Accounting Policies of Unjha Formulations Ltd. Company

Mar 31, 2025

1.Significant accounting policies
1.1 Basis of measurement

a)Compllance with INDAS

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under
Section 133 of the Companies Act. 2013 (the Act) read with (Companies (Indian Accounting Standards) Rules,
2015]as amended and other relevant provisions of the Act and guidelines issued by the Securities andExchange Board of
India (SEBI).

bJBasis for measurement

The IND AS Financial Statements have been prepared on a going concern basis using historical cost convention and
on an accrual method of accounting except for the case of duty drawback income (see note 1.2)

c)Current and noncurrent classification

The assets and liabilities reported in the balance sheet are classified on a "current/noncurrent basis”. Currentassets,
which include cash and cash equivalents are assets that are intended to be realized, sold or consumed during the
normal operating cycle of the Company. A liability is current when it is expected to be settled in normaloperating
cycle, held primarily for the purpose of trading, it is due to be settled wilhin twelve months after the reporting date
and there is no unconditional right to deter the settlement of the liability tor at least twelve months atter the
reporting period.. Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.Basod on the
nature of products and the time between the acquisition of assets for processing and their realisatiomn cash and
cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of
current/noncurrent classification of assets and liabilities.

1.2Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable, net of discounts, volume rebates,
outgoing sales taxes and other indirect taxes excluding excise duty.

Revenue from sales is recognized when all significant risks and rewards of ownership of the commodity sold are
transferred to the customer which generally coincides with delivery.

Other income

i) Interest Income is recognised using the time proportion method, based on rate slmpllcit in the transaction

ii) Duty drawback income and other similar schemesis recognised on cash basis

iii) All other income is recognised when no significantun certainity as to its determination or realisation exsists

1.3Property plantand equipments

The initial cost of property, plant and equipment comprises its purchase price, including import duties and non-
refundable purchase taxes, attributable borrowing cost and any other directly attributable costs of bringing an asset
to working condition and location for its intended use.

Expenditure incurred after the property, plant and equipment have been put into operation, such as repairs and
maintenance, are normally charged to the statements of profit and loss in the period in which the costs are incurred.
Major inspection and overhaul expenditure is capitalized if the recognition criteria are met.

When a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a
replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized m the
statement of profit and loss as incurred.

Gains and losses on 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/other expenses in statement of profit and loss.

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal
or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition
of the asset (calculated asthe difference between the net disposal proceeds and the carrying amount ofthe assetjis
included in the statement of profit and loss, when the asset Is derecognized.

Depreciation:

Property, plant and equipment are stated at cost less accumulated depreciation and any provision for Impairment.
Depreciation commences when the assets are ready for their intended use.

Depreciation is calculated on the depreciable amount, which is the cost of an asset less Its residual value.
Depreciation is provided at rates calculated to write off the cost, less estimated residual value, of each asset on a
written down value basis.

Depreciation methods, useful lives and residual values are reviewed at each financial year end and changes in
estimates, if any, are accounted for prospectively.

1.4Financial Instruments
a)Financial assets

Initial recognition and measurement

Financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition
or issue of financial assets (other than financial assets at fair value through profit or loss) are added to or deducted
from the fair value of the financial assets, as appropriate, on Initial recognition. Transaction costs
directly attributable to the acquisition of financial assets at fairvalue through profit or loss are recognised immediately
In profit or loss.

Subsequent measurement

Subsequent measurement of financial assets is described below-

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective
interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the ElR.Tbe EIRamortization isincluded in finance incomein
the statement of profit and loss. The losses arising from impairment are recognized in the statement of profit and
loss. This category generally applies to trade and other receivables.

However, reporting entity does not have such financial assets to be measured at amortized cost using EIR method.
De recognition of financial assets

A financial asset Is primarilyde-recognised when the rights to receive cashflows from the asset have expiredor the
Company has transfer redits rights to receive cashflows from the asset.

b) Financial liabilities

Initial recognition and measurement

All financial liabilities are recognised initially at fair value, in the case of financial liabilities not recorded at fair value
through profit & loss (FVTPL), the transaction costs that are attributable to the acquisition of the Tmancial liabilities
are also adjusted. These liabilities are classified as amortised cost.

Subsequent measurement

These liabilities includes borrowings and deposits Subsequent to initial recognition, these liabilities are measured at
amortised cost using the effective interest method.

De-recognition of financial liabilities

A financial liability is de-recogmsedwhenthe 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 the
derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying
amounts is recognised in the statement of profit or loss.

c) Off setting of financial instrument

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to
realise the assets and settle the liabilities simultaneously.

l.SImpairment of assets
a)Financial assets

A financial asset is assessed at each reporting date to determine whether there is any objective evidence indicating
impairment. A financial asset Is considered to be impaired, if objective evidence indicates that one or more events
had a negative effect on the estimated future cash flows of that asset.

b)Non Financial assets

The carrying amount of non-financial assets are assessed 3t each reporting date to ascertain whether there is any
Indication of impairment. If any such indication exists, then the assets’ recoverable amount is estimated. An
Impairment loss Is recognised as an expense in the statement of profit and loss, for the amount by which the assets''
carrying amount exceeds its recoverable amount. The recoverable amount Is the higher of an assets'' fair value less
cost to sell and value in use. Value in use is ascertained through discounting of the estimated future cash Power of
Empathy, Truth of Science Annual Report 2022-2073203 flows using a discount rate that reflects the current market
assessments of the time value of money and the risk specific to the assets.

An impairment loss is reversed if there is any change in the estimates used to determine the recoverable amount.An
Impairment loss is reversed only to the extent that the assets'' carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or amortisation, if no impairment has been recognised.

1.6lnventories

i) Raw materials are valued at lower of cost and net realisable value. Cost of raw material Includes , packing material
and stores, spares and consumables including all charges incurred In bringing the goods to the warehouse.

ii) Workin progress and finished goods are valued at lower of cost and net realisable value

iii) Packing material are valued at cost

1.7Cash and cash equivelant

Cash and C3sh equivalents comprises cash on hand and at banks, short-term deposits (with an original maturity
ofthree months or less from the date of acquisition), and which are subject to insignificant risk of changes in value.

For the purpose of statement of cashflows,cash and cash equivalents consist of cash and short termdeposits, as
defined above, as they are considered an integral part of the company''scash management.

1.8 Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are
capitaliredduringtheperiod oftime that isnecessaryto complete and prepare theasset for its intendeduse or sale. A
qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other
borrowing costs are charged to the Statement of Profit and Loss as incurred.

1.9Earningpershnre

Basic earnings per share Is computed by dividing the profit or loss attributable to equity shareholders of the
Company by the weighted average number of equity shares outstanding during the year. Diluted earning per
share is calculated by dividing the profit or loss attributable to the owners of the company by weighted average number of
equity shares considered for deriving basic earning per share and weighted average number of equity shares that
could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares
are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average
market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as at the
beginning of the period, unless issued at a later date. Dilutive potentialequity shares are determined independently
for each period presented. The number of equity shares are adjusted for share splits and bonus shares, as
appropriate.

l.lOEmployee benefit schemes

a) Defined contribution plan

The Company''s contribution to provident fund and employee st3te insurance scheme are defined contribution plans
and are charged as an expense based on the amount of contribution required to be made as and when services are
rendered by the employees.

b) Short term employee benefits

Short-term employee benefits comprise of employee costs such as salaries, bonus etc. which are recognized on the
basis of the amount paid or payable for the period during which services are rendered by the employee.

l.llTaxeson income

Income tax expense comprises current and deferred tax expense. Income tax expenses are recognized in statement
of profit and loss, except when they relate to items recognized in other comprehensive income or directly in equity,
in which case, income tax expenses are also recognized In other comprehensive income or directly In equity
respectively.

Current tax is the tax payable on the taxable profit for the year, using tax rates enacted or substantively enacted by
the end of reporting period by the governing taxation laws, and any adjustment to tax payable inrespect ofprevious
periods. Income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. Management periodically evaluates positions taken in the tax returns with respeetto situations
in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred taxes arising from deductible and taxable temporary differences between the tax base of assets and
liabilities and their carrying amount in the financial statements are recognized using substantively enacted tax rates
and laws expected to apply to taxable income in the years in which the temporary differences are expected to be
received or settled. Deferred tax asset are recognized only to the extent that it is probable that future taxable profit
will be available against which the deductible temporary differences can be utilized. The carrying amount
of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that
sufficient taxable profit will be available to allow all or part of the deferred incometax assets to be utilized.

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Mar 31, 2024

1. Significant accounting policies

1.1 Basis of measurement

a) Compliance with INDAS

The financial statements comply in all material aspects with Indian Accounting Standards (IndAS) notified under
Section 133 of the Companies Act, 2013 (the Actjread with [Companies (Indian Accounting Standards) Rules. 2015]
as amended and other relevant provisions of the Act and guidelines issued by the Securities and Exchange Board of
India (SEBI)

b) 8asis form casurcmcnt

The IND AS Financial Statements have been prepared on a going concern basis using historical cost convention and
on an accrual method of accounting except for the case of duty drawback income (seenotel.2)

c) Current and noncurrent classification

The assets and liabilities reported in the balance sheet are classified on a "current/non-current basis” Current
assets, which include cash and cash equivalents are assets that are intended to be realized, sold or consumed
during the normal operating cycle of the Company. A liability is current when it Is expected to be settled in normal
operating cycle, held primarily for the purpose ol trading, it is due to be settled within twelve months after ihere
porting date and there Is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period Deferred tax assets and liabilities are classified as noncur/enl assets and liabilities.
Based on the nature of products and the time between the .-requisition of assets for processing and their
realization In cash and cash equivalents, the company has ascertained Its operating cycle as 12 months for the
purpose of current/noncurrent classification of assets and liabilities

1.2 Revenue Recognition

Revenue is measured at the fair value of tne consideration received or receivable, net of discounts, volume rebates,
outgoing sales taxes and other indirect taxes excluding xcise duty.

Revenue from sales is recognized when all significant risks and rewards of ownership of the commodity sold are
transfer red to the customer which generally coincides with delivery,

Other Income

i) Interest income is recognized using the time proportion method, based on rates implldtin the transaction

ii) Duty draw back Income is recognised on cash basis

ili) All other income Is recognized when no significant uncertainly as to its determination or realization exsists

1.3 Property plant and equipments

The indial cost of property, plant and equipment comprises its purchase price, including import duties and non
refundable purchase taxes, attribute able borrowing cost and anyother directly attributable costs of bringing an
asset to working condition and location for its intended use

Expenditure incurred after the property, plant and equipment have been pul into operation, such as repairs and
maintenance, are normally charged to the statements of profit and loss in the period in which the costs are
incurred. Major inspection and over haul expenditure is capitalized if the recognition criteria are met

When a major Inspection is performed. Its cost Is recognized In the carrying amount of the plant and equipment as
a replacement if the recognition criteria are satisfied. AH other repair and maintenance costs are recognized in the
statement of profit and loss as incurred

Gains and losses on disposal of an Item of property, plant and equipment arc determined by comparing the
proceeds from disposal with the carrying amount of property, plant and equipment, and are recognized net with in
other income/other expenses In statement of profit and loss.

An Item ol property, plant and equipment and jny significant port Initially recognized is derecognized upon
disposal or when no future economic benefits are expected from Its use or disposal Any gain or loss arising on
derecognition of the asset (calculated as the difference between the net disposal proceeds and tno carrying
amount of the asset) is included in the statement of profit and lass, when the asset is derecognized

Depredation:

Property, plant and equipment are stated at cost less accumulated depreciation and any provision for impairment
Depreciation commences when the assets are ready for their intended use

Depredation is calculated on the depreciable amount, which Is the cost of an assetless Its residua! value
Depreciation Is provided at rates calculated to write ofr the cost, less estimated resldu.il value, of each asset on a
written down value basis.

Depredation methods, useful lives and residual values are reviewed at each financial year end and changes in
estimates, if any, are accounted for prospectively

1.4 Financial Instruments
a) Financial assets

Initial recognition and measurement

Financial assets are Initially measured at fair value Transaction costs that are directly attributable to the acquisition
or issue of financial assets {other than financial assets at fair value through profit or loss) .ire added to or deducted
from the fair value of the financial assets, as appropriate, on initial recognition. Transaction costs directly attribute
able to the acquisition of financial assets at fair value through profit or loss are recognized immediately in profit or

loss.

Subsequent measurement of financial assets Is described below-

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective
interest rate (EIR) method Amortized cost is calculated by taking into account any discount 01 premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortization Is Included In finance income
in the statement of profit and loss The losses arising from Impairment are recognized in the statement of profit
and loss. This category generally applies to trade and other receivables.

However, reporting entity docs not huve such financial assets to be measured at amortized cost using EIR method.
Dc-rccognltlon of financial assets

A financial asset is primarily de-recognised when the rightst o receivecasb flows from the asset have expired or the
Company fias transferred its rights to receive cash flows from the asset

b)Fmancialliabilities

fnltialrccognttlonandmcasurement

All financial liabilities are recognized initially at fair value, in the case ol financial liabilities not recorded af fair
value through profit & loss (FVTPL), the transaction costs that are attributable to the acquisition of the financial
liabilities are also adjusted These liabilities are classified as amortised cost.

Subsequent measurement

These liabilities includes borrowings and deposits Subsequent to initial recognition, these liabilities are measured
At amortised cost using the effective interest method.

Oe-rccognltlon of financial liabilities

A financial liability is de-recognised when the obligation under the liability Is dischargedor

Cancelled or expires When an existing financial liability is re placed by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such 3n exchange or
modification Is treated as the derecognition of the original liability and the recognition of a new liability The
difference in the respective carrying amounts is recognized in the statement of profit or loss.

b) Off setting of financial instrument

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a
currently enforceable legal light to offset the recognised amounts and there Is an intention to settle on a net
basis, to realize the assets and settle the liabilities simultaneously

1.5 Impairmentofassets
a) Financialassets

A financial asset Is assessed at each reporting date to determine whether there Is any objective evidence indicating
impairment. A financial asset is considered to be Impaired, If objective evidence Indicates that one or more events
had a negative effecton the estimated future cash flows of that asset.

b) Non Financialassets

The carrying amount of noivfinantial asset* are assessed at each reporting date to ascertain whether there Is any
indication of impairment If any such indication exists, then the assets'' recoverable amount Is estimated An
impairment loss Is recognised as an expense in the statement of profit and loss, for the amount by which the
assets'' carrying amount exceeds Its recoverable amount. The recoverable amount is the higher of an assets'' fair
value less cost to sell and value in use. Value in use is ascertained through discounting of the estimated future cash
Power of Empathy, Truth of Science Annual Report 2022-2023 203 flows using a discount rate that reflects the
current market assessments of the time value of money and the risk specific to the assets

An impairment loss is reversed if there is any change in the estimates used to determine the recoverable amount
An impairment loss 15 reversed only to the extent that the assets'' carrying amount does not exceed the carrying
amount that would have been determined, net of depreciation or amortisation, if no impairment has been
recognised.

1.6 Inventories

I) Rawmaturials are valued at lower of cost and net realizable value. Cost of raw material Includes, packing
material and stores, spares and consumables including all charges incurred In bringing the goods to the
warehouse

II) Work in progress and finished goods are valued at lower of cost and net realizable value

iii) Packing material are valued at cost

1.7 Cash and cash equlvelant

Cash and cash equivalents comprises cash on hand and at banks, short-term deposits (with an original maturity of
three months or less from the dote of acquisition), and which are subject to insignificant risk of changes in value

For the purpose of statement of cash Hows, cash and cash equivalents consist o» cash and short term deposits, as
defined above, as they are considered an integral part of the company''s cash management

1.8 Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are
capitalized during the period of time that is necessary to complete and prepare the asset for Its Intended use or
sale A qualifying asset Is one that necessarily takes substantial period of time to get ready for its intended use. All
other borrowing costs are charged to the Statemenl of Profit and Loss as incurred.

1.9 Earning per share

Basle earnings per share Is computed by dividing the profit or loss attributable to equity shareholders of the
Company by the weighted average number of equity shares outstanding during the year. Diluted earning per share
l< calculated by dividing the profit or loss attributable to the owners uf the company by weighted average number
of equity shares considered For deriving basic earning per share and weighted average number of equity shares
that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity
shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i e. the
average market value of the outstanding equity shares) Dilutive potential equity shares are deemed converted as
at the beginning of the penod. unless issued at a later date. Dilutive potential equity shares are determined
Independently for each period presented The number of equity shares are adjusted for share splits and
bonus shares, as appropriate.

1.10 Employee benefit scheme*

a) Defined contribution plan

The Company’s contribution to provident fund and employee state insurance scheme are defined contribution
plans and are charged 35 an expense oased an the amount of contribution required to be made as and when
services are rendered by the employees.

b) Short term employee benefits

Short-term employee benefits comprise of employee costs such as salaries, bonus etc which are recognized on the
basis of the amount paid or payable for the penod during which services are rendered by the employee.

1.11 Taxes on income

Income t3x expense comprises current and deferred tax exoense. income tax expenses arc recognized In
statement of profit and loss, except when they relate to items recognized in other comprehensive Income or
directly inequity, in wfuch case, income tax expenses are also recognized in other comprehensive income or
direcrly in equity respectively.

Current tax 1$ the tax payable on the taxable profit lor the year, using tax rates enacted or substantively enacted
by the end of reporting period by the governing taxation laws, and any adjustment to tax payable in respect of
previous periods Income tax assets and liabilities are measured at the amount expected to be recovered from or
paid to tlie taxation authorities. Management periodically evaluates positions taken in the tax returns with respect
to situations in wmch applicable lax regulations are subject to interpretation and establishes provisions where
approprtate.

Deferred taxes arising from deductible and taxable temporary differences betsveen the tax base of assets
andliabilitiesandtheircarryingamountinthefinandalstatementsarerecognizedusingsubstantlvelyenactedtaxratesand
laws expected to apply to taxable income in the years in which the temporary differences are expected to be
received or settled. Deferred tax asset are recognized only to the extent that it is probable that future taxable
profit will tie available against which the deductible temporary differences can be utilized I he carrying amount of
deterred tax assets 15 reviewed at each reporting date and reduced to the extent that It is no longer probable that
sufficient taxable profit will be available to allow all or part of the deterred income tax assets to be utilized

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Mar 31, 2015

1) ACCOUNTING POLICIES

a) Basis of Accounting : Accounts are prepared under the Historical Cost conversion and on the Basis of a going concern obligations and amounts determined as payable or receivable during the year

b) Sales - Sales comprises sale of goods net of trade discount

c) Fixed assets & Depreciation - Fixed assets are stated at Cost less depreciation.

d) Inventories - Inventories are valued as under :

i) Raw materials valued at cost or market rate whichever is lower.

ii) Works in Process & Finished Goods are valued at lower cost of or net realizable value.

iii) Packing Material & Product Literature's are at cost.

e) Amortization of Misc.Expenditure like preliminary and share issue expenses will be written off over a period of 10 years. Accordingly, no such expenditure has been written off during the year.

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Mar 31, 2014

A) Basis of Accounting: Accounts are prepared under the Historical Cost conversion and on the Basis of a going concern obligations and amounts determined as payable or receivable during the year

b) Sales - Sales comprises sale of goods net of trade discount

c) Fixed assets & Depreciation - Fixed assets are stated at Cost less depreciation.

d) Inventories - Inventories are valued as under:

i) Raw materials valued at cost or market rate whichever is lower.

ii) Works in Process & Finished Goods are valued at lower cost of or net realizable value.

iii) Packing Material & Product Literature''s are at cost.

e) Amortization of Misc. Expenditure like preliminary and share issue expenses will be written off over a period of 10 years. Accordingly, no such expenditure has been written off during the year.

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Mar 31, 2013

A) Basis of Accounting : Accounts are prepared under the Historical Cost conversion and on the Basis of a going concern obligations and amounts determined as payable or receivable during the year

b)Sales - Sales comprises sale of goods net of trade discount

c) Fixed assets & Depreciation - Fixed assets are stated at Cost less depreciation.

d) I nventories - Inventories are valued as under:

I) Raw materials valued at cost or market rate whichever is lower.

ii) Works in Process & Finished Goods are valued atlowercostof or net realizablevalue.

iii) Packing Material & Product Literature''s are at cost.

e) Amortization of Misc. Expenditure like preliminary and share issue expenses will be written off over a period of 10 years. Accordingly, no such expenditure has been written off during the year.

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Mar 31, 2012

A) Basis of Accounting : Accounts are prepared under the Historical Cost conversion and on the Basis of a going concern obligations and amounts determined as payable or receivable during the year

b) Sales - Sales comprises sale of goods net of trade discount

c) Fixed assets & Depreciation - Fixed assets are stated at Cost less depreciation.

d) Inventories - Inventories are valued as under:

i) Raw materials valued at cost or market rate whichever is lower.

ii) Works in Process & Finished Goods are valued at lower cost of or net realizable value.

iii) Packing Material & Product Literature's are at cost.

e) Amortization of Misc. Expenditure like preliminary and share issue expenses will be written off over a period of 10 years. Accordingly, no such expenditure has been written off during the year.

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Mar 31, 2010

A) Basis of Accounting: Accounts are prepared under the historical cost conversion and on the basis of a going concern obligations and amounts determined as payable or receivable during the year.

b) Sales: Sales comprises sale of goods net of trade discount.

c) Fixed Assets & Depreciation: Fixed assets are stated at historical cost less depreciation.

d) Inventories: Inventories are valued as under.

i) Raw materials are valued at historical cost.

ii) Work in process and finished goods are valued at lower of cost or net realisable value.

iii) Packing material and product literature are at cost, e) i) Amortisation of Misc. Expenditure like preliminery and share issue expenses will be written off over a period of 10 years. Accordingly, no such expenditure has been written off during the year.