Nephro Care India Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

d) Provisions, contingent liabilities and contingent assets: -
Provisions

A provision is recognised when there is a present obligation
as a result of a past event and it is probable that an outflow
of resources will be required to settle the obligation and in
respect of which reliable estimate can be made. Provisions
are reviewed at each balance sheet date and adjusted to
reflect the current best estimate. If it is no longer probable
that an outflow of resources would be required to settle the
obligation, the provision is reversed.

Contingent Liabilities

A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation but probably will
not require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which the
likelihood on outflow of resources is remote, no provision or
disclosure is made.

Contingent Assets

Contingent Assets are neither recognised nor disclosed.
However, when realisation of the income is virtually certain,
related asset is recognised.

Commitments

Commitments include the amount of the purchase order
(net of advances) issued to the parties for completion of
assets. Commitments are reviewed at each reporting period.

e) Revenue Recognition: -

The Company earns revenue primarily by providing
income from OPD, Income from IPD and sale of
pharmaceutical products

Revenue is recognised upon transfer of control of promised
products or services to customers in an amount that reflects
the consideration which the Company expects to receive

in exchange for those products or services. When there is
uncertainty on ultimate collectability, revenue recognition is
postponed until such uncertainty is resolved.

Income from OPD

It consists of activities for physical examinations, treatments
and tests and other fees. The performance obligations for
this stream of revenue include food & beverage, medical/
clinical professional services and investigation

Income from IPD

It consists of activities for patients admitted to the hospital
for critical care. The performance obligations for this
stream of revenue include room and bed charges (general
ward, semi-private, private, ICU, etc.), consultation and
professional fees for attending physicians and specialists,
surgical and procedural charges, diagnostic services
availed during admission, medication and consumables
administered during the stay, nursing and support services
and other miscellaneous charges like oxygen, ambulance,
dietary services, etc.

Pharmaceutical Products (Life Medicines)

Revenue from sale of pharmacy and pharmaceutical supplies
is recognized at the point in time when control of the asset
is transferred to the customer, generally on delivery of the
pharmacy and pharmaceutical items. The Company collects
goods and service tax (GST) on behalf of the government
and, therefore, these are not economic benefits flowing to
the Company and thus excluded from revenue. Revenue
from the sale of goods is measured at the fair value of the
consideration received or receivable, net of returns and
allowances, trade discounts and volume rebates.

Interest Income

Interest income is recognised on time proportion basis
taking into account the amount outstanding and interest
rate applicable.

f) Inventories: -

Inventories comprises of pharmacy, drugs and consumables
are valued at lower of cost or net realisable value. Cost
includes cost of purchase, duties, taxes (other than those
recoverable from tax authorities) and other cost bringing
the inventories to their present location and condition.

Cost is determined First in First Out (FIFO) basis for medicine
and other consumables

Net Realisable Value represents the estimated selling price
in the ordinary course of business less estimated costs
necessary to make the sale

g) Employee Benefit Expenses: -

(a) Post Employee Benefits
Gratuity

Gratuity is a post-employment benefit and is a defined
benefit plan. The liability recognised in the balance
sheet represents the present value of the defined
benefit obligation at the balance sheet date, less
the fair value of plan assets (if any), together with
adjustment for unrecognised

actuarial gains or losses and past service cost.
Independent actuaries using the Projected Unit Credit
Method calculate the defined benefit obligation
annually. Actuarial gains or losses arising from
experience adjustments and changes in actuarial
assumptions are credited or charged to the statement
of profit and loss in the year in which such gains or
losses arises.

Provident Fund

The Company contributes to the statutory provident
fund of the Regional Provident Fund Commissioner, in
accordance with the Employees'' Provident Funds and
Miscellaneous

Provisions Act, 1952 for its employees. The plan is a
defined contribution plan and contribution paid or
payable is recognised as an expense under the head
''Contribution to provident and other funds'' in the
period in which the employee renders services.

(b) Other long -term employment Benefits
Leave Salary

The Company also provides benefit of leave salary
under which un-availed leave are allowed to be
accumulated to be availed in future. The scheme is
considered as a long-term benefit. The liability for
compensated absences is determined in accordance
with the rules of the Company and is based on actuarial
valuations made on projected unit method at the
balance sheet date.

h) Foreign Currency Transaction: -

The financial statements are presented in Indian Rupee (INR)
which is the functional and presentation currency of the
company. Foreign currency transactions are translated into
the functional currency using the spot rates of exchanges at
the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies are translated at the
functional currency spot rate of exchange at the reporting
date. Foreign exchange gain and losses resulting from the

settlement of such transaction and from the translation of
monetary assets and liabilities are generally recognised in
profit and loss in the year which they arise

i) Earnings Per Share: -

Basic earnings per equity share are calculated by dividing the
net profit for the year attributable to equity shareholders by
the weighted average number of equity shares outstanding
during the year. For the purposes of diluted earnings per
equity share, the net profit or loss for the year attributable
to equity shareholders and the weighted average number
of shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares.

j) Event after reporting date: -

Where the events occurring after the Balance Sheet date
provide evidence of conditions that existed at the end of the
reporting period, the impact of such events adjusted within
the financial statements. Otherwise, events after the Balance
Sheet date of material size or nature are only disclosed

k) Segment Reporting: -

The Company identifies primary segments based on the
dominant source, nature of risks and returns and the
internal organisation and management structure. The
operating segments are the segments for which separate
financial information is available and for which operating
profit/loss amounts are evaluated regularly by the executive
Management in deciding how to allocate resources and in
assessing performance

l) Borrowing Cost: -

Borrowing Cost includes interest and amortization of
ancillary costs incurred in connection with the arrangement
of borrowings. Borrowing costs directly attributable to the
acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for
its intended use or sale are capitalized as part of the cost of
the respective asset. All other borrowing costs are expensed
in the period they occur

m) Investments: -

Investments that are readily realisable and intended to
be held for not more than a year are classified as current
investments. All other investments are classified as long-term
investments. Current investments are carried at lower of cost
and fair value determined on an individual investment basis.
Long-term investments are carried at cost.

Provision for diminution in value is made to recognise a
decline other than temporary in the value of the long-term
investments.

n) Cash and cash equivalents: -

Cash and cash equivalents comprise cash and deposit with
banks. The Company considers all highly liquid investments
at the time of purchase with a remaining maturity of three
months or less and that are readily convertible to known
amounts of cash to be cash equivalents.

o) Impairment: -

Management periodically assesses using external and
internal sources where there is an indication that an asset
may be impaired. Impairment occurs when the carrying
value exceeds the present value of future cash flows
expected to arise from the continuing use of the asset and
its eventual disposal. The impairment loss to be recognised
is determined as the excess of the carrying amount over
the higher of asset''s net selling price and present value as
determined above. An impairment loss is reversed if there
has been a change in the estimates used to determine the
recoverable amount. An impairment loss is recorded only to
the extent that the asset''s carrying amount does not exceed
the carrying amount that would have been determined net
of depreciation or amortisation, if no impairment loss has
been recognised.

p) Government Grants: -

Government grants are not recognised until there is
reasonable assurance that the Company will comply with

the conditions attaching to them and that the grants will
be received.

Government grants are recognised in statement of profit
and loss on a systematic basis over the periods in which
the Company recognises as expenses the related costs for
which the grants are intended to compensate. Specifically,
government grants whose primary condition is that the
Company should purchase, construct or otherwise acquire
non-current assets are recognised as deferred revenue in the
balance sheet and transferred to statement of profit and loss
on a systematic and rational basis over the useful lives of the
related assets.

Government grants that are receivable as compensation for
expenses or losses already incurred or for the purpose of
giving immediate financial support to the Company with no
future related costs are recognised in the statement of profit
and loss in the period in which they become receivable

q) Lease: -

Leases of assets under which significant risks and rewards of
ownership are effectively retained by the lessor are classified
as operating leases. Lease payments under an operating
lease are recognised as expense in the statement of profit
and loss on a straight-line basis over the lease term.

(b) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of C10 per share. Each holder of equity share is entitled to one
vote per share. In the event of liquidation, the equity shareholders are entitled to receive the remaining assets of the Company
after distribution of all preferential amounts, in proportion to their shareholdings. During this financial year the Company has not
proposed / declared any dividend. However, if any dividend is proposed by the Board of Directors, it will be subject to the approval
of the Shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

(c) (i) In F.Y.2021-22 ,the authorised share capital of the Company has been increased from C10,00,000 to C50,00,000 comprising of

equity shares to 5,00,000 number of equity shares of face value of C10/- each vide EGM Resolution dated 27-11-2021

(ii) In F.Y.2021-22,the company has issued 4,90,000 number of equity shares has been issued @ C10 each vide resolution
dated 27-11-2021

(iii) In F.Y.2023-24,the company has issued 95,120 number of equity shares has been issued @ C850 each (including premium of
C840/- each) each through private placement vide resolution dated 11-12-2023

(iv) The authorised share capital of the Company has been increased to C20,000,0000 from C50,00,000 comprising of equity
shares to 2,00,00,000 number of equity shares of face value of C10/- each vide EGM Resolution dated 11-10-2023

(v) On 8^th March 2024, the company has issued bonus in proportion of 19 (nineteen) equity shares for every one equity shares held

(vi) On 5^th July 2024, the company has raised 45,84,000 equity shares by IPO @ C90 each (including premium of C80/- each)

37 Corporate Social Responsibility

The provisions of Sec 135 of the Companies Act 2013 , is not applicable to the Company

38 Disclosures in respect of assets taken on cancellable and non-cancellable operating lease under Accounting
Standard (AS)19 - "Leases".

General Description of the Company''s operating lease arrangements:

A The Company has entered into operating lease arrangement for the purposes of transit flat and office premises, the significant
terms and conditions of which are as under:-

(i) The tenure of the lease agreement is generally for a period of 36 months to 252 months.

(ii) The lease may be terminated at any time by giving a notice in writing except agreements which are having lock in period
clause, where in case of termination, the lessee has to pay the lease rentals for balance lock in period.

B The minimum lease payments to be made in future towards non-cancellable lease agreements are as follows:

41 Other statutory information

(i) The Company did not provide any loans and advances which remains outstanding (repayable on demand or without
specifying any terms or period of payment ) to sepcified persons during the year ended 31 March 2025 and 31 March 2024

(ii) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company
during the year ended 31 March 2025 and 31 March 2024

(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period
during the year ended 31 March 2025 and 31 March 2024

(iv) The Company have not traded or invested in crypto currency or any form of virtual currency during the year ended 31 March
2025 and year ended on 31 March 2024

(v) The Company has 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 has 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 does not have any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year 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 during the year ended 31 March 2025 and 31 March 2024

(viii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government
authority for the year ended 31 March 2025 and years ended 31 March 2024

42 Grant for Haemodialysis Machine

The company in collaboration with NIT Silchar has been sanctioned grant-in -aid by Science & Technology and Biotechnology
(DSTBT) Department, Govt of West Bengal for design and development of low cost haemodialysis machine with remote monitoring
facility , with a total grant value of C41.12 Lakhs , out of which C28.02 Lakhs has been disbursed . The grant received during the
year has been shown under the head Other Long Term Liabilities.Refer Note No 9

43 Trade Receivables and Payables for which confirmations are not received from the parties are subject to the reconciliation and
consequential adjustments on determination /receipt of such confirmations

44 GST Reconciliation with the books and returns are pending

45 The figures of the previous year has been regrouped / rearranged in order to conform with current years classification
Notes 1 to 45 form an integral part of these financial statements

For K.K. Chanani & Associates For and on behalf of the Board of Directors of

Chartered Accountants Nephro Care India Limited

Firm Registration No.: 322232E

Pratim Sengupta Pritam Sengupta

Krishna Kumar Chanani Managing Director Director

Partner (DIN: 03501703) (DIN: 06795012)

Membership No.056045

Tapas Saha Sougata Sengupta

Place: Kolkata (Chief Financial Officer) (Company Secretary)

Date: 28-05-2025 (PAN: BNSPS8900F) (M.N.:-.A17680)

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Mar 31, 2024

d) Provisions, contingent liabilities and contingent assets: -Provisions

A provision is recognised when there is a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent Liabilities

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation but probably will not require an outflow of resources. When there is a possible obligation

or a present obligation in respect of which the likelihood on outflow of resources is remote, no provision or disclosure is made.

Contingent Assets

Contingent Assets are neither recognised nor disclosed. However, when realisation of the income is virtually certain, related asset is recognised.

Commitments

Commitments include the amount of the purchase order (net of advances) issued to the parties for completion of assets. Commitments are reviewed at each reporting period.

e) Revenue Recognition: -

The Company earns revenue primarily by providing income from OPD and sale of pharmaceutical products

Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those products or services. When there is uncertainty on ultimate collectability, revenue recognition is postponed until such uncertainty is resolved

Income from OPD

It consists of activities for physical examinations, treatments and tests and other fees The performance obligations for this stream of revenue include food & beverage, medical/clinical professional services and investigation

Pharmaceutical Products (Life Medicines)

Revenue from sale of pharmacy and pharmaceutical supplies is recognized at the point in time when control of the asset is transferred to the customer, generally on delivery of the pharmacy and pharmaceutical items. The Company collects goods and service tax (GST) on behalf of the government and, therefore, these are not economic benefits flowing to the Company and thus excluded from revenue. Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates.

Interest Income

Interest income is recognised on time proportion basis taking into account the amount outstanding and interest rate applicable.

f) Inventories: -

Inventories comprises of pharmacy, drugs and consumables are valued at lower of cost or net realisable value. Cost includes cost of purchase, duties, taxes (other than those recoverable from tax authorities) and other cost bringing the inventories to their present location and condition.

Cost is determined First in First Out (FIFO) basis for medicine and other consumables Net Realisable Value represents the estimated selling price in the ordinary course of business less estimated costs necessary to make the sale

g) Employee Benefit Expenses: -

(a) Post Employee Benefits Gratuity

Gratuity is a post-employment benefit and is a defined benefit plan. The liability recognised in the balance sheet represents the present value of the defined benefit obligation at the balance sheet date, less the fair value of plan assets (if any), together with adjustment for unrecognised actuarial gains or losses and past service cost. Independent actuaries using the Projected Unit Credit Method calculate the defined benefit obligation annually. Actuarial gains or losses arising from experience adjustments and changes in actuarial assumptions are credited or charged to the statement of profit and loss in the year in which such gains or losses arises.

Provident Fund

The Company contributes to the statutory provident fund of the Regional Provident Fund Commissioner, in accordance with the Employees’ Provident Funds and Miscellaneous

Provisions Act, 1952 for its employees. The plan is a defined contribution plan and contribution paid or payable is recognised as an expense under the head ''Contribution to provident and other funds'' in the period in which the employee renders services.

(b) Other long -term employment Benefits Leave Salary

The Company also provides benefit of leave salary under which un-availed leave are allowed to be accumulated to be availed in future. The scheme is considered as a long-term benefit. The liability for compensated absences is determined in accordance with the rules of the Company and is based on actuarial valuations made on projected unit method at the balance sheet date.

h) Foreign Currency Transaction: -

The financial statements are presented in Indian Rupee (INR) which is the functional and presentation currency of the company. Foreign currency transactions are translated into the functional currency using the spot rates of exchanges at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchange at the reporting date. Foreign exchange gain and losses resulting from the settlement of such transaction and from the translation of monetary assets and liabilities are generally recognised in profit and loss in the year which they arise

i) Earnings Per Share: -

Basic earnings per equity share are calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purposes of diluted earnings per equity share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

j) Event after reporting date: -

Where the events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events adjusted within the financial statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed

k) Segment Reporting: -

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance. However the company is currently dealing in only one primary segment ie healthcare services

l) Borrowing Cost: -

Borrowing Cost includes interest and amortization of ancillary costs incurred in connection with the arrangement of borrowings. Borrowing costs directly attributable to the acquisition,

construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur

m) Investments: -

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost.

Provision for diminution in value is made to recognise a decline other than temporary in the value of the long-term investments.

n) Cash and cash equivalents: -

Cash and cash equivalents comprise cash and deposit with banks. The Company considers all highly liquid investments at the time of purchase with a remaining maturity of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

o) Impairment: -

Management periodically assesses using external and internal sources where there is an indication that an asset may be impaired. Impairment occurs when the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be recognised is determined as the excess of the carrying amount over the higher of asset''s net selling price and present value as determined above. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is recorded only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortisation, if no impairment loss has been recognised.

p) Lease: -

Leases of assets under which significant risks and rewards of ownership are effectively retained by the lessor are classified as operating leases. Lease payments under an operating lease are recognised as expense in the statement of profit and loss on a straight-line basis over the lease term.

Sd/-

Krishna Kumar Chanani

Partner, K K Chanani & Associates

Chartered Accountants

Membership No. 056045

FRN No. 322232E

UDIN No. 24056045BKBIIY3213

Kolkata, the 20^th August, 2024