2.B.16 Provisions, Contingent Liabilities and Contingent Assets
A provision is recognised when the Company has a present obligation (legal or constructive) as a result of past events and
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, in respect
of which a reliable estimate can be made of the amount of obligation. Provisions (excluding gratuity and compensated
absences) are determined based on management's estimate required to settle the obligation at the Balance Sheet date. In
case the time value of money is material, provisions are discounted using a current pre-tax rate that reflects 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. These are reviewed at each Balance Sheet date and adjusted to reflect the current management estimates.
Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose existence would
be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control
of the Company. A contingent liability also arises, in rare cases, where a liability cannot be recognised because it cannot be
measured reliably.
2.B.17 Share Issue Expenses
Share issue expenses are adjusted against the Securities Premium Account as permissible under Section 52(2) of the
Companies Act, 2013, to the extent balance is available for utilization in the Securities Premium Account.
2.B.18 Rounding of amounts
All amounts disclosed in the financials statements and notes have been rounded off to the nearest lakhs as per the
requirement of Schedule III.
2.B.19 Cash Flows
Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities
are segregated.
2.C New and revised Ind As in issue but not yet effective
The company has adopted, with effect from April 1, 2024, the following new and revised standards and interpretations.
Their adoption has not had any significant impact on the amounts reported in the financial statements.
(i) MCA has issued amendments to IND AS 116 concerning sale and leaseback contracts. The amendment specifies
the requirements for a seller-lessee in measuring the lease liability arising from a sale and leaseback transaction. It
ensures that the seller-lessee does not recognize any amount of the gain or loss related to the right of use it retains.
The total expenses related to the preferential issue, amounting to Rs.292.44 lakhs (excluding taxes), were offset against the
securities premium of Rs.4,221.82 lakhs arising from the preferential issue.
During the previous year, the Company issued 15,43,926 equity shares of Rs.10/- each at a premium of Rs.65/- per share on
a rights basis to eligible shareholders whose names appeared on the record date announced by the Company. As a result, the
Company's share capital increased from Rs.2,470.28 lakhs to Rs.2,624.67 Lakhs. The necessary listing and trading approvals for the
rights issue were obtained from BSE Limited (the designated stock exchange) and the National Stock Exchange of India Limited.
Terms/rights attached to equity shares:
(i) The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled
to one vote per share.
(ii) In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the
company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity
shares held by the shareholders.
Nature and purpose of reserves
Securities premium reserve
The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve.
Retained earnings
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, if any.
Remeasurements of Net Defined Benefit Plans:
Differences between the interest income on plan assets and the return actually achieved, and any changes in the liabilities over the
year due to changes in actuarial assumptions or experience adjustments within the plans, are recognised in 'Other comprehensive
income' and subsequently not reclassified to the Statement of Profit and Loss.
Note 39 : Segment Reporting as required under Indian Accounting Standard 108, “Operating Segments”:
A. Basis for segmentation
The operations of the Company are limited to one segment viz. Pharmaceutical products including ingredients and
intermediaries.The products being sold under this segment are of similar nature and comprises of pharmaceutical products
only.The Company's Chief Operating Decision Maker (CODM) reviews the internal management reports prepared based
on aggregation of financial information of the Company on a periodic basis, for the purpose of allocation of resources and
evaluation of performance. Accordingly, management has identified pharmaceutical segment as the only operating segment
for the Company,hence does not have any reportable Segments as per Ind AS 108 "Operating Segments”.
Further, from three external customers of the company has revenue of Rs. 3,572.87 lakhs ( P Y Rs. 2,102.51 lakhs from two
customers) more than 10% of the total revenue from operations.
Note 40 : Leases:
Effective April 1, 2019, the Company has adopted Ind AS 116, Leases, using modified retrospective approach. On adoption of the
new standard IND AS 116 resulted in recognition of 'Right of Use' assets and lease liability. The cumulative effect of applying the
standard has been debited to retained earnings. The effect of this adoption is insignificant on the profit before tax, profit for the
period and earnings per share. Ind AS 116 will result in an increase in cash inflows from operating activities and an increase in cash
outflows from financing activities on account of lease payments.
(ii) Fair value hierarchy
Fair value hierarchy explains the judgement and estimates made in determining the fair values of the financial instruments that
are -
a) recognised and measured at fair value
b) measured at amortised cost and for which fair values are disclosed in the financial statements.
To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its
financial instruments into the three levels prescribed under the accounting standard.
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices)
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)
Assets and Liabilities that are disclosed at Amortised Cost for which Fair values are disclosed are classified as Level 3.
If one or more of the significant inputs is not based on observable market data, the respective assets and liabilities are
considered under Level 3.
Note 43 : Financial risk management objectives and policies
The Company's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company's focus is
to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.
i. Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk. Major financial
instruments affected by market risk includes loans and borrowings.
a) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily
to the Company's total debt obligations with floating interest rates.
The interest rate profile of the Company's interest-bearing financial instruments as reported to the management of the
Company is as follows:
The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable
market environment, showing a significantly higher volatility than in prior years.
b) Foreign currency risk
The Company is exposed to currency risk on account of its operating and financing activities. The functional currency
of the Company is Indian Rupee. Our exposure are mainly denominated in U.S. dollars and Euros. The Company's
business model incorporates assumptions on currency risks and ensures any exposure is covered through the normal
Sensitivity analysis
A reasonably possible strengthening / (weakening) of the Indian Rupee against US dollars and European dollars at 31st
March 2024 would have affected the measurement of financial instruments denominated in US dollars and affected
profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates,
remain constant and ignores any impact of forecast sales and purchases. In cases where the related foreign exchange
fluctuation is capitalised to fixed assets or recognised directly in reserves, the impact indicated below may affect the
Company's income statement over the remaining life of the related fixed assets or the remaining tenure of the borrowing
respectively.
c) Other price risk
The Company is not exposed to any other price risk.
ii. Credit risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure
of the financial assets are contributed by trade and other receivables, cash and cash equivalents and security deposits.
Trade receivables
The Company extends credit to customers in normal course of business. The Company considers factors such as credit track
record in the market and past dealings for extension of credit to customers. To manage credit risk, the Company periodically
assesses the financial reliability of the customer, taking into account the financial condition, current economic trends, and
analysis of historical bad debts and ageing of accounts receivables. Outstanding customer receivables are regularly monitored
to make an assessment of recoverability. Receivables are provided as doubtful / written off, when there is no reasonable
expectation of recovery. Where receivables have been provided / written off, the company continues regular follow up,engage
with the customers, legal options / any other remedies available with the objective of recovering these outstandings.The
Company is not exposed to concentration of credit risk to any one single customer since services are provided to vast specturm.
iii. Liquidity risk
Liquidity is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable
price. The Company's treasury department is responsible for liquidity, funding as well as settlement management. In addition,
processes and policies related to such risks are overseen by senior management. Management monitors the Company's net
liquidity position through rolling forecasts on the basis of expected cash flows.
Note 44 : Capital management
For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable to
the equity holders of the Company. The Company strives to safeguard its ability to continue as a going concern so that they can maximise
returns for the shareholders and benefits for other stake holders. The aim to maintain an optimal capital structure and minimise cost of
capital.
To maintain or adjust the capital structure, the Company usually turns to reputed banks and other financial institutions for funds.
Consistent with others in the industry, the Company monitors its capital using the gearing ratio which is total debt divided by total
capital plus total debts.
Note 45 : Corporate social responsibility (CSR)
The Provisions for Corporate Social Responsibility as per Section 135 of Companies act 2013 are not applicable to the company.
Note 46 : Disclosures with regards to section 186 of the Companies Act, 2013
For Investments, Refer note 4.
For corporate guarantees given, Refer note 37.
The Company has not granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited
Liability Partnerships or any other parties.
Note 47 : ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE COMPANIES ACT, 2013
1 The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending
against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
Rules made thereunder.
2 The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any
government authority.
3 The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the
Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.
4 Utilisation of borrowed funds and share premium
I The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Company (Ultimate Beneficiaries) or
(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
II The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
5 There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961
(such as search or survey), that has not been recorded in the books of account.
6 The Company has not traded or invested in crypto currency or virtual currency during the year.
7 The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies
beyond the statutory period.
8 The Company has not revalued any of its Property, Plant and Equipment during the year.
9 The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 (as
amended) or section 560 of the Companies Act, 1956.
Note 49 : Prior year comparatives
The financial statements for the year ended 31st March, 2024 were audited by another firm of Chartered Accountants and the same
have been regrouped, re-arranged and reclassified, wherever considered necessary, to confirm with the current year's presentation.
Figures wherever not available/ furnished, if any in last year's financial statements have not been given and hence are not strictly
comparable.
In terms of our report on even date
For DMKH & Co For and on behalf of the Board of Directors
Chartered Accountants Brooks Laboratories Limited
FRN. 116886W
Sd/- Sd/- Sd/- Sd/- Sd/-
Shikha Kabra Bhushan Singh Rana Durga Shankar Maity Prashant Rathi Krutika Rane
Partner Wholetime Director Wholetime Director CFO Company Secretary
M.No:- 179437 Din : 10289384 Din : 03136361
Place: Mumbai Place: Baddi
Date : May 28, 2025 Date : May 28, 2025
| 