Sakar Healthcare Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

q) Provisions, contingent liabilities and contingent assets
General

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. The expense relating to a
provision is presented in the statement of profit and loss.

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 liabilities and contingent assets

Contingent liabilities is disclosed in the case of :

A present obligation arising from past events, when it is not probable that an outflow of resources embodying
economic benefits will be required to settle the obligation.

A present obligation arising from past events, when no reliable estimate can be made.

A possible obligation arising from past events, unless the probability of outflow of resources is remote.

Commitments includes the amount of purchase order (net of advances) issued to parties for completion of
assets.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.
Expenditure

Expenditures are accounted net of taxes recoverable, wherever applicable.

r) Fair value measurement

The Company measures financial instruments, such as, derivatives 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.

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 financial statements 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.

The Company’s management determines the policies and procedures for both recurring fair value measurement,
such as derivative instruments and unquoted financial assets measured at fair value.

External valuer are involved for valuation of unquoted financial assets and financial liabilities, such as contingent
consideration. Involvement of external valuer is decided upon annually by the management. Selection criteria
includes market knowledge, reputation, independence and whether professional standards are maintained.
The management decides, after discussions with the company’s external valuer, which valuation techniques
and inputs to use for each case.

At each reporting date, the company analyses the movements in the values of assets and liabilities which are
required to be remeasured or re-assessed as per the company’s accounting policies. For this analysis, the
Company verifies the major inputs applied in the latest valuation by agreeing the information in the valuation
computation to contracts and other relevant documents.

The Company, in conjunction with the Company’s external valuers, also compares the change in the fair value
of each asset and liability with relevant external sources to determine whether the change is reasonable on a
yearly basis.

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.

This note summarises accounting policy for fair value. Other fair value related disclosures are given in the
relevant notes.

s) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity. The Company recognizes financial assets and financial liabilities when it
becomes a party to the contractual provisions of the instrument. It is broadly classified in financial assets,
financial liabilities, derivatives & equity.

(A) Financial assets

Initial recognition and measurement

All financial assets, except investment in subsidiaries, associates and joint ventures are recognised initially
at fair value.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

> Debt instruments at amortised cost.

> Debt instruments at fair value through other comprehensive income (FVTOCI).

> Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL).

> Equity instruments measured at fair value through other comprehensive income (FVTOCI).

i) Debt instruments at amortised cost

A ‘debt instrument’ is measured at the amortised cost if both the following conditions are met:

(a) The asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and

(b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments
of principal and interest (SPPI) on the principal amount outstanding.

This category is the most relevant to the Company. After initial measurement, such financial assets
are subsequently measured at amortised cost using the effective interest rate (EIR) method.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the
profit or loss. The losses arising from impairment are recognised in the profit or loss. This category
generally applies to trade and other receivables.

ii) Debt instrument at FVTOCI

A debt instrument is subsequently measured at fair value through other comprehensive income if it
is held within a business model whose objective is achieved by both collecting contractual cash
flows and selling financial assets and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding. The Company has not classified any financial asset into this category.

iii) Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the
criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

In addition, the Company may elect to designate a debt instrument, which otherwise meets amortized
cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or
eliminates a measurement or recognition inconsistency (referred to as ‘accounting mismatch’). The
Company has not designated any debt instrument as at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes
recognized in the P&L.

(B) Equity instruments

All equity instruments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held
for trading and contingent consideration recognised by an acquirer in a business combination are classified
as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in
other comprehensive income subsequent changes in the fair value. The Company makes such election on
an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI
to P&L, even on sale of investment. However, The Company may transfer the cumulative gain or loss within
equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized
in the P&L.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from the Company’s balance sheet) when:

> The rights to receive cash flows from the asset have expired, or

> The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation
to pay the received cash flows in full without material delay to a third party under a ‘pass-through’
arrangement and either (a) the Company has transferred substantially all the risks and rewards of the
asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of
the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass¬
through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership.
When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor
transferred control of the asset, the Company continues to recognise the transferred asset to the extent of
the Company’s continuing involvement. In that case, the Company also recognises an associated liability.
The transferred asset and the associated liability are measured on a basis that reflects the rights and
obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the maximum amount of consideration that the
Company could be required to repay.

Impairment of financial assets

The Company applies expected credit loss (ECL) model for measurement and recognition of impairment
loss on the following financial assets and credit risk exposure ;

a) Financial assets that are debt instruments, and are measured at amortised cost e.g. loans, debt securities,
deposits, trade receivables and bank balances.

b) Financial assets that are debt instruments and are measured as at other comprehensive income
(FVTOCI).

c) Trade receivables or any contractual right to receive cash or another financial asset that result from
transactions that are within the scope of Ind AS 11 and Ind AS 18.

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on:

> Trade receivables or contract revenue receivables; and

> All lease receivables resulting from transactions within the scope of Ind AS 17.

Under the simplified approach the Company does not track changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines
that whether there has been a significant increase in the credit risk said initial recognition. If credit risk has
not increased significantly, 12 month ECL is used to provide for impairment loss. However, if credit risk has
increased significantly, lifetime ECL is used.

ECL is the difference between all contracted cash flows that are due to the Company in accordance with the
contract and all the cash flows that the Company expects to receive, discounted at the original EIR. ECL
impairment loss allowance ( or reversal) recognised during the period is recognised as (expense) / income in
the statement of profit and loss (P&L). This amount is reflected under the head “ Other Expense” in the P&L.

Financial liabilities

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings including bank
overdrafts.

Subsequent Measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are
classified as held for trading if they are incurred for the purpose of repurchasing in the near term.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as
such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities
designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in
OCI. These gains/ loss are not subsequently transferred to P&L. However, The Company may transfer the
cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the
statement of profit or loss. The Company has not designated any financial liability as at FVTPL.

Loans and borrowings

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation

process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement
of profit and loss.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or modification
is treated as the derecognition of the original liability and the recognition of a new liability. The difference
in the respective carrying amounts is recognised in the statement of profit or loss.

Reclassification of financial instruments

After initial recognition, no reclassification is made for financial assets which are equity instruments. For
financial assets, which are debt instruments, a reclassification is made only if there is a change in the
business model for managing those assets. Changes to the business model are expected to be infrequent.
If the Company reclassifies the financial assets, it applies the reclassification prospectively from the
reclassification date which is the first day of the immediately next reporting period following the change in
the business model.

Offsetting financial assets and financial liabilities

Financial assets and liabilities are offset and the net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net
basis, to realise the assets and settle the liabilities simultaneously.

t) Leases

The Company has applied Ind AS 116 ‘Leases’ for the first time for annual reporting period commencing from
April 01, 2019. Set out below are the new accounting policies of the Company upon adoption of Ind AS 116:

Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying
asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and
impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets
includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or
before the commencement date less any lease incentives received. Unless the Company is reasonably certain
to obtain ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are
depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use
assets are subject to impairment.

Lease liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present
value of lease payments to be made over the lease term. The lease payments include fixed payments (including
in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an
index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also
include the exercise price of a purchase option reasonably certain to be exercised by the Company and
payments of penalties for terminating a lease, if the lease term reflects the Company exercising the option to
terminate. The variable lease payments that do not depend on an index or a rate are recognised as expense in
the period on which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses the incremental borrowing rate at the
lease commencement date if the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced
for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the
assessment to purchase the underlying asset.

Lease liabilities

The Company applies the short-term lease recognition exemption to its short-term leases of property, plant and
equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do
not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of
office equipment that are considered of low value. Lease payments on short-term leases and leases of low-
value assets are recognised as expense on a straight-line basis over the lease term.

Significant judgement in determining the lease term of contracts with renewal options

The Company determines the lease term as the non-cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by
an option to terminate the lease, if it is reasonably certain not to be exercised.

Carrying amounts of cash and cash equivalents, trade receivables, investments, loans, trade payables and
other payables as at March 31,2025 and March 31,2024 approximate the fair value because of their short-term
nature. Difference between carrying amounts and fair values of bank deposits, other financial assets, other
financial liabilities and borrowings subsequently measured at amortised cost is not significant in each of the
years presented.

29.2 Financial Instrument measured at amortised cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial
statements are a reasonable approximation of their fair values since the Company does not anticipate that the
carrying amounts would be significantly different from the values that would eventually be received or settled.

29.4 FINANCIAL RISK OBJECTIVE AND POLICIES

The Company’s principal financial liabilities, comprise loans and borrowings and trade and other payables.
The main purpose of these financial liabilities is to finance the Company’s operations/projects. The Company’s
principal financial assets include loans, security and other deposits trade and lease receivables, and cash and
cash equivalents that derive directly from its operations.

i) Interest rate risk

The Company is exposed to changes in market interest rates due to financing, investing and cash
management activities. Currently the Company’s exposure to the risk of changes in market interest rates
relates primarily to the Company’s short-term debt obligations with fixed interest rates. As at March 31,
2025, all the borrowings are at fixed rate of interest.

ii) 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 other financial assets), including deposits with banks and other financial
instruments.

Customer credit risk is managed by the Company’s established policy, procedures and control relating to
customer credit risk management. Credit quality of a customer is assessed based on an extensive evaluation
and individual credit limits are defined in accordance with this assessment.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In
addition, a large number of minor receivables are grouped into homogenous groups and assessed for
impairment collectively. The calculation is based on historical data.

Credit risk from balances with banks is managed by the Company’s treasury department in accordance
with the Company’s policy.

iii) Concentrations of Credit Risk form part of Credit Risk

TThe Company is engaged in the business of manufacturing and selling of various pharmaceutical products.
Besides, the business of the Company is scatted across the customers and geographies. Therefore, there
is no concentration of credit risk for the business of the Company.

iv) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments
associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity
risk may result from an inability to sell a financial asset quickly at close to its fair value.

The Company has an established liquidity risk management framework for managing its short term, medium
term and long term funding and liquidity management requirements. The Company’s exposure to liquidity
risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company
manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also
has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal
operating commitments in a timely and cost-effective manner.

The table below analysis derivative and non-derivative financial liabilities of the Company into relevant
maturity groupings based on the remaining period from the reporting date to the contractual maturity date.
The amounts disclosed in the table are the contractual undiscounted cash flows.

The table has been drawn up based on the undiscounted contractual maturities of the financial liabilities
including interest that will be paid on those liabilities up to the maturity of the instruments.

29.5 Capital management

For the purposes of the company’s capital management, capital includes issued capital and all other equity
reserves. The primary objective of the company’s capital management is to maximize shareholder value. The
company manages its capital structure and makes adjustments in the light of changes in economic environment
and the requirements of the financial covenants.

The company monitors capital using gearing ratio, which is net debt (total debt less cash and cash equivalents)
divided by total capital plus net debt.

Notes

1 Debt Service coverage ratio has been increased due to a less payment of borrowings as compared to
previous year.

2 The increase in ratio as compared to previous year is due to increase in net profit.

3 The decrease in ratio is due to increase in average stock.

4 The decrease in ratio is due to increase in net working capital during the year

5 The increase in ratio as compared to previous year is due to increase in net profit.

40 The Company has defined process to take full back-up of books of account maintained electronically on daily basis
and it maintains the daily log of such back-up for cyclic period of 1 week.

41 The Company has used accounting software for maintaining its books of account 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. Further, there are no instance of audit trail feature being tampered with.

42 Previous year figures are regrouped wherever necessary.

The accompanying notes form an integral part of financials statements

As per our report of even date ^{For and on behalf of the Board}

For J.S.SHAH & CO. ^{Sakar Healthcare Limited}

^{Chartered Accountants} Sanjay S. Shah Aarsh S. Shah

^{Firm Registration N}°.^:132°^59W Managing Director Joint Managing Director

Jaimin S Shah DIN: 01515296 DIN: 05294294

^Partner Dharmesh Thaker Bharat Soni

i QH/HA7C Chief Financial Officer Company Secretary

UDIN: 25137477BMIAZR4452

_{Place: Ahmedabad} ^{Place : Ahmedabad}

Date : 15.05.2025 ^{Date : 15.05.2025}

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Mar 31, 2024

Carrying amounts of cash and cash equivalents, trade receivables, investments, unbilled revenues, loans, trade payables and other payables as at March 31, 2024 and March 31, 2023 approximate the fair value because of their short-term nature. Difference between carrying amounts and fair values of bank deposits, other financial assets, other financial liabilities and borrowings subsequently measured at amortised cost is not significant in each of the years presented.

Financial Instrument measured at amortised cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

FINANCIAL RISK OBJECTIVE AND POLICIES

The Company''s principal financial liabilities, comprise loans and borrowings and trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations/projects. The Company''s principal financial assets include loans, security and other deposits trade and lease receivables, and cash and cash equivalents that derive directly from its operations.

i) Interest rate risk

The Company is exposed to changes in market interest rates due to financing, investing and cash management activities. Currently the Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s short-term debt obligations with fixed interest rates. As at March 31, 2024, all the borrowings are at fixed rate of interest.

ii) 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 other financial assets), including deposits with banks and other financial instruments.

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive evaluation and individual credit limits are defined in accordance with this assessment.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on historical data.

Credit risk from balances with banks is managed by the Company''s treasury department in accordance with the Company''s policy.

iii) Concentrations of Credit Risk form part of Credit Risk

The Company is engaged in the business of manufacturing and selling of various pharmaceutical products. Besides, the business of the Company is scatted across the customers and geographies. Therefore, there is no concentration of credit risk for the business of the Company.

iv) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Company''s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.

The table below analysis derivative and non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows

The table has been drawn up based on the undiscounted contractual maturities of the financial liabilities including interest that will be paid on those liabilities up to the maturity of the instruments.

29.5 Capital management

For the purposes of the company''s capital management, capital includes issued capital and all other equity reserves. The primary objective of the company''s capital management is to maximize shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

The company monitors capital using gearing ratio, which is net debt (total debt less cash and cash equivalents) divided by total capital plus net debt.

32 Contingent liabilities not provided for

Based on the information available with the Company, there is no contingent liability as at March 31, 2024 (as at March 31, 2023 NIL).

33 Segment information

The Company is primarily engaged in one business segment, namely the manufacturing of Pharmaceutical products as determined by the chief operational decision maker, in accordance with Ind AS - 108 “Segment Reporting”.

Considering the interrelationship of various activities of the business, the chief operational decision maker monitors the operating results of its business segment on an overall basis. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements.

b) The company has a defined gratuity plan which is unfunded. Under the plan every employee who has completed at least five year of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.The following tables summaries the component of the net benefits expense recognised in the statement of profit and loss account and amounts recognized in the balance sheet for the respective plan.

Terms and conditions of transactions with related parties

Outstanding balances of related parties at the year-end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended March 31, 2024, the Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

(i) The names of the related parties and nature of the relationships where control exists are disclosed irrespective of whether or not there have been transactions between the related parties. For others, the names and the nature of relationships is disclosed only when the transactions are entered into by the Company with the related parties during the existence of the related party relationship.

38 EVENT OCCURRED AFTER THE BALANCE SHEET DATE

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval of financial statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. As of 21^st May, 2024, there were no subsequent events to be recognised or reported that are not already disclosed.

1 The loan has been repaid during the year hence there has been a significant change in the Debt-Equity Ratio.

2 Debt Service coverage ratio has been decreased due to a substantial decrease in borrowings.

3 The increase in ratio is primarily due to increase in the average payment to trade payables.

4 Working Capital of the company has increased significantly but sales has not increased in same proportion , hence there is a decrease in Net Capital Turnover Ratio.

40 The Company has defined process to take full back-up of books of account maintained electronically on daily basis and it maintains the daily log of such back-up for cyclic period of 1 week.

41 The Company has used accounting software for maintaining its books of account 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. Further, there are no instance of audit trail feature being tampered with.

42 Previous year figures are regrouped wherever necessary.

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Mar 31, 2023

Terms/rights attached to equity shares:

The Company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Carrying amounts of cash and cash equivalents, trade receivables, investments, unbilled revenues, loans, trade payables and other payables as at March 31, 2023 and March 31, 2022 approximate the fair value because of their short-term nature. Difference between carrying amounts and fair values of bank deposits, other financial assets, other financial liabilities and borrowings subsequently measured at amortised cost is not significant in each of the years presented.

Financial Instrument measured at amortised cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

FINANCIAL RISK OBJECTIVE AND POLICIES

The Company''s principal financial liabilities, comprise loans and borrowings and trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations/projects. The Company''s principal financial assets include loans, security and other deposits trade and lease receivables, and cash and cash equivalents that derive directly from its operations.

i) Interest rate risk

The Company is exposed to changes in market interest rates due to financing, investing and cash management activities. Currently the Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s short-term debt obligations with fixed interest rates. As at March 31, 2023, all the borrowings are at fixed rate of interest.

ii) 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 other financial assets), including deposits with banks and other financial instruments.

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive evaluation and individual credit limits are defined in accordance with this assessment.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on historical data.

Credit risk from balances with banks is managed by the Company''s treasury department in accordance with the Company''s policy.

iii) Concentrations of Credit Risk form part of Credit Risk

Considering that the Company provides land on lease and related infrastructure facilities to various companies to develop Electronics Manufacturing Clusters at Mundra, the Company is significantly dependent on few customers. A loss of any of these customers could adversely affect the operating result or cash flow of the Company.

iv) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Company''s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.

The table below analysis derivative and non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

The table has been drawn up based on the undiscounted contractual maturities of the financial liabilities including interest that will be paid on those liabilities up to the maturity of the instruments.

27.5 Capital management

For the purposes of the company''s capital management, capital includes issued capital and all other equity reserves. The primary objective of the company''s capital management is to maximize shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

30 Contingent liabilities not provided for

Based on the information available with the Company, there is no contingent liability as at March 31, 2023 (as at March 31,2022 NIL).

31 Segment information

The Company is primarily engaged in one business segment, namely developing Electronic Manufacturing Cluster as determined by chief operational decision maker, in accordance with Ind AS - 108 “Segment Reporting”. Considering the inter relationship of various activities of the business, the chief operational decision maker monitors the operating results of its business segment on overall basis. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements.

Terms and conditions of transactions with related parties

Outstanding balances of related parties at the year-end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended March 31, 2023, the Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

EVENT OCCURRED AFTER THE BALANCE SHEET DATE

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval of financial statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. As of May 26, 2023, there were no subsequent events to be recognised or reported that are not already disclosed.

1 Additional Loan has been taken for Construction of New Plant, hence there has been significant change in Debt-Equity Ratio.

2 Debt Service coverage ratio has been increased due to substantial increase in borrowings for investment in Plant & Machinery.

3 Company has achieved significant growth in Export and Domestic Sales, hence it has been able to improve its inventory Turnover Ratio.

4 Due to blockage of funds in construction of New Plant, it has been not able to improve its Trade Payable Turnover Ratio.

5 Working Capital of the company has increased significantly but sales has not increased in same proportion, hence there is a decrease in Net Capital Turnover Ratio.

38 Previous year figures are regrouped wherever necessary.

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Mar 31, 2021

Terms/rights attached to equity shares:

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Company did not declare any dividend on equity shares for the year ended 31 March 2021 and 31 March 2020. The dividend if proposed by the Board of Directors, is subject to the approval of shareholders in the Annual General Meeting, except interim dividend.

Shares reserved for issue under option

The Company has not reserved any shares for issuance under options

Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date

The Company has neither issued any bonus shares, shares for consideration other than cash nor has there been any buyback of shares in the current year and preceding five years from 31 March 2021.

1. Loan from Clix Finance India Private Limited is repayable in 48 equated monthly installments amounting to INR 13,41,375/ - beginning from October, 2019. The Loan were secured against the Plant & Machinery of Sakar Healthcare Limited.

2. Term Loan from the State Bank of India carries interest rate of 9.15% p.a. The repayment of the loan will begin after the 18 months from the date of inception of loan. The Loan were secured against the Land & Building and Machinery of Sakar Healthcare Limited.

3. Loan from Axis Bank is repayable in 37 equated monthly installments amounting to INR 61,972/- beginning from January, 2020. The Loan were secured against the Motor Car (Audi) of Sakar Healthcare Limited.

c) The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

33 FINANCIAL RISK OBJECTIVE AND POLICIES

The Company''s principal financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations/projects and to provide guarantees to support its operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

In the ordinary course of business, the Company is mainly exposed to risks resulting from interest rate movements (interest rate risk) collectively referred as market risk, credit risk, liquidity risk and other price risks such as equity price risk. The Company''s senior management oversees the management of these risks.

The Company''s risk management activities are subject to the management, direction and control of Treasury Team of the Company under the framework of Risk Management Policy for Currency and Interest rate risk as approved by the Board of Directors of the Company. The Company''s central treasury team ensures appropriate financial risk governance framework for the Company through 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 derivatives for speculative purposes may be undertaken.

a) 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. Financial instruments affected by market risk include loans and borrowings.

The sensitivity analysis in the following sections relate to the position as at March 31,2021 and March 31,2020.

The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant as at March 31,2021.

The sensitivity of the relevant profit or 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 31,2020 and March 31, 2021.

i) Interest rate risk

Interest rate sensitivity

The following paragraph demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

If interest rates had been 50 basis points higher / lower and all other variables were held constant, the Company''s profit for the year ended March 31,2021 would decrease / increase by Rs. 1,05,820/- (previous year Rs. 8,55,843/-). This is mainly attributable to interest rates on term loans, car loans and working capital loan.

b) Credit risk

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive evaluation and individual credit limits are defined in accordance with this assessment.

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury team in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company''s Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the Company''s Finance Committee. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

c) Liquidity risk

The table below analysis the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

g) Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible. The sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated.

The amount of interest paid by the buyer in terms of section 16, of the Micro Small and Medium Enterprise Development Act, 2006 a long with the amounts of the payment made to the supplier beyond the appointed day during each accounting year

The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under Micro Small and Medium Enterprise Development Act, 2006.

The amount of interest accrued and remaining unpaid at the end of each accounting year; and

The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a deductible expenditure under section 23 of the MSMED Act 2006.

38 Capital management

For the purposes of the company''s capital management, capital includes issued capital and all other equity reserves. The primary objective of the company''s capital management is to maximize shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

COVID 19 IMPACT
Parameter	Response
Impact of Covid-19 Pandemic on Business	Global pandemic, Covid-19 has started to surface significantly by midMarch 2020 forcing government to take decisive rules including lockdown. Pharmaceutical Industry has got categorized under Essential Services and hence has been exempted from day-1 of lockdown i.e. 25th March 2020. Therefore the manufacturing plant functioning and business operations could be maintained all through this phase of back to back lockdowns, though there were few disturbances due to restricted manpower and material movement due to logistic irregularities, and increased freight charges due to limited scope.
Ability to maintain operations including the factories/units/office spaces functioning andclosed down;	The plant operations were smooth adhering to social distancing and other health hygienic norms directed by the government. Working from home was preferred for selected team members considering safety and smooth functioning.
Schedule, if any, for restarting the operations;	This is not Applicable
Steps taken to ensure smooth functioning of operations;	The Company has volunteered for ensuring proper screening and social distancing once the directive has been delivered by the government health authorities:
	- There was mandatory thermal screening for all employees, workers and visitors
	- Mask has been made mandatory for all
	- Sanitization has been done inside premises and for vehicles at regular intervals

Estimation of the future impact of	- Hand sanitizers have been placed at key locations - Travelling has been cancelled for overseas and domestic business development - Social distancing has been practiced with proper space allocation within premise - Awareness on government directives has been initiated through posters It is difficult to predict situation that has drastically changed since
CoVID-19 on its operations;	past few months. However, the Company is well placed to be confident
Details of impact of CoVID-19 on:	to adapting to the changing business environment as it has done during this COvid-19 phase. - Capital & Financial Resources: The Company is very comfortably
Existing contracts/agreements where	leveraged with very insignificant impact. - Profitability: The Company is confident of meeting the estimated profitability in line with the pasttrack record. - Liquidity Position: The Company has been able to meet its financial obligations, collections from debtors has been impacted marginally, which the company expects to fall in line with the past trends by the end of second quarter. The Company is supporting its customers by extending the credit days marginally with very insignificant impact on liquidity position of the company. - Ability to service debt and other financing arrangements: Very insignificant. - Assets: Nil - Internal Financial Reporting & Control: Very insignificant. - Supply Chain: It has delayed the availability of Active Pharmaceutical Ingredient in initial phase by few days and affected the transportation cost of finished formulation, which Company is passing on to the Customers - Demand for products/ services: Usual The Company is not anticipating any non-fulfillment, as Company
non-fulfillment of the obligations by any	operates in Essential Service sector-Pharmaceutical Manufacturing,
party will have significant impact on the	in which there was no restriction. Also there was no restriction on
listed entity''s business;	any manufactured product of the Company for exports to multiple
Other relevant material updates about	countries based on government guidelines. No
the Company''s business;
41 The Management has identified the following entities as related parties of the Company, which are as under:
a) List of related parties
Subsidiary Company	Sakar Oncology Private Limited
Key Managerial Personnel	Sanjay Shah, Director
Rita Shah, Director Aarsh Shah, Director Relative of Key Managerial Personnel Ayushi Shah

43 APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved for issue by the board of directors on 31st May, 2021

The accompanying notes form an integral part of financials statements

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Mar 31, 2018

II) Notes on Accounts :

1) In the opinion of the management, the current assets, loans and advances are stated in the Balance Sheet at value realizable in the ordinary course of business.

2) Previous year’s figures have been regrouped, reclassified and restated wherever necessary to make them comparable with current year’s figure or for proper presentation.

3) Balance of Sundry creditors, debtors, loans and advances are subject to confirmation.

4) Segment Reporting

The Company operates within a solitary business segment i.e., manufacturing of pharmaceuticals, the disclosure requirements of Accounting Standard - 17 “Segment Reporting”, issued by the Institute of Chartered Accountants of India is not applicable.

5) Pursuant to Accounting Standard - 29. “Provisions, Contingent, Liabilities and Contingent Assets”, the disclosure relating to contingent liabilities made in the accounts for the year ended 31st March, 2018 is as follows :

9) Employee benefit plans a) Defined Benefit Plans

i) Actuarial gains and losses in respect of defined benefit plans are recognized in the statement of profit and loss.

ii) The Company has an obligation towards gratuity, a defined benefit obligation. The Company makes lump sum payment to vested employees an amount based on 15 days last drawn basic salary including dearness allowance (if any) for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

NOTE 2 :

The revised Schedule VI as notified under the Companies Act, 1956, has become applicable to the Company for presentation of its financial statements for the year ending March 31st, 2018. The adoption of the revised Schedule VI requirements has significantly modified the presentation and disclosures which have been complied with in these financial statements. Previous year figures have been reclassified in accordance with current year requirements.

NOTE 3 :

In the opinion of the board, Current Assets, Loans and Advances are approximately , stated at the value, if realized in ordinary course of business. Provisions for all known liabilities are provided for in full and the same are adequate and not in excess of the amount considered as reasonably necessary.

NOTE 4 :

Previous year figures have been rearranged/ regrouped wherever necessary to make them comparable with the figures of the current year.

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Mar 31, 2014

(f) Significant Accounting Policies ...

" The financial statements are prepared to comply with all material aspects with the accounting principles generally accepted in India and in consonance with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 to the extent applicable and the relevant provisions of the Companies Act,1956.

i) Basis of Accounting

The Financial Statements are prepared under the historical cost convention on an accrual basis.

All assets and liabilities have been classified as Current or Non-Current as per the criteria set out in\ the Revised Schedule VI to the Companies Act, 1956. .

ii) Use of Estimates .

The preparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures of contingent liabilities at the date of financial statement and . the result of operation during the reporting period end. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these

estimates. .

iii) Revenue Recognition

Revenue is recognized when consideration can be reasonably measured and there exists reasonable certainty of its recovery.

a) Sales

Sales is inclusive of VAT and Central Sales Tax, wherever applicable and after making . adjustments towards price variations, discounts etc.

Revenue is recognized on transfer of significant risks and rewards to the customer which normally occurs

In case of Domestic Sales - On dispatch of products to customers In case of Export Sales - On Shipment / Air lift of products

b)Interest

Interest on investments is booked on a time proportion basis taking into account the amounts invested and the rate of interest.

iv) Tangible Fixed Assets . .

Fixed Assets are stated at cost of acquisition I construction less. accumulated depreciation, amortization and impairment loss (if any). Cost comprises of purchase price, import duties and other \ non-refundable taxes or levies and any directly attributable cost to bring the assets ready for their

- intended use. Direct expenses, as well as pro rata identifiable indirect expenses on projects during the year of construction are capitalized. The fixed assets retired from active use are stated at the lower of cost or net realizable value.

v) Depreciation I Amortization ,

Depreciation on all tangible fixed assets is provided on Straight Line Method at the rates prescribed

in Schedule- XIV of the Companies Act, 1956.

Assets costing up to Rs.5000/- are fully depreciated in the year in which they are ready for use. Depreciation on sale of assets is provided till the date of sale.

vi) inventories

- , Raw materials are valued at lower of cost or net realizable value. The costs of these items of inventory

- comprises of cost of purchase and other incidental costs incurred to bring the inventories to their present location and condition. However, raw materials are written down below cost only when the '' finished product to which they belong are Written down below cost and the replacement cost of that raw material is lower than cost.

Finished goods are valued at lower of cost or net realizable value. The cost of finished goods includes'' cost of conversion and other costs incurred to bring the inventories to their present location and condition. Cost of inventories is determined on "First in First out¹'' basis. -

Excise duty in respect of finished goods lying at the factory premises have been provided for and included in valuation of inventory where the excise duty is payable.

vii) Employee Benefits

a) Short term Employee Benefits

Short-term employee benefits are recognized as an expense at the undiscounted amount in the) Statement of Profit and Loss of the year in which the related service is rendered. .

^v b) Post Employment Benefits

Defined Contribution Plan The Company''s contribution paid / payable during the year to Provident Fund are considered as defined contribution plans. The Contribution paid / payable under these plans are recognized during the period in which the employee render services,

c) Defined Benefit Plan

Other long-term employee benefits are recognized as an expense in the Statement of Profit and Loss for the period in which the employee has rendered services. Estimated liability on account of long-term benefits is discounted to the current value, using the yield on government bonds, as on the date of balance sheet, at the discounting rate.

Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the profit and loss account. .

viii) Borrowing Costs .

. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to , Statement of Profit and loss. •

ix) Provision for tax . ;

Tax expenses for a year comprise of current tax and deferred tax. ,

Provision for current tax is determined based on assessable profits of the company as determined ¦ under the Income Tax Act,1961. ; .

Provision for deferred tax is determined based on the effect of timing difference between the assessable profits under the Income Tax Act and the profits as per the Statement of Profit and Loss is . accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. ''

Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

: Provision for Wealth Tax is calculated at the rate specified under the Wealth Tax Act, 1957.xi) Provisions and Contingent Liabilities

Provisions are recognized for when the Company has at present, legal or contractual obligation as a result of past events, only if it is probable that an outflow of resources embodying economic benefits will be required and if the amount involved can be measured reliably.

Contingent liabilities being a possible obligation as a result of past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more future events not wholly in the control of the Company are not recognized in the accounts. The nature of such liabilities and an estimate of its financial effect are disclosed in the Notes to Financial Statements.

Contingent assets are neither recognized nor disclosed in the financial statements.