Accounting Policies of Hamps Bio Ltd. Company

Mar 31, 2025

1. Basis Of Preparation Of Financial Statements

a. The financial statements have been prepared in accordance with the generally accepted accounting
principles in India under the historical cost convention on accrual basis.

b. The financial statements of the company have been prepared in accordance with generally accepted
accounting principle in India (Indian GAAP). The financial statements have been prepared to comply
in all material aspects with the accounting standards specified under Section 133 the Companies
Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of
the Companies Act, 2013. The financial statements have been prepared on an accrual basis and
under the historical cost convention unless otherwise specified. The accounting policies adopted in
the preparation of financial statements are consistent with those of previous year unless otherwise
specified. The company has not changed any accounting policy and estimates.

c. All assets and liabilities have been classified as current or non-current as per the Company''s normal
operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on
the nature of products and the time between the acquisition of assets for processing and their
realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current - noncurrent classification of assets and liabilities.

d. In the opinion of the Management, the Current Assets, Loans & Advances approximately are of the
value stated if realized in the ordinary course of business.

e. The company is maintaining the books of accounts on mercantile system by following exclusive
method on regular basis. Thus, there is a deviation from the provisions of section 145A for the
valuation of purchase and sales of goods, i.e. GST is not included in the total amount of purchases
and sales as recorded in the profit and loss account. However, by following the exclusive method,
there is no effect on the net profit i.e. the method adopted by the company is revenue neutral.

2. Use Of Estimates

The preparation of financial statements requires management to make judgments, estimates and
assumptions, that affect the application of accounting policies and the reported amounts of assets
and liabilities and disclosures of contingent liabilities at the date of these financial statements and
the reported amounts of revenues and expenses for the years presented. Actual results may differ
from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the estimate is revised and
future periods affected.

3. Revenue Recognition

The Company recognizes revenue when the amount of revenue can be reliably measured and it is
probable that the collectability of the related receivables is reasonably assured. The amount
recognized as income is exclusive of GST and net of trade discounts.

a. Sales

Sales whether domestic and Export sales are recognized when all the significant risks and
rewards of ownership of the goods have been passed to the buyer, on dispatch from the
point of sale, consequent to property in goods being transferred.

b. Interest income

Interest income is recognized on a time proportion basis taking into account the amount
outstanding and the applicable interest rate.

Revenue from the sale of goods is recognized in the statement of profit and loss account when the
ownership of the goods is transferred for the price and all significant risk and rewards of ownership
have been transferred to the buyer and the company retains no effective control of the goods when
there exists no significant uncertainty regarding the amount of consideration that will be derived
from the sale of goods. Sales and purchases are recorded by exclusive method on regular basis. Thus
there is deviation from the provisions of section 145A for valuation of purchase and sales of goods
i.e. GST is not included in the total amount of purchases and sales as recorded in the Profit and loss
account. However, by following the exclusive method, there is no effect on the Net profit i.e. the
method adopted by the company is revenue neutral.

4. Property, Plant and Equipments & Depreciation:

a. Property, Plant and Equipments -Tangibles and intangibles

Property, Plant and Equipment''s are stated at cost of acquisition net of recoverable taxes and
includes amount added on revaluation, less accumulated depreciation and impairment loss, if any.
The cost of Property, Plant and Equipment''s includes cost of acquisition plus any freight, taxes,
duties and other incidental expenses that are directly attributable to bring the assets to their
present location and condition for their intended use. Borrowing costs, if any, directly attributable
to the qualifying assets are capitalized as part of the assets.

When spares, if any are used only in connection with the item of tangible assets and their use is
expected to be irregular, then the cost of these spares is capitalized in the cost of the assets.
Subsequent expenditure relating to the 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. No assets have been revalued during the year. The Company
have intangible assets which is under development.

b. Capital Work-in-Progress

Expenditure related to and incurred during implementation of capital projects to get the assets
ready for intended use is included under "Capital Work-in-Progress".

c. Depreciation and Amortization

Depreciation on tangible assets is provided on the written down value method over the useful lives
of assets prescribed under Part A of Schedule II to the Companies Act, 2013, in order to reflect the
actual usage of the assets. Depreciation for assets purchased / sold during a period is
proportionately charged. The useful lives for the Property, Plant and Equipment''s as per Schedule
II of the Companies Act are as follows:

Depreciation and amortization methods, useful lives and residual values are reviewed periodically
and there is no change in any of the above at financial year end.

5. Investments

Investments, which are readily realizable and intended to be held for not more than one year from
the date on which such investments are made, are classified as current investments. All other
investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and
directly attributable acquisition charges such as brokerage, fees and duties. Long-term investments
are carried at cost. However, provision for diminution in value of investments is made to recognize
a decline other than temporary in the value of investment.

Current investments are carried in the financial statement at cost of acquisition on an individual
investment basis.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds
is charged or credited to the statement of profit and loss.

Provision for diminution in the value of Long-Term Investments is made only if; such decline in the
opinion of the management is other than temporary.

>. Inventories

Inventory consists of Raw material, Finished Goods and Stock In Trade. Inventory is valued at cost
or market value whichever is lower.

Cost

Cost of Inventories comprises of cost of Purchase, cost of conversion and other cost including
manufacturing overheads incurred in bringing them to their respective present location &
condition. Cost is determined by following FIFO Method.

The company has valued its closing stock by exclusive method i.e. excluding of GST.

7. Employee Benefit Plan:

a. Short term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified
as short-term employee benefits. The undiscounted amount of short-term employee benefits
expected to be paid in exchange for the services rendered by employees is charged to the Statement
of profit and loss in the period in which such services are rendered.

b. Other long-term employee benefits

i. Defined Benefit Plan:

The Company operates a defined benefit gratuity plan in India, which requires contributions to
be made to a separately administered fund. However, the Company has not made any such
contributions during the year. The cost of providing benefits under the defined benefit plan is
based on an independent actuarial valuation carried out using the projected unit credit method.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on the net defined benefit liability and the return on
plan assets (excluding amounts included in net interest on the net defined benefit liability), are
recognized immediately in the balance sheet in the period in which they occur.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.

ii. Defined Contribution Plan:

Retirement benefit in the form of Provident Fund is a defined contribution scheme. The Company
has no obligation, other than the contribution payable to the provident fund. The Company
recognizes contribution payable to the provident fund scheme as a charge to the Statement of
Profit and Loss for the period in which the contributions to the respective funds accrue.

8. Taxes On Income
a. Current Tax

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

b. Deferred Taxation

Deferred tax is recognized on temporary differences between the carrying amounts of assets and
liabilities in the Standalone financial statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are recognized for all taxable temporary
differences. Deferred tax assets are generally recognised for all deductible temporary differences
to the extent that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if
the temporary difference arises from the initial recognition of assets and liabilities in a transaction
that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part
of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each
reporting date and are recognised to the extent that it has become probable that future taxable
profits will allow the deferred tax asset to be recovered. Significant management judgement is
required to determine the amount of deferred tax assets that can be recognised, based upon the
likely timing and the level of future taxable profits together with future tax planning strategies.

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

9. Investments

Investments which are readily realizable and intended to be held for not more than one year from
the date on which such investments are made, are classified as Current investments. All other
investments are classified as long term investments.

Current Investments are carried in the Financial Statements at lower of cost or fair value determined
on an individual investment basis. Long Term Investments are stated at cost of acquisition.

Provision for diminution in the value of Long-Term Investments is made only if; such decline in the
opinion of the management is other than temporary.

10. Borrowing Cost

Borrowing costs are interest and other costs incurred in connection with the borrowing of funds.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their
intended use or sale, are added to the cost of those assets, until such time as the assets are
substantially ready for their intended use or sale. Interest income earned on the temporary

investment of specific borrowings pending their expenditure on qualifying assets is deducted from
the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in the Statement of Profit and Loss in the period in which
they are incurred.

11. Cash And Cash Equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks; cash in hand, other short
term deposits with original maturities of three months or less which are subject to an insignificant
risk of changes in value.

12. Cash Flows

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the
effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating
cash receipts or payments and item of income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and financing activities of the Group are
segregated.

13. Segment Reporting

Based on guiding principles given in the Accounting standard on ''Segment Reporting'' (AS-17), the
primary business segment of the Company is manufacturing & trading of medicines and Secondary
business segment of the company is manufacturing of Freeze dried products, etc. The details of the
same is as follows:

Note: Segment results are not reported, as it is not possible to compute segment net profit or loss,
or any other measure of segment profitability, without arbitrary allocations.

The company is engaged in the manufacturing of freeze dried products and trading of
pharmaceutical products. As a result, fixed assets are allocated to the freeze dried products
segment and only details of debtors and stock are included in Pharma segment.

14. Comparatives

Comparative financial information is presented in accordance with the "Corresponding Figure"
financial reporting framework set out in "Standard of Auditing 710" on Comparatives. Accordingly,
amounts and other disclosures for the preceding year are included as an integral part of the current
year financial statements, and are to be read in relation to the amounts and other disclosures relating
to the current year.

15. Earnings Per Share (EPS)

EPS is calculated by dividing the profit attributable to the equity shareholders by the weighted
average number of equity shares outstanding during the year. Numbers used for calculating basic &
diluted earnings per equity shares are as stated below:

18. Foreign currency translation

a. Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign
currency amount the exchange rate between the reporting currency and the foreign currency at
the date of the transaction.

b. Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the
reporting date.

c. Exchange differences

The Company accounts for exchange differences arising on translation/settlement of foreign
currency monetary items as below:

Exchange differences which arise on reporting the enterprise''s long-term foreign currency
monetary items are recognized as income or as an expense during the year under consideration.

All other exchange differences are recognized as income or as expenses in the period in which they
arise.