i) Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it i s 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 measured at management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. If, the effect of the
time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
j) Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of
resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.
Information on contingent liabilities is disclosed in the notes to the financial statements, unless the possibility of an outflow of resources embodying economic benefits
is remote.
k) Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company, and the revenue can be reliably measured regardless of
when the payment is being made. Revenue excludes goods and service tax which are collected by the Company on behalf of the Government and deposited to the
credit of respective Governments.
Sale of goods
Revenue from the sale of goods is recognized as revenue on the basis of customer contracts and the performance obligations contained therein. Revenue is
recognised at a point in time when the control of goods or services is transferred to a customer. Control lies with the customer if the customer can independently
determine the use of and consume the benefit derived from a product or service. Revenues from product deliveries are recognised at a point in time based on an
overall assessment of the existence of a right to payment, the allocation of ownership rights, the transfer of significant ri sks and rewards and acceptance by the
customer. Revenue from sales is based on the price in the sales contracts, net of Goods and Services Tax (GST). When a performance obligation is satisfied,
Revenue is recognised with the amount of the transaction price that is allocated to that performance obligation. Historical experience, specific contractual terms
and future expectations of sales returns are used to estimate and provide for damage or expiry claims. No element of financing is deemed present as the sales are
made with the normal credit terms as per prevalent trade practice and credit policy followed by the Company.
Interest income
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be
measured reliably. Interest income is accrued on, time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.
Export Incentives
Export incentives under various schemes notified by the Government are recognised as and when the right to receive is established.
Other non-operative income
Other non-operative income is recognised when no significant uncertainty as to its determination or realisation exists.
Contract assets: A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring
goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognized for the earned consideration that is
conditional.
Trade receivables: A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before
payment of the consideration is due).
Contract liabilities: A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration from the
customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liabili ty is recognized when the payment is
received.
l) Borrowing costs
Borrowing costs are interest and other costs incurred in connection with the borrowing of funds. Borrowing costs (for general and specific borrowings) directly
attributable to acquisition or construction of an asset which necessarily take a substantial period of time (qualifying assets) to get ready for their intended use are
capitalised as part of the cost of that asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.
m) Income tax
Income tax expense comprises current and deferred tax. It is recognised in statement of profit and loss, except to the extent that it relates to items recognised directly in
equity or in other comprehensive income.
Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in
respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if
any, related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting date.
Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the
asset and settle the liability on a net basis or simultaneously.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax
bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are
generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on
tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end
of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets and they are related to income taxes
levied by the same tax authority.
Current and deferred tax are recognised in the Statement of profit and loss, except when they relate to items that are recognised in other comprehensive income or
directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.
n) Lease
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The Company as a lessee
Right of use assets and lease liabilities
The Company considers whether a contract is, or contains a lease. A lease is defined as ‘a contract, or part of a contract, t hat conveys the right to use an asset (the
underlying asset) for a period of time in exchange for consideration’. The Company enters into leasing arrangements for various assets. To assess whether a
contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the
Company obtains substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the
use of the asset.
Recognition and initial measurement
At lease commencement date, the Company recognizes a right-of-use asset and a lease liability on the balance sheet. The right-of-use asset is measured at cost,
which is made up of the initial measurement of the lease liability, any initial direct costs incurred by the Company, an estimate of any costs to dismantle and
remove the asset at the end of the lease (if any), and any lease payments made in advance of the lease commencement date (net of any incentives received).
Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these
options when it is reasonably certain that they will be exercised.
Subsequent measurement
The Company depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of
use asset or the end of the lease term. The Company also assesses the right-of-use asset for impairment when such indicators exist.
At lease commencement date, the Company measures the lease liability at the present value of the lease payments unpaid at that date, discounted using the interest
rate implicit in the lease if that rate is readily available or the Company’s incremental borrowing rate. Lease payments included in the measurement of the lease
liability are made up of fixed payments (including in substance fixed payments) and variable payments based on an index or rate. Subsequent to initial
measurement, the liability will be reduced for payments made and increased for interest. It is re-measured to reflect any reassessment or modification, or if there
are changes in in-substance fixed payments. When the lease liability is re-measured, the corresponding adjustment is reflected in the right-of-use asset.
The Company has elected to account for short-term leases and leases of low-value assets using the practical expedients. Instead of recognizing a right-of-use asset
and lease liability, the payments in relation to these are recognized as an expense in standalone statement of profit and loss on a straight-line basis over the lease
term.
Where the Company is the lessor
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income
from operating lease is recognized on a straight-line basis or another systematic basis as per the terms of the relevant lease. Initial direct costs incurred in
negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental
income. Contingent rents are recognized as revenue in the period in which they are earned.
Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee. Amounts due from
lessees under finance leases are recorded as receivables at the Company’s net investment in the leases. Finance lease income is allocated to accounting periods so
as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.
o) Earnings per share
The Company presents basic and diluted earnings per share (EPS) data for its equity shares. Basic EPS is calculated by dividing the profit or loss attributable to equity
shareholders of the Company by the weighted average number of equity shares outstanding during the period.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the parent (after adjusting for interest on the convertible preference shares)
by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of
all the dilutive potential Equity shares into Equity shares.
p) Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. Managing Director and Chief
Financial Officer of the Company are the chief operating decision makers.
q) Foreign currency transactions and translations
Foreign currency transactions are recorded in the functional currency, by applying the exchange rate between the functional currency and the foreign currency at the
date of the transaction.
Foreign currency monetary items outstanding at the balance sheet date are converted to functional currency using the closing rate. Non-monetary items denominated in
a foreign currency which are carried at historical cost are reported using the exchange rate at the date of the transactions.
Exchange differences arising on monetary items on settlement, or restatement as at reporting date, at rates different from those at which they were initially recorded,
are recognized in the Standalone Statement of Profit and Loss in the year in which they arise.
Policies not specifically mentioned are consistent with generally accepted accounting principles.
s) Recent Accounting Pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as
issued from time to time. For the year ended 31st March, 2025, MCA has not notified any new standards or amendments to the existing standards applicable to the
Company.
Note
0 The actuarial valuation of the present valuation of defined benefit obligation were carried out as at 31st March, 2025. The present value of defined benefit
obligation and the related current service cost, were measured using the projected unit credit method.
ii) Discount rate is based on the prevailing market yields of Indian Government Securities as at the balance sheet date for the estimated term of obligation.
iii) The salary escalation rate is arrived after taking into consideration the seniority, the promotion and other relevant factors, such, as, demand and supply in
employment market.
Description of Risk Exposures:
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow
A. Salary Increases: Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the
liability.
B. Investment Risk: If Plan is funded then assets liabilities mismatch and actual investment return on assets lower than the discount rate assumed at the last
valuation date can impact the liability.
C. Discount Rate: Reduction in discount rate in subsequent valuations can increase the plan’s liability.
D. Mortality & disability: Actual deaths and disability cases proving lower or higher than assumed in the valuation can impact the liabilities.
Note 39 Capital Management
For the purpose of the Company’s capital management, capital includes issued capital and all other equity reserves attributab le to the equity shareholders of the Company.
The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to
maximize shareholder value.
Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. The Company
manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.
To maintain or adjust the capital structure, the Company may return capital to shareholders, raise new debt or issue new shares.
The Company monitors capital on the basis of the debt to capital ratio, which is calculated as interest-bearing debts divided by total capital (equity attributable to owners
of the parent plus interest-bearing debts).
B. Financial Risk Management
The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company has exposure to the following risks
arising from financial instruments:
- Credit risk;
- Liquidity risk; and
- Market risk
Credit risk
Credit risk refers to the risk that a 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 mitigati ng the risk of financial loss from defaults. The Company’s exposure and wherever
appropriate, the credit ratings of its counterparties are continuously monitored and spread amongst various counterparties. Credit exposure is controlled by
counterparty limits that are reviewed and approved by the management of the Company. Financial instruments that are subject to concentrations of credit risk,
principally consist of balance with banks, investments in debt instruments/ bonds, trade receivables, loans and advances and derivative financial instruments. None
of the financial instruments of the Company result in material concentrations of credit risks.
Balances with banks were not past due or impaired as at the year end. In other financial assets that are not past dues and not impaired, there were no indication of
default in repayment as at the year end.
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors
that may influence the credit risk of its customer base, including the default risk of the country in which customers operate.
Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering
cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its
liabilities when they are fallen due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s
reputation.
The Company believes that its liquidity position, including total cash and cash equivalent and bank balances other than cash and cash equivalent of ? 178.67
Lakhs as at 31st March 2025 (Previous Year ? 90.50 Lakhs), and anticipated future internally generated funds from operations will enable it to meet its future
known obligations in the ordinary course of business. However, if a liquidity needs were to arise, the Company believes it has access to financing arrangements,
value of unencumbered assets, which should enable it to meet its ongoing capital, operating, and other liquidity requirements. The Company will continue to
consider various borrowing or leasing options to maximize liquidity and supplement cash requirements as necessary.
The table below provides amortized value of (discounted) cash flows towards non-derivative financial liabilities into relevant maturity based on the remaining
period at the balance sheet to the contractual maturity date.
Market risk
Market risk is the risk of loss of future earnings, fair value or future cash flows arising out of change in the price of a financial instrument. These include change as
a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments.
Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans
and borrowings.
The Company manages market risk through a risk management committee engaged in, inter alia, evaluation and identification of risk factors with the object of
governing/ mitigating them according to Company’s objectives and declared policies in specific context of impact thereof on various segments of financial
instruments (Fixed deposits). The Board provides oversight and reviews the Risk management policy on a quarterly basis.
a) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to
balance the Company’s position with regards to interest income and interest expense and to manage the interest rate risk, treasury performs a comprehensive
interest rate risk management.
The Company is not exposed to significant interest rate risk as at the respective reporting dates.
b) Foreign currency risk management
Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is
exposed to the effects of fluctuation in the prevailing foreign currency exchange rates on its financial position and cash flows. Exposure arises primarily due to
exchange rate fluctuations between the functional currency and other currencies from the Company’s operating, investing and financing activities.
Note 43 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) of the Company.
Managing Director and Chief Financial Officer of the Company are the chief operating decision makers. The Company operates in a solitary business segment i.e.,
‘pharmaceuticals formulations only’, which primarily includes marketing and distribution of pharmaceutical products, hence does not have any reportable Segments as per
Indian Accounting Standard 108 “Operating Segments”.
@ Earnings available for debt service = Net profit after taxes Depreciation Finance costs - Profit on sale of property, plant and equipments
Explanation for change in the ratio by more than 25%
1. Due to decrease in net profit after tax.
Note 53 Additional Regulatory Disclosures as per Schedule III of the Companies Act, 2013
a) The Company doesn’t have any immovable property and investment property.
b) As per the Company’s accounting policy, Property, Plant and Equipment (including Right of Use Assets) are carried at historical cost (less accumulated depreciation
and impairment, if any), hence the revaluation related disclosures required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is
not applicable.
c) The Company has not granted Loans or Advances in the nature of loan to any promoters, Directors, KMPs and the related parties (As per the Companies Act, 2013),
which are repayable on demand or without specifying any terms or period of repayments.
d) 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.
e) The Company has availed cash credit facility from the bank and have regularly filed returns or statements with the banks, same are in agreement with the books of
account of the Company.
f) The Company has adhered to debt repayment and interest service obligations on time. Wilful defaulter related disclosures required as per Additional Regulatory
Information of Schedule III (revised) to the Companies Act, is not applicable.
Note 53 Additional Regulatory Disclosures as per Schedule III of the Companies Act, 2013 (Contd.)
g) 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.
h) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies (ROC) beyond the statutory period.
i) 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, is
not applicable.
j) No scheme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of the Companies Act, 2013.
k) 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:
i) 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
ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiary
l) The Company have 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 lend or invest in other persons or entities identified 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 beneficiary
m) The Company has not operated in any crypto currency or Virtual Currency transactions.
n) During the year the Company has not disclosed or surrendered, any income other than the income recoginsed in the books of accounts in the tax assessments under
Income Tax Act, 1961.
Note 54
The figures of the financial statements are represented as ? in lakhs upto two decimal places leaving the scope of rounding up variations.
The figures of the previous year have been re-grouped / re-classified to render them comparable with the figures of the current year.
In terms of our report attached
for N Kumar Chhabra and Co. for and on behalf of the Board of Directors
Chartered Accountants
ICAI Firm Registration Number 00837N
CA. Ashish Chhabra Sanjeev Kumar Sanjay Dhir Manju Bala Adarsh Sharma
FCA, Partner Managing Director cum Whole Time Director Company Secretary Chief Financial Officer
Membership Number 507083 Chief Executive Officer DIN 02452461 Membership Number A67831 PAN: AMYPS7789J
Place : Chandigarh DIN 01154896
Date : 12th May, 2025 Place : Chandigarh
UDIN: 25507083BMKNGT7070 Date : 12th May, 2025
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