9. 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.
Provisions for restructuring are recognised
by the Company when it has developed a
detailed formal plan for restructuring and
has raised a valid expectation in those
affected that the Company will carry out
the restructuring by starting to implement
the plan or announcing its main features to
those affected by it.
Provisions are measured at 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. When a provision is measured
using the cash flows estimated to settle
the present obligation, its carrying amount
is the present value of those cash flows
(when the effect of the time value of money
is material). The measurement of provision
for restructuring includes only direct
expenditures arising from the restructuring,
which are both necessarily entailed by the
restructuring and not associated with the
ongoing activities of the Company.
10. Employee Benefits
Employee benefits include salaries, wages,
contribution to provident fund, gratuity,
leave encashment towards un-availed
leave, compensated absences, post¬
retirement medical benefits and other
terminal benefits.
Short-term Employee Benefits
Wages and salaries, including non¬
monetary benefits that are expected to be
settled within 12 months after the end of
the period in which the employees render
the related service are recognised 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.
Liabilities recognised in respect of short¬
term employee benefits are measured at
the undiscounted amount of the benefits
expected to be paid in exchange for the
related service. Liabilities recognised in
respect of other long-term employee
benefits are measured at the present value
of the estimated future cash outflows
expected to be made by the Company in
respect of services provided by employees
up to the reporting date.
Post-employment Benefits
• Defined Benefit Plan
Defined benefit plans comprising
of gratuity, post-retirement medical
benefits and other terminal benefits,
are recognized based on the present
value of defined benefit obligations
which is computed using the projected
unit credit method, with actuarial
valuations being carried out at the
end of each annual reporting period.
These are accounted either as current
employee cost or included in cost of
assets as permitted.
The net interest cost is calculated
by applying the discount rate to the
net balance of the defined benefit
obligation and the fair value of plan
assets. This cost is included in employee
benefit expense in the statement of
profit and loss.
Remeasurement gains and losses arising
from experience adjustments and
changes in actuarial assumptions are
recognised in the period in which they
occur, directly in other comprehensive
income. They are included in retained
earnings in the statement of changes in
equity and in the balance sheet.
Changes in the present value of the
defined benefit obligation resulting
from plan amendments or curtailments
are recognised immediately in profit or
loss as past service cost.
11. Earnings per Share
Basic Earnings per Share
Basic earnings per share is computed by
dividing the net profit after tax by weighted
average number of equity shares outstanding
during the period. The weighted average
number of equity shares outstanding during
the year is adjusted for treasury shares,
bonus issue, bonus element in a rights issue
to existing shareholders, share split and
reverse share split (consolidation of shares).
Diluted Earnings per Share
Diluted earnings per share is computed by
dividing the profit after tax after considering
the effect of interest and other financing
costs or income (net of attributable taxes)
associated with dilutive potential equity
shares by the weighted average number of
equity shares considered for deriving basic
earnings per share and also the weighted
average number of equity shares that could
have been issued upon conversion of all
dilutive potential equity shares including
the treasury shares held by the Company
to satisfy the exercise of the share options
by the employees.
Right, Preferences and Restrictions attached to Shares
Equity Shares
The company has only one class of Equity having a par value ' 10.00 per share. Each shareholder is
eligible for one vote per share held. The dividend proposed by the board of directors is subject to the
approval of the shareholders in ensuing Annual General Meeting, except in case of interim dividend.
In the event of liquidation, the Equity shareholders are eligible to receive the remaining assets of the
company after distribution of all preferential amounts, in proportion to their shareholding.
Terms of repayment of loans:
1. Vehicle Loan from HDFC Bank (8347) is repayable in 60 monthly equal instalments of '71,695
each, starting from December 2021. The total outstanding as on 31st March 2025 is '13,48,551.78.
2. Vehicle Loan from HDFC Bank (8131) is repayable in 60 monthly equal instalments of '31,186
each, starting from May 2021. The total outstanding as on 31st March 2025 is '3,86,001.32.
3. Loan from Bank of Baroda (2820) is repayable in 36 monthly instalments of '2,31,972 each, after
an initial moratorium period of 12 months, i.e. starting from January 2023. The total outstanding
as on 31st March 2025 is '48,71,420.00.
4. Loan from Bank of Baroda (3018) is repayable in 60 monthly instalments of '2,62,000 each,
starting from April 2023. The total outstanding as on 31st March 2025 is '23,68,000.00.
5. The coupon rates for the secured long-term borrowings are 710 % to 11.40 % per annum
(Previous Year: 7.10% to 10.35% per annum).
6. Unsecured loans of '3,00,000.00 had been received from Abundant Tradelink Private Limited.
No terms of repayment have been specified for the same.
7. Loans from Bank of Baroda (2820, 3018 and 1570) are secured by equitable mortgage of
factory land and building and residential bungalow of Director Shri Natwarbhai P Prajapati and
hypothecation of all plant and machinery, movable fixed assets, stock, book debts and all the
current assets of the company, as well as personal guarantee of the following directors:
a. Mr. Natwarbhai P. Prajapati
b. Mr. Amritbhai P. Prajapati
c. Mr. Aalap N. Prajapati
NOTE NO. 36: DISCONTINUED OPERATIONS
On 1st January 2018, the board of directors of the company decided to discontinue the operations
of the Metal Division, which had been suspended by the management since last few years. As on 31st
March 2018, the Metal Division was classified as Discontinued Operations. The Metal Division which
was earlier shown as an operating segment is no longer presented in the segment report. For the
financial year ended on 31st March 2025, no financial transactions have occurred relating to the Metal
Division and there are no results to be declared for the same.
At the time of classification of the Metal Division as a discontinued operation, the recoverable value
of items of property, plant and equipment was estimated based on the report of a registered valuer.
As per the report of the registered valuer dated 18th May 2022, no impairment losses were identified
in the value of property, plant and equipment.
NOTE NO. 37: PROVISION FOR TAX OF EARLIER YEARS UNDER DIRECT TAX VIVAAD
SE VISHWAS SCHEME
The Income Tax Department had made additions to the income of the company on various grounds
for the financial years 2010-11, 2011-12, 2012-13 and 2013-14, against which, the company had
preferred appeals before the Commissioner of Income Tax (Appeals) during the respective periods
in which the matters were decided. The appeals were disposed of by the Commissioner with a
reduction in demands, which were duly paid by the company. However, in respect of those matters,
the Income Tax Department had preferred further appeals before the Income Tax Appellate Tribunal,
Ahmedabad, and the matters were decided by the Hon. Tribunal against the company. The company
filed a Miscellaneous Application for rectification of the said orders which was also decided against the
company. Against the said orders, the company had filed a petition before Hon. Gujarat High court.
During the year under audit, the Income Tax Department launched a dispute resolution scheme, viz.
the Direct Tax Vivaad se Vishwas scheme. The company has opted for settlement of pending disputes
under this scheme and hence, filed an application in Form 1 as per the scheme. The company is
awaiting the certificate in Form 2 from the Income Tax Department. As per the declaration in the said
Form 1, the company has provided '341.71 lakh as tax item.
Signature to notes 1 to 37.
In terms of our separate audit report of even date attached.
For M. A. Shah & Co. For Gujarat Terce Laboratories Limited
Chartered Accountants
Firm Registration No.: 0112630W
Pramesh Doshi, FCA Natwarbhai P Prajapati Aalap N Prajapati
Partner Chairman Managing Director &
Membership No.: 045319 DIN: 00031187 Chief Executive Officer (CEO)
DIN:08088327
Place: Anand Bhagirath Maurya CS Ripal S Sukhadiya
Date: 26 May 2025 Chief Finance Officer (CFO) Company Secretary
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