Notes to Accounts of Welcure Drugs & Pharmaceuticals Ltd.

Mar 31, 2024

1.8 Provisions and Contingent Liabilities

A provision is recognized if, as a result of a past event, the Company has a present legal or constructiveobligation that is
reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation.
The expenses related to provision is presented in statement of profit andloss.

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 recognised because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases, where there is a liability that cannot be recognised
because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its
existence in the financial statements.

1.9 Earnings Per Equity Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders
(after deducting dividend attributable taxes) 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 extenet that htey are entitled to participate in
dividend relative to a fuilly paid equity shares during the reporting period.

Diluted earnings per equity share is calculated by dividing the net profit or loss attributable to the equity shareholders of
the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share
and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive
potential equity shares. The dillutive potential equity shares are adjusted for the proceeds recievable had the equity
shares been actually issued at Dair Value (i.e. average market value of the outstanding equity shares.)Dilutive potential
equity shares are deemed converted at the beginning of the period, unless they have been issued at a later date.

1.10 Income Tax
Taxes

Tax expense comprises current and deferred tax. Tax expense is recognized in net profit in the statement of profit and
loss except to the extent that it relates to items recognized directly in equity or recognized in other comprehensive
income.

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. Current income tax for current and prior periods is recognized at the amount expected to be paid to
the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet
date.

The company offsets current tax assets and current tax liabilities, where it has a legally enforceable rightto set off the
recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability
simultaneously.

Deferred tax

Deferred tax is provided on temporary differences between the tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognised for all taxable
temporary differences.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax
credits(MAT) and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable
profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits
and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extentthat it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed at each reporting date and arerecognised to the extent that it has become
probable that future taxable profits will allow the deferred taxasset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is
realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the
reporting date.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

1.11 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effectsof transactions
of a non-cash nature, any deferrals or accruals of past or future operating cash receipts orpayments and item of income or
expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing
activities of the Company are segregated.

Cash and Cash Equivalents for the purposes of cash flow statement comprise cash at bank and in hand and bank deposit
with banks where original maturity is three months or less.

1.12 Revenue recognition

Ind AS 115 five step model is used to determine whether revenue should be recognised at a point in timeor over time, and
at what amount is as below:

• Step 1: Identify the contract with the customer

• Step 2: Identify the performance obligations in the contract

• Step 3: Determine the transaction price

• Step 4: Allocate the transaction price to the performance obligations

• Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation.

Revenue is recognised upon transfer of control of promised goods or services to customers in an amountthat reflects the
consideration which the Company expects to receive in exchange for those products or services.

1.13 Other Income

Other income is comprised primarily of interest income. Interest income is recognised as and when due on the time
proportion basis by using effective interest method. Interest income is included under the head "other income" in the
Statement of Profit and Loss

1.14 Leases

The Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in
which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For
these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight¬
line basis over the term of the lease

1.15 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The Board of Directors of the Company has been identified as being the chief operating decision maker by the
management of the Company

(i) During the year 2015-16, the income tax department has raised a demand of Rs. 32,99,140/- for the assessment year 2011-12. The Company has filed an appeal against the
demand before Commissioner of Income Tax (Appeals), Alwar, Rajasthan. The Company believes that there is a fair chance of favorable decision in this matter based on the
discussion with advocate and hence making of provisions is considered not necessary against the same

(ii) There is no other claim against the Company, which is to be acknowledged as a debt (Previous year NIL)

NOTE: 24: Operating Lease

The Company has taken office premises under operating lease agreement. The lease agreement is generally cancellable and is for short term 11 months and is renewable by mutual
consent on mutually agreed terms.

NOTE: 25: Segment Reporting

The Company’s Board of Directors have been identified as the Chief Operating Decision Maker (‘CODM’).Board of Directors reviews the operating results at Company level,
accordingly there is only one Reportable Segment for the Company which is “Providing services for procurements of orders”, hence no specific disclosures have been made as per
Ind AS 108.

(i) The Company has not traded or invested in crypto currency or virtual currency during the period.

(ii) The Company do not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(iii) The Company does not have any transaction with companies struck off under Section 248 of the Companies Act, 2013.

(iv) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction of charges which is yet to be registered with Registrar of Companies beyond the statutory period.

(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the
Intermediary shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or
otherwise) that the Company shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) The Company do not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income in the tax assessments under the
Income-tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income-tax Act, 1961).

(viii) The Company has not been declared wilful defaulter by any bank or financial institution or Government or any Government authority or other lender, in accordance with the
guidelines on wilful defaulters issued by the Reserve Bank of India.

(ix) The Company has complied 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
Layers) Rules, 2017 from the date of their implementation.

NOTE: 27: Previous Year''s figures

Figures have been recasted/restated wherever necessary to conform to the current year’s presentation

For Gupta Rustagi & Co For and on behalf of the Board of Directors

Chartered Accountants

Firm''s Registration Number - 0128701W

Niraj Gupta Altaf Shah Suraj Solanki

Membership No. 100808 Director Director

Partner DIN: 10351528 DIN: 10380845

Place: Mumbai
Dated: 30th May, 2024

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Mar 31, 2015

1. SHARE CAPITAL

(a). 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.

2. Contingent Liability

There is no claim against the Company, which is to be acknowledged as a debt. (Previous Year Nil)

3. Realised value of current assets

In the opinion of the Board and to the best of the knowledge and belief, the value on realisation of current assets in the ordinary course of business will not be less than the amount at which they are stated in Balance Sheet.

4. Foreign Exchange

No earning in foreign exchange during the year was Nil (Previous Year was Nil). Also, there is no expenditure in foreign exchange during the year (Previous Year Nil).

5. Segment Reporting

During the year, the Company has entered into business activities of one segment only. Hence, the requirement of segment reporting as per Accounting Standard 17 is not applicalbe.

6. Related Party Disclosures

Company has not entered into any transaction with the related party during the year.

7. An amount of Rs. 13,00,000/- (Previous Year Rs. 13,00,000/-) has been shown under current liabilities-expenses payables to one of the director of the Company on account of leave encashment. The Company is of the view that the said liability is payable equivalent to the value stated in the financial statement ason31.03.2015.

8. During the year under audit,the Company has continued to temporally suspend its main business operation and net worth of the Company stands fully eroded. However, business activity of procuring orders on behalf of other party from customers in pharma sector is being continued and the Company received service charges of Rs. 5,06,689.00 during the year (Previous year Rs. 3,76,782.00)

9. The comparative figures given for previous year are taken from the financial statements prepared by following the provisions of Companies Act, 1956.

10. Previous year figures have been regrouped / rearranged wherever considered necessary for comparison.

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Mar 31, 2014

1. Contingent Liability

There is no claim against the Company, which is to be acknowledged as a debt.(Previous Year Nil)

2. Realised value of current assets

In the opinion of the Board and to the best of the knowledge and belief, the value on realisation of current assets in the ordinary course of business will not be less than the amount at which they are stated in Balance Sheet.

3. Foreign Exchange

No earning in foreign exchange during the year was Nil (Previous Year was Nil). Also, there is no expenditure in foreign exchange during the year (Previous Year Nil).

4. Segment Reporting

During the year, the Company has entered into business activities of one segment only. Hence, the requirement of segment reporting as per Accounting Standard 17 is not applicalbe.

5. Related Party Disclosures

Company has not entered into any transaction with the related party (Sh. D.C. Jain. Director) during the year.

6. Accounting for Taxes on Income

In accordance with Accounting Standard 22 "Accounting for Taxes on Income" (AS 22), the company has accounted for deferred taxes during the year as under:

Due to timing difference for above items, deferred tax assets has been worked out to Rs. 2,74,59 481/-(Previous year Rs.2,74,94,570/-). As a matter of prudence deferred tax assets is not being recognized, as per Accounting Standard-22 Accounting for Taxes on Income.

7. Dueto paucity offunds.anamountofRs. 13,00,000/- (Previous YearRs.13,00,000/-) is still payable to one of the employee of the company and outstanding under the head expenses payable as on 31.03.2014.

8. During the year under audit.the Company has continued to temporally suspend its main business operation.However, business activity of procuring orders on behalf of other party from customers in pharma sector is being continued and the Company received service charges of Rs. 3,76,782.00 during the year (Previous year Rs. 3,24,700.00)

9. Previous year figures have been regrouped/rearranged whereever considered necessary for comparisom.

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Mar 31, 2013

1 Contingent Liability

There is no claim against the Company, which is to be acknowledged as a debt.

2 Realized value el current assets

in the opinion of the Board and to the best of the knowledge and belief, the value on realization of current assets in the ordinary course of business win not be less than the amount at which they are stated in Balance Sheet.

3 Foreign Exchange

Earning in foreign exchange during the year was Nil (Previous Year Nil). Also, there is no expenditure in foreign exchange during the year (Previous Year Wit.

4. Segment Reporting

During the year, the Company has entered into business activities of one segment only. Hence, the requirement of sigma not reporting as per Accounting Standard 17 is not applicable.

5 Relate d Party Disclosure

Related Party disclosures, as required by Accounting Standard-18, are as below;

Due to liming difference for above Items, deferred tax assets has been worsted out to Rs, 2!74,94,570/*(Previous year Rs.2.77,10,273/-).

As a matter to prudence deferred tax assets is not being recognized, as per Accounting Standard-22 Accounting for Taxes on Income.

6. Due to paucity of funds, an amount of Rs. 13,00,000/- Is still payable to one of the employee of the company and outstanding under the Head expenses payable as on 31.03.2013.

7. During the year, directors of the Company decided to can out some business activities to earn some income to meet the day to day business running expenses. In continuation of this decision, from the efforts of the directors on behalf of the company, during year commission Income of Rs. 3,24,70(V * has received on booting to certain orders on behalf of other party.

9. Previous year figures have been regrouped / rearranged wherever considered necessary for comparison.

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Mar 31, 2012

1 Contingent Liability

There is no claim against the Company, which is to be acknowledged as debt.

2. Realized value of current assets

In the opinion of the Board and to the best of the knowledge and belief, the value on realization of current assets in the ordinary course of business will not be less than the amount at which they are stated in Balance Sheet.

3. Foreign Exchange

Earning in foreign exchange during the year was Nil (Previous Year Nil). Also, there is no expenditure in foreign exchange during the year (Previous Year Nil).

4. Segment Reporting

During the year, the Company has not entered into business activities. Hence, the requirement of segment reporting as per Accounting Standard 17 issued by the Institute of Chartered Accountants of India (ICAI) is not applicable.

5. Provision of benefits for employees

In the previous year, due to closure of factory at Bhiwadi; most of the employees left the Company gradually. A provision of Rs. 34,00,000/- towards gratuity and leave encashment for the remaining workers/staff was made at the end of the previous year. Out of the said provision, an amount of Rs. 2,86,395/- has been paid to the staff of the Company and Rs. 13,00,000/- payable to one of the directors has been shown as liability in the books of accounts on full & final settlement of such staff & director. The remaining excess provision of Rs. 18,13,605/- has been written off under the head other income as the same is no longer required in the view of the management of the Company.

6. Prior period Items

Prior period expenses amounting to Rs. 16,153/-(Previous Year Rs. 6200/-) mainly on account of personnel and other expenses, have been accounted for under the relevant heads of account.

7. Previous year figures have been regrouped/ rearranged wherever considered necessary for comparison and to compliance with provisions of revised schedule VI of the Companies Act, 1956.

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Mar 31, 2011

(1) CONTINGENT LIABILITY : There is no claim against the Company, which is to be acknowledged as debt

(2) GUARANTEE : Pending Bank Guarantee is Nil. (Previous year Rs. 15,000.00.)

2. DETAILS OF MANAGERIAL REMUNERATION

Managing/Whole Time Directors have been paid monthly remuneration as per their terms of appointment, which are lower than Schedule XIII of the Companies Act, 1956.

3. REALISED VALUE OF LOANS & ADVANCES :ln the opinion of the Board and to the best of the knowledge and belief, the value on realisation of loans, advances and current assets in the ordinary course of business will not be less than the amount at which they are stated in Balance Sheet.

4. SSI OUTSTANDING : As on 31.3.2011, no amount payable to Creditors.Therefore, disclosures require to give for the creditors covered under the provisions of Micro, Small and Medium Enterprises Development Act. 2006 is not applicable.

5. LOANS AND ADVANCES (INCLUDING INTER CORPORATE DEPOSITS): An amount of Rs. 21.24 Lacs was given as inter corporate deposit (interest bearing) to RKM Securities Pvt. Ltd. in 1994-95. Considering chances of non recovery, provision for doubtful debt of Rs. 21.24 Lacs has been made in 2008-09. During the year the company has realised Rs. 41.98 Lacs through assets given by R.K.M. Securities Pvt. Ltd.. Out of this Rs. 21.24 Lacs has been adjusted against the outstanding balance in the books and the balance of Rs. 20.74 Lacs has been shown as other income. Consequent to this, provision for doubtful debt of Rs. 21.24 Lacs has also been written back to the profit & loss account.

(6) FOREIGN EXCHANGE : Earning in foreign exchange during the year was Nil (Previous Year Nil). Also, there is no expenditure in foreign exchange during the year )Previous Year Nil).

(7) SEGMENT REPORTING : The Compnay operates in one segment i.e. the manufacturing and trading of Pharmaceuticals Formulations and in one geographical area i.e. within India. Hence, the requirement of segment reporting as per Accounting Standard 17 issued by the Institute of Chartered Accountants of India (ICAI) is not applicable.

(8) RELATED PARTY DISCLOSURES / AS REQUIRED BY ACCOUNTING STANDARD-18, IS AS BELOW:-

A. Relationship:

(i) Key Management Personnel of the Company Whole Time Director - Mr. S. N. P. Ohja

(ii) Whole Time Promoter Director of the Company and thier elatives- Mr. D.C. Jain-Director and his relatives.

9. CONSOLIDATED FINANCIAL STATEMENT

The company has sold its investment in the subsidary company during the year. Therefore there is no requirement for consolidated financial statements.

10. PRIOR PERIOD

Prior period expenses amounting to Rs. 6200/- (Previous Year Rs. 79,818/-)mainly on account of personnel, administration and selling expenses and finance charges, have been accounted for under the relevant heads of account

11. INVESTMENT

During the year. Company had sold its investment of Rs. 43,75,300/- held in quoted and unquoted equity shares for Rs. 8,58,880/-. The transaction has resulted a total loss of Rs. 35,16,420/-. Against such loss, we had already made provisons for diminution in value of investments of Rs. 27,78,625/-. The net loss of Rs. 7,84,800/- after adjustment of provisions already made, has been debited to the profit & loss account.

12. FIXED ASSETS

With the decline of business of the company over the period of time and under utilisation of installed capacity of the Bhiwadi Plant, management had decided to discontinue existing business. To implement this decision, all the fixed assets of the company were sold out and possession thereof handed over to the buyer during the year and profit of Rs. 1,57,90,100/- accounted for in the profit & loss account.

13. OTHER INCOME

The company was having certain liabilities payable to its lenders/creditors, which has been fully & finalally settled during the year either by way of payments or transfer of assets ( net of liabilities and provisions) consequent to such settlements, the amount of Rs. 38,29,618 which remain no longer payable has been written back and shown as other income.

14. PROVISIONS OF BENEFITS FOR EMPLOYEES

Due to closure of factory at Bhiwadi; most of the employees left the Company gradually. The Company has calculated the amount of Rs. 43,75,026/ - towards gratuity and leave encashment for the remaining workers/staff. However, the provision of Rs. 34,00,000/- in respect of said liabilities has been made to the extent of availability of funds with the company and considering the fact that balance amounts have also been forgone by the claimants.

15. REARRANGEMENT & ROUNDING OF

The figures of the previous year have been regrouped and rearranged wherever considered necessary to make them comparable with current year figures.

All figures have been roundedoff to the nearest rupees.

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Mar 31, 2010

(1) CONTINGENT LIABILITY : There is no claim against the Company, which is to be acknowledged as debt

(2) GUARANTEE : Pending Bank Guarantee is Rs. 15,000.00 (Previous year Rs. 15,000.00.)

3. REALISED VALUE OF LOANS & ADVANCES :ln the opinion of the Board and to the best of the knowledge and belief, the value on realisation of loans, advances and current assets in the ordinary course of business will not be less than the amount at which they are stated in Balance Sheet.

4. SSI OUTSTANDING : As on 31.3.2010 amount payable to supplier is not covered under the provisions of Micro, Small and Medium Enterprises Development Act, 2006.

5. LOANS AND ADVANCES (INCLUDING INTER CORPORATE DEPOSIT : An amount of Rs. 21.24 Lacs, given as inter corporate deposit to RKM Securities Pvt. Ltd. in 1994-95 is due from them with interest. The legal action is already taken but final decision is still pending. As per information available presently fron legal action, it is no certainty of collection of amount from the party. Considering chances of non recovery, provision for doubtful debt of Rs. 21.24 Lacs has been made in 2008-09 and the same is maintained at the end of the year as on 31.03.2010.

(6) FOREIGN EXCHANGE: During the year, goods worth of Rs. 33,76,239/- (Previous Year 11,74,497/-) were exported indirectly through channeling/ merchandise exporters. Therefore, earning in foreign exchange during the year was Nil (Previous Year Nil). Also, there is no expenditure in foreign exchange during the year (Previous Year Nil).

(7) SEGMENT REPORTING : The Company operates in one segment i.e. the manufacturing and trading of Pharmaceuticals Formulations and in one geographical area i.e. within India. Hence, the requirement of segment reporting as per Accounting Standard 17 issued by the Institute of Chartered Accountants of India (ICAI) is not applicalbe.

(8). RELATED PARTY DISCLOSURES / AS REQUIRED BY ACCOUNTING STANDARD -18, IS AS BELOW :-A. Relationship :

(i) Enterprises Controlled by the Promoter/ Key Management Personnel of the Company

Subsidiary of the Company - A.K. Laboratories Ltd. (ii) Key Management Personnel of the Company

Whole Time Director - Mr. S.N.P. Ohja (iii) Whole Time Promoter Director of the Company and their relatives - Mr. D.C.Jain-Director and his relatives.

9. CONSOLIDATED FINANCIAL STATEMENT

Consolidated Financial Statements as per accounting standard 21 "Consolidated Financial Statements" issued by the ICAI, duly audited are enclosed.

10. Prior period expenses amounting to Rs. 79,818/- (Previous Year Rs. 17,66,457/-)mainly on account of personnel, administration and selling expenses and finance charges, nave been accounted for under the relevant heads of account.

11. VALUATION OF INVESTMENT

Investments are stated at cost. However, provision for diminution in value was made of Rs. 28,04,200/- in the previous year to recognize a decline other than temporary in the value of the investments. During the current year, the provision for diminution in value is revised from Rs. 28,04,200/- to Rs.27,78,625/- due to increase in market value of quoted investment by Rs. 25,575/-.

12. BAD DEBTS WRITTEN OFF

During the year, amount of Rs.6,75,034/- is written off as bad debts out of the provisions of doubtful debts (Previous Year Rs.1,57,63,552/-)

13. PROVISION FOR DOUBTFUL DEBTS

Specific provisions for doubtful debts of Rs. 1,38,92,154/-(Rs. 86,77,425/- for debtors was Rs. 52,14,729/- for loans & advances) was made in the previous year in cases where collection of debt is uncertain. In certain cases, legal suits had also been filed for recovery for overdue amount. But the chances of recovery are bleak.Therefore, provision for doybtful debts was made in the previous year. Out of the above provision, an amount of Rs. 9,58,115/- has been withdrawn/utilized and Rs. 6,75,034/- written off against the provisions for doubtful debts during the current year.

A further provision for doubtful debts of Rs. 2,07,900/- is made during the year.

Thus the provision for doubtful debts has worked out to be Rs. 1,24,66,905/- (Rs. 72,52,176/- for debtors and Rs. 52,14,729/- for loans & advances.)

14. REARRANGEMENT & ROUNDING OFF -

(i) The figures of the previous year have been regrouped and rearranged wherever considered necessary to make them comparable with current year figures.

(ii) All Figures have been rounded off to the nearest rupees.