t Provisions, Contingent liabilities, Contingent assets and
Commitments:
(i) General:
The Company recognizes provisions for liabilities and
probable losses that have been incurred when it has a
present legal or constructive obligation as a result of past
events and it is probable that the Company will be required
to settle the obligation and a reliable estimate of the
amount of the obligation can be made. If the effect of the
time value of money is material, provisions are discounted
using a current pre-tax rate that reflects, where appropriate,
the risks specific to the liability. When discounting is used,
the increase in the provision due to the passage of time is
recognized as a financing cost.
Contingent liability is disclosed in the case of:
• A present obligation arising from past events, when it is not
probable that an outflow of resources will be required to
settle the obligation:
• A present obligation arising from past events, when no
reliable estimate is possible:
• A possible obligation arising from past events, unless the
probability of outflow of resources is remote.
Contingent assets are not recognized but disclosed in financial
statement when an inflow of economic benefits is probable.
Provisions, Contingent liabilities, Contingent assets and
Commitments are reviewed at each balance sheet date.
(ii) Other Litigation claims:
Provision for litigation related obligation represents liabilities
that are expected to materialize in respect of matters in
appeal.
(iii) Onerous contracts:
Provisions for onerous contracts are recorded in the
statements of operations when it becomes known that
the unavoidable costs of meeting the obligations under
the contract exceed the economic benefits expected to be
received.
u Financial statement classification:
Certain line items on the balance sheet and in the statement of
Profit and Loss have been combined. These items are disclosed
separately in the Notes to the financial statements. Certain
reclassifications have been made to the prior year presentation
to conform to that of the current year. In general the company
classifies assets and liabilities as current when they are
expected to be realized or settled within twelve months after the
balance sheet date.
v Fair value measurement:
The Company measures financial instruments such as
derivatives and certain investments, at fair value at each balance
sheet date.
Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either
• In the principal market for the asset or liability.
Or
• In the absence of a principal market, in the most
advantageous market for the asset or liability.
The principal or the most advantageous market must be
accessible by the Company.
The fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in
their economic best interest.
A fair value measurement of a non- financial asset takes in to
account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by selling
it to another market participant that would use the asset in its
highest and best use. The Company uses valuation techniques
that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing
the use of relevant observable inputs and minimizing the use of
unobservable inputs.
All assets and liabilities for which fair value is measured or
disclosed in the financial statements are categorized within the
fair value hierarchy, described as follows, based on the lowest
level input that is significant to the fair value measurement as a
whole;
• Level 1- Quoted (unadjusted) market prices in active markets
for identical assets or liabilities.
• Level 2- Valuation techniques for which the lowest level input
that is significant to the fair value measurement is directly or
indirectly observable.
• Level 3- Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
unobservable.
For assets and liabilities that are recognized in the balance
sheet on a recurring basis, the Company determines whether
transfers have occurred between levels in the hierarchy by re¬
assessing categorization (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end
of each reporting period.
For the purpose of fair value disclosures, the Company has
determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the
level of the fair value hierarchy as explained above.
w Significant Accounting Judgments, 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.
i Income taxes:
Management judgement is required for the calculation of
provision for income taxes and deferred tax assets and liabilities.
The company reviews at each balance sheet date the carrying
amount of deferred tax assets / liabilities. The factors used in
the estimates may differ from actual outcome which could lead
to significant adjustment to the amounts reported in the stand
alone financial statements.
ii Defined benefit plans:
The cost of the defined benefit plan and other post-employment
benefits and the present value of such obligation are determined
using actuarial valuations. An actuarial valuation involves
making various assumptions that may differ from actual
developments in future. These Includes the determination of
the discount rate, future salary increases, mortality rates and
attrition rate. 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.
iii 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 is measured
using valuation techniques including book value, Discounted
Cash Flow (DCF) model. 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
about these factors could affect the reported fair value of
financial instruments.
iv Lease:
The Company evaluates if an arrangement qualifies to be a lease
as per the requirements of IND AS 116. Identification of a lease
requires significant judgement. The company uses significant
judgement in assessing the lease term (including anticipated
renewals) and the applicable discount rate.
The company determines the lease term as the non-cancellable
period of lease, together with both periods covered by an
option to extend the lease if the company is reasonably certain
to exercise that option and periods covered by an option to
terminate the lease if the company is reasonably certain not
to exercise that option. In excising whether the company is
reasonably certain to exercise an option to extend a lease or to
exercise an option to terminate the lease, it considers all relevant
facts and circumstances that create an economic incentive for
the company to exercise the option to extend the lease or to
exercise the option to terminate the lease. The company revises
lease term, if there is change in non-cancellable period of lease.
The discount rate used is generally based on incremental
borrowing rate.
v Depreciation/Amortization and useful life of Property, Plant and
Equipment:
The Company has estimated the useful life of Property, Plant
and Equipment (PPE) as specified in schedule II of Companies
Act. 2013. However, the actual useful life for individual PPE
could turn out to be different, there could be technology
changes, breakdown, unexpected failure leading to impairment
or complete discard. Alternatively, the equipment may continue
to provide useful services well beyond the useful life assigned.
vi Impairment of Financial & Non-Financial Assets:
The impairment provision for financial assets are based on
assumptions about risk of default and expected losses. The
Company uses judgements in making these assumptions
and selecting inputs for impairment calculations based on
existing market conditions, past history, technology, economic
developments as well as forward looking estimates at the end
of each reporting period.
vii Provisions:
The company makes provision for leave encashment and
gratuity based on report received from the independent actuary.
These valuation reports uses complex valuation models using
actuarial valuation. An actuarial valuation involves making
various assumption that may differ from actual development in
future.
viii Contingencies:
Management judgment is required for estimating the possible
outflow of resources, if any, in respect of contingencies / claim
/ litigations against the Company as it is not possible to predict
the outcome of pending matters with accuracy.
x Capital:
Debt and equity instruments:
Ordinary equity shares are classified as equity. Debt instruments
are classified as either liabilities or as equity in accordance with
the substance of the contractual arrangement.
y Other Miscellaneous Expenses
Public Issue Expenditure/Share issue expenses on private
placement basis/FCCB's issue expenditure is being written off
against Securities/Share premium in the year of issue.
34 Fair value measurement
i Financial instruments: Accounting classification and fair
value measurements
This section explains the judgements and estimates made
in determining the fair values of the financial instruments
that are (a) recognized and measured at fair value and
(b) measured at amortized cost and for which fair values
are disclosed in the financial statements. To provide
an indication about the reliability of the inputs used in
determining fair value, the Company has classified its
financial instruments into the three levels prescribed under
the Accounting Standard. An explanation of each level
follows underneath the table.
The carrying amount of bank balances, Trade Receivable, Trade Payable, other financial assets / liabilities, loans, cash and cash equivalents,
borrowings are considered to be the same as their fair value due to their short term nature.
The levels have been classified based on the followings:
Level 1: It hierarchy includes financial instruments measured using quoted prices in active markets. Quotes would include rates/values/
valuation references published periodically by BSE, NSE etc. basis which trades take place in a linked or unlinked active market.
This includes traded bonds and mutual funds, as the case may be, that have quoted price/rate/value.
Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation techniques which
maximize the use of observable market data (either directly as prices or indirectly derived from prices) and rely as little as
possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument
is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the
case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.
Valuation Techniques used to determine fair value
Valuation Techniques used to determine fair value include
- Open ended mutual funds and certain bonds and debentures at NAV's/rates declared and/or quoted.
- Close ended mutual funds at NAV's declared by AMFI.
- For other bonds and debentures values with references to prevailing yields to maturity matching tenures, quoted on sites of credible
organization such as FIMMDA (Fixed Income Money Market and Derivative Association of India).
- Derivative Instruments at values determined by counter parties/Banks using market observable data.
- Certificate of deposits, being short term maturity papers, amortized cost is assumed to be the fair value.
The Board of Directors of the company provides guiding principles for overall risk management, as well as policies covering specific areas
i.e. foreign exchange risk, credit risk & Investment of Surplus liquidity.
The company's risk management is carried out by finance department, accordingly, this department identifies, evaluates and hedges
financial risk.
A) Price Risk
The main Raw materials for manufacturing of Medical devices are various types of Plastic Granules i.e. PP LDPE, HDPE, PC, PA, SAN,
ABS and K. Resin etc. The prices of Raw materials are mainly dependent on the price of Crude Oil. The majority of Raw materials are
being imported by the Company and the few are procured indigenously. In case of imported Raw materials, the adverse forex movements
are covered by the natural hedge. In case of the drastic price rise of Raw materials during the year, the Company makes appropriate
changes in the prices of Finished Products, after due discussions with the customers. The prices of Finished Goods are generally
reviewed every year and appropriate changes in prices are made to offset the increase in cost.
B) Credit Risk
Credit risk arises from cash and cash equivalents, financial assets measured at amortized cost and fair value through profit or loss and
trade receivables
Credit Risk Management
The company has invested in fixed deposits and in liquid mutual funds and have invested only with those funds plan having good credit
rating / track record. The company reviews the creditworthiness of these counterparties on an ongoing basis. Another credit risk at the
reporting date is from trade receivables as these are typically unsecured. This credit risk has always been managed through credit approvals,
establishing credit limits and continuously monitoring the creditworthiness of customer to whom credit is extended in normal course of
business. The company estimates the expected credit loss on the basis of past data and experience. The company also takes proper ECGC
cover based on risk based classification of trade receivables.
(xiii) Risk exposure
The gratuity scheme is a final salary Defined Benefit Plan that provides for lump sum payment made on exit either by way of retirement,
death, disability, voluntary withdrawal. The benefits are defined on the basis of final salary and the period of service and paid as lump sum
at exit. The plan design means the risk commonly affecting the liabilities and the financial results are expected to be:
A) Salary Increases: Actual salary increases will increase the Plan's liability. Increase in salary increase rate assumption in future valuations
will also increase the liability.
B) Investment Risk: If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate
assumed at the last valuation date can impact the liability.
C) Discount Rate: Reduction in discount rate in subsequent valuations can increase the plan's liability.
D) Mortality & disability: Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.
E) Withdrawals: Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent
valuations can impact Plan's liability.
b) Leave Encashment (Unfunded)
The Leave Encashment liability of ' 385.22 lacs form part of long term provision ' 348.61 Lacs (PY ' 228.80 Lacs) and short term
provision ' 36.61 Lacs (PY ' 26.74 Lacs) and is unfunded and does not require disclosures as mentioned in para 158 of Ind AS 19.
42 SEGMENT INFORMATION:
Description of segment and principal activity.
The company is primarily in the business of manufacture and sale of medical devices. Operating segments are reported in the manner
consistent with internal reporting to Managing director of the company. The company has regular review procedures in place and
Managing director reviews the operations of the company as a whole, Hence there are no reportable segments as per Ind AS 108
Operating segment.
44 SHARE BASED PAYMENTS:
'The company has formulated "Poly Medicure Employee Stock Option Scheme, 2020 (ESOP 2020)” duly approved by the share holders in
the annual general meeting held on 29th Sept 2020 in accordance of which the ESOP Committee of Board of Directors of the company
held on 6th November 2020 has granted 63100 equity shares to eligible employees on the following terms & Conditions:
All option granted under this scheme shall, upon vesting, be exercised with in a period of three months from the date of vesting, failing
which the option shall lapse, or such other date as decided by the compensation committee.
Provided, however that in case of cessation of employment, the vested option shall lapse/ be exercised in accordance with the provisions
of article 12 of this scheme.
The vesting period for the conversion of options are as follows:
On completion of 24 months from the date of grant of option: 50% vests.
On completion of 36 months from the date of grant of option: 50% vests.
The company has also formulated "Poly Medicure Employee Stock Option Scheme, 2020 (ESOP 2020)” duly approved by the share
holders in the annual general meeting held on 29th September 2020 in accordance of which the ESOP Committee of Board of Directors
of the company held on 4th August 2022 has granted 79900 equity shares to eligible employees on the following terms & Conditions:
All option granted under this scheme shall, upon vesting, be exercised with in a period of three months from the date of vesting, failing
which the option shall lapse, or such other date as decided by the compensation committee.
Provided, however that in case of cessation of employment, the vested option shall lapse/ be exercised in accordance with the provisions
of article 12 of this scheme.
The vesting period for the conversion of options are as follows:
On completion of 24 months from the date of grant of option: 50% vests.
On completion of 36 months from the date of grant of option: 50% vests.
47 No funds have been advanced/loaned/invested (from borrowed fund or from share premium or from any other sources/kind of fund) by
the company to any other person(s) or entity(ies), including foreign entities(intermediaries), with the understanding (whether recorded in
writing or otherwise) that the intermediary shall (i) directly or indirectly lend or invest in other person or entities identified in any manner
whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or like to or on behalf of the
Ultimate Beneficiaries.
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 (i) 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 (ii) provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.
48 Figures for the corresponding previous year have been regrouped/reclassified wherever necessary to make them comparable. During
the current year ended 31st March 2025 the company has re-grouped the comparative financial information for 31st March 2024 due
to change in classification of provision for gratuity from current to non-current amounting to ' 27.47 lacs and also reclassification of
payable for capital goods to deferred payment liabilities amounting to ' 24.76 lacs as required under schedule III of Companies Act,
2013. The impact of such reclassification regrouping is not material to the Standalone Financial Statement. Further, the depreciation of
assets used for research and development activities amounting to ' 48.21 lacs for the previous year ended 31st March 2024 have been
reclassified to research and development expenses from depreciation. This reclassification does not impact profit of the company for
the year ended 31st March 2024.
49 The Indian parliament has approved the Code of Social Security, 2020 which would impact the contribution by the company toward
providend fund and gratuity. The Ministry of Labour and Employment has relesed draft rules for the Code on Social Security, 2020 on
November 13, 2020. The company will asses the impact and its evaluation once the subject rules are notified. The company will give
appropriate impact in its financial statement in the period in which, the code become effective and the related rules to determine the
financial impact are published.
50 During the year ended 31st March, 2025, the company had issued 53,19,148 equity shares of ' 5/- each at premium of ' 1875/- each
(Issue Price per share ' 1880/- each) amounting to ' 99,999.98 lacs to Qualified Institutional Investors on QIP basis and allotment was
completed on 22nd August 2024. The proceeds of QIP have been utilized as per details given below as on 31st March 2025:
Additional regulatory information required by Schedule-III of Companies Act 2013
1) Relationship with struck off Companies: The Company do not have any relationship with Companies struck off under section 248 of
Companies Act 2013 or Section 560 of Companies Act 1956.
2) Details of Benami Property: No proceedings have been initiated or are pending against the Company for holding any Benami property
under Benami Transaction (Prohibition) Act 1988 and the Rules made thereunder.
3) Compliance with numbers of layer of Companies: The Company has complied with the number of layers prescribed under Companies
Act 2013.
4) Compliance with approved Scheme of Arrangement: The Company has not entered into any scheme of arrangement which has an
accounting impact on current or previous financial year.
5) Undisclosed Income: There is no income surrendered or disclosed as income during current or previous year in the tax assessment
under the Income Tax Act 1961 that has not been recorded in books of accounts.
6) Details of Crypto Currency or Virtual Currency: The Company has not traded or invested in crypto currency or virtual currency during
the current or previous year.
7) Audit Trail: The company has used accounting software for maintaining its books of accounts for the year ended 31st March 2025
which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions
recorded in the software. Audit trail feature has not been tempered throughout the financial year and audit trail feature has been
preserved by the company as per statutory requirement for record retention.
As per our Auditors' report of even date annexed For and on behalf of the Board of Directors
For Doogar & Associates ( Reg No.000561N)
Chartered Accountants
Madhusudan Agarwal Himanshu Baid Rishi Baid
Partner Managing Director Joint Managing Director
Membership No. 086580 DIN : 00014008 DIN : 00048585
Place : New Delhi Naresh Vijayvargiya Avinash Chandra
Date: 6th May 2025 CFO Company Secretary
M. No. : A32270
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