1 ] Securities Premium: Securities premium reserve represents premium received on equity shares issued, which can be utilised only in accordance with the provisions of the Companies Act, 2013 for specified purposes.
2] Share Option Outstanding Account: Reserve relates to stock options granted by the Company to the employees under an employee stock options plan.
3] General Reserve: General reserve is created from time to time by transferring profits from retained earnings and can be utilised for purposes such as dividend payout, bonus issue, etc.
4-] Retained earnings are the profits that the company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.
#There are no Micro and Small Enterprises, to whom the company ows dues, for more than 45 days during the year as at March 31, 2023 and March 31,2022. The above information regarding Micro and Small Enterprises has been dertemined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the Auditors.
Note 36 - Disclosure as per IND AS -19 "employee benefits".
(A) Expenses recognised for Defined Contribution Plan:
Employer’s Contribution to Provident and Pension Fund Rs. 18.21 Lakhs (PY Rs. 16.66 Lakhs],
Employer’s Contribution to ESIC Rs.6.63 Lakhs (PY Rs.6.31 Lakhs]
The Company makes contributions towards provident fund and pension fund for qualifying employees to the Regional Provident Fund Commissioner.
(B) Expenses Recognised Defined Benefit Plan:
The company provides gratuity benefit to its employees which is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.
Notes:
1. Salary escalation rate is arrived after taking into account regular increments, price inflation and promotion and other relevant factors such as supply and demand in employment market.
2. Discount rate is based on prevailing market yields of Indian Government Securities as at balance sheet date for estimated term of obligations.
3. Attrition rate/ withdrawal rate is based on Company's policy towards retention of employees, historical data and industry outlook.
4-. The above information is certified by actuary.
These gratuity plan typically expose the Company to actuarial risks such as: investment risk, interest risk, longevity risk and salary risk.
Investment Risk:
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. For other defined benefit plans, the discount rate is determined by reference to market yield at the end of reporting period on high quality corporate bonds when there is a deep marketforsuch bonds; if the return on plan asset is belowthis rate, it will create a plan deficit.
Interest risk
A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return onthe plan debt investments.
Longevity risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.
Salary risk
The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plans liability.
Note35 - Segment Reporting
The Company is mainly engaged in the development and operations of Pharmaceutical business. Accordingly, the Company has only one identifiable segment reportable underlnd AS 108- Operating Segments.
Managing Director (the 'Chief Operational Decision Maker' as defined in Ind AS 1081 monitors the operating results of the company's business for the purpose of making decisions about resource allocation and performance assessment.
Note 36 - Related Party Disclosures 1
In view of the INDAS 24 "Related Parties Disclosures", the disclosure in respect of related party transactions for the year ended on 31 st March 2023 is as under:
The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions.
Review of outstanding balances is undertaken each financial year through examining the financial position of the related party and the market in which related party operates. These balances are unsecured and their settlement occurs through banking channel.
Note 38 - contingent liabilities not provided for in Respect of:
a] Demand notices received on account of Property Tax pertaining to FY 2019-20 is aggregating's. 53.20 Lakhs (P.Y. Rs. 53.20 Lakhslare disputed by the Company. The Company has filed a suit and the matter is pending the Supreme Court and Company has not yet deposited any amount in this regard.
b] Demand notices received on account of principal amount of CESS during FY 2019-20 pertaining to FY 1999-2000 and FY 20002001 is aggregating Rs.22.85 Lakhs (P.Y.Rs.22.85 Lakhs ] are disputed by the Company. The Company has filed a suit and the matter is pending the Supreme Court and Company has not yet deposited any amount in this regard.
The above litigations are not expected to have any material adverse effect on the financial position of the company.
Note 41 - Impairment of Assets
The Company's Board, out of abundant caution and as a prudent practice in line with the standard accounting practices has not made any impairment provision against its investments for the financial year 2022-23.
Note 42 - Balance Confirmation
The balances in respect of Trade Receivables & Payables, loans and advances, as appearing in the books of accounts are subject to confirmations by the respective parties and adjustments/reconciliation arising there from, if any.
The Company has accounted for its share of loss amounting to Rs. 0.19 Lakhs (P.Y. Rs. 0.20 Lakhs] pertaining to the financial year 2022-23.
Note 44 - Event after Reporting Date:
There are no major events occurred after the reporting date."
Note45 - CorporateSocial Responsibility
The company is required to comply the requirements of CSR as per Section 135 of the Companies Act, 2013 read with Schedule VII. Accordingly the company has spent an amount of Rs. 17.80 Lakhs during the Financial Year 2022-23.
Expenditure related to corporate social responsibility is:
Fair valuation techniques:
The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available.
The following methods and assumptions were used to estimate the fair values
• Fair value of the Equity Shares are based on price quoted on stock exchange.
• Fair value of investment in unquoted equity shares are considered same as carrying value as the same are recently acquired.
• Fair value of Financial Assets & Financial Fiability (except which are show at their fair value] are carried at amortised cost is not materially differentfrom its carrying cost.
• The Financial Assets do not include investments in group companies which are carried at cost.
Fair Value hierarchy:
The following table provides the fair value measurement hierarchy of Company's asset and liabilities, grouped into Fevel 1 to Level 3 as described below:
Level 1: Quoted prices / published NAV (unadjusted] in active markets for identical assets or liabilities. It includes fair value of financial instruments traded in active markets and are based on quoted market prices at the balance sheet date.
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices] or indirectly (that is, derived from prices]. Fair value of the financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on the company specific estimates. If all significant inputs required to fair value an instrument are observable then instrument is included in level 2
Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs]. If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
Note47 - Financial Risk Management:
The Company’s activities expose it to credit risk, liquidity risk and market risk. This note explains the sources of risks which the entity is exposed to and how it mitigates that risk.
Market risk:
Market risk is the risk that the fair value or future cashflows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings and investments in securities.
Foreign currency risk:
Foreign currency risk is the risk that the fair value or future cashflows of a financial instrument will fluctuate because of changes inforeign exchange rates.
The Company is exposed to foreign exchange risk through purchases of goods or services from overseas supplier in foreign currency. The Company generally transacts in US dollar. The foreign exchange rate exposure is balanced by purchasing of goods orservices in the respective currency.
The Company is exposed to insignificant foreign exchange risk as at the respective reporting dates.
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.
The Company is not exposed to interest rate risk as the Company has fixed rate of borrowings as at the respective reporting dates.
Commodity and Other price risk:
The Company is not exposed to the commodity and other price risk.
Credit Risk:
Credit risk is the risk of financial loss to the Company that a customer or counter party to a financial instrument fails to meet its obligations. The Company is exposed to credit risk from its operating activities (primarily trade receivables] and from its financing activities, including deposits with banks, mutual funds, financial institutions and other financial instruments
Trade and other receivables:
The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings for extension of credit to customers. To manage credit risk, the Company periodically assesses the financial reliability of the customer, taking into account the financial condition, current economic trends, and analysis of historical bad debts and aging of accounts receivables. Outstanding customer receivables are regularly monitored to make an assessment of recoverability. Receivables are provided as doubtful / written off, when there is no reasonable expectation of recovery. Where receivables have been provided / written off, the Company continues regular follow-up, engage with the customers, legal options/ any other remedies available with the objective of recovering these outstanding.
The Company is not exposed to concentration of credit risk to any one single customer since services are provided to vast spectrum and hence, the concentration of risk with respect to trade receivables is low. The Company also takes security deposits, advances, post-dated cheques etc. from its customers, which mitigate the credit risk to an extent."
Cash and cash equivalents another investments:
The Company is exposed to counter party risk relating to medium term deposits with banks and investment in mutualfunds.
The Company considers factors such as track record, size of the institution, market reputation and service standards to select the banks with which balances and deposits are maintained. Generally, the balances are maintained with the institutions with which the Company has also availed borrowings. “
Liquidity risk:
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses.
The Company’s objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company relies on a mix of borrowings, capital infusion and excess operating cash flows to meet its needs for funds. The current borrowings are sufficient to meet its short to medium term expansion needs. Management monitors the Company's net liquidity position through rolling forecasts on the basis of expected cashflows.
Capital management
The primary objective of the Company's capital management is to maximize the shareholder value. The Company's primary objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital ratios and safeguard the Company's ability to continue as a going concern in order to support its business and provide maximum returns for shareholders. The Company also proposes to maintain an optimal capital structure to reduce the cost of capital. No changes were made in the objectives, policies or processes during the year ended March 31,2023 and March 31,2022.
Note 50 - The previous yearfigures have been regrouped, reworked, rearranged and reclassified, wherever necessary and are to be read in relation to the amounts and other disclosures relating to the current year.
Note 51 -Additional regulatory information required by Schedule III:
Details of benami property held -
No proceedings have been initiated on or are pending against the company for holding benami property under the benami Transactions (Prohibition] Act, 1988 (4-5 of 1988] and Rules made thereunder.
Borrowing secured against currentassets
The company does not have borrowings from banks and financial institutions on the basis of security of currentassets.
Wilful defaulter
Company have not been declared wilful defaulter by any bank or financial institution or government or any government authority. Compliance with number of layers of companies
The company has complied with the number of layers prescribed under the Companies Act, 2013.
Compliance with approved scheme(s) of arrangements
The company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
Utilisation of borrowed funds and share premium
The company has not advanced or loaned or invested funds to any other personts] or entitylies], including foreign entities (Intermediaries] with the understanding that the Intermediary shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries] or
b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries
The company has not received any fund from any personts] or entitylies], including foreign entities (Funding Party] with the understanding (whether recorded in writing or otherwise] that the company shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries] or
b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries Undisclosed income
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
Details of crypto currency or virtual currency
The company has not traded or invested in crypto currency or virtual currency during the current or previous year.
Valuation of PP&E, intangible asset and investment property
The company has not revalued its property, plant and equipment (including right-of-use assets] or intangible assets or both during the current or previous year.
Note 53 -The previous yearfigures have been regrouped, reworked, rearranged and reclassified, whenever necessary and are to be read in relation to the amounts and other disclosures relating to the current year.
|