Accounting Policies of Dipna Pharmachem Ltd. Company

Mar 31, 2025

18.1 System of Accounting

The financial statements are prepared under historical cost convention on an accrual basis
and on the basis of going concern.

18.2 Fixed Assets and Depreciation :

18.2.1 Fixed Assets

Fixed Assets are capitalised at cost including all direct costs and other expenses incurred in
connection with acquisition of assets apportioned there to.

18.2.2 Depreciation

Depreciation has been calculated on written down value method on Fixed Assets in
accordance with the rates and in the manner prescribed under Schedule XIV to the Companies
Act, 2013.

18.3 Inventories

Inventories are valued at cost or net realisable value, whichever is less.

18.4 Sales

Sales are net of rebate & discounts and is accounted on removal of the goods.

18.5 Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the
management to make judgment, estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosures of contingent liabilities on the date of Financial
Statements and reported amounts of revenues and expenses for the year. Although these
estimates are based on Management''s best knowledge of current events and actions,
uncertainty about these assumptions and estimates could result in the outcomes different
from the estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to
accounting estimates is recognized prospectively in the current and future periods.

18.6 Current & Non-Current Classification

All the assets and liabilities have been classified as current or non-current as per the
company''s normal operating cycle and other criteria set out in Schedule III to the Companies
Act, 2013. Based on the nature of activities and time between the activities performed and
their subsequent realization in cash or cash equivalents, the company has ascertained its
operating cycle as 12 months for the purpose of current/non-current classification of assets
and liabilities.

18.7 Cash Flow Statement

18.7.1 Cash & Cash Equivalents (for purpose of cash flow statement)

Cash comprises cash on hand and demand deposit with banks. Cash Equivalents are short¬
term balances, highly liquid investments that are readily convertible into known amounts of
cash and which are subject to insignificant risk of changes in value.

18.7.2 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit/ (loss) before extraordinary
items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals
or accruals of past or future cash receipts or payments. The cash flows from regular revenue
generating, financing and investing activities of the company are segregated.

18.8 Borrowings and borrowing costs

Borrowing costs consist of interest and transactions costs incurred in connection with the
borrowing of funds. Borrowing costs also include exchange differences to the extent regarded
as an adjustment to the borrowing costs.

Borrowing costs that are attributable to the acquisition or construction of qualifying assets
(i.e., an asset that necessarily takes a substantial period of time to get ready for its intended
use) are capitalized as a part of the cost of such assets. All other borrowing costs are charged
to the statement of profit and loss.

Investment income earned on the temporary investment of funds for specific borrowings
pending their expenditure on qualifying assets is deducted from the borrowing costs eligible
for capitalization

18.9 Related Party transactions

Disclosure of transactions with related parties, as required by Accounting Standard 18
"Related Party Disclosure" as specified in the Companies (Accounting Standard) Rules, (as
amended), has been set out in a separate statement annexed to this note. Related parties as
defined under paragraph 3 of the Accounting Standard 18 have been identified on the basis
of representation made by the management and information available with the company.

18.10 Earnings per Share

The company reports basic and diluted earnings per share (EPS) in accordance with the
Accounting Standard 20 as specified in the Companies (Accounting Standard) Rules, (as
amended). The Basic EPS has been computed by dividing the income available to equity
shareholders by the weighted average number of Equity shares outstanding during the
accounting year. There are no dilutive potential equity shares so Diluted EPS is same as Basis
EPS.

18.11 Accounting policies not specifically referred to are consistent with generally accepted
accounting practices

21.1 The balances of Debtors and Creditors are subject to the confirmation.

21.2 In the opinion of the Board of Directors the current assets, loans & advances are
approximately at the same value if realised in the ordinary course of business, the
provisions of all known liabilities are adequate except stated otherwise.

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Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES :

I. System of Accounting

The financial statements are prepared under historical cost convention on an
accrual basis and on the basis of going concern.

II. Fixed Assets and Depreciation :

i) Fixed Assets

Fixed Assets are capitalised at cost including all direct costs and other expenses
incurred in connection with acquisition of assets apportioned there to.

ii) Depreciation

Depreciation has been calculated on written down value method on Fixed Assets in
accordance with the rates and in the manner prescribed under Schedule XV to the
Companies Act, 2013.

III. Inventories

Inventories are valued at cost or net realisable value, whichever is less.

IV. Sales

Sales are net of rebate & discounts and is accounted on removal of the goods.

V Accounting policies not specifically referred to are consistent with generally

accepted accounting practices.

Note No.19 Notes on Accounts

1. The balances of Debtors and Creditors are subject to the confirmation.

2. In the opinion of the Board of Directors the current assests, loans & advances are

approximately at the same value if realised in the ordinary course of business,
the provisions of all known liabilities are adequate except stated otherwise.

3. Provision of Income Tax is made as per the Income Tax Act, 1961.

4. The Company have not 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 suivey or any other relevant provisions of the Income T ax Act, 1961)

5. The company does not fall under requirements to fulfill given under section 135 Corporate social responsibility.

6. The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

7. Auditors Remuneration : (in Rs.) (in Rs.)

2023-24 2022-23

as Statutory Audit Fees 1,59,300 1,25,000

8. There are no Immovable property held as at the end of current year.

9. The company have not made any revaluation in its Property, Plant and Equipment by registered valuer.

10 Loans and advances in the nature of loans are granted to promoters, directors, KMPs and the related parties
(as defined under Companies Act, 2013,) either severally or jointly with any other person, that are:

As at 31st March''2024
(In Rs)

Repayble on demand -

11. The Company do not have any intangible assets under development

12. The Company do not have any Benami property, where any proceeding has been initiated

or pending against the company for holding any Benami property.

13. The Company has not made any borrowinqs from banks or financial institutions on the basis of security of current assets

14. The Company is not being declared wilful defaulter by any bank or financial institution or other lender.

15. The Company do not have any transactions with companies struck off.

16. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

17. The Company does not have any layers prescribed under clause (87) of Section 2 of the Act,
read with Companies (Restriction on number of Layers) Rules, 2017.

Notes

18.1 Change is due to significant increase in Equity Share Capital as Compared to Previous Year.

18.2 Change is due to significant increase in inventory as compared to Previous Year

18.3 Change is due to significant increase Revenue from Operation as compared to Previous Year.

18.4 Change is due to significant increase Revenue from Operation as compared to Previous Year.

19. The Company has no scheme of arrangements approved by the competent authority as per Companies Act,2013

20. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), 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) or

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

20.1 The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Group 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,

21 Related Parties Disclosures as attached herewith

As per our report of even date attached.

FOR, DEVADIYA & ASSOCIATES
CHARTERED ACCOUNTANTS

(Firm Reg. No. 123045W) For, DHARA PHARMACHEM PRIVATE LIMITED

Dipna Shah Keyur Shah

(SANJAY DEVADIYA) Director Managing Director

Partner DIN : 02507462 DIN : 03167258

Mem.No.: 112495

UDIN: 24112495BKGQMW7514

Place : Ahmedabad

Date: 12th June,2024

Keyur Parmar Madhuri Gurwani

Chief Financial Officer Company Secretary