2.10 Provisions

A provision is recognized if, as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. If the effect of the time value of money
is material, provisions are determined by discounting the expected future cash flows at a pre-tax
rate that reflects current market assessments of the time value of money and the risks specific to
the liability. Where discounting is used, the increase in the provision due to the passage of time
is recognized as a finance cost.

2.11 Contingent liabilities & contingent assets

A disclosure for a contingent liability is made when there is a possible obligation or a present
obligation that may, but probably will not, require an outflow of resources. Where there is a
possible obligation or a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.

Contingent assets are not recognized in the financial statements. However, contingent assets
are assessed continually and if it is virtually certain that an inflow of economic benefits will arise,
the asset and related income are recognized in the period in which the change occurs.

2.12 Financial instruments
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 are recognized at fair
value on initial recognition, except for trade receivables which are initially measured at
transaction price. Transaction costs that are directly attributable to the acquisition or issues of
financial assets and financial liabilities that are not at fair value through profit or loss, are added
to the fair value on initial recognition.

Subsequent measurement

• Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if
it is held with a business model whose objective is achieved by 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. Further in cases where the Company had made an irrevocable election based on
its business model, for its investments which are classified as equity instruments, the
subsequent changes in fair value are recognized in other comprehensive income.

• Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest
method. For trade and other payables maturing within one year from the Balance Sheet date,
the carrying amounts approximate fair value due to short maturity of these instruments.

2.13 Critical accounting judgements and key sources of estimation uncertainty:

In the application of the Company's accounting policies, which are described in note 3, the
management of the Company are required to make judgements, estimates and assumptions
about the carrying amounts of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical experience and
other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimate is revised if the revision
affects only that period, or in the period of the revision and future periods if the revision affects
both current and future periods.

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

Provision and contingent liability

On an ongoing basis, Company reviews pending cases, claims by third parties and other
contingencies. For contingent losses that are considered probable, an estimated loss is
recorded as an accrual in financial statements. Loss Contingencies that are considered
possible are not provided for but disclosed as Contingent liabilities in the financial statements.
Contingencies the likelihood of which is remote are not disclosed in the financial statements.
Gain contingencies are not recognized until the contingency has been resolved and amounts
are received or receivable.

Terms/Rights attached to Equity Shares:The Company has only one class of Equity Shares having
par value of Rs 2 per Share wef 06.01.2023 and Rs.10 per share upto 05.01.2023 .Each holder of
Equity Shares is entitled to one vote per share and such amount of dividend per share as declared by
the Company.The Company declares and pays dividend in Indian Rupeees.The Dividend proposed
by the Board of Directors is subject to the approval of Share holders in the ensuing Annual General
Meeting.

In the event of liquidation of Company,the holders of equity Shares will be wntitled to receive
remaining assets of the Company after distribution of all preferential amounts.The distribution will be
in proportion to the number of equity shares held by the shareholders.

23. Earnings per share

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity
holders by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the
weighted average number of Equity shares outstanding during the year plus the weighted
average number of Equity shares that would be issued on conversion of all the dilutive potential
Equity shares into Equity Shares.

24. Estimated amount of contracts remaining to be executed on capital account and provided for is
Rs. Nil.

25. Contingent Liabilities: Nil (Previous Year: Nil).

26. Segmental Reporting: As the company was engaged only in trading of Drugs and Medicines
during the year, business segment reporting is not applicable. Geographic revenue is allocated
based on the location of the customer.

a. During the year ended 31st March 2024, there had been classification of Current liabilities
when compared with previous year, this impacted reducing value of current Liabilities,
resulting in variation in the ratios.

b. During the year ended 31st March 2024, Current Liability has been classified as long term,this
impacted the variation in the ratios.

c. During the year ended 31st March 2024,there was an increase in Turnover and Profitability and
the same has impacted the ratio.

d. During the year ended 31st March 2024, there had been increase of Salesand Profitabiltywhen
compared with previous year, this impacted resulting in variation in the ratios.

30. Other Statutory Information

i. The Company does not have any Benami property, where any proceeding has been initiated or
pending against the Company for holding any Benami property.

ii. The Company does not have any transaction with companies struck off.

iii. The Company does not have any charges or satisfaction which is yet to be registered with ROC
beyond the statutory period.

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

v. The Company has not received any fund from any person(s) or entity(ies), including foreign
entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that
the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vi. The Company has not been declared willful defaulter by any bank or financial institution or
government or any government authority.

vii. The Company has not any such transaction which is not recorded in the books of accounts that
has been surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income
Tax Act, 1961.

See acc°^mpanying n°te^s to toe financial ^state^men^ts. _Fo_r Hindustan Bio Sciences Limited

As per our report of even date.

VASG & Associates

Chartered Accountants Sd/- Sd/-

Firm Reg No. 006070S J.V.R. Mohan Raju J. Uma

Chairman & Managing Director Director

A Viswanatha rao DIN:00060800 DIN: 00912376

Partner

^MNo:029597 Sd/- Sd/-

^{UDIN:24029597BKBKOQ2066} _{Jyotsna Sukavasi Jaison George}

Company Secretary CFO

Place: Hyderabad

Date : 25.05.2024