i) Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that 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 th at 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 risks 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., onl y 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
liability 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
For any new contracts entered into on or after 1st April, 2019, the Company considers whether a contract is, or contains a lease. A lease is
defined as 'a contract, or part of a contract, that 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.
n) 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.
o) Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or
before the end of the reporting period but not distributed at the end of the reporting period.
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.
r) Policies not specifically mentioned are consistent with generally accepted accounting principles.
s) 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.
t) Exceptional Items
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, 2024, 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, 2024. 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.
For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves attributable 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).
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached
to the interest-bearing loans and borrowings that define capital structure requirements.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31st March, 2024 and 31st March, 2023.
Loan covenants
Under the terms of the major borrowing facilities, the Company is required to comply with certain financial covenants which include Debt Service
Coverage Ratio (DSCR), Fixed Asset Coverage Ratio (FACR) etc. The Company has complied with these covenants throughout the reporting period.
Note 41 Financial instruments - Fair values and risk management ? in Lakhs
A. Financial instruments - by category and fair values hierarchy
The following table shows the carrying amounts and fair value of financial assets and financial liabilities, including their levels in the fair value
hierarchy.
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 mitigating 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.
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 p ossible, 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 ^ 90.50 Lakhs as at 31st March 2024 (Previous Year ^ 162.81 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 includi ng 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 e xchange 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 44 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 op erates 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".
Note 45 disclosure as per Ind AS 8 - 'Accounting Policies, Changes in Accounting Estimates and Errors'
Certain reclassifications have been made to the comparative period's financial statements to enhance comparability with the current year's financial
statements.
Note 46 Disclosures regarding leases as per Ind As 116 'Leases'
Assets taken on operating lease
The Company has leases for office building, warehouses and related facilities. With the exception of short-term leases and leases of low-value
underlying assets, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability. Variable lease payments which do not
depend on an index or a rate are excluded from the initial measurement of the lease liability and right of use assets. The Company classifies its right-
of-use assets in a consistent manner to its property, plant and equipment.
Certain changes/ updates have been made in the policies and notes to accounts for improved disclosures. There is no impact on the financial
statements due to these changes, however, the policy numbers have been rearranged in the current year as required.
Note 51 Disclosure as per Ind AS 36 ‘Impairment of Assets'
The Company has reviewed the carrying amount of its tangible and intangible assets (being a cash generating unit) with its future present value of
cash flows and there has been no indication of impairment of the carrying amount of the Company's such Assets taking consideration into external
and internal sources of information.
Note 52 Event occurring after reporting date
No adjusting or significant non-adjusting events have occurred between 31st March, 2024 and the date of authorisation of the Company's financial
statements.
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
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 sanctioned facilities from banks on the basis of security of current assets [against stock and book debts (in previous year,
against fixed deposit receipt)]. As such there is no requirement of periodic returns to be filed by the Company with such banks.
f) The Company has not been declared as Willful defaulter by bank or financial institution so related disclosures required as per Additional
Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable.
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, 2024.
h) 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 year ended 31st March, 2024.
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 55
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
FCA, Partner Sanjeev Kumar Sanjay Dhir Akshay Saxena Adarsh Sharma
Membership Number 507083 Managing Director cum Whole Time Company Secretary Chief Financial Officer
Place : Chandigarh Chief Executive Officer Director Membership Number A52388 PAN: AMYPS7789J
Date : 20th May, 2024 DIN: 01154896 DIN: 02452461
UDIN: 24507083BKBLWN2597 Place : Chandigarh
Date : 20th May, 2024
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