Notes to Accounts of Vaidya Sane Ayurved Laboratories Ltd.

Mar 31, 2024

h) Provisions & Contingent Liabilities:

A provision is recognized when an enterprise has a present obligation as a result of past event; 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.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest expense.

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 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 recognized because it cannot be measured reliably. A disclosure for a contingent liability is made where there is a possible obligation arising out of past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation arising out of a past event where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

i) Leases:

Where the Company is the lessee

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases.

Operating lease payments are recognized as an expense in the Profit and Loss account on a straight-line basis over the lease term considering the rent equalization provision thereon.

j) Revenue Recognition :

Revenue is recognized to the extent that it is probable that the economic benefit will flow to the company and the revenue can be reliably measured and it is reasonable to expect ultimate collection.

Sale of Goods

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer.

Income from Services

Revenues from professional services are recognized as and when services are rendered. Revenue from time and material engagements is recognized on time proportion basis as and when the services are rendered in accordance with the terms of the contracts with customers.

^ Services of franchisees are recognized on the basis of the agreements and schedules of franchisee payment.

^ Packages sales are recognized on time proportionate basis over the period of treatment.

The Goods and Service tax (GST) collected on behalf of the government and, therefore, these are not economic benefits flowing to the Company. Hence, they are excluded from revenue.

Interest

Revenue is recognized on time proportion basis taking into account the amount outstanding and the rate applicable. Also, Interest on ICD is booked on the basis of terms of the agreements.

Interest on late payments is recognised as per the terms of Franchisee agreements.

Dividend:

Dividend is recognised as an income on receipt basis.

k) 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 Non-current 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.

Current investments are carried in the financial statements at lower of cost and fair value, determined on category of investment basis. Long-term investments presented in the financial statements are carried at cost. However, provision for diminution in value is made to recognize a decline, other than temporary decline, in the value of investments.

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.

l) Retirement and other Employee Benefits:

1) Provident fund

Provident fund is a defined contribution plan covering eligible employees. The Company and the eligible employees make a monthly contribution to the provident fund maintained by the Regional Provident Fund Commissioner equal to the specified percentage of the basic salary of the eligible employees as per the scheme. The Company’s contributions to the provident fund are charged to the statement of profit and loss for the year when the contributions are due. The Company has no obligation, other than the contribution payable to the provident fund.

2) Gratuity

As per the Payment of Gratuity Act, 1972, every eligible employee of the Company is entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service. The same is payable at the time of separation from the Company or retirement, whichever is earlier. The benefits vest after five years of continuous service. The gratuity is recognized at actuarial valuation under Accounting Standard AS 15 (Revised 2005) of the defined benefit obligation as at the balance sheet date on the basis of Projected Unit Credit Method (PUC).

3) Short Term Employee Benefits

All employee benefits payable within twelve months of rendering the service are classified as short-term benefits. Such benefits include salaries, wages, bonus, short term compensated absences, awards, ex-gratia, performance pay etc. in the period in which the employee renders the related service. A liability is recognized for the amount expected to be paid when there is a present obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

m) Income Taxes:

Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the year. Current and deferred taxes are recognised in statement of profit and loss.

1) Current tax

Current tax is the amount of tax payable based on the taxable profit for the year as determined in accordance with the applicable tax rates and the provisions of the Income tax Act, 1961. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Advance taxes and provisions for current income taxes are presented in the balance sheet before off-setting advance tax paid and income tax provision arising during the year in the same tax jurisdiction

2) Deferred Tax

Deferred income tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount.

Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets is reviewed at each balance sheet date. The carrying amount of the deferred tax asset is written-down to the extent that it is no longer reasonably certain or virtually certain, that sufficient future taxable income will be available against which deferred tax asset can be realized.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

n) Earnings Per Share (EPS):

Basic earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the reporting period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares), if any occurred during the reporting period, that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares. The number of equity shares considered for the purpose of calculating diluted earnings per share is the aggregate of the weighted average number of equity shares calculated and the weighted average number of equity shares which would be issued on the conversion of all the dilutive potential equity shares into equity shares.

o) Segment Reporting :

According to AS 17 primary segment is specified as business segment. The primary segment reporting format is determined to be business segments as the company’s risks and rates of return are affected predominantly by differences in the products and services produced. The operating business are organized and managed separately according to the nature of the products & services provided, with each segment representing a strategic business unit that offers different products & serves different markets.

p) Cash and Cash Equivalents:

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

For the purpose of the statement of cash flows, cash and cash equivalents consists of cash and short-term deposits, as defined above, net of outstanding bank overdrafts and cash credit facilities as they are considered an integral part of the Company’s cash management.

Note 37 : Details of Crypto Currency or Virtual Currency

The Company has not dealt into any crypto currency or any virtual currency during the year 2023-24 (March 31, 2023 - '' Nil)..

Note 38 : Relationship with Struck off Companies

The Company has not entered into any transaction with struck off companies during the year 2023-24 (March 31, 2023 - '' Nil).

Note 39 : Details of Benami Property held

No proceedings have been initiated against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) (March 31, 2023 - '' Nil).

Note 40 : Capital Commitments

The capital commitment as at March 31, 2024 is '' 6.84 lakhs (March 31, 2023 - '' 27.41 lakhs)

Note 41 : Unhedged Foreign Currency Exposures

There is no foreign currency exposure outstanding as on March 31, 2024 (March 31, 2023 - '' Nil).\

Note 42 : Corporate Social Responsibility

As per Sec 135 of The Companies Act, 2013 read with General Circular No. 14 /2021 dated August 25, 2021 isued by Ministry of Corporate Affairs, Government of India, the Company is not required to constitute the CSR committee Where the amount required to be spent by a company on CSR does not exceed fifty lakh rupees, the requirement for constitution of the CSR Committee is not mandatory and the functions of the CSR Committee, in such cases, shall be discharged by the Board of Directors of the Company.

The Company’s spent on CSR activity for FY 2023-24 was '' 8.08 lakhs which is less than '' 50 lakhs. Thus, the Company was not required to constitute the CSR committee for FY 2023-24. The Company has contributed towards Prime Minister Care Fund a sum of '' 8.08 lakhs.

Note 43 : Previous Years’ Figures

Previous periods / year’s figures have been reported have been regrouped where necessary to conform to current period’s classification

The accompanying notes form an integral part of the financial statements As per our report on even date

For A A Mohare and Co. For and on behalf of the Board of Directors of

Chartered Accountants (FRN 114152W) Vaidya Sane Ayurved Laboratories Ltd.

Amit Mohare Rohit Sane Vidyut Ghag Shripad Upasani Abhishek Deshpande Darshan Shah

Partner MD Whole time Director Chief Executive Company Secretary CFO

Membership No. 148601 DIN: 00679851 DIN: 09299252 Officer

Place : Thane Place : Thane Place : Thane Place : Thane Place : Thane Place : Thane

Date : May 26, 2024 Date : 26/05/2024 Date : 26/05/2024 Date : 26/05/2024 Date : 26/05/2024 Date : 26/05/2024

---

Mar 31, 2023

h) Provisions & Contingent Liabilities:

A provision is recognized when an enterprise has a present obligation as a result of past event; 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.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end
of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest expense.

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 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
recognized because it cannot be measured reliably. A disclosure for a contingent liability is made where there is a possible obligation arising out of
past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the Company or a present obligation arising out of a past event where it is either not probable that an outflow of resources
will be required to settle or a reliable estimate of the amount cannot be made.

i) Leases:

Where the Company is the lessee

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases.
Operating lease payments are recognized as an expense in the Profit and Loss account on a straight-line basis over the lease term.

j) Revenue Recognition :

Revenue is recognized to the extent that it is probable that the economic benefit will flow to the Company and the revenue can be reliably
measured and it is reasonable to expect ultimate collection.

Sale of Goods

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer.

Income from Services

Revenues from professional services are recognized as and when services are rendered. Revenue from time and material engagements is recognized
on time proportion basis as and when the services are rendered in accordance with the terms of the contracts with customers.

• Services of franchisees are recognized on the basis of the agreements and schedules of franchisee payment.

• Packages sales are recognized on time proportionate basis over the period of treatment.

Interest

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

The Goods and Service tax (GST) collected on behalf of the government and, therefore, these are not economic benefits flowing to the Company.
Hence, they are excluded from revenue.

k) 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 Non-current 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.

Current investments are carried in the financial statements at lower of cost and fair value, determined on category of investment basis. Long-term
investments presented in the financial statements are carried at cost. However, provision for diminution in value is made to recognize a decline,
other than temporary decline, in the value of investments.

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.

l) Retirement and other Employee Benefits:

1) Provident fund

Provident fund is a defined contribution plan covering eligible employees. The Company and the eligible employees make a monthly
contribution to the provident fund maintained by the Regional Provident Fund Commissioner equal to the specified percentage of the
basic salary of the eligible employees as per the scheme. The Company’s contributions to the provident fund are charged to the statement
of profit and loss for the year when the contributions are due. The Company has no obligation, other than the contribution payable to the
provident fund.

2) Gratuity

As per the Payment of Gratuity Act, 1972, every eligible employee of the Company is entitled to a benefit equivalent to fifteen days salary
last drawn for each completed year of service. The same is payable at the time of separation from the Company or retirement, whichever is
earlier. The benefits vest after five years of continuous service. The gratuity is recognized at actuarial valuation under Accounting Standard
AS 15 (Revised 2005) of the defined benefit obligation as at the balance sheet date on the basis of Projected Unit Credit Method (PUC).

3) Short Term Employee Benefits

All employee benefits payable within twelve months of rendering the service are classified as short-term benefits. Such benefits include
salaries, wages, bonus, short term compensated absences, awards, ex-gratia, performance pay etc. in the period in which the employee renders
the related service. A liability is recognized for the amount expected to be paid when there is a present obligation to pay this amount as a
result of past service provided by the employee and the obligation can be estimated reliably.

m) Income Taxes:

Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the year. Current and deferred
taxes are recognised in statement of profit and loss.

1) Current tax

Current tax is the amount of tax payable based on the taxable profit for the year as determined in accordance with the applicable tax rates and
the provisions of the Income tax Act, 1961. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted, at the reporting date.

Advance taxes and provisions for current income taxes are presented in the balance sheet before off-setting advance tax paid and income tax
provision arising during the year in the same tax jurisdiction.

Minimum alternate tax (MAT) paid in a period / year is charged to the statement of profit and loss as current tax. MAT credit available is
recognized as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the period,
i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the Company recognizes MAT credit as an asset

in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax
Act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as “MAT Credit Entitlement.” The Company
reviews the “MAT credit entitlement” asset at each reporting date and writes down the asset to the extent the Company does not have
convincing evidence that it will pay normal tax during the specified period.

2) Deferred Tax

Deferred income tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are recognised for deductible
and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount.

Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets is reviewed at each balance sheet date. The carrying amount of the deferred tax asset is written-
down to the extent that it is no longer reasonably certain or virtually certain, that sufficient future taxable income will be available against
which deferred tax asset can be realized.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the
balance sheet date.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, to the extent it would be
available for set off against future current income tax liability. Accordingly, MAT is recognised as deferred tax asset in the balance sheet when
the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will be realised.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax
liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

n) Earnings Per Share (EPS):

Basic earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number
of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the reporting period is adjusted for
events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares), if any occurred during the
reporting period, that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted
average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares. The number of equity shares
considered for the purpose of calculating diluted earnings per share is the aggregate of the weighted average number of equity shares calculated and
the weighted average number of equity shares which would be issued on the conversion of all the dilutive potential equity shares into equity shares.

o) Segment Reporting :

According to AS 17 primary segment is specified as business segment. The primary segment reporting format is determined to be business segments
as the Company’s risks and rates of return are affected predominantly by differences in the products and services produced. The operating business
are organized and managed separately according to the nature of the products & services provided, with each segment representing a strategic
business unit that offers different products & serves different markets.

p) Cash and Cash Equivalents:

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

For the purpose of the statement of cash flows, cash and cash equivalents consists of cash and short-term deposits, as defined above, net of
outstanding bank overdrafts and cash credit facilities as they are considered an integral part of the Company’s cash management.

Note 27 : Gratuity And Other Post-Employment Benefit Plans

The Company operates two defined plans, viz., gratuity and post employment medical benefits, for its employees. Under the gratuity plan, every employee who
has completed atleast five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The scheme is funded
with an insurance company in the form of qualifying insurance policy.

Under the post employment medical benefit plan, the Company provides medical benefit to those employees who leave the services on the Company on
retirement and have completed atleast 7 years of service with the Company. The plan is not funded by the Company.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts
recognized in the balance sheet for the respective plans.

Note 36 : Details of Crypto Currency or Virtual Currency

The Company has not dealt into any crypto currency or any virtual currency (March 31, 2022 - '' Nil).

Note 37 : Relationship with Struck off Companies

The Company has not entered into any transaction with struck off companies (March 31, 2022 - '' Nil).

Note 38 : Details of Benami Property held

No proceedings have been initiated against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of
1988) (March 31, 2022 - '' Nil).

Note 39 : Capital Commitments

The capital commitment as at March 31, 2023 is '' 27.41 lakhs (March 31, 2022 - '' Nil)

Note 40 : Unhedged Foreign Currency Exposures

There is no foreign currency exposure outstanding as on March 31, 2023 (March 31, 2022 - '' Nil).

Note 41 : Corporate Social Responsibility

As per Sec 135 of The Companies Act, 2013, the Company is required to constitute the CSR committee and contribute towards CSR activity if its net profit
during the immediately preceding financial year is more than five crores. The Company’s net profit after tax for the immediately preceding financial year i.e. for
FY 2021-22 was '' 3.46 Crores ('' 346.90 lakhs) i.e. less than '' 5 crores. Thus, the Company was not required to constitute the CSR committee for FY 2022-23.
However, the Company’s net profit after tax for FY 2022-23 is '' 5.19 crores ('' 519.00 lakhs) hence the Company is required to constitute the CSR committee
and contribute towards CSR activity from financial year 2023-24 onwards. Accordingly, the Company is in the process of constituting the CSR committee
and formulate the CSR policy. The Company shall start contributing towards CSR activity once it is formulated.

Note 42 : Previous Years’ Figures

Previous periods / year’s figures have been reported have been regrouped where necessary to conform to current period’s classification

For A A Mohare and Co. For Vaidya Sane Ayurved Laboratories Ltd

Chartered Accountants (FRN 114152W)

Amit Mohare Rohit Sane Vidyut Ghag Abhishek Deshpande Darshan Shah

Partner MD & CEO Whole time Director Company Secretary CFO

Membership No. 148601 DIN: 00679851 DIN: 09299252

Place : Thane Place : Thane Place : Thane Place : Thane Place : Thane

Date : 27/05/2023 Date : 27/05/2023 Date : 27/05/2023 Date : 27/05/2023 Date : 27/05/2023

UDIN: 23148601BGWJJX8059