Notes to Accounts of Venmax Drugs & Pharmaceuticals Ltd.

Mar 31, 2024

(m) Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a Present Obligation (legal or constructive)
as a result of a past event, it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. Contingent Liability is disclosed in case of a present obligation arising
from past events, when it is not probable that an outflow of resources will be required to settle
the obligation or where no reliable estimate is possible. Contingent Liabilities are not recognised
in Financial Statements but are disclosed in the Notes to Accounts. Contingent Asset is a possible
asset that arises from past events and whose existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the
Entity. Contingent Assets are not recognised in Financial Statements and are disclosed in the
Notes when it is virtually certain that economic benefits will inflow to the Company.

(n) Earnings per share (EPS)

Basic EPS is computed using the weighted average number of equity shares outstanding during
the period. Diluted EPS is computed using the weighted average number of equity and dilutive
equity equivalent shares outstanding during the period except where the results would be anti¬
dilutive.

22. Government Subsidy

Subsidy from the Government is recognized when there is reasonable assurance that the company will
comply with the conditions attached to them.

ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS

23. Share Capital

There was no change in the share capital of the Company during the year.

24. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development
Act, 2006

As at 31st March,2024, the Company has no dues to suppliers registered under Micro, Small and Medium
Enterprises Development Act, 2006 (‘MSMED Act’). The disclosures pursuant to the said MSMED
Act are as follows:

Disclosure of payable to vendors as defined under the “Micro, Small and Medium Enterprise Development
Act, 2006” is based on the information available with the Company regarding the status of registration
of such vendors under the said Act, as per the intimation received from them on requests made by the
Company. There are no overdue principal amounts / interest payable amounts for delayed payments to
such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the
year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard
in respect of payment made during the year or on balance brought forward from previous year.

25. Disclosure under regulation 34 (3) of SEBI (Listing Obligations & Disclosure Requirement)
Regulations, 2015

The Company does not have any subsidiaries.

26. Related Party disclosure as required by Accounting standard (AS) 18 “Related Party Disclosure”

There were no Related Party disclosures during the year

27. Applicability of IND AS 108

The Company operates in a Single Segment. Accordingly, disclosures under Indian accounting Standards
(IND AS) 108 on operating segments are not applicable to the company.

30. Capital commitment and contingent liabilities

a) Capital commitment

There are no capital commitment outstanding as at reporting date March 31, 2024 (as at March
31, 2023: NIL)

b) Contingent Liabilities and Commitments

There are no contingent liabilities.

31. The Disclosures of Employee Benefits:

Since there are no employees during the year, no provision has been created for Gratuity or other
retirement benefits.

32. Taxes and Deferred

Tax During the year, the company has incurred loss and consequently no provision for Income Tax has
been made. Deferred Tax asset is not accounted for against the losses since there are no commercial
operations as on the date of balance sheet.

33. Other Statutory Information:

(i) The Company has not been declared willful defaulter by any bank or financial institution or government
or any government authority.

(ii) The Company has not granted Loans or Advances in the nature of loans to promoters, directors, KMPs
and the related parties.

(iii) The Company does not have any transactions with companies which are struck off.

34. Previous year’s figures have been regrouped/reclassified wherever necessary to correspond with the
current year’s classification/disclosure.

As per Our report of even date For and on behalf of the Board of Directors

For PPKG & Co of Venmax Drugs And Pharmaceuticals

Limited

Chartered Accountants, F.R.No.09655S

Sd/- Sd/- Sd/-

Girdhari Toshniwal N.Krishnaiah P. Meena Kumari

PARTNER Managing Director Director

Membership No: 205140 DIN : 07279009 DIN : 10458622

UDIN: 24205140BKALIS 5124
Place : HYDERABAD

Date : 14.05.2024

Venmax Drugs and Pharmaceuticals Limited
CIN: L24230TG1988PLC009102

Shed No.22, Plot No.84, Phase-I,

IDA cherlapally, Rangareddy, 500051
E-mail: [e-mail]

Website: www.venmaxdrugs.com

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Mar 31, 2014

1. SALES OF PLANT L& MACHINERY

Since the plant & Machinery are very old and could not be upgraded, the production was getting hampered frequently. Further to this, power cuts and shortages are added burden on the production cycle. With the result, Working capital account became NPA, Under these circumstance, the company took the approval from Shareholders through postal ballot and sold the assets, cleared the liabilities to the bank and other statutory bodies.

However the company is planning to manufacture fine chemicals in leased premises and also trade with Bulk drugs, intermediates and cosmetics to improve workings of the company.

2. SECURED LOANS

The secured loan towards working capital was totally repaid to Union Bank of India during the year.

3. DEPRECIATION

Depreciation on fixed assets has been provided as per the rate prescribed in Schedule XIV of the Companies Act, 1956 on straight line method. The depreciation in the current year is taken on Plant and Machinery on single shift basis.

4. BONUS

No bonus has been paid or provided during the period in the accounts of the Company as no employee is eligible for the same

5. INCOME TAX

Since the Company has incurred loss no provision is made for the Income Tax.

6. The Company is dealing only in pharmaceutical segment and only at one location and hence there are no segments to be reported separately.

7. The balances of all Sundry Debtors, Sundry Creditors, Loans and advances payables and receivables have not been confirmed by the parties.

8. Previous year figures have been regrouped and reclassified wherever considered necessary.

9. Paisa has been rounded off to the nearest rupee.

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Mar 31, 2013

1. SECURED LOANS

Working Capital from Union Bank of India is secured by hypothecation of the stocks of raw materials, packing materials, work-in-process and finished goods and also consumables stores and lien on all receivables and personal guarantee of Promoter Directors and First charges of fixed assets. During the year the bank has recalled the loan, hence the same has been classified as current liability.

2. DEPRECIATION

Depreciation on fixed assets has been provided as per the rate prescribed in Schedule XIV of the Companies Act, 1956 on straight line method. The depreciation in the current year is taken on Plant and Machinery on single shift basis.

3. BONUS

No bonus has been paid or provided during the period in the accounts of the Company as no employee is eligible for the same

4. INVENTORIES

Excise duty has not been provided on finished goods not cleared from the factory. However, this has no bearing on the profit/loss for the Current year.

5. INCOME TAX

Since the Company has incurred loss no provision is made for the Income Tax.

6. The Company is dealing only in pharmaceutical segment and only at one location and hence there are no segments to be reported separately.

7. None of the employee were in receipt of over Rs.5,00,000.00 p.m. or Rs. 60,00,000.00 p.a. Whether the employed for the whole or part of the year respectively.

8.The balances of all Sundry Debtors, Sundry Creditors, Loans and advances payables and receivables have not been confirmed by the parties.

9. Previous year figures have been regrouped and reclassified wherever considered necessary.

10. Paisa has been rounded off to the nearest rupee.

11.There is a claim of Rs. 500 Lakhs against the company for damages by Lee Pharma Ltd for delayed payment of advance.

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Mar 31, 2012

1. SECURED LOANS

Working Capital from Union Bank of India is secured by hypothecation of the stocks of raw materials' packing materials' work-in-process and finished goods and also consumables stores and lien on all receivables and personal guarantee of Promoter Directors and First charges of fixed assets. During the year the bank has recalled the loan' hence the same has been classified as current liability.

2. DEPRECIATION

Depreciation on fixed assets has been provided as per the rate prescribed in Schedule XIV of the Companies Act' 1956 on straight line method. The depreciation in the current year is taken on Plant and Machinery on single shift basis

3. BONUS

No bonus has been paid or provided during the period in the accounts of the Company as no employee is eligible for the same

4. INVENTORIES

Excise duty has not been provided on finished goods not cleared from the factory. However' this has no bearing on the profit/loss for the Current year.

5. INCOME TAX

Since the Company has incurred loss no provision is made for the I ncome Tax.

6. MISCELLANEOUS EXPENDITURE

Research and Development expenditure is being written off over a period of 5 years. During the year Rs. 2'07'135 have been written off.

7. The Company is dealing only in pharmaceutical segment and only at one location and hence there are no segments to be reported separately.

8. None of the employee were in receipt of over Rs.5'00'000.00 p.m. or Rs. 60'00'000.00 p.a. whether the employed for the whole or part of the year respectively.

9.The balances of all Sundry Debtors' Sundry Creditors' Loans and advances payables and receivables have not been confirmed by the parties.

10. Previous year figures have been regrouped and reclassified wherever considered necessary.

11. Paisa has been rounded off to the nearest rupee.

12.There is a claim of Rs. 5.00 Lakhs against the company for damages by Lee Pharma Ltd for delayed payment of advance.

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Mar 31, 2011

1. SECURED l OANS

Working Ca, i from Union Bank of India is secured by hypothecation of the stocks of raw materials, pacing materials, work-in-process and finished goods and also consumables stores and lien on all receivables and personal guarantee of Promoter Directors and First charges of fixed assets.

2. DEPRECIATION

Depreciation on fixed assets has been provided as per the rate prescribed in Schedule XIV of the Companies Act, 1956 on straight line method. The depreciation in the current year is taken on Plant and Machinery on single shift basis.

3. BONUS

No bonus has been paid or provided during the period in the accounts of the Company as no employee is eligible for the same.

4. INVENTORIES

Excise duty has not been provided on finished goods not cleared from the factory. However, this has no bearing on the profit/loss for the Current year.

5. INCOME TAX

Since the Company has incurred loss no provision is made for the Income Tax.

6. MISCELLANEOUS EXPENDITURE

Research and Development expenditure is being written off over a period of 5 years. During the year Rs. 5,99,089 have been written off.

7. The Company is dealing only in pharmaceutical segment and only at one location and hence there are no segments to be reported separately.

8. None of the employee were in receipt of over Rs.2,00,000.00 p.m. or Rs.25,000.00 pa. whether the employed forthe whole or part of the year respectively.

9. The balances of all Sundry Debtors, Sundry Creditors, Loans and advances payables and receivables have not been confirmed by the parties.

10. Previous year figures have been regrouped and reclassified wherever considered necessary.

11. Paisa has been rounded off to the nearest rupee.

12.One of the directors of the company has committed a fraud by misutilising the bank account of the company with YES Bank Mumbai and has conducted transactions between 26th August 2010 and 28th December 2010. These transactions have no connection with the business of the company in any way. The company has initiated criminal proceedings against the director. The company has not accounted these transactions in its books of account.

13.There is a claim of Rs. 5.00 Lakhs against the company for damages by Lee Pharma Ltd for delayed payment of advance, which is under litigation

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Mar 31, 2009

1.ACCOUNTNG ASSUMPTIONS:

The accounts have been prepared under the historic cost convention on the basis of a going concern concept, with revenues recognized and expenses accounted for on their accrual with due provisions/adjustments for obligations that have been crystallized but not yet incurred.

2.Sales: Sales exclude excise duty and VAT.

3.BASISOF PRESENTAION:

The structure of the accounts has been drawn in accordance with the Schedule VI of the Companies Act, 1956.

4.FIXED ASSETS:

Fixed Assets are stated at cost less depreciation. Cost includes freight, installation Charges, duties, taxes, and other incidental charges thereon. The plant and Machinery acquired during the year has been capitalized net of CENVAT and VAT Credit available on such purchase.

5. DEPRECIATION:

Depreciation is charged on straight line method as per Schedule XIV of the Companies Act, 1956. Depreciation on assets acquired during the year is calculated on pro-rata basis with reference to the date of acquisition.

6. TAXATION

Deferred Tax is recognized, subject to the consideration of prudence, on timing difference being the differences between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

7. INVENTORIES:

Inventories are valued as under.

a) Raw materials are valued at cost less Cenvat and Vat.

b) Finished goods are valued at cost price excluding Central Excise on them.

c) Excise duty is accounted for as and when the same is paid on the dispatch of the goods from the factory.

7. INVESTMENTS: Investments stated at cost.

8. RETIREMENT BENEFITS:

The Company has a policy of pay ing the retirement benefits to its employees as and when due.

9. PRELIMINARY EXPENSES AND PRE OPERATIVE EXPENSES:

a). All expenditure, the benefit of which is spread over a number of years grouped under Miscellaneous Expenditure as "Preliminary Expenses" to be amortised in five installments from the year in which the benefit of such expenditure accrues.

b). All preoperative expenditure for acquiring fixed assets or raising capital are amortised over a period of five years.

10. MISCELLANEOUS EXPENDITURE: Research* Development expenditure is beingwritten off over a period of five years. During the yea Rs. 5,99,089/- have been written off.

11. The Company is dealing only in pharmaceutical segment and only at one Location and hence there are no segments to be reported separately

12. Pending statutory dues: Rs.58,62,103/-

13. Related Party Disclosure:

(I) Key Management Personnel :

N.V.NarenderManaging Director Interested to the extent of Salary only.

14. None of the employee were in receipt of over Rs.2,00,000/- p.m. or Rs.24,00,000/- p.a. whether the employed for the whole or part of the year respectively.

15. The balances of all Sundry Debtors, Sundry Creditors, Loans and advances Payables and receivables have not been confirmed by the parties.

16. Previous year figures have been regrouped and reclassified wherever Considered necessary.