Notes to Accounts of Brawn Biotech Ltd.

Mar 31, 2024

IX. Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized when the Company has a present obligation as a result of past events and it is
probable that the outflow of resources will be required to settle the obligation and in respect of which
reliable estimates can be made. A disclosure for contingent liability is made when there is a possible
obligation that may, but probably will not require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no
provision/disclosure is made. Provision and contingencies are reviewed at each balance sheet date and
adjusted to reflect the correct management estimates. Contingent assets are not recognized but are
disclosed separately in financial statements.

X. Employees Benefits:

Liability for gratuity and leave encashment is being provided based upon the certificate of Actuary at the
end of the year.

XI. 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.

Financial assets

Financial assets include cash and cash equivalents, trade and other receivables, investments in securities
and other eligible current and non-current assets.

At initial recognition, all financial assets are measured at fair value. Such financial assets are subsequently
classified under one of the following three categories according to the purpose for which they are held.
The classification is reviewed at the end of each reporting period.

Financial Assets at Amortized Cost :- At the date of initial recognition, are held to collect contractual cash
flows of principal and interest on principal amount outstanding on specified dates. These financial assets
are intended to be held until maturity. Therefore, they are subsequently measured at amortized cost by
applying the Effective Interest Rate (EIR) method to the gross carrying amount of the financial asset. The
EIR amortization is included as interest income in the profit or loss. The losses arising from impairment are
recognized in the profit or loss.

Financial Assets at Fair value through Other Comprehensive Income: - At the date of initial recognition,
are held to collect contractual cash flows of principal and interest on principal amount outstanding on
specified dates, as well as held for selling. Therefore, they are subsequently measured at each reporting
date at fair value, with all fair value movements recognized in Other Comprehensive Income (OCI). Interest
income calculated using the effective interest rate (EIR) method, impairment gain or loss and foreign
exchange gain or loss are recognized in the Statement of Profit and Loss. On de-recognition of the asset,
cumulative gain or loss previously recognized in Other Comprehensive Income is reclassified from the OCI
to Statement of Profit and Loss.

Financial Assets at Fair value through Profit or Loss: - At the date of initial recognition, financial assets are
held for trading, or which are measured neither at Amortized Cost nor at Fair Value through OCI. Therefore,
they are subsequently measured at each reporting date at fair value, with all fair value movements
recognized in the Statement of Profit and Loss.

The Company derecognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for De recognition under
Ind AS109.

Financial Liabilities

Financial liabilities include long-term and short-term loans and borrowings, trade and other payables and
other eligible current and non-current liabilities.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and
other payables, net of directly attributable transaction costs. After initial recognition, financial liabilities
are classified under one of the following two categories:

Financial Liabilities at Amortized Cost - After initial recognition, such financial liabilities are subsequently
measured at amortized cost by applying the Effective Interest Rate (EIR) method to the gross carrying
amount of the financial liability. The EIR amortization is included in finance expense in the profit or loss.

Financial liabilities at Fair Value through Profit or Loss - which are designated as such on initial

X. Dividend to Shareholders

Annual dividend distribution to the shareholders is recognized as a liability in the period in which the
dividends are approved by the shareholders. Any interim dividend paid is recognized on approval by Board
of Directors. Dividend payable and corresponding tax on dividend distribution is recognized directly in
equity.

XI. Terms/Rights attached to equity shares

The company has only one class of equity shares with voting rights having a par value of Rs. 10 per share.
The company declares & pays dividend in Indian Rupees. Any interim dividend paid is recognized on the
approval by Board of Directors. During the year ended 31st March 2024, the amount of dividend per equity
share recognized as distribution to equity shareholders is Nil (Pr. Year Nil), which includes interim dividend
of Nil (Pr. Year Nil) per equity 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 numbers of equity shares held by shareholders.

The reason for variance

($) Due to significant increase in the value of closing stock.

(#) Due to decrease in turnover and receivables.

(@) Due to increase in trade payables during the year.

(*) Due to increase in working capital at the year end.

XVII. Previous year''s figures have been regrouped/rearranged wherever necessary to make them
comparable with current year figures.

For Rajiv Udai & Associates
Chartered Accountants
Firm Registration No. 018764N

Rajeev Jain
Partner
M.No. 099767
UDIN:

Place: Delhi
Date: 29-05-2024

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Mar 31, 2015

(A) CONTINGENT LIABILITIES NOT PROVIDED FOR

F.Y. 2014-15 F.Y. 2013-14

(i) Claims against the company not acknowledged as debts Nil Nil

(ii) Estimated amounts of contracts remaining to be executed on Capital Accounts and not provided for Nil Nil

(B) IN THE OPINION OF DIRECTORS

(i) The current assets and loans and advances are approximately of value stated if realized in the ordinary course of business except to the extent of impairment, if any.

(ii) The provision for all known liabilities is adequate and considered reasonable.

(C) Balances of Sundry Debtors, Creditors and other Advances are subject to confirmation/reconciliation and consequential adjustment if any arising there to shall be considered in due course of time.

(D) RETIREMENT BENEFITS

Liability for Gratuity and Leave encashment is being provided based upon the certificate of Actuarial at the end of the year. _____

(E) Segment Reporting (AS-17)

1- Primary Segment: The identification of Business segment is done in accordance with the system adopted for internal financial reporting to the board of directors and management structure. The company has identified products as primary segment.

2- Secondary Segment: The company had operated in one segment only.

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Mar 31, 2014

(A) CONTINGENT LIABILITIES NOT PROVIDED FOR

F.Y. 2013-14 F.Y. 2012-13

(i) Claims against the company not Nil Nil acknowledged as debts

(ii) Estimated amounts of contracts Nil Nil

(B) IN THE OPINION OF DIRECTORS

(i) The current assets and loans and advances are approximately of value stated if realized in the ordinary course of business except to the extent of impairment, if any.

(ii) The provision for ail known liabilities is adequate and considered reasonable.

(C) Balances of Sundry Debtors, Creditors and other Advances are subject to confirmation/reconciliation , and consequential adjustment if any arising there to shall be considered in due course of time.

(D) RETIREMENT BENEFITS

Liability for Gratuity and Leave encashment is being provided based upon the certificate of Acturian at the end of the year.

(H) Related Party Disclosure

(a) Related party disclosures as required to by AS-18 are given below:

Companies/Firms in which Directors & their relative are interested:-

Name of Concern Relationship

M/s Brawn Laboratories Ltd. Associate Company by virtue of Common Directors

M/s OverseasLaboratories Pvt. Ltd. Associate Company by virtue, of Common Directors

M/s Delhi Pharma Associate firm by virtue of relative of Director is proprietor

M/s Fine Pharmachem Associate firm by virtue of relative of Director is proprietor

M/s South Delhi Medicos Associate firm by virtue of relative of Director is proprietor

M/s Sai Corporation Associate firm by virtue of relative of Director is proprietor Directors:

Mr. Brij Raj Gupta

Mrs. Brij Bala Gupta

Mrs. Urmila Gupta

Mr. Mahesh Kumar Nanchal

Mr. Manohar Lai

Mr. Trilok Singh

Relatives of Director:

Mr. A. K. Gupta

Mrs. Shashi Bala Gupta

Dr. Atul Gupta

Mr. Nitin Gupta

Mr. Love Gupta

Mr. Kush GuDta .

(I) Segment Reporting (AS-17)

1- Primary Segment: The identification of Business segment is done in accordance with the system adopted for internal financial reporting to the board of directors and management structure. The company has identified products as primary segment.

2- Secondary Segment: The company had operated in one segment only.

(M) Expenses on extraordinary items amounting to Rs.7762.72 Thousand (Rs. Nil) are related to the expiry of claim of the company on account of DEPB amounting to Rs.4140.00 Thousand and a sum of Rs.3622.72 Thousand on account ofexpiry&breakage claims ofthe third parties.

(N) Previous year''s figures have been regrouped/rearranged wherever necessary to make them comparable withcurrentyearfigures.

Voting rights of shareholders: As per article 76 of the Articles of Association of the Company,

a. on show of hands, every member present in person shall have one vote;

b. on a poll, the voting rights of the members shall be as laid down in section 87 of the Companies Act, 1956.

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Mar 31, 2012

(A) CONTINGENT LIABILITIES NOT PROVIDED FOR

(i) Claims against the company not acknowledged as debts: Nil

(ii) Estimated amounts of contracts remaining to be executed on Capital Accounts and not provided for Nil (Previous Year Nil).

(B) IN THE OPINION OF DIRECTORS

(a) The current assets and loans and advances are approximately of value stated if realized in the ordinary course of business except to the extent of impairment, if any.

(b) The provision for all known liabilities is adequate and considered reasonable.

(C) Balances of Sundry Debtors, Creditors and other Advances are subject to confirmation/ reconciliation and consequential adjustment if any arising there to shall be considered in due course of time.

(D) RETIREMENT BENEFITS

Liability for Gratuity and Leave encashment is being provided based upon the certificate of Actuarial at the end of the year.

(E) Related Party Disclosure

(a) Related party disclosures as required to by AS-18 are given below:

Companies/Firms in which Directors & their relative are interested:-

Name of Concern

M/s Brawn Laboratories Ltd.

M/s Overseas Laboratories( P) Ltd.

M/s Delhi Pharma

M/s Fine Pharmachem

M/s South Delhi Medicos

Relationship

Associate Company by virtue of Common Directors

Associate Company by virtue of Common Directors

Associate firm by virtue of relative of Director is proprietor

Associate firm by virtue of relative of Director is proprietor

Associate firm by virtue of relative of Director is proprietor

Directors:

Mr. Brij Raj Gupta

Mrs.Brij Bala Gupta

Mrs. Urmila Gupta

Mr.Mahesh Kumar Nanchai

Mr. Manohar Lai

Mr. Bal Kishan Sharma

Relatives of Director:

Mr. A.K.Gupta

Mrs.Shashi Bala Gupta

Dr. Atul Gupta

Mr.NitinGupta

MrLoveGupta

Mr. Kush Gupta

(F) In view of the insufficient information from the suppliers regarding their status as SSI units, the amount due to small scale industrial undertaking can not be ascertained.

(G) The variation in profit shown in unaudited results/ published is due to provisions for retirement benefits as on date of 31st March 2012.

(H) Previous year''s figures have been regrouped/rearranged wherever necessary to make them comparable with current year figures.

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Mar 31, 2011

(A) CONTINGENT LIABILITIES NOT PROVIDED FOR

(i) Claims against the company not acknowledged as debts: Nil

(ii) Estimated amounts of contracts remaining to be executed on Capital Accounts and not provided for Nil (Previous Year Nil)

(B) IN THE OPINION OF DIRECTORS

(a) The current assets and loans and advances are approximately of value stated if realized in the ordinary course of business except to the extent of impairment, if any.

(b) The provision for all known liabilities is adequate and considered reasonable.

(C) Balances of Sundry Debtors, Creditors and other Advances are subject to confirmation/reconciliation and consequential adjustment if any arising there to shall be considered in due course of time.

(D) RETIREMENT BENEFITS

Liability for Gratuity and leave encashment is being provided based upon the certificate of Acturian at the end of the year.

(E) Refer Schedule -7, The Company has recognized recoverable claim of Rs.41.40 Lac (Rs.41.40 Lac), arised on account of custom duty credit on export sales. These claims are recoverable subject to receipt of export payments, which are overdue and under litigation. The management considered these debtors as good and hence no provision is considered necessary.

(I) Related Party Disclosure

(a) Related party disclosures as required to by AS -18 are given below:

Companies/Firms in which Directors & their relative are interested:

Name of Concern Relationship

M/S Brawn Laboratories Ltd. Associate Company by virtue of Common Directors

M/S Overseas Laboratories (P) Ltd. Associate Company by virtue of Common Directors

M/S Delhi Pharma Associate firm by virtue of relative of Director is proprietor

M/S Fine Pharmachem Associate firm by virtue of relative of Director is proprietor

Directors:

Mr. Brij Raj Gupta

Mrs. Brij Bala Gupta

Mrs. Urmila Gupta

Mr. Mahesh Kumar Nanchal

Mr. Manohar Lal

Mr. Bal Kishan Sharma

Relatives of Director:

Mr. A.K.Gupta

Mrs.Shashi Bala Gupta

Dr. Atul Gupta

Mr. Nitin Gupta

Mr. Love Gupta

Mr. Kush Gupta

(J) Segment Reporting (AS-17)

1. Primary Segment: The identification of Business segment is done in accordance with the system adopted for internal financial reporting to the board of directors and management structure. The company has identified products as primary segment.

(L) There is no amount remaining unpaid to Small Scale Suppliers within the meaning of "The interest on Delayed Payments to Small Scale and Ancillary Undertaking Act".

(M) Additional information pursuant to provisions of paragraph 3 & 4 of part (ii) schedule (vi) to the Companies Act, 1956 (As certified by the management and accepted by the auditors).

(a) The Company had no manufacturing activities during the year. The company got its products manufactured from other parties and hence the information regarding installed capacity is not given.

(N) The variation in profit shown in unaudited results/ published is due to reversal of VAT recoveries and provisions for retiremental benefits as on date of 31st March 2011.

(P) Previous year's figures have been regrouped/rearranged whenever necessary to make them comparable with current year figures.

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Mar 31, 2010

(A) CONTINGENT LIABILITIES NOT PROVIDED FOR

(i) Claims against the company not acknowledged as debts: Nil

(ii) Estimated amounts of contracts remaining to be executed on Capital Accounts and not provided for Nil(Previous Year Nil)

(B) IN THE OPINION OF DIRECTORS

(a) The current assets and loans and advances are approximately of value stated if realized in the ordinary course of business except to the extent of impairment, if any.

(b) The provision for all known liabilities is adequate and considered reasonable.

(C) Balances of Sundry Debtors, Creditors and other Advances are subject to confirmation/reconciliation and consequential adjustment if any arising there to shall be considered in due course of time.

(D) RETIREMENT BENEFITS

Liability for Gratuity is being provided based upon the certificate of Acturian at the end of the year.

(E) Refer Schedule -7, The Company has recognized recoverable claim of Rs.41.40 Lac (Rs.41.40 Lac), arised on account of custom duty credit on export sales. These claims are recoverable subject to receipt of export payments, which are overdue and under litigation. The management considered these debtors as good and hence no provision is considered necessary.

(F) Related Party Disclosure

(a) Related party disclosures as required to by AS-18 are given below:

Companies/Firms in which Directors & their relative are interested:-

M/S Brawn Laboratories Ltd.

M/S A.B.Pharma (P) Ltd.

M/S Overseas Laboratories (P) Ltd.

M/S Delhi Pharma

M/S Fine Pharmachem



Directors:

Mr. Brij Raj Gupta

Mrs. Brij Bala Gupta

Mrs. Urmila Gupta

Mr. Mahesh Kumar Nanchal

Mr. Manohar Lal

Mr. Bal Kishan Sharma



Relatives of Director :

Mr. A.K.Gupta

Mrs. Shashi Bala Gupta

Dr. Atul Gupta

Mr. Nitin Gupta

Mr. Love Gupta

Mr. Kush Gupta

Transactions with related party:

S.No. Name of Company/Firm Nature of transaction Amount

1. M/s Brawn Laboratories Ltd. Purchases Rs.81.63 Lac

2. M/s Brawn Laboratories Ltd. Commission Received Rs.3.94 Lac

3. M/s Brawn Laboratories Ltd. Discount Income Rs.18.85 Lac

4. M/s Brawn Laboratories Ltd. Consultancy Fee Rs.7.50 Lac

5. M/s Delhi Pharma Sales Rs.0.90 Lac

(G) There is no amount remaining unpaid to Small Scale Suppliers within the meaning of "The interest on Delayed Payments to Small Scale and Ancillary Undertaking Act".

(H) Additional information pursuant to provisions of paragraph 3 & 4 of part (ii) schedule (vi) to the Companies Act, 1956 (As certified by the management and accepted by the auditors).

(a) The Company had no manufacturing activities during the year. The company got its products manufactured from other parties on loan licenses basis and hence the information regarding installed capacity is not given.

(I) Previous years figures have been regrouped/rearranged wherever necessary to make them comparable with current year figures.