Accounting Policies of Hindustan Bio Sciences Ltd. Company

Mar 31, 2024

2. Significant accounting policies

2.1 Revenue recognition

Revenue is recognized when the significant risks and rewards of ownership have been
transferred to the buyer, recovery of the consideration is probable, the associated costs can be
estimated reliably, there is no continuing management involvement with the goods and the
amount of revenue can be measured reliably. Revenue is measured at the fair value of the
consideration received or receivable, net of taxes and applicable trade discounts and
allowances.

Interest income

Interest income from a financial asset is recognized when it is probable that the economic
benefits will flow to the Company and the amount of income can be measured reliably. Interest
income is accrued on, time basis, by reference to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that asset''s net carrying amount on initial
recognition.

2.2 Foreign Currency Transactions:

Foreign currency transactions are initially recorded at the exchange rates prevailingon the
transaction date. All revenues denominated in foreign currency are translatedat the exchange
rate prevailing on the date of inward remittance. The consequentexchange gains/ losses arising
there from are transferred to the statement of profitand loss. All foreign currency denominated
monetary assets are translated at theexchange rate prevailing at the Balance Sheet date and

the exchange gains/lossesresulting there from are transferred to the statement of profit and
loss.

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their
intended use or sale, are added to the cost of those assets, until such time as the assets are
substantially ready for their intended use or sale.

All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

2.3 Taxation

Income tax expense consists of current and deferred tax. Income tax expense is recognized in
the income statement except to the extent that it relates to items recognized directly in equity, in
which case it is recognized in equity.

Current tax

Current tax is the expected tax payable on the taxable income for the year, using tax rates
enacted or substantively enacted at the reporting date, and any adjustment to tax payable in
respect of previous years.

Deferred tax

Deferred tax is recognized using the balance sheet method, providing for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the
amounts used for taxation purposes. Deferred tax is not recognized for the following temporary
differences: the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit; differences relating to
investments in subsidiaries and jointly controlled entities to the extent that it is probable that they
will not reverse in the foreseeable future; and taxable temporary differences arising upon the
initial recognition of goodwill. 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 reporting date. Deferred tax assets and liabilities are
offset if there is a legally enforceable right to offset current tax liabilities and assets, and they
relate to income taxes levied by the same tax authority on the same taxable entity, or on different
tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax
assets and liabilities will be realized simultaneously.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will
be available against which the temporary difference can be utilized. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that
the related tax benefit will be realized.

2.4 Earnings per share

The Company presents basic and diluted earnings per share (“EPS”) data for its ordinary
shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary

shareholders of the Company by the weighted average number of ordinary shares outstanding
during the period. Diluted EPS is determined by adjusting the profit or loss attributable to
ordinary shareholders and the weighted average number of ordinary shares outstanding for the
effects of all dilutive potential ordinary shares, which includes all stock options granted to
employees.

2.5 Property, plant and equipment
Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and
accumulated impairment losses, if any. Cost includes expenditures that are directly attributable
to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials
and other costs directly attributable to bringing the asset to a working condition for its intended
use. Borrowing costs that are directly attributable to the construction or production of a
qualifying asset are capitalized as part of the cost of that asset.

When parts of an item of property, plant and equipment have different useful lives, they are
accounted for as separate items (major components) of property, plant and equipment.

Gains and losses upon disposal of an item of property, plant and equipment are determined by
comparing the proceeds from disposal with the carrying amount of property, plant and
equipment and are recognized net within “other (income)/expense, net” in the income
statement.

The cost of replacing part of an item of property, plant and equipment is recognized in the
carrying amount of the item if it is probable that the future economic benefits embodied within
the part will flow to the Company and its cost can be measured reliably. The costs of repairs and
maintenance are recognized in the income statement as incurred.

Items of property, plant and equipment acquired through exchange of non-monetary assets are
measured at fair value, unless the exchange transaction lacks commercial substance or the fair
value of either the asset received or asset given up is not reliably measurable, in which case the
asset exchanged is recorded at the carrying amount of the asset given up.

Depreciation

Property, plant and equipment is depreciated under straight line method afterconsidering the
useful life''s and residual values at the time of acquisition and reviewedat end of each financial
year. The cost and related accumulated depreciation areeliminated from the financial
statements upon sale or retirement of the asset andthe resultant gains or losses are recognized
in the statement of profit and loss

2.6 Cash flow statements

Cash flows are reported using the indirect method, where by profit/(loss) before taxis adjusted
for the effects of transactions of a non- cash nature, any deferrals or accruals of past or future
operating cash receipts or payments and item of income or expenses associated with investing
or financing cash flows. The cash flows from operating, investing and financing activities of the
Company are segregated based on the available information.

2.7 Inventories

The fair value of inventories acquired in a business combination is determined based on its
estimated selling price in the ordinary course of business less the estimated costs of completion
and sale, and a reasonable profit margin based on the effort required to complete and sell the
inventories.

2.8 Impairment of non-financial assets

The carrying amounts of the Company''s non-financial assets, other than inventories and
deferred tax assets are reviewed at each reporting date to determine whether there is any
indication of impairment. If any such indication exists, then the asset''s recoverable amount is
estimated.

The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of
its value in use and its fair value less costs to sell. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset or the
cash-generating unit. For the purpose of impairment testing, assets are grouped together into
the smallest group of assets that generates cash inflows from continuing use that are largely
independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”).

An impairment loss is recognized in the income statement if the estimated recoverable amount
of an asset or its cash-generating unit is lower than its carrying amount. Impairment losses
recognized in prior periods are assessed at each reporting date for any indications that the loss
has decreased or no longer exists. An impairment loss is reversed if there has been a change in
the estimates used to determine the recoverable amount. An impairment loss is reversed only to
the extent that the asset''s carrying amount does not exceed the carrying amount that would
have been determined, net of depreciation or amortization, if no impairment loss had been
recognized. Goodwill that forms part of the carrying amount of an investment in an associate is
not recognized separately, and therefore is not tested for impairment separately. Instead, the
entire amount of the investment in an associate is tested for impairment as a single asset when
there is objective evidence that the investment in an associate may be impaired.

An impairment loss in respect of equity accounted investee is measured by comparing the
recoverable amount of investment with its carrying amount. An impairment loss is recognized in
the income statement, and reversed if there has been a favorable change in the estimates used
to determine the recoverable amount.

2.9 Employee benefits
Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is
recognized for the amount expected to be paid if the Company has a present legal or
constructive obligation to pay this amount as a result of past service provided by the employee
and the obligation can be estimated reliably.

Defined contribution plans

The Company''s contributions to defined contribution plans are charged to the income statement
as and when the services are received from the employees.

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Mar 31, 2015

1) . Basis of preparation of Financial Statements:

i. The accounts have been prepared to comply in all material aspects with applicable accounting prin- ciples in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 2013

ii. Financial Statements are based on historical cost and are prepared on accrual basis

2) . Fixed Assets

Fixed Assets are stated at original cost less accumulated depreciation. Cost includes invoice price and wherever applicable freight, duties and taxes, related interest on specific borrowings upto the date of acquisition /installation and expenses incidental to acquisition and installation but exclude recoveries.

3) . Depreciation :

Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II, except in respect of certain assets as disclosed in Accounting Policy on Depreciation, Amortisation and depletion. Accordingly the unamortised carrying value is being depreci- ated / amortised over the revised / remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted net of tax, in the opening balance Profit and Loss Account amounting to Rs. 551,289/-.

4) . Stock In Trade:

The Closing stock is valued at cost or net realisable value whichever is lower.

5) . Revenue Recognition:

The income from activities is recognized as income on the date of sale. The Company Provides for all expenses on accrual basis. Expenditure, the benefit of which accrues over a number of years are treated as deferred revenue expenses and is written off equally over the number of years during which such benefits accrued in installments over a period of ten years during which such benefits accrued to the Company.

6) . Miscellaneous Expenditure:

Pre Operative expenses are written off in equal installments over a period of five years.

7) . Taxes on Income:

Tax expense comprises of both current and deferred tax at the applicable enacted / substantively en- acted rates. Current tax represents the amount of income P tax payable / recoverable in respect of the taxable income / loss for the reporting period. Deferred tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originate in one period and capable of reversal in one or more subsequent periods.

8) Current liabilities include Rs. NIL payable to small scale and Ancillary industrial undertakings to the extent such parties have been identified from the available documents.

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Mar 31, 2014

1). Basis of preparation of Financial Statements:

i. The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 2013

ii. Financial Statements are based on historical cost and are prepared on accrual basis

2). Fixed Assets

Fixed Assets are stated at original cost less accumulated depreciation. Cost includes invoice price and wherever applicable freight, duties and taxes, related interest on specific borrowings upto the date of acquisition /installation and expenses incidental to acquisition and installation but exclude recoveries.

3). Depreciation:

Depreciation on fixed assets is provided on written down value method at the rates prescribed in schedule II of the Companies Act 2013. An asset whose written down value falls below Rs.5000/- is fully depreciated for the remaining balance.

4). Stock In Trade:

The Closing stock is valued at cost or net realisable value whichever is lower.

5). Revenue Recognition:

The income from activities is recognized as income on the date of sale. The Company Provides for all expenses on accrual basis. Expenditure, the benefit of which accrues over a number of years are treated as deferred revenue expenses and is written off equally over the number of years during which such benefits accrued in installments over a period of ten years during which such benefits accrued to the Company.

6). Miscellaneous Expenditure:

a). Pre Operative expenses are written off in equal installments over a period of five years.

b). It has been decided that clinical trail expenses to be write off over a period of six years commencing from the year of generation of revenue from the clinical study of the product developed.

7). Taxes on Income:

Tax expense comprises of both current and deferred tax at the applicable enacted / substantively enacted rates. Current tax represents the amount of income - tax payable / recoverable in respect of the taxable income / loss for the reporting period. Deferred tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originate in one period and capable of reversal in one or more subsequent periods.

8) Current liabilities include Rs. NIL payable to small scale and Ancillary industrial undertakings to the extent such parties have been identified from the available documents.

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Mar 31, 2012

1)Basis of preparation of Financial Statements:

i) The accounts have been prepared to comply in all material aspects with applicable accounting principles in India' the Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act' 1956. ii) Financial Statements are based on historical cost and are prepared on accrual basis.

2)Fixed Assets

Fixed Assets are stated at original cost less accumulated depreciation. Cost includes invoice price and wherever applicable freight' duties and taxes' related interest on specific borrowings upto the date of acquisition / installation and expenses incidental to acquisition and installation but exclude recoveries.

3)Depreciation:

Depreciation on fixed assets is provided on written down value method at the rates prescribed in schedule XIV of the Companies Act 1956. An asset whose written down value falls below Rs.5000/- is fully depreciated for the remaining balance.

4)Stock In Trade:

There is no closing stock as on 31-03-2012

5)Revenue Recognition:

The income from activities is recognized as income on the date of sale. The Company Provides for all expenses on accrual basis. Expenditure' the benefit of which accrues over a number of years are treated as deferred revenue expenses and is written off equally over the number of years during which such benefits accrued in installments over a period of ten years during which such benefits accrued to the Company. 6)Miscellaneous Expenditure:

a) Pre-operative Expenses are written off in equal installments over a period of five years.

b) It has been decided that clinical trial expenses to be write off over a period of six years commencing from the year of generation of revenue from the clinical study of the product developed.

7)Taxes on Income:

Tax expense comprises of both current and deferred tax at the applicable enacted/ substantively enacted rates. Current tax represents the amount of income-tax payable / recoverable in respect of the taxable income / loss for the reporting period. Defferred Tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originate in one period and capable of reversal in one or more subsequent periods.

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Mar 31, 2010

1) Basis of preparation of Financial Statements:

i. The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956.

ii. Financial Statements are based on historical cost and are prepared on accrual basis.

2)Fixed Assets

Fixed Assets are stated at original cost less accumulated depreciation. Cost includes invoice price and wherever applicable freight, duties and taxes, related interest on specific borrowings upto the date of acquisition / installation and expenses incidental to acquisition and installation but exclude recoveries.

3)Depreciation:

Depreciation on fixed assets is provided on written down value method at the rates prescribed in schedule XIV of the Companies Act 1956. An asset whose written down value falls below Rs.5000/- is fully depreciated for the remaining balance.

4)Stock In Trade:

There is closing stock as on 31-03-201 0 Rs. 26,1 5,203/-. 5)Revenue Recognition:

The income from activities is recognized as income on the date of sale. The Company Provides for all expenses on accrual basis. Expenditure, the benefit of which accrues over a number of years are treated as deferred revenue expenses and is written off equally over the number of years during which such benefits accrued in installments over a period of ten years during which such benefits accrued to the Company.

6)Miscellaneous Expenditure:

a) Preliminary and Public issue expenses are written off in equal installments over a period of ten years.

b) It has been decided that clinical trial expenses to be write off over a period of six years commencing from the year of generation of revenue from the clinical study of the product developed.

7)Provision For Taxation:

Since there is no profit for this financial year, provision for income tax is not made during the financial year.

8) Un Secured Loans :

Loans obtained from M/s. Jyothi Chits & Finances.