16 Provisions & contingent liabilities
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some
or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised
as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is
presented in the statement of profit and loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision
due to the passage of time is recognised as a finance cost.
Contingent liability arises when the Company has:
a) 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
b) a present obligation that arises from past events but is not recognised because:
(i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the
obligation; or
(ii) the amount of the obligation cannot be measured with sufficient reliability.
Contingent liabilities are not recorded in the financial statement but, rather, are disclosed in the note to the
financial statements.
17 Exceptional items
When items of income and expense within statement of profit and loss from ordinary activities are of such size,
nature or incidence that their disclosure is relevant to explain the performance of the enterprise for the period, the
nature and amount of such material items are disclosed separately as exceptional items.
18 The Ministry of Corporate Affairs (MCA) notified new Accounting Standards or amendments to the existing
standards. There is no such notification which would have been applicable from April 01,2020.
(B) Key accounting estimates
1 Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured
based on quoted prices in active markets, their fair value are measured using valuation techniques. The inputs to
these models are taken from observable markets where possible, but where this is not feasible, a degree of
judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity
risk, credit risk and volatility. Changes in assumptions relating to these factors could affect the reported fair value
of financial instruments. See Note 30 for further disclosures.
2 Impairment of non-financial assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount,
which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal
calculation is based on available data from binding sales transactions, conducted at arm's length, for similar assets
or observable market prices less incremental costs for disposing of the asset. The value in use calculation is
based on a discounted cashflow (DCF) model. The cash flows are derived from the budget and do not include
restructuring activities that the Company is not yet committed to or significant future investments that will enhance
the asset's performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used
for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation
purposes.
3 Taxes
Deferred tax assets are recognised for unused tax credits to the extent that it is probable that taxable profit will be
available against which the losses can be utilised. Significant management judgement is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable
profits together with future tax planning strategies.
4 Defined benefit plan
The cost of the defined benefit plans and other post-employment benefits and the present value of the obligation
are determined using actuarial valuations. 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, mortality rates and future pension increases. 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.
The parameter that is subject to change the most is the discount rate. In determining the appropriate discount rate,
the management considers the interest rates of government bonds in currencies consistent with the currencies of
the post-employment benefit obligation and extrapolated as needed along the yield curve to correspond with the
expected term of the defined benefit obligation.
The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at
intervals in response to demographic changes. Future salary increases are after considering the expected future
inflation rates for the country.
Refer note 31 for further details.
5 Property, Plant and Equipment
Refer to Note 3 (A) - 4 for the estimated useful life of Property, Plant and Equipment. The carrying values of
Property, plant and equipment have been disclosed in Note 4.
6 Intangible assets
Refer to Note 3 (A) - 6 for the estimated useful life of Intangible assets. The carrying values of Intangible assets
have been disclosed in Note 5.
7 Allowance for doubtful trade receivables
Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate
allowances for estimated irrecoverable amounts.
Estimated irrecoverable amounts are derived based on a provision matrix which takes into account various
factors such as customer specific risks, geographical region, product type, currency fluctuation risk, repatriation
policy of the country, country specific economic risks, customer rating, and type of customer, etc. Individual trade
receivables are written off when the management deems them not to be collectable.
I. Working Capital lerm Loan from Axis Bank Limited is secured against pari passu charge by way of mortgage of
land and building situated at Village- Chhatral, Taluka : Kalol, Dist Gandhinagar, and fixed-assets of the company
with other consortium bankers. Further it is also secured against pari pasu charge over entire current assets of
company (present & future) and by personal guarantee of the Managaing Director and CEO of the company. The
said loan is repayable in 48 monthly installments commencing from August, 2021. The said loan carries an interest
rate of 9.25 % p.a.
II. Working Capital Term Loan from Bank of India is secured against pari passu charge by way of mortgage of
company land and building situated at Village- Chhatral, Taluka : Kalol, Dist Gandhinagar, and fixed-assets of the
company with other consortium bankers.Further it is also secured against pari pasu charge over entire current
assets of company (present & future) and by personal guarantee of the Managaing Director and CEO of the
company The said loan is repayable in 36 monthly installments commencing from August, 2021. The said loan
carries an interest rate of 7.50 % p.a.
III. Working Capital Loans from the Axis Bank and Bank of India are secured against paripassu charge on current
assets (both present & future) and extension of paripassu charge by way of mortagage of company's land &
Building situated at Village - Chhatral, Taluka : Kalol, Dist Gandhinagar. Further the same are having collarteral
securities by way of pari passu charge over entrie moveable fixed- assets ( present & future) except sepecfily
financed by other finance company and are also secured against personal guarantee of Managing Director and
CEO of the company. Rate of Interest on the above loans is 9.25% p.a.
The Company's principal financial liabilities comprise of loans and borrowings, trade payables and other financial
liabilities. The loans and borrowings are primarily taken to finance and support the Company's operations. The
Company's principal financial assets include cash and cash equivalents, trade receivables and other financial
assets.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management
oversees the management of these risks. The Company's senior management ensures that financial risk
activities are governed by appropriate policies and procedures and that financial risks are identified, measured
and managed in accordance with the Company's policies and risk objectives. It is the Company's policy that
no trading in financial instruments for speculative purposes may be undertaken.
1. Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk
and other price risk, such as equity price risk or Net asset value(“NAV”) risk in case of investment in mutual
funds. Financial instruments affected by market risk include investments, trade receivables, trade payables,
loans and borrowings and deposits.
The sensitivity analysis in the following sections relate to the position as at March 31,2025 and as at March
31, 2024.
The sensitivity of the relevant profit and 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 March 31,2025 and as at March
31, 2024.
2 Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily
trade receivables) and from its financing activities, including deposits with banks and financial institutions and
foreign exchange transactions.
T rade receivables
Customer credit risk is managed by the Company's internal policies, procedures and control relating to customer
credit risk management. Credit quality of a customer is assessed based on an credit rating scorecard and credit
limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored
and any shipments to major customers are generally covered by letters of credit.
The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are
located in several jurisdictions and industries and operate in largely independent markets.
Trade receivables are non-interest bearing and are generally on 0 days to 60 days credit term. Credit limits are
established for all customers based on internal rating criteria. The Company has no concentration of credit risk as
the customer base is widely distributed both economically and geographically.
Cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company's treasury department
in accordance with the Company's policy. Investments of surplus funds are made only with approved counterparties
who meet the minimum threshold requirements under the counterparty risk assessment process. The Company
monitors the ratings, credit spreads and financial strength of its counterparties. Based on its on-going assessment
of counterparty risk, the group adjusts its exposure to various counterparties. The Company's maximum exposure
to credit risk for the components of the Balance sheet as of March 31,2025 and as at March 31, 2024 is the
carrying amount as disclosed in Note 8 and 11 except for financial guarantees. The Company's maximum
exposure for financial guarantee is given in Note 36.
3 Liquidity Risk
The Company monitors its risk of shortage of funds through using a liquidity planning process that encompasses
an analysis of projected cash inflow and outflow.
The Company's objective is to maintain a balance between continuity of funding and flexibility largely through
cashflow generation from its operating activities and the use of bank loans. The Company assessed the concentration
of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient
variety of sources of funding.
The table below summarises the maturity profile of the Company's financial liabilities (including future interest
payable) based on contractual undiscounted payments.
For the purpose of the Company's capital management, capital includes issued equity capital and all other equity
reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management
is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise
shareholder's value.
The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and
the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the
dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital
using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes, within net debt,
interest bearing loans and borrowings, trade and other payables, less cash and short-term deposits.
NOTE 39 : SEGMENT REPORTING
In the opinion of the management, there is only one reportable segment (“Manufacturing, and Sales of Transfusion
Solution in Bottles) as envisaged by Indian Accounting Standard 108 “Segment Reporting”. Further, from a geographical
segment perspective, export sales constitute less than 10% of enterprise revenues. Accordingly, no separate disclosure
for segment reporting is required to be made in the financial statements of the Company.
Note 42: Events occurred after balance sheet date:
The Board of Directors of the company has recommended a final dividend of Rs. 1.50 per equity share of face
value of Rs. 10/- each (15%)for the year ended March 31, 2025, subject to the approval of the members at
the ensuing annual general meeting.
Note 43: Code of social security, 2020
The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions
by the Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released
draft rules for the Code on Social Security, 2020 on November 13, 2020 and has invited suggestions from the
stakeholders which are under active consideration by the Ministry. The Company will assess the impact and
its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in
the period in which, the said code become effective including related rules framed thereunder to determine the
financial impact are published.
Note 44:
Previous year figures have been regrouped/reclassified wherever necessary to confirm to this year's classification.
Note 45 : Other Statutory Information
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.
(ii) The Company has not been declared wilful defaulter by any bank or financial institution or government or
any government authority.
(iii) The Company does not have any transaction with struck-off companies.
(iv) The Company does not have any charge or satisfaction which is yet to be registered with Registrar of
Companies (ROC) beyond the statutory period.
(v) 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.
(vi) 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.
(vii) The Company does not have any such transaction which is 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).
(viii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
Note-46
As per the requirements of Rule 3(1) of the Companies (Accounts) Rules 2014, the Company uses only such
accounting software for maintaining its books of account that has a feature of, recording the audit trail of each
and every transaction, creating an edit log of each change made in the books of account along with the date
when such changes were made and who made those changes within such accounting software. This feature
of recording audit trail has operated throughout the year and was not tampered with during the year. Additionally,
the audit trail has been preserved by the Company as per the statutory requirements for record retention.
Explanations/Justifications for variance in Ratios for more than 25% as compared to preceding financial
year:
(a) During the year under review there is no current maturity of the long term borrowings as the term loans
have been fully paid and interest on term loan has also reduced which improved the Debt Service Coverage
Ratio (DSCR) of the Company.
(b) During the year under review, on account of increase in input costs the margins have remained under
pressure which adversely impacted Return on Equity ratio, Net Profit Ratio and ratio of Return on capital
employed.
Note-48
The Financial statements are approved for issue by the Audit Committee and Board of Directors at their
respective meetings held on 30th May, 2025
As per our Report of even date For and on behalf of the Board of Directors
M/S. SHAH & SHAH ASSOCIATES
Chartered Armuntanta Mr. Dinesh B. Patel Dr. Himanshu C. Patel
FRN l’13742W f fS DIN : 00171089 DIN : 00087114
Chairman Managing Director
VASANT C. TANNA M Y'kram R; J°fhi
Partner Chief Financial Officer
Membership No. 100422 Ms. Anar H. Patel
Place : Ahmedabad Mrs. Anal Desai DIN : 01335025
Date : 30th May, 2025 Company Secretary Director
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