2.16 Provisions and Contingencies:
Provisions are recognised when the company has a present
legal or constructive obligation as a result of past events, it is
probable that an outflow of resources will be required to settle
the obligation and the amount can be reliably estimated.
Provisions are not recognised for future operating losses.
Provisions are measured at the present value of management's
best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The discount
rate used to determine the present value is a pre-tax rate that
reflects current market assessments of the time value of money
and the risks specific to the liability. The increase in the provision
due to the passage of time is recognised as interest expense.
A provision for onerous contracts is recognized when the
expected benefits to be derived by the Company from a
contract are lower than the unavoidable cost of meeting
its obligations under the contract. The provision has been
recognised where cost to fulfil the terms of the project contracts
are estimated to be higher than financial and economics
benefits to be received. Before a provision is established,
the Company recognizes any impairment loss on the assets
associated with that contract.
Contingent liabilities are recognised at their fair value only,
if they were assumed as part of a business combination.
Contingent assets are not recognised. However, when the
realisation of income is virtually certain, then the related asset
is no longer a contingent asset, and is recognised as an asset.
Information on contingent liabilities is disclosed in the notes to
the financial statements, unless the possibility of an outflow of
resources embodying economic benefits is remote. The same
applies to contingent assets where an inflow of economic
benefits is probable.
2.17 Segment reporting:
Operating segments are reported in a manner consistent with
the internal reporting provided to the chief operating decision
maker. The chief operational decision maker monitors the
operating results of its business Segments separately for the
purpose of making decision about the resources allocation and
performance assessment. Segment performance is evaluated
based on the profit or loss and is measured consistently
with profit or loss in the financial statements. The operating
segments have been identified on the basis of the nature of
products/services.
2.18 Cash and cash equivalent:
Cash and cash equivalent in the balance sheet comprises
cash at bank and on hand and short-term deposits with an
original maturity of three months or less, which are subject to
an insignificant risk of changes in value. Bank overdrafts are
shown within borrowings in current liabilities in the balance
sheet.
2.19 Dividend distribution to equity shareholders:
Dividend distributed to Equity shareholders is recognised as
distribution to owners of capital in the Statement of Changes
in Equity, in the period in which it is paid.
2.20 Earnings per share:
The basic Earnings Per Share (“EPS”) is computed by dividing
the net profit/(loss) after tax for the year attributable to the
equity shareholders by the weighted average number of equity
shares outstanding during the year.
For the purpose of calculating diluted earnings per share, net
profit/(loss) after tax for the year attributable to the equity
shareholders and the weighted average number of equity
shares outstanding during the year are adjusted for the effects
of all dilutive potential equity shares.
2.21 Current/Non-current classification:
An assets is classified as current if:
(a) it is expected to be realised or sold or consumed in the
Company's normal operating cycle;
(b) it is held primarily for the purpose of trading;
(c) it is expected to be realised within twelvemonths after the
reporting period; or
(d) it is cash or a cash equivalent unless it is restricted from
being exchanged or used to settle a liability for at least
twelve months after the reporting period.
All other assets are classified as non-current.
A liability is classified as current if:
(a) it is expected to be settled in normal operating cycle;
(b) it is held primarily for the purpose of trading;
(c) it is expected to be settled within twelvemonths after the
reporting period;
(d) it has no unconditional right to defer the settlement of
the liability for at lease twelvemonths after the reporting
period.
All other liabilities are classified as non-current.
The operating cycle is the time between acquisition of assets for
processing and their realisation in cash and cash equivalents.
The Company's normal operating cycle is twelve months.
2.22 Significant accounting estimates, judgements
and assumptions:
The preparation of the Company's financial statements
in conformity with Ind AS requires management to make
judgements, 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. The estimates and associated assumptions are based
on historical experience and various other factors that are
believed to be reasonable under the circumstances existing
when the financial statements were prepared. The estimates
and underlying assumptions are reviewed on an ongoing basis.
Revision to accounting estimates is recognised in the year in
which the estimates are revised and in any future year affected.
In the process of applying the Company's accounting policies,
management has made the following judgements which have
significant effect on the amounts recognised in the financial
statements:
a. Useful lives of property, plant and equipment and
Goodwill:
Determination of the estimated useful life of tangible assets
and the assessment as to which components of the cost may
be capitalised. Useful life of tangible assets is based on the life
specified in Schedule II of the Companies Act, 2013 and also
as per management estimate for certain category of assets.
Assumption also need to be made, when company assesses,
whether as asset may be capitalised and which components
of the cost of the assets may be capitalised. The goodwill
recorded on merger has been amortised in accordance with
the power confirmed to Board of Directors by Honorable High
Court through scheme.
b. Arrangement containing lease:
At the inception of an arrangement whether the arrangement
is or contain lease. At the inception or reassessment of an
arrangement that contains a lease, Company separates
payments and other consideration required by the
arrangement into those for the lease and those for the other
elements on the basis of their relative fair values. The Company
has determined, based on an evaluation of the terms and
conditions of the arrangements, that such contracts are not in
the nature of leases.
c. Service Income:
The Company uses the percentage of completion method
in accounting for its fixed price contract. Use of percentage
of completion requires the Company to estimate the service
performed to date as a proportion of the total service to be
performed. Determination of the stage of completion is
technical matter and determined by the management experts.
d. Fair value measurement of financial instruments:
When the fair values of financial assets and financial liabilities
recorded in the Balance Sheet cannot be measured based on
quoted prices in active markets, their fair value is measured
using appropriate valuation techniques. The inputs for these
valuations are taken from observable sources where possible,
but where this is not feasible, a degree of judgement is required
in establishing fair values. Judgements include considerations
of various inputs including liquidity risk, credit risk, volatility
etc. Changes in assumptions/judgements about these factors
could affect the reported fair value of financial instruments.
e. Defined benefit plan:
The cost of the defined benefit gratuity plan and other post¬
employment benefits and the present value of the gratuity
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 and mortality rates. 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.
f. Allowances for uncollected accounts receivable and
advances:
Trade receivables do not carry interest and are stated at
their normal value as reduced by appropriate allowances for
estimated irrecoverable amounts. Individual trade receivables
are written off when management deems them not collectable.
Impairment is made on the expected credit loss model, which
are the present value of the cash shortfall over the expected life
of the financial assets. The impairment provisions for financial
assets are based on assumption about the risk of default and
expected loss rates. Judgement in making these assumption
and selecting the inputs to the impairment calculation are
based on past history, existing market condition as well as
forward looking estimates at the end of each reporting period.
g. Allowances for inventories:
Management reviews the inventory age listing on a periodic
basis. This review involves comparison of the carrying value
of the aged inventory items with the respective net realizable
value. The purpose is to ascertain whether an allowance
is required to be made in the financial statements for any
obsolete and slow-moving items. Management is satisfied that
adequate allowance for obsolete and slow-moving inventories
has been made in the financial statements.
h. 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 asset's recoverable amount.
An asset's recoverable amount is the higher of an asset's or
Cash Generating Units (CGU's) 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.
i. Taxation:
Deferred tax assets (Including MAT Credit) are recognised for
unused tax losses to the extent that it is probable that taxable
profit will be available against which the losses can be utilised.
Significant management judgment is required to determine the
amount of deferred tax assets that can be recognised, based
upon the likely timing and the level of future taxable profits
together with future tax planning strategies. Management
judgement is required for the calculation of provision for income
taxes and deferred tax assets and liabilities. Company reviews
at each balance sheet date the carrying amount of deferred
tax assets. The factors used in estimates may differ from actual
outcome which could lead to significant adjustment to the
amounts reported in the financial statements.
j. Contingencies:
Management judgement is required for estimating the possible
outflow of resources, if any, in respect of contingencies/claim/
litigation against company as it is not possible to predict the
outcome of pending matters with accuracy.
2.23 Recent Accounting Pronouncements:
Ministry of Corporate Affairs (“MCA") notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules, 2015 as issued from time
to time. For the year ended March 31, 2025, MCA has notified
IND AS - 117 Insurance Contracts, amendments to IND AS 116 -
Leases, relating to sale and leaseback transactions, applicable
to the Company w.e.f. April 1, 2024 and amendment to IND AS
21 - The Effects of Changes in Foreign Exchange Rates, relating
to currency exchangeability and applicability of conversion
rates, applicable to the Company w.e.f. April 1, 2025.
The Company has reviewed the new pronouncements and
based on its evaluation has determined that it does not have
any significant impact in its financial statements.
Key assumptions used in the value in use calculations
The Cash flow projections includes specific estimates for 5 years developed using expected margins, internal forecast and a
terminal growth rate thereafter of 3.50% p.a. The value assigned to the assumption reflects past experience and are consistent
with the management's plan for focusing operation in these locations. The management believes that the planned market share
growth per year for next 5 years is reasonably achievable.
Discount rate reflects the current market assessment of the risks specific to a CGU. The discount rate is estimated based on the
weighted average cost of capital for respective CGU. Post-tax discount rate used was 15.41% p.a.
The Company believes that any reasonably possible change in the key assumptions on which a recoverable amount is based
would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash generating unit.
Based on the above assumptions and analysis, no impairment was identified for any of the CGU as at 31st March, 2025.
Investments:
The investment at each CGU level is tested for impairment at least annually and when events occur or changes in circumstances
indicate that the recoverable amount is less than its carrying value. The recoverable amount is based on a value-in-use calculation
using the discounted cash flow method. The value-in-use calculation is made using the net present value of the projected post-tax
cash flows for next 5 years and the Terminal Value at the end of the 5 years (after considering the relevant long-term growth rate).
Key assumptions used in the value in use calculations:
The Cash flow projections includes specific estimates for 5 years developed using expected margins, internal forecast and a
terminal growth rate thereafter of 2.5% p.a. The value assigned to the assumption reflects past experience and are consistent with
the management's plan for focusing operation in these locations. The management believe that the planned market share growth
per year for next 5 years is reasonably achievable. Discount rate reflects the current market assessment of the risks specific to a
CGU.
The discount rate is estimated based on the weighted average cost of capital for respective CGU. Post-tax discount rate used was
6.22% p.a. for the year ended 31st March, 2025.
The Company believes that any reasonably possible change in the key assumptions on which a recoverable amount is based
would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash generating unit.
Based on the above assumptions and analysis, no impairment was identified for any of the CGU as at 31st March, 2025.
2. No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other
person.
3. Trade receivable due from private companies in which any director is a partner, director or a member is ? 0.49 crores
(Previous Year: ? 0.38 crores).
4. Trade receivable are non- interest bearing and are generally on credit terms in the rage of 45 to 180 days.
5. The company's exposure to credit and currency risk and loss allowances related to trade receivables are disclosed in Note 25.
6. For receivables pledge as securities against borrowings see Note 11.
7. Ageing of customers are considered from due date of invoice.
8. Trade receivables includes unbilled amount of ? Nil cr. (Previous Year: ? 2.44 crores).
The Company's activities expose it to market risk, liquidity risk and credit risk. The Company seeks to minimise the effects of
these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the
Company's policies approved by the Board of directors, which provides principles on foreign exchange risk, interest rate risk, credit
risk, use of financial derivatives etc. Compliance with policies and exposure limits is reviewed by risk management committee and
internal auditors. The Company does not enter into or trade financial instruments, including derivative financial instruments, for
speculative purpose.
The Company's audit committee also oversees how management monitors compliance with the Company's risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the
Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc
reviews of risk management controls and procedures, the results of which are reported to the audit committee.
(A) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company's trade and other receivables. The carrying amounts of financial
assets represent the maximum credit risk exposure.
1. Trade and Other receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics
of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on
credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company has
adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a
means of mitigating the risk of financial loss from defaults.
The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before
the standard payment and delivery terms and conditions are offered. The Company's review includes external ratings, if they are
available, financial statements, credit agency information, industry information and in some cases bank references. Sale limits are
established for each customer and reviewed periodically.
As at 31st March 2025, the carrying amount of the Company's largest customer which is its subsidiary (excluding advances) was
? 89.18 crores (Previous Year - ? 105.71 crores).
As at 31st March 2025 and 31st March 2024, the Company did not have any significant concentration of credit risk with any external
customers.
(i) Expected credit loss assessment for Trade and Other receivables as at 31st March, 2025 and 31st March, 2024
An impairment analysis is performed at each reporting date. The expected credit losses over lifetime of the asset are estimated
by adopting the simplified approach using a provision matrix. The loss rates are computed using a 'roll rate' method based on the
probability of receivable progressing through successive stages till full provision for the trade receivable is made.
2. Cash and bank balances
The Company held cash & cash equivalent including other Bank balance and Deposits held as margin money or security against
borrowings, guarantees and other commitments, of ? 96.75 crores at 31st March, 2025 (Previous Year: ? 16.11 crore). The same are
held with bank and financial institution counterparties with good credit rating.
3. Derivatives
The forward cover has been entered into with banks/financial institution counterparties with good credit rating.
4. Others
Other than trade receivables reported above, the Company has no other financial assets which carries any significant credit risk.
(B) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far
as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to the Company's reputation.
Management monitors rolling forecasts of the Company's liquidity position (comprising the undrawn borrowing facilities) and cash
and cash equivalents on the basis of expected cash flows. The Company's objective is to maintain a balance between continuity of
funding and flexibility through the use of bank overdraft/cash credit facility. The Company also monitors the level of expected cash
inflows on trade receivables and loans together with expected cash outflows on trade payables and other financial liabilities. The
Company has access to a sufficient variety of sources of short term funding with existing lenders. The Company has arrangements
with the reputed banks and has unused line of credit that could be drawn upon should there be need.
(i) Maturities of financial liabilities
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and
undiscounted, and exclude the impact of netting agreements:
(C) Market risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates
and prices (such as interest rates and foreign currency exchange rates) or in the price of market risk-sensitive instruments as a result
of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all
foreign currency receivables and payables and all short-term and long-term debt. The Company is exposed to market risk primarily
related to foreign exchange rate risk and interest rate risk.
(i) Foreign currency risk
The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily
with respect to the USD, EURO, GBP, CHF, Chinese Renminbi (RMB) and SGD. The Company has in place a Risk management
policy to manage the foreign exchange exposure.
The Foreign currency exchange rate exposure is partly balanced through natural hedge, where in the company's borrowing is in
foreign currency and cash flow generated from financial assets is also in same foreign currency. This provide an economic hedge
without derivatives being entered into and therefore hedge accounting not applied in these circumstances.
In respect of other monetary assets and liabilities denominated in foreign currencies, the Company's policy is to ensure that its net
exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term
imbalances.
The Company enters into foreign currency forward contracts and other authorized derivative contracts, which are not intended for
trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the
settlement date of certain payables/receivables and borrowings.
The Company uses derivative instruments, mainly foreign exchange forward contracts to mitigate the risk of changes in foreign
currency exchange rates in line with the policy.
The Company hedges majority of its estimated foreign currency exposure in respect of annual forecast sales and certain portion
of forecast sales for future years. The Company uses forward exchange contracts to hedge its currency risk, most with a maturity
of one year or less from the reporting date.
(ii) Cash flow and fair value interest rate risk
Interest rate risk is the risk that the fair value or future cashflows of a financial instrument will fluctuate because of changes in
market interest rates. The Company's main interest rate risk arises from long-term borrowings with variable rates, which expose the
Company to cash flow interest rate risk.
The company's fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in
Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
The Company's approach to managing interest rate risk is to have a judicious mix of borrowed funds with fixed and floating interest
rate obligation.
(D) Hedge Accounting
The Company's business objective includes safe-guarding its earnings against adverse effect of foreign exchange and interest
rates. The Company has adopted a structured risk management policy to hedge all these risks within an acceptable risk limit and
an approved hedge accounting framework which allows for Cash Flow hedges. Hedging instruments include forwards and swap
as derivative instruments to achieve this objective. The table below shows the position of hedging instruments and hedged items
as on the balance sheet date.
NOTE 26: 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 primary objective of the Company's capital management is to safeguard
the Company's ability to remain as a going concern and maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions, annual operating
plans and long term and other strategic investment plans. In order to maintain or adjust the capital structure, the Company may
adjust the amount of dividends paid to shareholders or return capital to shareholders.
The Company's goal is to continue to be able to return excess liquidity to shareholders by continuing to distribute annual dividends
in future periods. The amount of future dividends of equity shares will be balanced with efforts to continue to maintain an adequate
liquidity status.
The Company monitors capital using a ratio of 'adjusted net debt' to 'equity'. For this purpose, adjusted net debt is defined as
total liabilities, comprising interest-bearing loans and borrowings less cash and cash equivalents and Investment in marketable
instruments. Equity comprises all components of equity including share premium and all other equity reserves attributable to the
equity share holders.
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. There have
been no breaches in the financial covenants of any interest-bearing loans and borrowings in the current period.
No changes were made in the objectives, policies or processes for managing capital of the Company during the current and
previous year.
NOTE 27: EMPLOYEE BENEFITS
The Company has an obligation towards gratuity, a defined benefit obligation. The benefits are governed by the Payment of
Gratuity Act, 1972. The company makes lumpsum payment to vested employees an amount based on 15 days last drawn basic
salary including dearness allowance (if any) for each completed year of service or part thereof in excess of six months. Vesting
occurs upon completion of five years of service.
The most recent actuarial valuation of the defined benefit obligation was carried out at the balance sheet date. The present value
of the defined benefit obligations and the related current service cost and past service cost were measured using the Projected
Unit Credit Method.
Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation
as at balance sheet date:
B. Defined contribution plan
The Company makes contributions towards provident fund and super annuation fund which are in the nature of defined
contribution post employment benefit plans. Under the plan, the Company is required to contribute a specified percentage of
payroll cost to fund the benefits. Amount recognised as an expense in the Statement of Profit and Loss - included in Note 19 -
“Contribution to provident and other funds” ? 2.29 crore (Previous Year - ? 2.22 crore ). The contributions payable to these plans by
the Company are at rates specified in the rules of the schemes.
NOTE 28: MERGER OF DISHMAN PHARMACEUTICALS AND CHEMICALS LTD WITH THE COMPANY
The amalgamation held between Dishman Pharmaceuticals and Chemical Limited and Dishman Care Limited into Dishman
Carbogen Amcis Limited accounted in the year 2016-17 under the “Purchase Method” as per the then prevailing Accounting
Standard 14 - Accounting for Amalgamations, as referred to in the Scheme of Amalgamation approved by the Hon'ble High
Court, Gujarat, which is different from Ind AS 103 “Business Combinations”. The excess of consideration payable over net assets
acquired had been recorded as goodwill amounting to ? 1,326.86 crores, represented by underlying intangible assets acquired on
amalgamation and was being amortized over the period of 15 years from the Appointed Date i.e. 1st January, 2015.
The value of the Goodwill had already been reduced by ? 641.28 crores by March 31, 2022, the Board re-assessed the life of the
Goodwill looking at the expected growth and benefits available to the Company. Taking a conservative view, considering the
possible impact of COVID and the delay in clearance of EDQM observations for the Bavla site, the Board revised the useful life
of goodwill to 15 years starting from 1st April 2022 instead of the remainder useful life of 7 years, with a next time frame to further
re-assess the same after COVID and major regulatory clearance.
After successfully completing all major regulatory audit in last six to twelve months and the impact of COVID having phased out,
the Board now expects the performance of the India business to improve and the current value of Goodwill as on 1st April, 2024
of ? 594.17 Crores as reflecting a fair value of the intangible assets for a sustainably long period. The robust outlook in the CDMO
sector also supports the company's path for growth.
Considering all above factors, Board has decided to keep the current goodwill value of ? 594.17 Crores till perpetuity i.e. 99 years
considering life with effect from Janaury 1, 2015. This change in estimate of life will be applicable prospectively over the remaining
useful life starting from 1st April, 2024. The goodwill will tested for impairment at the end of every financial year.
Had the goodwill not been amortized as required under Ind AS 103, the Depreciation and Amortization expense for the year ended
31st March, 2025 would have been lower by ? 6.60 crores (Previous year ? 45.71 crores) and the Loss Before Tax for the year ended
31st March, 2025 have been lower by an equivalent amount.
NOTE 36: SEGMENT REPORTING
Group is required to disclose segment information based on the
'management approach' as defined in Ind AS 108- Operating
Segments, which is how the Chief Operating Decision Maker
(CODM) evaluates the Group's performance and allocates
resources based on the analysis of the various performance
indicators. CODM reviews the results of the Group engaged
in the business of Contract Development and Manufacturing
Organisation (CDMO), quats, specialty chemicals, Vitamins
D3 and its analogues, cholesterols etc. Accordingly, Group as
a whole is a single segment. The information as required under
Ind AS 108 is available directly from the financial statements,
hence no separate disclosure has been made.
NOTE 37: EXCEPTIONAL ITEMS
a) During the previous year, the Company discarded certain
inventory, which was not expected to be usable for
projects that the company estimated to undertake in near
to mid-term. The loss on account of this impairment was
f 3.05 Crores.
NOTE 38: CLOSURE NAMI TRADING FZ LLC
Nami Trading FZ LLC registered with Ras Al Khaimah Economic
Zone, UAE has been de-registered w.e.f. 17th May, 2024, which
was dormant since long. The Company had invested in the said
Company an amount of AED 15,000 (f 4.00 lacs).
NOTE 39:
The Company is not as large Corporate as per applicability
of criteria given under the SEBI circular SEBI/HO/DDHS/
CIR/2018/144 dated November 20, 2018.
NOTE 40: ADDITIONAL REGULARY INFORMATION
A. Title deed of immovable property:
The title deeds of all the immovable properties are held in
the name of the company, however, in respect of one lease
hold land with gross block of f 104.70 Crores and net block
of f 93.43 Crores, the lease deed has been executed but not
registered with relevant authorities.
B. Valuation of Property Plant & Equipment, intangible
asset:
The Company has not revalued its property, plant and
equipment or intangible assets or both during the current or
previous year.
C. Details of benami property held:
No proceedings have been initiated on or are pending against
the Company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules
made thereunder.
D. Borrowing secured against current assets:
The Company has borrowings from banks on the basis of
security of current assets. The quarterly returns or statements
of current assets filed by the Company with banks are in
agreement with the books of accounts.
E. Wilful defaulter:
The Company has not been declared wilful defaulter by any
bank or financial institution or other lender.
F. Relationship with struck off companies:
The Company has no transactions with the companies struck
off under Section 248 of the Companies Act, 2013 or Section
560 of the Companies Act, 1956 except mentioned below:
G. Registration of charges or satisfaction with
Registrar of Companies (ROC):
There are no charges or satisfaction yet to be registered with
Registrar of Companies (ROC) beyond the statutory period
except for vehicle loan availed by the Company, amounting
to ? 1.59 Crores relating to creation for which Bank's charge
is registered with RTO, Bank has not intended for the same
and while ? 1.91 Crores relating to satisfaction, the same has
not been registered with ROC due to non-receipt of no due
certificate from bank.
H. Compliance with number of layers of companies:
The Company has complied with the number of layers
prescribed under the Section 2(87) of the Companies Act,
2013 read with Companies (Restriction on number of layers)
Rules, 2017.
I. Utilisation of borrowed funds and share premium:
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
or entity, including foreign entities (“Intermediaries”) 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(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 (“Ultimate Beneficiaries”) or
provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
J. Undisclosed income:
There is no income surrendered or disclosed as income during
the current or previous year in the tax assessments under the
IncomeTax Act, 1961, that has not been recorded previously in
the books of account.
K. Details of crypto currency or virtual currency:
The Company has not traded or invested in crypto currency or
virtual currency during the current or previous year.
L. Utilisation of borrowings availed from banks and
financial institutions:
The borrowings obtained by the company from banks and
financial institutions have been applied for the purposes for
which such loans were taken.
NOTE 41:
The Company uses an accounting software for maintaining its
books of account which has a feature of recording audit trail
(edit log) facility and the same has operated throughout the
year for all relevant transactions recorded in the accounting
software. However, Audit trail feature is not available at the
database level for the underlying HANA database for the year.
Further no instance of audit trail feature being tampered with
was noted in respect of the accounting software.
NOTE 42:
The Code on Social Security, 2020 ('Code') relating to employee
benefits during employment and post-employment benefits
received Presidential assent in September 2020. The Code has
been published in the Gazette of India. However, the date on
which the Code will come into effect has not been notified. The
Company will assess the impact of the Code when it comes
into effect and will record any related impact in the period the
Code becomes effective.
NOTE 43:
Previous year figures are regrouped/reclassified wherever
required to make them comparable.
NOTE 44:
The Company evaluates events and transactions that occur
subsequent to the balance sheet date but prior to the financial
statements to determine the necessity for recognition and/
or reporting of any of these events and transactions in the
financial statements. As of 21st May, 2025 there were no
subsequent events to be recognized or reported that are not
already disclosed.
NOTE 45:
The financial statements were authorised for issue by the
Company's Audit Committee and Board of directors at their
respective meetings on 21st May, 2025.
NOTE 46: RATIO IN COMPALIANCE WITH SCHEDULE III (Contd.)
Notes:
1. Net Debt = Total Debt (Long Term Short Term)excluding lease liabilities - Cash & Cash equivalent (including Other bank
balances, Deposits and liquid investments)
2. Earning for Debt Service includes Net profit non cash expenses Interest on term loan.
3. Debt Service includes Interest on term loan current maturity of Long term borrowing.
4. The Company had received fund infusion from Group Entities in form of long term supplies advance,which was utilise to
service the debt.
As per our attached report of even date For and on behalf of the Board of Directors
For T R Chadha & Co. LLP Arpit J. Vyas Deohooti J. Vyas
Chartered Accountants Global Managing Director WholeTime Director
Firm's Reg. No: 006711N/N500028 DIN: 01540057 DIN: 00004876
Brijesh Thakkar Harshil R. Dalal Shrima G. Dave
Partner Global CFO Company Secretary
Membership No. 135556 ACS 29292
Place: Ahmedabad Place: Ahmedabad
Date: 21st May, 2025 Date: 21st May, 2025
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