Accounting Policies of Zenlabs Ethica Ltd. Company

Mar 31, 2024

Note 3 Summary of Material Accounting Policies

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies
Act, 2013 (the Act), read with the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act.

The standalone financial statements are presented in Indian Rupees (^ Lakhs) which is the functional currency of the Company and all values are
rounded to the nearest crores, except where otherwise indicated.

Entity specific disclosure of material accounting policies where Ind AS permits options is disclosed hereunder.

The company has assessed the materiality of the accounting policy information which involves exercising judgements and considering both qualitative
and quantitative factors by taking into account not only the size and nature of the item or condition but also the characteristics of the transactions,
events or conditions that could make the information more likely to impact the decisions of the users of the financial statem ents.

Entity''s conclusion that an accounting policy is immaterial does not affect the disclosures requirements set out in the accounting standards.

The company adopted Ind AS from 1^st April 2017.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 adopted.

a) Current and non-current classification

All assets and liabilities are classified into current and non-current.

Assets

An asset is classified as current when it satisfies any of the following criteria:

> It is expected to be realised in, or is intended for sale or consumption in, the Company''s normal operating cycle;

> It is held primarily for the purpose of being traded;

> It is expected to be realised within 12 months after the reporting date; or

^ It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting
date.

Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

> It is expected to be settled in the Company''s normal operating cycle;

> It is held primarily for the purpose of being traded;

> It is due to be settled within 12 months after the reporting date; or

>

The Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Terms of
a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include the current portion of financial liabilities some part of which may be noncurrent. All other liabilities are classified as non
current.

Operating cycle

The operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. Based on the
nature of operations and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company
has ascertained its operating cycle being a period of 12 months for the purpose of classification of assets and liabilities as current and non¬
current.

b) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes
place either

> In the principal market for the asset or liability, or

> In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible to/ by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market
participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair
value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy,
described as follows, based on the lowest level input that is significant to the fair value measurement as a whole.

Level 1 - Quoted (unadjusted) prices in active markets for identical assets or liabilities;

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable;
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

c) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another
entity.

i. Financial assets

Initial recognition and measurement

All financial assets 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 of financial assets, which are not valued at fair value through profit
or loss, are added to the fair value on initial recognition.

Classification and subsequent measurement

Classification

For the purpose of subsequent measurement, the Company classifies financial assets in following categories:

- Financial assets at amortised cost;

- Financial assets at fair value through profit or loss (FVTPL)

A financial asset being ''debt instrument'' is measured at the amortised cost if both of the following conditions are met
- The financial asset is held within a business model whose objective is to hold assets for collecting 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 interest
(SPPI) on the principal amount outstanding.

A financial asset being equity instrument is measured at FVTPL.

All financial assets not classified are measured at amortised cost are measured at FVTPL. On initial recognition, the Company may
irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if
doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Subsequent measurement

Financial assets at amortised cost: These assets are subsequently measured at amortised cost using the effective interest method. The
amortised cost is reduced by impairment losses, if any. Interest income and impairment are recognised in the statement of profit and loss.

Financial assets at FVTPL: These assets are subsequently measured at fair value. Net gains and losses, including any interest income, are
recognised in the statement of profit and loss.

Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the
rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial
asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it
does not retain control of the financial asset. Any gain or loss on derecognition is recognised in the statement of profit and loss.

Impairment

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 has
been a significant increase in credit risk from initial recognition, in which case those financial assets are measured at lifetime ECL. The
changes (incremental or reversal) in loss allowance computed using ECL model, is recognised as an impairment gain or loss in the statement
of profit and loss.

Write-off

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of
recovery. This is generally the case when the Company determines that the counterparty does not have assets or sources of income that
could generate sufficient cash flows to repay the amounts subject to the write-off. However, financial assets that are written off could still be subject
to enforcement activities in order to comply with the Company''s procedures for recovery of amounts due.

ii. Financial liabilities

Initial recognition and measurement

All financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument. All financial
liabilities are initially measured at fair value minus, in the case of financial liabilities not recorded at fair value through profit or loss,
transaction costs that are attributable to the liability.

Classification and subsequent measurement

Financial liabilities are classified and measured at amortised cost.

Financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense are recognised in the
statement of profit and loss. Any gain or loss on derecognition is also recognised in the statement of profit and loss.

Derecognition

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.

The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are
substantially different. In this case, a new financial liability based on modified terms is recognised at fair value. The difference between the carrying
amount of the financial liability extinguished and the new financial liability with modified terms is recognised in the statement of profit and
loss.

iii Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company currently
has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the assets and settle the
liabilities simultaneously.

d) Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.

e) Property, plant and equipment

Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalised borrowing costs, less accumulated depreciation and
accumulated impairment losses, if any.

Cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes,
after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for its intended use and estimated
costs of dismantling and removing the item and restoring the site on which it is located.

The cost of a self-constructed item of property, plant and equipment comprises the cost of materials and direct labour, any other costs directly
attributable to bringing the item to working condition for its intended use, and estimated costs of dismantling and removing the item and
restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major
components) of property, plant and equipment.

Capital work-in-progress includes assets under construction and cost attributable to construction of assets not ready for use before the year
end.

Subsequent expenditure

Subsequent expenditure are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only wh en it is probable
that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying
amount of any component accounted for as a separate asset is derecognised when replaced.

All other repairs and maintenance are charged to the statement of profit and loss during the reporting period in which they are incurred.
Depreciation methods, estimated useful lives and residual value

i- Depreciation on property, plant and equipment has been provided as per guidance set out in Schedule II of the Companies Act, 2013 on
straight line basis.

ii. Depreciation method, useful lives and residual values are reviewed at each reporting period end.

f) Impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when
annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the
higher of an asset''s fair value or cash-generating unit''s (CGU) fair value less costs of disposal and its value in use.

Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those
from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount.

g) Inventories

The stock-in-trade and promotional items are valued at lower of cost or net realizable value in accordance with Accounting Standard. The stock-in¬
trade and promotional items costs are based on ''first in first out'' method. Cost of inventories include all costs of purchase, cost and other cost
incurred in bringing the inventories to their present condition and location.

h) Employee benefits

i. Short-term obligations

All employee benefits payable / available within twelve months of rendering the service such as salaries, wages and bonus etc., are classified as
short-term employee benefits and are recognised in the statement of profit and loss in the period in which the employee renders the related
service.

ii. Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will
have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognised as an
employee benefit expense in the statement of profit and loss in the periods during which the related services are rendered by employees. The Company
makes specified contributions towards the following schemes:

Employees'' provident fund

The Company has a scheme of state insurance for its employees, registered with the regional state insurance commissioner. The Company''s
contribution to the state insurance is charged to the statement of profit and loss every year.

Employees'' provident fund

All directly recruited employees of the Company are entitled to receive benefits under the provident fund, a defined contribution plan. Both employee
and employer make monthly contribution to the plan at a predetermined rate of employee''s basic salary and dearness allowance. These
contributions to provident fund are administered by the provident fund commissioner. Employer''s Contribution to provident fund is expensed in
the statement of profit and loss as and when incurred.

iii Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.

Gratuity

The Company provides for gratuity, a defined benefit plan (the Gratuity Plan) covering all directly recruited eligible employees. In accordance
with the payment of Gratuity Act, 1972, the Gratuity plan provides a lump sum payment to vested employees on retirement, death,
incapacitation or termination of employment.

The calculation of defined benefit obligation is performed annually by a qualified actuary separately for each plan using the projected unit
credit method, which recognises each year of service as giving rise to additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation.

The obligation is measured at the present value of estimated future cash flows. The discount rates used for determining the present value of
obligation under defined benefit plans, is based on the market yields on Government securities as at the balance sheet date, having maturity periods
approximating to the terms of related obligations.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the
net defined benefit, are recognised immediately in the balance sheet a corresponding debit or credit to retained earnings through OCI in the
period in which they occur.

Re-measurements are not reclassified to the statement of profit and loss in subsequent periods.

The Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount
rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset),
taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit
payments. Net interest expense and other expenses related to defined benefit plans are recognised in the statement of profit and loss.

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Mar 31, 2018

NOTE 1:

FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDING 31ST MARCH 2018

Company overview:

Zenlabs Ethica Limited [''the Company"] is a pharmaceutical company. It deals in marketing and distribution of pharmaceutical products. The company is domiciled in India and is listed on the Bombay Stock Exchange (BSE).

1 SIGNIFICANT ACCOUNTING POLICIES A. Basis of Accounting

The financial statements have been prepared under the historical cost convention on the "Accrual Concept" of accountancy in accordance with the Indian Accounting Standards (Ind AS), except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (''the Act'') (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI) and they comply with the Accounting Standards notified under section 133 of the Companies Act, 2013 read with Rule 3 of the Companies [Indian Accounting Standards] Rules,2015andthe relevant amendment rules issued thereafter.

Effective April 1, 2018, the Company has adopted all the Ind AS standards and the adoption has been carried out in accordance with Ind AS 101, The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP.

As the year-end figures are taken from the source and rounded to the nearest digits, the figures reported for the previous quarters might not always add up to the year-end figures reported in this statement.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria''s set out in the schedule III to the Companies Act, 2013. Based on the nature of products and the time taken between acquisition of assets for processing and their realization in cash and cash equivalent, the Company has ascertain its operating cycle as twelve months for the purpose of classification of assets and liabilities into current and non-current

B Use of estimates

The preparation of Financial Statements is inconformity with the Ind AS requires the Management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, expenses and disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses for the year. Actual results may differ from these estimates. The application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements. Any revision to accounting estimates is recognized in the period in which the estimate is revised and future periods affected.

C. Property, Plant and Equipment

A. Property, Plant and Equipment a restated at cost less accumulated depreciation and impairment loss, if any. The cost comprise purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use.

B. Depreciable amount for Property, Plant and Equipment is the cost of an asset, or other amount substituted for cost, less its estimated residual value.

C. Depreciation on Property, Plant & Equipment is provided on Straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

D. Where the actual cost of purchase of an asset is below Rs.10,000/-, the depreciation is provided @100%.

E. Management periodically assesses, using external and internal sources, whether there is an indication that an asset may be impaired. An impairment occurs where the carrying value of the Asset exceeds its recoverable amount Recoverable amount is higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. An impairment loss, if any, is recognized in the period in which the impairment takes place.

F. On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment and intangible assets recognized as at April 01, 2017 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment and intangible assets.

D. Borrowing Cost

A. Borrowing Cost includes interest

B. Such costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalized as part of the cost of such assets, upto the date the assets are ready for their intended use.

C. Other borrowing costs are recognized as an expense in the year in which they are incurred.

E. Valuation of Inventories

A. Inventories are valued at lower of cost and net realizable value.

F. Foreign currency transactions:

Foreign currency transactions are recorded as exchange rates prevailing on the date of transaction. Foreign currency denominated monetary assets and liabilities are restated into the functional currency using exchange rates prevailing on the date of Balance Sheet. Gains and losses arising on settlement and restatement of foreign currency denominated monetary assets and liabilities are recognised in the profit or loss.

G. Financial Instruments: Financial Assets: -

Recognition and initial measurement: -

Financial assets and financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument and are measured initially a fair value adjusted for transection cost.

Subsequent measurement: -

Equity instrument and Mutual Fund: - All equity Instrument and mutual funds within scope of Ind-AS 109 are measured at fair value. Equity instrument and Mutual fund which are held for trading are classified as at fair value through profit & loss (FVTPL). For all other equity instruments, the Company decided to classify them as at fair value through other comprehensive income (FVTOCI).

Debt instrument: - A''debt instrument''is measured at the amortized cost if both the following conditions are met. The assets is held within a business model whose objective is to hold assets for collecting contractual cash flows, and Contractual terms of the assets given rise on specified dates to cash flows that are solely payments of Principal and Interest on the principal amount outstanding. After initial measurement, such Financial Assets are subsequently measured at amortised cost using the effective interest rate (EIR) method.

De- recognition of Financial Assets

A financial asset is primarily de-recognised when the rights to receive cash flows from the asset have expired or Company has transferred its right to receive cash flow from the asset.

Financial Liabilities: -

Recognition and initial measurement: -

All Financial liabilities are recognized initially at fair value and transection cost that is attributable to the acquisition of the financial liabilities is also adjusted. Financial liabilities are classified as amortised cost.

Subsequent measurement:

Subsequent to initial recognition, these liabilities are measured at Amortised cost using the effective interest rate method.

De-recognition of Financial liabilities

Financial liabilities are derecognized when the obligation under the liabilities are discharged or cancelled or expires. Consequently, write back of unsettled credit balances is done on closure of the concerned project or earlier based on the previous experience of Management and actual facts of each case and recognized in other Operating Revenues. Further when an existing Financial liability is replaced by another from the same lender on substantially different terms , or the terms of existing liability are substantially modified , such an exchange or modification is treated as the de-recognition 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 and Loss.

Offsetting of Financial Instrument

Financial Assets and Financial Liabilities are offset and the net amount is reported in the Balance sheet if there is currently enforceable legal right to offset the recognized amounts and there is an intention to settle on net basis, to realize the assets and settle the liabilities simultaneously.

F. Revenue Recognition

A. Revenue from Sale of goods is recognized when significant risks and rewards of ownership of the goods have been passed on to the buyer.

B. Revenue in respect of other income is recognised when no significant uncertainty as to its determination or realization exists.

G Expenditure

Expenses are accounted for on accrual basis, net of recoveries, if any and provision is made for all known losses and liabilities

H Employee Benefits

A. The Company contributes on a defined contribution basis to Employees'' Provident Fund towards post-employment benefits which is expensed in the year to which it pertains.

B. The liability for the defined benefit plan of Gratuity is determined on the basis of an actuarial valuation by an independent actuary at the year end, which is calculated using projected unit credit method. Actuarial gains and losses which comprise experience adjustment and the effect of changes in actuarial assumptions are recognised in the statement of Profit and Loss.

I. Accounting for Taxes on Income

A. Tax expenses comprise current and deferred tax.

B. Current tax is measured at the amount expected to be paid on the basis of reliefs and deductions available in accordance with the provisions of the Income Tax Act, 1961.

C. Deferred tax reflects the impact of current year timing differences between accounting and taxable income and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets are recognised only to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized and are reviewed at each balance sheet date.

D. Minimum Alternate Tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income tax during the specified period, i.e. the period for which MAT credit is allowed to be carried forward. In the year in which the company recognizes MAT credit as an asset in accordance with the guidance note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income Tax Act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as "MAT Credit Entitlement". The Company reviews the "MAT credit entitlement" asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.

J Foreign Currency Transactions:

A. The transactions in foreign currencies are stated at the rates of exchange prevailing on the dates of transactions.

B. The net gain or loss on account of exchange rate differences either on settlement or on translation of short term monetary items is recognised in the statement of Profit and Loss.

K In the Opinion of the Board of Directors, the current assets, loans & advances are approximately of the value stated if realized in the ordinary course of business. The provision of all known liabilities is made on accrual basis.

Company as a policy obtains balance confirmation from sundry debtors and creditors on monthly/quarterly/half yearly basis depending upon quantum of transaction made with the parties.

Considering the same company does not have all balance confirmations as at 31st March 2018, the effect of the same, if any which is not likely to be material will be adjusted at the time of confirmation.

L Cash and Cash Equivalents

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

M Revenue Recognition

Revenue is recognised to the extent it is probable that economic benefits will flow to the Company and there venue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable. All revenues are accounted on accrual basis except to the extent stated otherwise. N Details of Payment to Auditors

Particulars	Current Year (Rs)	Previous Year fRs)
Statutory Audit Fee	1,22,720.00	1,15,000.00
Total	1,22,720.00	1,15,000.00

0 Detail of transactions entered into with related parties during the year as required by AS-18 (Related Party) issued by ICAI, New Delhi are as under

A. Names of the related parties and related party relationships:-

i) List of key management personnel as defined under Accounting standard (AS 18"Related Party Disclosures") a) Mr. Sanjeev Kumar b) Mr. Satish Kumar c) Mrs. Himjyoti Dhir

ii) List of relatives of key management personnel a) Mr. Sanjay Dhir

ii) Enterprises owned or significantly influenced by key management personnel.

a) Preet Remedies Pvt Ltd

b) M/s Quixotic Healthcare

c) M/s Alpha Products

d) Ultrachiron Healthcare Pvt Ltd

e) Oasis Pharma and Phytomolecules Pvt Ltd

B. Transactions during the year with related parties are as under:-

Name of Related Party	Nature of Transaction	2017-18	2016-17
Preet Remedies Private Limited	Purchase of Traded Goods	85,183,583	124,773,949
Preet Remedies Pvt Ltd Unit II	Purchase of Traded Goods	116,156,680	102,832,934
Quixotic Healthcare Unit I	Purchase of Traded Goods	112,992,090	21,861,369
Quixotic Healthcare LL	Purchase of Traded Goods	46,469,785	146,149,726
Quixotic Healthcare Unit II	Purchase of Traded Goods	48,379,167	59,804,578
Alpha Products	Purchase of Traded Goods	60,030,134	96,376,995
Ultrachiron Healthcare Pvt Ltd.	Purchase of Traded Goods	20,192,083	32,055,018
Ultrachiron Healthcare Pvt Ltd.	Sale of Traded Goods	-	44,658
Oasis Pharma and Phytomolecules Pvt Ltd.	Purchase of Traded Goods	6,691,235	24,133,558
Mr. Sanjeev Kumar	Director Remuneration	4,980,000	24,00,000
Mr. Sanjay Dhir	Director Remuneration	1,920,000	600,000

P. Managing Directors Remuneration

Particulars	Current Year	Previous Year
Salary & Allowances	69,00,000	30,00,000

Q Figures have been regrouped/ rearranged wherever necessary to make them comparable with the figure of previous year.

R In compliance with AS-22, Accounting for taxes on income issued by the ICAI, a sum of Rs. 3,27,239 being Deferred Tax Asset has been recognised in the books of accounts.

S Segment Reporting

The company is considered to be a single segment company engaged in the trading of pharmaceutical formulations. Consequently, the company has, in its primary segment, only one reportable business segment

T Earning Per Share

The earnings considered in ascertaining the Company''s Earnings per share (EPS) comprise the net profits after tax but before adjustment of deferred Tax.

U There are no litigations pending against the Company as on date. In terms of our separate report of even date annexed.

AUDITOR''S REPORT
For Vijay Darji And Associates	For and on behalf of the Board
Chartered Accountants
FRN: 118614W
Sd/-	Sd/-	Sd/-
CA Vijay Darji	Sanjeev Kumar	Sanjay Dhir
Proprietor	Managing Director and CEO	Wholetime Director and CFO
M.No.105197
Place: Chandigarh
Date: 23-05-2018

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Mar 31, 2014

A. Basis of Preparation

The Financial statements have been prepared to comply with the mandatory Accounting standards issued by The Institue of Chartered Accountants of India (ICAI ) and the relevent provisions of the Companies Act 1956 (the Act). The Financial statements have been prepared under the historical cost convention on accrual basis. The Accounting policies have been consistantly applied by the company unless otherwise stated.

B. Income & Expenditures

Income and Expenses are recognised and accounted for on accrual basis

C. Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation

D. Depreciation

Depreciation on fixed assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 for assets acquired by the company . Depreciation on Data Processing Equipment has been provided on WDV Method in the manner prescribed by Schedule XIV of the Companies Act, 1956.

E. Valuation of Inventories

Items of Inventories i.e the stock of shares comprising of unlisted companies is valued at cost price.

F. Employee Benefits

Provident Fund/ ESI - No contributions to P.F and ESI were made during the year as the company as the company has transferred all its employees covered under the Act to its sister concern, M/S Zen Labs India.

Gratuity / Leave Encashment - As none of the employee has completed prescribed period as per the payment of Gratuity Act, and moreover there are no pending leaves due to the employees therefore no provision for Gratutity as well as provison for leave encashment has been made in the books of accounts.

G. Accounting for Taxes on Income

Provision for current tax is made on the basis of the amount of tax payable on taxable income for the year in accordance with the Income Tax Act 1961. Deferred Tax resulting from timing difference between book and taxable profit , wherever material is accounted for using the tax rates and laws that have been enacted or substantially enacted as on balance sheet. Deferred Tax Assets ,if any, subject to consideration of prudence are and carried forward only to the extent that there is reasonable certainity that sufficient future taxable income will be available against which such deferred tax assets can be realised.

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Mar 31, 2013

A. Basis of Preparation

The Financial statements have been prepared to comply with the mandatory Accounting standards issued by The Institute of Chartered Accountants of India ( ICAI ) and the relevant provisions of the Companies Act 1956 (the Act). The Financial statements have been prepared under the historical cost convention on accrual basis. The Accounting policies have been consistently applied by the company unless otherwise stated.

B. Income & Expenditures

Income and Expenses are recognized and accounted for on accrual basis.

C. Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation

D. Depreciation

Depreciation on fixed assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 for assets acquired by the company .Depreciation on Data Processing Equipment has been provided on WDV Method in the manner prescribed by Schedule XTV of the Companies Act, 1956.

E. Valuation of Inventories

Items oflnventories Le Stock in traded goods is valued at cost or market price whichever is less. The stock of shares comprising of unlisted companies is valued at cost price.

F. Employee Benefits

Provident Fund/ ESI - No contributions to P.F and ESI were made during the year as the company transferred all its employees covered under the act to its sister concern M/s Zen Labs India . Gratuity / Leave Encashment - As none of the employee has completed prescribed period as per the payment of Gratuity Act, no provision has been made No Provision for Leave Encashment has been made.

G. Accounting for Taxes on Income Tax

Provision for current tax is made on the basis of the amount of tax payable on taxable rom timing difference between book and taxable profit, wherever material is accounted for using the tax rates and laws that have been enacted or substantial enactedTon balance sheet. Deferred Tax Assets ,if any, subject to consideration of prudence are and carried forward only to the extent that there is reasonable certainty tlj sufficient tore taxable income will be available against which such deferred tax alsets.

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Mar 31, 2010

A. Basis of Preparation

The Financial statements have been prepared to comply with the mandatory Accounting standards issued by The Insttue of Chartered Accountants of India ( ICAI) and the relevent provisions of the Companies Act 1956 (the Act). The Financial statements have been prepared under the historical cost convention on accrual basis. The Accounting polocies have been consistantly applied by the

B. Income & Expenditures

Income and Expenses are recognised and accounted for on accrual basis

C Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation

D. Depreciation

Depreciation on fixed assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV of the

E. Valuation of Inventories

Items of Inventories i.e Stock in traded goods is valued at cost or market price whichever is less. The stock of shares comprising of

F. Employee Benefits

Provident Fund/ ESI - Contributions to P.F and ESI are made as per the provision of the relevant act.

Gratuity / Leave Encashment - As none of the employee has completed prescribed period as per the payment of Gratuity Act, no provision has been made. No Provision for Leave Encashment has been made

G. Accounting for Taxes on Income Tax

Provision for current tax is made on the basis of the amount of tax payable on taxable income for the year in accordance with the Income Tax Act 1961. Deferred Tax resting from timing difference between book and taxable profit .wherever material is accounted for using the tax rates and laws that have been enacted or substantially enacted as on balance sheet. Deferred Tax Assets, if any, subject to consideration of prudence are and carried forward only to the extent that there is reasonable certainity that sufficient future taxable income will be available against which such deferred tax assets can be realised.