Notes to Accounts of JFL Life Sciences Ltd.

Mar 31, 2025

2.15 Borrowing Costs

Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing costs also include
exchange differences to the extent regarded as an adjustment to the borrowing costs.

All borrowing costs are charged to the Statement of Profit and Loss except:

Borrowing costs directly attributable to the acquisition or construction of assets that necessarily takes a substantial period of time to get ready
for its intended use are capitalised as part of the cost of such assets.

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

2.16 Segment reporting

According to Ind AS 108, identification of operating segments is based on Chief Operating Decision Maker (CODM) approach for making
decisions about allocating resources to the segment and assessing its performance. The business activity of the company falls within one broad
business segment viz. "Pharmaceutical products" and substantially sale of the products and Non-current assets are within the country.

2.17 Business combination

Business combinations - common control transactions

Business combinations arising from transfers of interests in entities that are under the common control are accounted in accordance with
"Pooling of Interest Method” laid down by Appendix C of Indian Accounting Standard 103 (Ind AS 103) Business combinations of entities under
common control, notified under the Companies Act, 2013.

The assets and liabilities of the combining entities are reflected at their carrying amounts. No adjustments are made to reflect fair values, or
recognise any new assets or liabilities. The only adjustments that are made are to harmonise accounting policies.

The financial information in the financial statements in respect of prior periods should be restated as if the business combination had occurred
from the beginning of the preceding period in the financial statements, irrespective of the actual date of the combination. However, if business
combination had occurred after that date, the prior period information shall be restated only from that date.

The balance of the retained earnings appearing in the financial statements of the transferor is aggregated with the corresponding balance
appearing in the financial statements of the transferee. The identity of the reserves shall be preserved and shall appear in the financial
statements of the transferee in the same form in which they appeared in the financial statements of the transferor.

The difference, if any, between the amount recorded as share capital issued plus any additional consideration in the form of cash or other assets
and the amount of share capital of the transferor shall be transferred to capital reserve and should be presented separately from other capital
reserves with disclosure of its nature and purpose in the notes.

Business combinations - acquisition method

The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets
are acquired. The consideration transferred for the acquisition of a subsidiary comprises the

• fair values of the assets transferred

• liabilities incurred to the former owners of the acquired business

• equity interests issued by the company

• fair value of any asset or liability resulting from a contingent consideration arrangement.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured
initially at their fair values at the acquisition date. The company recognises any non-controlling interest in the acquired entity on an acquisition-
by-acquisition basis either at fair value or at the non-controlling interest''s proportionate share of the acquired entity''s net identifiable assets.
Acquisition-related costs are expensed as incurred.

The excess of the:

• consideration transferred

• amount of any non-controlling interest in the acquired entity

• acquisition-date fair value of any previous equity interest in the acquired entity

over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net
identifiable assets of the business acquired, the difference is recognised in other comprehensive income and accumulated in equity as capital
reserve provided there is clear evidence of the underlying reasons for classifying the business combination as a bargain purchase. In other cases,
the bargain purchase gain is recognised directly in equity as capital reserve.

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the
date of exchange. The discount rate used is the entity''s incremental borrowing rate, being the rate at which a similar borrowing could be
obtained from an independent financier under comparable terms and conditions.

Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently
remeasured to fair value with changes in fair value recognised in profit or loss.

If the business combination is achieved in stages, the acquisition date carrying value of the acquirer''s previously held equity interest in the
acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognised in profit or loss
or other comprehensive income, as appropriate.

2.18 Rounding off amounts

All amounts disclosed in financial statements and notes have been rounded off to the nearest millions as per requirement of Schedule III of the
Act, unless otherwise stated.

3 Significant accounting judgments, estimates and

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future
years.

3.1 Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the year end date, that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The company
based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and
assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of
the company. Such changes are reflected in the assumptions when they occur.

Key source of judgments, assumptions and estimates in the preparation of the Financial Statements which may cause a material adjustment to
the carrying amounts of assets and liabilities within the next financial year, are in respect of useful lives of Property, Plant and Equipment,
impairment, employee benefit obligations, provisions, provision for income tax, measurement of deferred tax assets and contingent assets &
liabilities.

(a) Useful lives of property, plant and equipment and intangible assets

As described in the Material accounting policies, the company reviews the estimated useful lives of property, plant and equipment and intangible
assets at the end of each reporting period. Useful lives of intangible assets is determined on the basis of estimated benefits to be derived from
use of such intangible assets. These reassessments may result in change in the depreciation /amortisation expense in future periods.

(b) Fair value measurements and valuation processes

Some of the company''s assets and liabilities are measured at fair value at each balance sheet date or at the time they are assessed for
impairment. In estimating the fair value of an asset or a liability, the company uses market-observable data to the extent it is available. Where
Level 1 inputs are not available, the company engages third party valuers, where required, to perform the valuation. Information about the
valuation techniques and inputs used in determining the fair value of various assets and liabilities require estimates to be made by the
management and are disclosed in the notes to consolidated financial statements.

(c) Actuarial Valuation

The determination of company''s liability towards defined benefit obligation to employees is made through independent actuarial valuation
including determination of amounts to be recognised in the Statement of Profit and Loss and in Other Comprehensive Income. Such valuation
depend upon assumptions determined after taking into account discount rate, salary growth rate, expected rate of return, mortality and attrition
rate. Information about such valuation is provided in notes to the financial statements.

(d) Impairment of non-financial assets

In assessing impairment, management estimates the recoverable amount of each asset or cash-generating units based on expected future cash
flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the
determination of a suitable discount rate.

(e) Revenue from Contracts with Customers

The company has applied judgments that significantly affect the determination of the amount and timing of revenue from contracts with
customers.

3.2 Critical Accounting Judgements and Key Sources of Estimation

The preparation of the company''s financial statements requires management to make judgements, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities at
the date of the financial statements. Estimates and assumptions are continuously evaluated and are based on management''s experience and
other factors, including expectations of future events that are believed to be reasonable under the circumstances. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in
future periods.

Key source of judgments, assumptions and estimates in the preparation of the Financial Statements which may cause a material adjustment to
the carrying amounts of assets and liabilities within the next financial year, are in respect of useful lives of Property, Plant and Equipment,
impairment, employee benefit obligations, provisions, provision for income tax, measurement of deferred tax assets and contingent assets &
liabilities.

(i) Critical judgments in applying accounting policies

The following are the areas of estimation uncertainty and critical judgements that the management has made in the process of applying the
company''s accounting policies and that have the most significant effect on the amounts recognised in the financial statements:-

(a) Determining whether an arrangement contain leases and classification of leases

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate
the lease, if the use of such option is reasonably certain. The company makes an assessment on the expected lease term on a lease-by-lease basis
and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the
lease term, the company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the
termination of the lease and the importance of the underlying asset to operations taking into account the location of the underlying asset and the
availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic
circumstances.

(b) Evaluation of indicators for impairment of Property, Plant and Equipment

The evaluation of applicability of indicators of impairment of assets requires assessment of external factors (significant decline asset''s value,
economic or legal environment, market interest rates etc.) and internal factors (obsolescence or physical damage of an asset or poor economic
performance of the asset etc.) which could result in significant change in recoverable amount of the Property, Plant and Equipment.

(ii) Assumptions and key sources of estimation uncertainty

(a) Assets and obligations relating to employee benefits

The employment benefit obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions.
The assumptions used in determining the net cost/ (income) include the discount rate, inflation and mortality assumptions. Any changes in
these assumptions will impact upon the carrying amount of employment benefit obligations.

(b) Impairment of non-financial assets

The company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when
annual impairment testing for an asset is required, the company estimates the asset''s recoverable amount. An asset''s recoverable amount is the
higher of an asset''s or CGU''s fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from other assets or companys of assets. Where the carrying amount of an asset or
CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

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. In determining fair value less costs of disposal, recent market
transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are
corroborated by valuation multiples, quoted share prices for publicly traded subsidiaries or other available fair value indicators.

(c) Useful lives of Property, Plant and Equipment/Intangible Assets

Property, Plant and Equipment/ Intangible Assets are depreciated/amortised over their estimated useful lives, after taking into account
estimated residual value. The useful lives and residual values are based on the company''s historical experience with similar assets and taking
into account anticipated technological changes or commercial obsolescence. Management reviews the estimated useful lives and residual values
of the assets annually in order to determine the amount of depreciation/amortisation to be recorded during any reporting period. The
depreciation/amortisation for future periods is revised, if there are significant changes from previous estimates and accordingly, the
unamortised/depreciable amount is charged over the remaining useful life of the assets.

(d) Income taxes

The company uses estimates and judgements based on the relevant facts, circumstances, present and past experience, rulings, and new
pronouncements while determining the provision for income tax. A deferred tax asset is recognised to the extent that it is probable that future
taxable profit will be available against which the deductible temporary differences and tax losses can be utilised.

4 Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards)
Rules as issued from time to time. For the year ended 31 March 2025, MCA has not notified any new standards or amendments to the existing standards
applicable to the company. The company adopted Disclosure of Accounting (amendment to Ind AS 1) from 1 April 2023. Although the amendment did
not result in any changes in the accounting policies themselves, they impacted the accounting policy information disclosed in the standalone financial
statement. The amendment requires the disclosure of ’material’ rather than ’significant’ accounting policies. The amendments also provide guidance on
the application of materiality to disclosure of accounting policies, assisting entities to provide useful, entity specific accounting policy information that
users need to understand other information in the standalone financial statement.

Disclosure of Lease
Note:

Description of Assets

1. The ROU asset includes a leasehold land parcel located at Plot No. 406/407, Kerala Industrial Estate, Bavla, transferred in the name of the Company by Gujarat Industrial
Development Corporation (GIDC) and the Company holds the right to use the land for the purpose of establishing a pharmaceutical manufacturing unit.

2. The ROU asset includes a leasehold land parcel located at Plot No. 615, GIDC Estate,Kerala Industrial Estate, District Ahmedabad, Gujarat, India transferred in the name of
the Company by Gujarat Industrial Development Corporation (GIDC) and the Company holds the right to use the land for the purpose of establishing a pharmaceutical
manufacturing unit.

3. The ROU asset includes a leasehold land parcel located at Plot No. 515, Kerala Industrial Estate (GIDC), Bavla, Ahmedabad District, Gujarat, India transferred in the name of
the Company by Gujarat Industrial Development Corporation (GIDC) and the Company holds the right to use the land for the purpose of establishing a pharmaceutical
manufacturing unit.

Measurement and Recognition

The Right-of-Use (ROU) asset in respect of leasehold land has been measured at cost, being the amount of lease premium paid in full at the commencement of
the lease. As there are no further lease payments due, no lease liability has been recognized.

Depreciation of Right-of-Use Asset

The Right-of-Use (ROU) asset relating to leasehold land is depreciated on a straight-line basis over the lease term, which represents the period for which the
Company is expected to derive economic benefits from the use of the asset.

39 Capital commitment and contingent liabilities

a) Capital commitment

There are no capital commitment outstanding as at reporting date (as at March 31, 2024: Nil and as at April 01, 2023: Nil).

b) Contingent liabilities

There are no contingent liabilities

40 Defined Benefit Plan
A. Defined benefit plan

The Group has defined benefit gratuity plan for its employees which is unfunded. Gratuity is computed as 15 days last drawn salary, for every completed year of service or part thereof in
excess of 6 months and is payable on retirement / termination / resignation. The benefit vests on the employee completing 5 years of service. The Company makes provision of such
gratuity asset/liability in the books of accounts on the basis of actuarial valuation as per the projected unit credit method.

44 Additional Notes

(A) The title deeds of immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in
the name of the Company.

(B) The Company does not have any investment property.

C) The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and Intangible assets.

D) There are no loans or advances in the nature of loans are granted to Promoters, Directors, KMPs and their related parties (as defined under Companies Act, 2013), either severally
or jointly with any other person, that are outstanding as on 31st March, 2025:

(i) repayable on demand; or,

(ii) without specifying any terms or period of repayment.

E) The company is not declared willful defaulter by any bank or financial institution or other lender.

F) The company has not undertaken any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

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

JFL Life Sciences Limited

Notes to financial statements for the year ended March 31, 2025

(All amounts in Indian Rupee except otherwise stated)

H) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the undrstanding (whether recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the company or provide any guarantee, security or the like to or on behalf of the
Ultimate Beneficiaries.

I) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or
otherwise) that the company shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the
Funding Party or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

J) No transactions has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961. There are no such previously unrecorded
income or related assets.

K) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

L) The Provision of Section 135 of the Companies Act 2013 in relation to Corporate Social Responsibility are not applicable to the Company during the year and hence reporting under
this clause is not applicable.

49 First-time adoption of Ind-AS

The Company''s opening balance sheet prepared as at 1 April 2023, being the Company''s date of transition to Ind AS. This note explains the principal adjustments
made by the Company in conversion of its Indian GAAP financial statements, including the balance sheet as at 1 April 2023.

49.1 Reconciliations between previous GAAP and Proforma/Restated Ind AS :

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous IGAAP to Ind AS as required
under Ind AS 101:

(a) Reconciliation of Equity as at 1 April 2023 and 31 March 2024.

(b) Reconciliation of Total Comprehensive Income for the years ended 31 March 2024.

As per our report of even date

For Doshi Doshi & Co For and on behalf of the Board of Directors

Chartered Accountants JFL Life Sciences Limited

Firm Registration No. 153683W

SD/- ^SD/- sd/-

Chintan Doshi SMIRAL A.PATEL TEJAL S.PATEL

Partner Director Director & CFO

Membership No. : 158931 DIN: 00769486 DIN: 07391559

SD/-

Hiral Mahavirsinh Chudasama

Company Secretary & Compliance Officer
ACS: A45516

Place : Ahmedabad Place : Ahmedabad Place : Ahmedabad

Date: May 19, 2025 Date: May 19, 2025 Date: May 19, 2025

---

Mar 31, 2024

n) Provisions

A provision is recognised when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

o) Contingent liability

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognise a contingent liability but discloses its existence in the financial statements.

33 Capital commitment and contingent liabilities

a) Capital commitment

There are no capital commitment outstanding as at reporting date (as at March 31, 2021: Nil).

b) Contingent liabilities

There are no contingent liabilities

34 Additional Notes

(A) The title deeds of immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.

(B) The Company does not have any investment property.

C) The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and Intangible assets.

D) There are no loans or advances in the nature of loans are granted to Promoters, Directors, KMPs and their related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are outstanding as on 31st March, 2024:

(i) repayable on demand; or,

E) The company is not declared willful defaulter by any bank or financial institution or other lender.

F) The company has not undertaken any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

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

H) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the undrstanding (whether recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the company or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

I) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the Funding Party or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

J) No transactions has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961. There are no such previously unrecorded income or related assets.

K) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

L) The Provision of Section 135 of the Companies Act 2013 in relation to Corporate Social Responsibility are not applicable to the Company during the year and hence reporting under this clause is not applicable.

37 The Company has considered the business segment as the primary reporting segment on the basis that the risk and returns of the Company is primarily determined by the nature of products and services. Consequently, the geographical segment has been considered as a secondary segment.

The business segment have been identified on the basis of the nature of products and services, the risks and returns, internal organisation and management structure and the internal performance reporting systems. The Business segment comprises of manufacturing and Selling of pharmaceutical products. Geographical segment is considered based on sales within India and outside India.

38 Previous year figures have been regrouped/rearranged whenever necessary to conform to this current year''s classification.

As per our report of even date

For Doshi Doshi & Co For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration No. 153683W

Sd/-

Chintan Doshi SMIRAL A.PATEL TEJAL S.PATEL

Partner Director Director & CFO

Membership No. : 158931 DIN: 00769486 DIN: 07391559

Malvika Jagani

Company Secretary ACS: A46722

Place : Ahmedabad Place : Ahmedabad Place : Ahmedabad

Date : 27 May 2024 Date : 27 May 2024 Date : 27 May 2024

---

Mar 31, 2023

n) Provisions

A provision is recognised when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

o) Contingent liability

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognise a contingent liability but discloses its existence in the financial statements.

36 The Company has considered the business segment as the primary reporting segment on the basis that the risk and returns of the Company is primarily determined by the nature of products and services. Consequently, the geographical segment has been considered as a secondary segment.

The business segment have been identified on the basis of the nature of products and services, the risks and returns, internal organisation and management structure and the internal performance reporting systems. The Business segment comprises of manufacturing and Selling of pharmaceutical products. Geographical segment is considered based on sales within India and outside India.

37 Previous year figures have been regrouped/rearranged whenever necessary to conform to this current year''s classification.

As per our report of even date

For Doshi Doshi & Co For and on behalf of the Board of Directors

Chartered Accountants JFL Life Sciences Limited

Firm Registration No. 153683W

Sd/- Sd/- Sd/-

Chintan Doshi SMIRAL A.PATEL TEJAL S.PATEL

Partner Director Director

Membership No. : 158931 DIN: 00769486 DIN: 07391559

Place : Ahmedabad Sd/-

Date : May 27, 2023

Malvika Jagani

Company Secretary ACS: A46722 Place : Ahmedabad Date : May 27, 2023