Sai Parenterals Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

n. Provisions, contingent liabilities and
contingent assets

Provisions are recognized only when there is a
present obligation, as a result of past events, and
when a reliable estimate of the amount of obligation
can be made at the reporting date. These estimates
are reviewed at each reporting date and adjusted
to reflect the current best estimates. Provisions are
discounted to their present values, where the time
value of money is material

Contingent liability is disclosed for:

- Possible obligations which will be confirmed only
by future events not wholly within the control
of the Company; or

- Present obligations arising from past
events where it is not probable that an
outflow of resources will be required
to settle the obligation or a reliable
estimate of the amount of the obligation
cannot be made.

Contingent assets are neither recognized
nor disclosed. However, when realization
of income is virtually certain, related asset
is recognized

o. Income tax

Tax expense recognized in the standalone
statement of profit and loss consists of current and
deferred tax except to the extent that it relates
to items recognised in OCI or directly in equity,
in which case it is recognised in OCI or directly in
equity respectively

Calculation of current tax is based on tax rates and
tax laws that have been enacted for the reporting
period and any adjustment to tax payable in respect
of previous years. Current tax assets and tax
liabilities are offset where the Company has a legally
enforceable right to offset and intends either to
settle on a net basis, or to realise the asset and settle
the liability simultaneously.

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the consolidated financial statements and the
corresponding tax bases used in the computation
of taxable profit. Deferred tax is measured at the
tax rates that are expected to be applied to the
temporary differences when they reverse, based on
the laws that have been enacted or substantively
enacted by the end of the reporting period. Deferred
tax liability are generally recognised for all taxable
temporary differences. Deferred tax assets are
generally recognised for all deductible temporary
differences to the extent that is probable that
taxable profits will be available against which those
deductible temporary differences can be utilised.
Deferred tax assets and liabilities are offset if there
is a legally enforceable right to set off corresponding
current tax assets against current tax liabilities and
the deferred tax assets and deferred tax liabilities
relate to income taxes levied by the same tax
authority on the Company.

Deferred tax assets are recognised for deductible
temporary differences, unused tax losses and
unused tax credits to the extent that it is probable that
future taxable profits will be available against which
such deductible temporary differences, unused
tax losses and unused tax credits can be utilised.

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced
to the extent that it is no longer probable that
sufficient taxable profits will be available to allow
all or part of the deferred tax asset to be utilised.

Deferred tax assets and liabilities are measured using
tax rates and tax laws that have been enacted or
substantively enacted by the reporting date and are
expected to apply when the related asset is realised
or the liability is settled.

p. Earnings per share

Basic earnings per share is calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the period. Diluted
EPS is determined by adjusting the profit or loss
attributable to equity shareholders and the weighted
average number of equity shares outstanding
during the year for the effects of all dilutive potential
equity shares.

r. Operating cycle

As mentioned in para 1 above, the Company
is into contract research and manufacture of
pharmaceutical products. Based on the normal time
between acquisition of assets and their realisation
in cash or cash equivalents, the Company has
determined its operating cycle as 12 months. The
above basis is used for classifying the assets
and liabilities into current and non-current as the
case may be.

s. Goods and Service Tax Input credit

Goods and Service tax input credit is accounted
for in the books in the year in which the
underlying service received is accounted and
when there is no uncertainty in availing / utilising
the credits.

Increase in equity share on sub division of 1 equity share of face value of Rs. 10 each into 2 equity share of face
value of Rs. 5 each dated

(b) Terms / rights attached to equity shares

The Company has only one class of equity shares with face value of Rs. 100/- per equity share. Each holder of
equity share to one vote per share. The Company has not declared any dividend during the current year.

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.

Shares held by holding/ ultimate holding company and/ or their subsidiaries/ associates

Out of equity shares issued by the company, shares held by its holding company, ultimate holding company and
their subsidiaries/ associates are as below:

The company has offered 2,86,554 shares to its shareholders which are fully subscribed and paid up during
the year 2022-2023

The Company has issued 21,60,000 equity shares as Bonus shares during the year 2021-2022 out of the surplus
to the shareholders. Accordinlgy, the equity share capital inclue Rs. 216 lakhs as the bonus capital issue during
the year 2021-2022.

36 Financial risk management objectives and policies

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The
Company''s risk management assessment and policies and processes are established to identify and analyze the risks
faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the
same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market
conditions and the Company''s activities.

(A) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers
and investments in debt securities.The carrying amount of following financial assets represents the maximum
credit exposure:

(a) Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However credit risk with regards to trade receivable is almost negligible in case of its residential sale and
lease rental business as the same is due to the fact that in case of its residential sell business it does not
handover possession till entire outstanding is received. No impairment is observed on the carrying value of
trade receivables.

(b) Cash and Cash Equivalents

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury
department in accordance with the Company''s policy. Investments of surplus funds are made only with
approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits
are reviewed by the Board. The limits are set to minimize the concentration of risks and therefore mitigate
financial loss through counterparty''s potential failure to make payments.

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, under both normal and stressed condition, without incurring unacceptable losses or risking damage to
the Company''s reputation.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of
surplus funds, bank overdrafts, bank loans, debentures and inter-corporate loans. The Company assessed the
concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to
a sufficient variety of sources of funding.

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 and commodity risk. Financial instruments affected by market risk include
loans and borrowings, deposits, debt and equity investments and derivative financial instruments.

The sensitivity analyses in the following sections relate to the position as at 31 March 2023 and 31 March 2022.

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 rates
relates primarily to the Company''s long-term debt obligations with floating interest rates.

38 Other Statutory Information

i) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property.

ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

iv) The Company has not advanced or loaned or invested funds to any other person or entity, including foreign

entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (Ultimate Beneficiaries).

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

v) The Company has not received any fund from any person or entity, including foreign entities (Funding Parties)
with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vi) The Company did not undertake any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
(such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

vii) The Company does not have balances with companies struck off under section 248 of Companies Act, 2013.