P Provisions
Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can
be made of the amount of the obligation. Provisions 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.
Q Contingent Liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not
recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability
also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.
The company does not recognize a contingent liability but discloses its existence in the Financial Statements.
R Cash and cash equivalents
Cash and cash equivalents in the Balance Sheet include cash on hand, cheques on hand, deposits held at call with financial
institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents includes cash on hand, deposits
held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less
that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and
overdrawn bank balances.
S Cash Flows
Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of transactions of a
non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities
are segregated.
T Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument
of another entity.
a. Financial Liabilities
Initial recognition and measurement
Financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the
instrument. Financial liability is initially measured at transaction price and where such price is different from fair value, at
fair value.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss:
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition at fair value through profit or loss.
Loans and borrowings:
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the
EIR method. Gains and losses are recognized in Statement of profit and loss when the liabilities are derecognized as well
as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the
Statement of profit and loss.
Derecognition
A financial liability is derecognised when the obligation under the liability 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 de-recognition of the
original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in
the Statement of Profit and Loss.
b. Financial assets
Initial recognition and measurement
At initial recognition, financial asset is measured at its fair value plus or minus, in the case of a financial asset not “at fair
value through profit or loss” are measured at transaction costs that are directly attributable to the acquisition of the
financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in statement
of profit and loss.
Classification and subsequent measurement
Subsequent measurement is determined with reference to the classification of the respective financial assets. Based on
the business model for managing the financial assets and the contractual cash flow characteristics of the financial asset,
the Company classifies financial assets as subsequently measured at amortised cost, fair value through OCI or fair value
through profit and loss.
i) Financial assets amortised at cost
A financial asset is subsequently measured at amortised cost if it is held with in a business model whose objective is
to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely consisting payments of principal and interest on the principal amount
outstanding.
ii) Financial assets at fair value through other comprehensive income
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a
business model whose objective is achieved by both collecting contractual cash flows and selling financial assets
and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
principal and interest on the principal amount outstanding.
iii) Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or
loss. Interest and dividend income from these financial assets is included in “Other income”. Net gains and losses,
including any interest or dividend income are recognized in statement of profit and loss.
Equity investments
All equity investments within the scope of Ind-AS 109 are measured at fair value. Such equity instruments which are held
for trading are classified as FVTPL. For all other such equity instruments, the Company decides to classify the same
either as FVOCI or FVTPL. The Company makes such election on an instrument-by-instrument basis. The classification
is made on initial recognition and is irrevocable.
For equity instruments classified as FVOCI, all fair value changes on the instrument, excluding dividends, are recognized
in OCI. Dividends on such equity instruments are recognised in the Statement of Profit and Loss.
Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the
Statement of Profit and Loss. Dividends on such equity instruments are recognised in the Statement of Profit and Loss.
Derecognition
A financial asset is derecognized when:
- the Company has transferred substantially all the risks and rewards of the asset, or
- the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred
control of the asset.
c. Offsetting of financial instruments
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and
only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the
asset and settle the liability simultaneously.
U Current-non-current classification
All assets and liabilities are classified into current and non-current.
Assets
An asset is classified as current when it satisfies any of the following criteria:
a) it is expected to be realised in, or is intended for sale or consumption in, the company's normal operating cycle;
b) it is held primarily for the purpose of trade;
c) it is expected to be realised on demand or within 12 months after the reporting date; or
d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months
after the reporting date.
Current assets include the current portion of non-current financial assets.
All other assets are classified as non-current.
Liabilities
A liability is classified as current when it satisfies any of the following criteria:
a) it is expected to be settled in the company's normal operating cycle;
b) it is held primarily for the purpose of trade;
c) it is due to be settled in demand or within 12 months after the reporting date; or
d) there is no unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a
liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect
its classification.
Current liabilities include current portion of non-current financial liabilities.
All other liabilities are classified as non-current.
V Operating cycle
Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their
realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of
classification of its assets and liabilities as current and non-current.
W Segment Reporting
The Company determines segments based on the internal organisation and management structure of the Company and its
system of internal financial reporting and the nature of its risks and its returns. The Board of Directors of the Company has been
identified as Chief Operating Decision Maker (CODM). CODM evaluates the Company's performance, allocate resources
based on analysis of various performance indicators of the Company for disclosing in the segment report. The accounting
policies adopted for segment reporting are in line with the accounting policies of the Company.
Segment revenue includes income directly identifiable with the segments.
Expenses that are directly identifiable with the segments are considered for determining the segment result. Expenses which
relate to the Company as a whole and not allocable to segments and expenses which relate to the operating activities of the
segment but are impracticable to allocate to the segment, are included under "Unallocable corporate expenses".
Income which relates to the Company as a whole and not allocable to segments are included in Unallocable Income and
netted off from Unallocable corporate expenses.
Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable corporate assets
and liabilities represent the assets and liabilites that relate to the Company as a whole and not allocable to any segment.
X Other income
i. Interest income is accrued on a time basis by reference to the principal outstanding and the effective interest rate.
ii. Dividend income is accounted for in the period in which the right to receive the same is established.
iii. Exchange gain/loss consists of realized gain/loss and revaluation gain/loss on translation of foreign currency assets and
liabilities.
iv. Other items of income are accounted as and when the right to receive arises and it is probable that the economic benefits
will flow to the Company and the amount of income can be measured reliably.
Y Employee Stock option scheme
In respect of stock options granted pursuant to the Company’s stock options scheme, the excess of fair value of the option over
the exercise price is treated as discount and accounted as employee compensation cost over the vesting period. The amount
recognised as expense each year is arrived at based on the number of grants expected to vest. If a grant lapses after the
vesting period, the cumulative discount recognised as expense in respect of such grant is transferred to general reserve.
Z Borrowing cost
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other
borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an
entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent
regarded as an adjustment to the borrowing costs.
AA Recent Accounting Pronouncements
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. There are no standards of accounting or any addendum
thereto, prescribed by Ministry of Corporate Affairs under section 133 of the Companies Act, 2013, which are issued and not
effective as at March 3l, 2025.
The Board of Directors at its meeting held on May 17, 2025 have recommended a payment of final dividend of ? 4 per equity share of
face value of ? 10 each for the financial year ended March 31,2025 resulting in a dividend payout of ? 604 lakhs.The final dividend
proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
Note
Nature of reserves
a) General Reserve
The General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the
General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive
income, items included in the General reserve will not be reclassified subsequently to the Statement of Profit and Loss.
b) Capital Reserve
The Capital reserve is created on account of forfeiture of share application money.
c) Securities Premium
Securities premium account comprises of premium on issue of shares. The reserve is utilised in accordance with the specific
provision of the Companies Act, 2013.
d) Retained Earnings
Retained earnings represents surplus/accumulated earnings of the Company and are available for distibution to shareholders.
42 Financial Instruments - Accounting Classifications and Fair Value Measurements
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced of liquidation sale.
The following methods and assumptions were used to estimate the fair values:
Fair value of cash and cash equivalent, bank balances other than cash and cash equivalent, trade receivables, trade payables,
other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly
or indirectly.
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable
market data.
During the reporting period ended 31 March 2025 and 31 March 2024, there was no transfer between level 2 and level 3 fair value
measurements.
43 Financial risk management
The Group has exposure to the following risks arising from financial instruments:
- Credit risk;
- Liquidity risk; and
- Market risk
The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management
framework. The board of directors is responsible for developing and monitoring the Company’s risk management policies.
The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed periodically to reflect changes in market conditions and the Company’s activities. The Company, through its training,
standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand
their roles and obligations.
The audit committee 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.
Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the
Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic
trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase
in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk
that company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of
initial recognition. It considers reasonable and supportive forwarding-looking information such as:
i) Actual or expected significant adverse changes in business,
ii) Actual or expected significant changes in the operating results of the counterparty,
iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to meet its
obligations,
iv) Significant increases in credit risk on other financial instruments of the same counterparty,
Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a
repayment plan with the Company. Where receivables have been written off, the Company continues to engage in enforcement
activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in profit or loss.
Trade and other receivables
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. 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. Credit terms are in line with industry trends."
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a
financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency
exchange rates, equity prices and other market changes that affect market risk sensitive instruemtns. Market risk is attributable to
all market risk sensitive financial instruments including investments and deposits, foreign currency receivables and payables.
The Company manages market risk through a treasury department, which evaluates and excercises independent control over the
entire process of market risk management. The treasuy department recommends risk management objectives and policies, which
are approved by Senior Management and the Audit Committee. The activities of this deparment include management of cash
resources, implementing hedging strategies for foreign currency exposures and ensuring compliance with market risk limits and
policies.
49 Investment in Subsidiary company
During the previous year, the Company, vide resolution dated March 27, 2024, passed in the meeting of Board of Directors,
converted outstanding loans (inclusive of interest) amounting to ? 3,614 lakhs of Avery Pharmaceuticals Private Limited
(“subsidiary company”) into 4,64,500 equity shares of face value ? 10 each at a price of ? 778 (including Security premium of ? 768
per equity share).
50 Additional regulatory information required by Schedule III to the Companies Act, 2013
(i) The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending
against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016)
and rules made thereunder.
(ii) The Company has not traded or invested in Crypto currency or Virtual Currency during the year.
(iii) The Company has not come across any transaction ocurred with struck-off companies under section 248 of the Companies Act,
2013 or section 560 of the Companies Act, 1956.
(iv) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any
government authority.
(v) The Company does not have any charges or satisfaction of charges which is yet to be registered with the Registrar of the
Companies beyond the statutory period.
(vi) Utilization of borrowed funds and share premium :
(I) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Company (Ultimate Beneficiaries) or
(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries
(II) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries) or
(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries
(vii) There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961
(such as search or survey), that has not been recorded in the books of account.
viii) The Company has not revalued its Property,Plant and Equipment during the year.
ix) The Company has not revalued its intangible assets during the year.
x) The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021. The said proviso requires
companies, which uses accounting software for maintaining its books of accounts, to 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
accounts along with the dates when such changes were made and ensuring that the audit trail cannot be disabled.Further, for
the accounting softwares used by the Company during the year ended March 31,2025, audit trail (edit log) facility was enabled
and operated throughout the year there were no instances of the audit trail feature being tampered with.Additionally, the audit
trail has been preserved by the Company as per the statutory requirements for record retention except for the audit trail of
previous year, which has been preserved by the Company as per the statutory requirements for record retention to the extent it
was enabled and recorded in previous year.
xi) The Company uses software applications to maintain its books of accounts and other books and papers in electronic mode
(“Electronic records”). During the year, the Company has maintained backups of these electronic records on server physically
located in India on daily basis, as required by Companies (Accounts) Rules, 2014 (as amended).
51 The Company has a process whereby periodically all long term contracts are assessed for material foreseeable losses. At the year-
end, the Company has reviewed all such contracts and confirmed that no provision is required to be created under any law /
accounting standard towards any foreseeable loss.
52 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company
towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for the Code on Social
Security, 2020 on November 13, 2020, and invited suggestions from stakeholders which are under consideration by the Ministry.
The Company will assess the impact and its evaluation once the subject rules are notified. The Company will give appropriate
impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial
impact are published.
53 The Board of Directors have recommended a dividend of ? 4/- per Equity Share of ? 10/- each (40%) for the year ended 31st
March,2025, which is subject to approval of shareholder's in ensuing Annual General Meeting.
54 Figures for previous year have been regrouped/rearranged wherever necessary to confirm to current year's classification.
55 There are no significant subsequent events that would require adjustments or disclosures in the financial statements as on the
balance sheet date.
56 The financial statements are approved for issue by the Audit Committee and the Board of Directors on May 17, 2025.
As Per our report of even date
For Haribhakti & Co. LLP For and on behalf of the Board of Directors of
Chartered Accountants Arrow Greentech Limited
ICAI Firm Registration No. 103523W / W100048 CIN : L21010MH1992PLC069281
Sumant Sakhardande Shilpan Patel Neil Patel
Partner Managing Director Joint Managing Director
Membership No: 034828 DIN No : 00341068 DIN No : 00607101
Place : Mumbai Hitesh Punglia Poonam Bansal
Date : May 17, 2025 Chief Financial Officer Company Secretary
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