Accounting Policies of Anthem Biosciences Ltd. Company

Mar 31, 2024

Significant accounting policies:

(A) Basis of preparation and presentation:

a) Statement of compliance:

These standalone financial statements have been prepared in accordance with Indian Accounting Standards ("hereinafter
referred to as the "Ind AS") as notified by Ministry of Corporate Affairs pursuant to Section 133 of the companies Act, 2013 read
with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time

These standalone financial statements have been prepared for the Company as a going concern on the basis of relevant Ind
AS that are effective at the Company''s annual reporting date, March 31, 2024. These standalone financial statements were
approved and authorized for issuance by the Company''s Board of Directors on their meeting held on September 05, 2024.

b) Basis of measurement:

The financial statements have been prepared on a historical cost convention and on an accrual basis, except for the following
material items that have been measured at fair value as required by relevant Ind AS:

i. Certain financial assets and liabilities measured at fair value (refer accounting policy on financial instruments);

ii. Defined benefit and other long-term employee benefits.

c) Use of estimates and judgements:

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognized 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 accounting policies that have the most significant effect on the
amounts recognized in the financial statements is included in the notes.

d) Fair valuation:

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, regardless of whether that price is directly observable or estimated using another
valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of
the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at
the measurement date. Fair value for measurement and/ or disclosure purposes in these financial statements is determined on
such a basis, except for share-based payment transactions that are within the scope of Ind AS 102, leasing transactions that are
within the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such as a net
realisable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1,2 or 3 based on the degree to
which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement
in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the company can access
at the measurement date;

• Level 2 inputs are other than quoted prices included within Level 1, that are observable for the asset or liability, either directly
or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

(i) Functional and presentation currency:

Items included in the financial statements of the Company are measured using the currency of the primary economic
environment in which the Company operates (i.e. the "functional currency"). The financial statements are presented in Indian
Rupee, the national currency of India, which is the functional currency of the Company.

(ii) Foreign currency transactions and balances:

Transactions in foreign currency are translated into the respective functional currencies using the exchange rates prevailing at
the dates of the respective transactions. Foreign exchange gains and losses resulting from the settlement of such transactions
and from the translation at the exchange rates prevailing at reporting date of monetary assets and liabilities denominated in
foreign currencies are recognized in the statement of profit and loss and reported within foreign exchange gains/ (losses).

Non-monetary assets and liabilities denominated in a foreign currency and measured at historical cost are translated at the
exchange rate prevalent at the date of transaction.

(iii) Financial instruments:

All financial instruments are recognised initially at fair value. Transaction costs that are attributable to the acquisition of the
financial asset(other than financial assets recorded at fair value through profit or loss) are included in the fair value of the
financial assets. Purchase or sale of financial assets that require delivery of assets within a time frame established by regulation
or convention in the market place(regular way trade) are recognised on trade date. While, loans and borrowings and payables
are recognised net of directly attributable transaction costs.

For the purpose of subsequent measurement, financial instruments of the Company are classified in the following categories:
nonderivative financial assets comprising amortised cost, debt instruments at fair value through other comprehensive income
(FVTOCI), equity instruments at FVTOCI or fair value through profit and loss account (FVTPL), non-derivative financial liabilities
at amortised cost or FVTPL and derivative financial instruments (under the category of financial assets or financial liabilities)
at FVTPL. The classification of financial instruments depends on the objective of the business model for which it is held.
Management determines the classification of its financial instruments at initial recognition.

(a) Non-derivative financial assets:

(i) Financial assets at amortized cost:

A financial asset shall be measured at amortised cost if both of the following conditions are met:

(a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual
cash flows and

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

They are presented as current assets, except for those maturing later than 12 months after the reporting date which are
presented as non-current assets. Financial assets are measured initially at fair value plus transaction costs and subsequently
carried at amortized cost using the effective interest rate method, less any impairment loss.

Amortized cost are represented by trade receivables, security deposits, cash and cash equivalents, employee and other advances
and eligible current and non-current assets. Cash and cash equivalents comprise cash on hand and in banks and demand
deposits with banks which can be withdrawn at any time without prior notice or penalty on the principal.

For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, in banks and demand deposits
with banks, net of outstanding bank overdrafts that are repayable on demand, book overdraft and are considered part of the
Company''s cash management system.

(ii) Financial assets at FVTPL:

FVTPL is a residual category for financial assets. Any financial asset which does not meet the criteria for categorization as at
amortized cost or as FVTOCI, is classified as FVTPL. In addition the Company may elect to designate the financial asset, which
otherwise meets amortized cost or FVTOCI criteria, as FVTPL if doing so eliminates or significantly reduces a measurement or
recognition inconsistency. Financial assets included within the FVTPL category are measured at fair values with all changes in
the statement of profit and loss.

(b) Non-derivative financial liabilities:

(i) Financial liabilities at amortized cost:

Financial liabilities at amortized cost represented by borrowings, trade and other payables are initially recognized at fair value,
and subsequently carried at amortized cost using the effective interest rate method.

(B) Property, plant and equipment:

a) Recognition and measurement:

Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Cost includes
expenditures directly attributable to the acquisition of the asset.

b) Depreciation:

The Company depreciates property, plant and equipment over the estimated useful life on a written down value basis from the
date the assets are ready for intended use. Assets acquired under finance lease and leasehold improvements are amortized over
the lower of estimated useful life and lease term. The estimated useful lives of assets for the current and comparative period of
significant items of property, plant and equipment are as follows:

Depreciation methods, useful lives and residual values are reviewed at each reporting date. When parts of an item of property,
plant and equipment have different useful lives, they are accounted for as separate items (major components) of property,
plant and equipment. Subsequent expenditure relating to property, plant and equipment is capitalized only when it is probable
that future economic benefits associated with these will flow to the Company and the cost of the item can be measured
reliably. Repairs and maintenance costs are recognized in the statement of profit and loss when incurred. The cost and related
accumulated depreciation are eliminated 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.

Amounts paid towards the acquisition of property, plant and equipment outstanding as of each reporting date and the cost of
property, plant and equipment not ready for intended use before such date are disclosed under capital advances and capital
work- in-progress respectively.

(C) Intangible assets:

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their
respective estimated useful lives on a written down value basis, from the date that they are available for use. The estimated
useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand,
competition and other economic factors (such as the stability of the industry and known technological advances) and the level
of maintenance expenditures required to obtain the expected future cash flows from the asset.

The estimated useful lives of intangibles are as follows:

(D Leases:

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration.

The Company accounts for each lease component within the contract as a lease separately from non-lease components of the
contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price
of the lease component and the aggregate stand-alone price of the non-lease components.

The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease
commencement date. The cost of the right-of- use asset measured at inception shall comprise of the amount of the initial
measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease
incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling
and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is
subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted
for any re-measurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the
commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of-
use assets are determined on the same basis as those of property, plant and equipment. Right-of- use assets are tested for
impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is
recognised in the statement of profit and loss.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement
date of the lease. The lease payments are discounted using the incremental borrowing rate, if that rate can be readily determined.
If that rate cannot be readily determined, The Company uses incremental borrowing rate. The lease payments shall include
fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where The Company
is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the
lessee exercising an option to terminate the lease. The lease liability is subsequently re-measured by increasing the carrying
amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and re¬
measuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease
payments.

The Company recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the right-
of-use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of the
right-of-use asset is reduced to zero and there is a further reduction in the

measurement of the lease liability, The Company recognises any remaining amount of the re-measurement in statement of
profit and loss.

The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease
term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these
leases are recognised as an expense on a straight-line basis over the lease term.

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of
impairment loss. The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivable.
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.
For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has
been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL
is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If in subsequent
period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial
recognition, then the company reverts to recognising impairment loss allowance based on 12-month ECL. Lifetime ECLs are the
expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month
ECL is a portion of the lifetime ECL which results from default events that are possible within 12-months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the
cash flows that the company expects to receive (i.e. all shortfalls), discounted at the original effective interest rate (EIR). When
estimating the cash flows, company is required to consider:

(i) All contractual terms of the financial instrument (including prepayment, extension etc.) over the expected life of the financial
instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, then the
company is required to use the remaining contractual term of the financial instrument.

(ii) Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

As a practical expedient, the Company uses a provision matrix to determine impairment loss on portfolio of its trade receivable.
The provision matrix is based on its historically observed default rates over the expected life of the trade receivable. At every
reporting date, the historically observed default rates are updated. ECL impairment loss allowance (or reversal) recognised
during the period is recognised as income/expense in the statement of profit and loss.

The balance sheet presentation for various financial instruments is described below:

Financial assets measured at amortized cost, contractual revenue receivable. ECL is presented as an allowance, i.e. as an integral
part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset
meets write off criteria, the Company does not reduce impairment allowance from the gross carrying amount.

(b) Non-financial assets:

ssesses at each reporting date whether there is any objective evidence that a non-financial asset or a group of non-financial
assets is impaired. If any such indication exists, the Company estimates the amount of impairment loss. An impairment loss is
calculated as the difference between an asset''s carrying amount and recoverable amount. Losses are recognised in profit or
loss and reflected in an allowance account. When the Company considers that there are no realistic prospects of recovery of the
asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be
related objectively to an event occurring after the impairment was recognised, then the previously recognised impairment loss
is reversed through profit or loss. The recoverable amount of an asset or cash-generating unit (as defined below) is the greater
of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets
that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of
assets (the "cash-generating unit").

(F) Employee benefits:

The Company participates in various employee benefit plans. Post-employment benefits are classified as either defined
contribution plans or defined benefit plans. Under a defined contribution plan, the Company''s only obligation is to pay a fixed
amount with no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits.
The related actuarial and investment risks fall on the employee. The expenditure for defined contribution plans is recognized as
expense during the period when the employee provides service. Under a defined benefit plan, it is the Company''s obligation to
provide agreed benefits to the employees. The related actuarial and investment risks fall on the Company. The present value of

a) Provident Fund:

Retirement benefit in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the
statement of profit and loss for the year when the employee renders the related service and the contributions to the government
funds are due. The Company has no obligation other than the contribution payable to provident fund authorities.

b) Gratuity:

For the purpose of administration of gratuity of the employees of the Company, the Company has established Anthem
Biosciences Private Limited Employees Gratuity Trust. In accordance with the Payment of Gratuity Act, 1972, the Company
provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn
salary and years of employment with the Company. Company''s obligation in respect of the gratuity plan, which is a defined
benefit plan, is provided for based on actuarial valuation using the projected unit credit method.

Actuarial gains or losses are recognized in other comprehensive income. Further, the profit or loss does not include an expected
return on plan assets. Instead net interest recognized in profit or loss is calculated by applying the discount rate used to measure
the defined benefit obligation to the net defined benefit liability or asset. The actual return on the plan assets above or below
the discount rate is recognized as part of re-measurement of net defined liability or asset through other comprehensive income.

Re-measurements comprising actuarial gains or losses and return on plan assets (excluding amounts included in net interest on
the net defined benefit liability) are not reclassified to profit or loss in subsequent periods.

c) Compensated absences:

The employees of the Company are entitled to compensated absences. The employees can carry forward a portion of the
unutilized accumulating compensated absences and utilize it in future periods or receive cash at retirement or termination of
employment. The Company records an obligation for compensated absences in the period in which the employee renders the
services that increases this entitlement.

The Company measures the expected cost of compensated absences as the additional amount that the Company expects to
pay as a result of the unused entitlement that has accumulated at the end of the reporting period. The Company recognizes
accumulated compensated absences based on actuarial valuation. Non-accumulating compensated absences are recognized
in the period in which the absences occur. The Company recognizes actuarial gains and losses immediately in the statement of
profit and loss.