Sanjivani paranteral Ltd. कंपली की लेखा नीति

Mar 31, 2025

2. Significant Accounting Policy

2.1 Basis of preparation

The standalone financial statements comply in all material aspects with Indian Accounting Standards (“Ind AS”) notified under
Section 133 of the Companies Act, 2013 (“the Act”), and relevant rules issued thereunder and the relevant provisions of the
Act. In accordance with proviso to the Rule 4A of the Companies (Accounts) Rules, 2014, the terms used in these financial
statements are in accordance with the definitions and other requirements specified in the applicable Accounting Standards.
The financial statement have been prepared on a historical cost basis. The financial statement are presented in INR.

Current versus non-current classification

The Company segregates assets and liabilities into current and non-current categories for presentation in the balance sheet
after considering its normal operating cycle and other criteria set out in Ind AS 1, “Presentation of Financial Statements”. For
this purpose, current assets and liabilities include the current portion of non-current assets and liabilities respectively. Deferred
tax assets and liabilities are always classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equiv¬
alents. The Company has identified period up to twelve months as its operating cycle.

Use of judgements, estimates & assumptions

While preparing financial statements in conformity with Ind AS, the management makes certain estimates and assumptions
that require subjective and complex judgments. These judgments affect the application of accounting policies and the reported
amount of assets, liabilities, income and expenses, disclosure of contingent liabilities at the statement of financial position
date and the reported amount of income and expenses for the reporting period. Financial reporting results rely on our estimate
of the effect of certain matters that are inherently uncertain. Future events rarely develop exactly as forecast and the best
estimates require adjustments, as actual results may differ from these estimates under different assumptions or conditions.
The management continually evaluates these estimates and assumptions based on the most recently available information.

Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods
affected. In particular, information about significant areas of estimation uncertainty and critical judgments in applying account¬
ing policies that have the most significant effect on the amounts recognised in the financial statements are as below:

The Company has equity stake in its subsidiary - SPL Infusion Private Limited for strategic reasons concerning its operation.
The relationship with this entity have been determined based on principles laid down in Ind AS 110 - Consolidated Financial
Statements.

2.2 Summary of Significant accounting policies

a. Current versus non-current classification

The company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is
treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settled a liability for at least twelve months
after the reporting period

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current
assets and liabilities. The operating cycle is the time between the acquisition of assets for processing and their realisation in
cash and cash equivalents. The company has identified twelve months as its operating cycle.

b. Foreign currencies

The company’s financial statements are presented in INR, which is also the company’s functional currency.

Transactions and balances

Transactions in foreign currencies are initially recorded by the company at functional currency spot rates at the date the
transaction first qualifies for recognition. However, for practical reasons, the company uses an average rate if the average
approximates the actual rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of ex¬
change at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognised in
profit or loss

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates
at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using
the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items
measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item.

c. Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue
can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the con¬
sideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties
collected on behalf of the government.

Revenue from contracts

Revenue from the sale of goods is recognised when the significant risks and rewards of Ownership of the goods have passed
to the buyer, usually on delivery of the goods. Revenue from the sale of goods is measured at the fair value of the consider¬
ation received or receivable, net of returns and allowances, trade discounts and volume rebates.

Interest income

Interest income is recognized based on a time proportion basis taking into account the amount outstanding and the interest
rate applicable. Interest income is included in other Income in the statement of profit and loss.

Dividends

Revenue is recognised when the company’s right to receive the payment is established, which is generally when shareholders
approve the dividend.

d. Taxes

Current income tax

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the
tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax ju¬
risdictions where the Company operates. The tax rates and tax laws used to compute the amount are those that are enacted
or substantively enacted, at the reporting date.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other com¬
prehensive income or directly in equity). Management periodically evaluates positions taken in the tax returns with respect
to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax

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

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

future taxable profits will allow the deferred tax asset to be recovered.

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

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

e. Property, plant and equipment

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when
no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (cal¬
culated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement
of profit or loss when the asset is derecognised.

When significant parts of property, plant and equipment are required to be replaced at intervals, the Company derecognises
the replaced part, and recognises the new part with its own associated useful life and depreciation, only if it increases the
future benefits from the existing asset beyond its previously assessed standard of performance. All other repair and mainte¬
nance costs are recognised in the statement of profit or loss as incurred.

Depreciation is calculated on a straight-line basis using the rates arrived at based on the useful lives estimated by the man¬
agement. The Company has used the following rates to provide depreciation on its fixed assets:

Building 15 to 20 years

Plant and equipment 5 to 15 years

Depreciation is recognised in the statement of profit or loss on a straight line basis over the estimated useful lives of each part
of an item of property, plant and equipment, since this most closely reflects the expected pattern of consumption of the future
economic benefits.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial
year end and adjusted prospectively, if appropriate.

f. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substan¬
tial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing
costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs
in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an
adjustment to the borrowing costs.

g. Inventories

Inventories are valued at the lower of cost and net realisable value.

Costs incurred in bringing each product to its present location and condition are accounted for as follows:

Traded goods: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and
condition. Cost is determined on First in First out (FIFO) basis.

h. Impairment of non-financial assets

Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. Such circumstances include, though not limited to, significant or sustained decline in reve¬
nues or earnings and material adverse changes in the economic environment.

An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recover¬
able amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs
to sell and its value in use. To calculate the value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market rates and the risks specific to the asset.

Fair value less costs to sell is the best estimate of the amount obtainable from the sale of an asset in an arm’s length trans¬
action between knowledgeable, willing parties, less cost of disposal. In determining fair value less costs to sell, recent market
transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is
used. These calculations are corroborated by valuation multiples, or other available fair value indicators. Impairment losses, if
any, are recognised in the statement of profit or loss as component of depreciation and amortisation expense.

The Company bases its impairment calculation on detailed budgets and forecasts which are prepared separately for each of
the Company’s CGU to which assets are allocated. These budget and forecast calculations are generally covering a period
of five years.

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Mar 31, 2024

Note No. : 1

1. Corporate Information

Sanjivani Paranteral Limited is a public company domiciled in India and is incorporated on 5th October 1994 under the provisions of the Companies Act applicable in India. Its shares are listed on the Bombay Stock Exchange in India. The registered office of the company is located at 205, P.N Kothari Ind. Estate, L B S Marg, Bhandup (W), Mumbai - 400 078.

Sanjivani Paranteral Limited is a research based, international pharmaceutical company that provides a wide range of high-quality product and services, at affordable prices. The core product range of the company’s products includes oral solids, small volume parenteral and sterile powder formulations.

2. Significant Accounting Policy

2.1 Basis of preparation

The standalone financial statements comply in all material aspects with Indian Accounting Standards (“Ind AS”) notified under Section 133 of the Companies Act, 2013 (“the Act”), and relevant rules issued thereunder and the relevant provisions of the Act. In accordance with proviso to the Rule 4A of the Companies (Accounts) Rules, 2014, the terms used in these financial statements are in accordance with the definitions and other requirements specified in the applicable Accounting Standards. The financial statement have been prepared on a historical cost basis. The financial statement are presented in INR.

2.2 Summary of Significant accounting policies

a. Current versus non-current classification

The company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settled a liability for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities. The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The company has identified twelve months as its operating cycle.

b. Foreign currencies

The company’s financial statements are presented in INR, which is also the company’s functional currency.

Transactions and balances

Transactions in foreign currencies are initially recorded by the company at functional currency spot rates at the date the transaction first qualifies for recognition. However, for practical reasons, the company uses an average rate if the average approximates the actual rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognised in profit or loss

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates

at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item.

c. Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.

Revenue from contracts

Revenue from the sale of goods is recognised when the significant risks and rewards of Ownership of the goods have passed to the buyer, usually on delivery of the goods. 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 recognized based on a time proportion basis taking into account the amount outstanding and the interest rate applicable. Interest income is included in other Income in the statement of profit and loss.

Dividends

Revenue is recognised when the company’s right to receive the payment is established, which is generally when shareholders approve the dividend.

d. Taxes

Current income tax

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the Company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or directly in equity). Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax

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

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

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

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

e. Property, plant and equipment

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when

no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss when the asset is derecognised.

When significant parts of property, plant and equipment are required to be replaced at intervals, the Company derecognises the replaced part, and recognises the new part with its own associated useful life and depreciation, only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other repair and maintenance costs are recognised in the statement of profit or loss as incurred.

Depreciation is calculated on a straight-line basis using the rates arrived at based on the useful lives estimated by the management. The Company has used the following rates to provide depreciation on its fixed assets:

Building 15 to 20 years

Plant and equipment 5 to 15 years

Depreciation is recognised in the statement of profit or loss on a straight line basis over the estimated useful lives of each part of an item of property, plant and equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

f. Borrowing costs

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 capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

g. Inventories

Inventories are valued at the lower of cost and net realisable value.

Costs incurred in bringing each product to its present location and condition are accounted for as follows:

Traded goods: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on First in First out (FIFO) basis.

h. Impairment of non-financial assets

Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Such circumstances include, though not limited to, significant or sustained decline in revenues or earnings and material adverse changes in the economic environment.

An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs to sell and its value in use. To calculate the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market rates and the risks specific to the asset. Fair value less costs to sell is the best estimate of the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, less cost of disposal. In determining fair value less costs to sell, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, or other available fair value indicators. Impairment losses, if any, are recognised in the statement of profit or loss as component of depreciation and amortisation expense.

The Company bases its impairment calculation on detailed budgets and forecasts which are prepared separately for each of the Company’s CGU to which assets are allocated. These budget and forecast calculations are generally covering a period of five years.

i. Provisions

A provision is recognized when an enterprise has a present obligation (legal or constructive) as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made of the amount of the obligation. Where the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit or loss, net of any reimbursement.

If the effect of time value of money is material, provisions are discounted using a pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of the time is recognised as a finance cost.

j. Retirement and other employee benefits

The gratuity liability is defined benefit obligation and is provided on actual basis.

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit. The company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

k. 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.

Financial assets

a) Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

b) Subsequent measurement

The Company determines the classification of its financial assets and liabilities at initial recognition. Financial assets are classified in four categories:

• Debt instruments at amortised cost;

• Equity instruments measured at fair value through OCI

Debt instruments at amortised cost

A ‘debt instrument’ is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

This category is the most relevant to the Company. After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss. This category generally applies to trade and other receivables. For more information on receivables, refer to Note 6 and 29.

Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTpL. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument by-instrument basis. The classification is made on initial recognition and is irrevocable.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the P&L.

c) Derecognition

The Company derecognises a financial asset only when the contractual right to receive the cash flows from the asset expires or it has transferred the financial asset and substantially all the risks and rewards of ownership of the asset. When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership.

d) Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

• Financial assets that are debt instruments, and are measured at amortised cost e.g., trade receivables;

• Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 11 and Ind AS 18

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables or contract revenue receivables.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. On that basis, the Company estimates the following provision matrix at the reporting date:

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the statement of profit and loss (P&L). This amount is reflected under the head ‘other expenses’ in the P&L.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as loans and borrowings, payables as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings.

Subsequent measurement

The measurement of financial liabilities depends on their classification as follows:

Financial liabilities at amortised cost (loans and borrowings)

This is the most relevant category to the Company. After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest rate method. Gains and losses are recognised in the statement of profit or loss when the liabilities are derecognised as well as through the effective interest rate method (EIR) amortisation process.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in the statement of profit or loss.

l. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on 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.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the company’s cash management.

m. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period 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.

n. Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

o. Segment Reporting - Identification of Segments:

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the company’s management to make decisions for which discrete financial information is available.

Based on the management approach as defined in Ind AS 108, the management evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments.

The Company is engaged in the business of manufacturing pharmaceutical products. All other activities of the Company revolve around the main business. As such there are no separate primary reportable business segments as defined by AS 108 (Segmental Reporting).

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Mar 31, 2023

2. Significant Accounting Policy

2.1 Basis of preparation

The standalone financial statements comply in all material aspects with Indian Accounting Standards ("Ind
AS") notified under Section 133 of the Companies Act, 2013 ("the Act"), and relevant rules issued thereunder
and the relevant provisions of the Act. In accordance with proviso to the Rule 4A of the Companies (Accounts)
Rules, 2014, the terms used in these financial statements are in accordance with the definitions and other
requirements specified in the applicable Accounting Standards.

The financial statement have been prepared on a historical cost basis. The financial statement are presented
in INR.

2.2 Summary of Significant accounting policies

a. Current versus non-current classification

The company presents assets and liabilities in the balance sheet based on current/non-current classification.
An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settled a liability for at least
twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.

The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as
non-current assets and liabilities. The operating cycle is the time between the acquisition of assets for
processing and their realisation in cash and cash equivalents. The company has identified twelve months as
its operating cycle.

b. Foreign currencies

The company''s financial statements are presented in INR, which is also the company''s functional currency.
Transactions and balances

Transactions in foreign currencies are initially recorded by the company at functional currency spot rates at
the date the transaction first qualifies for recognition. However, for practical reasons, the company uses an
average rate if the average approximates the actual rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency
spot rates of exchange at the reporting date. Exchange differences arising on settlement or translation of
monetary items are recognised in profit or loss

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using
the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a
foreign currency are translated using the exchange rates at the date when the fair value is determined. The
gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the
recognition of the gain or loss on the change in fair value of the item.

c. Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is
measured at the fair value of the consideration received or receivable, taking into account contractually
defined terms of payment and excluding taxes or duties collected on behalf of the government.

Revenue from contracts

Revenue from the sale of goods is recognised when the significant risks and rewards of Ownership of the
goods have passed to the buyer, usually on delivery of the goods. 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 recognized based on a time proportion basis taking into account the amount outstanding
and the interest rate applicable. Interest income is included in other Income in the statement of profit and
loss.

Dividends

Revenue is recognised when the company''s right to receive the payment is established, which is generally
when shareholders approve the dividend.

d. Taxes

Current income tax

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to
be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws
prevailing in the respective tax jurisdictions where the Company operates. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or directly in equity). Management periodically evaluates positions
taken in the tax returns with respect to situations in which applicable tax regulations are subject to
interpretation and establishes provisions where appropriate.

Deferred tax

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

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

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

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

e. Property, plant and equipment

An item of property, plant and equipment and any significant part initially recognised is derecognised upon
disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on
derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) is included in the statement of profit or loss when the asset is derecognised.

When significant parts of property, plant and equipment are required to be replaced at intervals, the
Company derecognises the replaced part, and recognises the new part with its own associated useful life and
depreciation, only if it increases the future benefits from the existing asset beyond its previously assessed
standard of performance. All other repair and maintenance costs are recognised in the statement of profit or
loss as incurred.

Depreciation is calculated on a straight-line basis using the rates arrived at based on the useful lives estimated
by the management. The Company has used the following rates to provide depreciation on its fixed assets:

Building 15 to 20 years

Plant and equipment 5 to 15 years

Depreciation is recognised in the statement of profit or loss on a straight line basis over the estimated useful
lives of each part of an item of property, plant and equipment, since this most closely reflects the expected
pattern of consumption of the future economic benefits.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed
at each financial year end and adjusted prospectively, if appropriate.

f. Borrowing costs

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 capitalised as part of
the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing
costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.
Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing
costs.

g. Inventories

Inventories are valued at the lower of cost and net realisable value.

Costs incurred in bringing each product to its present location and condition are accounted for as follows:
Traded goods: cost includes cost of purchase and other costs incurred in bringing the inventories to their
present location and condition. Cost is determined on First in First out (FIFO) basis.

h. Impairment of non-financial assets

Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable. Such circumstances include, though not limited to, significant
or sustained decline in revenues or earnings and material adverse changes in the economic environment.

An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit
exceeds its recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating
unit''s (CGU) fair value less costs to sell and its value in use. To calculate the value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
rates and the risks specific to the asset. Fair value less costs to sell is the best estimate of the amount
obtainable from the sale of an asset in an arm''s length transaction between knowledgeable, willing parties,
less cost of disposal. In determining fair value less costs to sell, recent market transactions are taken into
account, if available. If no such transactions can be identified, an appropriate valuation model is used. These
calculations are corroborated by valuation multiples, or other available fair value indicators. Impairment
losses, if any, are recognised in the statement of profit or loss as component of depreciation and amortisation
expense.

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Mar 31, 2015

PARTICULARS

a) Accounting Conventions:

The financial statements are prepared under the historical cost convention on accrual basis.

b) Inventory Valuation

Inventory of goods are valued at cost or net realizable value whichever is lower.

c) Fixed Assets

Fixed Assets are stated at cost of acquisition less accumulated depreciation. *

d) Investments

Investments are stated at cost.

e) Depreciation

Depreciation is provided as per rates prescribed in Schedule II to the Companies Act, 2013 on Straight Line Method.

f) Taxes on Income

Current tax is determined as per tax payable in respect of taxable income for the year. Deferred tax for the year is recognized on timing difference, being difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured assuming the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable/virtual certainty of realization.

g) Foreign Exchange Transaction

i) Foreign currency transaction settled before the end of the year are accounted for at the rates prevailing on the date of the transactions.

ii) Foreign currency transaction remaining unsettled are restated at the exchange rates prevailing at the end of accounting year.

f) Revenue Recognition

Sales, inclusive of all taxes are recognized on dispatch, price adjustment for sales made during a year are recorded upon receipt of confirmed customer orders.

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Mar 31, 2014

A) Accounting Conventions :

The financial statements are prepared under the historical cost convention on accrual basis.

b) Inventory Valuation

Inventory of goods are valued at cost or net realizable value whichever is lower.

c) Fixed Assets

Fixed Assets are stated at cost of acquisition less accumulated depreciation.

d) Investments

Investments are stated at cost.

e) Depreciation

Depreciation is provided as per rates prescribed in Schedule XIV to the Companies Act, 1956 on Straight Line Method.

f) Taxes on Income

Current tax is determined as per tax payable in respect of taxable income for the year. Deferred tax for the year is recognized on timing difference, being difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured assuming the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable/virtual certainty of realization.

g) Foreign Exchange Transaction

i) Foreign currency transaction settled before the end of the year are accounted for at the rates prevailing on the date of the transactions.

ii) Foreign currency transaction remaining unsettled are restated at the exchange rates prevailing at the end of accounting year.

f) Revenue Recognition

Sales, inclusive of all taxes are recognized on dispatch, price adjustment for sales made during a year are recorded upon receipt of confirmed customer orders.

Term Loans Secured by Hypothication of Stock, Book Debts and Fixed Assets.

Vehicle Loans are secured against vehicle acquired under the scheme.

Secured Loans from Banks are payable in Equal Monthly Installment upto 31st October 2018.

Rate of interest on Secured Term Loans vary between 13% p.a. to 15.25% p.a.

The rate of interest on Secured Vehicle Loan is 11% p.a.

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Mar 31, 2013

A) Accounting Conventions:

The financial statements are prepared under the historical cost convention on accrual basis.

b) Inventory Valuation .

Inventory of goods are valued at cost or net realizable value whichever is lower.

c) Fixed Assets

Fixed Assets are stated at cost of acquisition less accumulated depreciation.

d) Investments

Investments are stated at cost.

e) Depreciation

Depreciation is provided as per rates prescribed in Schedule XIV to the Companies Act, 1956 on Straight Line Method.

f) Taxes on Income

Current tax is determined as per tax payable in respect of taxable income for the year. Deferred tax for the year is recognized on timing difference, being difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured assuming the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable/virtual certainty of realization.

g) Foreign Exchange Transaction

i) Foreign currency transaction settled before the end of the year are accounted for at the rates prevailing on the date of the transactions.

ii) Foreign currency transaction remaining unsettled are restated at the exchange rates prevailing at the end of accounting year.

f) Revenue Recognition

Sales, inclusive of all taxes are recognized on dispatch, price adjustment for sales made during a year are recorded upon receipt of confirmed customer orders.

---

Mar 31, 2012

A) Accounting Conventions:

The financial statements are prepared under the historical cost convention on accrual basis.

b) Inventory Valuation

Inventory of goods are valued at cost or net realizable value whichever is lower.

c) Fixed Assets

Fixed Assets are stated at cost of acquisition less accumulated depreciation.

d) Investments

Investments are stated at cost.

e) Depreciation

Depreciation is provided as per rates prescribed in Schedule XIV to the Companies Act, 1956 on Straight Line Method.

f) Taxes on Income

Current tax is determined as per tax payable in respect of taxable income for the year. Deferred tax for the year is recognized on timing difference, being difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured assuming the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable/virtual certainty of realization.

g) Foreign Exchange Transaction

i) Foreign currency transaction settled before the end of the year are accounted for at the rates prevailing on the date of the transactions.

ii) Foreign currency transaction remaining unsettled are restated at the exchange rates prevailing at the end of accounting year.

f) Revenue Recognition

Sales, inclusive of all taxes are recognized on dispatch, price adjustment for sales made during a year are recorded upon receipt of confirmed customer orders.

---

Mar 31, 2011

A) Accounting conventions :

The financial statements are prepared under the historical cost convention on accrual basis.

b) Inventory Valuation:

Inventory of goods are valued at cost or net realizable value whichever is lower.

c) Fixed Assets:

Fixed Assets are stated at cost of acquisition less accumulated depreciation.

d) Investments: Investments are stated at cost.

e) Depreciation:

Depreciation is provided as per rates prescribed in Schedule XlVto the Companies act, 1956 on Straight Line Method.

f) Taxes on income: Current tax is determined as per tax payable in respect of taxable income for the year. Deferred tax for the year is recognized on timing difference, being difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured assuming the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward oly if there is a reasonable/virtual certainty of realization

g) Foreign Exchange Transaction:

i) Foreign currency transaction settled before the end of the year are accounted for at the rates prevailing on the date of the transactions.

ii) Foreign currency transaction remaining unsettled are restated at the exchange rates prevailing at the end of accounting year.

h) Revenue Recognition:

Sales, inclusive of all taxes are recognized on dispatch, price adjustments for sales made during a year are recorded upon receipt of confirmed customer orders.

i) Excise Duty:

i) Value of closing stocks of finished goods includes excise duty paid/payable on such stock.

ii) Sales includes excise duty of Rs. 1,09,86,490/=

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Mar 31, 2010

A) Accounting Conventions::

The financial statements are prepared under the historical cost convention on accrual basis.

b) Inventory Valuation:

Inventory of goods are valued at cost or net realizable value whichever is lower.

c) Fixed Assets:

Fixed Assets are stated at cost of acquisition less accumulated depreciation.

d) Investments:

Investments are stated at cost.

e) Depreciation:

Depreciation is provided as per rates prescribed in Schedule XIV to the Companies Act, 1956 on Straight Line Method.

f) Taxes on income :

Current tax is determined as per tax payable in respect of taxable income for the year. Deferred tax for the year is recognized on timing difference, being difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured assuming the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable/virtual certainty of realization.

g) Excise Duty:

i) Value of closing stocks of finished goods includes excise duty paid/payable on such stock. ii) Sales includes excise duty of Rs. 1,21,75,988