Corporate Information
VALIANT LABORATORIES LIMITED ("VLL" or "The
Company" ) is public limited entity incorporated in India. The
registered office of the Company is located at 104 UDYOG
KSHETRA 1ST FLOOR MULUND GOREGAON LINK ROAD
MULUND (W) MUMBAI MH 400080 INDIA. The Company is
engaged in manufacturing and dealing in Pharmaceuticals and
speciality chemicals. The Company & its Indian Subsidiary will
be considered as Group
The financial statements of the Company for the year ended
31.3.2025 were approved for issue in accordance with a resolution
of the Board of Directors in its meeting held on 20th May, 2025
1 Basis of Preparation of Financial Statements
Statement of Compliance
The financial statements have been prepared in accordance
with Generally Accepted Accounting Principles in India
(referred to as "IND AS") as prescribed under section 133
of the Companies Act, 2013 read with Companies (Indian
Accounting Standards) Rules, 2015 as amended and
relevant provisions of the Companies Act, 2013 including
presentation and disclosure requirements of Division II
of Schedule III of the Act as amended from time to time.
In addition, the guidance notes/announcements issued
by the Institute of Chartered Accountants of India (ICAI)
are also applied except if compliance with other statutory
promulgations require a different treatment.
Accordingly, the Company has prepared these Financial
Statements which comprise the Balance Sheet as at March
31, 2025, the Statement of Profit and Loss for the year ended
March 31, 2025, the Statement of Cash Flows for the year
ended March 31, 2025 and the Statement of Changes in
Equity for the year ended as on that date, and accounting
policies and other explanatory information (together
hereinafter referred to as 'Standalone Financial Statements')
Classification of Assets and Liabilities
All assets and liabilities have been classified as current or
non-current as per company's normal operating cycle and
other criteria set out in the Division II of Schedule III to the
Companies Act, 2013 Based on the nature of products and
the time between acquisition of assets for processing and
their realisation in cash and cash equivalents, the company
has ascertained its operating cycle as 12 months for the
purpose of current and non-current classification of assets
and liabilities.
Basis of Measurement
These Financial statement are prepared under the historical
cost convention on an accrual basis except for certain
financial instrument, which are measured at fair value,
which are disclosed in the financial statement.
Functional and Presentation currency
The financial statements are presented in Indian rupees
('INR ') which is the functional currency of the company
and all values are rounded to the nearest rupees in lakhs
except otherwise indicated
Use of accounting estimates and judgements
The preparation of financial statements requires
management judgements, estimates and assumptions
that impacts the reported amounts of revenues, expenses,
assets and liabilities, and the accompanying notes thereon.
Uncertainty about these assumptions and estimates
could result in outcomes that might require a material
adjustment to the carrying amount of assets and liabilities
in future periods.
Estimates
The preparation of the financial statements in conformity
with IND AS requires management to make estimates,
judgments and assumptions. These estimates, judgments
and assumptions affect the application of accounting
policies and the reported amounts of assets and liabilities,
the disclosures of contingent assets and liabilities at the date
of financial statements and reported amounts of revenues
and expenses during the period. Accounting estimates could
change from period to period. Actual results could differ
from those estimates. Appropriate changes in estimates
are made as management becomes aware of circumstances
surrounding the estimates. Changes in estimates are
reflected in the financial statement in the period in which
changes are made and if material, their effects are disclosed
in the notes to the financial statements.
The following are areas involving critical estimates:
Impairment
Accounting for Defined benefit plans
Useful lives of property, plant and equipment and intangible
assets - Fair Valuation of Financial instruments
Valuation of Inventories
Judgments
The company's management has made the following
judgement, which have the most significant effect on the
amounts recognised in the separate financial statements,
while formulating the company's accounting policies.
The following are areas involving critical judgments:
Leases
Estimation of income tax payable and income tax expense
in relation to an uncertain tax position
Provisions and Contingencies
2 Property, plant and equipment (PPE) and Intangible assets
Property, plant and equipment (PPE)
Property, plant and equipment are stated at cost net of tax
/duty credit availed, less accumulated depreciation and
accumulated impairment losses, if any. Cost comprises
of purchase price inclusive of non creditable taxes,
commissioning expenses, etc. up to the date the asset
is ready for its intended use. When significant parts of
property, plant and equipment are required to be replaced
at intervals, the company derecognizes the replace part and
recognizes the new part with its own associated useful life
and it is depreciated accordingly. Likewise, when a major
inspection is performed, its cost is recognized in the carrying
amount of the plant and equipment as a replacement if
the recognition criteria are satisfied. All other repair and
maintenance cost are recognised in the statement of profit
and loss as incurred.
Long term lease arrangements of land are treated as
property, plant and equipment, in case such arrangements
result in transfer of control and the present value of the
lease payments is likely to represent substantially all of the
fair value of the land.
Capital Work In Progress represents expenditure incurred
on capital assets that are under construction or are pending
capitalisation and includes Project expenses pending
allocation. Project expenses pending allocation are
apportioned to the property, Plant and equipment of the
project proportionately on capitalisation.
Borrowing cost on property, plant and equipment's are
capitalised when the relevant recognition criteria specified
in IND AS 23 Borrowing cost is met.
Decommissioning costs, if any, on property, plant and
equipment are estimated at their present value and
capitalised as part of such assets.
An item of property, plant and equipment and any
significant part initially recognised is derecognised upon
disposal or when no future economic benefits are expected
with the carrying amount of any component accounted for
as a separate asset is derecognised when replaced. All other
repair and maintenance are charge to profit or loss during
the reporting period in which they are incurred.
The residual value and useful lives of property, plant and
equipment are reviewed at each financial year end and
adjusted prospectively, if appropriate.
The Property, plant and equipment existing on the
date of transition are accounted on deemed cost basis by
applying para D7AA in accordance with the exemption
provided in IND AS 101 "First-time Adoption of Indian
Accounting Standards" at previous GAAP carrying value
( Deemed Cost ).
Intangible assets
Intangible assets are recognised when it is probable that the
future economic benefits that are attributable to the asset
will flow to the Company and the cost of the asset can be
measured reliably. Intangible assets are stated at original
cost net of tax/duty credits availed, if any, less accumulated
amortisation and cumulative impairment. Administrative
and other general overhead expenses that are specifically
attributable to acquisition of intangible assets are allocated
and capitalised as a part of the cost of the intangible
assets. Intangible development costs are capitalised as and
when technical and commercial feasibility of the asset is
demonstrated and future economic benefits are probable.
The useful lives of intangible assets are assessed as either
finite or indefinite. Intangible assets with finite lives are
amortised over the useful economic life and assessed
for impairment whenever there is an indication that the
intangible asset may be impaired. The amortisation period
and the amortisation method for an intangible asset with
a finite useful life are reviewed at least at the end of each
reporting period.
Gains or losses arising from de-recognition of an intangible
asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and
are recognised in the Statement of Profit and Loss when the
asset is derecognised.
Research and Development
Revenue expenditure on Research and Development is
charged to statement of profit and loss in the year in
which it is incurred. Capital expenditure on research and
development is considered as an addition to property, plant
and equipment/intangible assets.
Research costs are expensed as incurred. Development
expenditures on an individual project are recognised as an
intangible asset when the Company can demonstrate:-
development costs can be measured reliably;-
the product or process is technically and
commercially feasible;
commercially feasible;
future economic benefits are probable; and
the Company intends to and has sufficient resources to
complete development and to use or sell the asset.
Following initial recognition of the development
expenditure as an asset, the asset is carried at cost less any
accumulated amortisation and accumulated impairment
losses. Amortisation of the asset begins when development
is complete and the asset is available for use. It is amortised
over the period of expected future benefit. Amortisation
expense is recognised in the statement of profit and loss
unless such expenditure forms part of carrying value of
another asset. During the period of development, the asset
is tested for impairment annually
Depreciation methods, estimated useful lives and
residual value
Depreciation on Fixed Assets is provided on Straight Line
Method (SLM) method as per rates prescribed in Schedule
II of the Companies Act, 2013, except in the respect of the
following assets, where useful life of asset is different than
those prescribed in Schedule II of the Act.
Impairement
The Company assesses at each reporting the carrying
amounts of its property, plant and equipment, intangible
assets to determine whether there is any indication that
those assets have suffered an impairment loss. If any
indication exists, or when annual impairment testing for
an asset is required, the Company estimates the asset's
recoverable amount. Impairment loss, if any, is provided to
the extent that the carrying amount of assets exceeds their
recoverable amount. Recoverable amount is higher of net
selling price of an asset or its value in use. Value in use is
the present value of estimated future cash flows expected
to arise from the continuing use of an asset and from its
disposal at the end of its useful life.
Non-current assets held for sale
Assets held for sale are measured at the lower of carrying
amount or fair value less costs to sell. The determination
of fair value less costs to sell includes use of management
estimates and assumptions. The fair value of the assets
held for sale has been estimated using valuation techniques
(including income and market approach), which include
unobservable inputs. Non-current assets and disposal
group that ceases to be classified as "Held for Sale" shall
be measured at the lower of carrying amount before the
non-current asset and disposal group was classified as
"Held for Sale" and its recoverable amount at the date of
the subsequent decision not to sell. Recoverable amounts of
assets reclassified from "Held for Sale" have been estimated
using the Management's assumptions.
3 Retirement and other employee benefits
The Company recognizes employee benefits as per the
principles laid down in Indian Accounting Standard (Ind
AS) 19 - Employee Benefits, as set out below:
Short-term Employee Benefits
Short-term employee benefits are those which are due to be
settled wholly within twelve months after the end of the
period in which the employees render the related services.
These include salaries, wages, bonuses, performance
incentives, compensated absences (if expected to be availed
within 12 months), and other non-monetary benefits. The
undiscounted amount of short-term employee benefits is
recognized as an expense in the Statement of Profit and
Loss in the period in which the related service is rendered.
Defined Contribution Plans
The Company's contributions to Provident Fund and other
defined contribution plans are recognized as an expense in
the Statement of Profit and Loss in the period in which the
employees render services. The Company has no further
obligation beyond its monthly contribution.
Defined Benefit Plans
The Company provides for gratuity, a defined benefit plan,
in accordance with the Payment of Gratuity Act, 1972.
The liability is determined using the Projected Unit Credit
Method, with actuarial valuations being carried out at the
end of each reporting period. The defined benefit liability
recognized in the balance sheet represents the present value
of the defined benefit obligation as reduced by the fair value
of plan assets (if any).
Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions
are recognized immediately in Other Comprehensive
Income (OCI) and are not reclassified to profit or loss in
subsequent periods.
Past service cost is recognized immediately in the Statement
of Profit and Loss.
The net interest cost is calculated by applying the discount
rate to the net defined benefit liability or asset.
Other Long-term Employee Benefits
The liability for other long-term employee benefits such
as long-term compensated absences and long-service
awards is also determined using the Projected Unit Credit
Method, with actuarial valuations being carried out at each
reporting date. Actuarial gains and losses are recognized
in the Statement of Profit and Loss in the period in which
they arise. The obligation is presented as a liability in the
balance sheet to the extent it is not expected to be settled
within twelve months.
Termination Benefits
Termination benefits are recognized as a liability and
expense when the Company has a present obligation as a
result of a past event and it is probable that an outflow of
resources will be required to settle the obligation, and the
amount can be reliably estimated. Termination benefits that
are expected to be settled wholly within twelve months are
recognized at the undiscounted amount. Otherwise, they
are measured on a discounted basis.
Borrowing costs
"Borrowing costs include interest, other costs incurred in
connection with borrowing and exchange differences arising
from foreign currency borrowings to the extent that they
are regarded as an adjustment to the interest cost. General
and specific borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of
time to get ready for their intended use or sale, are added
to the cost of those assets, until such time as the assets are
substantially ready for their intended use or sale. All other
borrowing costs are recognised in the Statement of profit
and loss in the period in which they are incurred"
In determining the amount of borrowing costs eligible for
capitalization during a period, any income earned on the
temporary investment of those borrowings is deducted
from the borrowing costs incurred.
5 Inventories
Items of inventories are valued lower of cost or estimated
net realisable value as given below.
Raw Materials and Packing Materials:
Raw Materials and packing materials are valued at Lower
of Cost or market value, (Cost is net of taxes, duty and cess
wherever applicable). However materials and other items
held for use in the production of inventories are not written
down below cost if the finished products in which they will
be incorporated are expected to be sold at or above cost.
Costs are determined on FIFO method
Work in process:
Work in process are valued at the lower of cost and
net realizable value. The cost is computed on weighted
average method.
Finished Goods and Semi finished goods :-
Finished Goods and Semi finished goods are valued at
lower of cost and net realised value. The cost is computed
on weighted average method and includes cost of materials,
cost of conversion and other cost incurred in acquiring the
inventory and bringing them to their present location and
condition. Taxes is considered as cost for finished goods,
whenever applicable.
Stores and Spares:
Stores and spare parts are valued at lower of purchase
Costs are determined on Weighted Average method and
net realisable value.
Traded Goods:
Traded Goods are valued at lower of purchase cost and net
realisable value.
6 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and
demand deposit with banks, which are short term, highly
liquid investment, that are readily convertible into known
amounts of cash and which are subject to insignificant risk
of change in value.
7 Financial assets, financial liabilities, equity
instruments and impairment of financial assets
Financial assets and liabilities are recognised when the
Company becomes a party to the contractual provisions of
the instrument. Financial assets and liabilities are initially
measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets
and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are
added to or deducted from the fair value measured on
initial recognition of financial asset or financial liability.
The Company derecognises a financial asset only when the
contractual rights to the cash flows from the asset expire,
or when it transfers the financial asset and substantially all
the risks and rewards of ownership of the asset to another
entity. The Company derecognises financial liabilities when,
and only when, the Company's obligations are discharged,
cancelled or have expired.
Financial assets at amortised cost
Financial assets are subsequently measured at amortised
cost if these financial assets are held within a business
whose objective is to hold these assets in order to collect
contractual cash flows and the contractual terms of the
financial assets 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
Financial assets are measured at fair value through other
comprehensive income if these financial assets are held
within a business whose objective is achieved by both
collecting contractual cash flows on specified dates that
are solely payments of principal and interest on the
principal amount outstanding and selling financial assets.
The Company has made an irrevocable election to present
subsequent changes in the fair value of equity investments
not held for trading in other comprehensive income
Financial assets at fair value through profit or loss
Financial assets are measured at fair value through profit
or loss unless they are measured at amortised cost or at
fair value through other comprehensive income on initial
recognition. The transaction costs directly attributable
to the acquisition of financial assets and liabilities at fair
value through profit or loss are immediately recognised in
statement of profit and loss.
Equity Investments
All equity investments (excluding the investments in
Subsidiaries) in the scope of Ind AS 109 are measured at fair
value. Equity instruments which are held for trading are
classified as at FVTPL. For all other equity instruments, the
Company may make an irrevocable election to present in
other comprehensive income subsequent changes in the fair
value. The Company makes such election on an instrument-
by-instrument basis. The classification is made on initial
recognition and is irrevocable. If the Company decides to
classify an equity instrument as at FVTOCI, then all fair
value changes on the instrument, excluding dividends, are
recognised in the OCI. There is no recycling of the amounts
from OCI to the statement of profit and loss, even on sale
of investment. However, the Company may transfer the
cumulative gain or loss within equity. Equity instruments
included within the FVTPL category are measured at fair value
with all changes recognised in the statement of profit and loss.
Investment in subsidiaries
Investment in subsidiaries are measured at cost less
impairment loss, if any.
Financial liabilities
Financial liabilities are measured at amortised cost using
the effective interest method. Other financial liabilities
(including loans and borrowings, bank overdrafts and
trade and other payables) are subsequently measured at
amortised cost using the effective interest method.
The effective interest rate is the rate that exactly discounts
estimated future cash payments (including all fees and
amounts paid or received that form an integral part of the
effective interest rate, transaction costs and other premiums
or discounts) through the expected life of the financial
liability, or (where appropriate) a shorter period, to the
amortised cost on initial recognition.
Interest expense (based on the effective interest method),
foreign exchange gains and losses, and any gain or
loss on derecognition is recognised in the Statement of
Profit and Loss.
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
De-recognition of Financial Instruments:
The Company derecognises 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 de-recognition under Ind AS 109. In cases where
Company has neither transferred nor retained substantially
all of the risks and rewards of the financial asset, but retains
control of the financial asset, the Company continues to
recognise such financial asset to the extent of its continuing
involvement in the financial asset. In that case, the Company
also recognises an associated liability. The financial asset and
the associated liability are measured on a basis that reflects
the rights and obligations that the Company has retained.
A Financial liability (or a part of a financial liability) is
derecognised from the Company's Balance Sheet when
the obligation specified in the contract is discharged or
cancelled or expires. When an existing financial liability is
replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification
is treated as the derecognition of the original liability and
the recognition of a new liability. The difference between
the carrying amount of the financial liability de-recognised
and the consideration paid and payable is recognised in the
Statement of Profit and Loss
Equity instruments
An equity instrument is a contract that evidences residual
interest in the assets of the Company after deducting all of
its liabilities. Equity instruments issued by the Company are
recognised at the proceeds received net of direct issue cost.
Impairment of Financial Assets:
In accordance with Ind AS 109, the Company uses 'Expected
Credit Loss' (ECL) model, for evaluating impairment of all
Financial Assets subsequent to initial recognition other than
financial assets measured at fair value through profit and
loss (FVTPL). 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 financial assets, the
Company uses 12 month ECL to provide for impairment
loss where there is no significant increase in credit risk
since its initial recognition. If there is significant increase
in credit risk since its initial recognition full lifetime ECL is
used. The impairment losses and reversals are recognised in
Statement of Profit and Loss. ECL is the difference between
all contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that the
entity expects to receive (i.e., all cash shortfalls), discounted
at the original EIR.
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