Accounting Policies of Kabra Drugs Ltd. Company

Mar 31, 2025

Note: 2 Significant accounting policies

2.1 Statement of compliance

The Company’s financial statements have been prepared in accordance with the Companies Act, 2013, and the Indian Accounting Standards ("Ind AS") as notified under
the Companies (Indian Accounting Standards) Rules, 2015, including amendments issued by the Ministry of Corporate Affairs under Section 133 of the Companies Act,
2013. Additionally, guidance notes and announcements issued by the Institute of Chartered Accountants of India (ICAI) have been applied, except in cases where
compliance with other statutory requirements mandates a different treatment.

2.2 Basis of preparation and presentation

The Company has prepared its financial statements in accordance with Ind AS. The Company has applied consistent accounting policies throughout the periods presented,
with disclosures regarding any significant changes due to the restatement. The standalone financial statements have been prepared on accrual basis under the historical
cost convention. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Amounts are presented in lakhs and
rounded off to two decimal places, with the functional currency being Indian Rupees.

2.3 Use of Estimates, Judgments, and Errors

The preparation of the financial statements in accordance with Ind AS requires management to make estimates, judgments and assumptions that affect the reported
amounts of assets, liabilities, income and expenses, as well as the disclosures of contingent liabilities. Differences between actual results and estimates are recognised in
the period in which the results are known/materialized. During the year the Accouning Estimate for Depreciation have been changed from Straight Line Method to Written
Down Value Method.

2.4 Revenue Recognition

Interest & Dividend income: Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount
of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which
is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset of that asset’s net carrying amount on initial recognition. No
Dividend income is earned by the Company.

2.5 Property, Plant and Equipment

All items of Property, Plant and Equipment, including freehold land, are initially recorded at cost. Subsequent to initial recognition, Property, Plant and Equipment other
than freehold land are measured at cost less accumulated depreciation and any accumulated impairment losses. Freehold land has an unlimited useful life and therefore is
not depreciated. The carrying values of Property, Plant and Equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying
value may not be recoverable.

Subsequent expenditure on major maintenance or repairs includes the cost of the replacement of parts of assets and overhaul costs. Where an asset or part of an asset is
replaced and it is probable that future economic benefits associated with the item will be available to the company, the expenditure is capitalised and the carrying amount
of the item replaced is derecognised. All other costs are charged to profit and loss during the reporting period in which they are incurred. Depreciation is charged to write
off the cost or value of assets, over their estimated useful lives. Depreciation is recorded using the straight-line basis.

Depreciation on tangible assets is provided in accordance with IND AS 16 ''Property, Plant and Equipment'' with useful life as prescribed in Schedule III of the Companies
Act, 2013 as below:

2.6 Exceptional items

An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the performance of the Company is treated
as an exceptional item and disclosed as such in the financial statements.

There is no Exceptional items

2.7 Employee Benefits

a) Short-term employee benefits:

Employee benefits such as salaries, wages, short-term compensated absences, bonus, ex-gratia and performance-linked rewards falling due wholly within twelve months
of rendering the service are classified as short-term employee benefits and are expensed in the period in which the employee renders the service.

b) Post-employment benefits:

i) Defined contribution plans: The Company’s superannuation scheme, state governed provident fund scheme, employee state insurance scheme and employee
pension scheme are defined contribution plans. The contribution paid/payable under the schemes is recognised during the period in which the employee renders the
service.

ii) Defined benefit plans: The employees’ gratuity fund schemes and employee provident fund schemes managed by board of trustees established by the
Company, the post-retirement medical care plan and the company pension plan represent defined benefit plans. The present value of the obligation under defined benefit
plans is determined based on actuarial valuation using the Projected Unit Credit Method.

The obligation towards defined benefit plans is measured at the present value of the estimated future cash flows using a discount rate based on the market yield on
government securities of a maturity period equivalent to the weighted average maturity profile of the defined benefit obligations at the Balance Sheet date.

Re-measurement, comprising actuarial gains and losses, the return on plan assets (excluding amounts included in net interest on the net defined benefit liability or asset)
and any change in the effect of asset ceiling (if applicable) is recognised in other comprehensive income and is reflected in retained earnings and the same is not eligible to
be reclassified to profit or loss.

Defined benefit costs comprising current service cost, past service cost and gains or losses on settlements are recognised in the Statement of Profit and Loss as employee
benefits expense. Interest cost implicit in defined benefit employee cost is recognised in the Statement of Profit and Loss under finance costs. Gains or losses on
settlement of any defined benefit plan are recognised when the settlement occurs. Past service cost is recognised as expense at the earlier of the plan amendment or
curtailment and when the Company recognises related restructuring costs or termination benefits.

In case of funded plans, the fairvalue of the plan assets is reduced from the gross obligation under the defined benefit plans to recognise the obligation on a net basis. The
company has not created any defined benefit plan asset. Thus, on the balance sheet date only defined benefit obligation exists.

c) Other long-term employee benefits:

The obligation recognised in respect of other long-term benefits is measured at present value of estimated future cash flows expected to be made by the Company and is
recognised in a similar manner as in the case of defined benefit plans vide (ii)(B) above.

Long-term employee benefit costs comprising current service cost and gains or losses on curtailments and settlements, re-measurements including actuarial gains and
losses are recognised in the Statement of Profit and Loss as employee benefits expenses. Interest cost implicit in long-term employee benefit cost is recognised in the
Statement of Profit and Loss under finance costs.

d) Termination benefits:

Termination benefits such as compensation under employee separation schemes are recognised as expense when the Company’s offer of the termination benefit can no
longer be withdrawn or when the Company recognises the related restructuring costs whichever is earlier.

2.8 Inventories

Inventories are valued at the lower of cost on the basis of moving weighted average price or net realizable value. The cost of inventories includes all cost of purchases,
cost of conversion and other related cost incurred to bring the inventories to its present location and condition. Goods and materials in transit are valued at actual cost
incurred upto the date of Balance Sheet.

2.9 Cash and bank balances

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 short-term
cash credits accounts (Overdraft accounts) and receivables in cash viz. swipping card receivable, that are readily convertible to a known amount of cash and 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.

2.10 Borrowing Costs

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of those assets. A qualifying asset is
defined as one that requires a substantial amount of time to prepare for its intended use. Interest income earned from the temporary investment of specific borrowings
while awaiting expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are charged to the Statement of
Profit and Loss in the period they are incurred.

2.11 Taxes on income

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act,1961
and using estimates and judgments based on the expected outcome of assessments/appeals and the relevant rulings in the areas of allowances and disallowances.

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Company’s financial statements and the corresponding
tax bases used in computation of taxable profit and quantified using the tax rates as per laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets are generally recognised for all taxable temporary differences to the extent that is probable that taxable profits will be available against which those
deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that
it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Transaction or event which is recognised outside profit or loss, either in other comprehensive income or in equity, is recorded along with the tax as applicable.

2.12 Segment reporting

The Company''s operations are considered as a single business segment for the purpose of internal reporting to the Chief Operating Decision Maker (CODM). As such,
there are no distinct reportable segments identified in accordance with Ind AS 108, "Operating Segments."

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Mar 31, 2024

Statements of significant accounting policies and other explanatory notes form part of the balance sheet and statement
of profit and loss.

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one
vote per share.

The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of directors is subject to the approval
of the shareholders in ensuing Annual General Meeting. In event of liquidation of the Company, the holders of equity shares would be
entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The Distribution will be in proportion
to the number of equity shares held by the shareholders.

General Information

Kabra Drugs Limited is a limited company incorporated under The Companies Act, 1956 on 22^nd August 1989
having its registered office at 270 Shastri Market Indore, MP. Company is presently engaged in the business of
Permaculture manufacturing and trading in pharma related products. The company is a public limited Company
and its shares are listed on Bombay stock exchange (BSE).

Basis of preparation

The financial statements of the Company have been prepared in accordance with the generally accepted
accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all
material respects with the accounting standards notified under Section 133 of the Companies Act, 2013, read
together with paragraph 7 of the Companies (Accounts) Rules, 2014 and Companies (Accounting Standards)
Amendment Rules, 2016. The financial statements have been prepared on an accrual basis and under the historical
cost convention. The accounting policies adopted in the preparation of financial statements are consistent with
those of previous year, except for the change in accounting policy explained below.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires
estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the
financial statements and the reported amount of revenue and expenses during the reporting period. Differences
between actual results and estimates are recognised in the period in which the results are known / materialized.

Interest and Dividend

Interest income is recognized on accrual basis using the effective interest method. No Dividend income is earned
by the company.

Basis of preparation

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India
(Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards
notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 and
Companies (Accounting Standards) Amendment Rules, 2016. The financial statements have been prepared on an accrual basis and under
the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of
previous year, except for the change in accounting policy explained below.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions
to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of
revenue and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which
the results are known / materialised.

Note: 15 Significant Accounting Policies:

a. General:

i) Accounting policies not specifically referred to otherwise are in consistence with earlier year and in consonance with generally
accepted accounting principles.

ii) Expenses and income considered payable and receivable respectively are accounted for on accrual basis.

b. Valuation of Inventories: There is no Inventories in the company.

c. Fixed assets and depreciation:

i. Fixed Assets are stated at cost of acquisition less accumulated depreciation and is inclusive of freight taxes, and
incidental expenses relating to such acquisition.

ii. Depreciation on property, plant and equipment is provided on Straight-line method (SLM) as per the useful life of the
assets in the manner as specified in Schedule II to the Companies Act, 2013. The estimated useful life of assets and
estimated residual value is taken as prescribed under Schedule II to the Companies Act, 2013..

d. Investments: Investments are valued at cost. In determining cost FIFO method is used.

e. Foreign currency Transactions: There is no foreign currency transaction.

f. Retirement Benefits: Provident fund and employees state insurance scheme contribution is not applicable to the company.

g. Taxes on Income:

Current Tax: Provision for Income-Tax is determined in accordance with the provisions of Income-tax Act 1961.

Deferred Tax Provision: Deferred tax is recognized, on timing difference, being the difference between the taxable incomes and
accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Note: 16 Balances of Sundry Debtors, Creditors, Loans and Advances are subject to confirmation and reconciliation.

Note: 17 In the opinion of the Board of directors, the current assets, Loans & advances are approximately of the value stated if realized
in the ordinary course of business. The provision of all known liabilities is adequate and not in excess of the amount reasonably
necessary.

Note: 18 No Remuneration paid to the directors during the year.

Note: 23 previous year figures have been regrouped and recasted wherever necessary.

Signature to Notes ''1'' to ''23''

As per our report on even date

FOR RISHI SEKHRI & ASSOCIATES FOR & ON BEHALF OF THE BOARD

CHARTERED ACCOUNTANTS
FIRM NO: 128216 W

Sd/- Sd/- Sd/-

(CA RISHI SEKHRI) KN.ANAND B V ANANTH KUMAR

PARTNER DIRECTOR WTD & CFO

M.No. 126656 DIN:03230186 DIN:08644948

PLACE: Mumbai DATE : 30.05.2024

DATE : 30.05.2024

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Mar 31, 2015

Basis of Preparation

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1 Accounting Policies

a Use of Estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Although these estimates are based on management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future period.

b Fixed Assets - All fixed assets are stated at cost of acquisition including installation and incidental cost. No addtion/deletion took c Intangible Assets- The company has not having any Intangible Assets during the year.

Depreciation - Depreciation is provided from date of use on straight line method as per the provisions of schedule 14 of the companies Act 1956 and Deprecation charges as per Compnay act 2013.

e Lease - the Company has paid lease rent to DIC for land and account for as per payment basis.

f Impairment of Assets- The company has not having impairment of assets.

g Government Grant & Subsidies -: The Company has not registered for Govt. Granth and Subsidies , during the year .

h Investments - The company has not having investments during the year

i Inventories :- Inventories are valued as certified by management on following basis. Raw Material. At cost Finish Goods

- At Revenue Recognition- Sales are recognized on dispatch of goods to the customers , which normally results in transfer fo title in the goods. The company has only one business segment " MANUFACTURING OF DRUGS " Further , since virtually all sales are effected in the domestic market , there is only one geographical segment .

Therefore , the disclosure requirements of " SEGMENT REPORTING " are not applicable to the company. Related party disclosures as required as per accounting standard ( AS_18 on "

Related party disclosures " issued by the Institute of Chartered Accountant of India , are as below.

k Foreign Currency Transaction -: The company has not incurred any transaction in foreign currency during the year .

Retirement and Employee Benefits

- Contribution of Provident fund and ESIC are charged to P & L a/c on actual basis and provision l for gratuity , leave encasement etc. Retirement benefits are charges to P & L a/c on payment basis. The company has not practice to create separate reserve on actual basis. mIncome Taxes.

- Payment and provisions of Income Tax has been done as per .

Provision & Contingent Liabilities - These are separately disclosed in the financial statement by way of notes to the accounts. n Contingent liabilities are not recognized but are disclosed in the notes, contingent assets are neighed recognized nor disclosed in the financial statement.

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Mar 31, 2014

A Use of Estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Although these estimates are based on management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future period.

b Fixed Assets - All fixed assets are stated at cost of acquisition including installation and incidental cost. No addtion/deletion

c Intangible Assets- The company has not having any Intangible Assest during the year.

depreiation - Depreciation is provided from date of use on staight line method as per the provisions of schedule 14 of the d companes Act 1956.

e Lease - the Company has paid lease rent to DIC for land and account for as per payment basis. f Impairment of Assets- The compnay has not having impairment of assest.

g Government Grant & Subsidies -: The Company has not registered for Govt.Granth and Subitiees , during the year . h Investments - The compnay has not having intestments during the year .

i Inventories -: Inventories are valued as certified by management on following basis. Raw Material. At cost Finish Goods - Revenue Recognition- Sales are recognised on dispatch of goods to the customers, which normally results in transfer fo title in the goods. The company has only one business segment " MANUFACTURING OF DRUGS " Furtner , since virtually all sales are effected in the domestic market , there is only one geographical segment . Therefore , the disclosure reqqirements of " j SEGMENT REPORTING " are not applicable to the company. Related party disclosures as required as per accounting standard ( AS_18 on " Related party discloures " issued by the Institute of Chartered Accoutnat of India , are as below.

k Foreign Currency Transaction -: The company has not incurred any transaction in foreign currency during the year .

Retirement and Employee Benefits - Contribution of Provident fund and ESIC are charged to P & L a/c on actual basis and l provision for gratuity , leave encasement etc. Retirement benefits are charges to P & L a/c on payment basis. The company has not practice to create separate reserve on actual basis.

m Income Taxes.- Payment and provisions of Income Tax has been done as per .

Provision & Contingent Liabilities - These are separately disclosed in the financial statement by way of notes to the accounts. n Contingent liabilties are not recognazed but are disclosed in the notes, contingent assets are neither recognized nor disclosed in the financial statement.

O. CONTINGENT LIABILITIES AS ON BALANCE SHEET DATE. 1] HON, BLE M.P. has given probable liability under sales tax and excise acts on purchase of denatured spirit relating to 1991-1992 . High Court has granted a stay. (Rs. 47.50 Lacs) Estimated amount due.

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Mar 31, 2010

Financial statement have been prepared under historical cost convention on accrual basis of accounting in accordance with the generally accepted accounting principles in India and the provision of the Companies Act, 1956 as adopted consistently by the company.

(1) SYSTEM OF ACCOUNTING

The company adopts mercantile system of accounting and the financial statements are prepared under historical cost convention and on accrual basis. Retirement benefit, post assessments demands, claims, subsidy, and uncertain routine exp. And income to the extent these are not material, are accounted for on cash basis.

(2) USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reported period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized

(3) FIXED ASSETS AND DEPRECIATION

All fixed assets are stated at cost of acquisition including installation and incidental costs. Depreciation is provided from date of use on straight line method as per the provisions of schedule 14 of the companies Act, 1956.

No addition / deletion took place in fixed assets during the year. No amortization has been made in respect of premium paid for the leasehold land since grant of lease is for a long period. Depreciation on Bio-project Assets is not provided in the accounts since the development could not be commercialized.

(4) INVENTORIES

Inventories are valued as certified by management on following basis.

Raw material and packing materials At Cost

Finished goods At estimated realizable value

Work in process, stores and spares etc. At estimated realizable value

Obsolete, defective and unserviceable stocks are provided for, where required.

(5) TRANSACTION IN FOREIGN CURRENCY

The company has not incurred any transaction in foreign currency during the year.

(6) CONTIGENT LIABILITIES

These are separately disclosed in the financial statements by way of notes to the accounts. Contingent liabilities are not recognized but are disclosed in the notes, contingent assets are neither recognized nor disclosed in the financial statements.

(7) CONTINGENT LIABILITIES AS ON BALANCE SHEET DATE

a) HON. M.P has given probable liability under sales tax and excise acts on purchase of denatured spirit, relating to 1991-92. High Court has granted a stay. ( Rs.47.50 lacs) Estimated amount due.

b) Case relating to dismissal of 21 workers in 1997. Labor court has ruled against the company ordering payment of entire salary to employees for Rs. 6153705/- for the intermittent period. The company has preferred an appeal in the high court.

(8) PROVISION FOR TAXATIONS

Deferred tax resulting from timing difference between book and taxable profits is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax assets is recognized and carried forward only to the extent that there is a reasonable certainty that asset will be realized in future.

(9) BALANCE CONFIRMATION

Balance confirmation from various parties were not obtained and these are as per books and believed as correct as per management.

(10) CURRENT ASSETS

The current assets, loan and advances have a value on realisation in the ordinary course of business, at least equal to the amount at which these are stated in balance sheet and the provision for all known liabilities have been adequately made and not in excess of the amount reasonably necessary.

(11) REVENUE RECOGNITION

Sales are recognised on dispatch of goods to the customers, which normally results in transfer of title in the goods..

(12) The company has only one business segment Manufacturing of Drugs. Further, since virtually all sales are effected in the domestic market, there is only one geographical segment. Therefore, the disclosure requirements of "Segment Reporting" are not applicable to the company.