p) Provisions
Provisions for legal claims and returns are recognised when the company has a present legal or
constructive obligation as a result of past event, it is probable that an outflow of resources will be required to
settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future
operating losses.
Provisions are measured at the present value of management's best estimate of the expenditure required to
settle the present obligation at the end of the reporting period. The discount rate used to determine the
present value is a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the liability. The increase in the provisions due to the passage of time is recognized as
interest expense.
q) Employee benefits
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service are
recognized in respect of employees' services up to the end of the reporting period and are measured at the
amounts expected to be paid when the liabilities are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.
r) Contributed equity
Equity shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
s) Dividends
Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at
the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the
reporting period.
t) Earning per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
• The profit attributable to owners of the company
• By the weighted average number of equity shares outstanding during the financial year, adjusted for bonus
elements in equity shares issued during the year and excluding treasury shares.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account:
• The after income tax effect of interest and other financing costs associated with dilutive potential equity
shares, and
• The weighted average number of additional equity shares that would have been outstanding assuming the
conversion of all dilutive potential equity shares.
u) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker.
v) Leases
The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time
in exchange for consideration. To assess whether a contract conveys the right to control the use of an
identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii)
the Company has substantially all of the economic benefits from use of the asset through the period of the
lease and (iii) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a
corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of
twelve months or less (short-term leases) and low value leases. For these short-term and low value leases,
the Company recognizes the lease payments as an operating expense on a straight-line basis over the term
of the lease.
Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease
term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be
exercised.
The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any
initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated
depreciation and impairment losses
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter
of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability
whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.
For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to
sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate
cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is
determined for the Cash Generating Unit (CGU) to which the asset belongs.
The lease liability is initially measured at amortized cost at the present value of the future lease payments.
The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable,
using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are re¬
measured with a corresponding adjustment to the related right of use asset if the Company changes its
assessment if whether it will exercise an extension or a termination option.
w) Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs with
two decimals as per the requirement of Schedule III, unless otherwise stated.
x) Standards issued but not effective
There is no such notification applicable from 01.04.2025.
(C) Terms/Rights attached to equity sharesThe Company has only one class of equity shares having a face
value of Rs. 10 /- each. Each holder of equity share is entitled to one vote per share. The company declares
and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the
company, the equity shareholders will be entitled to receive remaining assets of the company, after
distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.
The amounts receivable from customers become due after ex p i ry of cre d it p erio d which o n a n
The Company does not provide performance warranty for products, therefore there is no liability
The Company does not have any material performance obligations which are outstanding as at the
(B) There are no advances received from customers during the year.
20. Financial instruments and risk management
Fair values
1. The carrying amounts of trade payables, other financial liabilities(current), borrowings (current),trade
receivables, cash and cash equivalents, other bank balances and loans are considered to be the same as
fair value due to their short term nature.
2. The fair value of financial assets and liabilities is included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
Set out below, is a comparision by class of the carrying amounts and fair value of the Company's financial
instruments, other than those with carrying amounts that are reasonable approximation of fair values:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques, which maximise the use of observable market data and rely as little as possible on entity
specific estimates. If significant inputs required to fair value an instruments are observable, the instrument is
included in Level 2.
Level 3: If one or more of the significant inputs are not based on observable market data, the instruments is
included in level 3.
Management uses its best judgement in estimating the fair value of its financial instruments. However, there are
inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair
value estimates presented above are not necessarily indicative of the amounts that the Company could have
realized or paid in sale transactions as of respective dates. As such, the fair value of financial instruments
subsequent to the reporting dates may be different from the amounts reported at each reporting date. In respect
of investments as at the transaction date, the Company has assessed the fair value to be the carrying value of the
investments as these companies are in their initial years of operations obtaining necessary regulatory approvals
to commence their business.
21. Financial risk management
The Company is exposed to market risk (fluctuation in foreign currency exchange rates, price and interest
rate), liquidity risk and credit risk, which may adversely impact the fair value of its financial instruments. The
Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse
effects on the financial performance of the Company.
(A) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises of currency risk, interest rate risk and price risk. Financial
instruments affected by market risk include loans and borrowings, trade receivables and trade payables
involving foreign currency exposure. The sensitivity analyses in the following sections relate to the position
as at March 31,2025 and March 31,2024.
The analysis exclude the impact of movements in market variables on the carrying values of financial assets
and liabilties .
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market
risks. This is based on the financial assets and financial liabilities held at 31st March, 2025 and 31 March
2024.
(i) Foreign currency exchange rate risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because
of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange
rates relates primarily to the trade/ other payables, trade/other receivables and derivative assets/liabilities.
The risks primarily relate to fluctuations in US Dollar against the functional currencies of the Company. The
Company's exposure to foreign currency changes for all other currencies is not material. The Company
evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
The following tables demonstrate the sensitivity to a reasonably possible change in US dollors exchange
rates, with all other variables held constant. The impact on the Company's profit before tax is due to changes
in the fair value of monetary assets and liabilities.
(ii) Sensitivity
The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency
denominated financial instruments and from foreign forward exchange contracts:
The movement in the pre-tax effect is a result of a change in the fair value of monetary assets and liabilities
denominated in US dollars where the functional currency of the entity is a currency other than US dollars
(B) Credit Risk
Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks
and current and non-current held-to maturity financial assets.
With respect to credit exposure from customers, the Company has a procedure in place aiming to minimise
collection losses. Credit Control team assesses the credit quality of the customers, their financial position,
past experience in payments and other relevant factors. Cash and other collaterals are obtained from
customers when considered necessary under the circumstances.
The carrying amount of trade receivables, loans, advances, deposits, cash and bank balances, bank deposits
and interest receivable on deposits represents company's maximum exposure to the credit risk. No other
financial asset carry a significant exposure with respect to the credit risk. Bank deposits and cash balances are
placed with reputable banks and deposits are with reputable government, public bodies and others.
The credit quality of financial assets is satisfactory, taking into account the allowance for credit losses.
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However, management also considers the factors that may influence the credit risk of its customer base,
including default risk associate with the industry and country in which customers operate. Credit quality of a
customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in
accordance with this assessment.
An impairment analysis is performed at each reporting date on an individual basis for major receivables. The
maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.
i. Credit risk on cash and cash equivalents and other bank balances is limited as the Company generally
invest in deposits with banks with high credit ratings assigned by external agencies.
ii. Credit risk on trade receivables and other financial assets is evaluated as follows:
(iii) Significant estimates and judgements
Impairment of financial assets:
The impairment provisions for financial assets disclosed above are based on assumptions about risk of
default and expected loss rates. The company uses judgement in making these assumptions and selecting
the inputs to the impairment calculation, based on the company's past history, existing market conditions as
well as forward looking estimates at the end of each reporting period.
(C) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding to meet
obligations when due and to close out market positions. Company's treasury maintains flexibility in funding
by maintaining availability under deposits in banks.
Management monitors cash and cash equivalents on the basis of expected cash flows.
Maturities of Financial liabilities
Contractual maturities of financial liabilities as at :
22. Capital management
Capital management and Gearing Ratio
For the purpose of the Company's capital management, capital includes issued equity capital and all other
equity reserves attributable to the equity holders. The primary objective of the company's capital
management is to maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants. The Company monitors capital using a gearing
ratio, which is debt divided by total capital. The Company includes within debt, interest bearing loans and
borrowings.
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to
ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital
structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call
loans and borrowings.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31st
March 2024 and 31st March 2023.
23. MSME Note
Micro enterprises and small enterprises under the Micro, Small and Medium Enterprises Development Act,
2006 have been determined based on the confirmations received in response to intimation in this regard
sent by the Company to the suppliers. No interest in terms of Section 16 of Micro, Small and Medium
Enterprises Development Act, 2006 or otherwise has either been paid or payable or accrued and remaining
unpaid as at March 31,2025.
28. Segment Information
a) Description of segments and principal activities
The Company primarily operates in the Pharmaceutical segment. The Chief Operating Decision Maker
(CODM) reviews the performance of the Pharmaceutical segment at the consolidated level and makes
decisions on sales volumes and profitability.
b) Major Customer in Pharmaceutical Segment
72.87% (P.Y 55.56%) of Revenue is coming from one single customer
29. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign
entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).
The Company has not received any fund from any party(s) (Funding Party) with the understanding that the
Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on
behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
30. The Company is using Tally accounting software Version Prime 2.0 and the audit trail feature is not enabled.
The company is in the process of establishing necessary controls and maintaining documentation relating
to audit trail (edit log) as per Rule 3(1) of Companies (Accounts) Rules, 2014
31. Relationship with Struck off companies
The company does not have any transaction with companies struck off under Section 248 of the Companies
Act, 2013 or Section 560 of Companies Act, 1956, during the current year and in the previous year.
33. Segment information
(a) Description of segments and principal activities
The Group primarily operates in the Pharmaceutical segment, Consultancy Services and others. The Chief
Operating Decision Maker (CODM) reviews the performance of the above mentioned segments at the
consolidated level and makes decisions on sales volumes and profitability.
The accompanying notes are an integral part of the financial statements.
As per our report of even date For and on behalf of the Board
For Ramanatham & Rao
Chartered Accountants
FRN : 0029345 Sht Mohan Lal VenkateswamRao Gudipudi
Sd/- Execut0vie2D)rie5tor Director
K.Srinivasan DIN: 01227151 DIN: 02147615
Partner
M.No: 206421 Sd/- Sd/-
Preeti Singh Sonam Jalan
Place: Hyderabad Company Secretary Chief Financial Officer
Date: 30.05.2025 MGMPS5480G COFPK5981R
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