarial gains and losses
resulting from re-measurement of the liability are
included in other comprehensive income.
Management's estimate of the DBO is based on a
number of critical underlying assumptions such
as standard rates of inflation, medical cost trends,
mortality, discount rate and anticipation of future
salary increases. Variation in these assumptions may
significantly impact the DBO amount and the annual
defined benefit expenses.
The Company has subscribed to a group gratuity
scheme of Life Insurance Corporation of India (LIC).
Under the said policy, the eligible employees are entitled
for gratuity upon their resignation, retirement or in the
event of death in lump sum after deduction of necessary
taxes upto a maximum limit as per the Gratuity Act,
1972. Liabilities in respect of the Gratuity Plan are
determined by an actuarial valuation, based upon which
the Company makes contributions to the Gratuity Fund.
(iii) Other Long-Term Employee Benefits
The Company also provides benefit of compensated
absences to its employees which are in the nature
of long -term benefit plan. Liability in respect of
compensated absences becoming due and expected to
be availed more than one year after the balance sheet
date is estimated on the basis of an actuarial valuation
performed by an independent actuary using the
projected unit credit method as on the reporting date
as per the requirements of IND AS "Employee Benefits”.
Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions are
recorded in the statement of profit and loss in the year
in which such gains or losses arises.
(iv) Short-Term Employee Benefits
Short-term employee benefits comprise of employee
costs such as salaries, bonus etc. is recognized on
the basis of the amount paid or payable for the period
during which services are rendered by the employee.
Short term Employee Benefits are the obligations that
are expected to be settled wholly within 12 months
after the end of the period in which the employees
renders the related services.
3.20 Earnings per Share:
Basic earnings per share 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. The weighted average number of equity
shares outstanding during the year is adjusted for events
including a bonus issue.
For the purpose of 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.
3.21 Contingent Liabilities, Contingent Assets and
Commitments:
Where there is a present obligation and it is not probable
that an outflow of economic resources will be required, or
the amount cannot be estimated reliably, the obligation
is not recognised in the statement of balance sheet and is
disclosed as a contingent liability.
Possible obligations and whose existence will only be
confirmed by the occurrence or non-occurrence of one or
more uncertain future events which are not in the control of
the company are also disclosed as contingent liabilities.
Contingent Assets are not recognized in the Balance Sheet.
A contingent asset is disclosed where an inflow of economic
resources is probable. However, when realization of Income
is virtually certain, related asset is recognized.
Commitments include the amount of purchase order (net of
advances) issued to parties for completion of assets.
3.22 Exceptional Items
Exceptional items are disclosed separately in the financial
statements where it is necessary to do so to provide further
understanding of the financial performance of the Company.
These are material items of income or expense that have
to be shown separately due to the significance of their
nature or amount.
3.23 Fair Value Measurement
The Company measures Financial Instruments at fair value
at each Balance Sheet Date.
Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability
takes place either in the principal market for such asset or
liability, or in the absence of a principal market, in the most
advantageous market which is accessible to the Company.
The fair value of an asset or a liability is measured using
the assumptions that market participants would use
when pricing the asset or liability, assuming that market
participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into
account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the
asset in its highest and best use.
The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximizing the
use of relevant observable inputs and minimizing the use of
unobservable inputs.
All assets and liabilities for which fair value is measured
or disclosed in the standalone financial statements are
categorized within the fair value hierarchy, described as
follows, based on the lowest level input that is significant to
the fair value measurement as a whole:
Level 1 - Quoted (unadjusted market prices) in active
markets for identical assets or liabilities.
Level 2 - Valuation techniques for which the lowest level
input that is significant to the fair value measurements is
directly or indirectly observable.
Level 3 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement
is unobservable.
3.24 Critical accounting Estimates and Judgements:
The Preparation of financial statements in conformity with Ind
AS requires Management to make Judgements, estimates
and assumptions that affect the application of accounting
policies and the reported amounts of revenues, expenses,
assets and liabilities, and the accompanying disclosures,
and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the
reporting period. Although these estimates are based upon
management's best knowledge of current events and actions,
actual results could differ from these estimates. Revisions to
accounting estimates are recognized prospectively.
3.25 Recent Accounting Pronouncements:
The Ministry of Corporate Affairs ("MCA”) notifies new
standards or amendments to the existing standards under
the Companies (Indian Accounting Standards) Rules, as
issued from time to time. For the year ended March 31,
2025, MCA has notified Ind AS 117 - Insurance Contracts
and amendments to Ind AS 116 - Leases relating to sale
and leaseback transactions, applicable to the Company with
effect from April 1, 2024. The Company has assessed the
applicability of these new pronouncements and, based on its
evaluation, has concluded that they do not have a material
impact on its financial statements
3.26 Rounding of Amounts:
All amounts disclosed in the financial statements and
notes have been rounded off to the nearest lakhs as per
the requirement of Schedule III to the Companies Act, 2013
unless otherwise stated.
As at the reporting date, the lease terms and related conditions are under negotiation with the lessor.
The Company has also taken office premises for lease in Vishakapatnam and the said lease is revocable by either of the parties
with one month prior intimation. During the year, the company has paid lease rental of H2.35 lakhs (Previous Year H2.24 lakhs). and
recognised the lease rentals on a straight line basis over the lease term.
The above lease is no longer enforceable as per Ind AS 116 because the both parties has the right to terminate the lease without
significant penalty. Hence, disclosure requirement under Ind AS 116 "Leases” is not required.
5.1 Operating Lease Commitments - Company as Lessor :
The Company has given on Lease of its part premises in Corporate office for an amount of 1.32 lakhs per month to an associate
company . The company has also given for sub lease of part of its premises in R & D Gagilapur to associate company. The Company
has recognized income for total amount of H23.83 lakhs (Previous Year H22.27 lakhs) under the head of other income.
19.6 Nature and Purpose of Reserves
(a) Securities Premium Reserve:
Securities Premium Reserve is to record the premium on issue of shares. The reserve will be utilised in accordance with the
provisions of the CompaniesAct, 2013.
(b) Capital Redemption Reserve:
The Company has recognized Capital Redemption reserve on buy back of equity shares. The amount in capital redemption
reserve is equal to nominal amount of the equity shares bought back. This reserve will be utilized in accordance with Section
69 of the Companies Act, 2013.
(c) Retained Earnings:
These are the accummulated earnings after appropriation of total comprehensive income and related transfers. The company
uses retained earnings in accordance with the provisions of the Companies Act.
(d) General Reserve:
General Reserves represent amounts transferred from retained earnings in earlier years under the provisions of the erstwhile
Companies Act, 1956 and any voluntary transfers made from retained earnings under the Companies Act,2013.Mandatory
transfer to general reserve is not required under the Companies Act, 2013.
(e) Re-measurement Gain/(loss) of defined benefit obligations
These are the re measurement gains/(losses) arising from the actuarial valuation of the defined benefit obligations of the company.
The re-measurement gains/(losses) are recognised in other comprehensive income and are not reclassified to profit or loss.
19.7 Share Warrants
During the year ended March 31,2024, the Board of Directors of the Company, at its meeting held on February 08, 2024, approved
the raising of funds through the issue of Convertible Equity Share Warrants to the Promoters/Promoter Group by way of preferential
issue, comprising up to 90,00,000 warrants convertible in one or more tranches into equity shares of Re. 1/- each of the Company at an
19. Other Equity (Contd..)
issue price of H 127/- per warrant (including a premium of H 126/-), aggregating to H 11,430.00 lakhs. The proposal was subsequently
approved by the members through a special resolution passed at the Extraordinary General Meeting held on March 06, 2024.
Pursuant to the said approval, the Securities Allotment Committee of the Board, at its meeting held on March 19, 2024, allotted
90,00,000 Convertible Warrants at an issue price of H 127/- each, which are convertible into equity shares within a period of 18
months from the date of allotment.
During the financial year 2023-24, the Company received H 2,857.50 lakhs, being 25% of the total consideration payable towards
subscription of the aforesaid warrants.
During the financial year 2024-25, the Company received H 3,810.00 lakhs towards the balance 75% subscription amount in respect
of 40,00,000 warrants, which were duly converted into equity shares and allotted to the Promoters/Promoter Group.
20.1.1 Security Terms
(a) Term Loans availed from IDBI Bank Limited (IDBI Bank), State Bank of India (SBI) and Export-Import Bank of India (Exim
Bank) are secured by first charge on all movable and immovable fixed assets of the company both present and future on pari-
passu basis. They are further secured by second charge on current assets both present and future on pari-passu basis. These
facilities are guaranteed by Sri Ramesh Babu Potluri, Chairman & Managing Director and Sri Vamsi Krishna Potluri, Executive
Director of the Company in their personal capacities
(b) Long Term Working Capital Term Loans (LTWCTL) availed from Exim Bank are secured by first charge on all movable and
immovable fixed assets of the company both present and future on pari-passu basis. Further secured by second charge on
current assets of the Company both present and future on pari-passu basis. These facilities are guaranteed by Sri Ramesh
Babu Potluri, Chairman & Managing Director of the Company in his personal capacity
(c) Working Capital Term Loans (WCTL) under Guaranteed Emergency Credit Line (GECL) availed from IDBI Bank, RBL Bank
Limited (RBL Bank), Exim Bank and SBI are secured by second charge on all movable and immovable fixed assets of the
company both present and future on pari-passu basis . Further secured by second charge on current assets of the Company
both present and future on pari-passu basis. These facilities are covered under GECL operated by National Credit Guarantee
Trustee Company Limited (NCTC).
(d) Refer note 40 for the carrying amounts of financial and non-financial assets pledged as security for current and non -
current borrowings
20. Non Current Borrowings - Financial Liabilities (Contd..)
(e) The WCTL under GECL availed from IDBI Bank amounting H1,180 lakhs is to be repaid in 47 monthly equal principal
repayment of H24.60 Lakhs and 48th monthly instalment of H23.80 lakhs after moratorium period of one year i.e.
March 2022 onwards.
(f) The WCTL under GECL2 availed from IDBI Bank amounting H590 lakhs is to be repaid in 47 monthly equal principal
repayment of H12.30 Lakhs and 48th monthly instalment of H11.90 lakhs after moratorium period of two years i.e.
December 2023 onwards.
(g) The WCTL under GECL availed from RBL Bank amounting H1,130 lakhs is to be repaid in 47 monthly equal principal
repayment of H23.54 Lakhs and 48th monthly instalment of H23.62 lakhs after moratorium period of one year i.e.
April 2022 onwards.
(h) The WCTL under GECL availed from SBI amounting H2,320 lakhs is to be repaid in 48 equal monthly installments
commencing after a moratorium of 2 years from the date of first disbursement i.e. March 2024.
(i) The WCTL under GECL availed from Exim Bank amounting H1,609 lakhs is to be repaid in 48 equal monthly installments
commencing after a moratorium of 2 years from the date of first disbursement i.e. April 2024.
(j) The loan availed from Export-Import Bank of India amounting to H10,000 Lakhs for funding the Expansion project of
kandivalasa unit.The loan is repayable in 20 Structured Quarterly installments Commencing from March, 2026, as
mentioned below.
First 4 Quarters H 250.00 Lakhs each
Next 4 Quarters H 375.00 Lakhs each
Next 12 Quarters H 625.00 Lakhs each
20.1.4 The Company has used the borrowings only for the purposes for which it was taken.
20.1.5 The quarterly returns of current assets filed by the Company with banks are in agreement with books of account.
20.2.1 During earlier years, the Company received financial assistance of H120.00 lakhs from Department of Scientific and Industrial
Research (DSIR) sanctioned under PATSER Scheme of Technology Promotion Development and Utilization (TPDU) Programme
for development of catalysts or Fine Chemicals apart from Active Pharmaceutical Ingredients (API's), and their intermediates
viz. Metal Acetylacetonates, Diltiazem Hydrochloride and Taxol C-13 Side Chain. The Company has executed agreements with
DSIR, NRDC, IICT Hyderabad, IICT Guwahati under the said programme.
As per the terms of agreement entered with DSIR, 1.3 times of the above amount is payable in 5 equal annual installments
after commencement of commercial operations of the product(s) developed under PATSER scheme. The Company has not
yet commenced the commercial operations of the said products
However, NRDC has filed an application before the Honourable High Court of Delhi at New Delhi for appointment of an Arbitral
Tribunal and the Court referred the disputes to the Delhi International Arbitration Centre (DIAC), which would appoint an
arbitrator to resolve the disputes. The Company has not yet received any communication from DIAC
43. Fair Value Measurements
43.1 Fair Value Hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three levels of
a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data rely as little as possible on entry specific estimates.If all significant inputs
required to fair value an instrument are observable, the instrument is included in Level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
44. Financial Risk Management Objectives and Policies
Financial Risk Management Framework
The Company is exposed primarily to credit risk, liquidity risk and market risk (fluctuations in foreign currency exchange rates and interest
rate), which may adversley impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial
environment and seeks to mitigate potential adverse effects on the financial performance of the Company.
44.1 Credit Risk:
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to
a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well
as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous
basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to
concentrations of credit risk principally consist of trade receivables, cash and cash equivalents, bank deposits and other financial
assets. None of the financial instruments of the Company result in Material Concentration of credit risk, except for Trade Receivables.
Financial Instruments and Cash Deposits
For banks and financial institutions, only high rated banks/ institutions are accepted. Other Financial Assets (excluding Bank
Deposits) majorly constitute deposits given to State Electricity Departments for supply of power, which the company considers
44. Financial Risk Management Objectives and Policies (Contd..)
to have negligible credit exposure. Counterparty credit limits are reviewed by the Management on an annual basis, and may be
updated throughout the year. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through
counterparty's potential failure to make payments.
Expected Credit Loss for Trade Receivables under simplified approach
For Trade Receivables, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires
expected lifetime losses to be recognised from initial recognition of the receivables.
Credit risk is the risk of financial loss to the Company if a customer to a financial instrument fails to meet its contractual obligations
and arises primarily from trade receivables, treasury operations etc. The credit risk related to trade receivables is influenced mainly
by the individual characteristics of each customer.
The credit risk is managed by the company by establishing credit limits and continuously monitoring the credit worthiness of the
customer. The Company also provides for expected credit losses based on the past experience where it believes that there is high
probability of default. All trade receivables greater than 180 days are reviewed and provided for by analysing individual receivables.
44.2 Liquidity Risk:
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is
to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk
by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continously monitoring forecast and actual
cash flows, and by matching the maturity profiles of financial assets and liabilities.
Market risk is the risk that the fair value or future cash flows of a financial isntruments will fluctuate because of changes in market
prices. Market prices comprise three types of risk, currency rate risk, interest rate risk and other price risks such as equity risk.
44.3.1. Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instruments will fluctuate because of change
in market interest rates. All the debt obligations of the company are with floating interest rates which is subject to exposure to
risk of changes in market interest rates.
Interest rate sensitivity
The folloing table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of borrowings
affected. With all other variables held constant, the companys's profit before tax is affected through the impact on
borrowings, as follows:
The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable
market environment.
44.3.2 Foreign Currency Exchange Rate Risk:
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Currency
risk arises when transactions are denominated in foreign currencies.
The Company has transactional currency exposures arising from goods supplied or received that are denominated in a currency
other than the functional currency. The foreign currencies in which these transactions are denominated are mainly in US Dollars
($). The Company's trade receivable and trade payable balances at the end of the reporting period have similar exposures.
Other price risk is the risk that the fair value or future cash flows of the Company's financial instruments will fluctuate because
of changes in market prices (other than those arising from interest rate risk or currency risk) whether those changes are caused
by factors specific to the individual financial instrument or its issuer or by factors affecting all similar financial instruments
traded in the market.
Company does not have any exposure to price risk, as there is no market based equity investment made by the company
45. Capital Management
For the purposes of the Company's Capital Management, capital includes issued equity capital, share premium and all other equity reserves
attributable to the equity holders. The primary objective of the Company's capital management is to maximise the shareholder value.
The Company manages its capital structure in consideration to the changes in economic conditions and the requirements of the financial
covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total equity plus net debt. The Company
intends to keep the gearing ratio less than 1. The Company includes within net debt, borrowings including interest accrued on borrowings
less cash and short term deposits.
Income Tax Assessment Order and Management's Position
The Company has received an Income Tax Assessment Order passed under Section 144 r.w.s. 144B of the Income Tax Act, 1961 dated
22.03.2025 for the Assessment Year 2023-24, along with a demand notice of H 4,562.55 Lakhs, including interest and penalty. The
assessment order has been issued without considering the Company's submissions/clarifications, by rejecting the books of accounts
and making an additional revenue amounting to H 20,703.34 Lakhs on the following grounds:
a) The Assessing Officer has taken turnover of H 74,029.03 Lakhs from CBIC GSTR-1 as against the Company's declared turnover of H
52,205.14 Lakhs.
b) The Company has also obtained confirmation letters from the GST authorities with respect to the turnover declared in GSTR-1 and
GSTR-3B for FY 2022-23 (AY 2023-24), which have been submitted to the relevant authorities.
c) Despite the above the Assessing Officer has estimated taxable profit of H 14,805.81 Lakhs, being 20% of the assumed revenues of
H 74,029.03 Lakhs.
This rejecting books and estimating profits demonstrates a clear violation of the principles of natural justice, as the Company was not
provided with a proper opportunity of being heard.
The turnover of H 74,029.02 Lakhs considered by the Assessing Officer is erroneous, as it includes H 20,703.34 Lakhs, which had already
been declared in GSTR-1 in earlier tax periods which do not constitute fresh or additional turnover.
This fact is evidenced in Table 9A (Amendments to Export Supplies) of GSTR-1 and reflected in Table 6A (EXPWP/EXPWOP) of earlier
returns, where the Net Differential Amount (Amended - Original) is shown as Nil, confirming that the amendments had no impact on
turnover already reported.
Considering the above, the Company has:
• Filed an Appeal before the Commissioner (Appeals),
• Submitted a Grievance Petition before the High-Pitched Assessment Committee,
• Filed a Stay Petition against the demand, and
• Requested that penalty proceedings be kept in abeyance until disposal of the appeals.
Based on the above facts and legal position, the management strongly believes that there will be no financial impact on the Company
arising from the said assessment order. Accordingly no provision for tax liability has been considered in the books of accounts.
(1) Long-Term borrowings Short-Term borrowings Interest accrued but not due
(2) Profit After Tax Non-operating cash exp like depreciation Interest
(3) Interest on Borrowings lease payments Principal repayments
(4) Current assets - current liabilities
(5) Shareholder's Equity Total debt including interest accrued -Cash & Cash Equivalents
52. Other statutory information
i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.
ii) The Company does not have any transactions with companies struck off.
iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority
vi) The Company has not utilised short term funds for long term uses. .
vii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
viii) 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:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
52. Other statutory information (Contd..)
ix) The Company does not have any such transaction which is not recorded in the books of account that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961.
x) The Company has not entered into any scheme of arrangements which has an accounting impact on current and previous financial year
xi) The Company has complied with number of layers prescribed under clause (87) of section 2 of the Act read with the Companies
(Restriction on number of Layers) Rules ,2017.
53. Previous year figure have been regrouped and reclassified wherever considered necessary to confirm to this year's classifications.
The accompanying notes are an integral part of the Standalone Financial Statements.
As per our report of even date
for SURYANARAYANA & SURESH For and on behalf of the Board of the Directors of
Chartered Accountants SMS PHARMACEUTICALS LIMITED
FRN 006631S
MUKTHA PRABHAKAR RAMESH BABU POTLURI VAMSI KRISHNA POTLURI
Partner Chairman and Managing Director Executive Director
M.No. 200247 DIN No : 00166381 DIN No : 06956498
Place: Hyderabad T. LAKSHMI NARAYANA T.THIRUMALESH
Date : May 30, 2025 Chief Financial Officer Company Secretary
M.No.A35824
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