Provisions, contingent liabilities and contingent assets - The Company is the subject of legal proceedings and tax issues covering a range of matters, which are pending in various jurisdictions. In view of the uncertainty inherent in such matters, it is difficult to predict the final outcome of such matters. The cases and claims against the Company often raise difficult and complex factual and legal issues, which are subject to many uncertainties, including but not limited to the facts and circumstances of each particular case and claim, the jurisdiction and the differences in applicable law. In the normal course of business, management consults with legal counsel and certain other experts on matters related to litigation and taxes. The Company accrues a liability when it is determined that an adverse outcome is probable and the amount of the loss can be reasonably estimated.
Impairment of financial assets - At each balance sheet date, based on historical default rates observed over expected life, the management assesses the expected credit loss on outstanding financial assets.
Evaluation of indicators for impairment of assets - The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets.
Estimates
Useful lives of depreciable/amortisable assets - Management reviews its estimate of the useful lives of depreciable/amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of certain software, IT equipment and other plant and equipment.
Defined benefit obligation - Management's estimate of the Defined Benefit Obligations (DBO) is based on a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.
Fair value measurements
Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available). This involves developing estimates and assumptions consistent with how market participants would price the instrument.
1.5 New and amended standards
The Company has applied the following amendments for the first time for their annual reporting period commencing 1 April 2023: Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
The amendments to Ind AS 8 clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting estimates.
The amendments had no impact on the Company's standalone financial statements.
Ind AS 1 - Presentation of Financial Statements
The amendments to Ind AS 1 provide guidance on applying materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their 'significant' accounting policies with a requirement to disclose their 'material' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.
The amendments have had an impact on the Company's disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company's financial statements.
Ind AS 12 - Income Taxes
The amendments to Ind AS 12 Income Tax narrow the scope of the initial recognition exception, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases. The above amendments did not have any material impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.
1.6 Recent accounting pronouncements (Standard issued but not yet effective):
The Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31,2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
Notes :
i) Includes income tax demand of '162.22 million in respect to Assessment Year 2005-06. The Income Tax Department had issued alleged demand based on certain grounds related to purchases made by the Company from an overseas vendor. The matter was decided in favour of the Company and the demand was cancelled by Commissioner of Income Tax (Appeals) ("CIT (Appeals)"). However, the Income Tax Department has filed an appeal before Income Tax Appellate Tribunal (ITAT) against the order of CIT (Appeals) which is pending at present. The Company believes that it has merit in this case, hence no provision is required.
ii) A search operation was conducted by the Income Tax Department in the premises of the Company in January 2012 and hence the Company had re-filed the income tax returns for the Assessment Year 2006-07 to 2012-13. During the year ended March 31,2015, the Income Tax Department completed the assessment of the said years, disallowed certain expenses and issued demand of '3,294.90 million (including interest) on various grounds. The Company preferred appeals before the CIT (Appeals) against the orders of the Income Tax Department. The appeals were decided in favour of the Company and the demand was cancelled. However, CIT (Appeals) has made certain disallowances with respect to Assessment Year 2010-11 and 2011-12 against which the Company has filed appeals before the Income Tax Appellate Tribunal (ITAT). The Income Tax Department has also filed appeals before ITAT against the orders of CIT (Appeals). The appeals before ITAT are pending at present. Based on legal advice, the Company believes that it has merits in these cases, hence no provision is required.
iii) The Income Tax Department had raised a demand of '33.69 million in respect of Assessment Year 2016-17 based on transfer pricing order passed by Dispute Resolution Panel. The alleged demand was raised on purchase of certain goods by the Company from its associated enterprise wherein, according to Income Tax Department, arms' length price adjustment was warranted. The company filed appeal before Income Tax Appellate Tribunal against the order passed by the Income Tax Department. During financial year 2023-24, the said appeal has been decided in favour of the Company.
iv) The Income Tax Department has levied a penalty of '0.40 million in respect of Assessment Year 2017-18 on account of additions made in assessment order passed for the said year. The company has filed an appeal before CIT (Appeals) against the order passed by the Income Tax Department. The Company believes that it has merits in this case, hence no provision is required.
v) The Income Tax Department had raised a demand of '2,620.80 million in respect of Assessment Year 2020-21. The alleged demand was raised due to wrong addition of contingent liability not provided for, set-off of business losses not allowed and increase in other income due to set-off of business losses not allowed. The company filed an appeal before CIT (Appeals) and rectification application before assessing officer against the order passed by the Income Tax Department. During the financial year 2023-24, while the said appeal was under consideration, in the meantime the assessing officer has passed rectification order in favour of the Company and reduced the said tax demand to '91.63 million. The Company believes that it has merits in this case, hence no provision is required.
vi) The Income Tax Department has raised a demand of '0.90 million in respect of Assessment Year 2018-19 on the ground of non-deduction of withholding tax on certain foreign remittances made by the company during the year. The company has filed an appeal before CIT (Appeals) against the order passed by the Income Tax Department. The Company believes that it has merits in this case, hence no provision is required.
vii) In respect of Sales tax / VAT demands for Chennai, Kolkata, Patna and Pune the matters have been settled in favour of the Company. In respect of GST demand for Kochi, the Company has filed an appeal with GST Tribunal and the matter is pending there. Service Tax, Excise and Custom Duty litigations are pending with various authorities. The Company believes that it has merit in these cases and hence no provision is required.
viii) The Company had manufactured and offered supply of certain vaccines which were manufactured against the confirmed order received from the Ministry of Health and Family Welfare ("MOHFW"), Govt. of India. Some quantities of vaccines were supplied during December 2011, the balance could not be supplied in view of disputes with respect to delivery dates and in the meantime the stock of such vaccines amounting to '74.10 million expired. Further, the Company had also received an advance market commitment ("AMC") amounting to '100.00 million against these vaccines. The refund of the advance so received (after adjusting the amount receivable against the vaccines already supplied) was demanded back by MOHFW along with interest on account of non-supply of balance quantities of vaccines. In view of above disputes, the Company obtained a stay order from the Hon'ble Delhi High Court against recovery of said amount, till the disputes are finally resolved through arbitration. The arbitration award was pronounced in favour of the Company on March 14, 2019, vide which MOHFW was directed to pay the applicable amount for vaccine supplied / offered for supply along with interest. MOHFW filed an appeal before Hon'ble Delhi High Court raising certain objections against the award, which was dismissed by the Hon'ble Court. MOHFW filed an appeal against such order before the Division Bench of the Hon'ble Delhi High Court which was also rejected. MOHFW has filed a Special Leave Petition against such order before the Hon'ble Supreme Court of India. The Company's application for execution of award is currently pending before the Hon'ble Delhi High Court. The Company believes that it has merits in this case and the outcome of this matter will not have any material adverse impact on the financial position of the Company.
ix) In October 2023, the Company received notice from the International Court of Arbitration, Paris (“ICC”) intimating commencement of an Arbitration proceeding pursuant to the request filed by Apotex Inc., claiming an amount of US$ 118.14 million towards outsized alleged losses plus interest thereon under the Collaboration Agreement dated May 09, 2014 entered into between Apotex Inc. and the Company. The said agreement was subsequently assigned and novated in favour of Panacea Biotec Pharma Limited ("PBPL") wholly owned subsidiary of the Company. The Company submitted its response to the notice of arbitration rebutting the claims raised by Apotex citing novation of the said agreement in favour of PBPL. Apotex subsequently filed request for Joinder of PBPL in the said arbitration proceedings raising the claim against the Company and PBPL aggregating to US$ 163.24 million, which has been objected by the Company as well as PBPL. The management believes that the Company and / or PBPL is not in breach of its obligations and the claims filed by Apotex are frivolous, unsubstantiated, premised on fundamental factual misstatements and incorrect legal assumptions regarding the Collaboration Agreement and contrary to the overwhelming facts and evidence. Currently both sides have appointed their respective arbitrators and they have nominated the third arbitrator who would act as the President of the arbitration tribunal. Based on the legal opinion obtained and assessment of aforesaid matter, the management is of the view that no material liability is expected to arise on the Company and / or PBPL on account of aforesaid claims.
PBPL has also filed a request for arbitration before ICC with respect to dispute with Apotex raising a claim of US$ 9.90 million towards PBPL's share of profit from sale of authorized generic products sold by Apotex during financial year 2022-23 in USA under the terms of the said Collaboration Agreement and the settlement agreement signed among the Parties including the innovator company. The said matter is also under consideration at ICC.
x) In March 2024, the Company received summons from Asst. Commissioner of State Tax, Mumbai, Maharashtra to enquire if the Company has paid GST on sale of the leasehold land and building at Navi Mumbai to Mankind Pharma Ltd. in March 2022. The Company's officials attended the proceedings and clarified that the GST in not applicable as the said transaction is covered under Schedule III to CGST / MGST Act. However, following persistent follow up by the GST authorities, the Company has deposited an amount of '31.42 million under protest. The Company is in the process of filing writ petition before the Hon'ble High Court of Judicature at Bombay against the said proceedings. The GST authorities are yet to assess the tax demand on this matter. The management believes that the Company has merit in its case and the outcome of this matter will not have any material adverse impact on the financial position of the Company. Accordingly, the Company has not made any provisions in respect of this matter.
xi) During financial year 2024-25, the Company has initiated settlement process in respect of the old labour cases in respect of manufacturing site at Lalru, Punjab and has recognised an amount of '42.80 million as the compensation payable in respect of these cases, out of which '12.69 million has been paid as on March 31,2024 and the balance amount has been included as a liability in the financial statements. In view of large number of cases, it is impracticable to disclose each case.
xii) The Company has received notices from various authorities seeking information mentioned in the said notices. In view of the management these notices may not have any financial liability on the Company.
(B) Capital and other commitments
Estimated amount of contracts remaining to be executed on capital account, net of advances and not provided in the books are as follows:
38. Leases
Company as a lessee:
The Company does not have any long-term non cancellable leases as at March 31, 2024 (March 31, 2023: Nil). As on April 1, 2019, leasehold land has been transferred to Right of Use ("RoU") asset. Refer note 2.1 for details. Lease payments with respect to short term lease amounts to '20.18 million (March 31,2023: '19.39 million) which has not been included in the measurement of lease liability.
Company as a lessor:
Operating leases
The Company has entered into operating leases on its investment property portfolio consisting of certain offices, guest house, warehouse, manufacturing buildings etc. These leases generally have term of 11 months. All leases generally include a clause for upward revision of the lease rental by 5% on an annual basis according to prevailing market conditions. Rental income recognised by the Company from above said lease agreements is '47.02 million (March 31,2023: '27.74 million).
Risk management framework
The Company's activities expose it to market risk, liquidity risk and credit risk. The management has the overall responsibility for the establishment and oversight of the Company's risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the Financial Statements.
A. Credit risk
Credit risk is the risk that a counter party fails to discharge its obligation to the Company. The Company's exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost. The Company continuously monitors defaults of customers and other counter parties and incorporates this information into its credit risk controls.
A.1 Credit risk management
The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets:
A: Low credit risk on financial reporting date B: Moderate credit risk C: High credit risk
Cash and cash equivalents and bank deposits: Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.
Trade receivables: Credit risk related to trade receivables are mitigated by taking bank guarantees/letter of credit, from customers where credit risk is high. The Company closely monitors the credit-worthiness of the debtors through internal systems that are configured to define credit limits of customers, thereby limiting the credit risk to pre-calculated amounts. The Company assesses increase in credit risk on an ongoing basis for amounts receivable that become past due and default is considered to have occurred when amounts receivable become two year past due.
Other financial assets measured at amortised cost: Other financial assets measured at amortized cost includes, security deposits and other Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously.
A.2 Expected credit losses for financial assets other than trade receivables
The Company provides for expected credit losses on loans and advances other than trade receivables by assessing individual financial instruments for expectation of any credit losses. Since the Company deals with only high-rated banks and financial institutions, credit risk in respect of cash and cash equivalents, other bank balances and bank deposits is evaluated as very low. In respect of loans, comprising of security deposits, credit risk is considered low because the Company is in possession of the underlying asset. However, in respect of loans comprising loans to related parties, credit risk is evaluated on the basis of credit worthiness of those parties and loss allowance is measured as lifetime expected credit losses. In respect of other financial assets, credit risk is evaluated based on Company's knowledge of the credit worthiness of those parties and loss allowance is measured as lifetime expected credit losses. The Company does not have any expected loss based impairment recognised (except in case of loans to related parties) on such assets considering their low credit risk nature, though incurred loss provisions are disclosed under each sub-category of such financial assets.
B. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due. The Company manages its liquidity needs by carefully monitoring scheduled debt servicing payments for long-term financial liabilities as well as cash outflows due in day-to-day business. Long-term liquidity needs for a 180-day and a 360-day lookout period are identified monthly.
Management monitors rolling forecasts of the liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.
B.1 Contractual maturities of financial liabilities
The tables below analyse the Company's financial liabilities based on their contractual maturities. The amounts disclosed in the table are the contractual undiscounted cash flows.
C. Market risk
(I) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rate related primarily to the Company's non-current and current debt obligations financed with fixed interest rate. The Company always try to ensure minimum cash outlfows. The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment, showing a significantly higher volatility. Accordingly, the Company is not exposed to fluctuations in interest rate risk on borrowings.
(II) Foreign currency risk
The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the United State Dollar (USD), Euro, Swiss Frank (CHF), Pound Sterling (GBP) and Swedish Krona (SEK). Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the functional currency of the Company. The Company does not use any derivative instruments to manage its exposure. Also, the Company does not use forward contracts and swaps for speculative purposes.
The Company's capital management objectives are to ensure the Company's ability to continue as a going concern as well as to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.
The Company monitors capital on the basis of the carrying amount of equity plus its subordinated loan, less cash and cash equivalents as presented on the face of the statement of financial position recognised in other comprehensive income.
The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares. The Company is not subject to any externally imposed capital requirements. The amounts managed as capital by the Company are summarised as follows:
47. The Board of Directors of the Company and Panacea Biotec Pharma Limited ("PBPL") in their respective meetings held on February 01,2022, approved sale of PBPL's pharmaceutical formulations brands in India and Nepal including related trademarks, copyrights etc., including identified employees to Mankind Pharma Limited (the "Buyer”) for a consideration of '18,720.00 million plus applicable taxes. The said transaction was approved by the shareholders of PBPL and the Company in their respective meetings held on February 23, 2022 and February 26, 2022 respectively. Subsequently, the Company and PBPL signed the definitive agreements including the asset purchase agreement with the Buyer on February 28, 2022. Out of the total consideration, PBPL has recognised revenue of '360.34 million (March 31,2023: '1,026.61 million) which is shown as an "Exceptional Item” in the Statement of Profit and Loss of PBPL and Consolidated Statement of Profit and Loss of the Group. The remaining consideration of '570.99 million (March 31,2023: '931.33 million) would be recognised as revenue in subsequent years and is shown as Contract Liability in the Financial Statements of PBPL and Consolidated Financial Statements of the Group.
48. For the financial year ended March 31,2024, the Company has earned a profit (before tax and exceptional items) of '42.06 million (year ended March 31, 2023: loss of '627.52 million). The Company has already taken various measures aimed at improving the financial condition of the Company, inter-alia, sale of pharmaceutical brands, as explained in Note 47 above, which enabled the Group to repay its outstanding dues of Non-Convertible Debenture (NCDs) and retain sufficient surplus to fund its existing projects and operations and also help the Group to enter new market and expediting development of new products. The surplus funds with the Group has also strengthened the working capital position and has helped/ will help scaling up its pharmaceutical formulations business in international markets including ROW countries, USA / EU, etc. and to pursue other business opportunities. The Company has already received higher long-term awards from UNICEF and PAHO for supply of pentavalent vaccine to these institutions. Based on these measures and continuous efforts to improve the business performance, the management has prepared the financial statements on going concern basis.
49. (a) In view of the Company's decision to make the structure of overseas subsidiaries more efficient and aligned to business objectives and to
save management and administrative expenses thereof, the Company has decided to wind up Panacea Biotec (International) SA ("PBS”) in due course. Accordingly, the Company has created 'Provision for impairment on its investment in PBS. Owing to accumulated losses in PBS and its wholly-owned subsidiary, Panacea Biotec Germany GmbH (PBGG), the Company has continued to maintain the provision for bad and doubtful advances in respect of the loans receivable and accrued interest from PBS and PBGG also amounting to '123.48 million and '407.67 million, respectively, as on March 31, 2024 (March 31,2023: '96.78 million and '319.42 million, respectively).
(b) The Company has applied with the authorized dealer to seek permission from Reserve Bank of India for writing off an amount of '585.16 million which was receivable from the Company's wholly owned subsidiary Rees Investments Ltd. ("Rees"), which was compulsorily liquidated and dissolved by the authorities of Guernsey on May 23, 2019. Pending such approval, the Company is continuing to maintain it the provision for bad and doubtful advances of '585.16 million (March 31,2023: '585.16 million) in respect of the loan and accrued interest receivable from Rees.
50. Under the collaboration with the Limited Liability Company "Human Vaccine” ("HV"), an indirect wholly-owned subsidiary of Joint Stock Company "Management Company of Russian Direct Investment Fund” for manufacture of Covid-19 vaccine using the technology to be provided by HV, the Company had received from HV an advance amount of US$ 7.00 million in november 2020, out of which ~US$ 6.58 million was used to meet the expenses relating to Sputnik-V and Sputnik Light vaccine project. Due to the failure on the part of HV to demonstrate and transfer the technology and certain other reasons beyond the control of the Company, the complex process of technology transfer and manufacture of Sputnik-V vaccine could not be completed successfully and the contract stood frustrated and accordingly both the parties stood automatically discharged from their contract by operation of law. In view of the fact that the Company has already incurred huge expenses on the said project and also received the advance from Human vaccine, it has been decided to adjust the said advance against such expenses. The Company has already conveyed its decision to HV and provided relevant details / documents pertaining to the said expenses. During financial year 2023-24, there is no further update on this matter. The Company has received legal advice from its counsel and believes that it will not be liable to pay back the amount adjusted towards expenses under dispute with HV.
51. In August 2021, the Company had entered into a Licensing and Manufacture Agreement with Limited Liability Company 'Human Vaccine' ("HV"), Joint Stock Company 'Generium' ("Generium") and Dr. Reddy's Laboratories Limited ("DRL"). As per the terms of the agreement, the Company was to undertake fill-and-finish activities of Sputnik-V vaccine using the ready-to-fill drug substance supplied by Generium and supply the Sputnik-V vaccine so produced to DRL. Pursuant to the said agreement, the Company received Drug Substance from Generium and produced around ~1.96 million doses of Sputnik-V vaccine out of which DRL purchased ~0.86 million doses only and refused to purchase and pay for the remaining ~1.10 million doses. Because of breach of their respective obligations by DRL and Generium, the pending payment of ~US$ 7.41 million for the drug substance received from Generium could not be made. After several rounds of discussion among the parties to settle the dispute amicably, Generium has filed a request for arbitration with Singapore International Arbitration Centre (SIAC) for arbitration of dispute with respect to the said pending payment and interest thereon totalling ~US$ 8.90 million. Panacea Biotec has also initiated a parallel arbitration proceeding regarding its claims against DRL, Generium and HV and filed notice of arbitration with SIAC during the current financial year. At the Company's request, SIAC has clubbed both the arbitration proceedings together. The parties have appointed sole arbitrator. All the parties involved in the Arbitration have filed claims and counter claims against each other. The arbitration proceedings, including filing of pleadings, responses and counter responses is in progress. The Company has obtained legal opinion from its legal counsel who, considering the preliminary stage of the proceedings, have opined that (a) the Company has a reasonable defence against the claims brought by Generium, DRL and HV; and (b) the possibility of any such claim falling to the Company may be classified as low at this stage.
52. Additional regulatory information required by Schedule III under Companies Act 2013:
(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 does not have any transactions with stuck off companies.
(iii) The Company does not have any charges or satisfaction of charge which is yet to be registered with Registrar of Companies beyond the statutory period.
(iv) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
(v) The Company has not advanced or loaned to, or invested funds in, any other person(s) or entity(ies), including foreign entity(ies) (Intermediaries) with the understanding that the Intermediary shall:
- directly or indirectly lend to, 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 to or on behalf of the Ultimate Beneficiaries.
(vi) The Company has not received any funds from any other person(s) or entity(ies), including foreign entity(ies) (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
- directly or indirectly lend to, or invest in, other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party or
- provide any guarantee, security or the like to or on behalf of the Funding Party.
(vii) The Company has not entered into any transaction which is not recorded into 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 been declared as wilful defaulter by any bank or financial institution or other lender.
(ix) The Company has complied with the number of layers prescribed under Section 2(87) of the Act read with the Companies (Restriction on Number of Layers) Rules, 2017.
(x) No scheme of arrangements has been approved by the Competent Authority in term of sections 230 to 237 of the Companies Act, 2013, during the year.
(xi) The Company does not have any borrowings from banks or financial institutions against security of its current assets. xii) The title deeds of the immovable properties owned by the Company are held in the name of Company.
Notes:
a) No significant change (25% or more) in FY 2023-24 in comparison to FY 2022-23.
b) Due to Improvement in net operating profit.
c) Due to Profit during the year and subsequent increase in shareholder's fund.
d) Due to decline in average trade recievables.
e) Due to negative working capital.
f) Due to Improvement in net operating profit.
g) Due to improvement in profit before tax.
54. 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 account, 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 account along with the date when such changes were made and ensuring that the audit trail cannot be disabled. The Management has implemented the audit trail (edit logs) at the application level in accounting software from the beginning of the financial year and the same operated throughout the year. However, the audit trail (edit logs) has not been implemented at the database level for the accounting software.
The Company is evaluating the implementation of audit trail feature for recording of edit logs at database level for the accounting software used for maintenance of books of accounts.
55. In accordance with Ind AS 108, 'Operating Segments', the Company has disclosed the segment information in the consolidated financial statements. Accordingly, the segment information is given in the audited Consolidated Financial Statements of the Group for the year ended March 31,2024.
56. 0.00 under in million” represents amount less than ' 50,000 and 0.00 under units represents units less than 50,000. Further, the figures shown in the tables may not exactly add up due to rounding off. Previous year figures have been regrouped, reclassified wherever considered necessary. The impact of such reclassification / regrouping is not material to the financial statements.
57. There is no other subsequent events that occurred after reporting date.
The above notes form an integral part of the standalone financial statements.
As per our report of even date
For Walker Chandiok & Co LLP For and on behalf of Board of Directors of Panacea Biotec Limited
Chartered Accountants
Firm Registration No. 001076N/N500013
Sd/- Sd/- Sd/-
Arun Tandon Dr. Rajesh Jain Sandeep Jain
Partner Chairman and Managing Director Joint Managing Director
Membership No. 517273 (DIN 00013053) (DIN 00012973)
Sd/- Sd/-
Vinod Goel Devender Gupta
Place : New Delhi Group CFO and Head Legal Chief Financial Officer &
Date : May 30, 2024 & Company Secretary Head Information Technology
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