G) Provisions & Contingencies -
I) Provision - A provision is recognised for a present obligation (legal or constructive) as a result of past events if it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and in respect of which a reliable estimate can be made. The amount recognized as provisions are determined based on best estimate of the amount required to settle the obligation at the balance sheet date. These estimates are reviewed at each balance sheet date and adjusted to reflect the current best estimate.
II) Contingent liability - A contingent liability is a possible obligation that arises from the past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that can not be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.
III) Contingent Assets - Contingent asset is not recognised in financial statements since this may result in the recognition of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognised.
H) Foreign Exchange & Losses - Foreign currency transactions are recorded at the rates of exchange prevailing on the date of transaction. Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.
Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year or reported in previous financial statements, are recognised as income or expense in the year in
which they arise.
I) Revenue Recognition -The Company earns revenue primarily by sale of packaging items. Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those products or services.
The Company has applied Ind AS 115 which establishes a comprehensive framework for determining whether, how much and when revenue is to be recognised. Ind AS 115 replaces Ind AS 18 Revenue and Ind AS 11 Construction Contracts. The Company has adopted Ind AS 115 using the cumulative effect method. The effect of initially applying this standard is recognised at the date of initial application (i.e. April 1,2018). The standard is applied retrospectively only to contracts that are not completed as at the date of initial application and the comparative information in the statement of profit and loss is not restated - i.e. the comparative information continues to be reported under Ind AS 18 and Ind AS 11. The impact of the adoption of the standard on the financial statements of the Company is insignificant.
Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, service level credits, performance bonuses, price concessions and incentives, if any, as specified in the contract with the customer. Revenue also excludes taxes collected from customers.
J) Interest Income- Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.
K) Other Income - Income are accounted for on accrual basis and accordingly company follows the Mercantile System of Accounting. Claims / refunds not ascertainable with reasonable certainty are accounted for on settlement basis.
L) Expenditure - Expenses are accounted on accrual basis. Further Prior period items are accounted under exceptional items as per Ind AS 8 “Accounting policies, changes in estimates and errors”.
M) Retirement and other employee benefits -
a) Defined contribution plan - Employee benefits in the form of contribution to Provident Fund managed by Government Authorities and Employees State Insurance Corporation are considered as defined contribution plans and the same are charged to the statement of profit and loss for the year in which the employee renders the related service.
b) Defined benefit plan -The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plan is the present value of defined benefit obligations at the end of the reporting period less fair value of expected plan assets. The defined benefit obligation is calculated annually by actuaries through actuarial valuation using the projected unit credit method.
The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:
i) Service costs comprising current service costs, past-service costs, gains and losses on curtailments and nonroutine settlements; and
ii) Net interest expense or income
Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling (if any), and the return on plan assets (excluding net interest), are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss in
subsequent periods.
c) Short term employee benefits - The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services.
Further accumulated compensated absences, which are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service, are treated as short term employee benefits. The Company does not recognize the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date; they are to be accounted for on cash basis. Thus its effect on Profit and Loss of the company is not determined.
d) Other long-term employee benefits - There is no such other long term employees benefit for which actuarial valuation is required. Hence no actuarial gain or loss is booked in statement of profit or loss.
e) Termination Benefit - Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Company recognizes termination benefits at the earlier of the following dates:
i) When the Company can no longer withdraw the offer of those benefits; and
ii) When the Company recognizes costs for a restructuring that is within the scope of Ind AS 37 and Involves the payment of termination benefits.
N) Borrowing Cost- Borrowing cost directly attributable to acquisition and construction of assets that necessarily takes substantial period of time to get ready for their intended use or sale are capitalised as part of the cost of such assets up to the date when such assets are ready for intended use or sale. All other borrowing costs are expensed in the period in which they occur. Borrowing cost consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.
O) Taxation - Income tax expense comprises current tax and deferred tax. Income tax expense is recognised in the statement of Profit and Loss except when they relate to items that are recognised outside profit and loss (whether in other comprehensive income or directly in equity), in which case tax is also recognised outside profit and loss. Current income taxes are determined based on respective taxable income of each taxable entity.
Deferred tax assets and liabilities are recognised for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases, and unutilised business loss and depreciation carry-forwards and tax credits. Such deferred tax assets and liabilities are computed separately for each taxable entity. Deferred tax assets are recognised to the extent that it is probable that future taxable income will be available against which the deductible temporary differences, unused tax losses, depreciation carryforwards and unused tax credits could be utilised.
Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Current and deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.
P) 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 assets, the Company assesses whether:
(i) The contact involves the use of an identified asset;
(ii) The Company has avail 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.
As a lessee, the Company should recognizes a right-of-use asset and a lease liability at the lease commencement date. The right of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right of- use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurement of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. Lease payments included in the measurement of the lease liability comprise the fixed payments, including in-substance fixed payments; the lease liability is measured at amortised cost using the effective interest method.
The company has used number of practical expedients while applying Ind AS 116: - Short-term leases, leases of low-value assets and single discount rate. The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The company has entered into a lease agreement with MPAKVN Limited, for factory Land at Pithampur, Indore (M.P.). The company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term as the lease payment is of very low -value.
The company has paid the upfront lease premium at the time of execution of the lease deed which is being amortizing over the period of lease term determined by the company under Ind AS 17,the same assessment of lease term would be acceptable under Ind AS 116. The amortisation of lease premium is as per Ind AS 116 as the company neither have purchase option of the factory land at the expiry of the lease term nor the title will be transfer in the name of the company at the end of lease term.
Q) Government grants and subsidies - Grants and subsidies from the Government are recognised when there is reasonable assurance that the grant / subsidy will be received and all attaching conditions will be complied with.
Grant or subsidy relating to an asset is credited to the respective Property Plant & Equipment by the company which is in line with Ind AS 20 “Accounting for government grants & disclosure of government assistance”.
R) Related Party Transactions - Transactions entered by the company with the related parties, has been disclosed by way of notes as defined under Ind AS 24 “Related Party Disclosures”. (Refer Note-34)
S) Earning Per Share - As per Ind AS 33 “Earning per Share”, Basic earnings per share are calculated by dividing the net
profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Basic earnings per share is Rs3.07 per share as compared to Rs 3.06 per share in previous year.
Diluted earnings per share are computed by dividing the profit after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on conversion of all dilutive potential equity shares. Diluted earning per share is Rs.3.07 per share as compared to Rs.3.06per share in previous year.
T) Classification of current / non-current assets and liabilities - All assets and liabilities are presented as current or noncurrent as per the Company’s normal operating cycle and other criteria set out in Schedule III of the Companies Act, 2013 and Ind AS 1 “Presentation of financial statements”. Based on the nature of products and the time between the acquisition of assets for processing and their realisation, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.
U) Significant estimates and assumptions - The preparation of the Company’s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year relate primarily to defined benefit obligations, useful life of property, plant and equipment, revenue recognition, fair value measurement of financial instruments at the end of the reporting period.'
I) Defined benefit obligations - The cost of defined benefit gratuity plans is determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the long-term nature of these plans, such estimates are subject to significant uncertainty.
II) Useful life of property, plant and equipment- The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value. Increasing an asset’s expected life or its residual value would result in a reduced depreciation charge in the Statement of profit and loss. The useful lives of the Company’s assets are determined by management at the time the asset is acquired and reviewed at least annually for appropriateness. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.
The estimated useful lives are as mentioned below:
Type of asset Useful Lives
Buildings 30 years
Leasehold Improvement Lease term
Plant & Machinery 15 years
Computer Equipment 3 years
Furniture & Fixtures 10 years
Office Equipments 5 years
Electrical Installation 10 years
Vehicles 8 years
III) Revenue recognition - Company provides various discounts, allowances and rebates to the customers. The methodology and assumptions used to estimate rebates and returns are monitored and adjusted regularly in the light of contractual and legal obligations, historical trends, past experience and projected market conditions.
IV) Classification of legal matters and tax litigation - The litigation and claims to which the Company is exposed to, are assessed by management with assistance of the legal department and in certain cases with the support of external specialized lawyers. Disclosures related to such provisions, as well as contingent liabilities, also require judgment and estimations if any. (Refer Note-38)
V) Events after the reporting period - Events after the reporting period are those events, favorable and unfavorable, that occur between the end of the reporting period and the date when the financial statements are approved by the Board of Directors. These events can be classified as :
i) Adjusting Events those that provide evidence of conditions that existed at the end of the reporting period.
There are no such events after the reporting period for the company.
Note No : 15A
1) Securites provided towards secured loans;
i) Term Loan of HDFC Bank Rs. 6000 thousands. Installments falling due in respect of the above loan upto 31.03.2024 have been grouped under "Short term Borrowings' (Refer Note no.16)
ii) Term Loan from HDFC Bank of Rs. 2000 thousands is availed for purchase of Plant & Machineries in Sep-18. Installments falling due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings' (Refer Note no.16)
iii) Term Loan of Rs. 17,88 thousand payable in 60 monthly installments of Rs. 36,640/-(including interest) commencing from 05/02/2018. Installments falling due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings' (Refer Note no.16)
iv) Car Loan Has been taken by the company in FY 20-21 for rs 1150 thousand , installment falling due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings' (Refer Note no.16)
v) Term Loan From HDFC Bank of Rs 4150 Thousands obtained for to augment Working Capital requirement to enable business unit to meet operating liabilities. In 36 Monthly Installments of Rs 130525/- (including interest) Commencing From 07/07/2021. Installments Falling Due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings' (Refer Note no.16)
vi) Term Loan From HDFC Bank of Rs 3100 Thousands obtained to augment Working Capital requirement to enable business unit to meet operating liablities. In 36 Monthly Installments of Rs 97501/- (including interest) Commencing From 07/07/2021. Installments Falling Due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings' (Refer Note no.16)
vii) Term Loan From HDFC Bank of Rs 19825.422 Thousands obtained to augment Working Capital requirement to enable business unit to meet operating liabilities. In 60 Monthly Installments of Rs 399867/- (including interest) Commencing From 07/12/2021.Addition to this Rs 8608.125 Thousand Disbursed by the Bank in June 2022. with an additional in installment repayment of rs 191302/-( Including Interest). Total value of Loan disburesed is 28433.54 & monthly installment will be Rs 591169/- (Including interest). Installments Falling Due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings' (Refer Note no.16)
viii) Term Loan From HDFC Bank of Rs 14955.04 Thousands obtained for New Property Purchase for Expansion of production and factory unit. Repayment is In 50 Monthly Installments of Rs 304146/- (including interest) Commencing
From 07/12/2021. Installments Falling Due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings' (Refer Note no.16)
ix) Term Loan From Bank of Baroda of Rs 97700 Thousands obtained for New Property Purchase for Expansion of production and factory unit. Moratorium Period is 13 Month afterwards Repayment is In 71 Monthly installment comprises in 12 Monthly Installments of Rs 1000/- (including interest) Next 48 monthly installement of Rs 1400/-Thousand ( including Interest) Next 11 monthly installment of Rs 1700/-Thousand Commencing From 01/04/2025. ( Out of Sanctioned Limit of 97700 Till 31.03.2024 Disbursement taken for Rs 71608 Thousand)
(x) Term Loan From HDFC Bank of Rs 180000 Thousands obtained for Expansion of production and factory unit. Out of Sanctioned amount till 31.03.2024 Disbursement Taken of Rs 11792 Thousand Repayment Repayment will be Start after serving Mortorium period of 12 months
xi) Primary Security - Term Loan is secured by way of Hypothecation of Plant & Machineries and other imovable fixed assets other than factory land and building, both present & future, Collateral Security - TL and CC Limit is secured by Equitable Mortgage of leasehold factory Land & Building at Pithampur.
xii) Personal Guarantee - TL and CC Limit is secured by Personal Guarantee of Mr. Arpit Bangur, Chairman cum Director and Mr Anand Bangur
xiii) Corporate Guarantee - TL and CC Limit is secured by Corporate Guarantee of M/s Sushen Remedies Pvt. Ltd.
2) Terms of Repayment of Secured Loans;
i) Term Loan of Rs. 6000 th. was repayable in 72 monthly intallments of Rs. 111.46 th. However, due to the moratorium period of 3 months availed during the month of Apr to June-20 (3 Months) due to the COVID-19 Pandemic, the repayment will be extended for 3 months and will last in the month of Nov-24. The availement of 3 months moratorium will cost extra Rs. 100.20 thousand to the company in terms of interest. Period of 9 months is considered out of next 12 months to determine the current liabilities towards term loan.
ii) Term Loan of Rs. 2000 th. was repayable in 60 monthly intallments of Rs. 42.59 th. However, due to the moratorium period of 3 months availed during the month of Apr to June-20 (3 Months) due to the COVID-19 Pandemic, the repayment will be extended for 3 months and will last in the month of Feb-24. The availement of 3 months moratorium will cost extra Rs. 23.24 thousand to the company in terms of interest. Period of 9 months is considered out of next 12 months to determine the current liabilities towards term loan.
iii) Term Loan of Rs. 17,88 thousand payable in 60 monthly installments of Rs. 36,640/-(including interest) commencing from 05/02/2018. Installments falling due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings' (Refer Note no.16)
iv) Car Loan Has been taken by the company in FY 20-21 for rs 1150 thousand , installment falling due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings' (Refer Note no.16)
v) Term Loan From HDFC Bank of Rs 4150 Thousands Payable In 36 Monthly Installments of Rs 130525/- (including interest) Commencing From 07/07/2021. Installments Falling Due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings'(Refer Note no.16)
vi) Term Loan From HDFC Bank of Rs 3100 Thousands Payable In 36 Monthly Installments of Rs 97501/- (including interest) Commencing From 07/07/2021. Installments Falling Due in respect of the above loan upto 31.03.2024 have been grouped under "Short Term Borrowings' (Refer Note no.16)
vii) Term Loan From HDFC Bank of Rs 19825.422 Thousands Payable In 60 Monthly Installments of Rs 399867/- (including interest) Commencing From 07/12/2021. Addition to this Rs 8608.125 Thousand Disbursed by the Bank in June 2022. with an additional in installment repayment of rs 191302/-( Including Interest). Total value of Loan disbursed is 28433.54
37- A Beneficiaries disclosures
a) 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, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
b) No funds have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
38. Contingent Liability and Capital Commitments:
a) Direct tax (Income Tax)
For AY 2018-19, Assessment order U/s 143(3) was issued by ACIT, Income Tax, Central, Ujjain on 05.04.2021 making addition of Rs.3570.83 Thousand The said order was appealed to CIT (A) on 24.04.2021.
b) Indirect Tax -
IGST -Tax and Penalty demand was imposed of Rs. 165.25 thousand by the SGST authority while detaining the vehicle in transit in the month of Nov-18 and found that the E-way bill on the basis of which transportation is done found expired on the moment. The company has filed an appeal with State Commissioner (Appeals), Indore and deposited total tax demand and penalty.
c) Company’s Capital Commitments for the year is Rs.268000 Thousand.
39. Other Disclosures:
a) Accounts statements of in-operative bank accounts held in the name of the company are notavailable hence balances in such accounts are subject to confirmation.
b) Balances of trade receivables, trade payables and loans & advances are subject to confirmation.
c) GST Credits and inputs are subject to reconciliation. The Concerned Statutory Form with respective department were file as and when due for filing.
d) Relationship with Struck off Companies - The Company does not have any transactions or relationships with any companies struck off under Section 248 of the Companies Act, 2013.
e) The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.
f) No proceedings have been initiated during the year or are pending against the Company as at March 31,2024 for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made there under.
g) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.
h) There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 which have not been recorded in the books of account.
i) The Company has not traded or invested in Virtual Currency.
j) The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of accounts, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of accounts along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
k) Company not falls under the provision of section 135 Of the companies Act, 2013 i.e. CSR Provision
l) Previous year figures have been rearranged / regrouped where ever necessary to conform to current year’s classification.
As per our report on even date For and on behalf of Board of Directors
For V.K.Ladha & Associates For Raaj Medisafe India Limited
Chartered Accountants Firm Regn. No. 002301C
Sd/- Sd/- Sd/-
Arpit Bangur R. K. Gupta Navin Jhawar
Chairman Chairman - Audit Committee Managing Director
(DIN-02600716) (DIN-00774786) (DIN-08729821)
Sd/- Sd/- Sd/- Sd/- Sd/-
CA. V. K. Ladha V.K. Sood Rakesh Agarwal CA Ankita Jain CS Sachin Sarda
Membership No 071501 Director Director Chief Financial Officer Company Secretary
UDIN:24071501BKFQHI5340 (DIN-02612644) (DIN-09675176) (M.No.426121) (M. No.20930)
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