Accounting Policies of Kabra Drugs Ltd. Company

Mar 31, 2024

Statements of significant accounting policies and other explanatory notes form part of the balance sheet and statement
of profit and loss.

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.

The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of directors is subject to the approval
of the shareholders in ensuing Annual General Meeting. In event of liquidation of the Company, the holders of equity shares would 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.

General Information

Kabra Drugs Limited is a limited company incorporated under The Companies Act, 1956 on 22^nd August 1989
having its registered office at 270 Shastri Market Indore, MP. Company is presently engaged in the business of
Permaculture manufacturing and trading in pharma related products. The company is a public limited Company
and its shares are listed on Bombay stock exchange (BSE).

Basis of preparation

The financial statements of the Company have been prepared in accordance with the generally accepted
accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all
material respects with the accounting standards notified under Section 133 of the Companies Act, 2013, read
together with paragraph 7 of the Companies (Accounts) Rules, 2014 and Companies (Accounting Standards)
Amendment Rules, 2016. The financial statements have been prepared on an accrual basis and under the historical
cost convention. The accounting policies adopted in the preparation of financial statements are consistent with
those of previous year, except for the change in accounting policy explained below.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires
estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the
financial statements and the reported amount of revenue and expenses during the reporting period. Differences
between actual results and estimates are recognised in the period in which the results are known / materialized.

Interest and Dividend

Interest income is recognized on accrual basis using the effective interest method. No Dividend income is earned
by the company.

Basis of preparation

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India
(Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards
notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 and
Companies (Accounting Standards) Amendment Rules, 2016. The financial statements have been prepared on an accrual basis and under
the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of
previous year, except for the change in accounting policy explained below.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions
to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of
revenue and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which
the results are known / materialised.

Note: 15 Significant Accounting Policies:

a. General:

i) Accounting policies not specifically referred to otherwise are in consistence with earlier year and in consonance with generally
accepted accounting principles.

ii) Expenses and income considered payable and receivable respectively are accounted for on accrual basis.

b. Valuation of Inventories: There is no Inventories in the company.

c. Fixed assets and depreciation:

i. Fixed Assets are stated at cost of acquisition less accumulated depreciation and is inclusive of freight taxes, and
incidental expenses relating to such acquisition.

ii. Depreciation on property, plant and equipment is provided on Straight-line method (SLM) as per the useful life of the
assets in the manner as specified in Schedule II to the Companies Act, 2013. The estimated useful life of assets and
estimated residual value is taken as prescribed under Schedule II to the Companies Act, 2013..

d. Investments: Investments are valued at cost. In determining cost FIFO method is used.

e. Foreign currency Transactions: There is no foreign currency transaction.

f. Retirement Benefits: Provident fund and employees state insurance scheme contribution is not applicable to the company.

g. Taxes on Income:

Current Tax: Provision for Income-Tax is determined in accordance with the provisions of Income-tax Act 1961.

Deferred Tax Provision: Deferred tax is recognized, on timing difference, being the difference between the taxable incomes and
accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Note: 16 Balances of Sundry Debtors, Creditors, Loans and Advances are subject to confirmation and reconciliation.

Note: 17 In the opinion of the Board of directors, the current assets, Loans & advances are approximately of the value stated if realized
in the ordinary course of business. The provision of all known liabilities is adequate and not in excess of the amount reasonably
necessary.

Note: 18 No Remuneration paid to the directors during the year.

Note: 23 previous year figures have been regrouped and recasted wherever necessary.

Signature to Notes ''1'' to ''23''

As per our report on even date

FOR RISHI SEKHRI & ASSOCIATES FOR & ON BEHALF OF THE BOARD

CHARTERED ACCOUNTANTS
FIRM NO: 128216 W

Sd/- Sd/- Sd/-

(CA RISHI SEKHRI) KN.ANAND B V ANANTH KUMAR

PARTNER DIRECTOR WTD & CFO

M.No. 126656 DIN:03230186 DIN:08644948

PLACE: Mumbai DATE : 30.05.2024

DATE : 30.05.2024

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Mar 31, 2015

Basis of Preparation

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1 Accounting Policies

a Use of Estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. 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 requiring a material adjustment to the carrying amounts of assets or liabilities in future period.

b Fixed Assets - All fixed assets are stated at cost of acquisition including installation and incidental cost. No addtion/deletion took c Intangible Assets- The company has not having any Intangible Assets during the year.

Depreciation - Depreciation is provided from date of use on straight line method as per the provisions of schedule 14 of the companies Act 1956 and Deprecation charges as per Compnay act 2013.

e Lease - the Company has paid lease rent to DIC for land and account for as per payment basis.

f Impairment of Assets- The company has not having impairment of assets.

g Government Grant & Subsidies -: The Company has not registered for Govt. Granth and Subsidies , during the year .

h Investments - The company has not having investments during the year

i Inventories :- Inventories are valued as certified by management on following basis. Raw Material. At cost Finish Goods

- At Revenue Recognition- Sales are recognized on dispatch of goods to the customers , which normally results in transfer fo title in the goods. The company has only one business segment " MANUFACTURING OF DRUGS " Further , since virtually all sales are effected in the domestic market , there is only one geographical segment .

Therefore , the disclosure requirements of " SEGMENT REPORTING " are not applicable to the company. Related party disclosures as required as per accounting standard ( AS_18 on "

Related party disclosures " issued by the Institute of Chartered Accountant of India , are as below.

k Foreign Currency Transaction -: The company has not incurred any transaction in foreign currency during the year .

Retirement and Employee Benefits

- Contribution of Provident fund and ESIC are charged to P & L a/c on actual basis and provision l for gratuity , leave encasement etc. Retirement benefits are charges to P & L a/c on payment basis. The company has not practice to create separate reserve on actual basis. mIncome Taxes.

- Payment and provisions of Income Tax has been done as per .

Provision & Contingent Liabilities - These are separately disclosed in the financial statement by way of notes to the accounts. n Contingent liabilities are not recognized but are disclosed in the notes, contingent assets are neighed recognized nor disclosed in the financial statement.

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Mar 31, 2014

A Use of Estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. 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 requiring a material adjustment to the carrying amounts of assets or liabilities in future period.

b Fixed Assets - All fixed assets are stated at cost of acquisition including installation and incidental cost. No addtion/deletion

c Intangible Assets- The company has not having any Intangible Assest during the year.

depreiation - Depreciation is provided from date of use on staight line method as per the provisions of schedule 14 of the d companes Act 1956.

e Lease - the Company has paid lease rent to DIC for land and account for as per payment basis. f Impairment of Assets- The compnay has not having impairment of assest.

g Government Grant & Subsidies -: The Company has not registered for Govt.Granth and Subitiees , during the year . h Investments - The compnay has not having intestments during the year .

i Inventories -: Inventories are valued as certified by management on following basis. Raw Material. At cost Finish Goods - Revenue Recognition- Sales are recognised on dispatch of goods to the customers, which normally results in transfer fo title in the goods. The company has only one business segment " MANUFACTURING OF DRUGS " Furtner , since virtually all sales are effected in the domestic market , there is only one geographical segment . Therefore , the disclosure reqqirements of " j SEGMENT REPORTING " are not applicable to the company. Related party disclosures as required as per accounting standard ( AS_18 on " Related party discloures " issued by the Institute of Chartered Accoutnat of India , are as below.

k Foreign Currency Transaction -: The company has not incurred any transaction in foreign currency during the year .

Retirement and Employee Benefits - Contribution of Provident fund and ESIC are charged to P & L a/c on actual basis and l provision for gratuity , leave encasement etc. Retirement benefits are charges to P & L a/c on payment basis. The company has not practice to create separate reserve on actual basis.

m Income Taxes.- Payment and provisions of Income Tax has been done as per .

Provision & Contingent Liabilities - These are separately disclosed in the financial statement by way of notes to the accounts. n Contingent liabilties are not recognazed but are disclosed in the notes, contingent assets are neither recognized nor disclosed in the financial statement.

O. CONTINGENT LIABILITIES AS ON BALANCE SHEET DATE. 1] HON, BLE M.P. has given probable liability under sales tax and excise acts on purchase of denatured spirit relating to 1991-1992 . High Court has granted a stay. (Rs. 47.50 Lacs) Estimated amount due.

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Mar 31, 2010

Financial statement have been prepared under historical cost convention on accrual basis of accounting in accordance with the generally accepted accounting principles in India and the provision of the Companies Act, 1956 as adopted consistently by the company.

(1) SYSTEM OF ACCOUNTING

The company adopts mercantile system of accounting and the financial statements are prepared under historical cost convention and on accrual basis. Retirement benefit, post assessments demands, claims, subsidy, and uncertain routine exp. And income to the extent these are not material, are accounted for on cash basis.

(2) USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reported period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized

(3) FIXED ASSETS AND DEPRECIATION

All fixed assets are stated at cost of acquisition including installation and incidental costs. Depreciation is provided from date of use on straight line method as per the provisions of schedule 14 of the companies Act, 1956.

No addition / deletion took place in fixed assets during the year. No amortization has been made in respect of premium paid for the leasehold land since grant of lease is for a long period. Depreciation on Bio-project Assets is not provided in the accounts since the development could not be commercialized.

(4) INVENTORIES

Inventories are valued as certified by management on following basis.

Raw material and packing materials At Cost

Finished goods At estimated realizable value

Work in process, stores and spares etc. At estimated realizable value

Obsolete, defective and unserviceable stocks are provided for, where required.

(5) TRANSACTION IN FOREIGN CURRENCY

The company has not incurred any transaction in foreign currency during the year.

(6) CONTIGENT LIABILITIES

These are separately disclosed in the financial statements by way of notes to the accounts. Contingent liabilities are not recognized but are disclosed in the notes, contingent assets are neither recognized nor disclosed in the financial statements.

(7) CONTINGENT LIABILITIES AS ON BALANCE SHEET DATE

a) HON. M.P has given probable liability under sales tax and excise acts on purchase of denatured spirit, relating to 1991-92. High Court has granted a stay. ( Rs.47.50 lacs) Estimated amount due.

b) Case relating to dismissal of 21 workers in 1997. Labor court has ruled against the company ordering payment of entire salary to employees for Rs. 6153705/- for the intermittent period. The company has preferred an appeal in the high court.

(8) PROVISION FOR TAXATIONS

Deferred tax resulting from timing difference between book and taxable profits is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax assets is recognized and carried forward only to the extent that there is a reasonable certainty that asset will be realized in future.

(9) BALANCE CONFIRMATION

Balance confirmation from various parties were not obtained and these are as per books and believed as correct as per management.

(10) CURRENT ASSETS

The current assets, loan and advances have a value on realisation in the ordinary course of business, at least equal to the amount at which these are stated in balance sheet and the provision for all known liabilities have been adequately made and not in excess of the amount reasonably necessary.

(11) REVENUE RECOGNITION

Sales are recognised on dispatch of goods to the customers, which normally results in transfer of title in the goods..

(12) The company has only one business segment Manufacturing of Drugs. Further, since virtually all sales are effected in the domestic market, there is only one geographical segment. Therefore, the disclosure requirements of "Segment Reporting" are not applicable to the company.