28.16. Contingencies and Provisions
A provision is recognized when the Company has a present obligation as a result of past events. It is probable that an
outflow of resources embodying economic benefit will be required to settle the obligation in respect of which a reliable
estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate
of the expenditure 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 estimate.
A contingent liability is disclosed, unless the possibility of an outflow of resources embodying the economic benefit
is remote.
28.17 Internal Control Policy and BCP Management: The Company has a comprehensive system of Internal Controls
to safeguard its assets against loss from unauthorized use and to ensure reliability of financial reporting. The
management assesses the operating effectiveness of these controls on regular basis. All the required security checks
i.e., physical security of the company premises and its database are properly installed, daily backup is being done for
all the accounting and related data. The internal auditor in his quarterly report, also confirms about the effectiveness
of the internal control measures. The company maintains a system of internal controls designed for effectiveness and
efficiency of operations, compliance and regulations. The company has a cloud-based ERP system (maintained by
TATA Consultancy Services) in which the data remains safe on cloud and can be accessed and updated on real time
basis from anywhere with defined access user rights.
The system of internal controls monitors and ensures process for:
• Effectiveness and efficiency of operations;
• Reliability of financial reporting;
• Compliance with applicable laws and regulations.
28.18. Contingent Liabilities & Commitments:
a) Estimated amount of contracts remaining to be executed and not provided for in the books of account- Nil
(previous year- Nil).
b) Contingent Liabilities: Rs. 2,14,08,262.00
. Claims against the Company not acknowledged as debt -Nil (previous year - Nil).
. Liabilities in respect of Income Tax, Service Tax, Sales Tax and other material statutory dues have been
accounted for on the basis of respective returns filed with the relevant authorities. Additional demand, if any,
arising at the time of assessments will be accounted for in the year in which assessments are completed.
28.19. Issued, Subscribed & Paid-up Capital:
A.) Issued, Subscribed and Paid-up capital of the company is Rs. 10,13,68,900.00 (Divided into 1,01,36,890.00 shares
of Rs. 10 each). During the financial year 2025-26, the Company has allotted 42,337 fully paid-up equity shares of
face value of Rs. 10/- each, at a price of Rs. 1,653.40 per share (including a premium of Rs. 1,643.40 per share), to
Generation Capital, on preferential basis, in a single tranche, in accordance with the terms of issue of the CCDs.
Consequent to the conversion, Rs. 4,23,370/- has been credited to Share Capital and Rs. 6,95,76,625.80/- has been
credited to Securities Premium.
Of the Compulsorily Convertible Debentures outstanding as at 31.03.2025 (Rs. 117,00,30,163.40/-), CCDs
aggregating Rs. 6,99,99,995.80/- were converted into equity shares during the year as stated above. The balance CCDs
of Rs. 110,00,30,167.60/-, together with interest accrued thereon, remain outstanding as at 31.03.2026.
28.20. Reserves & Surplus:
-The amount shown in the Reserve & Surplus represents only surplus carried forward from the earlier year plus the
surplus earned during the year. Total amount of surplus outstanding as on 31.03.2026 is Rs. 1,39,42,10,867.06
which includes share premium of Rs. 30,42,85,782.78 and Free Reserves of Rs. 1,08,99,25,084.28.
28.21 Long-term Borrowings Secured:
28.25. Non-Current Investments:
Investment in Joint ventures and Associates are accounted for using the equity method of accounting. Under the equity
method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize Dividends
received or receivable from associates or joint ventures are recognized as a reduction in the carrying amount of the
investment.
Equity shares have been stated at cost; provision for appreciation/diminution in the value of shares has not been made
and no dividend was received during the year.
The provisions of Section 186 of the Companies Act 2013 have been complied with.
The company has the following investments as on 31.03.2026 in entities as mentioned below:
(a) Beta Drugs Ltd. has an investment in Adley Formulations Private Limited (CIN: U24303HR2018PTC076347)
amounting Rs.1,26,00,000.00
(b ) Beta Drugs Ltd. has an investment in Adley Lab Limited (CIN: U24231PB1992PLC051220) amounting Rs.
4,50,40,000.00.
(c) Beta Drugs Ltd. has an investment in Beta Research Pvt. Ltd. (CIN: U24303HR2022PTC104598) amounting Rs.
1,00,000.00.
28.26. Taxes
-The exact liability of CST/VAT, Service Tax, GST, Income Tax and other statutory dues is indeterminate, till
finalization of assessments no undisputed dues or amounts were outstanding or remaining unpaid as at 31st March,
2026.
-Disputed Income tax demand amounting to Rs. 12,120/- for A.Y. 2020-21 and Rs. 92,10,890/- for A.Y. 2021-22 is
outstanding and appeal filed against the same is under process as on 31.03.2026. The said demand was raised by the
department on account of non-compliance of notice u/s 133(6) issued to the third parties, however, the said third
parties had duly filed the response to the said notices received by them. The company has filed an appeal providing
acknowledgements of the replies filed by those third parties.
-The current tax expense shown in the Profit & Loss A/c for the period FY 2025-26 is Rs. 4,25,53,928.56.
28.27. Segment Reporting
Since the Company primarily operates in one segment (i.e., Manufacturing of Oncology medicines), therefore
segment reporting as required under Ind AS - 108 is not applicable. Regarding the geographical segments, the
company has an export turnover of Rs. 67,74,91,638 .30 (Including Direct and Indirect Exports) and the domestic
turnover of Rs. 1,57,68,03,367.33.
28.30. Particulars relating to corporate social responsibility
The Company has provided for the corporate social responsibility as per Section 135 of the Companies Act 2013 i.e.,
Rs.50,35,532.00 during the year. The actual amount spent during the financial year was Rs. 50,36,332.00 and there
is no outstanding provision as on 31st March 2026.
28.31. Impairment of Assets
During the year, the Company has undertaken a review of all the fixed assets in line with the requirements of Ind AS-
36 on “Impairment of Assets” as notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the
Companies (Accounts) Rules, 2014, based on such review, no provision for impairment is required to be recognized
for the year.
28.32. Property, Plant and Equipment and Intangible assets:
- During the financial Year 2025-26 there was an addition of Rs. 16,08,94,540.00 under the head Land.
- During the financial Year 2025-26 there was an addition of Rs. 62,27,816.65 under the head Building.
- During the financial year, there was net additions of Rs 12,45,30,472.16 to Plant & Machinery, Furniture
&Fixtures, Office Equipment, Vehicles & Computers including the assets transferred from WIP.
- During the financial Year 2025-26 there was an addition of Rs. 2,65,28,193.47 under the head Intangible Assets.
28.34. Micro, Small & Medium Enterprises
Based on the information presently available, total outstanding as on 31.03.2026 is Rs. 88,76,749.00 to micro
or small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006.
28.39. Other statutory information
i. No proceedings have been initiated during the year or are pending against the Company as at March 31,
2026 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as
amended in 2016) and rules made thereunder.
ii. The Company does not have any trading in Crypto Currency or Virtual Currency.
iii. The Company does not have any transactions or balances with a Companies struck off under section 248
of the Companies Act, 2013 or Section 560 of the Companies Act 1956.
iv. The Company does not have any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessment under the Income T ax Act,
1961.
v. Company has not advanced or loaned or invested funds to any other person(s) or entity(is), 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.
vi. The Company has not received any fund from any person(s) or entity(is), 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.
vii. No charge is pending to be registered beyond statutory period with ROC.
viii. The company has not used the borrowings from banks and financial institutions for any other purpose
other than for the specific purpose for which it was taken.
ix. The Company have defined agreement with the Debtors regarding the credit payment period given and
ageing is done accordingly in Financial Statement.
x. As there is no specific agreements with the creditors, hence the creditors ageing is done as per the date of
invoice received.
28.40. Total count of debtors in M/s Beta Drugs Limited is 180, and creditors count is 531, Balance confirmation were
sent to all and confirmation reply came from more than 50% of the total count.
28.41. Figures for previous year have been regrouped/rearranged where necessary to confirm to the current year’s
presentation.
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