Norris Medicines Ltd. कंपली की लेखा नीति

Mar 31, 2025

7. SIGNIFICANTACCOUNTINGPOLICIES

The accounting policies set out below have been applied consistently to all periods presented in these
financial statements unless otherwise indicated.

7.1 Financial instruments

a. Recognition and initial measurement

Trade receivables are initially recognized when they are originated. All other financial assets and financial
liabilities are initially recognized when the Company becomes a party to the contractual provisions of the
instrument.

A financial asset or financial liability is initially measure date fair value plus, for anitem not at fair value
through profit and loss (''FVTPL''), transaction costs that are directly attributable to its acquisition.

b. Classification and subsequent measurement

Financial assets:

On initial are cognition, a financial asset is classified as measure date-amortised cost; or
-FVTPL

Financial assets are not reclassified subsequent to the irinitial recognition, except if and in the period the
Company changes its business mode lf or managing financial assets.

Afinancialassetismeasuredatamortisedcostifitmeetsbothofthefollowingconditionsandisnotdesignatedasat

FVTPL

- theassetisheldwithinabusinessmodelwhoseobjectiveistoholdassetstocollectcontractualcashflows;
and

- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured
at FVTPL. This includes all derivative financial assets. 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 eliminate so significantly reduces an accounting is match that would otherwise
arise.

Financial assets: Business model assessment

The company makes an assessment of the objective of the business model in which a financial asset is held
at portfolio level because this best reflects the way the business is managed and information is provided to
management. The information considered includes:

- the stated policies and objectives for the portfolio and the operation of those policies in practice.
These include whether management''s strategy focuses on earning contractual interest income,
maintaining a particular interest rate profile, matching the duration of the financial assets to the
duration of any relatedliabilitiesorexpectedcashoutflowsorrealizingcashflowsthroughthesale of the
assets;

- how the performance of the portfolio is evaluated and reported to the company''s management;

- therisksthataffecttheperformanceofthebusinessmodel(andthefinancialassetsheldwithinthatbusine
ssmodel) and how those risks are managed;

- the frequency, volume and timing of sales of financial assets in prior periods, there as on for such
sales and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for de recognition are not
considered sales for this purpose, consistent with the company''s continuing recognition of the assets.

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair
value basis are measured at FVTPL.

Financial assets: Assessment whether contractual cash flows are solely payments of principal and interest

For the purposes of this assessment, ''principal'' is defined as the fair value of the financial asset on initial
recognition.''Interest''isdefinedasconsiderationforthetimevalueofmoneyandforthecreditriskassociated with
the principal amount outstanding during a particular period of time and for other basic lending risks and
costs (e.g. liquidity risk and administrative costs),as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the company
considers the contractual terms of the instrument. This includes assessing whether the financial asset
contains a contractual term that could change the timing or amount of contractual cash flows such that it
would not meet this condition. In making this assessment, the company considers:

-contingent events at would change the amount or timing of cash flows;

-terms that may adjust the contractual coupon rate, including variable interest rate features;

-prepayment and extension features; and

-terms that limit the company''s claim to cash flows from specified assets (e.g. non-recourse features).

Aprepaymentfeatureisconsistentwiththesolelypaymentsofprincipalandinterestcriterioniftheprepayment
amountsubstantiallyrepresentsunpaidamountsofprincipalandinterestontheprincipalamount outstanding,
which may include reasonable additional compensation for early termination of
thecontract.Additionally,forafinancialassetacquiredatasignificantdiscountorpremiumtoitscontractualpar
amount, a feature that permits or requires prepayment at an amount that substantially represents the
contractual par amount plus accrued (but unpaid) contractual interest (which may also include reasonable
additional compensation for early termination) is treated as consistent with this criterion if the fair value of
the prepayment feature is in significant at initial recognition.

Financial assets: Subsequent measurement and gains and losses

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

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. Interest income, foreign
exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition
is recognized in the statement of profit and loss.

Financial liabilities

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as
at FVTPL if it is classified as held-for-trading, or it is aderivative or it is designated as such on in it fair
recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any
interest expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at
amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses
are recognized in profit or loss. Any gain or loss on de recognition is also recognized in profit or loss.

c. De recognition

Financial assets

The company derecognizes 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 does not
reta in control of the financial asset.

If the company enters into transactions whereby it transfers assets recognized on its balance sheet, but
retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets
are not derecognized.

Financial liabilities

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 the
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 profit or loss.

d. 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 intendse
it her to settle them on a net basis or to realise the asset and settle the liability simultaneously.

7.2 Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand and short-term deposits with an original
maturity of three months or less which are readily convertible to known amounts of cash and subject to
insignificant risk of changes in value.

7.3 Cash flow statement

Cash flows are reported using the indirect method, whereby net profit/(loss) before tax is adjusted for the
effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing and financing activities of the company are segregated.

7.4 Revenue recognition Revenue from operations
Recognition and measurement

Property, plant and equipment are measured at cost, less accumulated depreciation and accumulated
impairment losses, if any. The 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.

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated
with the expenditure will flow to the company.

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

Any gain or loss on disposal of anitem of property, plant and equipment is recognized instatement of profit
and loss.

Depreciation

DepreciationontangibleassetsisprovidedontheStraightLinemethodovertheusefullivesofassetsestimated by
the Management, which coincide with useful life specified in the Schedule II of the Act except in case of the
Plant and equipment, in whose case the life of the assets has been estimated ranging from 14 to
25yearsincase of Solar power generation based on technical assessment taking into account the
natureofassets,theestimatedusageoftheassets,theoperatingconditionoftheassets,anticipatedtechnicalcha
nges,manufacturer warranties and maintenance support. Depreciation for assets purchased/sold during
the year is proportionately charged.

Depreciation method, use fully and residual values are review date each financial year-end and adjusted if
appropriate.

The cost and related accumulated depreciation are derecognized from the financial statements upon sale
or disposition of the asset and the resultant gains or losses are recognized in the statement of profit and
loss. Amount paid towards the acquisition of property, plant and equipment outstanding as of each
reporting date are recognized as capital advance and the cost of property, plant and equipment not ready
for intended use be for such date are disclosed under capital work-in-progress.

7.6 Earnings/(loss)per share

Thebasicearnings/(loss)pershareiscomputedbydividingthenetprofit/(loss)attributabletoequityshareholder
sfortheperiodbytheweightedaveragenumberofequityshares outstanding during the year.

The Company does not have potential dilutive equity shares outstanding during the year.

7.7 Income tax

Incometaxcomprisescurrentanddeferredtax.Itisrecognizedinprofitorlossexcepttotheextentthatitrelatestoa
nitemrecognizeddirectlyinequityor in other comprehensive income.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable in respect of previous years. The amount of current
tax reflects the best estimate of the tax amount expected to be paid or received after considering the
uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or
substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off
the recognized amounts, and it is intended to realize the asset and settle the liability on an it basis or
simultaneously.

Deferred tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts of
assetsandliabilitiesforfinancialreportingpurposesandthecorrespondingamountsusedfortaxationpurposes.

Deferred tax liabilities are recognized for all taxable temporary differences.

Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be
available against which they can be used. Deferred tax assets - unrecognized or recognized, are reviewed
at each reporting date and are recognized/ reduced to the extent that it is probable/ no longer probable
respectively that the related tax benefit will be realized.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realized
or the liability is settled, based on the laws that have been enacted or substantively enacted by the
reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in
which the company expects, at the reporting date, to recover or settle the carrying amount of its assets and
liabilities.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable
entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis
or their tax assets and liabilities will be realized simultaneously.

7.8 Impairment

a. Impairment of financial instruments

The Company recognizes loss allowances for expected credit losses on financial assets measured at
amortized cost;

At each reporting date, the Company assesses whether financial assets carried at amortized cost are credit
impaired. A financial asset is ''credit- impaired'' when one or more events that have a detrimental impact on
the estimated future cash flows of the financial asset have occurred.

Evidencethatafinancialassetiscredit-impairedincludesthefollowingobservabledata:

- significant financial difficulty of the borrower or issuer;

- The restructuring of a loan or advance by the Company on terms that the Company would not
consider otherwise;

- It is probable that the borrower will enter bankruptcy or other financial reorganization; or

- Thedisappearanceofanactivemarketforasecuritybecauseoffinancialdifficulties.

- The Company measures loss allowances at an amount equal to lifetime expected credit losses,
except for the following, which are me assured as 12month expected credit losses:

Debt securities that are determined to have low credit risk at the reporting date; and

- Other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over
the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowances for trade receivables are always measured at an amount equal to lifetime expected credit
losses.

Lifetime expected credit losses are the expected credit losses that result from all possible default events
over the expected life of a financialinstrument.12-month expected credit losses are the portion of expected
credit losses that result from default events thatarepossiblewithin12months after the reporting date (or a
shorter period if the expected life of the instrument is less than 12months).

In all cases, the maximum period considered when estimating expected credit losses is the maximum
contractual period over which the Company is exposed to credit risk.

When determining whether the credit risk of a financial asset has increased significantly since initial
recognition and when estimating expected credit losses, the Company considers reasonable and
supportable information that is relevant and available without undue cost or effort. This includes both
quantitative and qualitative information and analysis, based on the Company''s historical experience and
informed credit assessment and including forward-looking information.

Measurement of expected credit losses

Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as
the present value of all cash short falls (i.e. the difference between the cash flows due to the Company in
accordance with the contract and the cash flows that the Company expects to receive).

Presentation of allowance for expected credit losses in the balance sheet.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying
amount of the assets.

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
trade receivable 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.

b. Impairment of non-financial assets

The company''s non-financial assets and deferred tax assets are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such indication exists, then the asset''s
recoverable amount is estimated.

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Mar 31, 2024

7. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies set out below have been applied consistently to all periods presented in these
financial statements unless otherwise indicated.

7.1 Financial instruments

a. Recognition and initial measurement

Trade receivables are initially recognized when they are originated. All other financial assets and
financial liabilities are initially recognized when the Company becomes a party to the contractual
provisions of the instrument.

A financial asset or financial liability is initially measured at fair value plus, for an item not at fair
valuethrough profit and loss (''FVTPL''), transaction costs that are directly attributable to its
acquisition.

b. Classification and subsequent measurement
Financial assets:

On initial recognition, a financial asset is classified as measured at

- amortised cost; or

- FVTPL

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period
the Company changes its business model for managing financial assets.

A financial asset is measured at amortised cost if it meets both of the following conditions and is
notdesignated as at FVTPL

- the asset is held within a business model whose objective is to hold assets to collect
contractual cash flows; and

- the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

All financial assets not classified as measured at amortised cost or FVOCI as described above are
measured atFVTPL. This includes all derivative financial assets. On initial recognition, the Companymay
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.

Financial assets: Business model assessment

The company makes an assessment of the objective of the business model in which a financial asset is
held at a portfolio level because this best reflects the way the business is managed and information is
provided to management. The information considered includes:

- the stated policies and objectives for the portfolio and the operation of those policies in
practice. These include whether management''s strategy focuses on earning contractual
interest income, maintaining a particular interest rate profile, matching the duration of the
financial assets to the duration of any related liabilities or expected cash outflows or realizing
cash flows through the sale of the assets;

- how the performance of the portfolio is evaluated and reported to the company''s management;

- the risks that affect the performance of the business model (and the financial assets held
within thatbusiness model) and how those risks are managed;

- the frequency, volume and timing of sales of financial assets in prior periods, the reasons
for such sales and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not
considered sales for this purpose, consistent with the company''s continuing recognition of the assets.

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair
value basis are measured at FVTPL.

Financial assets: Assessment whether contractual cash flows are solely payments of principaland
interest

For the purposes of this assessment, ''principal'' is defined as the fair value of the financial asset on
initial recognition. ''Interest'' is defined as consideration for the time value of money and for the credit
risk associated with the principal amount outstanding during a particular period of time and for other
basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the
company considers the contractual terms of the instrument. This includes assessing whether the
financial asset contains a contractual term that could change the timing or amount of contractual cash
flows such that it would not meet this condition. In making this assessment, the company considers:

-contingent events that would change the amount or timing of cash flows;

-terms that may adjust the contractual coupon rate, including variable interest rate features;

-prepayment and extension features; and

-terms that limit the company''s claim to cash flows from specified assets (e.g. non-recourse features).

A prepayment feature is consistent with the solely payments of principal and interest criterion if the
prepayment amount substantially represents unpaid amounts of principal and interest on the principal
amount outstanding, which may include reasonable additional compensation for early termination of
the contract. Additionally, for a financial asset acquired at a significant discount or premium to its
contractualpar amount, a feature that permits or requires prepayment at an amount that substantially
represents the contractual par amount plus accrued (but unpaid) contractual interest (which may also
include reasonable additional compensation for early termination) is treated as consistent with this
criterion if the fair value of the prepayment feature is insignificant at initial recognition.

Financial assets: Subsequent measurement and gains and losses

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

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. Interest income,
foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on
derecognition is recognized in the statement of profit and loss.

Financial liabilities

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability isclassified
as at FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial
recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including
any interest expense, are recognized in profit or loss. Other financial liabilities are subsequently
measured at amortized cost using the effective interest method. Interest expense and foreign
exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also
recognized in profit or loss.

c. Derecognition
financial assets

The company derecognizes 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 does not retain control of the financial asset.

If the company enters into transactions whereby it transfers assets recognized on its balance sheet, but
retainseither all or substantially all of the risks and rewards of the transferred assets, the transferred
assets are not derecognized.

Financial liabilities

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 the modified terms is recognised at fair value. The difference between the carrying amount of
the financial liabilityextinguished and the new financial liability with modified terms is recognised in
profit or loss.

d. 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 asset and settle the liability
simultaneously.

7.2 Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand and short-term deposits with an original
maturity of three months or less which are readily convertible to known amounts of cash and subject
to insignificant risk of changes in value.

7.3 Cash flow statement

Cash flows are reported using the indirect method, whereby net profit/(loss) before tax is adjusted for
the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash

receipts or payments. The cash flows from operating, investing and financing activities of the company
are segregated.

7.4 Revenue recognition Revenue from operations
Recognition and measurement

Property, plant and equipment are measured at cost, less accumulated depreciation and accumulated
impairment losses, if any. The 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.

Subsequent expenditure is capitalized only if it is probable that the future economic benefits
associated with the expenditure will flow to the company.

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

Any gain or loss on disposal of an item of property, plant and equipment is recognized in statement
of profit and loss.

Depreciation

Depreciation on tangible assets is provided on the Straight Line method over the useful lives of assets
estimated by the Management, which coincide with useful life specified in the Schedule II of the Act
except in case of the Plant and equipment, in whose case the life of the assets has been estimated
ranging from 14 to 25 years in case of Solar power generation based on technical assessment taking
into account the nature of assets,the estimated usage of the assets, the operating condition of the
assets, anticipated technical changes, manufacturer warranties and maintenance support. Depreciation
for assets purchased/sold during the year is proportionately charged.

Depreciation method, useful lives and residual values are reviewed at each financial year-end and
adjusted ifappropriate.

The cost and related accumulated depreciation are derecognized from the financial statements upon
sale or disposition of the asset and the resultant gains or losses are recognized in the statement of
profit and loss. Amount paid towards the acquisition of property, plant and equipment outstanding as
of each reporting date are recognized as capital advance and the cost of property, plant and equipment
not ready for intended use before such date are disclosed under capital work-in-progress.

7.6 Earnings/(loss) per share

The basic earnings/(loss) per share is computed by dividing the net profit/(loss) attributable to equity
shareholders for the period by the weighted average number of equity shares outstanding during the
year.

The Company does not have potential dilutive equity shares outstanding during the year.

7.7 Income tax

Income tax comprises current and deferred tax. It is recognized in profit or loss except to the
extent that it relates to an item recognized directly in equity or in other comprehensive income.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable in respect of previous years. The amount of
current tax reflects the best estimate of the tax amount expected to be paid or received after
considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws)
enacted or substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set
off the recognized amounts, and it is intended to realize the asset and settle the liability on a net basis
or simultaneously.

Deferred tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the corresponding amounts used for taxation
purposes.

Deferred tax liabilities are recognized for all taxable temporary differences.

Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be
available against which they can be used. Deferred tax assets - unrecognized or recognized, are
reviewed at each reporting date and are recognized/ reduced to the extent that it is probable/ no
longer probable respectively that the related tax benefit will be realized.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is
realized or the liability is settled, based on the laws that have been enacted or substantively enacted
bythe reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in
which the company expects, at the reporting date, to recover or settle the carrying amount of its
assets and liabilities.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes levied by the same tax authority on the same
taxableentity, or on different tax entities, but they intend to settle current tax liabilities and assets on a
net basis ortheir tax assets and liabilities will be realized simultaneously.

7.8 Impairment

a. Impairment of financial instruments

The Company recognizes loss allowances for expected credit losses on financial assets measured at
amortized cost;

At each reporting date, the Company assesses whether financial assets carried at amortized cost are
credit impaired. A financial asset is ''credit- impaired'' when one or more events that have a detrimental
impact on the estimated future cash flows of the financial asset have occurred.

Evidence that a financial asset is credit-impaired includes the following observable data:

- significant financial difficulty of the borrower or issuer;

- The restructuring of a loan or advance by the Company on terms that the
Company would not consider otherwise;

- It is probable that the borrower will enter bankruptcy or other financial reorganization; or

- The disappearance of an active market for a security because of financial difficulties.

- The Company measures loss allowances at an amount equal to lifetime expected credit
losses, except for thefollowing, which are measured as 12 month expected credit losses:

- Debt securities that are determined to have low credit risk at the reporting date; and

- Other debt securities and bank balances for which credit risk (i.e. the risk of default
occurring over theexpected life of the financial instrument) has not increased
significantly since initial recognition.

Loss allowances for trade receivables are always measured at an amount equal to lifetime
expected credit losses.

Lifetime expected credit losses are the expected credit losses that result from all possible default
events over the expected life of a financial instrument. 12-month expected credit losses are the
portion of expected credit losses that result from default events that are possible within 12 months
after the reporting date (or a shorter period if the expected life of the instrument is less than 12
months).

In all cases, the maximum period considered when estimating expected credit losses is the
maximum contractual period over which the Company is exposed to credit risk.

When determining whether the credit risk of a financial asset has increased significantly since
initial recognition and when estimating expected credit losses, the Company considers reasonable
and supportable information that is relevant and available without undue cost or effort. This
includes both quantitative and qualitative information and analysis, based on the Company''s
historical experience and informed credit assessment and including forward-looking information.

Measurement of expected credit losses

Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured
as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the
Company in accordance with the contract and the cash flows that the Company expects to receive).

Presentation of allowance for expected credit losses in the balance sheet.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying
amount of the assets.

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

NORRIS MEDICINES LIMITED

Regd. Office: Plot No. 801/P, GIDC Industrial Estate, Ankleshwar-393 002 (Gujarat). CIN: L24230GJ1990PLC086581,
Tel. [phone], Web:www.norrispharma.com Email:[email protected]

the trade receivable 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.

b. Impairment of non- financial assets

The company''s non-financial assets and deferred tax assets are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such indication exists, then the asset''s
recoverable amount is estimated.

---

Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

The accounting policies set out below have been applied consistently to all periods presented in these financial
statements unless otherwise indicated.

7.1 Financial instruments

a. Recognition and initial measurement

Trade receivables are initially recognized when they are originated. All other financial assets and
financial liabilities are initially recognized when the Company becomes a party to the contractual
provisions of the instrument.

A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value
through profit and loss (''FVTPL''), transaction costs that are directly attributable to its acquisition.

b. Classification and subsequent measurement

Financial assets:

On initial recognition, a financial asset is classified as measured at
- amortised cost; or
-FVTPL

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the
Company changes its business model for managing financial assets.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not
designated as at FVTPL

— the asset is held within a business model whose objective is to hold assets to collect contractual cash
flows; and

— the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at
FVTPL. This includes all derivative financial assets. 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.

Financial assets: Business model assessment

The company makes an assessment of the objective of the business model in which a financial asset is held at
a portfolio level because this best reflects the way the business is managed and information is provided to
management. The information considered includes:

— the stated policies and objectives for the portfolio and the operation of those policies in practice. These
include whether management''s strategy focuses on earning contractual interest income, maintaining a
particular interest rate profile, matching the duration of the financial assets to the duration of any related
liabilities or expected cash outflows or realizing cash flows through the sale of the assets;

- how the performance of the portfolio is evaluated and reported to the company''s management;

- the risks that affect the performance of the business model (and the financial assets held within that
business model) and how those risks are managed;

- the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such
sales and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not
considered sales for this purpose, consistent with the company''s continuing recognition of the assets.

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value
basis are measured at FVTPL.

Financial assets: Assessment whether contractual cash flows are solely payments of principal and
interest

For the purposes of this assessment, ''principal'' is defined as the fair value of the financial asset on initial
recognition. ''Interest'' is defined as consideration for the time value of money and for the credit risk
associated with the principal amount outstanding during a particular period of time and for other basic
lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the company
considers the contractual terms of the instrument. This includes assessing whether the financial asset
contains a contractual term that could change the timing or amount of contractual cash flows such that it
would not meet this condition. In making this assessment, the company considers:

— contingent events that would change the amount or timing of cash flows;

— terms that may adjust the contractual coupon rate, including variable interest rate features;

— prepayment and extension features; and

— terms that limit the company''s claim to cash flows from specified assets (e.g. non-recourse features).

A prepayment feature is consistent with the solely payments of principal and interest criterion if the
prepayment amount substantially represents unpaid amounts of principal and interest on the principal
amount outstanding, which may include reasonable additional compensation for early termination of the
contract. Additionally, for a financial asset acquired at a significant discount or premium to its contractual
par amount, a feature that permits or requires prepayment at an amount that substantially represents the
contractual par amount plus accrued (but unpaid) contractual interest (which may also include reasonable
additional compensation for early termination) is treated as consistent with this criterion if the fair value of
the prepayment feature is insignificant at initial recognition.

Financial assets: Subsequent measurement and gains and losses

Financial assets at FVTPL- These assets are subsequently measured at fair value. Net gains and losses,

including any interest or dividend income, are recognized in the statement of
profit and loss.

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. Interest income, foreign exchange gains and losses and impairment
are recognized in profit or loss. Any gain or loss on derecognition is
recognized in the statement of profit and loss.

Financial liabilities

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as
at FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial
recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any
interest expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at
amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses
are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

c. Derecognition
financial assets

The company derecognizes 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 does not
retain control of the financial asset.

If the company enters into transactions whereby it transfers assets recognized on its balance sheet, but retains
either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not
derecognized.