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అకౌంట్స్ గమనికలుRaaj Medisafe India Ltd.
1B.4.8 Provisions. Contingent Liabilities and Contingent Assets
(a) Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past
event and 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. Such provisions are determined
based on management''s estimate of the amount required to settle the obligation at the balance sheet date. When
the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a standalone
asset only when the reimbursement is virtually certain.
(b) 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.
(c) Contingent liabilities are disclosed on the basis of judgment of the management. These are reviewed at each
balance sheet date and are adjusted to reflect the current management''s estimate.
(d) Contingent assets are not recognized but are disclosed in the financial statements only when inflow of economic
benefits is probable.
(a) Income-Tax expense comprises of current and deferred income tax. Income tax expense is recognised in net profit
in the Statement of Profit and Loss except to the extent that it relates to items recognized directly in equity, in which
case it is recognized in other comprehensive income or Equity.
(b) Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.
(c) 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.
(d) 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 carrying amount of deferred tax liabilities and assets are reviewed at
the end of each reporting period.
(e) Deferred tax assets are recognised to the extent it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry forward of unused tax losses can be utilised.
1B.4.10 Foreign Currency Transactions and Translations
(a) Transactions in foreign currencies are initially recorded at the exchange rate prevailing on the date of transaction.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing
rates of exchange at the reporting date.
(b) Exchange differences arising on settlement or translation of monetary items are recognised in Statement of Profit
and Loss except to the extent of exchange differences which are regarded as an adjustment to interest costs on
foreign currency borrowings that are directly attributable to the acquisition or construction of qualifying assets which
are capitalised as cost of assets.
(c) Non-monetary items that are measured in terms of historical cost in a foreign currency are recorded using the
exchange rates at the date of the transaction. Non-monetary items measured at fair value in a foreign currency are
translated using the exchange rates at the date when the fair value was measured. The gain or loss arising on
translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on
the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognised in
OCI or Statement of Profit and Loss are also recognised in OCI or Statement of Profit and Loss, respectively).
1B.4.11 Employee Benefits Expense
(a) Short Term Employee Benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services
rendered by employees are recognised as an expense during the period when the employees render the services.
(b) Post-Employment Benefits - Defined Contribution Plans
A defined contribution plan is a post-employment benefit plan under which the Company pays specified
contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund and
ESIC Fund. The Company recognises contribution payable to the provident fund scheme and ESIC fund scheme,
as an expense, when an employee renders the related service. If the contribution payable to the scheme for service
received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is
recognised as a liability after deducting the contribution already paid. If the contribution already paid exceeds the
contribution due for services received before the balance sheet date, then excess is recognised as an asset to that
extent.
(c) Post-Emplovment Benefits - Defined Benefits Plans
(i) The cost of the defined benefit plan and other post-employment benefits and the present value of such
obligation are determined using actuarial valuations. An actuarial valuation involves making various
assumptions that may differ from actual developments in the future. These include the determination of the
discount rate, future salary increases, mortality rates and future pension increases. Due to the complexities
involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in
these assumptions. All assumptions are reviewed at each reporting date.
(ii) The Company pays gratuity to the employees whoever has completed five years of service with the Company
at the time of resignation/superannuation. The gratuity is paid @15 days salary for every completed year of
service as per the provisions of the Payment of Gratuity Act, 1972.
(iii) The gratuity liability amount is contributed to the approved gratuity fund formed exclusively for gratuity
payment to the employees. The gratuity fund has been approved by the governing Income-Tax authorities.
(iv) The liability in respect of gratuity and other post-employment benefits is calculated using the Projected Unit
Credit Method and spread over the period during which the benefit is expected to be derived from employeesâ
services.
(v) Re-measurements of defined benefit plans in respect of post-employment are charged to the Other
Comprehensive Income.
(a) The Company earns revenue primarily by sale of packaging items, Sanitary Napkins and Diapers.. Revenue is
recognised upon transfer of control of promised products or services to customers in an amount that reflects the
consideration which the Company expects to receive in exchange for those products or services.
(b) The Company has applied Ind AS 115 which establishes a comprehensive framework for determining whether,
how much and when revenue is to be recognised. Ind AS 115 replaces Ind AS 18 Revenue and Ind AS 11
Construction Contracts. The Company has adopted Ind AS 115 using the cumulative effect method. The effect of
initially applying this standard is recognised at the date of initial application (i.e. April 1, 2018). The standard is
applied retrospectively only to contracts that are not completed as at the date of initial application and the
comparative information in the statement of profit and loss is not restated - i.e. the comparative information
continues to be reported under Ind AS 18 and Ind AS 11. The impact of the adoption of the standard on the financial
statements of the Company is insignificant.
(c) Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts,
service level credits, performance bonuses, price concessions and incentives, if any, as specified in the contract
with the customer. Revenue also excludes taxes collected from customers.
1B.4.13 Goods and Services Tax fGSTI
The Goods and Services Tax balances, as appearing in the Balance Sheet of the Company, are subject to the
reconciliation at the time of furnishing the annual GST returns of the company, under the Goods and Services Tax
Enactments, for the financial year 2025-26.
(a) Financial Assets
(i) Initial recognition and measurement
All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value, are
adjusted to the fair value, through profit and loss, on initial recognition. Purchase and sale of financial assets
are recognised using trade date accounting.
(ii) Subsequent measurement
Financial assets carried at amortised cost
A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.
Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by
both collecting contractual cash flows and selling financial assets and the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.
Financial assets at fair value through profit or loss (FVTPL)
A financial asset not classified as either amortised cost or FVTOCI, is classified as FVTPL.
(iii) Reclassification of Financial Assets
Financial assets are reclassified subsequent to their recognition, if the Company changes its business model
for managing those financial assets. Changes in business model are made and applied prospectively from the
reclassification date which is the first day of immediately next reporting period following the changes in
business model in accordance with principles laid down under Ind AS 109 - Financial Instruments.
(iv) Other Equity Investments
All other equity investments are measured at fair value, with value changes recognised in Statement of Profit
and Loss, except for those equity investments for which the Company has elected to present the value
changes in âOther Comprehensive Incomeâ. However, dividend on such equity investments are recognised in
Statement of Profit and loss when the companyâs right to receive payment is established.
(v) Impairment of financial assets
In accordance with Ind AS 109, the Company uses âExpected Credit Lossâ (ECL) model, for evaluating
impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).
Expected credit losses are measured through a loss allowance at an amount equal to:
⢠The 12-months expected credit losses (expected credit losses that result from those default events on
the financial instrument that are possible within 12 months after the reporting date); or
⢠Full lifetime expected credit losses (expected credit losses that result from all possible default events
over the life of the financial instrument)
For trade receivables Company applies âsimplified approachâ which requires expected lifetime losses to be
recognised from initial recognition of the receivables. The Company uses historical default rates to determine
impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are
reviewed and changes in the forward looking estimates are analysed.
For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant
increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.
(b) Financial Liabilities
(i) Initial recognition and measurement
All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of
recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.
(ii) Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest method. For trade and other
payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value
due to the short maturity of these instruments.
(c) Derivative financial instruments and Hedge Accounting
Derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is
entered into and are also subsequently measured at fair value. Derivatives are carried as financial assets when the
fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from
changes in the fair value of derivatives are taken directly to Statement of Profit and Loss, except for the effective
portion of cash flow hedges which is recognised in Other Comprehensive Income and later to Statement of Profit
and Loss when the hedged item affects profit or loss or treated as basis adjustment if a hedged forecast transaction
subsequently results in the recognition of a non-financial assets or non-financial liability.
Hedges that meet the criteria for hedge accounting are accounted for as follows:
(i) Cash flow hedge
The Company designates derivative contracts or non derivative financial assets / liabilities as hedging
instruments to mitigate the risk of movement in interest rates and foreign exchange rates for foreign exchange
exposure on highly probable future cash flows attributable to a recognised asset or liability or forecast cash
transactions. When a derivative is designated as a cash flow hedging instrument, the effective portion of
changes in the fair value of the derivative is recognized in the cash flow hedging reserve being part of other
comprehensive income. Any ineffective portion of changes in the fair value of the derivative is recognized
immediately in the Statement of Profit and Loss. If the hedging relationship no longer meets the criteria for
hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or
is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in cash
flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the
underlying transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedging
reserve is transferred to the Statement of Profit and Loss upon the occurrence of the underlying transaction. If
the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging
reserve is reclassified in the Statement of Profit and Loss.
(ii) Fair Value Hedge
The Company designates derivative contracts or non derivative financial assets / liabilities as hedging
instruments to mitigate the risk of change in fair value of hedged item due to movement in interest rates,
foreign exchange rates and commodity prices.
Changes in the fair value of hedging instruments and hedged items that are designated and qualify as fair
value hedges are recorded in the Statement of Profit and Loss. If the hedging relationship no longer meets the
criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective
interest method is used is amortised to Statement of Profit and Loss over the period of maturity.
(d) Derecognition of financial instruments
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset
expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial
liability (or a part of a financial liability) is derecognized from the Company''s Balance Sheet when the obligation
specified in the contract is discharged or cancelled or expires.
(e) Offsetting
Financial Assets and Financial Liabilities are offset and the net amount is presented in the balance sheet when, and
only when, the Company has a legally enforceable right to set off the amount and it intends, either to settle them on a
net basis or to realise the asset and settle the liability simultaneously.
(a) The Company presents its assets and liabilities in the balance sheet based on current/non-current classification
which is based upon the Company''s operating cycle. The Company has identified twelve months as its operating
cycle.
(b) An asset is treated as current when it is:
(i) Expected to be realized or intended to be sold or consumed in normal operating cycle;
(ii) Held primarily for the purpose of trading;
(iii) Expected to be realized within twelve months after the reporting period; or
(iv) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period
(c) A liability is treated as current when :
(i) It is expected to be settled in normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is due to be settled within twelve months after the reporting period, or
(iv) There is no right to defer the settlement of the liability for at least twelve months after the reporting period
(d) Deferred tax assets and liabilities are classified as non-current assets and liabilities.
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by weighted average number of equity shares outstanding during the period. The weighted average
number of equity shares outstanding during the period are adjusted for events of shares issued during the year
including bonus issue.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects
of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as at the beginning of
the period unless issued at a later date.
Dividends paid (including Income-Tax thereon) are recognised in the period in which the interim dividends are
approved by the Board of Directors, or in respect of the final dividend when approved by the shareholders.
1B.4.19 Statement of Cash Flows
(a) Cash and Cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand,
other short-term and highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
(b) The Statement of Cash Flows has been prepared under the ''Indirect Method'' as set out in Indian Accounting
Standard (Ind AS) 7 on ''Statement of Cash Flows''.
The Company recognizes government grants only when there is reasonable assurance that the conditions
attached to them will be complied with, and the grants will be received. Government grants related to assets are
presented by deducting the grant from the carrying amount of the asset. Government grants related to revenue are
recognized on a systematic basis in net profit in the Statement of Profit and Loss over the periods necessary to
match them with the related costs which they are intended to compensate.
NOTE - 1C - CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
The preparation of the financial statements in conformity with the Ind AS requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities and disclosures as at date of the financial statements and the reported amounts of the revenues and
expenses for the years presented. 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 under different
assumptions and conditions. 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 periods if the revision affects both current and future
periods.
IC. 1 Depreciation / amortisation and useful lives of property plant and equipment / intangible assets
Property, Plant and Equipment / Intangible assets are depreciated / amortised over their estimated useful lives,
after taking into account estimated residual value. Management reviews the estimated useful lives and residual
values of the assets annually in order to determine the amount of depreciation / amortisation to be recorded during
any reporting period. The useful lives and residual values are based on the Companyâs historical experience with
similar assets and take into account anticipated technological changes. The depreciation / amortisation for future
periods is revised if there are significant changes from previous estimates.
1C.2 Recoverability of Trade Receivable
Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a
provision against those receivables is required. Factors considered include the credit rating of the counterparty, the
amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of
non-payment.
1C.3 Provisions & Contingencies
A provision is recognised for a present obligation (legal or constructive) as a result of past events if it is probable that
an outflow of resources embodying economic benefits will be required to settle the obligation and in respect of
which a reliable estimate can be made. The amount recognized as provisions are determined based on best
estimate of the amount required to settle the obligation at the balance sheet date. These estimates are reviewed at
each balance sheet date and adjusted to reflect the current best estimate.
A contingent liability is a possible obligation that arises from the past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a
present obligation that is not recognized because it is not probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but
discloses its existence in the financial statements.
Contingent asset is not recognised in financial statements since this may result in the recognition of income that
may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a
contingent asset and is recognised.
1C.4 Impairment of non-financial assets
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any
indication exists, the Company estimates the assetâs recoverable amount. An assetâs recoverable amount is the
higher of an assetâs or Cash Generating Units (CGUâs) fair value less costs of disposal and its value in use. It is
determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of
those from other assets or a groups of assets. Where the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
In determining fair value less costs of disposal, recent market transactions are taken into account, if no such
transactions can be identified, an appropriate valuation model is used.
1C.5 Impairment of financial assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected cash
loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment
calculation, based on Companyâs past history, existing market conditions as well as forward looking estimates at the
end of each reporting period.
F. Rights, Preferences and restrictions attached to Equity Shares
The company has issued only one class of equity shares having par value of Rs. 10/- per share. Each shareholder is eligible for
one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the
company, after distribution of all preferential amounts, in proportion of their shareholding. Further, during the year, the Board of
Directors of the Company in its meeting held on 26th March, 2026, has alloted 32,75,000 fully paid up Equity Shares of Rs. 10/-
each at a premium of Rs. 45/- per share on Preferential Basis to Non-Promoter Group in accordance with the provisions of the
Chapter V of the SEBI (ICDR) Regulations, 2018.
G. Shares issued in aggregate number and class of shares allotted by way of bonus shares and shares bought back during
the period of five years immediately preceding the date of 31st March, 2026
(i) The Company has not issued Bonus Shares during the year.
(ii) The Company has neither bought back any equity shares nor the company has allotted any equity shares pursuant to any
contract without payment being received in cash during the period of five years immediately preceding the Balance Sheet
date.
NOTE - 14.1 - Nature and Purposes of Reserves
(a) Securities Premium
The amount received in excess of face value of the equity shares is recognized in Securities Premium. The amount of
securities premium can be utilized only in accordance with the provisions of the Companies Act, 2013 for specified
General reserve is referred to as the reserve fund that is created by keeping aside a part of profit earned by the business
during the course of an accounting period for fulfilling various business needs like meeting contingencies, offsetting
future losses, enhancing the working capital, paying dividends to the shareholders, etc.
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.
The details of movement in Retained Earnings during the year is as below:
The principal business of the company is manufacturing and sale of Plastic bottles, caps, Plastic liners, Hygiene Products &
related products. All other activities are ancillary to the main activities. Operating segment is reported in a manner consistent
with the internal reporting provided to Chief Operating Decision Maker (CODM). The CODM evaluates the Companyâs
performance, allocates resources based on analysis of the various performance indicators of the Company as a single unit.
CODM have concluded that there are two operating reportable segments as defined by Ind- AS 108, Plastic segment and
Hygiene Segment.
(i) It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending
resolution of the respective proceedings.
(ii) The Company does not expect any reimbursements in respect of the above contingent liabilities
(iii) Future cash outflows in respect of the above matters are determined only on receipt of judgments / decisions pending at
various forums / authorities.
(iv) An Assessment Order under the provisions of the section 143(3) of the Income Tax Act,1961 for the Assessment Year 2018¬
19 was passed by the Ld. Assistant Commissioner of Income Tax, Central Circle, Ujjain on 05-04-2021 by determining the
Total loss of the company at Rs. 1,13,10,983/- as against the Returned Loss of Rs. 1,48,81,809/- thereby making total
additions of Rs. 35,70,826/- in the income of the Company. Being aggrieved with the aforesaid assessment order, the
company had filed an appeal before the Ld. Commissioner of Income Tax (Appeals)-3, Bhopal. The appeal of the company
is presently pending for adjudication.
(v) The Company''s pending litigations comprise of claims against the Company pertaining to proceedings pending with Sales/
VAT tax and other Commercial Tax authorities. The Company has reviewed all its pending litigations and proceedings and
has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its
financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect
on its financial statements.
1 The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflations, seniority,
promotion and other relevant factors including supply and demand in the employment market. The above information is
certified by the actuary.
2 The expected contribution for Defined Benefit Plan for the next financial year will be in line with F.Y. 2025-26.
3 The company makes provident fund (PF) contributions to defined contribution benefit plans for eligible employees. Under
the scheme the company is required to contribute a specified percentage of the payroll costs to fund the benefits. The
contributions specified under the law are paid to the government authorities (PF commissioner).
4 Amount towards Defined Contribution Plan have been recognized under âContribution to Provident and Other fundsâ in Note
29.
The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Life Insurance
Corporation of India, who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognized in
the financial statements are as under:
General Description of the Plan:
The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum
payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the
respective employees salary and the tenure of employment.
The defined benefit plans typically expose the company to various risk such as :
(a) 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. If the return on plan asset is below this rate, it will
create plan deficit.
(b) 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
plan assets.
(c) 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.
(d) Salary risk:
The present value of the defined benefit 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 plan''s liability.
NOTE - 41 ADDITIONAL REGULATORY INFORMATION
1 During the financial year 2025-26, no proceeding has been initiated or pending against the company for holding any
benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
2 The Company has filed quarterly returns or statements with the banks in lieu of sanctioned working capital facilities, which
are in agreement with the books of account other than those as set out below:
3 The company is not declared a wilful defaulter by any bank or financial institution or any other lender.
4 The company has not entered into any material transaction with the companies struck-off under section 248 of the
Companies Act, 2013 or section 560 of the Companies Act, 1956 during the year.
5 The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
6 The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017
7 The company has not applied for any Scheme of Arrangements in terms of Sections 230 to 237 of the Companies Act,
2013.
8 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (âIntermediariesâ) with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or
on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding
Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or
entities identified by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
9 The Company has no 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).
10 The company has not traded or invested in Crypto Currency or Virtual Currency during the Financial Year 2025-26.
G) Provisions & Contingencies -
I) Provision - A provision is recognised for a present obligation (legal or constructive) as a result of past events if it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and in
respect of which a reliable estimate can be made. The amount recognized as provisions are determined based on
best estimate of the amount required to settle the obligation at the balance sheet date. These estimates are
reviewed at each balance sheet date and adjusted to reflect the current best estimate.
II) Contingent liability - A contingent liability is a possible obligation that arises from the past events whose existence
will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of
the Company or a present obligation that is not recognized because it is not probable that an outflow of resources
will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a
liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a
contingent liability but discloses its existence in the financial statements.
III) Contingent Assets - Contingent asset is not recognised in financial statements since this may result in the
recognition of income that may never be realised. However, when the realisation of income is virtually certain, then
the related asset is not a contingent asset and is recognised.
H) Foreign Exchange & Losses - Foreign currency transactions are recorded at the rates of exchange prevailing on the
date of transaction. Foreign currency monetary items are reported using the closing rate. Non-monetary items which are
carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of
the transaction.
Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially
recorded during the year or reported in previous financial statements, are recognised as income or expense in the year in
which they arise.
I) Revenue Recognition -The Company earns revenue primarily by sale of packaging items. Revenue is recognised
upon transfer of control of promised products or services to customers in an amount that reflects the consideration
which the Company expects to receive in exchange for those products or services.
The Company has applied Ind AS 115 which establishes a comprehensive framework for determining whether, how
much and when revenue is to be recognised. Ind AS 115 replaces Ind AS 18 Revenue and Ind AS 11 Construction
Contracts. The Company has adopted Ind AS 115 using the cumulative effect method. The effect of initially applying
this standard is recognised at the date of initial application (i.e. April 1,2018). The standard is applied retrospectively
only to contracts that are not completed as at the date of initial application and the comparative information in the
statement of profit and loss is not restated - i.e. the comparative information continues to be reported under Ind AS
18 and Ind AS 11. The impact of the adoption of the standard on the financial statements of the Company is
insignificant.
Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts,
service level credits, performance bonuses, price concessions and incentives, if any, as specified in the contract
with the customer. Revenue also excludes taxes collected from customers.
J) 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 a 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 assetâs net carrying amount on initial
recognition.
K) Other Income - Income are accounted for on accrual basis and accordingly company follows the Mercantile System of
Accounting. Claims / refunds not ascertainable with reasonable certainty are accounted for on settlement basis.
L) Expenditure - Expenses are accounted on accrual basis. Further Prior period items are accounted under exceptional
items as per Ind AS 8 âAccounting policies, changes in estimates and errorsâ.
M) Retirement and other employee benefits -
a) Defined contribution plan - Employee benefits in the form of contribution to Provident Fund managed by
Government Authorities and Employees State Insurance Corporation are considered as defined contribution plans
and the same are charged to the statement of profit and loss for the year in which the employee renders the related
service.
b) Defined benefit plan -The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plan
is the present value of defined benefit obligations at the end of the reporting period less fair value of expected plan
assets. The defined benefit obligation is calculated annually by actuaries through actuarial valuation using the
projected unit credit method.
The Company recognises the following changes in the net defined benefit obligation as an expense in the statement
of profit and loss:
i) Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non¬
routine settlements; and
ii) Net interest expense or income
Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling (if any), and the return on
plan assets (excluding net interest), are recognized immediately in the balance sheet with a corresponding debit or
credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to
profit or loss in subsequent periods.
c) Short term employee benefits - The undiscounted amount of short term employee benefits expected to be paid in
exchange for the services rendered by employees are recognized as an expense during the period when the
employees render the services. Further accumulated compensated absences, which are expected to be settled
wholly within 12 months after the end of the period in which the employees render the related service, are treated as
short term employee benefits. The Company does not recognize the expected cost of such absences as the
additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting
date; they are to be accounted for on cash basis. Thus its effect on Profit and Loss of the company is not
determined.
d) Other long-term employee benefits - There is no such other long term employees benefit for which actuarial
valuation is required. Hence no actuarial gain or loss is booked in statement of profit or loss.
e) Termination Benefit - Termination benefits are payable when employment is terminated by the Company before the
normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The
Company recognizes termination benefits at the earlier of the following dates:
i) When the Company can no longer withdraw the offer of those benefits; and
ii) When the Company recognizes costs for a restructuring that is within the scope of Ind AS 37 and Involves the
payment of termination benefits.
N) Borrowing Cost- Borrowing cost directly attributable to acquisition and construction of assets that necessarily takes
substantial period of time to get ready for their intended use or sale are capitalised as part of the cost of such assets up to
the date when such assets are ready for intended use or sale. All other borrowing costs are expensed in the period in
which they occur. Borrowing cost consist of interest and other costs that an entity incurs in connection with the borrowing
of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing
costs.
O) Taxation - Income tax expense comprises current tax and deferred tax. Income tax expense is recognised in the
statement of Profit and Loss except when they relate to items that are recognised outside profit and loss (whether in other
comprehensive income or directly in equity), in which case tax is also recognised outside profit and loss. Current income
taxes are determined based on respective taxable income of each taxable entity.
Deferred tax assets and liabilities are recognised for the future tax consequences of temporary differences between the
carrying values of assets and liabilities and their respective tax bases, and unutilised business loss and depreciation
carry-forwards and tax credits. Such deferred tax assets and liabilities are computed separately for each taxable entity.
Deferred tax assets are recognised to the extent that it is probable that future taxable income will be available against
which the deductible temporary differences, unused tax losses, depreciation carryforwards and unused tax credits could
be utilised.
Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period when the
asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted
by the balance sheet date. Current and deferred tax assets and liabilities are offset when there is a legally enforceable
right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same
taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.
P) Leases- The Company assesses whether a contract contains a lease, at inception of a contract. 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. To assess whether a contract conveys the right to control the use of an identified assets, the Company
assesses whether:
(i) The contact involves the use of an identified asset;
(ii) The Company has avail 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.
As a lessee, the Company should recognize a right-of-use asset and a lease liability at the lease commencement
date. The right of-use asset is initially measured at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred
and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site
on which it is located less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the 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 estimated useful lives
of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-
of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurement of the
lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the companyâs incremental borrowing rate. Generally, the Company uses its incremental borrowing
rate as the discount rate. Lease payments included in the measurement of the lease liability comprise the fixed
payments, including in-substance fixed payments; the lease liability is measured at amortised cost using the
effective interest method.
The company has used number of practical expedients while applying Ind AS 116: - Short-term leases, leases of
low-value assets and single discount rate. The Company has elected not to recognise right-of-use assets and lease
liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The
company has entered into a lease agreement with MPAKVN Limited, for factory Land at Pithampur, Indore (M.P.).
The company recognises the lease payments associated with these leases as an expense on a straight-line basis
over the lease term as the lease payment is of very low -value.
The company has paid the upfront lease premium at the time of execution of the lease deed which is being
amortizing over the period of lease term determined by the company under Ind AS 17, the same assessment of
lease term would be acceptable under Ind AS 116. The amortisation of lease premium is as per Ind AS 116 as the
company neither have purchase option of the factory land at the expiry of the lease term nor the title will be transfer in
the name of the company at the end of lease term.
Q) Government grants and subsidies - Grants and subsidies from the Government are recognised when there is
reasonable assurance that the grant / subsidy will be received and all attaching conditions will be complied with.
Grant or subsidy relating to an asset is credited to the respective Property Plant & Equipment by the company which is in
line with Ind AS 20 âAccounting for government grants & disclosure of government assistanceâ.
R) Related Party Transactions - Transactions entered by the company with the related parties, has been disclosed by
way of notes as defined under Ind AS 24 âRelated Party Disclosuresâ. (Refer Note-34)
S) Earning Per Share - As per Ind AS 33 âEarning per Shareâ, Basic earnings per share are calculated by dividing the net
profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares
outstanding during the period. Basic earnings per share is Rs 4.60 per share as compared to Rs 3.065 per share in
previous year. Diluted earnings per share are computed by dividing the profit after tax as adjusted for dividend, interest
and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving basic earnings per share and the weighted
average number of equity shares which could have been issued on conversion of all dilutive potential equity shares.
Diluted earning per share is Rs.4.60 per share as compared to Rs.3.065 per share in previous year.
T) Classification of current / non-current assets and liabilities - All assets and liabilities are presented as current or non¬
current as per the Companyâs normal operating cycle and other criteria set out in Schedule III of the Companies Act, 2013
and Ind AS 1 âPresentation of financial statementsâ. Based on the nature of products and the time between the acquisition
of assets for processing and their realisation, the Company has ascertained its operating cycle as 12 months for the
purpose of current / non-current classification of assets and liabilities.
U) Significant estimates and assumptions -The preparation of the Companyâs financial statements requires
management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about
these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of
assets or liabilities affected in future periods. Estimates and judgments are continually evaluated and are based on
historical experience and other factors, including expectations of future events that are believed to be reasonable under
the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by
definition, seldom equal the related actual results. The estimates and assumptions that may have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year relate
primarily to defined benefit obligations, useful life of property, plant and equipment, revenue recognition, fair value
measurement of financial instruments at the end of the reporting period.''
I) Defined benefit obligations - The cost of defined benefit gratuity plans is determined using actuarial valuations.
The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates
and future pension increases. Due to the long-term nature of these plans, such estimates are subject to significant
uncertainty.
II) Useful life of property, plant and equipment - The charge in respect of periodic depreciation is derived after
determining an estimate of an assetâs expected useful life and the expected residual value. Increasing an assetâs
expected life or its residual value would result in a reduced depreciation charge in the Statement of profit and loss.
The useful lives of the Companyâs assets are determined by management at the time the asset is acquired and
reviewed at least annually for appropriateness. The lives are based on historical experience with similar assets as
well as anticipation of future events, which may impact their life, such as changes in technology.
III) Revenue recognition - Company provides various discounts, allowances and rebates to the customers. The
methodology and assumptions used to estimate rebates and returns are monitored and adjusted regularly in the
light of contractual and legal obligations, historical trends, past experience and projected market conditions.
IV) Classification of legal matters and tax litigation - The litigation and claims to which the Company is exposed to,
are assessed by management with assistance of the legal department and in certain cases with the support of
external specialized lawyers. Disclosures related to such provisions, as well as contingent liabilities, also require
judgment and estimations if any. (Refer Note-38)
V) Events after the reporting period - Events after the reporting period are those events, favorable and unfavorable,
that occur between the end of the reporting period and the date when the financial statements are approved by the
Board of Directors. These events can be classified as :
i) Adjusting Events those that provide evidence of conditions that existed at the end of the reporting period.
There are no such events after the reporting period for the company.
Note No : 15A
1) Securites provided towards secured loans;
i) Term Loan From HDFC Bank Loan Account No: 85921402 , For Total Tenure - 64 Months , Total Amount Financed-
29,718.567 Thousands Out of which Amount Disbursed-29,526.431 Thousands Payable In Monthly Installments of Rs
614,821/- (including interest) Commencing From 07/12/2021. Installments Falling Due in respect of the above loan
upto 31.03.2026 have been grouped under "Short Term Borrowings'' (Refer Note no.16)
ii) Term Loan From HDFC Bank Loan Account No: 86797539 , For Total Tenure - 63 Months ,Total Amount Financed-
15,000.000 Thousands Out of which Amount Disbursed- 14,955.042 Thousands Payable In Monthly Installments of Rs
304,146/- (including interest) Commencing From 07/08/2022. Installments Falling Due in respect of the above loan
upto 31.03.2026 have been grouped under "Short Term Borrowings'' (Refer Note no.16)
iii) Term Loan From HDFC Bank Loan Account No: 89767084 , For Total Tenure - 84 Months ,Total Amount Financed-
73,934.828 Thousands Out of which Amount Disbursed- 73,934.828 Thousands Payable In Monthly Installments of Rs
1,308,565/- (including interest) Commencing From 07/04/2024. Installments Falling Due in respect of the above loan
upto 31.03.2026 have been grouped under "Short Term Borrowings which is duly been updated as and when amount
disbursed(Refer Note no.16)
iv) Term Loan From HDFC Bank Loan Account No: 89458829 , For Total Tenure - 84 Months ,Total Amount Financed-
30,400.583 Thousands Out of which Amount Disbursed- 30,400.583 Thousands Payable In Monthly Installments of Rs
550,055/- (including interest) Commencing From 07/02/2024. Installments Falling Due in respect of the above loan
upto 31.03.2026 have been grouped under "Short Term Borrowings which is duly been updated as and when amount
disbursed(Refer Note no.16)
v) Term Loan From HDFC Bank Loan Account No: 86959376 , For Total Tenure - 61 Months ,Total Amount Financed-
20,600.000 Thousands Out of which Amount Disbursed- 20,600.000 Thousands Payable In Monthly Installments of Rs
64,316/- (including interest) Commencing From 07/06/2022. Installments Falling Due in respect of the above loan upto
31.03.2026 have been grouped under "Short Term Borrowings'' (Refer Note no.16)
vi) Term Loan From Bank Of Baroda Bank , For Total Tenure - 84 Months ,Total Amount Financed- 97,700.000 Thousands
Out of which Amount Disbursed- 73,015.275 ,Payable In Monthly Installments of Rs 10,00,000/- (excluding interest)
Commencing From 07/04/2025. Installments Falling Due in respect of the above loan upto 31.03.2026 have been
grouped under "Short Term Borrowings'' (Refer Note no.16)
31. Segment Reporting - The principal business of the company is manufacturing and sale of Plastics bottles, caps, Plastic liners,
Sanitary Napkins, Adult Diapers & related products. All other activities are ancillary to the main activities. Operating segment is
reported in a manner consistent with the internal reporting provided to Chief Operating Decision Maker (CODM). The CODM
evaluates the Companyâs performance, allocates resources based on analysis of the various performance indicators of the
Company as a single unit. CODM have concluded that there are 2 operating reportable segments as defined by Ind AS 108, i.e.
Plastic segment & Hygiene Segment.
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31.03.2025
32. Employee Benefits: -
a) Defined contributions plans -
Amount recognized and included in Note-25 as âPF& ESI Contribution (Employer)â of statement of profit and loss
Rs.2618.66 Thousand (previous year Rs. 3005.78 Thousand).
b) Defined benefit plans -
Funded gratuity plan (LIC New Group Gratuity Cash Accumulation Plan) is accounted for on accrual basis. The company is
in process to calculate the past service cost/Liability with a Life Insurance corporation of India to that extent the liability is
undervalued and amount is unascertainable in absence of actuarial figures. Although for Leave Encashment benefits are
accounted for on cash basis, its effect on Statement of Profit and Loss of the company is not determined.
37- A Beneficiaries disclosures
a) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
whether, 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 on behalf of the
Ultimate Beneficiaries;
b) No funds have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether,
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;
38. Contingent Liability and Capital Commitments:
a) Direct tax (Income Tax)
For AY 2018-19, Assessment order U/s 143(3) was issued by ACIT, Income Tax, Central, Ujjain on 05.04.2021
making addition of Rs. 35,70,826/-The said order was appealed to CIT (A) on 24.04.2021.
b) Companyâs Capital Commitments for the year is Rs.30.10 Crores.
39. Other Disclosures:
c) Accounts statements of in-operative bank accounts held in the name of the company are notavailable hence
balances in such accounts are subject to confirmation.
d) Balances of trade receivables, trade payables and loans & advances are subject to confirmation.
e) GST Credits and inputs are subject to reconciliation. The Concerned Statutory Form with respective department
were file as and when due for filing.
f) Relationship with Struck off Companies - The Company does not have any transactions or relationships with any
companies struck off under Section 248 of the Companies Act, 2013.
g) The Company has not been declared willful defaulter by any bank or financial institution or government or any
government authority.
h) No proceedings have been initiated during the year or are pending against the Company as at March 31,2025 for
holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and
rules made there under.
i) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the
statutory period.
j) There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments
under the Income Tax Act, 1961 which have not been recorded in the books of account.
k) The Company has not traded or invested in Virtual Currency.
l) The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of
the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring
companies, which uses accounting software for maintaining its books of accounts, shall 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 the
books of accounts along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
m) Company not falls under the provision of section 135 Of the companies Act, 2013 i.e. CSR Provision
n) Previous year figures have been rearranged / regrouped where ever necessary to confirm to current yearâs classification.
As per our report on even date For and on behalf of Board of Directors
For V.K.Ladha & Associates For Raaj Medisafe India Limited
Chartered Accountants
Firm Regn. No. 002301C
Sd/- Sd/- Sd/-
Arpit Bangur Navin Jhawar Hemant Kasliwal
Managing Director Jt. Managing Director Chairman - Audit Committee
(DIN-02600716) (DIN-08729821) (DIN-01797300)
Sd/- Sd/- Sd/- Sd/- Sd/-
CA. V. K. Ladha Ateet Agarwal Rakesh Agrawal CA Ankita Jain CS Sachin Sarda
Membershio No 071501 Director Director Chief Financial Officer Company Secretary
(DIN-05167866) (DIN-09675176) (M.No.426121) (M. No.20930)
G) Provisions & Contingencies -
I) Provision - A provision is recognised for a present obligation (legal or constructive) as a result of past events if it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and in respect of which a reliable estimate can be made. The amount recognized as provisions are determined based on best estimate of the amount required to settle the obligation at the balance sheet date. These estimates are reviewed at each balance sheet date and adjusted to reflect the current best estimate.
II) Contingent liability - A contingent liability is a possible obligation that arises from the past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that can not be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.
III) Contingent Assets - Contingent asset is not recognised in financial statements since this may result in the recognition of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognised.
H) Foreign Exchange & Losses - Foreign currency transactions are recorded at the rates of exchange prevailing on the date of transaction. Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.
Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year or reported in previous financial statements, are recognised as income or expense in the year in
which they arise.
I) Revenue Recognition -The Company earns revenue primarily by sale of packaging items. Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those products or services.
The Company has applied Ind AS 115 which establishes a comprehensive framework for determining whether, how much and when revenue is to be recognised. Ind AS 115 replaces Ind AS 18 Revenue and Ind AS 11 Construction Contracts. The Company has adopted Ind AS 115 using the cumulative effect method. The effect of initially applying this standard is recognised at the date of initial application (i.e. April 1,2018). The standard is applied retrospectively only to contracts that are not completed as at the date of initial application and the comparative information in the statement of profit and loss is not restated - i.e. the comparative information continues to be reported under Ind AS 18 and Ind AS 11. The impact of the adoption of the standard on the financial statements of the Company is insignificant.
Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, service level credits, performance bonuses, price concessions and incentives, if any, as specified in the contract with the customer. Revenue also excludes taxes collected from customers.
J) 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 a 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 assetâs net carrying amount on initial recognition.
K) Other Income - Income are accounted for on accrual basis and accordingly company follows the Mercantile System of Accounting. Claims / refunds not ascertainable with reasonable certainty are accounted for on settlement basis.
L) Expenditure - Expenses are accounted on accrual basis. Further Prior period items are accounted under exceptional items as per Ind AS 8 âAccounting policies, changes in estimates and errorsâ.
M) Retirement and other employee benefits -
a) Defined contribution plan - Employee benefits in the form of contribution to Provident Fund managed by Government Authorities and Employees State Insurance Corporation are considered as defined contribution plans and the same are charged to the statement of profit and loss for the year in which the employee renders the related service.
b) Defined benefit plan -The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plan is the present value of defined benefit obligations at the end of the reporting period less fair value of expected plan assets. The defined benefit obligation is calculated annually by actuaries through actuarial valuation using the projected unit credit method.
The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:
i) Service costs comprising current service costs, past-service costs, gains and losses on curtailments and nonroutine settlements; and
ii) Net interest expense or income
Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling (if any), and the return on plan assets (excluding net interest), are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss in
subsequent periods.
c) Short term employee benefits - The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services.
Further accumulated compensated absences, which are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service, are treated as short term employee benefits. The Company does not recognize the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date; they are to be accounted for on cash basis. Thus its effect on Profit and Loss of the company is not determined.
d) Other long-term employee benefits - There is no such other long term employees benefit for which actuarial valuation is required. Hence no actuarial gain or loss is booked in statement of profit or loss.
e) Termination Benefit - Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Company recognizes termination benefits at the earlier of the following dates:
i) When the Company can no longer withdraw the offer of those benefits; and
ii) When the Company recognizes costs for a restructuring that is within the scope of Ind AS 37 and Involves the payment of termination benefits.
N) Borrowing Cost- Borrowing cost directly attributable to acquisition and construction of assets that necessarily takes substantial period of time to get ready for their intended use or sale are capitalised as part of the cost of such assets up to the date when such assets are ready for intended use or sale. All other borrowing costs are expensed in the period in which they occur. Borrowing cost consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.
O) Taxation - Income tax expense comprises current tax and deferred tax. Income tax expense is recognised in the statement of Profit and Loss except when they relate to items that are recognised outside profit and loss (whether in other comprehensive income or directly in equity), in which case tax is also recognised outside profit and loss. Current income taxes are determined based on respective taxable income of each taxable entity.
Deferred tax assets and liabilities are recognised for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases, and unutilised business loss and depreciation carry-forwards and tax credits. Such deferred tax assets and liabilities are computed separately for each taxable entity. Deferred tax assets are recognised to the extent that it is probable that future taxable income will be available against which the deductible temporary differences, unused tax losses, depreciation carryforwards and unused tax credits could be utilised.
Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Current and deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.
P) Leases- The Company assesses whether a contract contains a lease, at inception of a contract. 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. To assess whether a contract conveys the right to control the use of an identified assets, the Company assesses whether:
(i) The contact involves the use of an identified asset;
(ii) The Company has avail 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.
As a lessee, the Company should recognizes a right-of-use asset and a lease liability at the lease commencement date. The right of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the 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 estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurement of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the companyâs incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. Lease payments included in the measurement of the lease liability comprise the fixed payments, including in-substance fixed payments; the lease liability is measured at amortised cost using the effective interest method.
The company has used number of practical expedients while applying Ind AS 116: - Short-term leases, leases of low-value assets and single discount rate. The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The company has entered into a lease agreement with MPAKVN Limited, for factory Land at Pithampur, Indore (M.P.). The company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term as the lease payment is of very low -value.
The company has paid the upfront lease premium at the time of execution of the lease deed which is being amortizing over the period of lease term determined by the company under Ind AS 17,the same assessment of lease term would be acceptable under Ind AS 116. The amortisation of lease premium is as per Ind AS 116 as the company neither have purchase option of the factory land at the expiry of the lease term nor the title will be transfer in the name of the company at the end of lease term.
Q) Government grants and subsidies - Grants and subsidies from the Government are recognised when there is reasonable assurance that the grant / subsidy will be received and all attaching conditions will be complied with.
Grant or subsidy relating to an asset is credited to the respective Property Plant & Equipment by the company which is in line with Ind AS 20 âAccounting for government grants & disclosure of government assistanceâ.
R) Related Party Transactions - Transactions entered by the company with the related parties, has been disclosed by way of notes as defined under Ind AS 24 âRelated Party Disclosuresâ. (Refer Note-34)
S) Earning Per Share - As per Ind AS 33 âEarning per Shareâ, Basic earnings per share are calculated by dividing the net
profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Basic earnings per share is Rs3.07 per share as compared to Rs 3.06 per share in previous year.
Diluted earnings per share are computed by dividing the profit after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on conversion of all dilutive potential equity shares. Diluted earning per share is Rs.3.07 per share as compared to Rs.3.06per share in previous year.
T) Classification of current / non-current assets and liabilities - All assets and liabilities are presented as current or noncurrent as per the Companyâs normal operating cycle and other criteria set out in Schedule III of the Companies Act, 2013 and Ind AS 1 âPresentation of financial statementsâ. Based on the nature of products and the time between the acquisition of assets for processing and their realisation, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.
U) Significant estimates and assumptions - The preparation of the Companyâs financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year relate primarily to defined benefit obligations, useful life of property, plant and equipment, revenue recognition, fair value measurement of financial instruments at the end of the reporting period.''
I) Defined benefit obligations - The cost of defined benefit gratuity plans is determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the long-term nature of these plans, such estimates are subject to significant uncertainty.
II) Useful life of property, plant and equipment- The charge in respect of periodic depreciation is derived after determining an estimate of an assetâs expected useful life and the expected residual value. Increasing an assetâs expected life or its residual value would result in a reduced depreciation charge in the Statement of profit and loss. The useful lives of the Companyâs assets are determined by management at the time the asset is acquired and reviewed at least annually for appropriateness. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.
The estimated useful lives are as mentioned below:
Type of asset Useful Lives
Buildings 30 years
Leasehold Improvement Lease term
Plant & Machinery 15 years
Computer Equipment 3 years
Furniture & Fixtures 10 years
Office Equipments 5 years
Electrical Installation 10 years
Vehicles 8 years
III) Revenue recognition - Company provides various discounts, allowances and rebates to the customers. The methodology and assumptions used to estimate rebates and returns are monitored and adjusted regularly in the light of contractual and legal obligations, historical trends, past experience and projected market conditions.
IV) Classification of legal matters and tax litigation - The litigation and claims to which the Company is exposed to, are assessed by management with assistance of the legal department and in certain cases with the support of external specialized lawyers. Disclosures related to such provisions, as well as contingent liabilities, also require judgment and estimations if any. (Refer Note-38)
V) Events after the reporting period - Events after the reporting period are those events, favorable and unfavorable, that occur between the end of the reporting period and the date when the financial statements are approved by the Board of Directors. These events can be classified as :
i) Adjusting Events those that provide evidence of conditions that existed at the end of the reporting period.
There are no such events after the reporting period for the company.
Note No : 15A
1) Securites provided towards secured loans;
i) Term Loan of HDFC Bank Rs. 6000 thousands. Installments falling due in respect of the above loan upto 31.03.2024 have been grouped under "Short term Borrowings'' (Refer Note no.16)
ii) Term Loan from HDFC Bank of Rs. 2000 thousands is availed for purchase of Plant & Machineries in Sep-18. Installments falling due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings'' (Refer Note no.16)
iii) Term Loan of Rs. 17,88 thousand payable in 60 monthly installments of Rs. 36,640/-(including interest) commencing from 05/02/2018. Installments falling due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings'' (Refer Note no.16)
iv) Car Loan Has been taken by the company in FY 20-21 for rs 1150 thousand , installment falling due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings'' (Refer Note no.16)
v) Term Loan From HDFC Bank of Rs 4150 Thousands obtained for to augment Working Capital requirement to enable business unit to meet operating liabilities. In 36 Monthly Installments of Rs 130525/- (including interest) Commencing From 07/07/2021. Installments Falling Due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings'' (Refer Note no.16)
vi) Term Loan From HDFC Bank of Rs 3100 Thousands obtained to augment Working Capital requirement to enable business unit to meet operating liablities. In 36 Monthly Installments of Rs 97501/- (including interest) Commencing From 07/07/2021. Installments Falling Due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings'' (Refer Note no.16)
vii) Term Loan From HDFC Bank of Rs 19825.422 Thousands obtained to augment Working Capital requirement to enable business unit to meet operating liabilities. In 60 Monthly Installments of Rs 399867/- (including interest) Commencing From 07/12/2021.Addition to this Rs 8608.125 Thousand Disbursed by the Bank in June 2022. with an additional in installment repayment of rs 191302/-( Including Interest). Total value of Loan disburesed is 28433.54 & monthly installment will be Rs 591169/- (Including interest). Installments Falling Due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings'' (Refer Note no.16)
viii) Term Loan From HDFC Bank of Rs 14955.04 Thousands obtained for New Property Purchase for Expansion of production and factory unit. Repayment is In 50 Monthly Installments of Rs 304146/- (including interest) Commencing
From 07/12/2021. Installments Falling Due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings'' (Refer Note no.16)
ix) Term Loan From Bank of Baroda of Rs 97700 Thousands obtained for New Property Purchase for Expansion of production and factory unit. Moratorium Period is 13 Month afterwards Repayment is In 71 Monthly installment comprises in 12 Monthly Installments of Rs 1000/- (including interest) Next 48 monthly installement of Rs 1400/-Thousand ( including Interest) Next 11 monthly installment of Rs 1700/-Thousand Commencing From 01/04/2025. ( Out of Sanctioned Limit of 97700 Till 31.03.2024 Disbursement taken for Rs 71608 Thousand)
(x) Term Loan From HDFC Bank of Rs 180000 Thousands obtained for Expansion of production and factory unit. Out of Sanctioned amount till 31.03.2024 Disbursement Taken of Rs 11792 Thousand Repayment Repayment will be Start after serving Mortorium period of 12 months
xi) Primary Security - Term Loan is secured by way of Hypothecation of Plant & Machineries and other imovable fixed assets other than factory land and building, both present & future, Collateral Security - TL and CC Limit is secured by Equitable Mortgage of leasehold factory Land & Building at Pithampur.
xii) Personal Guarantee - TL and CC Limit is secured by Personal Guarantee of Mr. Arpit Bangur, Chairman cum Director and Mr Anand Bangur
xiii) Corporate Guarantee - TL and CC Limit is secured by Corporate Guarantee of M/s Sushen Remedies Pvt. Ltd.
2) Terms of Repayment of Secured Loans;
i) Term Loan of Rs. 6000 th. was repayable in 72 monthly intallments of Rs. 111.46 th. However, due to the moratorium period of 3 months availed during the month of Apr to June-20 (3 Months) due to the COVID-19 Pandemic, the repayment will be extended for 3 months and will last in the month of Nov-24. The availement of 3 months moratorium will cost extra Rs. 100.20 thousand to the company in terms of interest. Period of 9 months is considered out of next 12 months to determine the current liabilities towards term loan.
ii) Term Loan of Rs. 2000 th. was repayable in 60 monthly intallments of Rs. 42.59 th. However, due to the moratorium period of 3 months availed during the month of Apr to June-20 (3 Months) due to the COVID-19 Pandemic, the repayment will be extended for 3 months and will last in the month of Feb-24. The availement of 3 months moratorium will cost extra Rs. 23.24 thousand to the company in terms of interest. Period of 9 months is considered out of next 12 months to determine the current liabilities towards term loan.
iii) Term Loan of Rs. 17,88 thousand payable in 60 monthly installments of Rs. 36,640/-(including interest) commencing from 05/02/2018. Installments falling due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings'' (Refer Note no.16)
iv) Car Loan Has been taken by the company in FY 20-21 for rs 1150 thousand , installment falling due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings'' (Refer Note no.16)
v) Term Loan From HDFC Bank of Rs 4150 Thousands Payable In 36 Monthly Installments of Rs 130525/- (including interest) Commencing From 07/07/2021. Installments Falling Due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings''(Refer Note no.16)
vi) Term Loan From HDFC Bank of Rs 3100 Thousands Payable In 36 Monthly Installments of Rs 97501/- (including interest) Commencing From 07/07/2021. Installments Falling Due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings'' (Refer Note no.16)
vii) Term Loan From HDFC Bank of Rs 19825.422 Thousands Payable In 60 Monthly Installments of Rs 399867/- (including interest) Commencing From 07/12/2021. Addition to this Rs 8608.125 Thousand Disbursed by the Bank in June 2022. with an additional in installment repayment of rs 191302/-( Including Interest). Total value of Loan disbursed is 28433.54
37- A Beneficiaries disclosures
a) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 on behalf of the Ultimate Beneficiaries;
b) No funds have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, 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;
38. Contingent Liability and Capital Commitments:
a) Direct tax (Income Tax)
For AY 2018-19, Assessment order U/s 143(3) was issued by ACIT, Income Tax, Central, Ujjain on 05.04.2021 making addition of Rs.3570.83 Thousand The said order was appealed to CIT (A) on 24.04.2021.
b) Indirect Tax -
IGST -Tax and Penalty demand was imposed of Rs. 165.25 thousand by the SGST authority while detaining the vehicle in transit in the month of Nov-18 and found that the E-way bill on the basis of which transportation is done found expired on the moment. The company has filed an appeal with State Commissioner (Appeals), Indore and deposited total tax demand and penalty.
c) Companyâs Capital Commitments for the year is Rs.268000 Thousand.
39. Other Disclosures:
a) Accounts statements of in-operative bank accounts held in the name of the company are notavailable hence balances in such accounts are subject to confirmation.
b) Balances of trade receivables, trade payables and loans & advances are subject to confirmation.
c) GST Credits and inputs are subject to reconciliation. The Concerned Statutory Form with respective department were file as and when due for filing.
d) Relationship with Struck off Companies - The Company does not have any transactions or relationships with any companies struck off under Section 248 of the Companies Act, 2013.
e) The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.
f) No proceedings have been initiated during the year or are pending against the Company as at March 31,2024 for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made there under.
g) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.
h) There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 which have not been recorded in the books of account.
i) The Company has not traded or invested in Virtual Currency.
j) The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of accounts, shall 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 the books of accounts along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
k) Company not falls under the provision of section 135 Of the companies Act, 2013 i.e. CSR Provision
l) Previous year figures have been rearranged / regrouped where ever necessary to conform to current yearâs classification.
As per our report on even date For and on behalf of Board of Directors
For V.K.Ladha & Associates For Raaj Medisafe India Limited
Chartered Accountants Firm Regn. No. 002301C
Sd/- Sd/- Sd/-
Arpit Bangur R. K. Gupta Navin Jhawar
Chairman Chairman - Audit Committee Managing Director
(DIN-02600716) (DIN-00774786) (DIN-08729821)
Sd/- Sd/- Sd/- Sd/- Sd/-
CA. V. K. Ladha V.K. Sood Rakesh Agarwal CA Ankita Jain CS Sachin Sarda
Membership No 071501 Director Director Chief Financial Officer Company Secretary
UDIN:24071501BKFQHI5340 (DIN-02612644) (DIN-09675176) (M.No.426121) (M. No.20930)
G) Provisions & Contingencies -
I) Provision - A provision is recognised for a present obligation (legal or constructive) as a result of past events if it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and in respect of which a reliable estimate can be made. The amount recognized as provisions are determined based on best estimate of the amount required to settle the obligation at the balance sheet date. These estimates are reviewed at each balance sheet date and adjusted to reflect the current best estimate.
II) Contingent liability - A contingent liability is a possible obligation that arises from the past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.
III) Contingent Assets - Contingent asset is not recognised in financial statements since this may result in the
recognition of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognised.
H) Foreign Exchange & Losses - Foreign currency transactions are recorded at the rates of exchange prevailing on the date of transaction. Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.
Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year or reported in previous financial statements, are recognised as income or expense in the year in which they arise.
I) Revenue Recognition - The Company earns revenue primarily by sale of packaging items. Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those products or services.
The Company has applied Ind AS 115 which establishes a comprehensive framework for determining whether, how much and when revenue is to be recognised. Ind AS 115 replaces Ind AS 18 Revenue and Ind AS 11 Construction Contracts. The Company has adopted Ind AS 115 using the cumulative effect method. The effect of initially applying this standard is recognised at the date of initial application (i.e. April 1,2018). The standard is applied retrospectively only to contracts that are not completed as at the date of initial application and the comparative information in the statement of profit and loss is not restated - i.e. the comparative information continues to be reported under Ind AS 18 and Ind AS 11. The impact of the adoption of the standard on the financial statements of the Company is insignificant.
Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, service level credits, performance bonuses, price concessions and incentives, if any, as specified in the contract with the customer. Revenue also excludes taxes collected from customers.
J) 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 a 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 assetâs net carrying amount on initial recognition.
K) Other Income - Income are accounted for on accrual basis and accordingly company follows the Mercantile System of Accounting. Claims / refunds not ascertainable with reasonable certainty are accounted for on settlement basis.
L) Expenditure - Expenses are accounted on accrual basis. Further Prior period items are accounted under exceptional items as per Ind AS 8 âAccounting policies, changes in estimates and errorsâ.
M) Retirement and other employee benefits -
a) Defined contribution plan - Employee benefits in the form of contribution to Provident Fund managed by Government Authorities and Employees State Insurance Corporation are considered as defined contribution plans and the same are charged to the statement of profit and loss for the year in which the employee renders the related service.
b) Defined benefit plan - The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plan is the present value of defined benefit obligations at the end of the reporting period less fair value
of expected plan assets. The defined benefit obligation is calculated annually by actuaries through actuarial valuation using the projected unit credit method.
The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:
i) Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; and
ii) Net interest expense or income
Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling (if any), and the return on plan assets (excluding net interest), are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.
c) Short term employee benefits - The un discounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services.
Further accumulated compensated absences, which are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service, are treated as short term employee benefits. The Company does not recognize the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date; they are to be accounted for on cash basis. Thus its effect on Profit and Loss of the company is not determined.
d) Other long-term employee benefits - There is no such other long term employees benefit for which actuarial valuation is required. Hence no actuarial gain or loss is booked in statement of profit or loss.
e) Termination Benefit - Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Company recognizes termination benefits at the earlier of the following dates:
i) When the Company can no longer withdraw the offer of those benefits; and
ii) When the Company recognizes costs for a restructuring that is within the scope of Ind AS 37 and Involves the payment of termination benefits.
N) Borrowing Cost- Borrowing cost directly attributable to acquisition and construction of assets that necessarily takes substantial period of time to get ready for their intended use or sale are capitalised as part of the cost of such assets up to the date when such assets are ready for intended use or sale. All other borrowing costs are expensed in the period in which they occur. Borrowing cost consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.
O) Taxation - Income tax expense comprises current tax and deferred tax. Income tax expense is recognised in the statement of Profit and Loss except when they relate to items that are recognised outside profit and loss (whether in other comprehensive income or directly in equity), in which case tax is also recognised outside profit and loss. Current income taxes are determined based on respective taxable income of each taxable entity.
Deferred tax assets and liabilities are recognised for the future tax consequences of temporary differences
between the carrying values of assets and liabilities and their respective tax bases, and unutilised business loss and depreciation carry-forwards and tax credits. Such deferred tax assets and liabilities are computed separately for each taxable entity. Deferred tax assets are recognised to the extent that it is probable that future taxable income will be available against which the deductible temporary differences, unused tax losses, depreciation carry forwards and unused tax credits could be utilised.
Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Current and deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.
P) Leases-The Company assesses whether a contract contains a lease, at inception of a contract. 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. To assess whether a contract conveys the right to control the use of an identified assets, the Company assesses whether:
(i) The contact involves the use of an identified asset;
(ii) The Company has avail 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.
As a lessee, the Company should recognizes a right-of-use asset and a lease liability at the lease commencement date. The right of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the 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 estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurement of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the companyâs incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. Lease payments included in the measurement of the lease liability comprise the fixed payments, including in-substance fixed payments; the lease liability is measured at amortised cost using the effective interest method.
The company has used number of practical expedients while applying Ind AS 116: - Short-term leases, leases of low-value assets and single discount rate. The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The company has entered into a lease agreement with MPAKVN Limited, for factory Land at Pithampur, Indore (M.P.). The company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term as the lease payment is of very low -value.
The company has paid the upfront lease premium at the time of execution of the lease deed which is being amortising over the period of lease term determined by the company under Ind AS 17,the same assessment of lease term would be acceptable under Ind AS 116. The amortisation of lease premium is as per Ind AS 116 as the company neither have purchase option of the factory land at the expiry of the lease term nor the title will be transfer in the name of the company at the end of lease term.
Q) Government grants and subsidies- Grants and subsidies from the Government are recognised when there is reasonable assurance that the grant / subsidy will be received and all attaching conditions will be complied with.
Grant or subsidy relating to an asset is credited to the respective Property Plant & Equipment by the company which is in line with Ind AS 20 âAccounting for government grants & disclosure of government assistanceâ.
R) Related Party Transactions - Transactions entered by the company with the related parties, has been disclosed by way of notes as defined under Ind AS 24 âRelated Party Disclosuresâ. (Refer Note-35)
S) Earning Per Share - As per Ind AS 33 âEarning per Shareâ, Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Basic earnings per share is Rs3.06 per share as compared to Rs 2.82per share in previous year.
Diluted earnings per share are computed by dividing the profit after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on conversion of all dilutive potential equity shares. Diluted earning per share is Rs.3.06 per share as compared to Rs.2.82per share in previous year.
T) Classification of current / non-current assets and liabilities - All assets and liabilities are presented as current or non-current as per the Companyâs normal operating cycle and other criteria set out in Schedule III of the Companies Act, 2013 and Ind AS 1 âPresentation of financial statementsâ. Based on the nature of products and the time between the acquisition of assets for processing and their realisation, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.
U) Significant estimates and assumptions - The preparation of the Companyâs financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year relate primarily to defined benefit obligations, useful life of property, plant and equipment, revenue recognition, fair value measurement of financial instruments at the end of the reporting period.''
I) Defined benefit obligations - The cost of defined benefit gratuity plans is determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the long-term nature of these plans, such estimates are subject to significant uncertainty.
NOTE :
1) Securities provided towards secured loans;
i) Term Loan of HDFC Bank Rs. 6000 thousands. Principal portion of Installments falling due in respect of the above loan upto 31.03.2023 have been grouped under "Current Borrowings'' (Refer Note no.16)
ii) Term Loan from HDFC Bank of Rs. 2000 thousands is availed for purchase of Plant & Machineries in Sep-18.Principal portion of Installments falling due in respect of the above loan upto 31.03.2023 have been grouped under "Current Borrowings'' (Refer Note no.16)
iii) Term Loan of Rs. 17,88 thousand payable in 60 monthly installments of Rs. 36,640/-(including interest) commencing from 05/02/2018. Principal portion of Installments falling due in respect of the above loan upto
31.03.2023 have been grouped under "Current Borrowings'' (Refer Note no.16)
iv) Car Loan Has been taken by the company in FY 20-21 for rs 1150 thousand , Principal Portion of installment falling due in respect of the above loan upto 31.03.2023 have been grouped under "Current Borrowings'' (Refer note no.16)
v) Term Loan From HDFC Bank of Rs 4150 Thousands obtained for to augment Working Capital requirement to enable business unit to meet operating liabilities. In 36 Monthly Installments of Rs 130525/- (including interest) Commencing From 07/07/2021. Principal Portion of Installments Falling Due in respect of the above loan upto
31.03.2023 have been grouped under "Current Borrowings" (Refer Note No. 16).
vi) Term Loan From HDFC Bank of Rs 3100 Thousands obtained to augment Working Capital requirement to enable business unit to meet operating liabilities. In 36 Monthly Installments of Rs 97501/- (including interest) Commencing From 07/07/2021. Principal Portion of Installments Falling Due in respect of the above loan upto
31.03.2023 have been grouped under "Current Borrowings" (Refer Note No. 16).
vii) Term Loan From HDFC Bank of Rs 19825.422 Thousands obtained to augment Working Capital requirement to enable business unit to meet operating liabilities. In 60 Monthly Installments of Rs 399867/- (including intrest) Commencing From 07/12/2021.Addition to this Rs 8608.125 Thousand Disbursed by the Bank in June 2022. with an additional in installment repayment of rs 191302/-( Including Interest). Total value of Loan disbursed is 28433.54 & monthly installment will be Rs 591169/- ( Including interest) .Principal Portion of Installments Falling Due in respect of the above loan upto 31.03.2023 have been grouped under "Current Borrowings" (Refer Note No. 16).
viii) Term Loan From HDFC Bank of Rs 14955.04 Thousands obtained for New Property Purchase for Expansion of
production and factory unit. Repayment is In 50 Monthly Installments of Rs 304146/- (including interest) Commencing From 07/12/2021. Principal Portion of Installments Falling Due in respect of the above loan upto
31.03.2023 have been grouped under "Current Borrowings" (Refer Note No. 16).
Ix) Primary Security - Term Loan is secured by way of Hypothecation of Plant & Machineries and other immovable fixed assets other than factory land and building, both present & future, Collateral Security - TL and CC Limit is secured by Equitable Mortgage of leasehold factory Land & Building at Pithampur.
x) Personal Guarantee - TL and CC Limit is secured by Personal Guarantee of Mr. Arpit Bangur, Chairman cum Director and Mr Anand Bangur
xi) Corporate Guarantee - TL and CC Limit is secured by Corporate Guarantee of M/s Sushen Remedies Pvt. Ltd.
2) Terms of Repayment of Secured Loans;
i) Term Loan of Rs. 6000 th. was repayble in 72 monthly installments of Rs. 111.46 th. However, due to the moratorium period of 3 months availed during the month of Apr to June-20 (3 Months) due to the COVID-19 Pandemic, the repayment will be extended for 3 months and will last in the month of Nov-24. The availement of 3 months moratorium will cost extra Rs. 100.20 thousand to the company in terms of interest. Period of 9 months is considered out of next 12 months to determine the current liabilities towards term loan.
ii) Term Loan of Rs. 2000 th. was repayble in 60 monthly installments of Rs. 42.59 th. However, due to the moratorium period of 3 months availed during the month of Apr to June-20 (3 Months) due to the COVID-19 Pandemic, the repayment will be extended for 3 months and will last in the month of Feb-24. The availement of 3 months moratorium will cost extra Rs. 23.24 thousand to the company in terms of interest. Period of 9 months is considered out of next 12 months to determine the current liabilities towards term loan.
iii) Term Loan of Rs. 17,88 thousand payable in 60 monthly installments of Rs. 36,640/-(including interest) commencing from 05/02/2018. Principal portion of Installments falling due in respect of the above loan upto
31.03.2023 have been grouped under "Current Borrowings''(Refer Note no.16)
iv) Car Loan Has been taken by the company in FY 20-21 for rs 1150 thousand ,Principal Portion of installment falling due in respect of the above loan upto 31.03.2023 have been grouped under "Current Borrowings'' (Refer note no.16)
v) Term Loan From HDFC Bank of Rs 4150 Thousands Payable In 36 Monthly Installments of Rs 130525/- (including interest) Commencing From 07/07/2021. Principal Portion of Installments Falling Due in respect of the above loan upto 31.03.2023 have been grouped under "Current Borrowings" (Refer Note No. 16).
vi) Term Loan From HDFC Bank of Rs 3100 Thousands Payable In 36 Monthly Installments of Rs 97501/- (including interest) Commencing From 07/07/2021. Principal Portion of Installments Falling Due in respect of the above loan upto 31.03.2023 have been grouped under "Current Borrowings" (Refer Note No. 16).
vii) Term Loan From HDFC Bank of Rs 19825.422 Thousands Payable In 60 Monthly Installments of Rs 399867/-(including interest) Commencing From 07/12/2021.Addition to this Rs 8608.125 Thousand Disbursed by the Bank in June 2022. with an additional in installment repayment of rs 191302/-( Including Interest). Total value of Loan disbursed is 28433.54 & monthly installment will be Rs 591169/- ( Including interest) .Principal Portion of Installments Falling Due in respect of the above loan upto 31.03.2023 have been grouped under "Current Borrowings" (Refer Note No. 16).
viii) Term Loan From HDFC Bank of Rs 14955.04 payable in 50 Monthly Installments of Rs 304146/- (including interest) Commencing From 07/12/2021. Principal Portion of Installments Falling Due in respect of the above loan upto 31.03.2023 have been grouped under "Current Borrowings" (Refer Note No. 16).
38. Legal & Taxation Matters:
a) Direct tax (Income Tax)-
(i) For AY 2018-19, Assessment order U/s 143(3) was issued by ACIT, Income Tax, Central, Ujjain on 05.04.2021 making addition of Rs. 35,70,826/-The said order was appealed to CIT (A) on 24.04.2021.
b) Indirect Tax -
(i) IGST -Tax and Penalty demand was imposed of Rs. 165.25 thousand by the SGST authority while detaining the vehicle in transit in the month of Nov-18 and found that the E-way bill on the basis of which transportation is done found expired on the moment. The company has filed an appeal with State Commissioner (Appeals), Indore after depositing total tax demand and penalty.
39. Other Disclosures:
a) No capital commitment is remaining to be executed during and at the close of the year.
b) Account statements of in-operative bank accounts held in the name of the company are not available hence balances in such accounts are subject to confirmation.
c) Balances of trade receivables, trade payables and loans & advances are subject to confirmation.
d) The cost has not yet commenced their business as of now, that why it is valued at cost only.
e) Relationship with Struck off Companies - The Company does not have any transactions or relationships with any companies struck off under Section 248 of the Companies Act, 2013.
f) The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.
g) No proceedings have been initiated during the year or are pending against the Company as at March 31,2023 for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.
h) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.
i) There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 which have not been recorded in the books of account.
j) The Company has not traded or invested in Virtual Currency.
k) Previous year figures have been rearranged / regrouped where ever necessary to conform to current yearâs classification.
As per our report on even date For and on behalf of Board of Directors
For V.K.Ladha & Associates For Raaj Medisafe India Limited
Chartered Accountants Firm Regn. No. 002301C
Sd/- Sd/- Sd/-
Arpit Bangur R. K. Gupta Navin Jhawar
Chairman Chairman - Audit Committee Managing Director
(DIN-02600716) (DIN-00774786) (DIN-08729821)
Sd/- Sd/- Sd/- Sd/-
CA. V. K. Ladha V.K. Sood CA Ankita Jain CS Sachin Sarda
Membership No. 071501 Director Chief Financial Officer Company S^retery
Ujjain, 29th May, 2023 (DIN-02612644) (M.No.426121) (M. No20930)
UDIN:23071501BGSGQY2186
Ujjain, 29th May, 2023
b) In opinion of Board, there is no unpaid amount due to Small Scale Industrial Under taking and SMEs for more than45daysand also there anointed rest paid or payable during the year towards unpaid amount or delayed
c) Service Tax and Penalty amount of Rs. 4B,874/- paid under protest during the year was considered as expenses on being lapse of reasonable time for appeal. Further Rs. 44,57B/- was also paid in the same matter to discharge the whole liability of demand order and the amount paid is classified as "extraordinary items" in final accounts.
d) Extraordinary items and prior period items contains Rs. 16,611/- towards PF Penalty, Rs. 1,70,82B/- towards Maintenance charges to Govt. Agency for prior period and Rs. 93,452/- towards Service Tax as detailed above.
e) No contract on capital account is remaining to be executed during and at the close of the year.
f) Depreciation on fixed assets has been charged on "Straight Line Method" on Pro-rata basis and has been realigned in accordance with schedule II to the Companies Act, 2013. Life span of all the assets have been recalculate and taken as per schedule II. Carrying value of assets is now depreciated over its remaining useful life. Residual value of the assets has been taken as Nil in case of all assets which is also with the provisions of Schedule II. The assets of which residual life remains nil as on 01.04.2014, the book value of these assets has been transferred to retained earnings.
g) The Fixed assets items of which residual life remains nil as on 01.04.2014; book value of these assets has been transferred to retained earnings. Accordingly the depreciation has been less charged by Rs. 27,80,047/- in the Profit and Loss Statement and Loss is less computed by the same amount.
h) Plant Building construction is completed during the year and the amount stood as Capital Work in progress which relates to Building construction is being capitalized by transferring the amount to Building A/c and depreciation has been charged on the addition from current financial year.
i) other income includes sale of scrap of building to the tune of Rs. 5.79 Lacs.
j) In the opinion of the Board of Directors, the current Assets have a value on realization in the. ordinary course of business at least equal to the amount at which these are stated above. Provisions for known liabilities are adequate and not in excess of the amount considered reasonable and necessary.
k) Account statements of in-operative bank accounts held in the name of the company are not available hence balances in such accounts subject to confirmation. n) Disclosures as required under "Related Part Disclosures" (AS 18) issued by The Institute of Chartered Accountants of India are as below;
l) List of Related Parties-
i) Key Managerial Personnel (KMP)
Sheri AjayKasat - Managing Director
ShriArpitBangur - Director (Chairman)
Shri Rajesh KumarGupta - Director(independent)
Shri Vijendra Kumar Sood - Director(independent)
Shri Narendra Bahadur Singh - Director(independent)
Smt. Krishna Jajoo - Additional Director
ii) Bodies Corporate
M/s Famous Vanijya Pvt. Ltd. - Director Shri Rajesh Gupta is a Director
M/s Shrini was Poly fabric& Pack well - Director Shri Arpit Bangur is a Director Pvt. Ltd.
M/sArpit Plastics Pvt. Ltd. - Director Shri Arpit Bangur isa Member
M/sUjjain Security and Manpower - Director Shri N.B.Singh isa Director Services Pvt. Ltd.
M/sShriji Polymers(l)Ltd. - Director ShriArpit Bangur along with his
relatives holds more than 2 % of Shares.
iii) Relatives of Directors (with whom transactions done during the year).
Shri Anand Bangur, Smt. Ma ngla Bangurare the relatives of Director Shri Arpit Bangur.
m) Balances of Sundry Debtors, Creditors and Loans &advances are subject to confirmation.
n) Previous year figures have been rearranged/ regrouped where ever necessary.
2. in opinion of Board, there is no unpaid amount due to Small Scale Industrial Undertaking and SMEs for more than 45 days and also there is no interest paid or payable during the year towards unpaid amount or delayed payment to such enterprises.
3. Income on account of foreign exchange fluctuation is towards payment in foreign currency to M/s Health Machinery Company Ltd. as advance against machine purchase. Later on on cancellation of the order, the amount was received back in foreign currency and income is booked of Rs. 39048/- against foreign exchange fluctuation.
4. Previous year figures have been rearranged / regrouped where ever necessary.
5. Balances of Sundry Debtors, Creditors and Loans & advances are subject to confirmation.
6. Contingent liabilities are not provided for but disclosed, if any by way of notes on account and will be accounted for in the year of occurrence.
7. In the opinion of the Board of Directors, the current Assets have a value on realization in the ordinary course of business at least equal to the amount at which these are stated above. Provisions for known liabilities are adequate and not in excess of the amount considered reasonable and necessary.
8. A Liability towards services tax of Rs.22289/- along with Interest and Penalty and late fee of late-filling of return of Rs.6000/ was confirmed vide order of DC of Central Excise, Customs and Service Tax, Division Pithampur Dtd. 08.09.2010 on to foe assessee. The liability is not booked by the oompany and will be booked on actual payment basis at the time of final disposal of the order.
9. Account statements of in-operative bank accounts held in the name of the company are not available hence balances and transactions in such accounts cannot be verified.
10. Significant accounting policies and practices adopted by foe Company are disclosed in the statement annexed to these financial statements as Annexure-1.
2. In opinion of Board, there is no unpaid amount due to Small Scale industrial Undertaking and SMEs for more than 45 days and also there is no interest paid or payable during the year towards unpaid amount of Belayed payment to such enterprises.
3. Previous year figures have been rearranged / regrouped where ever necessary,
4. BaFartcesof Sundry Debtors, Creditors and Loans & advances are subject to confirmation.
5. Cknttrtgerrt liabilities are not provided for but disclosed, if any by way of notes on account and will be accduhtetJ for in the year of occurrence.
6. in the opinion of the Board of Directors, the current Assets have a value on realization in the ordinary course of business at least equal to the amount at which these are stated above. Provisions for known liabftHiesare adequate and not in excess of the amount considered reasonable and necessary.
7. Account statements of in-operative bank accounts held in the name of the company are not available hence balances and transactions in such accounts cannot be verified
8. BSE Reinstatement Fees of Rs. 18,25,850/- paid to BSE India Ltd. towards revocation of suspension in Trading of Equity Shares, of the company. The amount paid is clearly distinct from ordinary activities of the company and are not expected to reoccur frequently or regularly, hence the amount is shown on the face of Profit or Loss Statement as "Extraordinary Item".
2. Contingent Liabilities not provided for in respect of
i) Bank Guarantee Nil Nil
ii) Bills Discounted from Bank Nil Nil
iii) Demand/Show Cause Notices from Excise/Custom/ Sales Tax Dept. etc. which are disputed 5691815 5168271 & pending before appeallate authorities.
iv) Letter of Credit Nil Nil
3. Claim against the Company not acknowleded as debts. 2644434 2644434
4. The provision for Gratuity has been made on accrual basis and the provision for Bonus has been made as per provisions of Payment of Bonus Act. 1965.
5. On account of accumulated carried forward losses under the Income Tax Act, 19(51 and rules made thereunder there is no income tax liablilites for the year.
(a) Provision for Current Taxation is made as per U/s 115JB (MAT) of Income Tax Act, 1961.
6. Additional informations pursuant to Provisions of part II of Schedule VI to the Companies Act, 1956, to the extent relevant.
7. In accordance with Accounting standard (AS) -22 on "Accounting for taxes on Income" issued by the Institute of Chartered Accountants of India (ICAI), the Company has deferred tax asset. The company has been reporting a negative income over the last few years. Considering the past trend and in the absence of reasonable certainty that sufficient future taxable income would be available against which deferred tax assets would be realised, the company has decided not to account for deferred tax asset. The same is also in accordance with AS-22 issued by ICAI.
8. The Company does not have seperate segements that are subject to seperate risk and returns. Hence segement wise reporting persuant to clause 41 of the listing agreement and AS -17 issued by the ICAI is not applicable to the Company.
9. Related Parties Disclosures in accordance with, AS-18 issued by ICAI. Transactions with related parties
a. Name of related party and nature of relationship.
Name of related party Nature of relationship
Shri Himanshu Sharma Director Smt. Neera Sharma Relative of Director Ms. Nidhi Sharma Relative of Director
b. Transaction during the year
Related party Nature of Transaction Amount in Rs.
Mr. Himanshu Sharma Directors Remuneration 300600 Including Allowance & reimbursement
Smt. Neera Sharma Salary Allowance & reimbursement 240480 Ms. Nidhi Sharma Salary & Allowance 1,20,000
10 There are no subsidary companies to the Company. The Company has not obtained any economic benefits from its activities with the associate Companies/firms hence provisions of AS-21 issued by ICAI are not applicable.
11. Previous year figures have been re-grouped wherever considered necessary.
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