(n) Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized when the Company has a present obligation as a result of
past events and it is probable that an outflow of resources will be required to settle the
obligation in respect of which a reliable estimate can be made. Provisions (excluding
retirement benefits) are not discounted to their present value and are determined based
on the best estimate required to settle the obligation at the Balance Sheet date. These
are reviewed at each Balance Sheet date and adjusted to reflect the current best
estimates.
Contingent liabilities are disclosed in the Notes. Contingent liabilities are disclosed for
(1) possible obligations which will be confirmed only by future events not wholly
within the control of the Company or
(2) present obligations arising from past events where it is not probable that an outflow
of resources will be required to settle the obligation or a reliable estimate of the
amount of the obligation cannot be made.
Contingent assets are not recognised in the Financial Statements.
(o) Earnings Per Share
Basic earnings per share is computed by dividing the profit / (loss) after tax by the
weighted average number of equity shares outstanding during the year. Diluted
earnings per share is computed by dividing the profit / (loss) after tax as adjusted for
dividend, interest and other charges to expense or income (net of any attributable taxes)
relating to the dilutive potential equity shares, by the weighted average number of
equity shares considered for deriving basic earnings per share and the weighted average
number of equity shares which could have been issued on conversion of all dilutive
potential equity shares.
(p) Cash and cash equivalents:
Cash and cash equivalents for the purpose of cash flow statement comprise cash at
bank including fixed deposits (having original maturity of less than 3 months), cheques
in hand and cash in hand.
(q) Exceptional items:
When items of income and expense within profit or loss from ordinary activities are of
such size, nature or incidence that their disclosure is relevant to explain the
performance of the enterprise for the period, the nature and amount of such items is
disclosed separately as Exceptional items.
For V J Shah & Co „ ,
. . For and on behalf of Board of Directors
Chartered Accountants A/r T . .. ,
, . • tvt Medico Remedies Limited
Firm Registration No.:
109823W
Chintan V Shah HARESH MEHTA HARSHIT MEHTA
Partner (CHAIRMAN & CFO) (MANAGINGDIRECTOR)
Membership No.164370 DIN: 01080289 DIN: 05144280
Mumbai Mumbai
Place: Mumbai
Date: 08.05.2025
HASAN BOHRA
(COMPANY SECRETARY)
A73398
Mumbai
The following methods / assumptions were used to estimate the fair values:
Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying amount due to the
short-term maturities of these instruments.
Fair valuation of non-current financial assets has been disclosed to be same as carrying value as there is no significant difference between carrying
value and fair value.
Fair value of lease liabilities is estimated by discounting future cash flows using current rates (applicable to instruments with similar terms,
currency, credit risk and remaining maturities) to discount the future payouts.
The fair value is determined by using the valuation model/technique with observable/ non-observable inputs and assumptions.
There are no financial instruments measured at fair value through Other Comprehensive Income.
The fair value is determined by using the valuation model/technique with observable/ non-observable inputs and assumptions.
There are no financial instruments measured at fair value through Other Comprehensive Income. Similarly, there are no financial instruments which
are valued under category Level 1, Level 2 and Level 3.
The Company has exposure to the following risks arising from financial instruments:
Ý Credit risk ;
Ý Liquidity risk ; and
Ý Market risk
For detailed note on financial risk management refer to Note 37.
As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs
to spend at least 2% of its average net profit for the immediately preceding three financial years on
corporate social responsibility (CSR) activities. The areas for CSR activities are promoting education,
promoting gender equality by empowering women, healthcare, environment sustainability, destitute
care & rehabilitation and rural development projects. A CSR committee has been formed by the
Company as per the Act. The funds were primarily utilized through the year on these activities which
are specified in Schedule VII of the Companies Act, 2013:
Nature of CSR activities
Promoting education, promoting gender equality by empowering women, healthcare, environment
sustainability, art and culture, destitute care and rehabilitation, disaster relief, and rural development
projects.
Details of transactions with related party
“Kapurlal Tribhovandas Mehta Charitable Trust” is a trust jointly controlled by the KMPs of Medico
Remedies Limited, is a related party. For the year ending March 31, 2025, the Company has made
contributions to “Kapurlal Tribhovandas Mehta Charitable Trust” to fulfil its corporate social
responsibilities. “Kapurlal Tribhovandas Mehta Charitable Trust” supports programs in the areas of
education, rural development, healthcare, arts and culture, and destitute care. For details of related party
transactions refer to Note 33.
36. LEASE
The Company adopted Ind AS 116 “Leases” and applied the standard to the lease contracts using the
modified retrospective method. Consequently, the Company recorded the lease liability at the present
value of the lease payments discounted at the incremental borrowing rate and the right of use asset at
value equal to the lease liability subject to the adjustments for prepayments and accruals.
Set out below are the carrying amounts of lease liabilities recognised and the movements during the
year:
- The weighted average incremental borrowing rate used for discounting is 8%.
- Refer Note 27 for Interest on Lease Liabilities and Note 28 for Depreciation expense of right-of-
use assets recognised in Statement of Profit and Loss during the year.
The summary of practical expedients elected on initial application are as follows :
- The Company has availed the exemption of not recognising right of use assets and liabilities for leases
with less than 12 months of lease term on the date of initial application.
- The Company’s lease asset classes primarily consist of lease for buildings (Office Premises). Office
premises are generally for a period not exceeding five years and are renewable by mutual consent, on
mutually agreeable terms. There are no restrictions imposed by lease arrangement or contingent rent
payable.
The Company’s principal financial liabilities comprise trade and other payables. The main purpose of
these financial liabilities is to finance the company’s operations and to provide guarantees to support its
operation. The Company’s principal financial assets include trade and other receivables and cash and
cash equivalents that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The company financial risk
activities are governed by appropriate policies and procedures and that financial risk are identified,
measured and managed in accordance with the companies policies and risk objectives. The board of
directors reviews and agrees policies for managing each of these risk, which are summarized below:
a) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate
because of changes in market prices. Market risk comprises Interest rate risk and foreign currency
risk. Financial instruments affected by market risk includes loans and borrowing, deposits and other
non derivative financial instruments.
i) Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instruments
will fluctuate because of change in market interest rate. The company manages its interest
risk in accordance with the companies policies and risk objective. Financial instruments
affected by interest rate risk includes deposits with banks. Interest rate risk on these
financial instruments are very low as interest rate is for the period of financial instruments.
ii) Foreign Currency Risk
The company continuously manages its risks associated with foreign currency by adopting
various hedging strategies in consultation with internal and external experts. The Company
has a system of regularly monitoring its currency wise exposures. The significant part of
Company’s receivables are in US Dollars which operates as a natural hedge against each
other. The Company has a policy not to borrow in a currency where it has no business
exposure.
The analysis of the foreign currency risk from financial assets and liabilities as at March
31, 2025 was as follows :
b) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Company’s
receivables from customers. The company is exposed to credit risk from its financial activities
including trade receivable, deposits with banks, financial institutions and other financial
instruments. The maximum exposure to credit risk is equal to the carrying value of the financial
assets. The objective of managing counterparty credit risk is to prevent losses in financial assets.
The Company assesses the credit quality of the counterparties, taking into account their financial
position, past experience and other factors.
c) Financial Instruments and cash
Credit risk from balances with banks and financial institutions is managed in accordance with the
company's policy. Investment of surplus are made only with approved counterparty on the basis of
the financial quotes received from the counterparty.
d) Liquidity risk
Liquidity risk is the risk that the company will not be able to meet its financial obligations as they
become due. The company manages its liquidity risk by ensuring, as far as possible, that it will
always have sufficient liquidity to meet its liabilities when due, under both normal and stressed
conditions, without incurring unacceptable losses or risk to the company's reputation. The
company's principal sources of liquidity are cash and cash equivalents and the cash flow that is
generated from operations. The company believes that the working capital is sufficient to meet its
current operational requirements. Any short term- surplus cash generated, over and above the
amount required for working capital management and other operational requirements, are retained
as cash and investment in short term deposits with banks. The said investments are made in
instruments with appropriate maturities and sufficient liquidity.
38. CAPITAL MANAGEMENT
The Company’s capital management is intended to create value for shareholders by facilitating the
meeting of long-term and short-term goals of the Company. The Company determines the amount of
capital required on the basis of annual and long-term strategic plans. The Company’s policy is aimed at
combination of short-term and long-term borrowings. The Company monitors the capital structure on
the basis of ‘adjusted net debt’ to ‘adjusted equity’. For this purpose adjusted net debt is defined as total
liabilities comprising interest bearing loans and borrowings excluding lease liabilities under Ind AS
116, less cash and cash equivalents, bank balance and current investments. Adjusted equity comprises
Total equity.
39. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)
a) Relate to Taxation / Statutory dues;
(i) TDS; as per Traces website demand is reflected as Rs. 3.21 Lakhs the company is in process
of the identifying the reason for such demand and in process of revising/rectifying the TDS
returns.
(ii) Income Tax; A total demand of Rs. 20.02 Lakhs (Income Tax along with accrued interest)
for A.Y. 2010-11 & A.Y. 2017-18 is erroneously showing as outstanding to be payable on the
Income Tax Portal. The company has already settled this demand by opting the Vivad-se-
Vishwas Scheme and no demand is outstanding to be paid by the Company. The said issue is
conveyed to the Income Tax Department and accordingly the process to remove the same from
online portal is ongoing.
(iii) There is Outstanding demand alongwith interest on Income Tax website reflecting Rs.0.07
Lakhs pertaining to AY 2023-24.
b) The Company is not involved in other disputes, lawsuits, claims, inquiries and proceedings
including commercial matters that arise from time to time in the ordinary course of business.
The Company believes that there are no such pending matters that are expected to have any
material adverse effect on its financial statements in any given accounting period.
c) Estimated amount of contracts remaining to be executed on capital account (including
development of intangible assets) and not provided for Rs. 5 Lakhs (Previous year - Rs. 5
Lakhs).
40. There are no significant subsequent events that would require adjustments or disclosures in the
financial statements as on the balance sheet date.
41. Previous year figures have been regrouped wherever necessary to confirm to current year
classification.
42. ADDITIONAL REGULATORY DISCLOSURES AS PER SCHEDULE III OF
COMPANIES ACT, 2013
i. 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 the rules
made thereunder
ii. All applicable cases where registration of charges or satisfaction is required to be filed with
Registrar of Companies have been filed. No registration or satisfaction is pending at the years
ended 31st March, 2025 and 31st March, 2024.
iii. The Company has complied with the number of layers prescribed under clause (87) of Section
2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules,
2017.
iv. The Company has not advanced loaned or invested funds to any other person(s) or entity(ies)
including foreign entities (Intermediaries"), with the understanding, whether recorded in
writing or otherwise, 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 on behalf of the
Ultimate Beneficiaries.
v. The Company has not received any funds from any person(s) or entity(ies), including foreign
entities (“Funding Parties”), 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.
vi. The Company has not operated in any crypto currency or Virtual Currency transactions.
vii. There were no transactions not recorded in the Books of Accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act 1961.
viii. There are no transactions with the Companies whose name are struck off under Section 248 of
The Companies Act, 2013 or Section 560 of the Companies Act, 1956 during the year ended
31st March 2025 and 31st March 2024.
ix. The Company has not been declared wilful defaulter by any bank or financial institution or
government or any government authority.
x. The Company have not entered into any scheme of arrangement which has an accounting
impact on the current or previous financial year.
43. DISCLOSURES REQUIRED UNDER IND-AS AND SCHEDULE III OF COMPANIES
ACT,2013 (AS AMENDED)
The Company has made the disclosures at appropriates place regarding the relevant items or
transactions of balance sheet and statement of profit and loss. Any non-disclosure is due to non
occurrence of related transaction.
For V J Shah & Co
Chartered Accountants For and on behalf of Board of Directors
Firm Registration No.: Medico Remedies Limited
109823W
Chintan V Shah HARESH MEHTA HARSHIT MEHTA
Partner (CHAIRMAN & CFO) (MANAGINGDIRECTOR)
Membership No.164370 DIN: 01080289 DIN: 05144280
Mumbai Mumbai
Place: Mumbai
Date: 08.05.2025
HASAN BOHRA
(COMPANY SECRETARY)
A73398
Mumbai
| 