o) Provisions, Contingent liabilities and Contingent Assets (AS - 29)
A provision is recognised when the Company has a present obligation as a
result of past event and it is probable that an outflow of resources will be
required to settle the obligation, in respect of which reliable estimate can be
made. Provisions (excluding retirement benefits and compensated absences)
are not discounted to its present value and are determined based on best
estimate required to settle the obligation at the balance sheet date. These are
reviewed at each balance sheet date and adjusted to reflect the current best
estimates. Contingent liabilities are not recognised in the financial statements.
A contingent asset is neither recognised nor disclosed in the financial
statements.
p) Current Assets, Loans, and Advances & Liabili
In the Opinion of the Board, the value on realization of the current assets, loans
and advances, if realized in the ordinary course of business, shall not be less
than the amount, which is stated, in the current year Balance sheet. The
provision for all known liabilities is reasonable and not in excess of the amount
considered reasonably necessary.
q) Other Notes
1. As per the Ministry of Corporate Affairs (MCA) notification, proviso to Rule
3(1) of the Companies (Accounts) Rules, 2014, form the financial year
commencing April 1, 2023, every company which uses accounting software
for maintaining its books of account, shall use only such accounting
software which has a feature of recording audit trail of each and every
transaction,
creating an edit log of each change made in the books of account along with the
date when such changes were made and ensuring that the audit trail cannot be
disabled. The interpretation and guidance on what level edit log and audit trail
needs to be maintained evolved during the year and continues to evolve.
In the company, the accounting software has a feature of audit trail, and it
is enable at an application level for maintenance of books of accounts and
relevant transactions. However, the global standard ERP used by the
Company has not been enabled with the feature of audit trail log at the
database layer to log direct transactional changes, due to present design
of ERP. This is being taken up with the vendor. In the meanwhile, the
Company continues to ensure that direct write access to the database is
granted only via an approved change management process.
2. Compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015
The Company has adopted a Code of Conduct and established internal
controls in accordance with the SEBI (Prohibition of Insider Trading)
Regulations, 2015, as amended from time to time, to regulate, monitor and
report trading activities of Designated Persons and their Immediate
Relatives.
The Company has implemented adequate procedures for identification
handling, communication and protection of Unpublished Price Sensitive
Information (UPSI). Access to UPSI is restricted on a need-to-know basis to
ensure its confidentiality and integrity.
The Company also maintains a Structured Digital Database and other
necessary records as prescribed under the applicable regulations and has
put in place appropriate mechanisms to prevent insider trading and
unauthorized disclosure of UPSI. The Company has complied with the
applicable provisions of the SEBI (Prohibition of Insider Trading) Regulations,
2015 during the year.
3. Additional Notes
1. Balance of cash on hand at the end is accepted as certified by the management
of the company.
2. Balance of Trade Receivable, Trade Payable, Loans & advances are subject to
confirmation of the parties taken from the Management of Company.
3. As certified by the company that it was received written representation from
all the directors, that companies in which they are directors had not
defaulted in terms of section 164(2) of the companies Act, 2013, and the
representation from directors taken in Board that Director is disqualified from
being appointed as Director of the company.
4. Certain ledger account balances have been regrouped and reclassified for
presentation purposes. Such regrouping and reclassification do not affect the
overall financial performance, financial position, or results of operations of the
Company.
1) Term loan from Indian bank is secured against exclusive hypothecation of plant & machinery
purchased out of bank's finance along with all other fixed assets of the company. It carries ROI @ 9.55%
and payable in 24 monthly installments.
2) These loans are further secured by Equitable Mortgage of land and building situated at 28-29, Xcelon
Industrial Park-1, Behind Intas Pharmaceuticals, At. Vasna-Chachrawadi, TA Sanand admeasuring 1565
Sq. Mts.
3) Further secured by personal guarantees of Mr. Mayur Popatlal Sojitra, Mr. Vivek Ashokkumar Patel, Mr.
Harshad Nanubhai Rathod, Mr. Hardik Mukundbhai Prajapti.
4) Cash Credit from Indian Bank - The present and future stocks hypothecated with the bank for the
sanction limit of E 10.73 Crores in Cash credit account for the tenure of one year with the annual
renewal option.
General Description of the Plan
The Entity operates gratuity plan through a trust wherein every employee is entitled to the benefit
equivalent to fifteen days salary last drawn for each completed year of service. The same is payable
on termination of service or retirement, whichever is earlier. The benefit vests after five years of
continuous service. In case of some employees, the Entity’s scheme is more favourable as compared
to the obligation under Payment of Gratuity Act, 1972.
a) DEFINED CONTRIBUTION PLAN:
Provident Fund: The Company makes provident fund countributions to a defined contribution
retirement benefit plan for qualifying employees. The provident fund plan is operated by the
Regional Provident Fund Commissioner. The plan envisages contribution by the employer and
employees and guarantees interest at the rate notified by the Provident Fund Authority. The
contribution by employer and employee, together with interest, are payable at the time of
separation from service or retirement, whichever is earlier.
b) DEFINED BENEFIT PLAN :
Gratuity: The Company makes annual contribution to the Gratuity fund administered through
a master policy with the Life Insurance Corporation of India for the qualifying employees but it
does not contribute fund towards the liability of the Directors. Gratuity is payable to all eligible
employees on superannuation, death or on separation / termination at the rate of 15 days
salary for each year of service subject to a maximum of ? 20 lac.
The company operates a defined benefit gratuity plan for it's employees and is governed by the
Payment of Gratuity Act, 1972.The liability for the Defined Benefit Plan is provided on the basis of
acturial valuation, using the projected unit credit method, as at the balance sheetdate, carried out
by an independent actuary.
c) Basis Used to Determine Expected Rate of Return on Assets:
The expected return on plan assets is determined based on several factors like the composition
of plan assets held, assessed risks of asset management, historical results of the return on plan
assets and the Company's policy for plan asset management.
Independent Director is not considered as Related Parties.
32 Security of Current Assets Against Borrowings
The present and future stocks hypothecated with the bank for the sanction limit of ^ 10.73 Crores in
Cash credit account for the tenure of one year with the annual renewal option.
33 Registration of Charge
Cash Credit from Indian Bank - The present and future stocks hypothecated with the bank for the
sanction limit of ? 10.73 Crores in Cash credit account for the tenure of one year with the annual
renewal option.
Reasons for Variances
Current Ratio : The Current Ratio increased by 101.28% during the year primarily due
to a significant increase in current assets and improvement in the Company's liquidity
position as compared to the previous year.
Debt-Equity Ratio : The Debt-Equity Ratio decreased by 75.79% during the year primarily
due to reduction in borrowings and/or increase in shareholders' equity.
Debt Service Coverage Ratio : The Debt Service Coverage Ratio increased by 42.77% during
the year primarily due to improvement in operating profitability and enhanced debt
servicing capacity of the Company.
Return on Equity : The Return on Equity decreased by 77.67% during the year primarily due to
the increase in shareholders' equity consequent to the IPO, while the corresponding increase
in profitability was not proportionate.
Trade Payables Turnover Ratio : The Trade Payables Turnover Ratio increased by 111.68% during
the year primarily due to higher purchase volume and faster settlement of trade payables as
compared to the previous year.
Net Capital Turnover Ratio : The Net Capital Turnover Ratio decreased by 59.64% during the year
primarily due to a significant increase in working capital as compared to the growth in revenue.
Return on Capital Employed : The Return on Capital Employed decreased by 45.24% during
the year primarily due to a significant increase in capital employed as compared to the
growth in operating profits.
35 Other Statutory Disclosures as per the Companies Act, 2013
1) Title deeds of Immovable Property are held in name of the Company.
2) The Company has not granted any Loans or Advances in the nature of loans to
promoters, Directors, KMPs and the related parties (as defined under Companies Act,
2013,) either severally or jointly with any other person, that are (a) repayable on
demand or (b) without specifying any terms or period of repayment.
3) The Company does not have any Benami property, where any proceeding has been
initiated or pending against the Company for holding any Benami property.
4) The Company has not declared willful defaulter by any bank or financial institution
or other lender
5) Based on the information available with the Company, the Company does not have
any transactions with companies struck off u/s 248 of the Companies Act, 2013.
6) The Company has not traded or invested in Crypto currency or Virtual Currency during
the audited period.
7) 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.
8) 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.
9) The Company has not entered into any such transaction which is not recorded in the
books of account that has been surrendered or disclosed as income during the year
in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961.
36 Subsequent Events
The company had made an initial public offering (IPO) of 29,46,000 equity shares of
face value of ? 10 each fully paid up for cash at a price of ? 101 per equity shares
(including share premium of ? 91 per equity share) aggregating to ? 29,75,46,000/-
The equity shares of the company has been listed on NSE Emerge Platform on 21 May,
2025.
37 Regrouping
The figures of the previous year have been re-arranged, re-grouped and re- classified
wherever necessary.
38 Additional Disclosure : Statement on Utilisation of proceeds from the Initial
Public Offer of the Equity Shares
Pursuant to the issue of Fresh Equity Shares, the Company has received proceeds from
the Initial Public Offer of the Equity Shares from the allottees. The utilisation of such funds
as of 31 March, 2026 is detailed below:
Total proceeds from the Initial Public Offer of the Equity Shares : ? 2975.46 (? In Lacs)
Actual utilisation of fund till 31 March, 2026 : ? 2975.46 (? In lacs)
Balance amount to be utilised : NIL - The balance amount remains invested in short-term
fixed deposits or bank balances, pending deployment for approved purposes.
39 The Company has not entered into any scheme of arrangement therefore approval of
competent authority in terms of sections 230 to 237 of the Companies Act, 2013 is not
required.
40 The Company does not have any charges or satisfaction which is yet to be registered
with Registrar of Companies beyond the statutory period.
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