2.18 Provisions, Contingent Liabilities, Contingent Assets and Commitments
Provisions (legal and constructive) are recognised when the Company has a present obligation (legal or constructive) as a
result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can
be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation
at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a
provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present
value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third
party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of
the receivable can be measured reliably.
Contingent liability is disclosed in the case of:
• a present obligation arising from past events, when it is not probable that an outflow of resources will be required to
settle the obligation;
• a present obligation arising from past events, when no reliable estimates is possible;
• a possible obligation arising from past events, unless the probability of outflow of resources is remote.
Contingent liabilities are not recognised but disclosed in the financial statements. Contingent assets are neither
recognised nor disclosed in the financial statements.
Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets and
non cancellable operating lease.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.
2.19 Application of New Revised Ind AS
Ministry of Corporate Affairs ("MCA”) notifies new standard or amendments to the existing standards. There is no such
notification which would have been applicable from April 1,2024.
2.20 Critical Estimates and Judgements
In the course of applying the policies outlined in all notes under section 2 above, the Company is required to make
judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent
from other sources. The estimates and associated assumptions are based on historical experience and other factors that
are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the
revision and future period, if the revision affects current and future period.
2.21 Key sources of estimation uncertainty
i. Useful lives of property, plant and equipment and intangible assets
Management reviews the useful lives of property, plant and equipment and intangible assets at least once a year. Such
lives are dependent upon an assessment of both the technical lives of the assets and also their likely economic lives based
on various internal and external factors including relative efficiency and operating costs. Accordingly depreciable lives
are reviewed annually using the best information available to the management.
ii. Provisions and liabilities
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of
funds resulting from past operations or events that can reasonably be estimated. The timing of recognition requires
application of j udgement to existing facts and circumstances, which may be subject to change. The amounts are
determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of
the time value of money and the risks specific to the liability.
iii. Contingencies
In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company.
Potential liabilities that are possible but not probable of crystallising or are very difficult to quantify reliably are treated as
contingent liabilities. Such liabilities are disclosed in the notes but are not recognized.
iv. Fair value measurements
When the fair values of financial assets or financial liabilities recorded or disclosed in the financial statements cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the
DCF model. The inputs to these models are taken from observable markets where possible, but where this is not
feasible, a degree of judgment is required in establishing fair values. Judgements include consideration of inputs such as
liquidity risk, credit risk and volatility.
v. Income Taxes
The Company's tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits for the
purpose of paying advance tax, determining the provision for income taxes, including amount expected to be
paid/recovered for uncertain tax positions. A tax assessement can involve complex issues, which can only be resolved
over extended time periods. The recognisation of taxes that are subject to certain legal or economic limits or
uncertainties is assessed j ndividually by the managment based on the specific facts and circumstances.
vi. Defined benefit obligations
The costs of providing pensions and other post-employment benefits are charged to the Statement of Profit and Loss in
accordance with Ind AS 19 ‘Employee benefits' over the period during which benefit is derived from the employees'
services. The costs are assessed on the basis of assumptions selected by the management. These assumptions include
salary escalation rate, discount rates, expected rate of return on assets and mortality rates. The same is disclosed in
Note 40, ‘Employee benefits'.
vii. Allowance for uncollected accounts receivable and advances
Trade receivables do not carry any interest and are stated at their normal value as reduced by appropriate allowances for
estimated irrecoverable amounts. Individual trade receivables are written off when management deems them not
collectible. Impairment is made on the expected credit losses, which are the present value of the cash shortfall over the
expected life of the financial assets.
The impairment provisions for financial assets are based on assumption about risk of default and expected loss rates.
Judgement in making these assumption and selecting the inputs to the impairment calculation are based on past history,
existing market condition as well as forward looking estimates at the end of each reporting period.
viii. Impairment reviews
An impairment exists when the carrying value of an asset or cash generating unit (‘CGU') exceeds its recoverable
amount. Recoverable amount is the higher of its fair value less costs to sell and its value in use. The value in use calculation
is based on a discounted cash flow model. In calculating the value in use, certain assumptions are required to be made in
respect of highly uncertain matters, including management's expectations of growth in EBITDA, long term growth rates;
and the selection of discount rates to reflect the risks involved.
ix. Inventories
The Company estimates the net realisable value (NRV) of its inventories by taking into account their estimated selling
price, estimated cost of completion, estimated costs necessary to make the sale, obsolescence by applying certain
percentages over different age category of such inventories, expected loss rate considering the past trend and future
outlook.Inventories are written down to NRV where such NRV is lower than their cost.
x. Sales Return
For Information about judgements made in applying the accounting policies for sales return that have the most significant
effects on the amounts recognised in the financial statements is included in notes 2.11 above.
3.1 : Impairment Losses Recognised in the Year
There are no impairment losses recognised during the year.
3.2 : Assets Pledged as Security
3.2.1 : Factory Buildings, Plant and Equipments, Plant and Equipments (R & D), Furniture and Fixture, Office Equipments,
Electrical Installations and Computers having carrying value of W 46,182.55 lakhs (as at March 31st, 2024: W 12,254.72
lakhs) have been pledged to secure borrowings of the Company (Refer Note 19 and 24). The Company is not allowed to
pledge these assets as security for other borrowings or to sell them to another entity, except items specifically pledged to
other.
3.2.2 : Vehicles having carrying value of W 233.85 lakhs (as at March 31st, 2024: W 94.27 lakhs) have been hypothecated by way
of first charge on the vehicles acquired under the specific facility granted.
3.3 : The Company has not revalued its Property, Plant and Equipment during the year ended March 31st, 2025.
3.4 : Lease Hold Land having carrying value of W 1009.20 lakhs (as at March 31st, 2024: W 968.92 lakhs) have been pledged to
secure borrowings of the Company (Refer Note 19). The Company is not allowed to pledge these assets as security for
other borrowings or to sell them to another entity, except items specifically pledged to other.
3.5 : The Company has incurred total Research & Development expenses of Capital nature are W 486.03 Lakhs during the
year ended March 31st, 2025 out of which W 440.62 belongs to Plant & Machinery and W 45.41 Lakhs belongs to
Furniture & Fixtures and Computer.
18.1 The Capital reserve is created on receipts of government grants for setting up of tissue culture division in the earlier
years and on account of business combination.
18.2 The General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As
the general reserve is created by a transfer from one component of equity to another and is not an item of other
comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.
18.3 Security Premium is created through premium received on issue of shares. The reserve is to be utilised in accordance
with provisions of the Companies Act, 2013.
18.4 The company has paid dividend of W 0.10 per share on September 25th, 2024 totalling to W 100.28 lakhs for the year
ended March 31st, 2024 (Previous year : W 0.10 per share totalling to W 96.94 lakhs) was paid to the holders of fully paid
equity shares.
18.5 Employee stock options is used to record the share based payments, expense under the various schemes as per SEBI
regulations. The reserve is used for the settlement of ESOP (refer note 49).
19.1 Summary of Borrowing Arrangements
The terms of repayment of term loans and other loans are stated below:
(a) Term Loans from Saraswat Bank
Collateral Security
1) Factory Land and Building bearing gram panchayat house no. 140 to 140/5 and 141 to 141/5 with all building and
structure on land survey no. 171 and 195/3, situated at national highway no. 8, near GEB grid and Tisco Village,
Kabilpore, Dist : Navsari - 396424 in the name of M/s Gufic Pvt. Ltd.
2) Movable Fixed Assets at Navsari.
3) Factory Land and Building Plot No. 48, Smart Industrial Park, Near NATRIP Pithampur, Dhar, Madhya Pradesh -
454774.
4) Movable Fixed Assets at Indore, Madhya Pradesh.
5) Movable Fixed Assets at Arisia, 6th Floor, S.M. House, 11, Sahakar Road, Vile Parle East, Mumbai 400057.
Guarantees
It is also secured by Personal guarantee of Managing Director and Chief Executive Officer and a corporate guarantee
(restricted to the exposure of ' 3,640/- Lakhs) from Gufic Private Limited ( Company in which directors are interested).
Terms of Repayment
Amount disbursed under the term loan shall be repaid in monthly installements varying from ' 18,00,000/- to '
86,90,000/- (March 31st, 2024 : ' 18,00,000/- to ' 32,14,000/-)(excluding interest) over a period of 1 to 84 months.
Rate of Interest
The Rate of Interest is PLR- 7.25% p.a. i.e subject to minimum 8.65% p.a. for Term Loan and shall be payable on monthly
basis. (Effective Interest rate as on March 31st, 2025 was 8.65%)
(b) Term Loans from HDFC Bank
Security
(i) The loans are secured by first pari passu charge on all Movable Fixed Assets (Plant & Machinery) of the group, both
Navsari and Pithampur, Indore.
(ii) Second Pari passu charge on entire present and future current asset of the Company, both at Navsari and Pithampur,
Indore.
(iii) First pari passu charges on all Immovable assets property situated at Plot No - 48, Smart Industrial Park, Near Natrip,
Pithampur, Indore, District: Dhar - 454775 owned by Gufic Biosciences Limited. "
Terms of Repayment
Amount disbursed under the term loan shall be repaid in monthly installements varying from ' 3,52,561/- to ' 21,55,494/-
(March 2024'3,52,561/- to ' 21,16,092/-) (excluding interest), over a period of 1 to 84 months starting from October
2024 i.e. after morotorium period of 18 months.
Rate of Interest
The Rate of Interest is 3M T Bill 1.57 % and shall be payable on monthly basis. (Effective Interest rate as on March 31st,
2025 was 7.69% to 8.00%)
(c) Vehical Loans from Saraswat Bank
Security
(i) Are secured by first charge by way of hypothecation of vehicles acquired under the specific facility granted.
(ii) Carrying value of the fixed assets pledged is ' 233.85 lakhs. ( March 31st, 2024 : ' 94.27 lakhs).
Terms of Repayment
Amount disbursed under the term loan shall be repaid in monthly installements varying from ' 31,614/- to ' 3,10,528/-
(March 31st, 2024'34,701/ to ' 1,57,505/-) (including Interest), over a period of 1 to 36 months.
Rate of Interest
The Rate of Interest is between 6.75 % to 8.60 % p.a. (March 31st, 2024 : 6.75% to 8.65% p.a.) and shall be payable on
monthly basis.
There are no breach of contractual terms of the borrowings during the year ended March 31st, 2025 and March 31st, 2024.
24.1 Working Capital facilties from Saraswat Bank
Collateral Security
For Collateral Security Refer Note 19.1(a).
Guarantees
For Guarantees Refer Note 19.1(a).
Terms of Repayment
Repayable on Demand.
Rate of Interest
The Rate of Interest is PLR- 7.25 % p.a. i.e subject to minimum 8.25% p.a. for Cash Credit limit and PLR- 7.50 % p.a. i.e
subject to minimum 8.00% p.a. for Working Capital Demand Loan. (Effective Interest rate as on March 31st, 2025 was
8.50%)
24.2 Working Capital facilties from HDFC Bank
Collateral Security
(I) The loans are secured by second pari passu charge on all Movable Fixed Assets (Plant and Machinery) of the
Company, both Navsari and Pithampur, Indore.
(ii) First Pari passu charge on entire present and future current asset of the group, both at Navsari and Pithampur, Indore
and Arisia-Mumbai
(iii) Second pari passu charges on all Immovable assets property situated at Plot No - 48, Smart Industrial Park, Near
Natrip, Pithampur, Indore, District: Dhar - 454775 owned by Gufic Biosciences Limited. L&B bearing gram
panchayat house no. 140 to 141/5, plot area admeasuring about 3,22,218.96 sq. feet. More or less together with all
buidling and structure on land survey no. 171 and 195/3, situated at national highway no. 8, Near GEB grid and Tisco
Village, Kobilpore, Dist : Navsari - 396424 owned by Gufic Private Limited.
Guarantees
It is also secured by Personal guarantee of Managing Director and Chief Executive Officer and a corporate guarantee
from Gufic Private Limited ( Company in which directors are interested).
Terms of Repayment
Repayable on Demand.
Rate of Interest
The Rate of Interest is 3M T Bill 1.61 % and shall be payable on monthly basis. (Effective Interest rate as on March 31st,
2025 was 8.25% to 8.35%)
24.3 Working Capital facilties from Axis Bank
Collateral Security
(I) The loans are secured by second pari passu charge on all Movable Fixed Assets of the company.
(ii) First Pari passu charge on entire present and future current asset of the company, both at Navsari and Pithampur,
Indore and Arisia - Mumbai.
(iii) Second pari passu charges on all Immovable assets (Land and Building) property situated at Plot No - 48, Smart
Industrial Park, Near Natrip, Pithampur, Indore, District: Dhar - 454775 owned by Gufic Biosciences Limited. L&B
bearing gram panchayat house no. 140 to 141/5, plot area admeasuring about 3,22,218.96 sq. feet. More or less
together with all buidling and structure on land survey no. 171 and 195/3, situated at national highway no. 8, Near
GEB grid and Tisco Village, Kabilpore, Dist : Navsari - 396424 owned by Gufic Private Limited.
Guarantees
It is also secured by Personal guarantee of Managing Director and Chief Executive Officer and a corporate guarantee
from Gufic Private Limited ( Company in which directors are interested).
Terms of Repayment
Repayable on Demand.
Rate of Interest
The Rate of Interest is Repo rate 2% and shall be payable on monthly basis. (Effective Interest rate as on March 31st,
2025 was 8.50%)
There are no unrecognized deferred tax assets and liabilities as at March 31st, 2025 and March 31st, 2024. Further significant
management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and
recoverability of deferred income tax assets.
Note 37. Segment Information
37.1 Basis for segmentation
Based on the "Management approach" as defined in IND AS 108, the Chief Operating Decision Maker (CODM) does not
evaluate the Group Performance", separately and hence the total business needs to be treated as one segment,
"Pharmaceutical and related products". The products being sold under this segment are of similar nature and comprise of
pharmaceutical products only.
The Chief Operating Decision Maker (CODM) monitors the geographic segment of its business separately for the purpose of
making decisions about resource allocation and performance assessment.
Geographical segments
Revenue is segregated into two segments namely India (sales to customer within India) and other countries (sales to customer
outside India) on the basis of geographical location of customers for the purpose of reporting geographical segments. Segment
asset are based on the geographical location of the asset.
Information about Major Customers
No Single Customer Account for 10% or More than 10% of Revenue from operation during the year ended March 31st, 2025.
and March 31st, 2024
Note. 38 Lease
The Group have taken various premises under operating lease. These are generally cancellable and ranges from 11 months to 5
years and are renewable by mutual consent on mutually agreeable terms. Some of these lease agreements have price escalation
clauses. There are no restrictions imposed by these lease arrangements and there are no sub leases. There are no contingent
rents.
The interest rate applied to lease liabilities is 10.00%.
Level 1 - Level 1 Hierarchy includes financial instruments measured using quoted prices. This includes mutual funds that have
declared buyback NAV The mutual funds are valued using the closing NAV
Level 2 -The fair value of financial instruments that are not traded in an active market (like Mark to Market Derivative) is
determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-
specific estimates. If all significant inputs required to fair value as 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.
42.3 Financial Risk Management
Group has exposure to following risks arising from financial instruments:
• Credit Risk
• Liquidity Risk
• Market Risk
• Currency Risk
• Commodity Risk
Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk
management framework. Management is responsible for developing and monitoring the Company's risk management policies,
under the guidance of the Audit Committee.
Company's risk management policies are established to identify and analyse the risks faced by it, to set appropriate risk limits
and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to
reflect changes in market conditions and the Company's activities. Company, through its training and procedures aims to
maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
Company's Audit committee oversees how management monitors compliance with the Company's risk management policies
and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.
The Audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews
of risk management controls and procedures, the results of which are reported to the Audit committee.
42.3.ICredit risk
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Group.
Before accepting any new customer, the company evaluates the credit worthiness of the potentional customers based on past
history and other external inquiries as deemed appropriate. The Group also obtains the necessary KYC documents from all the
customer for assessing the credit quality and defines the credit limits accordingly. Limits and scoring attributed to customers are
reviewed once a year.
Customer credit risk is managed by each business unit subject to the Group established policy, procedures and control relating
to customer credit risk management. Trade receivables, which are no interest bearing, are mainly from stockists, distributors
and customers and are generally on 30 days to 180 days credit. To manage the credit risk from trade receivables, the Group
periodically assess financial reliability of customers, taking into account the financial condition, current economic trends, and
analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly. The Group considers
the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an
ongoing basis through each reporting period.
As at March 31st, 2025, The Group had - 10 customers, (March 31st, 2024: 10 customers) that owed the group more than
? 19,816.80 lakhs (March 31st, 2024: ? 15,924.78 Lakhs) and accounted for approximately - 62.99 % and 48.27 %
respectively of the total outstanding as at March 31st, 2025 and March 31st, 2024.
42.3.2 Liquidity risk management
Liquidity risk is the risk that the Group may not be able to meet its present and future cash and collateral obligations without
incurring unacceptable losses. The Group objective is to, at all times maintain optimum levels of liquidity to meet its cash and
collateral requirements. The Group closely monitors its liquidity position and deploys a robust cash management system. It
maintains adequate sources of financing including bilateral loans, debt, and overdraft from banks at an optimised cost. Working
capital requirements are adequately addressed by internally generated funds. Trade receivables are kept within manageable
levels.
42.4 Market risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market
rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-
sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-
sensitive financial instruments, all foreign currency receivables and payables and all short term and long-term debt. The Group
is exposed to market risk primarily related to foreign exchange rate risk and interest rate risk. Thus, the Group exposure to
market risk is a function of borrowing activities and revenue generating and operating activities in foreign currencies.
42.4.1 Interest Rate Risk Management
The Group is exposed to interest rate risk because it borrows funds from banks and institutions at both fixed and floating
interest rates. The risk is managed by the Group by maintaining an appropriate mix between fixed and floating rate borrowings.
The Group exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management
section of this note.
42.4.1.1 Interest Rate Sensitivity Analysis
The sensitivity analyses below have been determined based on the exposure to interest rates at the end of the reporting period.
A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and
represents management's assessment of the reasonably possible change in interest rates.
If interest rates had been 1% higher/lower and all other variables were held constant, the company's (Contracted Interest Rate
on all the borrowing) profit for the year ended March 31,2025 would decrease/increase by W 323.81 Lakhs. (for the year ended
March 31st, 2024 decrease/increase by W 288.06 Lakhs). This is mainly attributable to the company's exposure to interest rates
on its variable rate borrowings
42.4.2 Currency risk
The Group is also exposed to foreign currency risk on certain transactions that are denominated in a currency other than the
Group functional currency; hence exposures to exchange rate fluctuations arise. The risk is that the functional currency value of
cash flows will vary as a result of movements in exchange rates. The Group foreign exchange risk arises from foreign currency
revenues and expenses, (primarily in US Dollars, Euros and GBP). As a result, if the value of the Indian rupee appreciates
relative to these foreign currencies, the Group revenues and expenses measured in Indian rupees may decrease or increase and
vice-versa. The exchange rate between the Indian rupee and these foreign currencies have changed substantially in recent
periods and may continue to fluctuate substantially in the future.
The following table analyses foreign currency risk as at the year end that have not been mitigated by a derivative instrument or
otherwise are as below:
42.5 Commodity Rate Risk
Exposure to market risk with respect to commodity prices primarily arises from the Group's purchases and sales of active
pharmaceutical ingredients, including the raw material components for such active pharmaceutical ingredients. These are
commodity products, whose prices may fluctuate significantly over short periods of time. The prices of the Group's raw
materials generally fluctuate in line with commodity cycles, although the prices of raw materials used in the Group's active
pharmaceutical ingredients business are generally more volatile. Cost of raw materials forms the largest portion of the Group's
cost of revenues. Commodity price risk exposure is evaluated and managed through operating procedures and sourcing
policies. As of March 31st, 2025, the Group had not entered into any material derivative contracts to hedge exposure to
fluctuations in commodity prices.
42.6 Fair value measurements
The investment of the company are not readily marketable. Further the company has invested in the securities for the purpose
of obtaining the credit facilities. Thus in this case the cost of the security represents the fair value.
Employee Stock Plan (‘ESOP’)
The Group has implemented Employee Stock Option Plan 2023 (‘ESOP 2023') as approved by the shareholders on 29th
September, 2023. The ESOP 2023 covers all present and future permanent employees of the Group working in India or outside
India, Employees of present and future Group Companies including Subsidiary or Associate Company(ies) in India or outside
India and/or directors whether a whole-time director or not and/or such other persons, as may be permitted from time to time,
under applicable Laws, rules and regulations and/or amendments thereto from time to time, are eligible to participate in this
ESOP 2023 [collectively "eligible employees"]. The nomination and remuneration committee of the Board of Gufic Biosciences
Limited administers the ESOP 2023 and grants stock options to eligible employees.
Note 50 . Disclosure Of Transactions With Struck Off Companies .......... V
The Company did not have any material transactions with companies struck off under Section 248 of the Companies Act, 2013
or Section 560 of Companies Act, 1956 during the financial year.
Note 51. No transactions to report against the following disclosure requirements as notified by MCA pursuant
to amended
Schedule III:
(a) Crypto Currency or Virtual Currency
(b) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder
(c) Registration of Charges or Satisfaction with Registrar of Companies
(d) Relating to Borrowed funds:
i. Wilful Defaulter
ii. Utilisation of Borrowed Funds and Share Premium
iii. Discrepancy in Utilisation of Borrowings
(e) The Group does not have any such transaction which is 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.
(f) The Group is in compliance 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.
Note 52.
IIn the opinion of the management inventories of ' 21,686.90 Lakhs (as at March 31st, 2024: ' 20,048.21 Lakhs) shown in
Balance Sheet are good and do not include any slow moving, or dead stock. Due provision is made for the near expiry material
and depletion in its value, if any. In the opinion of the management, all the current assets including inventories, loans and
advances have a value on a realisation in the ordinary course of business at least equal to the amount at which they are stated in
the Balance Sheet.
Note 53.
"The group has given security deposit of ' 350 Lakhs (as at March 31st, 2024: ' 350 Lakhs) to Gufic Private Limited towards the
use of its factory premises at Navsari for its manufacturing activities. Accordingly an amount of ' 350 Lakhs has been shown
under the head Security deposit with related parties.
Group has also given Security Deposit to Gufic Chem Private Limited of ' 36 Lakhs (as at March 31st, 2024: ' 36 Lakhs) towards
supply of products at concessional rate to the group and the same has been show under the head Security deposit with related
parties.
Note 54. Provision of anticipated Return of Goods subsequent to Sale:
Provision has been made towards probable return of goods from customers, as per Indian Accounting Standard (Ind AS) 37
estimated by management based on past trends.
Note 55
Declaration of Dividend
The Board of Directors at its meeting held on May 30th, 2025 has recommended a final dividend of ' 0.10 per equity share i.e.,
@ 10% on the face value of ' 1/- each, for the financial year 2024 - 25, subject to the approval of the shareholders at the ensuing
Annual General Meeting.
Note 56
The Company has incorporated Gufic UK Limited ("GUL") in United Kingdom on March 15, 2022, Gufic Ireland Limited ("GIL")
in Ireland on March 02, 2023, Veira Life FZE ("VLF") in Dubai, UAE on March 25, 2024 and Gufic Prime Private Limited ("GPPL”)
in India on November 18, 2023, with the intention of making GUL, GIL and VLF its Wholly Owned Subsidiaries and GPPL as its
Subsidiary Company. As of March 31,2025, neither investment have been made in GIL nor they have begun their business
operations. Consequently, there was no need to consolidate the accounts of GIL with the Company. Whereas the Company
have been invested in GUL, VLF and GPPL by subscribing to its shares. Consequently, the consolidated financial Statement of
financial year ended March 31st, 2025, have been prepared by the Company considering the financials of GUL, VLF and GPPL.
Note 57
Authorisation of Financial Statements
The financial statements for the year ended March 31st, 2025 were approved by the Board of Directors on May 30th, 2025 and
are subject to approval of the shareholders at the Annual General Meeting.
Note 58
"With effect from April 1,2023, the Ministry of Corporate Affairs (MCA) has made it mandatory for every company, which uses
accounting software for maintaining its books of account, to use only such accounting software which has a feature of recording
audit trail of each and every transaction, creating an edit log of each change made in books of account along with the date when
such changes were made and ensuring that the audit trail cannot be disabled.
The Company used software SAP to maintain its books of accounts. SAP software records the audit trail of each and every
transaction created in books of account along with the date when such changes were made.
With a view to address the above challenges while ensuring compliance with the MCA notification and mitigate the risks
involved therein, the Company has appropriately designed and implemented alternate mitigating controls over direct change at
database level.
Note 59
Figures for the previous year have been rearranged/recompanyed as and when necessary in terms of current year's
companying.
As per our Report of even date
For Mittal Agarwal & Company For and on behalf of the Board
Chartered Accountants
Registration No. 131025W
Sd/- Sd/- Sd/-
Deepesh Mittal Jayesh P. Choksi (DIN 00001729) Pranav J. Choksi (DIN 00001731)
Partner Chairman & Managing Director Chief Executive Officer &
M. No. 539486 Whole Time Director
Sd/- Sd/-
Place: Mumbai D. B. Roonghta Ami Shah (A39579)
Date - 30t May, 2025 Chief Financial Officer Company Secretary
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