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Company Information

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ADVANCED ENZYME TECHNOLOGIES LTD.

01 August 2025 | 12:00

Industry >> Pharmaceuticals

Select Another Company

ISIN No INE837H01020 BSE Code / NSE Code 540025 / ADVENZYMES Book Value (Rs.) 119.92 Face Value 2.00
Bookclosure 23/07/2025 52Week High 571 EPS 11.72 P/E 30.75
Market Cap. 4031.64 Cr. 52Week Low 258 P/BV / Div Yield (%) 3.00 / 1.44 Market Lot 1.00
Security Type Other

ACCOUNTING POLICY

You can view the entire text of Accounting Policy of the company for the latest year.
Year End :2025-03 

1 Corporate Information

Advanced Enzyme Technologies Limited (‘the Company')
(CIN: L24200MH1989PLC051018) is engaged in the
business of manufacturing and sales of enzymes.

The Company is a public limited company and was
incorporated on 15 March 1989 under the provisions
of Companies Act, 1956 and is domiclied in India. The
corporate office of the Company is situated at Sun
Magnetica, A Wing, 5th floor, Near LIC Service Road, Louis
Wadi, Thane (West) - 400 604.

The equity shares of the Company are listed on National
Stock Exchange of India Limited (NSE) via id ADVENZYMES
and on BSE Limited (BSE) via Id 540025.

The Board of Directors approved the standalone financial
statements for the year ended 31 March 2025 and
authorised for issue on 13 May 2025.

2 Statement of compliance

These standalone financial statements have been prepared
in accordance with the Indian Accounting Standards
(referred to as “Ind AS”) as prescribed under section 133 of
the Companies Act, 2013 read with the Companies (Indian
Accounting Standards) Rules as amended from time to
time

3 Basis of preparation

These Standalone financial statements have been
prepared on a historical cost basis, except for certain
financial instruments and defined benefit plans which are
measured at fair value at the end of each reporting period.
Historical cost is generally based on the fair value of the
consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.

All the assets and liabilities have been classified as current
or non current as per the Company’s normal operating
cycle and other criteria set out in Schedule III to the Act.
Based on the nature of products and the time between the
acquisition of assets for processing and their realization
in cash and cash equivalent, the Company has ascertained
the operating cycle to be 12 months.

The statement of cash flows has been prepared under
indirect method, whereby profit or loss 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 items of income or expense associated
with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the
Company are segregated. The Company considers all highly
liquid investments that are readily convertible to known
amounts of cash and are subject to an insignificant risk of
changes in value to be cash equivalents

Functional and presentation currency:

These Standalone financial statements are presented in
Indian rupees, which is the Company’s functional currency.
All amounts have been rounded off to two decimal places
to the nearest million, unless otherwise indicated.

Going concern:

These standalone financial statements are prepared on
going concern basis.

4 Use of estimates

The preparation of standalone financial statements in
conformity with Ind AS requires the management to make
use of judgements, estimates and assumptions, that affect
the application of accounting policies and the reported
amounts of assets and liabilities, revenue and expenses
and disclosure of contingent liabilities. The estimates and
assumptions used in accompanying financial statements
are based upon management’s evaluation of the relevant
facts and circumstances as of the date of the financial
statements. Actual results may differ from the estimates
and assumptions used in preparing the accompanying
standalone financial statements and reviewed on an
ongoing basis. Any revision to accounting estimates is
recognized prospectively in current and future periods.

Assumptions and estimation uncertainties that have a
significant risk of resulting in a material adjustment in the
year ended 31 March 2025 are as follows:

a. Depreciation and amortisation

Depreciation and amortisation is based on
management estimates of the future useful lives of
the property, plant and equipment and intangible
assets. The management estimates the useful lives of
tangible assets similar to the useful life prescribed in
Schedule II of the Act. In cases, where the useful lives
are different from that prescribed in Schedule II, they
are based on technical advice, taking into account the
nature of the asset, the estimated usage of the asset,
the operating conditions of the asset, past history
of replacement, anticipated technological changes,
manufacturers’ warranties and maintenance support.

Estimates may change due to technological
developments, competition, changes in market
conditions and other factors and may result in
changes in the estimated useful life and in the
depreciation and amortisation charges.

b. Defined benefit plans

The cost of the defined benefit gratuity plan 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. In
determining the appropriate discount rate for plans
operated in India, the management considers the
interest rates of government bonds where remaining
maturity of such bond correspond to expected term of
defined benefit obligation.

The mortality rate is based on publicly available
mortality tables. Those mortality tables tend to change
only at interval in response to demographic changes.

Future salary increases and gratuity increases are
based on expected future inflation rates.

All assumptions are reviewed at each reporting date.

c. Provision for income tax and deferred tax assets

The Company uses judgements based on the relevant
rulings in the areas of allowances and disallowances
which is exercised while determining the provision for
income tax. A deferred tax asset is recognised to the
extent that it is probable that future taxable profit will
be available against which the deductible temporary
differences, tax losses and unabsorbed depreciation
can be utilised. Accordingly, the Company exercises
its judgement to reassess the carrying amount of
deferred tax assets at the end of each reporting
period.

d. Recognition and measurement of other provisions

The recognition and measurement of other provisions
are based on the assessment of the probability of
an outflow of resources, and on past experience and
circumstances known at the balance sheet date.
The actual outflow of resources at a future date may
therefore vary from the amount included in other
provisions.

e. Provision for expected credit losses (ECL) of trade
receivables

The Company uses a provision matrix to calculate
ECLs for trade receivables. The provision rates are
based on days past due for Groupings of various
customer segments that have similar loss patterns
(i.e., by aging of receivables after considering letters
of credit and other forms of security).

The provision matrix is initially based on the
Company's historical observed default rates. At
every reporting date, the historical observed default
rates are updated. The Company's historical credit
loss experience and forecast of economic conditions
may also not be representative of customer’s actual
default in the future.

f. Measurement of fair values

The Company’s material accounting policies and
disclosures require the measurement of fair values,
for both financial and non-financial assets and
liabilities.

The Company has an established control framework
with respect to the measurement of fair values,
which includes overseeing all significant fair value
measurements, including Level 3 fair values by the
management. The management regularly reviews
significant unobservable inputs and valuation
adjustments. If third party information, such as
broker quotes or pricing services, is used to measure
fair values, then the management assesses the
evidence obtained from the third parties to support
the conclusion that such valuations meet the
requirements of Ind AS, including the level in the fair
value hierarchy in which such valuations should be
classified.

When measuring the fair value of a financial asset
or a financial liability, the Company uses observable
market data as far as possible. Fair values are
categorised into different levels in a fair value
hierarchy based on the inputs used in the valuation
techniques as follows.

- Level 1: quoted prices (unadjusted) in active
markets for identical assets or liabilities.

- Level 2: inputs other than quoted prices included
in 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 asset or liability that
are not based on observable market data
(unobservable inputs).

I f the inputs used to measure the fair value of an
asset or a liability fall into different levels of the fair
value hierarchy, then the fair value measurement is
categorised in its entirety in the same level of the
fair value hierarchy as the lowest level input that is
significant to the entire measurement. The Company
recognises transfers between levels of the fair value
hierarchy at the end of the reporting period during
which the change has occurred.

5 Standards issued but not yet effective

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued
from time to time. For the year ended March 31, 2025,
MCA has notified a new Accounting Standard Ind AS 117
on Insurance Contracts and a amendment to Ind AS 116
on Leases to existing standards however these are not
applicable to the Company.

6 Material accounting policies:

The accounting policies set out below have been applied
consistently to the periods presented in the financial
statements.

a. Revenue and other income
Revenue recognition

i. The Company recognises revenue from sale
of goods measured upon satisfaction of
performance obligation which is at a point of
time when the control of goods is transferred
to the customer. Revenue is measured based on
transaction price, which is the consideration,
adjusted for estimated returns and allowances,
discounts and volume rebates, if any, as specified
in the contracts with the customers. Sales are
exclusive of Goods and Service Tax (GST).

ii. Export incentives received pursuant to the Duty
Drawback Scheme and Remission of Duties
and Taxes on Exported Products (RoDTEP) are
accounted on an accrual basis, to the extent it is
probable that realization is certain.

Other income

i Interest income is recognized on a time
proportionate basis, taking into account the
amount outstanding and the rates applicable.

ii Dividend income is recognized when the
Company’s right to receive dividend is
established by the reporting date.

b. Property, plant and equipment and depreciation

Recognition and measurement

i. Items of property, plant and equipment are
stated at cost less accumulated depreciation
and amortisation and accumulated impairment
losses, if any. Cost includes taxes, non
refundable duties and taxes, freight and
other incidental expenses directly related to
acquisition/construction and installation of the
assets. Any trade discounts and rebates are
deducted in arriving the purchase price. Interest
on borrowings to finance acquisition of property,
plant and equipment during qualifying period is
capitalized.

ii. Leasehold improvements represent expenses

incurred towards civil work and interior

furnishings on the leased premises.

iii. An asset is eliminated from the financial

statements on disposal or when no further
benefit is expected from its use and disposal.
Gains / losses arising from disposal of property,
plant and equipment carried at cost are
recognised in the Statement of Profit and Loss.

iv. Capital work-in-progress includes assets

not ready for their intended use and related
incidental expenses and attributable interest.

v. The Company has elected to continue with
the carrying value of all its property, plant and
equipment as recognized in the standalone
financial statements as at the date of transition
to Ind AS, measured as per the previous GAAP
and use that as the deemed cost as at the
transition date pursuant to the exemption under
Ind AS 101.

Subsequent expenditure

vi. Subsequent expenditure is capitalised only if it
is probable that the future economic benefits
associated with the expenditure will flow to the
Company.

Useful life

vii. The Company has reviewed its policy for
providing depreciation on its tangible assets and
has also reassessed their useful lives as per Part
C of Schedule II of the Act. The revised useful
lives, as assessed by the management, match
those specified in Part C of Schedule II of the
Act, for all classes of tangible assets.

The estimated useful life of assets are as follows:

Depreciation

vii. Depreciation on tangible fixed assets other
than plant and equipment and residential flat
included under buildings has been provided on
Written Down Value method and on plant and
equipment and on residential flat included under
buildings on Straight Line Method. Depreciation
is provided on a pro-rata basis, i.e. from the date
on which asset is ready for use.

viii. Leasehold improvements and leasehold land
are amortized on Straight Line Method over the
unexpired primary period of lease.

:. Intangible assets

i. Intangible assets are stated at cost of
acquisition less accumulated amortisation and
accumulated impairment losses, if any.

ii. Costs relating to acquisition of technical
know-how and software are capitalized as
intangible assets. Further, the expenditure
incurred towards product studies during the
development of product dossiers are grouped
under "Intangible assets under development" to
the extent such expenditure meet the criteria of
intangible asset.

iii. Subsequent expenditure is capitalised only
when it increases the future economic benefits
embodied in the specific asset to which it
relates.

iv. An intangible asset is eliminated from the
financial statements on disposal or when no
further benefit is expected from its use and
disposal. Gains / losses arising from disposal are
recognised in the Statement of Profit and Loss.

v. Any expected loss is recognized immediately in
the Statement of Profit and Loss.

vi. Intangible assets that are ready for use are
amortized on a straight line basis as follows:

d. Impairment of non-financial assets

The carrying values of assets at each balance sheet
date are reviewed for impairment if any indication of
impairment exists.

If the carrying amount of the assets exceed the
estimated recoverable amount, an impairment is
recognized for such excess amount. The impairment
loss is recognized as an expense in the Statement of
Profit and Loss, unless the asset is carried at revalued
amount, in which case any impairment loss of the
revalued asset is treated as a revaluation decrease to
the extent a revaluation reserve is available for that
asset.

The recoverable amount is the greater of the net
selling price and their value in use. Value in use is
arrived at by discounting the future cash flows to
their present value based on an appropriate discount
factor.

When there is indication that an impairment loss
recognized for an asset (other than a revalued asset)
in earlier accounting periods no longer exists or may
have decreased, such reversal of impairment loss
is recognized in the Statement of Profit and Loss,
to the extent the amount was previously charged to
the Statement of Profit and Loss. In case of revalued
assets such reversal is not recognized.

e. Foreign currency transactions

i. Functional and presentation currency -
Items included in these standalone financial
statements are measured using the currency of
the primary economic environment in which the
entity operates (‘the functional currency’). These
standalone financial statements are presented
in Indian rupee (INR), which is the Company’s
functional and presentation currency.

ii. Initial recognition - Foreign currency transactions
are recorded in the functional currency, by
applying to the foreign currency amount the
exchange rate between the functional currency
and the foreign currency at the date of the
transaction. All exchange differences arising
on settlement/conversion on foreign currency
transactions are included in the Statement of
Profit and Loss in the period in which they arise.

iii. Subsequent measurement- Monetary assets
and liabilities denominated in foreign currencies
are translated into the functional currency at
the exchange rate at the reporting date. Non¬
monetary assets and liabilities that are measured
at fair value in a foreign currency are translated
into the functional currency at the exchange rate
when the fair value was determined. Foreign
currency differences are generally recognised in
the Statement of Profit and Loss. Non-monetary
items that are measured based on historical
cost in a foreign currency are not translated.

f. Share-based payments

Employees Stock Option Plans (“ESOPs”):

Equity-settled plans are accounted at fair value
as at the grant date. The fair value of the share-
based option is determined at the grant date using a
market-based option valuation model (Black Scholes
Option Valuation Model). The fair value of the option
is recorded as compensation expense amortized over
the vesting period of the options, with a corresponding
increase in Reserves and Surplus under the head
"Employee Stock Option Reserve". On exercise of the
option, the proceeds are recorded as share capital.

The cumulative expense recognized for equity-settled
transactions at each reporting date until the vesting
date reflects the extent to which the vesting period
has expired and the Company's best estimate of the
number of equity instruments that will ultimately
vest. The charge or credit to the Statement of Profit
and Loss for a period represents the movement in
cumulative expense recognized as at the beginning
and end of that period and is recognized in employee
benefits expense.

Service and non-market performance conditions
are not taken into account when determining the
grant date fair value of awards, but the likelihood of
the conditions being met is assessed as part of the
Company's best estimate of the number of equity
instruments that will ultimately vest.

Employee stock options provided to the employees
of subsidiary under a group plan is accounted as
capital contribution to the subsidiary, if no payments
for related costs from the subsidiary to the Company
is agreed, and recorded as investments in the
standalone financial statements.

g. Inventories

i. Inventories of raw materials, packing materials,
consumables, finished goods and work-in
-process are valued at lower of cost or net
realizable value on an item-by-item basis.

ii. Cost of raw materials, consumables and packing
materials is determined on weighted average
basis. Cost of finished goods and stock-in
-process is determined by considering materials,
labour costs, conversion costs, including an
appropriate share of fixed production overheads
based on normal operating capacity and other
related costs incurred in bringing the inventories
to their present condition and location.

Net realisable value is the estimated selling
price in the ordinary course of business, less
the estimated costs of completion and the
estimated costs necessary to make the sale.
Raw materials and other supplies held for use
in the production of inventories are not written
down below cost except in case where material
prices have declined and it is estimated that the
cost of the finished product will exceed its net
realisable value.

h. Employee benefits

Employee benefits payable wholly within twelve
months of receiving employees services are classified
as short-term employee benefits. The short term
employee benefits are accounted on undiscounted
basis during the accounting period based on services
rendered by employees.

i. Defined contribution plans

A defined contribution plan is a post¬
employment benefit plan under which an entity
pays specified contributions to a separate
entity and has no obligation to pay any further
amounts. The Company contributes to statutory
provident fund in accordance with Employees’
Provident Fund and Miscellaneous Provisions
Act, 1952 that is a defined contribution plan and
contribution paid or payable is recognized as
an expense in the period in which the employee
renders services.

Superannuation benefits, a defined contribution
plan, has been funded with Life Insurance
Corporation of India and the contribution is
charged to Statement of Profit and Loss, when
the contribution to the Fund is due.

ii. Defined benefit plans

The Company provides for Gratuity benefit and
Compensated Absences, which are defined benefit
plans, covering all its eligible employees. Liability
towards gratuity benefits and compensated
absences expected to occur after twelve months,
are determined using the Projected Unit Credit
Method. Actuarial valuations are carried out at the
balance sheet date. Remeasurements of the net
defined benefit liability, which comprise actuarial
gains and losses, the return on plan assets
(excluding interest) and the effect of the asset
ceiling (if any, excluding interest), are recognised in
OCI. The retirement benefit obligation recognized
in the balance sheet represents the present value
of the defined benefit obligation as adjusted for
unrecognized past service cost, and as reduced
by the fair value of scheme assets. The gratuity
benefit and compensated absences scheme is
funded with the Life Insurance Corporation of India
(LIC).

The short term provision for compensated
absences has been calculated on undiscounted
basis, based on the balance of leave available
over and above the maximum accumulation
allowed as per the Company policy.

i. Income taxes

Income tax expense comprises current tax (i.e. amount
of tax for the period determined in accordance with
the income tax law), deferred tax charge or credit
(reflecting the tax effects of timing differences between
accounting income and taxable income for the period)
and Minimum Alternate Tax (MAT) credit entitlement.

Current tax

Current income tax relating to items recognised
outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity).
Current tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity.
Management periodically evaluates positions taken
in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation
and establishes provisions where appropriate.

Deferred tax

Deferred tax is recognised in respect of temporary
difference between the carrying amounts of assets
and liabilities for financial reporting purposes and the
amounts used for taxation purposes.

Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based
on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.

Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax
assets are recognised to the extent that it is probable
that taxable profit will be available against which
the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses
can be utilised.

The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit
will be available to allow all or part of the deferred
tax asset to be utilised. Unrecognised deferred tax
assets are re-assessed at each reporting date and are
recognised to the extent that it has become probable
that future taxable profits will allow the deferred tax
asset to be recovered.

Deferred tax relating to items recognised outside
profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity).
Deferred tax items are recognised in correlation to the
underlying transaction either in Other Comprehensive
Income (OCI) or directly in equity.

Deferred tax assets and liabilities are offset only if:

a) The entity has a legally enforceable right to
set off current tax assets against current tax
liabilities; and

b) The deferred tax assets and the deferred tax
liabilities relate to income taxes levied by the same
taxation authority on the same taxable entity.

Deferred tax relating to items recognised outside profit
or loss is recognised outside profit or loss (either in
other comprehensive income or in equity). Deferred tax
items are recognised in correlation to the underlying
transaction either in OCI or directly in equity

j. Borrowing costs

Borrowing costs are interest and other costs that the
Company incurs in connection with the borrowing of

funds and is measured with reference to the Effective
Interest Rate (EIR) applicable to the respective
borrowing. Borrowing cost include interest costs
measured at EIR and exchange differences arising
from foreign currency borrowings to the extent they
are regarded as an adjustment to the interest cost.

Borrowing costs incurred on constructing or acquiring
a qualifying asset are capitalized as cost of that asset
until it is ready for its intended use. A qualifying asset
is an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale. All
other borrowing costs are charged to revenue and
recognized as an expense in the Statement of Profit
and Loss.

k. Research and development costs

Research and development costs incurred for
development of products are expensed as incurred,
except for development costs that relate to the design
and testing of new or improved materials, products
or processes, which are recognized as an intangible
asset to the extent that it is technically feasible to
complete the development of such asset and future
economic benefits are expected to be generated
from such assets. Capital expenditure on research
and development is included as part of assets and
depreciated on the same basis as other assets.