Accounting Policies of Remus Pharmaceuticals Ltd. Company

Mar 31, 2025

3. Material Accounting Policies

3.1 Revenue Recognition:

Revenue from contracts with customers is recognised
when control of the goods or services are transferred
to the customer at an amount that reflects the
consideration entitled in exchange for those goods
or services. The Company is generally the principal
as it typically controls the goods or services before
transferring them to the customer.

3.1.1 Sale of Goods

Revenue is generated primarily from selling of
Pharmaceuticals and other related products.
Revenue is recognised at the point in time when the
performance obligation is satisfied and control of the
goods is transferred to the customer in accordance with
the terms of customer contracts. Generally, control is
transferred upon shipment of goods to the customer
or when the goods is made available to the customer,
provided transfer of title to the customer occurs and

the Company has not retained any significant risks of
ownership or future obligations with respect to the
goods shipped.

Revenue is adjusted for variable consideration such as
discounts, rebates, refunds, credits, price concessions,
incentives, or other similar items in a contract when
they are highly probable to be provided.

In revenue arrangements with multiple performance
obligations, the Company accounts for individual
products and services separately if they are distinct -

i.e. if a product or service is separately identifiable from
other items in the arrangement and if a customer can
benefit from it. The consideration is allocated between
separate products and services in the arrangement
based on their stand-alone selling prices.

3.1.2 Sale of Services

Revenue is recognized from rendering of services
when the performance obligation is satisfied and
the services are rendered at point in time or over
the period of time in accordance with the terms of
customer contracts. Revenue is measured based on
the transaction price, which is the consideration, as
specified in the contract with the customer. Revenue
also excludes taxes collected from customers.

A contract liability is the obligation to render services
to the customer for which the Company has received
consideration from the customer. Contract liabilities
are recognised as revenue when the Company
performs under the contract.

3.1.3 Export Incentive

Export incentives are accounted on accrual basis at
the time of export of goods, if the entitlement can be
estimated with reasonable accuracy and conditions
precedent to claim are fulfilled.

3.2 Other Income

a. Interest Income

Interest income is recognized using effective
interest rate method. The effective interest
rate is the rate that exactly discounts estimated
future cash receipts through expected life of
the financial asset to the gross carrying amount
of the financial asset. When calculating the
effective interest rate, the company estimates
the expected cash flows by considering all the
contractual terms of the financial instrument but
does not consider the expected credit losses.

b. Dividend income

Dividend are recognised in the Statement of
Profit and Loss only when the right to receive
payment is established, it is probable that the
economic benefits associated with the dividend
will flow to the Company, and the amount of the
dividend can be measured reliably.

c. Gain or loss on derecognition of Financial
Assets

Gain or Loss on derecognition of financial asset
is determined as the difference between the sale
price (net of selling costs) and carrying value of
financial asset.

d. All other Incomes are recognised and accounted
for on accrual basis

3.3 Property, Plant and Equipment

All items of property, plant and equipment are stated
at historical cost less accumulated deprecation and
accumulated impairment losses, if any. Historical cost
includes expenditure that is directly attributable to the
acquisition of the items.

The cost comprises the purchase price, borrowing
cost if capitalization criteria are met and directly
attributable cost of bringing the asset to its working
condition for its intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price.

Subsequent expenditures relating to property, plant
and equipment is capitalized only when it is probable
that future economic benefits associated with these
will flow to the company and the cost of the item can
be measured reliably.

All other expenses on existing fixed assets, including
day-to-day repair and maintenance expenditure and
cost of replacing parts, are charged to the statement
of profit and loss for the period during which such
expenses are incurred.

For transition to Ind AS, the carrying value of Property
Plant and Equipment under previous GAAP as on 1^st
April, 2023 is regarded as its cost. The carrying value
was original cost less accumulated depreciation and
cumulative impairment.

Property, Plant and Equipment not ready for the
intended use on the date of the Balance Sheet are
disclosed as "Capital work-in-progress".

Gains or losses arising from derecognition of fixed
assets are measured as the difference between the
net disposal proceeds and the carrying amount of
the asset at the time of disposal and are recognized
in the statement of profit and loss when the asset is
derecognized.

Depreciation on Tangible Assets is calculated on
written down value method basis using the ratio
arrived as per the useful life prescribed under Schedule
II to the Companies Act, 2013.

In respect of Property, Plant and Equipment purchased
during the year, depreciation is provided on a pro-rata
basis from the date on which such asset is ready to use.

The residual value, useful live and method of
depreciation of Property, Plant and Equipment are
reviewed at each financial year end and adjusted
prospectively, if appropriate.

Intangible Assets

Intangible assets are recognized when it is probable
that the future economic benefits that are attributable
to the asset will flow to the Company and the cost of the

3.4 Financial Instruments

3.4.1 Initial recognition

The company recognizes financial assets and financial
liabilities when it becomes a party to the contractual
provisions of the instrument.

All financial assets and liabilities except investment
in subsidiaries are recognized at fair value on initial
recognition.

Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial
liabilities, which are not at fair value through profit
or loss, are added to or deducted from the fair value
of financial assets or financial liabilities on initial
recognition.

Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities
at fair value through profit or loss are recognised
immediately in profit or loss.

Regular way purchase and sale of financial assets are
accounted for at trade date.

3.4.2. Subsequent Measurement

a. Non-derivative financial instruments

i. Financial assets measured at amortized
cost

A financial asset except equity instruments
(other than those of subsidiaries) is
subsequently measured at amortized cost

asset can be measured reliably. Intangible assets are
stated at original cost net of tax/duty credits availed,
if any, less accumulated amortization and cumulative
impairment. All directly attributable costs and other
administrative and other general overhead expenses
that are specifically attributable to acquisition of
intangible assets are allocated and capitalized as a part
of the cost of the intangible assets.

Depreciation on Intangible Asset is calculated as per
Written Down value method (WDV) using the ratio
arrived as per the useful life prescribed under Schedule
II to the Companies Act, 2013 as under;

if it is held within a business model whose
objective is to hold the asset in order to
collect contractual cash flows and the
contractual terms of the financial asset give
rise on specified dates to cash flows that are
solely payments of principal and interest on
the principal amount outstanding.

ii. Financial assets measured at fair value
through other comprehensive income
(FVOCI)

A financial asset is subsequently measured
at fair value through other comprehensive
income if it is held within a business model
whose objective is achieved by both
collecting contractual cash flows and selling
financial assets and the contractual terms
of the financial asset give rise on specified
dates to cash flows that are solely payments
of principal and interest on the principal
amount outstanding. The Company has
elected to measure Equity instruments
(other than those of subsidiaries) at fair value
through other comprehensive income.

iii. Financial assets measured at fair value
through profit or loss (FVTPL)

A Financial Asset which is not classified in
any of the above categories are measured
at FVTPL. Financial assets are reclassified

subsequent to their recognition, if the
Company changes its business model for
managing those financial assets. Changes
in business model are made and applied
prospectively from the reclassification date
which is the first day of immediately next
reporting period following the changes
in business model in accordance with
principles laid down under Ind AS 109 -
Financial Instruments.

iv. Financial liabilities

Financial liabilities and equity instruments
issued by the Company are classified
according to the substance of the
contractual arrangements entered into and
the definitions of a financial liability and an
equity instrument.

Interest bearing bank loans and issued debt
are initially measured at fair value and are
subsequently measured at amortized cost
using the effective interest rate method.
Any difference between the proceeds (net
of transaction costs) and the settlement or
redemption of borrowings is recognised
over the term of the borrowings in the
statement of profit and loss.

b. Equity instruments

An equity instrument is a contract that evidences
residual interest in the assets of the company after
deducting all of its liabilities. Incremental costs
directly attributable to the issuance of equity
instruments are recognized as a deduction from
equity instrument net of any tax effects.

3.4.3 Effective Interest rate (EIR) method

The effective interest method is a method of
calculating the amortized cost of a financial instrument
and of allocating interest income or expense over the
relevant period. The effective interest rate is the rate
that exactly discounts future cash receipts or payments
through the expected life of the financial instrument,
or where appropriate, a shorter period.

3.4.4 De-recognition

The company derecognizes a financial asset when the
contractual rights to the cash flows from the financial
asset expire or it transfers the financial asset and the
transfer qualifies for derecognition under Ind AS 109.
A financial liability is derecognized when obligation
specified in the contract is discharged or cancelled
or expires.

3.4.5 Off-setting

Financial assets and liabilities are offset and the net
amount is presented in the balance sheet when the

company currently has a legally enforceable right to
offset the recognized amounts and intends either to
settle on a net basis or to realize the asset and settle
the liability simultaneously.

3.5 Fair Value Measurement

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date.

The fair value measurement assumes that the
transaction to sell the asset or transfer the liability
takes place either:

- n the principal market for the asset or liability, or

- In the absence of a principal market, in the most
advantageous market for the asset or liability.

A fair value measurement of a non-financial asset takes
into account a market participant''s ability to generate
economic benefit by using the asset in its highest and
best use or by selling it to another market participant
that would use the asset in its highest and best use.

The company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data is available to measure fair value,
maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorized
within the fair value hierarchy. The fair value hierarchy
is based on inputs to valuation techniques that are
used to measure fair value that are either observable
or unobservable and consists of the following
three levels:

Level 1 - inputs are quoted prices (unadjusted) in
active markets for identical assets or liabilities

Level 2 - inputs are other than quoted prices included
within level 1 that are observable for the asset or
liability either directly (i.e. as prices) or indirectly (i.e.
derived prices)

Level 3 - inputs are not based on observable market
data (unobservable inputs). Fair values are determined
in whole or in part using a valuation model based
on assumption that are neither supported by prices
from observable current market transactions in the
same instrument nor are they based on available
market data.

3.6 Lease

The Company evaluates if an arrangement qualifies
to be a lease as per the requirements of Ind AS 116.
Identification of a lease requires significant judgment.
The Company uses significant judgement in assessing

the lease term (including anticipated renewals) and
the applicable discount rate.

The company applies single recognition and
measurement approach for all leases, except for short
term leases and leases of low- value assets. At the
date of commencement of the lease, the Company
recognizes a right-of-use asset ("ROU") and a
corresponding lease liability for all lease arrangements
in which it is a lessee, except for leases with a term of
twelve months or less (short-term leases) and leases
of low value assets.

II. Lease Liabilities:

At the commencement date of the lease, the
Company recognizes lease liabilities measured at
the present value of lease payments to be made
over the lease term. The lease payments include
fixed payments (including in substance fixed
payments) less any lease incentives receivable,
variable lease payments that depend on an index
or a rate, and amounts expected to be paid under
residual value guarantees. In calculating the
present value, the lease payments are discounted
using the interest rate implicit in the lease or, if
not readily determinable, using the Company''s
incremental borrowing rates.

III. Short Term Leases and Leases of Low-Value
Assets

The Company determines the lease term as the
non-cancellable period of a lease, together with
both periods covered by an option to extend
the lease if the Company is reasonably certain
to exercise that option; and periods covered by
an option to terminate the lease if the Company
is reasonably certain not to exercise that option.
In assessing whether the Company is reasonably
certain to exercise an option to extend a lease,
or not to exercise an option to terminate a lease,
it considers all relevant facts and circumstances
that create an economic incentive for the
Company to exercise the option to extend the
lease, or not to exercise the option to terminate
the lease. The Company revises the lease term if
there is a change in the non-cancellable period
of a lease. For these short-term and leases of low
value assets, the Company recognizes the lease
losses, and adjusted for any remeasurement
of lease liabilities. The cost of right-of-use
assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease
payments made at or before the commencement
date less any lease incentives received. In case of
rent deposits carried at rate less than market rate,
Initial direct costs of right of use assets includes
the difference between present value of the
Right of Use Assets and Nominal Amount of the
deposit. Right-of-use assets are depreciated on
a straight-line basis over the shorter of the lease
term and the estimated useful lives of the assets:
payments as an operating expense on a straight¬
line basis over the term of the lease.

3.7 Income Tax

The income tax expense or credit for the period is the
tax payable on the current period''s taxable income
based on the applicable income tax rate, adjusted
by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused
tax losses.

3.7.1 Current Tax

The current income tax charge is calculated on the basis
of the tax laws enacted or substantively enacted at the
end of the reporting period. Management periodically
evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject
to interpretation. It establishes provisions, wherever
appropriate, on the basis of amounts expected to be
paid to the tax authorities.

Current tax is recognised in the Statement of Profit
and Loss, except to the extent that it relates to items
recognized in Other Comprehensive Income or
directly in equity. In this case, the tax is also recognised
in Other Comprehensive Income or directly in equity,
respectively.

Current tax for current and prior periods is recognized
at the amount expected to be paid to or recovered
from the tax authorities, using the tax rates and tax
laws that have been enacted or substantively enacted
by the balance sheet date.

Current tax assets and current tax liabilities are offset,
where company has a legally enforceable right to
set off the recognized amounts and where it intends

either to settle on a net basis, or to realize the asset and
settle the liability simultaneously.

3.7.2 Deferred Tax

Deferred tax is recognized in profit or loss, except
when it relates to items that are recognized in other
comprehensive income or directly in equity, in
which case, the deferred tax is also recognized in
other comprehensive income or directly in equity,
respectively.

Deferred tax liabilities are recognized for all taxable
temporary differences, except to the extent that the
deferred tax liability arises from initial recognition of
goodwill; or initial recognition of an asset or liability in
a transaction which is not a business combination and
at the time of transaction, affects neither accounting
profit nor taxable profit or loss.

Deferred tax assets are recognized for all deductible
temporary differences, carry forward of unused tax
losses and carry forward of unused tax credits to the
extent that it is probable that taxable profit will be
available against which those temporary differences,
losses and tax credit can be utilized, except when
deferred tax asset on deductible temporary differences
arise from the initial recognition of an asset or liability
in a transaction that is not a business combination
and at the time of the transaction, affects neither
accounting profit nor taxable profit or loss.

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

Deferred tax assets and deferred tax liabilities are
offset, where company has a legally enforceable right
to set off the recognized amounts and where it intends
either to settle on a net basis, or to realize the asset and
settle the liability simultaneously.

Deferred tax assets are reviewed at each reporting
date and are reduced to the extent that it is no longer
probable that the related tax benefit will be realized.

3.8 Impairment

3.8.1 Financial assets

The Company recognizes loss allowances for
expected credit losses on financial assets measured at
amortized cost.

At each reporting date, the Company assesses whether
financial assets carried at amortized cost is credit
impaired. A financial asset is ''credit -impaired'' when
one or more events that have a detrimental impact on
the estimated future cash flows of the financial asset
have occurred.

Loss allowances for trade receivables are always
measured at an amount equal to lifetime expected
credit losses. The Company follows ''simplified
approach'' for recognition of impairment loss allowance
on trade receivables. Under the simplified approach,
the Company is not required to track changes in credit
risk. Rather, it recognizes impairment loss allowance
based on lifetime expected credit losses together with
appropriate management estimates for credit loss at
each reporting date, right from its initial recognition.

The Company uses a provision matrix to determine
impairment loss allowance on the group of trade
receivables. The provision matrix is based on its
historically observed default rates over the expected
life of the trade receivable and is adjusted for forward
looking estimates. At every reporting date, the
historical observed default rates are updated and
changes in the forward-looking estimates are analyzed.

3.8.2 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 the company estimates the
asset''s recoverable amount.

An asset''s recoverable amount is the higher of an assets
net selling price and its value in use. The recoverable
amount is determined for an individual asset, unless
the asset does not generate cash inflows that are
largely independent of those from other assets or
groups of assets.

Where the carrying amount of an asset exceeds its
recoverable amount, the asset is considered impaired
and is written down to its recoverable amount. The
impairment loss is recognized in the statement of
profit and loss.

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 net selling price, recent market
transactions are taken into account, if available. If no
such transactions can be identified, an appropriate
valuation model is used.

3.9 Borrowing Costs

Borrowing cost includes interest and other costs
that company has incurred in connection with the
borrowing of funds.

Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily
takes a substantial period of time to get ready for its
intended use or sale are capitalized as part of the cost
of the respective asset.

All other borrowing costs are charged to the Statement
of Profit and Loss for the period for which they
are incurred.

Investment income earned on temporary investment
of specific borrowing pending their expenditure on
qualifying assets is deducted from the borrowing costs
eligible for capitalization.

3.10 Employee Benefits

3.10.1 Short Term employee benefits

Short term employee benefits for salary and wages
including accumulated leave that are expected to
be settled wholly within 12 months after the end of
the reporting period in which employees render the
related service are recognized as an expense in the
statement of profit and loss.

3.10.2 Post- employment benefits
Gratuity

The Company provides for gratuity, a defined benefit
plan ("the Gratuity Plan") covering the eligible
employees of the Company. The Gratuity Plan
provides a lump-sum payment to vested employees
at retirement, death, incapacitation or termination of
employment, of an amount based on the respective
employee''s salary and the tenure of the employment
with the Company.

Liability with regard to the Gratuity Plan are
determined by actuarial valuation,

performed by an independent actuary, at each balance
sheet date using the projected unit credit method.

The Company recognises the net obligation of a
defined benefit plan as a liability in its balance sheet.
Gains or losses through re-measurement of the
net defined benefit liability are recognised in other
comprehensive income and are not reclassified to
profit and loss in the subsequent periods. Actuarial
gains and losses arise due to difference in the actual
experience and the assumed parameters and also due
to changes in the assumptions used for valuation. The
Company recognizes these remeasurements in the
Other Comprehensive Income (OCI).

Provident Fund

Eligible employees of the Company receive benefits
from provident fund, which is a defined contribution
plan. Both the eligible employees and the Company
make monthly contributions to the Government
administered provident fund scheme equal to a
specified percentage of the eligible employee''s
salary. Amounts collected under the provident
fund plan are deposited with in a government
administered provident fund. The Company have
no further obligation to the plan beyond its monthly
contributions.

3.10.3 Compensated Absences

The Company has a policy on compensated absences
which are both accumulating and non-accumulating
in nature. The expected cost of accumulating
compensated absences is determined by actuarial
valuation performed by an independent actuary
at each balance sheet date using the projected unit
credit method on the additional amount expected to
be paid/availed as a result of the unused entitlement
that has accumulated at the balance sheet date.
Expense on non-accumulating compensated absences
is recognised is the period in which the absences occur.

---

Mar 31, 2024

A. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES & PRACTICES Background of the Company

1. The Company is Public Limited Company incorporated under the provision of the Companies Act, 2013 domiciled in India bearing Corporate Identification Number as L24232GJ2015PLC084536. Its Registered Office is situated at 1101 to 1103, South Tower, One 42, B/H Ashok Vatika, Bopal Ambli Road, Ahmedabad - 380054. The Company is engaged in the business of Marketing and distribution of API and Finished Formulations of Pharmaceutical drugs and Provision for Technical consultancy services in various countries including India.

The Equity Shares of the Company are listed on the SME (Small and Medium Enterprise) Platform of National Stock Exchange ("NSE") on 29th May, 2023. These Financial Statements has been approved by Board of Directors on 16th May, 2024 in their board meeting.

I. BASIS OF PREPARATION

These financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards prescribed under Section 133 of the Companies Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and other accounting principles generally accepted in India, to the extent applicable.

II. REVENUE RECOGNITION

Sales are stated inclusive of rebate and trade discount and excluding Goods & Service tax. With regard to sale of products, income is reported when practically all risks and rights connected with the ownership have been transferred to the buyers. This usually occurs upon dispatch, after the price has been determined.

III. PROPERTY, PLANT & EQUIPMENT

i. Property Plant & Equipment:

Property, plant & Equipment acquired by the Company are reported at acquisition value, with deductions for accumulated depreciation and impairment losses, if any. The acquisition value includes the purchase price (excluding refundable taxes), and expenses directly attributable to assets to bring it to the factory and in the working condition for its intended use.

ii. Intangible Assets:

Property, plant & Equipment acquired by the Company are reported at acquisition value, with deductions for accumulated depreciation and impairment losses, if any. The acquisition value includes the purchase price (excluding refundable taxes), and expenses directly attributable to assets to bring it to the factory and in the working condition for its intended use.

IV. DEPRECIATION

a) Depreciation on property plant and equipment''s has been provided on Written down Value Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013

b) Depreciation on additions to Assets during the year is being provided on pro-rata basis with reference to month of acquisition/installation as required by Schedule II of the Companies Act, 2013.

V. RETIREMENT BENEFITS

i. Short Term

Short Term employee benefits are recognized as an expense at the undiscounted amount expected to be paid over the period of services rendered by the employees to the company.

ii. Long Term

The Company has both defined contribution and defined benefit plans. These plans are financed by the Company in the case of defined contribution plans.

iii. Defined Contribution Plans

These are plans in which the Company pays pre-defined amounts to separate funds and does not have any legal or informal obligation to pay additional sums. These comprise of contributions to Employees Provident Fund. The Company''s payments to the defined contribution plans are reported as expenses during the period in which the employees perform the services that the payment covers.

iv. Defined Benefit Plans

Expenses for defined benefit gratuity payment plans are calculated as at the balance sheet date by independent actuaries in the manner that distributes expenses over the employees working life. These commitments are valued at the present value of the expected future payments, with consideration for calculated future salary increases, using a discounted rate corresponding to the interest rate estimated by the actuary having regard to the interest rate on Government Bonds with a remaining term i.e. almost equivalent to the average balance working period of employees.

VI. VALUATION OF INVENTORIES

i. Trading Goods are valued at lower of cost or net realizable value

VII. TAXATION

Income Tax expenses comprise of current tax and deferred tax charge or credit. Provisions for current tax are made on the basis of the assessable income at the tax rate applicable to the relevant assessment year. The deferred tax asset & deferred tax liability is calculated by applying tax rate & tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward loss & unabsorbed depreciation under tax laws, are realized, only if there is a virtual certainty of its realized on, supported by convincing evidence. Deferred tax assets on account of other timing differences are realized only to the extent there is a reasonable certainty of its realization. At each Balance Sheet Date, the carrying amount of deferred tax assets are, reviewed to reassume realized on.

VIII. IMPAIRMENT

The Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset''s net selling price and value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset other than goodwill is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss recognized. The carrying amount of an asset is increased to its revised recoverable amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment losses been recognized for the asset in prior years.

---

Mar 31, 2023

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES & PRACTICES

Background of the Company

The Company is Public Limited Company incorporated under the provision of the Companies Act, 2013 domiciled in India bearing Corporate Identification Number as U24232GJ2015PLC084536. Its Registered Office is situated at 1101 to 1103, South Tower, One 42, B/H Ashok Vatika, Bopal Ambli Road, Ahmedabad - 380054. The Company changed its name from Remus Pharmaceuticals Private Limited to Remus Pharmaceuticals Limited w.e.f. 6^th January, 2023. The Company is engaged in the business of Marketing and distribution of API and Finished Formulations of Pharmaceutical drugs, trading of API (Active Pharmaceutical Ingredient) and Provision for Technical consultancy services in various countries including India.

The Equity Shares of the Company are listed on the SME (Small and Medium Enterprise) Platform of National Stock Exchange (“NSE”) on 29th May, 2023. These Financial Statements has been approved by Board of Directors on 29^th May, 2023 in their board meeting.

I. BASIS OF PREPARATION

These financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards prescribed under Section 133 of the Companies Act, 2013 (‘Act’) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and other accounting principles generally accepted in India, to the extent applicable.

II. REVENUE RECOGNITION

Sales are stated inclusive of rebate and trade discount and excluding Goods & Service tax. With regard to sale of products, income is reported when practically all risks and rights connected with the ownership have been transferred to the buyers. This usually occurs upon dispatch, after the price has been determined.

III. PROPERTY. PLANT & EQUIPMENT

i. Property Plant & Equipment:

Property, plant & Equipment acquired by the Company are reported at acquisition value, with deductions for accumulated depreciation and impairment losses, if any. The acquisition value includes the purchase price (excluding refundable taxes), and expenses directly attributable to assets to bring it to the factory and in the working condition for its intended use.

ii. Intangible Assets:

Intangible assets are recognized when it meets definition of intangible assets as given in Accounting standard 26 - “Intangible assets”.

IV. DEPRECIATION

(a) Depreciation on property plant and equipment’s has been provided on Written down Value Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013

(b) Depreciation on additions to Assets during the year is being provided on pro-rata basis with reference to month of acquisition/installation as required by Schedule II of the Companies Act, 2013.

V. RETIREMENT BENEFITS

i. Short Term

Short Term employee benefits are recognized as an expense at the undiscounted amount expected to be paid over the period of services rendered by the employees to the company.

ii. Long Term

The Company has both defined contribution and defined benefit plans. These plans are financed by the Company in the case of defined contribution plans.

iii. Defined Contribution Plans

These are plans in which the Company pays pre-defined amounts to separate funds and does not have any legal or informal obligation to pay additional sums. These comprise of contributions to Employees Provident Fund. The Company’s payments to the defined contribution plans are reported as expenses during the period in which the employees perform the services that the payment covers.

iv. Defined Benefit Plans

Expenses for defined benefit gratuity payment plans are calculated as at the balance sheet date by independent actuaries in the manner that distributes expenses over the employees working life. These commitments are valued at the present value of the expected future payments, with consideration for calculated future salary increases, using a discounted rate corresponding to the interest rate estimated by the actuary having regard to the interest rate on Government Bonds with a remaining term i.e. almost equivalent to the average balance working period of employees.

VI. VALUATION OF INVENTORIES

ii) T rading Goods are valued at lower of cost or net realizable value

VII. TAXATION

Income Tax expenses comprise of current tax and deferred tax charge or credit. Provisions for current tax are made on the basis of the assessable income at the tax rate applicable to the relevant assessment year. The deferred tax asset & deferred tax liability is calculated by applying tax rate & tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward loss & unabsorbed depreciation under tax laws, are realized, only if there is a virtual certainty of its realized on, supported by convincing evidence. Deferred tax assets on account of other timing differences are realized only to the extent there is a reasonable certainty of its realization. At each Balance Sheet

Date, the carrying amount of deferred tax assets are, reviewed to reassume realized on.

VIII. IMPAIRMENT

The Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset’s net selling price and value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset other than goodwill is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss recognized. The carrying amount of an asset is increased to its revised recoverable amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment losses been recognized for the asset in prior years.

IX. CONTINGENT LIABILITIES/ CONTINGENT ASSETS

(a) Contingent liabilities are disclosed by way of a note in the Balance Sheet.

(b) Contingent Assets have neither been recognized in the accounts nor disclosed.

X. FOREIGN CURRENCY TRANSACTIONS

Transactions in the foreign currency which are covered by forward contracts are accounted for at the contracted rate; the difference between the forward rate and the exchange rate at the date of transaction is recognized in the statement of profit & loss over the life of the contract. Foreign currency denominated monetary assets and liabilities are translated into the relevant functional currency at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are included in the Statement of Profit and Loss. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate

prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction. Revenue, expense and cash-flow items denominated in foreign currencies are translated into the relevant functional currencies using the exchange rate in effect on the date of the transaction. Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled.

XI. INVESTMENTS

Investments are either classified as current or non-current based on management’s intention. Current investments are carried at lower of cost and fair value of each investment individually. Long-term investments are carried at cost less provisions recorded to recognize any decline, other than temporary, in carrying value of each investment.

XII. EARNING PER SHARE :

Basic earnings per share is calculated by dividing the net profit after tax for the year attributable to Equity Shareholders of the Company by the weighted average number of Equity Shares in issue during the year. Diluted earnings per Share is calculated by dividing net profit attributable to equity Shareholders (after adjustment for diluted earnings) by average number of weighted equity shares outstanding during the year.

XIII. CURRENT AND NON-CURRENT CLASSIFICATION

All the 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 Schedule III to the Companies Act, 2013. Based on the nature of activities and time between the activities performed and their subsequent realization in cash or cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.

XIV. BORROWING COSTS:

i) Borrowing costs are interest and other costs incurred in connection with the borrowing of funds.

ii) General and specific borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets during the period of time that is required to complete and prepare the asset for its intended use. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use.

XV. CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby profit before tax 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.

Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on hand and demand deposits with banks.