2.13 Provisions, Contingent Liabilities and Contingent Assets :
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of
past events, it is probable that an outflow of resources will be required to settle the obligation and in respect
of which a reliable estimate can be made of the amount of 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.
A disclosure by way of a contingent liability is made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources. Contingent assets are not recognised or
disclosed in the financial statements.
2.14 Earnings per share :
Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity
shareholders, by the weighted average number of equity shares outstanding during the period.
Diluted earnings per share is computed by dividing the net profit or loss for the year attributable to the equity
shareholders, by the weighted average number of equity and equivalent diluted equity shares outstanding
during the year except where the results would be antidilutive.
2.15 Cash and cash equivalents :
Cash and cash equivalents include cheques in hand, cash at bank and deposits with banks having original
maturity of not more than three months.
2.16 Fair value measurement :
The Company's accounting policies and disclosures require the measurement of fair values for, both financial
and non-financial assets and liabilities. 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. The
Company has an established control framework with respect to the measurement of fair values. The
Company's management regularly reviews significant unobservable inputs and valuation adjustments. If
third party information 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).
If 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. In determining the fair value of its financial instruments, the
Company uses a variety of methods and assumptions that are based on market conditions and risks existing
at each reporting date. The methods used to determine fair value includes discounted cash flow analysis,
available quoted market prices and dealer quotes. All methods of assessing fair value result from general
approximation of value and the same may differ from the actual realised value. Further information about
the assumptions made in measuring fair value is included in the note 2.11 on financial instruments.
39 Derivative instruments :
The Company's exposure to foreign currency fluctuations relates to foreign currency irrevocable 90 days letter of
credit. The Company limits the effects of foreign exchange rate fluctuations by following established risk
management policies. The currencies in which these transactions are mainly denominated is Japan Yen.
40 Financial risk management :
The Company has exposure to the following risks arising from financial instruments :
Ý Market Risk [refer A) below]
Ý Liquidity Risk [refer B) below]
Ý Credit Risk [refer C) below]
In the course of its business the Company is exposed primarily to aforesaid risks which may impact the fair value of
its financial instruments. The Company has a risk management system which not only covers the foreign exchange
risks but also other risks associated with the financial assets and liabilities such as credit risks. The risk management
strategy is approved by Board of Directors which is implemented by the Company's management. The risk
management framework aims to create a stable business planning environment by reducing the impact of market
related risks credit risks and currency fluctuations on the Company's earnings. The risks identified through the risk
management system are analysed and evaluated by the Company's management and reported to the Board of
Directors periodically along with report of planned mitigation measures.
A) Market Risk :
Market risk is the risk of any loss in future earnings in realisable fair values or in 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 foreign currency exchange rates liquidity and other market changes. Future specific
market movements cannot be normally predicted with reasonable accuracy.
i) Foreign currency risk :
The Company is exposed to foreign exchange risk arising from foreign currency transactions primarily
with respect to the Japanese Yen (JPY) and US dollars (US$). Foreign exchange risk arises from future
commercial transactions and recognised assets and liabilities denominated in a currency that is not the
Company's functional currency (Indian Rupees). The Company is exposed to foreign exchange risk on
their receivables, payables which are held in JPY and US$. The fluctuation in the exchange rate of INR
relative to JPY and US$ may not have a material impact on the company's assets and liabilities.
Foreign Currency Sensitivity :
The following table demonstrates sensitivity to a reasonable possible change in major foreign currency
(JPY and US$) with all other variables held constant. The sensitivity analysis is prepared on the net
unhedged exposure of the Company as at the reporting date. 5% represents management's assessment
of reasonably possible change in foreign exchange rate.
ii) Interest rate risk :
The Company has granted loans to related parties and third parties. The Company recovers interest as
per the terms of the agreement which approximates the prevailing market rate of interest from time to
time. Accordingly, interest rate risk for loans given is not considered to be substantial. The Company does
not have any borrowings. Surplus funds are being invested in bank deposits at fixed interest rates and
the tenure is managed to match with the Company's liquidity profile.
B) Liquidity Risk :
The Company's principal sources of liquidity are cash and cash equivalents and cash flows generated from
operations. The Company regularly monitors actual cash flows and forecasts to ensure that the Company
maintains sufficient liquidity to meet the operation needs.
C) Credit Risk :
Credit risk is the unexpected loss in financial instruments if the counter parties fails to discharge it's contractual
obligations in entirety and timely. The Company is exposed to credit risks arising from it's operating and
financing activities such as trade receivables loans and advances and other financial instruments. The carrying
amounts of financial assets represent the maximum credit exposure.
42 Capital management :
For the purpose of Company's capital management capital includes equity share capital and all other reserves
attributable to equity shareholders. The Company has a long-term strategy of pursuing profitable growth. Capital is
managed proactively to secure the existence of the Company as a going concern in the long-term and create financial
flexibility for profitable growth in order to add value to the Company. A further aim of the capital management is to
ensure long-term availability of liquidity maintain strong credit ratings and ensure optimal capital structure in order
to support business through continuing growth and maximizing shareholders value. The Company funds it's
operations through internal accruals and the Management along with the Board of Directors regularly monitor the
returns on capital.
43 Employee benefits : Post employment benefit plans
Defined contribution plans :
The Company makes contributions determined as a specified percentage of employee salaries in respect of
qualifying employees towards Provident Fund which is a defined contribution plan. The Company has no obligations
other than to make the specified contributions. The contributions are charged to the Statement of Profit and Loss
as they accrue. The amount recognised as an expense towards contribution to Provident Fund for the year
aggregated to Rs.49.61 Lakhs (March 31, 2024: Rs.44.20 Lakhs).
Defined benefit plans :
The Company has defined benefit plans that provide gratuity benefit. The gratuity plan entitles an employee who
has rendered at least five years of continuous service to receive one-half month's salary for each year of completed
service at the time of retirement / exit. The Scheme is funded by the plan assets.
The Company makes contributions determined as a specified percentage of employee salaries in respect of certain
employees towards Provident Fund to the Employee Provident Fund.
Valuation techniques and significant unobservable inputs :
Ý The carrying amounts of trade receivables, cash and bank balances, other bank balances, non-current loans,
current loans, other current financial asset, trade payables and other current financial liabilities are measured
at amortised cost in the financial statements are a reasonable approximation of their fair values since the
Company does not anticipate that the carrying amounts would be significantly different from the values that
would eventually be received or settled.
Ý There have been no transfers between Level 1 and Level 2 during the above periods.
Ý Short-term financial assets and liabilities are stated at carrying value which is approximately equal to their fair
value.
45 Dues to Micro, Small and Medium Enterprises :
Under the Micro, Small and Medium Enterprises Development Act 2006 (MSMED) which came into force from
October 2, 2006 certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On
the basis of the information and records available with the management amount outstanding as on March 31, 2025
to Micro, Small and Medium Enterprises on account of principal amount aggregate to Rs.432.92 Lakhs (Previous Year
Rs.796.53 Lakhs). As per the terms / understanding with the parties, no interest is payable and hence no provision
has been made for the same.
46 Segment reporting :
The business of the Company mainly comprises of manufacturing and sale of “Medical Devices” which has been identified
as a single reportable segment for the purpose of Ind AS 108 on ‘Operating Segments'.
The geographical information analyses the Company's revenues and non-current assets by the Company's country of
domicile (i.e. India) and outside India. In presenting the geographical information segment revenue has been based on
geographical location of customers and segment assets which have been based on the geographical location of the assets.
47 Details of Benami Property held :
The Entity has not held any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the
rules made thereunder. Hence any proceeding have not been initiated or pending against the group companies for holding
any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
48 Relationship with Struck Off Companies :
The company has not undertaken any transactions with struck off companies.
49 Borrowings obtained on the basis of Security of Current Asset :
As per sanctioned letter issued by Banks, the company is required to submit Book Debts and Inventory statement to Banks
on quarterly basis. The Books Debts and Inventory statement are in agreement with books of account.
50 Revaluation of Property, Plant and Equipment and Intangible Assets :
The company has not done revaluation of PPE / Intangible assets.
51 Utilisation of Borrowed Funds and Share Premium :
As on March 31, 2025 there is no unutilised amounts in respect of any issue of securities and long-term borrowings from
banks and financial institutions. The borrowed funds have been utilised for the specific purpose for which the funds were
raised.
52 Undisclosed Income :
The company does not have 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).
53 Details of Crypto or Virtual Currency :
The Entity has not traded or invested in crypto currency or virtual currency during the financial year.
54 Registration of Charges or Satisfaction with Registrar of Companies :
The Entity does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory period.
55 Compliance with Number of Layers of Companies :
The Entity does not have any Holding or Subsidiary Companies in respect of the prescribed clause (87) of section 2 of the
Companies Act read with the Companies (Restriction on number of Layers) Rules, 2017.
56 The Entity have 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.
57 The Entity have 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.
As per our report of even date attached
In terms of our report attached For & on behalf of the Board of Directors of CENTENIAL SURGICAL SUTURE LTD.
for MAHESH CHANDRA & ASSOCIATES CIN : L99999MH1995PLC089759
Chartered Accountants
Firm Registration No. 112334W Vijay Majrekar (DIN : 00804808) Anuradha Kashikar (DIN : 00804831)
Chairman & Managing Director Executive Director & Chief Financial Officer
Adityavikram Bohra
Partner Mahima Bathwal
Membership No.: 193223 Company Secretary & Compliance Officer
Mumbai, MAHARASHTRA, May 28, 2025 Membership No. ACS A35069
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