(xvii) Provisions
Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
the Company will be required to settle the
obligation, and a reliable estimate can be made
of the amount of the obligation.
The amount recognised as a provision is the
best estimate of the consideration required to
settle the present obligation at the end of the
reporting period, taking into account the risks
and uncertainties surrounding the obligation.
Onerous contracts
Present obligations arising under onerous
contracts are recognised and measured as
provisions. An onerous contract is considered
to exist where the Company has a contract
under which the unavoidable costs of meeting
the obligations under the contract exceed the
economic benefits expected to be received
from the contract.
(xviii) Contingent liabilities
Contingent liabilities are disclosed in notes
when there is a possible obligation that arises
from past events and whose existence will
be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future
events not wholly within the control of the
entity or a present obligation that arises from
past events where it is either not probable
that an outflow of resources will be required
to settle or a reliable estimate of the amount
cannot be made.
(xix) Financial instruments
Investment in subsidiaries
The Company has accounted for its investments
in subsidiaries at cost less impairment.
Other financial assets and financial liabilities
Other financial assets and financial liabilities are
recognised when Company becomes a party to
the contractual provisions of the instruments.
Initial recognition and measurement:
Other financial assets and financial liabilities
are initially measured at fair value. Transaction
costs that are directly attributable to the
acquisition or issue of financial assets and
financial liabilities (other than financial assets
and financial liabilities at fair value through
profit or loss) are added to or deducted from
the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the
acquisition of financial assets or financial
liabilities at fair value through profit or loss
are recognised immediately in standalone
statement of profit and loss.
Subsequent measurement:
Financial assets at amortised cost: Financial
assets a re su bsequently measured at amortised
cost if these financial assets are held within a
business whose objective is to hold these assets
in order to collect contractual cash flows and
contractual terms of financial asset give rise
on specified dates to cash flows that are solely
payments of principal and interest on the
principal amount outstanding.
Financial assets at fair value through profit
or loss: Financial assets are measured at fair
value through profit or loss unless it measured
at amortised cost or fair value through other
comprehensive income on initial recognition.
The transaction cost directly attributable to the
acquisition of financial assets and liabilities at
fair value through profit or loss are immediately
recognised in the standalone statement of
profit and loss.
Financial liabilities are measured at amortised
cost using effective interest rate method. For
trade and other payables maturing within one
year from the balance sheet date, the carrying
amounts approximate fair value due to the
short maturity of these instruments.
Derecognition of financial assets and
liabilities:
The Company derecognises the financial
asset only when the contractual rights to
the cashflows from the asset expires or it
transfers the financial asset and substantially
all the risks and rewards of the ownership of
the asset to the other entity . If the Company
neither transfers nor retains substantially all
risks and rewards of ownership and continues
to control the transferred asset , the Company
recognizes its retained interest in the asset and
associated liability for the amounts it may have
to pay. If the Company retains substantially
all risks and rewards of the ownership of a
transferred financial asset, the Company
continues to recognize the financial asset and
also recognizes a collateralized borrowing for
the proceeds received. On derecognition of a
financial asset measured at amortised cost,
the difference between the asset's carrying
amount and the sum of the consideration
received and receivable is recognised in
standalone statement of profit or loss. Financial
liabilities are derecognised when these are
extinguished , that is when the obligation
is discharged, cancelled or has expired.The
difference between the carrying amount of
the financial liability derecognised and the
consideration paid and payable is recognised
in profit or loss.
Equity instruments
An equity instrument is a contract that
evidences residual interest in the assets of the
company after deducting all of its liabilities.
Equity instruments recognised by the Company
are recognised at the proceeds received net off
direct issue cost.
(xx) Operating Cycle
Based on 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. The above basis is
used for classifying the assets and liabilities into
current and non-current as the case may be.
(xix) Statement of Cash flows
Cash flows are reported using the indirect
method, whereby profit / (loss) before tax is
adjusted for the effects of transactions of non¬
cash nature and any deferrals or accruals of past
or future cash receipts or payments. The cash
flows from operating, investing and financing
activities of the Company are segregated based
on the available information.
(xxii) Key sources of estimation uncertainty
Key sources of estimation uncertainty
In the application of the Company's accounting
policies, the directors of the Company are
required to make judgements, estimates and
assumptions about the carrying amounts
of assets and liabilities that are not readily
apparent from other sources. The estimates
and associated assumptions are based on
historical experience and other factors that are
considered to be relevant. Actual results may
differ from these estimates.
The estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the
period in which the estimate is revised if the
revision affects only that period, or in the period
of the revision and future periods if the revision
affects both current and future periods.
The following are the key assumptions
concerning the future, and other key sources
of estimation uncertainty at the end of the
reporting period that may have a significant
risk of causing a material adjustment to the
carrying amounts of assets and liabilities within
the next financial year.
Impairment of goodwill and other non¬
financial assets
Determining whether the asset is impaired
requires to assess the recoverable amount of
the asset or Cash Generating Unit (CGU) which
is compared to the carrying amount of the asset
or CGU, as applicable. Recoverable amount is
the higher of fair value less costs of disposal
and value in use. Where the carrying amount
of an asset or CGU exceeds the recoverable
amount, the asset is considered impaired and
is written down to its recoverable amount.
The value in use calculation requires the
directors to estimate the future cash flows
expected to arise from the cash-generating
unit and a suitable discount rate in order to
calculate present value. Where the actual
future cash flows are less than expected, a
impairment loss may arise.
Impairment of financial assets
The impairment provisions for financial
assets are based on assumptions about risk
of default and expected cash loss rates. The
Company uses judgement in making these
assumptions and selecting the inputs to the
impairment calculation, based on Company's
past history, existing market conditions as well
as forward looking estimates at the end of each
reporting period.
Useful lives of property, plant and
equipment
The Company reviews the useful life of
property, plant and equipment at the end of
each reporting period. This assessment may
result in change in the depreciation expense
in future periods.
Defined benefit plans and compensated
absences:
The cost of the defined benefit plans,
compensated absences and the present value
of the defined benefit obligations are based
on actuarial valuation using the projected unit
credit method. An actuarial valuation involves
making various assumptions that may differ
from actual developments in the future. These
include the determination of the discount rate,
future salary increases and mortality rates. Due
to the complexities involved in the valuation
and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at
each reporting date.
Income taxes
Significant judgments are involved in
determining the provision for income taxes
including judgment on whether tax positions
are probable of being sustained in tax
assessments. A tax assessment can involve
complex issues, which can only be resolved
over extended time periods.
Deferred tax is recorded on temporary
differences between the tax bases of assets
and liabilities and their carrying amounts, at the
rates that have been enacted or substantively
enacted at the reporting date. The ultimate
realisation of deferred tax assets is dependent
upon the generation of future taxable profits
during the periods in which those temporary
differences and tax loss carry-forwards
become deductible. The Company considers
expected reversal of deferred tax liabilities and
projected future taxable income in making this
assessment. The amount of deferred tax assets
considered realisable, however, could reduce
in the near term if estimates of future taxable
income during the carry-forward period
are reduced.
Controlling parties assessment
The Company performs assessment for
identification of controlling parties. The
assessment involves judgements which
included consideration of controlling parties'
absolute size of holding in the Company,
determination of whether other parties are
acting on the investor's behalf, determination
of whether parties have the practical ability
to exercise that right and the relative size of
and dispersion of the shareholdings owned by
the other shareholders. Based on assessment,
the Company is not controlled by any single
shareholder or group of shareholders.
Going Concern
The Management has prepared cash flow
forecasts for the next 12 months. The forecasts
include assumption such revenue projection,
increase in gross margin and EBITDA due to
cost control measures and strategic focus to
maintain reduced inventory levels.
Inventory
The Company estimates the net realisable value
(NRV) of its inventories by taking into account
their estimated selling price, estimated cost of
completion, estimated costs necessary to make
the sale. Management reviews the inventory
age listing on a periodic basis. This review
involves comparison of the carrying value of the
aged inventory items with the respective net
realisable value. Inventories are written down
to NRV where such NRV is lower than their cost.
Litigations
The Company is a party to certain direct and
indirect tax disputes. Uncertain tax items for
which a provision is made relate principally to
the interpretation of tax legislation applicable
to arrangements entered into by the Company.
Due to the uncertainty associated with such tax
items, it is possible that, on conclusion of open
tax matters at a future date, the final outcome
may differ significantly.
Notes:
(i) Figures in brackets relates to previous year.
(ii) Refer note 21 for investment properties pledged as security towards borrowings by the Company.
(iii) The title deeds of investment property (as at March 31, 2026 gross block ' Nil and net block of ' Nil) (as at March
31, 2025 gross block ' 3.02 Crores and net block of ' 2.28 Crores) capitalised in the books of the Company are
in the name of erstwhile Companies as given below. The Company is in the process transferring the title deeds
of such properties in its name.
(v) Fair value of investment properties: v
The Company obtains independent valuations for its investment properties once in three years. The latest fair value
of the Company's investment properties were carried out as at March 31, 2024 which indicated fair value of ' 7.53
Crores on the basis of a valuation carried out by independent valuers. The said valuers are registered with the
authority which governs valuers in India and have appropriate qualifications and relevant experience in the valuation
of properties in the relevant locations
The inputs used are as follows:
a) Valuation is done using discounted cash flow approach, where the value of an asset is measured in terms of
future cash flow streams, discounted to the present time at 12.50%.
b) Lease rent agreements are cancellable which are expected to be renewed either with the existing lessee or with
others, on similar terms and conditions.
Impairment assessment of goodwill allocated to the “Human API business” as at March 31, 2026:
The Management of the Company have performed annual impairment assessment of the goodwill and related asset
of Cash Generating Unit (CGU) by determining the ""value in use"" of this CGU as an aggregate of present value of
management cash flow projections covering a five year period and the terminal value. Determination of value in use
involves significant estimates and assumptions that affect the reporting CGU's expected future cash flows. These
estimates and assumptions, primarily include, but are not limited to, the revenue growth and profitability during the
forecast period, the discount rate and the terminal growth rate.
Considering the historical performance of this business since acquisition and based on the forward looking estimates,
including the changes in estimated future economic conditions, revisions were made to the cash flow projections
and other key assumptions such as discount rate and the terminal growth rate. The cash flows are discounted using
a pre tax discount rate of 21.35% (March 31, 2025: 20.89%) which is based on the Company's weighted average cost
of capital. The terminal value of cash generating unit is arrived at by extrapolating cash flows of latest forecasted year
to perpetuity using a constant long-term growth rate of 3.00% (March 31, 2025: 3.00%) p.a. which is consistent with
the industry forecasts for the generic API market.
The above assessment did not result in impairment in the carrying amount of goodwill.
The table below shows the percentage movement in key assumptions that (individually) would be required to reach
the point at which the value in use approximates its carrying value.
(i) The Board of Directors of the Company at its meeting held on January 24, 2025 had discussed a proposal to
explore 'demerger of the CRAMS and Polymers business into an independent listed entity' and granted in¬
principle approval for the same. Pursuant to this, the Parent incorporated a wholly owned subsidiary, Synthix
Global Pharma Solutions Limited on April 29, 2025.
is applicable from Financial Year beginning April 1, 2019. The Company has accordingly applied the existing tax
rates in the financial statements for the year ended March 31, 2026
(ii) During Financial year 2017-18, the Company acquired the Human API and Commodity API businesses vide a
NCLT approved Scheme of demerger. For purposes of recognising tax expenses and deferred tax balances in the
books of account, the Company has considered Goodwill as non-tax deductible and the Company continued
to apply the initial recognition exemption under Ind AS 12 “Income taxes".
(iii) The Company has significant carried forward losses under income tax act. While the Company expects to
increase operations in the future, in view of the significant carried forward losses, the Company has restricted
the recognized Deferred Tax Asset up to the amount of the Deferred Tax Liability.
(iv) Based on legal advice received by the Company, the Company has claimed in its income tax returns, depreciation
on Goodwill and Product Portfolios relating to both businesses acquired through the aforesaid demerger.
These claims were disallowed by the assessing officer. The Company has preferred appeal with Commissioner
of income tax (appeals). Order against appeal had been passed vide order dated April 18, 2024, confirming
disallowance of depreciation on goodwill & product portfolio and the Company has filed an appeal before the
ITAT against it on May 06, 2024.The Company has not recognised deferred tax assets in the books of account in
respect of claims relating to depreciation on the Goodwill relating to both the businesses and Product portfolio
(relating to the Commodity API business)
While the Company has consistently taken a view as aforesaid in the books of account, the Company has
been legally advised that the claims made in the tax returns are tenable. As at March 31, 2026, the potential
unrecognised claims in respect of the above is amounting to ' 607.24 Crores (' 600.38 crores as on March
31, 2025). The benefit of these tax credits will be evaluated and recognized in the year in which, based on
management's best judgement, such credits are confirmed to be available for future set offs against taxable
profits. Also refer note 37, regarding income tax litigations.
(v) In addition to above, the Company has not recognised deferred tax assets of ' 156.36 crores as on March 31,
2026 ('.160.04 crores as on March 31, 2025) relating to carried forward loss (including unabsorbed depreciation)
as there is no reasonable certainty that sufficient future taxable income will be available against which such
deferred tax asset can be realised.
(iii) Detail of the rights, preferences and restrictions attaching to each class of shares outstanding equity
shares of '10/- each:
The Company has only one class of equity shares, having a par value of ' 10/-. The holder of equity shares
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 approval by the shareholders at the ensuing annual general
meeting. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive
any of the remaining assets of the Company, after distribution to all preferential amounts. The distribution will
be in proportion to number of equity shares held by the shareholders.
(iv) Supplier finance arrangements:
In order to ensure easy access to credit for its suppliers and facilitate early settlement, the Company has entered
into supplier finance arrangements that permit the suppliers to obtain payment from the banks for the amounts
billed up to days before the invoice due date, subject to a discount of up to 11 per cent. The arrangements
permit the banks to early settle invoices of up to pre-fixed limits for each suppliers. The discount represents less
than the trade discount for early repayment commonly used in the market. The Company repays the banks the
full invoice amount on the scheduled payment date as required by the invoice. As the arrangements do not
permit the Group to extend finance from the banks by paying them later than the Company would have paid
its suppliers, the Company considers amounts payable to the banks should be presented as part of trade and
other payables. As at March 31, 2026, 9.13 % of trade payables were amounts owed under these arrangements.
Changes to Employee Benefits upon notification of Labour Codes:
The Government of India notified the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on
Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively, the
Labour Codes"). These Labour Codes, which have become effective from 21 November 2025, consolidate and
rationalise 29 labour laws and introduce, among other matters, a uniform definition of “Wages". Also, the Labour
Codes have modified certain employee benefits and eligibility conditions in respect of those benefits. Accordingly,
during the year, the Company has amended its policies relating to employee benefits and modified its employment
contracts to align such benefits with the requirements of the Labour Codes. The changes include (i) alignment of the
definition of Wages for social security contributions / provisions (ii) revisions to compensated absences entitlement
and encashment rules, and (iii) modifications to gratuity-related terms and take effect on and from February 1, 2026.
Past service cost resulting from plan amendments amounting to ' 5.89 crores has been recognised immediately in
the Standalone Statement of Profit and Loss and has been classified as a part of Exceptional Item.
NOTE NO. 38 EMPLOYEE BENEFITS PLANSDefined contribution plan
The Company makes contributions to provident fund and employee state insurance schemes which are defined
contribution plans, for qualifying employees. Under the schemes, the Company is required to contribute a specified
percentage of the payroll cost to fund the benefits.The Company recognised ' 10.96 Crores (March 31, 2025: ' 11.14
Crores) for provident fund contributions, ' 0.02 Crores (March 31, 2025: ' 0.02 Crores) for employee state insurance
scheme contributions in the Standalone Statement of Profit and Loss. The contributions payable to these plans by
the Company are at rates specified in the rules of the schemes.
Defined benefit plan
The Company offers gratuity benefits, a defined employee benefit scheme to its employees. The benefit vests
upon completion of five years of continuous service and once vested it is payable to employees on retirement or on
termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting.
Composition of the plan assets
The fund is managed by LIC and SBI, the fund manager. The details of composition of plan assets managed by the
fund manager is not available with the company. However, the said funds are subject to Market risk (such as interest
risk, investment risk, etc.).
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has
been calculated using the projected unit credit method at the end of the reporting period, which is the same as that
applied in calculating the defined benefit obligation liability recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
There has been no change in the process used by the Company to manage its risks from prior periods.
NOTE NO. 41 SEGMENT REPORTING:
The Company is engaged in the manufacture and sale of Active Pharma Ingredients. The operating segment of the
Company is identified to be “"Manufacture and sale of Active Pharma Ingredients"". The Managing Director and Chief
executive officer of the Company who has been identified as the chief operating decision maker (CODM) reviews
business performance at an overall Company level as one segment
As the Company operates in single operating segment i.e., “"Manufacture and sale of Active Pharma Ingredients"", the
reporting disclosures envisaged in Ind AS 108 on operating segments, are not applicable to the Company. However,
the geographical information are disclosed below::
NOTE NO. 42 SHARE-BASED PAYMENTS:
Employee Stock Option Scheme (ESOP 2018)
The ESOP titled “Solara Employee Stock Option Plan 2018" (ESOP 2018) was approved by the shareholders and
stock exchanges. 1,228,778 options are covered under the plan which are convertible into equal number of equity
shares of the Company. The vesting period of these options range over a period of three years. The options must be
exercised within a period of 120 days from the date of vesting. The Company has not granted any options (March
31, 2025: 110,200 options) under this plan during the current year.
Employee Stock Option Scheme (ESOP 2024)
The ESOP titled “Solara Employee Stock Option Plan 2024" (ESOP 2024) was approved by the shareholders and
stock exchanges.960,000 options are covered under the plan which are convertible into equal number of equity
shares of the Company. The vesting period of these options range over a period of three years. The options must be
exercised within a period of 120 days from the date of vesting. The Company has granted 25,000 options (March
31, 2025: 350,000) under this plan during the current year.
During the current year, employee compensation costs of ' 4.67 Crores (Previous year: ' 2.68 Crores) relating to the
above referred Employee Stock Option Plans have been charged to the Statement of Profit and Loss..
Fair value of share options granted during the year
The fair value of the share options were priced using a Black-Scholes model of valuation at grant date.The assumptions
used in this model for calculating fair value of the ESOP granted during the year are as below:
The Company's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The
Company's primary focus is to foresee the unpredictability of financial markets and seek to minimise potential
adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk.
The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised
below::
The Company is exposed to foreign exchange risk due to:
- debt availed in foreign currency
- exposure arising from transactions relating to purchases, revenues, expenses, etc., to be settled (within and
outside the group) in currencies other than the functional currency (i.e. Indian rupees).
The carrying amount of the Company's foreign currency denominated monetary liabilities (payables) and assets
(receivables) as at the end of reporting period are as under:
Foreign currency sensitivity analysis
Financial instruments affected by changes in foreign exchange rates include loans in foreign currencies.
The Company considers US Dollar and the Euro to be principal currencies which require monitoring and risk
mitigation. The impact on account of 5% appreciation / depreciation in the exchange rate of the above foreign
currencies against ' is given below:
The impact on profit has been arrived at by applying the effects of appreciation / deprecation effects of currency
on the net position (Assets in foreign currency - Liabilities in foreign currency) in the respective currencies.
For the purpose of the above table, it is assumed that the carrying value of the financial assets and liabilities
as at the end of respective financial years remains constant thereafter. The exchange rate considered for the
sensitivity analysis is the exchange rate prevalent as at each year end.
The sensitivity analysis might not be representative of inherent foreign exchange risk due to the fact that the
foreign exposure at the end of the reporting period might not reflect the exposure during the year.
43.4 Interest rate risk management
Interest rate risk arises from borrowings. Debt issued at variable rates exposes the company to cash flow risk.
Debt issued at fixed rate exposes the company to fair value risk.
At the reporting date the interest rate profile of the Company's interest-bearing financial instruments is as follows:
Interest rate sensitivity analysis
Financial instruments affected by interest rate changes include secured long term loans from banks and secured
short term loans from banks. The impact of a 1% change in interest rates on the profit of an annual period will
be ' 6.15 Crores (March 31, 2025: ' 776 Crores) assuming the loans at each year end remain constant during
the respective years. This computation does not involve a revaluation of the fair value of loans as a consequence
of changes in interest rates. The computation also assumes that an increase in interest rates on floating rate
liabilities will not necessarily involve an increase in interest rates on floating rate financial assets.
43.5 Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Company. Credit Risk to the company primarily arises from trade receivables. Credit risk also arises
from cash and cash equivalents, financial instruments and deposits with banks and financial institutions and
other financial assets.
The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating
the risk of financial loss from defaults. The Company has an internal mechanism of determining the credit rating
of the customers and setting credit limits. Credit exposure is controlled by counterparty limits that are reviewed
and approved by the risk management committee annually. Ongoing credit evaluation is performed on the
financial condition of accounts receivable.
The Company is not significantly exposed to geographical credit risk as the counterparties operate across various
countries across the globe.
Credit risk on cash and cash equivalent is limited as the Company generally transacts with banks and financial
institutions with high credit ratings assigned by international and domestic credit rating agencies.
43.6 Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an
appropriate liquidity risk management framework for the management of the Company's short-term, medium-
term and long-term funding and liquidity management requirements. The Company manages liquidity risk by
maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring
forecast and actual short term and long term cash flows, and by matching the maturity profiles of financial
assets and liabilities.
43.6.1 Liquidity analysis for Non-Derivative Financial Liabilities
The following table details the Company's remaining contractual maturity for its non-derivative financial liabilities
with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of
financial liabilities based on the earliest date on which the Company can be required to pay. The table include
repayment of principal amounts. The contractual maturity is based on the earliest date on which the Company
may be required to pay.
The Company manages its capital to ensure that entities in the Group will be able to continue as going concerns
while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital
structure of the Company consists of net debt (borrowings as detailed in note 21 offset by cash and bank balances)
and total equity.
The Company is not subject to any externally imposed capital requirements.
44.1 Gearing ratio
The gearing ratio at end of the reporting period was as follows.
Notes:
(i) Explanation for variances exceeding 25%:
(a) Decrease in Debt-Equity ratio is due to decrease in current borrowings
(b) Decrease in Return on Equity ratio is on account of increase in Net loss
(c) Decrease in Net capital turnover ratio is on account of increase in Working capital
(d) Decrease in Net profit ratio is on account of increase in Net loss
Definitions:
Debt is defined as non-current borrowings, current maturities of non-current borrowings and current borrowings
and includes lease liabilities
Equity is defined as Equity share capital and Other equity.
Tangible Equity is defined as Equity share capital and Other equity less Goodwill less Intangible Assets
Earnings before interest,taxes, depreciation and amortisation (EBITDA) is defined as:
Profit for the year before exceptional items and taxes (add) Depreciation and Amortisation (add) Finance costs (less)
interest income"
Debt repayment is defined as non-current borrowings repaid during the year
Interest payments is defined as interest paid on borrowings during the year
Net Loss (LAT) is defined as Loss for the year after tax
Cost of goods sold is defined as Cost of materials consumed, Purchases of stock-in-trade and Changes in inventories
of finished goods and work-in-progress
Sales Turnover is defined as Sale of products and Sale of services
Earnings before interest and taxes (EBIT) is defined as:
Profit for the year before exceptional items and taxes (add) Finance costs (less) interest income"
Working capital is defined as Currents Assets less Current Liabilities
Tangible Capital employed is defined as Equity and Debt less Goodwill less Intangible Assets
(a) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property.
(b) The Company does not have any transactions with companies struck off.
(c) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period,
(d) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(e) The Company has no transaction not recorded in the books of accounts 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).
(f) The Company has borrowings from banks on the basis of security of current assets, the quarterly returns or
statements of current assets has been filed by the Company with banks are in agreement with the books
of accounts.
(g) The Company has not been declared willful defaulter by any bank or financial Institution or other lender.
(h) 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
(i) 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,
NOTE NO. 48
With effect from 1 April 2023, the Ministry of Corporate Affairs (MCA) has made it mandatory for companies to
maintain an audit trail throughout the year for transactions impacting books of accounts.
The Company has used accounting software systems for maintaining its books of account for the financial year
ended March 31, 2026 which have the feature of recording audit trail (edit log) facility and the same has operated
throughout the year for all relevant transactions recorded in the software except that in respect of one accounting
software, audit trail was not enabled for certain critical tables. The Management is of the view that this does not have
any impact on its Standalone Financial Statements for the period ended March 31, 2026.
Additionally, the audit trail that was enabled and operated has been preserved by the Company as per the statutory
requirements for record retention.
There was a fire accident at the Company Puducherry facility on November 04, 2023 whereby 3 blocks out of the
total 76 blocks were impacted by the fire. The fire caused damages to the plant and equipment amounting to ' 2.25
crores, inventories amounting to ' 51.35 crores, Goods and service tax reversal on inventory loss amounting to ' 7.52
crores and other expense such as medical expenses etc. amounting ' 1.38 crores. The Company has submitted the
initial insurance claims which are subject to assessment by the Insurers, pending which, the claim has not been
recognised in these standalone financial statements. The insurance claim will be accrued once there is certainty of
the amount expected to be reimbursed by the Insurers.
NOTE NO. 50
The Company, vide its letter of offer dated May 09, 2024 offered up to 1,19,98,755 Equity shares of face value of
' 10/- each at a price of ' 375 per Equity share (including Share premium of ' 365 per Equity share) for an amount
aggregating ' 449.95 crores to the existing shareholders of the Company on right basis in the ratio of One Equity
share for every three equity shares held by the Equity shareholders on the record date i.e. May 15, 2024. Rights issue
has been done in accordance with Section 62(1)(a) of the Act and other applicable laws. The Company has allotted
1,19,98,755 Nos. of partly paid up equity shares on June 19, 2024.
As of March 31, 2026, the Company has raised ' 312.79 crores under the rights issue of ' 449.95 crores, comprising
' 15748 crores from application money (' 4.14 crores share capital and ' 157.48 crores securities premium) and
' 155.31 crores (' 4.14 crore share capital and ' 151.17 crores securities premium) from the first call made on May 6,
2025 with ' 2.17 crores still unpaid. The Company has sent the second and final call notice to the eligible members as
on the record date calling for the balance amount of ' 134.99 crores. Net proceeds have been utilised in accordance
with the Letter of Offer, with the balance held in bank accounts pending deployment..
NOTE NO. 51
According to Management's evaluation of events subsequent to the balance sheet date there were no significant
adjusting events that occurred other than those disclosed/given effect to, in these financial statements as of March
31, 2026.
NOTE NO. 52
Ministry of Corporate Affairs (“MCA") notifies new standards or amendments to the existing standards under
Companies (Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended
March 31, 2026, MCA has notified the Companies (Indian Accounting Standards) Amendment Rules, 2025 and
Companies (Indian Accounting Standards) Second Amendment Rules, 2025, whereby MCA has amended certain
Indian Accounting standards which are applicable to the company w.e.f. April 01, 2025.
The Company has reviewed the new pronouncements and based on its evaluation has determined that it does not
have any significant impact in its standalone financial statements..
NOTE NO. 53
The figures for the corresponding previous period have been regrouped/reclassified wherever necessary.
NOTE NO. 54
All the amounts included in the standalone financial statements are rounded off to the nearest crores, except per
share data and unless stated otherwise. Further, due to rounding off, certain amounts are appearing as '0'.
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