Notes to Accounts of Sanjivani paranteral Ltd.

Mar 31, 2025

i. Provisions

A provision is recognized when an enterprise has a present obligation (legal or constructive) as a result of past event and it
is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be
made of the amount of the obligation. Where the Company expects some or all of a provision to be reimbursed, the reim¬
bursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to a
provision is presented in the statement of profit or loss, net of any reimbursement.

If the effect of time value of money is material, provisions are discounted using a pre-tax rate that reflects, where appropriate,
the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of the time is
recognised as a finance cost.

j. Retirement and other employee benefits

The gratuity liability is defined benefit obligation and is provided on actual basis.

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit.
The company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the
unused entitlement that has accumulated at the reporting date.

k. 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

a) Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value
through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales
of financial assets that require delivery of assets within a time frame established by regulation or convention in the mar¬
ket place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase
or sell the asset.

b) Subsequent measurement

The Company determines the classification of its financial assets and liabilities at initial recognition. Financial assets
are classified in four categories:

• Debt instruments at amortised cost;

• Equity instruments measured at fair value through OCI

Debt instruments at amortised cost

A ‘debt instrument’ is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and inter¬
est (SPPI) on the principal amount outstanding.

This category is the most relevant to the Company. After initial measurement, such financial assets are subsequently mea¬
sured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included
in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss. This category
generally applies to trade and other receivables. For more information on receivables, refer to Note 6 and 29.

Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are
classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in other
comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument by-instru¬
ment basis. The classification is made on initial recognition and is irrevocable.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the P&L.

c) Derecognition

The Company derecognises a financial asset only when the contractual right to receive the cash flows from the asset ex¬
pires or it has transferred the financial asset and substantially all the risks and rewards of ownership of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through ar¬
rangement, it evaluates if and to what extent it has retained the risks and rewards of ownership.

d) Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition
of impairment loss on the following financial assets and credit risk exposure:

• Financial assets that are debt instruments, and are measured at amortised cost e.g., trade receivables;

• Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are
within the scope of Ind aS 11 and Ind AS 18

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables or contract
revenue receivables.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade
receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receiv¬
ables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated
and changes in the forward-looking estimates are analysed. On that basis, the Company estimates the following provision
matrix at the reporting date:

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the statement
of profit and loss (P&L). This amount is reflected under the head ‘other expenses’ in the P&L.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as loans and borrowings, payables as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings.

Subsequent measurement

The measurement of financial liabilities depends on their classification as follows:

Financial liabilities at amortised cost (loans and borrowings)

This is the most relevant category to the Company. After initial recognition, interest bearing loans and borrowings are subse¬
quently measured at amortised cost using the effective interest rate method. Gains and losses are recognised in the statement
of profit or loss when the liabilities are derecognised as well as through the effective interest rate method (EIR) amortisation
process.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an ex¬
isting financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing
liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and
the recognition of a new liability, and the difference in the respective carrying amounts is recognised in the statement of profit
or loss.

l. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original
maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined
above, net of outstanding bank overdrafts as they are considered an integral part of the company’s cash management.

m. Earnings per share

Basic earnings per share are 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. Partly paid equity shares are treated as a frac¬
tion of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during
the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events
such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have
changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders
and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential
equity shares.

n. Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is
not recognized because it is not probable that an outflow of resources will be required to settle the obligation. The Company
does not recognize a contingent liability but discloses its existence in the financial statements.

o. Segment Reporting - Identification of Segments:

An operating segment is a component of the Company that engages in business activities from which it may earn revenues
and incur expenses, whose operating results are regularly reviewed by the company’s management to make decisions for
which discrete financial information is available.

Based on the management approach as defined in Ind AS 108, the management evaluates the Company’s performance and
allocates resources based on an analysis of various performance indicators by business segments and geographic segments.

The Company is engaged in the business of manufacturing pharmaceutical products. All other activities of the Company re¬
volve around the main business. As such there are no separate primary reportable business segments as defined by AS 108
(Segmental Reporting).

p. Investments in Subsidiaries, Associates and Joint Ventures

A Subsidiary is an entity that is controlled by another entity. An investor controls an investee if and only if the investor has the
following; (i) Power over the investee, (ii) exposure, or rights, to variable returns from its involvement with the investee and (iii)
the ability to use its power over the investee to affect the amount of the investor’s returns.

An Associate is an entity over which the Company has significant influence. Significant influence is the power to participate in
the financial and operating policy decisions of the investee, but is not control or joint control over those policies.

A Joint Venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the
net assets of the Joint Venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only
when decisions about the relevant activities require unanimous consent of the parties sharing control.

The Company’s investments in its Subsidiaries, Associates and Joint Ventures are accounted at cost.

Description of the nature and purpose of each reserve within equity is as follows:

a. Capital Reserve

Capital Reserve was recognised on giving effect of Waiver of Loan settlement undertaken with Asset Reconstruction Company.

b. Share Premium

Share Premium is recognised as difference between price of issue of equity shares and face value of equity shares.

c. Retained Earnings

Retained earnings are the net profits / losses that the Company has earned till date and is net of amount transferred to other
reserves such as general reserves, amount distributed as dividend and adjustments, if any, in terms of Ind AS 101.

During the financial year 2023-24, the Company issued 6,00,000 share warrants to the Promoter, Mr. Ashwin Khemka, on a prefer¬
ential basis at Rs 135.10 per warrant, each convertible into one equity share of face value Rs 10. In accordance with SEBI (ICDR)
Regulations, 25% of the issue price, i.e., Rs 33.78 per warrant, aggregating to Rs 2,02,68,000 was received during FY 2023-24.

In FY 2024-25, 1,97,394 warrants were exercised and converted into equity shares upon receipt of the balance 75% of the issue
price (Rs 101.325 per share). The balance 4,02,606 warrants remain outstanding and are valid for conversion until 5th August, 2025.

c) Nature of CSR activities :

Nature of CSR activities : Health and hygiene and Promotion of education.

d) There is no CSR expenditure transaction with related party.

e) There is no provision made with respect to a liability incurred by entering into a contractual obligation.

Note No. 29. Capital Management

Capital includes equity shares and other reserves attributable to the equity shareholders. The primary objective of the Com¬
pany’s capital management is to ensure that it maintains a healthy capital ratios in order to support its business and max¬
imise shareholder value. The Group manages its capital structure and makes adjustments in light of changes in economic
conditions or its business requirements.

No changes were made in the objectives, policies or processes during the year ended March 31,2025.

The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Net debt is
calculated as loans and borrowings, trade payables, interest accrued on borrowings less cash and cash equivalents.

Note No 30. Financial risk management objectives and policies

The Company’s principal financial liabilities comprise loans and borrowings and trade and other payables. The main pur¬
pose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets has loan
and other receivables, trade and other receivables, and cash and short-term deposits that arrive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the
management of these risks. The Company’s senior management is responsible to ensure that Company’s financial risk ac¬
tivities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed
in accordance with the Company’s policies and risk objectives. The Company’s senior management oversees the appro¬
priate financial risk governance framework for the Company. It is the Company’s policy that no trading in derivatives for
speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these
risks, which are summarised below.

a) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises of interest rate risk and currency risk. Financial instruments affected by market risk
include: loans and borrowings and deposits, trade receivables and trade payables.

-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 chang¬
es 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 and lease obligations with fixed interest rates.”

b) Credit risk

Credit risk is the risk that the counterparty will not meet its obligations under a financial instrument or customer contact,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily for trade receivables)
and its financing activities, including deposits with banks and financial institutions and other financial instruments. Manage¬
ment has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. The Company uses a
practical expedient in computing the expected credit loss allowance for trade receivables based on ageing of the days the
receivables are due.”

c) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations
without incurring unacceptable losses. The Company’s objective is to at all times maintain optimum levels of liquidity to meet
its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash manage¬
ment system.

The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted
payments.

Note No 35. Additional Regulatory Requirement required under Schedule III

a) The Company has not revalued its Property, Plant and Equipment or any Intangible Assets.

b) The Company has not given Loans or advances in the nature of loans to promoters, directors, KMPs and the related
parties, that are repayable on demand or without specifying any terms or period of repayment.

c) The Company does not have any Capital Work in Progress (WIP), hence disclosure as required under Schedule III is not
applicable.

d) The company does not have intangible assets under development, hence disclosure as required under Schedule III is not
applicable.

e) The company has not been declared wilful defaulter by any bank or financial institution or government or other lender.

f) The Company has no relationship and transactions with struck off companies.

g) There are no charges or satisfaction which are yet to be registered with Registrar of Companies.

h) The Company does not have any subsidiaries and thus compliance with the number of layers prescribed under clause
(87) of Section 2 of the Companies Act, 2013 read with the companies (Restriction on number of layer) Rules, 2017 is not
applicable.

i) The Company has not entered in any scheme of arrangement under section 230 to 237 of Companies Act 2013.

j) The management represents and confirms that, to the best of it’s knowledge and belief, other than as disclosed in the
notes to the accounts, No funds have been advanced or loaned or invested (either from borrowed funds or share premium
or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
(“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

k) The management represents and confirms that, to the best of it’s knowledge and belief, other than as disclosed in the
notes to the accounts, No funds have been received by the Company from any person(s) or entity(ies), including foreign en¬
tities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note No 36. Significant accounting judgements, estimates and assumptions

The preparation of the Company’s financial statements requires management to make judgements, estimates and assump¬
tions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and
the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of assets or liabilities affected in future periods

Estimates and assumptions:

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, are described below. The Company based its assumptions and estimates on parameters available when the stand¬
alone financial statements were prepared. Such changes are reflected in the assumptions when they occur.”

a) Allowance for uncollectible trade receivables

Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for

estimated irrecoverable amounts. A large number of minor receivables is grouped into homogeneous groups and assessed
for impairment collectively. Individual trade receivables are written off when management deems them not to be collectible.

b) Contingent liability

The contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occur¬
rence or non-occurrence of one or more uncertain future events beyond the control of the Company. The Company evalu¬
ates the obligation through Probable, Possible or Remote model (‘PPR’). In making the evaluation for PPR, the Company
take into consideration the Industry perspective, legal and technical view, availability of documentation/agreements, inter¬
pretation of the matter, independent opinion from professionals (specific matters) etc. which can vary based on subsequent
events. The Company provides the liability in the books for probable cases, while possible cases are shown as contingent
liability. The remotes cases are disclosed in the financial statement, if material in nature.”

37. Figures for the previous year have been regrouped / reclassified / reinstated, wherever considered necessary.

As Per Our Report Of Even Date For & On Behalf Of Board Of Directors

For M/s R.B. Gohil & Co.

Chartered Accountants
FRN :- 119360W

(Raghubha B Gohil) Ashwani Khemka Mrunmai Sarvankar Pritesh Jain

Partner Chairman & Director Chief Financial Officer

Managing Director

Membership No.104997

UDIN : 25104997BMGEST3635 DIN : 00337118 DIN : 08942106

Place : Mumbai
Dated : 27^th May 2025

---

Mar 31, 2024

Note 29: Corporate Social responsibility (CSR)

The provisions of Section 135 in respect of CSR are not applicable to the Company during the year and are applicable from next financial year.

Note No. 30. Capital Management

Capital includes equity shares and other reserves attributable to the equity shareholders. The primary objective of the Company’s capital management is to ensure that it maintains a healthy capital ratios in order to support its business and maximise shareholder value. The Group manages its capital structure and makes adjustments in light of changes in economic conditions or its business requirements.

“No changes were made in the objectives, policies or processes during the year ended March 31, 2024. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Net debt is calculated as loans and borrowings, trade payables, interest accrued on borrowings less cash and cash equivalents.”

Note No 31. Financial risk management objectives and policies

“The Company’s principal financial liabilities comprise loans and borrowings and trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets has loan and other receivables, trade and other receivables, and cash and short-term deposits that arrive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management is responsible to ensure that Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Company’s senior management oversees the appropriate financial risk governance framework for the Company. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.”

a) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of interest rate risk and currency risk. Financial instruments affected by market risk include: loans and borrowings and deposits, trade receivables and trade payables.

- 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 and lease obligations with fixed interest rates.”

b) Credit risk

Credit risk is the risk that the counterparty will not meet its obligations under a financial instrument or customer contact, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily for trade receivables) and its financing activities, including deposits with banks and financial institutions and other financial instruments. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. The Company uses a practical expedient in computing the expected credit loss allowance for trade receivables based on ageing of the days the receivables are due.

Ageing of the gross receivables

c) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company’s objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system.

The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.

Note No 35.

According to the information available with the management, on the basis of intimation received from its suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006, the Company has amounts due to micro and small enterprises under the said Act as at March 31,2024 as follows :

a. The Company has not revalued its Property, Plant and Equipment or any Intangible Assets.

b. The Company has not given Loans or advances in the nature of loans to promoters, directors, KMPs and the related parties, that are repayable on demand or without specifying any terms or period of repayment.

c. The Company does not have any Capital Work in Progress (WIP), hence disclosure as required under Schedule III is not applicable.

d. TotalThe company does not have intangible assets under development, hence disclosure as required under Schedule III is not applicable.

e. The company has not been declared wilful defaulter by any bank or financial institution or government or other lender.

f. The Company has no relationship and transactions with struck off companies.

g. There are no charges or satisfaction which are yet to be registered with Registrar of Companies.

h. The Company does not have any subsidiaries and thus compliance with the number of layers prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with the companies (Restriction on number of layer) Rules, 2017 is not applicable.

i. The Company has not entered in any scheme of arrangement under section 230 to 237 of Companies Act 2013.

j. The management represents and confirms that, to the best of it’s knowledge and belief, other than as disclosed in the notes to the accounts, No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

k. The management represents and confirms that, to the best of it’s knowledge and belief, other than as disclosed in the notes to the accounts, No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note No 37. Significant accounting judgements, estimates and assumptions

The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods

Estimates and assumptions:

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the standalone financial statements were prepared. Such changes are reflected in the assumptions when they occur.”

a) Allowance for uncollectible trade receivables

Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts. A large number of minor receivables is grouped into homogeneous groups and assessed for impairment collectively. Individual trade receivables are written off when management deems them not to be collectible.

b) Contingent liability

The contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company. The Company evaluates the obligation through Probable, Possible or Remote model (‘PPR’). In making the evaluation for PPR, the Company take into consideration the Industry perspective, legal and technical view, availability of documentation/agreements, interpretation of the matter, independent opinion from professionals (specific matters) etc. which can vary based on subsequent events. The Company provides the liability in the books for probable cases, while possible cases are shown as contingent liability. The remotes cases are disclosed in the financial statement, if material in nature.”

Note No 38.

Figures for the previous year have been regrouped / reclassified / reinstated, wherever considered necessary.

---

Mar 31, 2023

I. Provisions

A provision is recognized when an enterprise has a present obligation (legal or constructive) as a result of past
event and it is probable that an outflow of resources will be required to settle the obligation, in respect of
which a reliable estimate can be made of the amount of the obligation. Where the Company expects some or
all of a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the
reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit
or loss, net of any reimbursement.

If the effect of time value of money is material, provisions are discounted using a pre-tax rate that reflects,
where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision
due to the passage of the time is recognised as a finance cost.

j. Retirement and other employee benefits

The gratuity liability is defined benefit obligation and is provided on actual basis.

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term
employee benefit. The company measures the expected cost of such absences as the additional amount that
it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

k. 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

a) Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair
value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
Purchases or sales of financial assets that require delivery of assets within a time frame established by
regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the
date that the Company commits to purchase or sell the asset.

b) Subsequent measurement

The Company determines the classification of its financial assets and liabilities at initial recognition. Financial
assets are classified in four categories:

• Debt instruments at amortised cost;

• Equity instruments measured at fair value through OCI

Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.

This category is the most relevant to the Company. After initial measurement, such financial assets are

subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from
impairment are recognised in the profit or loss. This category generally applies to trade and other receivables.
For more information on receivables, refer to Note 6 and 29.

Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for
trading are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable
election to present in other comprehensive income subsequent changes in the fair value. The Company makes
such election on an instrument by-instrument basis. The classification is made on initial recognition and is
irrevocable.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized
in the P&L.

c) Derecognition

The Company derecognises a financial asset only when the contractual right to receive the cash flows from the
asset expires or it has transferred the financial asset and substantially all the risks and rewards of ownership of
the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass¬
through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership.

d) Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss on the following financial assets and credit risk exposure:

• Financial assets that are debt instruments, and are measured at amortised cost e.g., trade receivables;

• Trade receivables or any contractual right to receive cash or another financial asset that result from
transactions that are within the scope of Ind AS 11 and Ind AS 18

The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables
or contract revenue receivables.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it
recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial
recognition.

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on
portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over
the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting
date, the historical observed default rates are updated and changes in the forward-looking estimates are
analysed. On that basis, the Company estimates the following provision matrix at the reporting date:

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in
the statement of profit and loss (P&L). This amount is reflected under the head ''other expenses'' in the P&L.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as loans and borrowings, payables as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings.

Subsequent measurement

The measurement of financial liabilities depends on their classification as follows:

Financial liabilities at amortised cost (loans and borrowings)

This is the most relevant category to the Company. After initial recognition, interest bearing loans and
borrowings are subsequently measured at amortised cost using the effective interest rate method. Gains and
losses are recognised in the statement of profit or loss when the liabilities are derecognised as well as through
the effective interest rate method (EIR) amortisation process.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially modified, such an exchange or modification is
treated as a derecognition of the original liability and the recognition of a new liability, and the difference in
the respective carrying amounts is recognised in the statement of profit or loss.

l. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the
company''s cash management.

m. Earnings per share

Basic earnings per share are 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. Partly paid
equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in
dividends relative to a fully paid equity share during the reporting period. The weighted average number of
equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a
rights issue, share split, and reverse share split (consolidation of shares) that have changed the number of
equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the period are adjusted
for the effects of all dilutive potential equity shares.

n. Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company
or a present obligation that is not recognized because it is not probable that an outflow of resources will be
required to settle the obligation. The Company does not recognize a contingent liability but discloses its
existence in the financial statements.

o. Segment Reporting - Identification of Segments:

An operating segment is a component of the Company that engages in business activities from which it may
earn revenues and incur expenses, whose operating results are regularly reviewed by the company''s
management to make decisions for which discrete financial information is available.

Based on the management approach as defined in Ind AS 108, the management evaluates the Company''s
performance and allocates resources based on an analysis of various performance indicators by business
segments and geographic segments.

The Company is engaged in the business of manufacturing pharmaceutical products. All other activities of the
Company revolve around the main business. As such there are no separate primary reportable business
segments as defined by AS 108 (Segmental Reporting).

Note No. 29. Capital Management

Capital includes equity shares and other reserves attributable to the equity shareholders. The primary objective of
the Company''s capital management is to ensure that it maintains a healthy capital ratios in order to support its
business and maximise shareholder value. The Group manages its capital structure and makes adjustments in light
of changes in economic conditions or its business requirements.

No changes were made in the objectives, policies or processess during the year ended March 31, 2023. The
Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Net debt is
calculated as loans and borrowings, trade payables, interest accrued on borrowings less cash and cash equivalents.

Note No. 30. Financial risk management objectives and policies

The Company''s principal financial liabilities comprise loans and borrowings and trade and other payables. The
main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal
financial assets has loan and other receivables, trade and other receivables, and cash and short-term deposits that
arrive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees
the management of these risks. The Company''s senior management is responsible to ensure that Company''s
financial risk activities are governed by appropriate policies and procedures and that financial risks are identified,
measured and managed in accordance with the Company''s policies and risk objectives. The Company''s senior
management oversees the appropriate financial risk governance framework for the Company. It is the Company''s
policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews
and agrees policies for managing each of these risks, which are summarised below.

a) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises of interest rate risk and currency risk. Financial instruments
affected by market risk include: loans and borrowings and deposits, trade receivables and trade payables.

- 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 and lease obligations with fixed interest rates.

b) Credit risk

Credit risk is the risk that the counterparty will not meet its obligations under a financial instrument or customer
contact, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily for
trade receivables) and its financing activities, including deposits with banks and financial institutions and other
financial instruments. Management has a credit policy in place and the exposure to credit risk is monitored on an
ongoing basis. The Company uses a practical expedient in computing the expected credit loss allowance for trade
receivables based on ageing of the days the receivables are due.

Note No. 35. Additional Regulatory Requirement required under Schedule III

a) The Company has not revalued its Property, Plant and Equipment or any Intangible Assets.

b) The Company has not given Loans or advances in the nature of loans to promoters, directors, KMPs and the
related parties, that are repayable on demand or without specifying any terms or period of repayment.

c) The Company does not have any Capital Work in Progress (WIP), hence disclosure as required under Schedule
III is not applicable.

d) The company does not have intangible assets under development, hence disclosure as required under Schedule
III is not applicable.

e) The company has not been declared wilful defaulter by any bank or financial institution or government or other
lender.

f) The Company has no relationship and transactions with struck off companies.

g) There are no charges or satisfaction which are yet to be registered with Registrar of Companies.

h) The Company does not have any subsidiaries and thus compliance with the number of layers prescribed under
clause (87) of Section 2 of the Companies Act, 2013 read with the companies (Restriction on number of layer)
Rules, 2017 is not applicable.

i) The Company has not entered in any scheme of arrangement under section 230 to 237 of Companies Act 2013.

j) The management representes and confirms that, to the best of it''s knowledge and belief, other than as disclosed

in the notes to the accounts, No funds have been advanced or loaned or invested (either from borrowed funds or
share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies),
including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise,
that the Intermediary shall, 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 provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries.

k) The management representes and confirms that, to the best of it''s knowledge and belief, other than as disclosed
in the notes to the accounts, No funds have been received by the Company from any person(s) or entity(ies),
including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise,
that the Company shall, 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 provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries.

Note No. 36. Significant accounting judgements, estimates and assumptions

The preparation of the Company''s financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future
periods

Estimates and assumptions:

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date,
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the
next financial year, are described below. The Company based its assumptions and estimates on parameters
available when the standalone financial statements were prepared. Such changes are reflected in the assumptions
when they occur.

a) Allowance for uncollectible trade receivables

Trade receivables do not carry any interest and are stated at their nominal value as reduced by
appropriate allowances for estimated irrecoverable amounts. A large number of minor receivables is
grouped into homogeneous groups and assessed for impairment collectively. Individual trade
receivables are written off when management deems them not to be collectible.

b) Contingent liability

The contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the
control of the Company. The Company evaluates the obligation through Probable, Possible or Remote
model (‘PPR’). In making the evaluation for PPR, the Company take into consideration the Industry
perspective, legal and technical view, availability of documentation/agreements, interpretation of the
matter, independent opinion from professionals (specific matters) etc. which can vary based on
subsequent events. The Company provides the liability in the books for probable cases, while possible
cases are shown as contingent liability. The remotes cases are disclosed in the financial statement, if
material in nature.

Note No. 37. Figures for the previous year have been regrouped / reclassified / reinstated, wherever
considered necessary.

As Per Our Report Of Even Date For & On Behalf Of Board Of Directors

For M/s R.B. Gohil & Co.

Chartered Accountants
FRN :- 119360W

(Raghubha B Gohil) Ashwani Khemka Mrunmai

Sarvankar

Partner Chairman & Director

Director Membership No.104997 Managing Director

UDIN :

Place : Mumbai DIN : 00337118 DIN :

07173011

Dated : 06th May 2023

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Mar 31, 2015

Terms Loans are Secured by Hypothecation of Stock, Book Debts and Fixed Assets.

Vehicle Loans are secured against vehicle acquired under the scheme.

Secured Loans from Banks are payable in Equal Monthly Installments upto 31st October, 2018.

Rate of Interest on Secured Term Loans vary between 13% p.a. to 15.25% p.a.

Rate of interest on Secured Vehicle Loan is 10.50% p.a.

1. CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)

PARTICULARS 31.03.2015

Amount of Amount Paid Contingent Liability

Excise Duty 855,875 855,875

PARTICULARS 31.03.2014

Amount of Amount Paid Contingent Liability

Excise Duty 855,875 855,875

A) Related Party Where Control Exits

i) Key Management Personel - Ashwani Khemka - Chairman & Managing Director

B) Details Of Related Parties With Whom Transactions Have Taken Place During The Year

i) Ashwani Khemka - Chairman & Managing Director

ii) Mrs. Naina A. Khemka - Relative of Managing Director

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Mar 31, 2014

NOTE NO. 1 :- CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)

PARTICULARS 31.03.2014 31.03.2013 Amount of Amount paid Amount of Amount Paid Contingent Contingent Liability Liability

Excise Duty 855,875 855,875 855,875 855,875

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Mar 31, 2013

NOTE NO. 1 CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)

PARTICULARS 31.03.2013 31.03.2012_

Amount of Amount Paid Amount of Amount Paid Contingent Liability Contingent Liability

Excise Duty 855,875 855,875 855,875 855,875



A) Related Party Where Control Exits

i) Key Management Personel - Ashwani Khemka - Chairman & Managing Director

B) Details Of Related Parties With Whom Transactions Have Taken Place During The Year

i) Ashwani Khemka - Chairman & Managing Director

ii) Mrs. Naina A. Khemka - Relative of Managing Director

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Mar 31, 2012

Note The Credit Period Given to Customer depends on conditions in sales order and other market related factors so the company have taken standard credit period of 90 Days for above disclosure.

NOTE NO. 1 CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)

PARTICULARS 31.03.2012 31.03.2011

Amount of Amount Paid Amount of Amount Paid Contingent Liability Contingent Liability

Excise Duty 855,875 855,875 855,875 855,875

NOTE NO. 2 RELATED PARTY DISCLOSURES

A) Related Party Where Control Exits

i) Key Management Personel - Ashwin Khemka Chairman & Managing Director

B) Details Of Related Parties With Whom Transactions Have Taken Place During The Year

i) Ashwin Khemka - Chairman & Managing Director

ii) Mrs. Naina A. Khemka - Relative of Managing Director

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Mar 31, 2011

1) Contingent liabilities not provided for:

An amount of Rs. 855875/- is paid in protest for an apeal peding before the CESTAT.

2. Quantitative Details : (values in lakhs)

a) Licenced Capacity Not Applicable

b) Installed Capacity (Per Annum) 850.00 Lakhs units of Vials 1000 Milion units of Tablets

3) Previous year's figures have been regrouped or reclassified as necessary for better presentation.

---

Mar 31, 2010

1) Contingent liabilities not provided for:

An amount of Rs.855875 is paid in protest for an apeal peding before the CESTAT.

2) Movement of deferred tax provision/adjustment in accordance with Accounting Standard - 22 " Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India:-

Deferred Tax Effect

1. Difference between Tax and Book Depreciation 77,589,581

2. Value of Closing Stock between books and Income Tax Act. (1,775,999)

75,813,582

3) Previous years figures have been regrouped or reclassified as necessary for better presentation.