Accounting Policies of Welcure Drugs & Pharmaceuticals Ltd. Company

Mar 31, 2024

1 Company Overview and Significant Accounting Policies
1. 1 Company Overview

Welcure Drugs & Pharmaceuticals Ltd. ("the Company") is a public limited Company domiciled in India and
incorporated under the provisions of the Companies Act applicable in India. The registered office of the Company is
located at Delhi, India.

The financial statements for the year ended March 31, 2024 were authorized for issue in accordance witha resolution of
the Board of Directors .

1.2 Basis of accounting and preparation of Financial Statements

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS)
specified under Section 133 of the Companies Act, 2013 ("Act") read with the Companies (Indian Accounting
Standards) Rules, 2015 (as amended from time to time).

The financial statements have been prepared on accrual basis on historical cost convention, except as stated otherwise.
Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted
or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

The financial statements including notes thereon are presented in Indian rupees, which is the functional currency of the
company. All the financial information presented in Indian rupees has been rounded to the nearest lakhs as per the
requirement of Schedule III to the Act, unless stated otherwise.

1.3 Use of judgment, 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.

1.4 Classification of Assets and Liabilities into Current/Non-current

Based on the nature of products and the time between acquisition of assets and their realisation in cash and cash
equivalent, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current
classifications of assets and liabilities.

1.5 Financial Instruments

1.5.1 Initial recognition

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions
of the instrument.

All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which
are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of
financial assets and financial liabilities, that are not at fair value through profit or loss, are added to the fair value on
initial recognition.

1.5.2 Subsequent measurement

(i) Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to
hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and intereston the principal amount outstanding.

(ii) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method.

1.5.3. Derecognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire
or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a
part of a financial liability) is derecognized from the Company''s Balance Sheet when the obligation specified in the
contract is discharged or cancelled or expires.

1.6 Fair Value of Financial Instruments

In determining the fair value of its financial instruments, the Company uses assumptions that are based on market
conditions and risks existing at each reporting date.

1.7 Impairment of Financial Assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are
not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is
measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an
amount equal to the 12-month ECL, unless there hasbeen a significant increase in credit risk from initial recognition in
which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to
adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognized as an
impairment gain or loss in profit or loss.

---

Mar 31, 2015

1. SIGNIFICANT ACCOUNTING POLICIES

1.1 Basis of Accounting: The financial statements are prepared under historical cost convention and comply with the notified accounting standards of Companies Accounting Standards Rules, 2006.

1.2 Use of Estimates :The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the result of operations during the reporting period end Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

1.3 Revenue Recognition: Revenue is recognised on accrual basis.

1.4 Taxation : Provision for Taxation comprises of Income Tax Liability on the profits for the year chargeable to tax and Deferred Tax resulting from timing differences between Book and Tax profits. The Deferred Tax assets/ Liability is provided in accordance with the Accounting standard- 22(AS-22), "Accounting for Taxes on Income".

Where Minium Alternate Tax (MAT) is applicable, it is provided in the statement of Profit and Loss irrespective of the Tax Credit benefits envisaged in the Income Tax Act, 1961.

1.5 Cash and Cash Equivalents: Cash and Cash Equivalents for the purposes of cash flow statement comprise cash at bank and in hand.

---

Mar 31, 2014

1.1 Basis of Accounting: The financial statements are prepared under historical cost convention and comply with the notified accounting standards of Companies Accounting Standards Rules, 2006.

1.2 Use of Estimates :The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the result of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

1.3 Revenue Recognition : Revenue is recognised on accrual basis.

1.4 Taxation : Provision for Taxation comprises of Income Tax Liability on the profits for the year chargeable to tax and Deferred Tax resulting from timing differences between Book and Tax profits. The Deferred Tax assets/ Liability is provided in accordance with the Accounting standard- 22(AS-22), "Accounting for Taxes on Income".

Where Minium Alternate Tax (MAT) is applicable, it is provided in the statement of Profit and Loss irrespective of the Tax Credit benefits envisaged in the Income Tax Act, 1961.

1.5 Cash and Cash Equivalents : Cash and Cash Equivalents for the purposes of cash flow statement comprise cash at bank and in hand.

2(b)Terms/ Rights attached to Equity Shares

The company has only one class of equity shares having a face value of Rs. 10 per share. Each equity shareholder is entitled to one vote per share. In the event of winding up of the company, the equity shareholders shall be entitled to be repaid remaining assets of the company in the ratio of the amount of capital paid up on such equity shares.

---

Mar 31, 2013

1.1 Basis of Accounting; The financial statements are prepared under historical cost convention and comply with the notified accounting standards of Companies Accounting Standards Rules, 2006 12 Use of Estimate to

1.2 The preparation of financial statements if conformity with generally accepted d ac co uniting principles requires management to mace estimates and assumptions that affect the reported amounts of assets and liabilities at tie date of the financial statements and the result of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

1.3 Revenue Recognition: Revenue is recognized on accrual basis.

1.4 Taxation: Provision for Taxation comprises of Income tax Liability on the profits for the year chargeable to tax and Offered Tax resulting from timing differences between Book and Tax profits. The Deferred Tax assets/ Liability is provided in accordance with the Accounting standard-22(AS-22), "Accounting or Taxes on Income".

Where Minimum Alternate Tax (MAT) is applicable, it is provided in the statement of Profit and Loss irrespective of the Tax Credit benefits envisaged 111 the income Tax Act. 1961.

1.5 Cash and Cash Equivalents: Cash and Cash Equivalents for the purposes of cash flow statement comprise cash at bank and in hand ;

---

Mar 31, 2012

(a) Basis of Accounting: The financial statements are prepared under historical cost convention and comply with the notified accounting standards of Companies Accounting Standards Rules, 2006.

(b) Use of Estimates :The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the result of operations during the reporting period end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

(c) Excise Duty : Excise Duties recovered are included in the sale of product. Purchases are being shown at a figure net of excise duty.

(d) Revenue Recognition: Revenue is recognized on accrual basis.

(e) Depreciation : Depreciation is provided under the straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

(f) Taxation: Provision for Taxation comprises of Income Tax Liability on the profits for the year chargeable to tax and Deferred Tax resulting from timing differences between Book and Tax profits, The Deferred Tax assets/ Liability is provided in accordance with the accounting standard 22(AS-22), "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

Where Minim Alternate Tax (MAT) is applicable, it is provided in the Profit and Loss Account irrespective of the Tax Credit benefits envisaged in the Income Tax Act, 1961.

---

Mar 31, 2011

(a) Basis of Accounting : The financial statements are prepared under historical cost convention and comply with the notified accounting standards of Companies Accounting Standards Rules. 2006.

(b) Use of Estimates :The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the result of operations during the reporting period end. Although these estimates are based upon managements best knowledge of current events and actions, actual results could differ from these estimates.

(c) Excise Duty : Excise Duties recovered are included in the sale of product. Purchases are being shown at a figure net of excise duty.

(d) Revenue Recognition : Revenue is recognised on accrual basis.

(e) Depreciation : Depreciation is provided under the straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

(f) Taxation : Provision for Taxation comprises of Income Tax Liability on the profits for the year chargeable to tax and Deferred Tax resulting from timing differences between Book and Tax profits, The Deferred Tax assets/ Liability is provided in accordance with the accounting standard 22(AS-22), "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

Where Minium Alternate Tax (MAT) is applicable, it is provided in the Profit and Loss Account irrespective of the Tax Credit benefits envisaged in the Income Tax Act, 1961.

---

Mar 31, 2010

(a) Basis of Accounting : The financial statements are prepared under historical cost convention on a going concern basis and comply with the notified accounting standards of Companies Accounting Standards Rules, 2006.

(b) Use of Estimates :The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the result of operations during the reporting pehod end. Although these estimates are based upon managements best knowledge of current events and actions, actual results could differ from these estimates.

(c) Fixed Assets : All Fixed Assets have been valued at cost (net of Cenvat, where applicable). All cost incidental to the acquisition and installation of the assets are capitalised.

(d) Excise Duty : Excise Duties recovered are included in the sale of product. Purchases are being shown at a figure net of excise duty.

je) Inventories : Inventories of raw material, Packing material & Work in Progress are valued at cost; and finished goods are valued at cost or net recognized value which ever is lower. Finished goods-trading are valued at cost. Raw Material in hand is valued at FIFO basis and packing materials at weighted average basis.

(f) Investments: Investments are stated at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

(g) Revenue Recognition : Revenue is recognised on accrual basis.

(h) Depreciation : Depreciation is provided under the straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956. In respect of additions during the year, depreciation has been provided on pro-rata basis.

(i) Provisions for Doubtful Debts : Provisions for doubtful debts are made in cases where collection of debt is uncertain.

(j) Taxation : Provision of Taxation comprises of Income Tax Liability on the profits for the year chargeable to tax and Deferred Tax resulting from timing differences between Book and Tax profits, The Deferred Tax assets/ Liability is provided in accordance with the accounting standard 22 (AS-22), "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

Where Minium Alternate Tax (MAT) is applicable, it is provided in the Profit and Loss Account irrespective of the Tax Credit benefits envisaged in the Income Tax Act, 1961.