outflow of resources. Contingent Liabilities are
not recognized but are disclosed in the notes for:
a) Possible obligations which will be confirmed
only by the future events not wholly within
the control of the company or
b) Present obligations arising from past events
where it is not probable that an outflow
of resources will be required to settle the
obligation or a reliable estimate of the
amount of the obligation cannot be made.
• Contingent assets are neither recognized nor
disclosed except when realization of income is
virtually certain, related asset is disclosed.
o. Income Tax
Income tax expenses comprises current and deferred
tax. It is recognized in the Standalone Statement of
Profit and Loss.
• Current Tax: Provision is made for income
tax based on the liability as computed after
taking credit for allowance and exemptions.
Adjustments in books are made only after the
completion of the assessment.
• Deferred Tax: Deferred tax is recognised in respect
of temporary differences between the carrying
amount of assets and liabilities for financial
reporting purposes and the amounts used for the
taxation purposes. Deferred income tax assets are
recognised to the extent that it is probable that
taxable profit will be available against which the
deductible temporary differences and the carry
forward of unused tax credits and unused tax
losses can be utilised.
p. Earnings per Share
Basic EPS amounts are calculated by dividing the profit
or loss for the year attributable to equity holders of the
Company by the weighted average number of Equity
shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the
profit or loss attributable to equity holders of the
Company 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, unless the effect of potential dilutive
equity shares is anti-dilutive.
q. Operating Cycle
Based on the nature of product /activities of the
company and the normal time between acquisition of
assets and their realisation in cash or cash equivalents,
the company has determined its operating cycle as 12
months for the purpose of classification of its assets
and liabilities as current and non-current.
n. Provisions, Contingent Liabilities & Contingent Assets
• Provisions involving substantial degree of
estimation in management are recognized when
there is present obligation as a result of past
events, and it is probable that there will be an
NOTE : 32
The Board of Directors of the Company, based on a legal opinion, has resolved to write off the time-barred unsecured Foreign Currency
Convertible Bond (FCCB) liability of ?38.68 crores, which has remained unclaimed for over 10 years and is no longer legally enforceable
under applicable laws. Accordingly, the outstanding principal amount of the FCCB liability of ?28.77 crores has been transferred to the
Capital Reserve, considering its nature as a capital receipt, while the accrued interest component of ?9.91 crores, being revenue in nature,
has been recognized as an exceptional item in the Statement of Profit and Loss for the year ended 31 March 2025.
ii) Financial risk management
The Company has exposure to the following risks arising from financial instruments:
A) Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Company's receivables from customers and investments in debt
securities. The carrying amount of financial assets represents the maximum credit exposure.
• Trade receivables
• Other financial assets
• Other bank balances
Credit risk management
The Company assesses and manages credit risk based on internal credit rating system, continuously monitoring defaults of
customers and other counterparties, identified either individually or by the company, and incorporates this information into
C) Market risk
Market risk is the risk that changes in market prices - such as foreign exchange rates interest rates and equity prices - will
affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters while optimizing the return.
(a) Foreign currency risk
The Company is exposed to foreign exchange risk arising from foreign currency transactions primarily with respect to the
US Dollar, EURO and GBP. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency
that is not the functional currency of the Company.
(i) Exposure to currency risk
The Company's exposure to foreign currency risk at the end of the reporting period expressed in INR are as follows.
Trade receivables
The Company closely monitors the credit-worthiness of the debtors through internal systems that are configured to define
credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts. The Company assesses increase in credit
risk on an ongoing basis for amounts receivable that become past due and default is considered to have occurred when
amounts receivable become past due one year.
Other financial assets measured at amortised cost
Other financial assets measured at amortised cost includes loans and advances to employees, security deposits and others.
Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously,
while at the same time internal control system in place ensure the amounts are within defined limits.
B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business,
the Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors
rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows.
The Company takes into account the liquidity of the market in which the company operates.
Maturities of financial liabilities
The tables below analyse the Company's financial liabilities into relevant maturity of the Company based on their contractual
maturities for all non-derivative financial liabilities.
(ii) Foreign currency sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change in exchange rates of USD, EURO
and GBP with all other variables held constant. The impact on the Company's profit before tax is due to changes in
the fair value of monetary assets and liabilities including non-designated foreign currency derivatives. Although the
derivatives have not been designated in a hedge relationship they act as an economic hedge and will offset the
underlying transactions when they occur. Accordingly, no sensitivity analysis in respect of such loans is given.
The Company's exposure to foreign currency changes for all other currencies is not material.
(H in Lakhs )
• The Company has not advanced or loaned or invested funds to any other person or entity including foreign entities (Intermediaries)
with the understanding that the Intermediary shall:
> 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
> provide any guarantee security or the like to or on behalf of the Ultimate Beneficiaries.
• The Company has not received any fund from any person or entity including foreign entities (Funding Party) with the understanding
(whether recorded in writing or otherwise) that the Company shall:
> 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
> provide any guarantee security or the like on behalf of the Ultimate Beneficiaries.
• The Company 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 (such as search or survey or any other
relevant provisions of the Income Tax Act 1961.
• Since the company does not have any working capital limit or borrowings from any bank of financial institution the Company has
not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act 2013)
or consortium thereof in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
• The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
• The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013 read
with the Companies (Restriction on number of Layers) Rules 2017.
39a. The ratio is changed primarily due to decrease in borrowings in comparison to previous year.
39b. Ratios have been changed due to increase in Net Profit in comparison to previous years
39c. Ratio has been decreased due to lower yields on investment of surplus funds.
NOTE : 40
During the year the company has undertaken a review of all Property Plant & Equipment in line with the requirements of Ind AS - 36 on
"Impairment of Assets". Based on such review no provision for impairment is required to be recognized during the year.
NOTE : 41
The company has received outstanding refunds including interest of H2,235.49 lakhs from Income Tax Department for the AY 2009-10,
2010-11 and partial for the AY 2011-12. Further the refund for the AY 2012-13 and Balance refund of AY 2011-12 is still under litigation.
NOTE : 42 OTHER STATUTORY INFORMATION
• The Company does not have any Benami property where any proceeding has been initiated or pending against the Company for
holding any Benami property.
• The Company does not have any transactions with struck-off companies under Section 248 of the Companies Act 2013 or Section
560 of the Companies Act 1956.
• The Company has not traded or invested in Cryptocurrency or Virtual Currency during the financial year.
NOTE : 45
The company operates only in one business segment viz "Pharmaceutical Formulation" and is engaged in manufacturing and trading
of medicines.
NOTE : 46 EVENTS AFTER THE REPORTING PERIOD
There are no subsequent events that occur after the reporting period.
NOTE : 47
The standalone financial statements for the year ended 31st March 2025 were approved by the board of directors on 26th May 2025.
NOTE : 48
The previous year figures have been regrouped/ reclassified wherever necessary to Confirm to the current year presentation.
As per our report of even date
FOR J. K. JAIN & ASSOCIATES
Chartered Accountants For and on behalf of the Board of Directors
Firm Registration No. 004025N
(J.K. JAIN) (Peeyush Jain) (Pawan Chaudhary)
Partner Deputy Managing Director Managing Director & CFO
M.No. 083140 DIN :00440361 DIN:00435503
Place : Panchkula (Neha Kodan) (Ajeet Kapoor)
Date : 26-05-2025 Company Secretary VP & Head(CAAR Division)
UDIN: 25083140BMSCJF7714
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