Accounting Policies of Vilin Bio Med Ltd. Company

Mar 31, 2025

2. Significant Accounting Policies
Basis of Preparation

The Financial Statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in
India (Indian GAAP). These Financial Statements have been prepared to comply in all material respects with the Accounting
Standards notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the
Companies Act, 2013. The Financial Statements have been prepared under the historical cost convention on an accrual basis and
going concern basis. The Accounting Policies have been consistently applied by the Company are consistent with those used in
the previous year.

Use of Estimates

The preparation of Financial Statements in conformity with Generally Accepted Accounting Principles requires the Management
to make estimates, judgements, and assumptions that affect the reported amounts of Revenue, Expenses, Assets and Liabilities
and the disclosure of Contingent Liabilities, at the end of the Reporting Period.

Although these estimates are based on the Management''s best knowledge of current events and actions, uncertainty about
these assumptions and estimates could result in the outcome requiring a material adjustment to the Carrying Amounts of Assets
or Liabilities in future periods.

Functional and Presentation Currency: The Financial Statements are prepared in Indian Rupees ("INR") which is the Company''s
Functional Currency for its Operations. All Financial Information presented in INR has been rounded to the nearest ''Lakhs'' with
two decimal places, unless stated otherwise.

Recognition of Revenue and Expenditure: Revenue is recognized to the extent that it is probable that the Economic Benefits will
flow to the Company and the revenue can be reliably measured. The following specific recognition criteria is ensured before
revenue is recognized.

Income from Services: Revenue from Service Contracts priced on time and material basis are recognized when services are
rendered and related costs are incurred. The Company collects Goods and Services Tax on behalf of the Government and
therefore it is not an Economic Benefit flowing to the Company. Hence, it is excluded from Revenue.

Sale of Goods: Revenue is measured at the Transaction Price of the consideration received or receivable. Revenue from Sale of
Products is recognized when the control on the goods, have been transferred to the Customer. The performance obligation in
case of Sale of product is satisfied at a point in time i.e., when the material is shipped to the customer or on delivery to the
customer, as may be specified in the Contract.

Interest Income: Interest Income is recognized on a time proportion basis taking into account the amount outstanding and the
effective interest rate method. Interest Income is included under the head "Other Income" in Statement of Profit and Loss.

Property, Plant and Equipment (PPE):

a. Recognition and Measurement: Property, Plant and Equipment are stated at Cost comprising of Purchase Price and any initial
directly attributable cost of bringing the Asset to its working condition for its intended use less Accumulated Depreciation and
Impairment Loss, if any.

b. Subsequent Expenditure: Subsequent Expenditure is capitalised only if it is probable that the Future Economic Benefits
associated with the expenditure will flow to the Company.

c. Depreciation: Depreciation on Fixed Assets is provided on Written Down Value method (WDV) as per Useful Life of Asset and
in the manner prescribed in Schedule-II of the Companies Act, 2013.

d. Intangible Assets: Intangible Assets are stated at the Historical Cost of Acquisition, Net of Recoverable Taxes less Accumulated
Amortisation/Depletion. All Costs, including Financing Costs till commencement of Commercial Production, Net Charges on
Foreign Exchange Contracts and adjustments arising from Exchange Rate variations attributable to the Intangible Assets are
capitalized. The Company has elected to continue with the Carrying Value of all its Intangible Assets as recognized in the financial
Statements as at the date of transition, measured as per the previous GAAP and use that as the deemed cost as at the transition

date. Subsequent Expenditure is capitalized only when it increases the Future Economic Benefits embodied in the specific to
which it relates.

e. Impairment of Non-Financial Assets: Assets that have a definite useful life are tested for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable. Management periodically assesses using,
external and internal sources, whether there is an indication that an asset may be impaired. The Recoverable Amount is higher
of the Asset''s Net Selling Price or 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 is reversed if, and only if, the reversal can
be related objectively to an event occurring after the impairment loss was recognized. The Carrying Amount of an Asset is
increased to its Revised Recoverable Amount, provided that this amount does not exceed the Carrying Amount that would have
been determined (Net of any Accumulated Amortisation or Depreciation) had no impairment loss been recognized for the asset
in prior years.

f. Borrowing Cost: Borrowing Costs attributable to the Acquisition/Construction of Qualifying Assets are capitalised and form
part of the Cost of the Qualifying Assets. A Qualifying Asset is an Asset that necessarily takes a substantial period of time to get
ready for its intended use. All other Borrowing Costs are charged to Revenue as an Expense.

g. Income Tax: Provision for Income Tax is made for both Current and Deferred Taxes. Provision for Current Income Tax is made
on the Current Tax Rates based on the Assessable Income. The Company provides Deferred Tax based on the Tax effect of timing
differences resulting from the recognition of items in the Financial Statements and in estimating its Current Tax Provision.
Deferred Tax Assets are recognised where there is certainty that there will be sufficient Future Taxable Income available against
which such Deferred Tax Assets can be realised.

h. Inventories: Inventories are measured at lower of Cost and Net Realisable Value after providing for obsolescence, if any. Cost
of comprises of Cost of Purchases, Cost of Conversion and other cost including Manufacturing Overheads incurred in bringing
them to their respective present location and condition. Cost of Raw Materials, Work-in-Progress, Packing Materials, Trading
and other products are determined on first-in-first-out basis.

i. Research and Development: Revenue Expenditure on Research and Development is charged to Profit and Loss Account as
incurred. Capital Expenditure on Assets acquired for Research and Development is added to Property, Plant and Equipment.

j. Financial Instruments: A Financial Instrument is any Contract that gives rise to a Financial Asset of one Entity and a Financial
Liability or Equity Instrument of another Entity.

k. Financial Assets Classification: The Company shall classify Financial Assets as subsequently measured at Amortised Cost and
Fair Value through Profit and Loss (FVTPL) on the basis of its business model for managing the Financial Assets and the
Contractual Cash flow characteristics of the Financial Asset.

l. Initial Recognition and Measurement: All Financial Assets are recognised initially at Fair Value plus, in the case of Financial
Assets not recorded at Fair Value through Profit or Loss (FVTPL), Transaction Costs that are attributable to the acquisition of the
Financial Asset. Purchases or Sales of Financial Assets that require delivery of Assets within a time frame established by regulation
or convention in the market place (regular way trades) are recognised on the trade date i.e., the date that the Company commits
to purchase or sell the Asset. However, Trade Receivables that do not contain a significant Financing Component are measured
at Transaction Price.

m. Cash and Cash Equivalents: Cash and Cash Equivalents for the purposes of Cash Flow Statement comprise Cash at Bank and
in hand and Short-Term Deposits with Banks with an original maturity of three months or less.

n. Loans and Borrowings: After initial recognition, Interest-bearing Loans and Borrowings are subsequently measured at an
Amortised Cost. Gains and Losses are recognised in Profit and Loss when the liabilities are derecognized. This category generally
applies to Interest-bearing Loans and Borrowings.

o. Foreign Currency Transactions:

Initial Recognition: Foreign Currency Transactions are recorded in the Reporting Currency by applying to the Foreign Currency
amount the Exchange Rate between the Reporting Currency and the Foreign Currency at the date of the transaction.

Conversion: Foreign Currency monetary items are retranslated using the Exchange Rate prevailing at the Reporting Date. Non¬
monetary items, which are measured in terms of historical cost denominated in the Foreign Currency, are reported using the
Exchange Rate at the date of the transaction. Non-Monetary items, which are measured at Fair Value or other similar valuation
denominated in a Foreign Currency are translated using the Exchange Rate at the date when such value was determined.

Treatment of Exchange Differences: Exchange differences arising on settlement/restatement of Foreign Currency Monetary
Assets and Liabilities of the Company are recognised as Income or Expense in the Statement of Profit and Loss.

p. Leases: 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 Statement of Profit and Loss on a
Straight - line basis over the Lease Term.

q. Employee Benefits: All Employee Benefits payable for rendering the service such as Salaries, Wages etc. and the expected cost
of ex-gratia are recognised in the period in which the employee renders the related service. A Liability is recognised for the
amount expected to be paid when there is a present legal or constructive obligation to pay this amount as a result of past service
provided by the employee and the obligation can be estimated reliably.

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Mar 31, 2024

1. General information

Vilin Bio Med Limited (''the Company'') is engaged in the business of manufacturing and selling pharmaceutical products.

The company is a public limited company incorporated under Companies Act, 2013 and domiciled in India bearing CIN No: L24230TG2005PLC046689 and has its registered office at Sy no 115, Hanumanji Colony, Opp Sub Register Office, Old Bowenpally, Secunderabad - 500003, Hyderabad, Telangana - India. Its share are listed on the NSE SME EMERGE.

2. Significant Accounting policies

(a) Basis of preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). These financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on an accrual basis and going concern basis. The accounting policies have been consistently applied by the company are consistent with those used in the previous year.

(a) Use of estimates

The preparation of Financial Statements in conformity with the Generally Accepted Accounting Principles requires the Management to make estimates, judgements, and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period.

Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcome requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

(b) Functional and Presentation Currency

The Financial Statements are prepared in Indian Rupees (“INR”) which is the Company''s Functional Currency for its Operations. All Financial Information presented in INR has been rounded to the nearest ''Lakhs'' with two decimal places, unless stated otherwise.

(c) Recognition of Revenue and Expenditure

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria is ensured before revenue is recognized.

Income from services

Revenue from services contracts priced on time and material basis are recognized when services are rendered and related costs are incurred. The Company collects Goods and Services Tax on behalf of the government and therefore it is not an economic benefit flowing to the Company. Hence, it is excluded from revenue.

(d) Sale of goods

Revenue is measured at the transaction price of the consideration received or receivable. Revenue from Sale of products is recognized when the control on the Goods have been transferred to the Customer. The Performance Obligation in case of sale of product is satisfied at a point in time i.e., when the material is shipped to the customer or on delivery to the customer, as may be specified in the Contract.

(e) Interest income

Interest Income is recognized on a time proportion basis taking into account the amount outstanding and the effective interest rate method. Interest Income is included under the head “Other Income” in Statement of Profit and Loss.

(f) Property, Plant and Equipment (PPE) i. Recognition and measurement

Property, Plant and Equipment are stated at Cost comprising of Purchase Price and any initial directly attributable cost of bringing the Asset to its working condition for its intended use less Accumulated Depreciation and Impairment Loss, if any

(a) Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

(b) Depreciation

Depreciation on fixed assets is provided on Written Down Value method (WDV) as per Useful life of Asset and in the manner prescribed in Schedule II of the Companies Act, 2013.

(g) Intangible assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation/depletion. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.

The Company has elected to continue with the carrying value of all its intangible assets as recognized in the financial statements as at the date of transition, measured as per the previous GAAP and use that as the deemed cost as at the transition date.

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific to which it relates.

(h) Impairment of non-financial assets

Assets that have a definite useful life are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired.

The recoverable amount is higher of the asset''s net selling price or 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 is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

(i) Borrowing cost

Borrowing costs attributable to the acquisition/construction of qualifying assets are capitalized and form part of the cost of the qualifying assets. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue as an expense.

(j) Income Tax

Provision for income tax is made for both current and deferred taxes. Provision for current income tax is made on the current tax rates based on the assessable income. The Company provides deferred tax based on the tax effect of timing differences resulting from the recognition of items in the financial statements and in estimating its current tax provision. Deferred tax assets are recognized where there is certainty that there will be sufficient future taxable income available against which such deferred tax assets can be realized.

(k) Inventories

Inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost including manufacturing overheads incurred in bringing them to their respective present location and condition. Cost of raw materials, work-in- progress, packing materials, trading and other products are determined on first-in-first-out basis.

(l) Research and development

Revenue expenditure on Research and Development is charged to Profit and Loss Account as incurred. Capital expenditure on assets acquired for Research and Development is added to Property, Plant and Equipment (PPE).

(m) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets Classification

The Company shall classify financial assets as subsequently measured at amortised cost and fair value through profit and loss (FVTPL) on the basis of its business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date i.e., the date that the Company commits to purchase or sell the asset. However, trade receivables that do not contain a significant financing component are measured at transaction price.

(n) Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term deposits with banks with an original maturity of three months or less.

(o) Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost. Gains and losses are recognized in profit and loss when the liabilities are derecognized. This category generally applies to interest-bearing loans and borrowings.

(o) Foreign currency transactions Initial recognition

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

Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. Non- monetary items, which are measured at fair value or other similar valuation denominated in a foreign currency are translated using the exchange rate at the date when such value was determined.

Treatment of exchange differences

Exchange differences arising on settlement/restatement of foreign currency monetary assets and liabilities of the Company are recognized as income or expense in the statement of profit and loss.

(q) Leases

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 Statement of Profit and Loss on a Straight - line basis over the lease term.

(r) Employee benefits

All Employee Benefits payable for rendering the service such as Salaries, Wages etc. and the expected cost of ex-gratia are recognized 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 legal

or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(s) Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when the Company has a Present Obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Contingent Liability is disclosed in case of a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation or where no reliable estimate is possible. Contingent Liabilities are not recognized in Financial Statements but are disclosed in the Notes to Accounts. Contingent Asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Entity. Contingent Assets are not recognized in Financial Statements and are disclosed in the Notes when it is virtually certain that economic benefits will inflow to the Company.

(t) Earnings per share (EPS)

Basic EPS is computed using the weighted average number of equity shares outstanding during the period. Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the period except where the results would be anti-dilutive.