Provisions are recognized in the balance sheet when the company has a
present obligation (legal or constructive) as a result of a past event,
which is expected to result in an outflow of resources embodying
economic benefits which can be reliably estimated. Each provision is
based on the best estimate of the expenditure required to settle the
present obligation at the balance sheet. Where the time value of money is
material, provisions are made on a discounted basis.

Disclosure for Contingent liabilities is made when there is a possible
obligation or present obligation arising from 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 that arises from the past events where it
is either not probable that an outflow of resources embodying in
economic benefits will be required to settle or a reliable estimate of
amount cannot be made.

Disclosure for Contingent assets are made when there is possible asset
that arises from past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the entity. However Contingent
assets are neither recognized nor disclosed in the financial statements.

2.21 Prior Period and Extraordinary and Exceptional Items:

(i) All Identifiable items of Income and Expenditure pertaining to prior
period are accounted through ‘’Prior Period Items’’.

(ii) Extraordinary items are income or expenses that arise from events
or transactions that are clearly distinct from the ordinary activities
of the enterprise and, therefore, are not expected to recur frequently
or regularly. The nature and the amount of each extraordinary item
be separately disclosed in the statement of profit and loss in a
manner that its impact on current profit or loss can be perceived.

(iii) Exceptional items are generally non-recurring items of income and
expenses within profit or loss from ordinary activities, which are of
such, nature or incidence.

2.22 Financial Instruments (Ind AS 107 Financial Instruments:
(Disclosures)

I. Financial assets:

A. Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value.
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 adjusted to the fair value on initial recognition.

B. Subsequent Measurement

a) Financial assets measured at amortized cost (AC)

A financial asset is measured at amortized cost 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.

b) Financial assets at fair value through other comprehensive
income (FVTOCI)

A financial asset is measured at FVTOCI 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.

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

A Financial asset which is not classified in any of above categories are
measured at FVTPL e.g. investments in mutual funds. 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.

II. Financial Liabilities

A. Initial recognition

All financial liabilities are recognized at fair value and in case of borrowings, net
of directly attributable cost. Fees of recurring nature are directly recognized in
the Statement of Profit and Loss as finance cost.

B. Subsequent measurement

Financial liabilities are 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 the
short maturity of these instruments

Operating segment is a component of an entity:

a. That engages in business activities from which it may earn revenues and incur
expenses (including revenues and expenses relating to transactions with other
components of the same entity).

b. Whose operating results are regularly reviewed by the entity’s chief operating
decision maker to make decision about resources to be allocated to the
segments and assess its performance, and

c. For which discrete financial information is available.

The Company is engaged in engaged manufacturing and trading of medical
products. As there are no separate reportable segments, Segment Reporting as
per Ind AS -108, “Operating Segments” is not applicable.

2.25 Events After the Reporting Period (Ind AS 10)

Events after the reporting period are those events, favorable and
unfavorable, that occur between the end of the reporting and the date
when the financial statements are approved by the Board of Directors in
case of a company, and, by the corresponding approving authority in case
of any other entity for issue. Two types of events can be identified:

Those that provide evidence of conditions that existed at the end of
reporting period (adjusting events after the reporting period);

Those that are indicative of conditions that arose after the reporting period (
non-adjusting events after the reporting period).

An entity shall adjust the amounts recognized in its financial statements to reflect
adjusting events after the reporting period.

As per the information provided and Books of Accounts no such events are
identified during the reporting period. Hence Ind AS 10 Events After the
Reporting Period is not applicable.

2.26 Construction Contracts (Ind AS 11)

Construction contract is a contract specifically negotiated for the construction
of an asset or a combination of assets that are closely interrelated or
interdependent in terms of their design, technology, and function or their
ultimate purpose or use.

The company is engaged manufacturing and trading of medical products,
hence Ind AS 11 “Construction Contract” is not applicable.

2.27 Income Taxes (Ind AS 12)

The Tax Expense for the period comprises of current and deferred tax.

• Current Tax:

Current Tax Assets and Liabilities are measured at the amount expected to
be recovered from or paid to the Income tax authorities, based on tax rates
and laws that are enacted at the Balance Sheet date.

• Deferred Tax:

Deferred tax liabilities are recognized for all timing differences. Deferred tax
assets are recognized for deductible timing differences only to the extent
that there is reasonable certainty that sufficient future taxable income will
be available against which such deferred tax assets can be realized. In
situations where the Company has unabsorbed depreciation or carry
forward tax losses, all deferred tax assets are recognized only if there is
virtual certainty supported by convincing evidence that they can be realized
against future taxable profits.

At each reporting date, the Company re-assesses unrecognized deferred tax
assets. It recognizes unrecognized deferred tax asset to the extent that it
has become reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting
date. The Company writes-down the carrying amount of deferred tax asset
to the extent that it is no longer reasonably certain or virtually certain, as
the case may be, that sufficient future taxable income will be available
against which deferred tax asset can be realized. Any such write¬
down is reversed to the extent that it becomes reasonably certain or

2.28 Amendment to Ind AS 116: COVID -19 Related Rent

Concessions:

The amendments provide relief to lessees from applying Ind AS 116
guidance on lease modification accounting for rent concessions arising
as a direct consequence of Covid-19 pandemic. As a practical
expedient, a lessee may elect not to access whether a Covid-19 related
rent concession from a lessor is lease modification. A lessee that makes
this election accounts for any change in lease payments resulting from
COVID-19 related rent concession the same way it would account for
the changes under Ind AS 116, if changes were not lease modifications.
This Amendment had no impact on the standalone financial statements
of the Company.

2.29 Amendment to Ind AS 1 and Ind AS 8: Definition of material:

The Amendments provide a new definition of material that states
“information is material if omitting, misstating or obscuring it is reasonably be
expected to influence decisions that the primary uses of general purpose
financial statements make on the basis of those financial statements, which
provide financial information about specific reporting entity”. The
amendments clarify that materiality will depend on the nature of magnitude of
information, either individually or in combination with other information, in
the context of the financial year statements. A misstatement of information is
material if it could reasonably be expected to influence decisions made by the
primary users. These amendments had no impact on standalone financial
statements of the company.

2.30 Amendment to Ind AS 107 and Ind AS 109: Interest Rate
Benchmark Reform:

The amendments to Ind AS 109 Financial Instruments: Recognition
and Measurements provide number of reliefs, which apply to all
hedging relationships that are directly affected interest rate benchmark
reform. A hedging relationship is affected if the reform gives raise to
uncertainty about the timing and/or amount of bench mark -based
cash flow of hedging items or hedging instrument. These amendments
have no impact on the standalone financial statements of the company
as it does not have any interest rate hedge relation.

The amendment to Ind AS 107 prescribe the disclosure which entities
are required to make for hedging relationship to which the reliefs as per
the amendments in Ind AS 109 are apply. This amendment had no
impact on the standalone financial statement of the company.

23. Consolidated and Separate Financial Statement (Ind AS 27):

The company has no subsidiary companies for the current reporting period.
Hence consolidate and separate financial statement are not applicable.

24. Investments in Associates (Ind AS 28):

The company has not made any investments in any of its associates during the
reporting period. This accounting standard has no financial impact on the
financial statements for the current reporting period.

25. Interest in Joint Ventures (Ind AS 31)

The company has no interest in any Joint ventures. This accounting standard
has no financial impact on the financial statements for the current reporting
period.

26. Earnings Per Share (Ind AS 33):

a) Basic Earnings Per Share for (continued operations) there are no
discontinued operations hence, EPS is presented for continued operations
only.

29.Confirmation of Balances:

Confirmation letters have been issued by the company to Trade Receivables,
Trade Payables, Advances to suppliers and others advances requesting that the
confirming party responds to the company only if the confirming party disagrees
with the balances provided in the request and however the company has not
received any letters on disagreements.

The information has been given in respect of such vendors to the extent
they could be identified as micro and small enterprises on the basis of
information available with company.

As per the information provided / submitted by the Company, there are
no dues to Micro, Small and Medium Enterprises covered under
(‘MSMED’ Act, 2006).

37. Financial Risk Management

In course of its business, the company is exposed to certain financial risk
such as market risk (Including currency risk and other price risks),
credit risk and liquidity risk that could have significant influence on the
company’s business and operational/financial performance. The Board of
directors reviews and approves risk management framework and policies
for managing these risks and monitor suitable mitigating actions taken
by the management to minimize potential adverse effects and achieve
greater predictability to earnings.

38. Credit Risk

Credit risk refers to the risk that the counterparty will default on its
contractual obligations resulting in financial loss to the company. The
company has adopted a policy of only dealing with creditworthy
counterparties and obtaining sufficient collateral, where appropriate, a
means of mitigating the risk of financial loss from defaults.

The company makes an allowance for doubtful debts/advances using
expected credit loss model.

39. Liquidity risk

Liquidity risk refers to the risk that the company cannot meet its
financial obligations. The objective of liquidity risk management is to
maintain sufficient liquidity and ensure that funds are available for use
as pre requirements. The Company’s exposure to liquidity risk is minimal
as the promoters of the company is infusing the funds based on the
requirements.

40. Amounts have been rounded off to nearest Rupee.

41. Schedules 2 to 40 form part of Balance Sheet and have been
authenticated.

As per our report of even date For and on behalf of the Board of

For M M REDDY & CO., SANGAM HEALTH CARE PRODUCTS

Chartered Accountants LIMITED

Firm Reg. No. 010371S

M. Madhusudhana Reddy A. Balagopal Padma Ghanakota

Partner Managing Director Director

Membership No. 213077 DIN: 01712903 DIN: 07078176

UDIN: 24213077BKBHGI3924

Place: Hyderabad
Date: 17-07-2024