Notes to Accounts of Genpharmasec Ltd.

Mar 31, 2025

Purpose of Reserves:

(a) Reserve and Surplus

(i) Securities Premium :The Securities premium represents the premium received towards allotment of shares. The reserve can be utilized only for limited purposes such as issuance of bonus shares in accordance with the provisions of Companies Act, 2013

(ii) Retained Earnings :Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any dividends or other distributions paid to shareholders.

(b) Equity Instruments at fair value through Other Comprehensive Income: This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through Other Comprehensive Income

Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the company by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

Note No - 34

Corporate social responsibility (CSR)

CSR provisions are not applicable to the company for FY 2024-25 & FY 2023-24 as the company is not satisfying the criteria specified under Section 135(1) of Companies Act

Fair value measurements and valuation processes:

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 inputs, 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.

Business segment:

The Chief Operating Decision Maker ("CODM'''') reviews the financial performance at Diagnostic Pharma Equipment business and Investment & Trading in securities business, both segments are mutually independently of each other and therefor, the Group has two reportable segments, i.e. Diagnostic Pharma Equipment Business and Trading of securities Business Products from which reportable segments derive their revenues

The Company has considered Diagnostic Pharma Equipments Business and Investment & Trading in Securities Business as the two primary operating business segments.

Diagnostic Pharma Equipments Segment:

The Company has entered into a Distribution Agreement with Abbott Point of Care, USA for distribution of their State-of-the-art diagnostic equipment namely, i-STAT Analyser and its Cartridges. This equipment is a blood analyser exclusively used in Intensive Care Units (ICUs) of hospitals as the test results are available in 10 minutes which helps the attending doctors to decide future course of treatment for the patient. The Cartridges required for the same are sold separately. The Company has installed a Cold Room for storing the Cartridges as these Cartridges are required to be stored at 2°C to 8°C. The Company has started importing i-STAT Analysers directly from Abbott, USA which will improve Company''s bottom line in the coming years.

In accordance with the requirements of Ind AS 109 - Financial Instruments, the Company applies the expected credit loss (ECL) model for recognition and measurement of impairment on trade receivables.

The Company uses the simplified approach permitted by Ind AS 109 for trade receivables, which requires lifetime expected credit losses to be recognised from initial recognition of the receivables

The company has incorporated a new wholly owned subsidiary namely M/s. Clinigenome India Private Limited to expand the business activities on 29th Note No. 40

Loans or advances granted to promoters, directors, KMPs and related parties

The Company has given loans or advances in the nature of loans to its promoters, directors, KMPs and related parties, hence reporting is required as per revised schedule III of Companies Act 2013.

Note No. 41 Leases Company as Lessee:

Company has taken commercial property on lease . The terms of lease rent are for the period ranging from 2 years to 3 years depending on the lease agreement with the lessor. Such leases are renewable by mutual consent. There is no contingent rent, no sub-leases and no restrictions imposed by the lease arrangements. The Company has not revalued its Right-of-use assets. The borrowing rate applied to lease liability is 10%.

Note No. 42 Immovable Property

There is no immovable Property held in the name of Company.

Note No. 43

Revaluation of Property, Plant & Equipment

During the year there is no revaluation of Property, Plant & Equipment.

Note No. 44

Revaluation of Intangible Assets

There is no intangible assets as at the balance sheet date.

Note No. 45

Capital-Work-in Progress (CWIP)

There is no capital work in progress in the company as on balance sheet date.

Note No. 46

Intangible assets under development

There is no Intangible assets under development in the company as on balance sheet date.

Note No. 47

Detail of Benami Property held

No proceedings have been initiated or pending against the company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and the Rules made thereunder.

Note No. 48

Security of current assets against borrowings

The Company has been sanctioned overdraft credit facility during the year against term deposit with the bank and there is no such requirements for submission of Quarterly Returns/statements for security against such Bank Overdraft.

Note No. 49 Wilful Defaulter

The Company is not declared wilful defaulter by any bank or financial institution or other lender at any time during the financial year or after the end of reporting period but before the date when financial statements are approved or in an earlier period.

Note No. 50

Relationship with Struck off companies

Company did not have any transactions with companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956.

Note No. 51

Registration of charges or satisfaction with Registrar of Companies

There is no charges or satisfaction yet to be registered with Registrar of Companies by the company during the financial year.

Note No. 52

Compliance with number of layers of companies

The company is not required to complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

Note No. 53

Compliance with approved Scheme(s) of Arrangements

No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, during the financial Note No. 54

Utilisation of Borrowed fund and share premium

Neither the company has advanced or loaned or invested funds to Intermediaries nor received any fund from any Funding Party during the financial year with the understanding that the Intermediary or company shall - ‘

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries)

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

Note No. 55 *

Undisclosed Income

The company has no transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961), unless there is immunity for disclosure under any scheme.

Note No. 56

Details of Crypto Currency or Virtual Currency

The company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

Note No. 57

The financial statements for the year ended 31st March 2025 have been reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on 21st May 2025.

Note No. 59

Disclosure as per Ind AS 107 ''Financial Instrument Disclosure''

A) Capital Risk Management

For the purpose of the company''s capital management, capital includes issued capital and all other equity reserves. The primary objective of the company''s capital management is to maximise shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2025 and 31 March 2024.

The calculation of capital for the purpose of capital management is as follows:

1) Debt equity ratio - Total debt divided by Total equity

The debt-to-equity (D/E) ratio is calculated by dividing a Company''s total liabilities by its shareholder equity. The ratio is used to evaluate a Company''s Total debt = Long term borrowings Short term borrowings

B) Financial Risk management Financial risk management

The Company''s Financial Risk Management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management is set by the Managing Board of Directors.

Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as investment price risk and commodity risk.

Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments.

(i)Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Trade Payables.

(ii) Interest Rate Risk

Interest Rate risk is the risk that the fair value of future cashflows of a financial instrument will fluctuate because of changes in Market Interest Rates. The company''s exposure to the risk of changes in Market Interest Rates relates primarily to the Company''s short term debt obligations with floating interest rates. However, the Company do not have any borrowing with floating rate of interest.

(iii) Commodity Price Risk

The Company is affected by the price volatility of it''s commodities. It''s operating activities require the on-going purchase. Therefore, the company monitors its purchases closely to optimize the price.

(iv)Credit Risk

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition.

Trade receivables:

Trade receivables are non-interest bearing. An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on historical data of expected credit loss, actual credit loss and party-wise review of credit risk.

Market price risk

The Company is exposed to market price risk, which arises from securities held as inventories classified at FVTPL. The management monitors the proportion of these securities in its trading portfolio based on market indices. Material securities within the portfolio are managed on an individual basis and all buy and sell decisions are approved by the appropriate authority.

Equity Price Sensitivity analysis:

The fair value of equity instruments as at March 31, 2025 and March 31, 2024 Rs. 119.13 Lakhs and Rs. 168.39 Lakhs respectively. 5% change in price of these quoted equity instruments held as at March 31, 2025 and March 31, 2024 would result in:

Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

Notes No. 60

The Ministry of Corporate Affairs (MCA) has issued a notification (Companies (Accounts) Amendments Rules2021) which is effective from 1st April, 2023 states that every company which uses accounting software for maintaining its books of accounts shall use only the accounting software where there is a feature of recording audit trail of each and every transaction, and further creating an edit log of each change made to books of accounts along with the date when such changes were made and ensuring that audit trail cannot be disabled.

The Company uses a Tally Prime Edit Log ERP software as a primary accounting software for maintaining books of accounts , which has a feature of recording audit trail edit logs facility and that has been operative throughout the financial year for the transactions recorded in the software and preserved by the company as per the statutory requirements for record retention.

Note No. 61 ^

The Board of Directors at its meeting held on 21st February 2024 allotted 27,68,59,850 shares to the Equity Shareholders of the Company through Right issue at issue price of Rs. 1.75 per equity Share (including a premium of Rs. 0.75 per equity Share).

Purpose of these loans: The loans were extended to companies primarily to meet their working capital requirements, except in the case of the subsidiary, where the purpose was business expansion.

b) Investments made are disclosed in note 3.

c) No Corporate guarantee given by the company Note No. 64

During the previous year ended 31st March, 2024; the company made investment in M/s. Derren Healthcare Pvt Ltd, (DHPL) as detailed hereunder:

The Company has entered into an Share Purchase Agreement (SPA) with DHPL and its promoters on 19th September 2023 for acquiring 70% shareholding of DHPL. The Company has also simultaneously entered into a Share Subscription Cum Shareholder''s Agreement'' (SSSA) on the same day to and agreed to induct Rs. 500 Lakhs into DHPL and in turn, DHPL will allot 13,84,275 shares to the Company.

The Company made payment of Rs. 1,263.95/- Lakhs to one of the Promoters, Mr. Vibhava Kumar Singh who is holding 70% shares in DHPL for purchase of 35,00,000 shares. The Company has also inducted Rs. 500 Lakhs in DHPL for subscription of 13,84,275 shares. These payments represent full payment towards total acquisition of 70% shareholding in DHPL and additional shareholding as envisaged in SSSA.

The acquisition was estimated to be completed by 19th September 2024. However, due to pending execution of SPA & SSA, Genpharmasec Ltd, the company, has not gained ''controlling interest'' as on the date of these financial statement.

Note No. 65

Contingent liabilities and commitments

a) Claims against the company not acknowledged as debt

The Income Tax Department has raised the demand for AY 2022-23 of Rs. 1.52 lacs and the company has filed an appeal with Learned CIT as per advise of the Tax consultant.

b) Commitments

There are no commitments as on 31.03.25 and 31.03.24

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Mar 31, 2024

(I) Terms/ right attached to Equity Shares

The Company has only one class of equity shares having par value of Re.1/- per Shares. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity share will be entitled to receive remaning assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders._

*Disclosure in relation to Micro and Small enterprises ''Suppliers'' as defined in the Micro, Small and Medium Enterprises Development Act, 2006 (''Act).

The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with their customers the Entrepreneurs Memorandum Number as allocated after filing of the said Memorandum. Accordingly, the disclosures above in respect of the amounts payable to such enterprises as at the period end has been made based on information received and available with the Company.

Note No: 26

Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the company by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

The following data reflects the inputs to calculation of basic and diluted EPS :

Note No: 27

Corporate social responsibility (CSR)

CSR provisions are not applicable to the company for FY 2023-24 & FY 2022-2023 as the company is not satisfying the criteria specified under Section 135(1) of Companies Act

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 inputs, 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.

Note No. 33

The outstanding loan of Rs. 41.96 Lacs as on 31.03.2024, have been provided as bad debts by the company and is included under the head ''Other Expenses'' for the quarter and year ended 31.03.2024.

Note No. 35 Immovable Property

No immovable Property is held in the name of Company Note No. 36

Fair Valuation of Investment property

No invesment property is held in the name of the Company.

Note No. 37

Revaluation of Property , Plant & Equipment & Right-of- Use Assets

During the year there is no revaluation of Property, Plant & Equipment and compnay does not have any ROU assets.

Note No. 38

Revaluatoin of Intengible Assets

There is no intangible assets as at the balance sheet date.

Note No. 39

Capital-Work-in Progress (CWIP) |

There is no capital work in progress in the company as at balance sheet date.

Note No. 40

Intangible assets under development |

There is no Intangible assets under development in the company as at balance sheet date.

Note No. 41

Detail of Benami Property held |

No proceedings have been initiated or pending against the company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and the Rules made thereunder.

Note No. 42

Borrowings secured against current assets |

The Company has been sanctioned overdraft credit facility during the year against term deposit with the bank and there is no such requirements for submission of Quarterly Returns/statements for security against such Bank Overdraft.

Note No. 43

Wilful Defaulter |

The Company is not declared wilful defaulter by any bank or financial institution or other lender at any time during the financial year or after the end of reporting period but before the date when financial statements are approved or in an earlier period.

Note No. 44

Relationship with Struck off companies |

Company did not have any transactions with companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956.

Note No. 45

Registration of charges or satisfaction with Registrar of Companies |

There is no charges or satisfaction yet to be registered with Registrar of Companies by the company during the financial year.

Note No. 46

Compliance with number of layers of companies |

The company is not required to complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

Note No. 47 ^

Compliance with approved Scheme(s) of Arrangements |

No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, during the financial year.

Note No. 48 ^

Utilisation of Borrowed fund and share premium |

Neither the company has advanced or loaned or invested funds to Intermediaries nor received any fund from any Funding Party during the financial year with the

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries)

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

Note No. 49

Undisclosed Income |

The company has no transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961), unless there is immunity for disclosure under any scheme.

Note No. 50

Details of Cyrpto Currency or Virtual Currency |

The company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

Not e No. 51

on 24th May 2024.

Note No. 52

Disclosure as per Ind AS 107 ''Financial instrument disclosure''

A) Capital Risk Management

For the purpose of the company’s capital management, capital includes issued capital and all other equity reserves. The primary objective of the company’s capital management is to maximise shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2024 and 31 March 2023

B) Financial risk management Financial risk management

The Company''s Financial Risk Management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management is set by the Managing Board of Directors.

Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as investment price risk and commodity risk.

Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments.

Market price risk

The Company is exposed to market price risk, which arises from securities held as inventories classified at FVTPL. The management monitors the proportion of these securities in its trading portfolio based on market indices. Material securities within the portfolio are managed on an individual basis and all buy and sell decisions are approved by the appropriate authority.

Equity Price Sensitivity analysis:

The fair value of equity instruments as at March 31, 2024 and March 31, 2023 Rs.168.39 Lakhs and Rs. 95.35 Lakhs respectively. A 50% and 50% change in price of

Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.

Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses.

Risk Management framework

The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance.

Risk management is carried out by the risk management committee under policies approved by the board of directors. The risk management committee identifies, evaluates and hedges financial risks in close co-operation with the Company’s operating units. The board provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, and credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

Note No. 53

The Ministry of Corporate Affairs (MCA) has issued a notification (Companies (Accounts) Amendments Rules2021) which is effective from 1^st April,2023 states that every company which uses accounting software for maintaining its books of accounts shall use only the accounting software where there is a feature of recording audit trail of each and every transaction, and further creating an edit log of each change made to books of accounts along with the date when such changes were made and ensuring that audit trail cannot be disabled.

The Company uses a Tally Prime /Edit Log ERP software as a primary accounting software for maintaining books of accounts , which has a feature of recording audit trail edit logs facility and that has been operative throughout the financial year for the transactions recorded in the software.

Note No. 54

During the year ended 31st March, 2024; the company made investment in M/s. Derren Healthcare Pvt Ltd, (DHPL) as detailed hereunder:

The Company has entered into a Share Purchase Agreement (SPA) with DHPL and its promoters on 19th September 2023 for acquiring 70% shareholding of DHPL. The Company has also simultaneously entered into a Share Subscription Cum Shareholder''s Agreement'' (SSSA) on the same day to and agreed to induct Rs. 5 Crores into DHPL and in turn, DHPL will allot 13,84,275 shares to the Company.

The Company made payment of Rs. 12,63,95,377/- to one of the Promoters, Mr. Vibhava Kumar Singh who Is holding 70% shares in DHPL for purchase of 35,00,000 shares, The Company has also inducted Rs. 5 crores in DHPL for subscription of 13,84,275 shares.

These payments represent full payment towards total acquisition of 70% shareholding In DHPL and additional shareholding as envisaged in SSSA.

The company has received the shares certificate related to above subscription of 13,84,275 shares and share certificate of 35,00,000 shares is yet to be received by the company as per SPA.

The total acquisition is to be completed by 19th September 2024, However, s. Genpharmasec Ltd, the company, will gain ‘controlling Interest only after complete execution of respactive SPA and SSA.

Note No. 55

The company has incorporated a new wholly owned subsidiary namely M/s. Clinigenome India Pvt Ltd'' to expand the business activities on 29.01.2024 Note No. 56

The Board of Directors at its meeting held on 21^st February 2024 allotted 27,68,59,850 shares to the Equity Shareholders of the Company through Right issue at issue price of Rs. 1.75 per equity Share (including a premium of Rs. 0.75 per equity Share).

Note No. 58

Contingent liabilities and commitments

a) Claims against the compnay not acknowledged as debt

The income tax department has rasied the demand for AY 2022-23 of Rs. 1.52 Lacs (previous year Nil) and the compnay has filed an appeal with Learned CIT as per advise of the tax consultant. ^

b) Commitments

There are no commitments as on 31.03.24 and 31.03.23_

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Mar 31, 2023

k. Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and are liable estimate can be made of the amount of the obligation.

l. Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

m. Earnings per share

The basic earnings per share is computed by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share and also the weighted average number of equity shares which would have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period unless they have been issued at a later date.

n. Rounding of amounts

All amounts disclosed in the financial statements and notes have been rupees in Lakhs as per the requirement of Schedule III, unless otherwise stated.

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the Company s financial statements requires management to make judgment, estimates and assumptions that affect the reported amount of revenue, expenses, assets and liabilities and the accompanying disclosures.

Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as and when management becomes aware of changes and circumstances surrounding the estimates. Changes in the estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to financial statements.

Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed below:

> Recognition of deferred tax asset: availability of future taxable profit

> Recoverability of trade receivable

> Recognition and measurements of provision and contingencies: key assumption of the livelihood and magnitude of an outflow of resources.

> Impairments of Non-Financial Assets

> Impairments of Financial Assets

For and on behalf of the Board For Abhishek S Tiwari & Asso-

GENPHARMASEC LIMITED dates

Chartered Accountants Firm Number: 14104SW

Sd/-

Rajesh Sadhwani

(Non- Executive Director)

DIN :08315182

Sd/-

Abhishek Tiwari

Sd/. (Proprietor)

„ Membership No.: 155947

Sohan Chaturvedi UDIN:23155947BGSTQQ9157

(CFO)

DIN :09629728

Place: Mumbai

Date: 26^th May, 2023

Sd/-

Ulhas Narayan Deosthale

(Director)

DIN :09215291

Sd/-

Heta Shah

(Company Secretary & Compliance Officer) Membership No.: A69749

Place: Mumbai Date: 26^th May, 2023

a) Related party and nature of the related party relationship with whom transactions have taken place during the year

A) Subsidiary Company NA

B) Key Management Personnel

Mrs. Sneha Sadhwani - Non-Executive - Non-independent Director Mr. Rajesh Mirchumal Sadhwani Non-Executive Non Independent Director Mrs. Amisha Dani - Independent Director (Resigned from 04.10.2022)

Mr. Sohan Chaturvedi - CFO (Appointed from 01.11.2022 )

Mr. Ulhas Narayan Deosthale - CFO (Resigned from 01.11.2022)

Mr. Ulhas Narayan Deosthale - Whole Time Director

Ms. Heta Deepak Shah - Company Secretary & Compliance Officer (Appointed from 07.10.2022)

Ms. Snehal Ansodariya - Company Secretary & Compliance Officer (Resigned from 15.09.2022)

Mr. Sachin Aphandar- Independent Director (Appointed from 01.11.2022 )

Mr.Siddesh Shankar Shinde-lndependent Director (Appointed from 04.07.2022)

Mr.Mayur Bhatt-lndependent Director (Appointed from 01.11.2022 )

Note No. 28

Previous Year Figures Regrouped

Figures for the previous periods have been regrouped / reclassified wherever considered necessary.

Note No. 29

The Company has renegotiated the terms for the loans given by the company and the company having outstanding loan of Rs.62.92 Lacs before ECL and the company has made ECI provision Rs. 10.49 Lacs in this respect included under the head ''Other Expenses’ year ended 31.3.2023.

Note No. 30

Loans or advances granted to promoters, directors, KMPs and related parties

The Company has not given any loans or advances in the nature of loans to its promoters, directors, KMPs and related parties, hence no reporting is required as per revised schedule III of Companies Act 2013.

Note No. 31 Immovable Property

There is no immovable Property held in the name of Company Note No. 32

Revaluation of Property, Plant & Equipment

During the year there is no revaluation of Propert, Plant & Equipment.

Note No. 33

Capital-Work-in Progress (CWIP)

There is no capital work in progress in the company as on balance sheet date.

Note No. 34

Intangible assets under development

There is no Intangible assets under development in the company as on balance sheet date.

Note No. 35

Detail of Benami Property held

No proceedings have been initiated or pending against the company for holding any benami property mder the Prohibition of Benami Property Transactions Act, 1988 and the Rules made thereunder.

Note No. 36

Security of current assets against borrowings

The Company has been sanctioned overdraft credit facility during the year against term deposit with the bank and there is no such requirements for submission of Quarterly Returns/statements for security against such Bank Overdraft.

Note No. 37 Wilful Defaulter

The Company is not declared wilful defaulter by any bank or financial institution or other lender at any time during the financial year or after the end of reporting period but before the date when financial statements are approved or in an earlier period.

Note No. 38

Relationship with Struck off companies

Company did not have any transactions with companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956.

Note No. 39

Registration of charges or satisfaction with Registrar of Companies

There is no charges or satisfaction yet to be registered with Registrar of Companies by the company during the financial year.

Note No. 40

Compliance with number of layers of companies

The company is not required to complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

Note No. 41

Compliance with approved Schemefs) of Arrangements

No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, during the financial year.

Note No. 42

Utilisation of Borrowed fund and share premium

Neither the company has advanced or loaned or invested funds to Intermediaries nor received any fund from any Funding Party during the financial year with the understanding that the Intermediary or company shall -

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries)

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

Note No. 43 Undisclosed Income

The company has no transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961), unless there is immunity for disclosure under any scheme.

Note No. 47

Disclosure as per Ind AS 107 ''Financial instrument disclosure''

A) Capital Risk Management

For the purpose of the company’s capital management, capital includes issued capital and all other equity reserves. The primary objective of the company’s capital management is to maximise shareholder value. The company manages its capital structure and makes adjustments in tha light of changes in economic environment and the requirements of the financial covenants.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2023 and 31 March

2022

B) Financial risk management Financial risk management

The Company''s Financial Risk Management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management is set by the Managing Board of Directors.

Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk; currency rate risk, interest rate risk and other price risks, such as investment price risk and commodity risk.

Financial instruments affected by market risk include loans and borrowings,

Market price risk

The Company is exposed to market price risk, which arises from securities held as inventories classified at FVTPL. The management monitors the proportion of these securities in its trading portfolio based on market indices. Material securities within the portfolio are managed on an individual basis and all buy and sell decisions are approved by the appropriate authority.

Equity Price Sensitivity analysis:

The fair value of equity instruments as at March 31, 2023 and March 31, 2022 Rs.95.35 Lakhs and Rs. 245 Lakhs respectively. A 50%

Note No. 48

Contingent liabilities and commitments

There are no contingent Liabilities and commitmments as on 31.03.2023 and 31.03.2022

For Abhishek S Tiwari & Associates For and on behalf of the Board

Chartered Accountants GENPHARMASEC LIMITED

Firm number: 141048W (FORMERLY KNOWN AS GENERIC PHARMASEC LIMITED)

Sd /-

Partner: Abhishek Tiwari Sd I- Sd /-

Membership No. 155947 Rajesh Sadhwani Sohan Chaturvedi

Place: Mumbai (Non- Excecutive Director) (CFO)

Date :26.05.2023 DIN :08315182 DIN : 09629728

UDIN : 23155947BGSTQQ9157

Sd/- Sd I-

Ulhas N. Deosthale Heta Deepak Shah

Director (Company Secretary)

DIN:09215291 M. No.: A69749

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Mar 31, 2018

(I) Terms/ right attached to Equity Shares

The Company has only one Class of equity shares having par value of Rs.10 per Shares. Each holder of Equity Shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity share will 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.

(III) Reduction ofpaid up capitalfrom Rs. 6,51,97,000/to Rs.32,59,850/dividedinto 3,25,985 Equity shares of Rs. 10/each by cancelling 61,93,715 equity shares of Rs. 10/each which is lost or unrepresented by the available assets, vide the order dated 17.06.2016passed by The Honorable High Court of Gujra tat Ahmedabad *Disclosure in relation to Micro and Small enterprises ''Suppliers'' as defined in the Micro, Small and Medium Enterprises Development Act, 2006 (''Act'').

The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with their customers the Entrepreneurs Memorandum Number as allocated after filing of the said Memorandum. Accordingly, the disclosures above in respect of the amounts payable to such enterprises as at the period end has been made based on information received and available with the Company.

As explained by management there is no outstanding balance related to Micro and Small enterprises ''Suppliers'' as defined in the Micro, Small and Medium Enterprises Development Act, 2006 (''Act'') as at year end

Note No: 1 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the company by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

The following data reflects the inputs to calculation of basic and diluted EPS.

NOTE NO. : 2 Exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

Since there is no change in the functional currency, the company has elected to continue with the carrying value measured under the previous GAAP and use that carrying values as the deemed cost for property, plant and equipment on the transition date.

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements a as at the date of transition to Ind AS, measured as per previous GAAP and use that as its deemed cost as at the date of transition. Accordingly, the Group has elected to measure all of property, plant and equipment at the previous GAAP carrying value.

Note 3:

Some of the balances of current trade payables are subject to confirmation and reconciliation of any.

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Mar 31, 2013

1 Under the Micro Small and Medium Enterprises Development Act ,2006, certain disclourses are required to be made relating to Micro,Small and Medium Enterprises. The company is in the process of compling relevant information from its suppliers about their coverage under the Act . Since the revelant information is not presently available, no disclosures have been made in the accounts.

2 The company has suspended manufacturing activities during the financial year 2003-2004 and there are no intentions to resume the manufacturing activities. In spite of these facts the accounts have been prepared on the basis of going concern.

3 Corresponding figures of the previous year have been regrouped or rearranged to make it comparable with this years`s figure, wherever necessary.

4 In view of the fact that the company has suspended manufacturing operations, particulars required to be furnished as per part-III of Schedule-6 of the Companies Act, 1956 has not been furnished.

5 Tax expense comprises deferred taxes. : Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised Deferred tax assets are recognised on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realised against future taxable profits. Unrecognised deferred tax assets of earlier years are re-assessed and recognised to the extent that it has become reasonably certain that future taxable incoe will be available against which such deferred tax assets can be realised

6 A. Provisions :

A provision is recognised when an enterprise has a present obligation as a result of past events; 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. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liability is not recognized in the financial statements but is disclosed.

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Mar 31, 2012

1 Under the Micro Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to Micro,Small and Medium Enterprises. The company is in the process of complying relevant information from its suppliers about their coverage under the Act. Since the relevant information is not presently available, no disclosures have been made in the accounts.

2 The company has suspended manufacturing activities during the financial year 2003- 2004 and there are no intentions to resume the manufacturing activities. In spite of these facts the accounts have been prepared on the basis of going concern.

3 Corresponding figures of the previous year have been regrouped or rearranged to make it comparable with this years'' figure, wherever necessary.

4 In view of the fact that the company has suspended manufacturing operations, particulars required to be furnished as per part-III of Schedule-6 of the Companies Act, 1956 has not been furnished.

5 The company is not having net deferred tax assets. Deferred tax assets, which have arisen mainly on account of unabsorbed depreciation and carried forward losses, have been considered for recognition, as there is no virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Therefore, net deferred tax asset has not been recognized in the accounts of the company.

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Mar 31, 2010

1. Under the Micro Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The company is in the process of compiling relevant information from its suppliers about their coverage under the Act. Since the relevant information is not presently available, no disclosures have been made in the Accounts

2. The company has suspended manufacturing activities during the financial year 2003-04 and there are no intentions to resume the manufacturing activities. In spite of these facts the accounts have been prepared on the basis of going concern.

3. Corresponding Figures of the previous year have been regrouped or rearranged to make it comparable with this years figure, wherever necessary.

4. In view of the fact that the company has suspended manufacturing operations, particulars required to be furnished as per part -III of Schedule-6 of the Companies Act, 1956 has not been furnished.

5. The company is having net deferred tax assets. Deferred tax assets, which have arisen mainly on account of unabsorbed depreciation and carried forward losses, have not been considered for recognition, as there is no virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Therefore, net deferred tax asset has not been recognized in the accounts of the company.